INTERNATIONAL
Textile Raw Material Price 2017-01-04
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1204.24 |
USD/Ton |
0% |
1/4/2017 |
|
VSF |
2379.72 |
USD/Ton |
0% |
1/4/2017 |
|
ASF |
1912.41 |
USD/Ton |
4% |
1/4/2017 |
|
Polyester POY |
1250.97 |
USD/Ton |
-1% |
1/4/2017 |
|
Nylon FDY |
3177.76 |
USD/Ton |
1% |
1/4/2017 |
|
40D Spandex |
4457.49 |
USD/Ton |
2% |
1/4/2017 |
|
Polyester DTY |
3393.44 |
USD/Ton |
2% |
1/4/2017 |
|
Nylon POY |
5455.39 |
USD/Ton |
0% |
1/4/2017 |
|
Acrylic Top 3D |
1495.42 |
USD/Ton |
0% |
1/4/2017 |
|
Polyester FDY |
2976.45 |
USD/Ton |
0% |
1/4/2017 |
|
Nylon DTY |
2084.96 |
USD/Ton |
4% |
1/4/2017 |
|
Viscose Long Filament |
1624.83 |
USD/Ton |
0% |
1/4/2017 |
|
30S Spun Rayon Yarn |
3033.97 |
USD/Ton |
0% |
1/4/2017 |
|
32S Polyester Yarn |
1826.13 |
USD/Ton |
0% |
1/4/2017 |
|
45S T/C Yarn |
2645.74 |
USD/Ton |
0% |
1/4/2017 |
|
40S Rayon Yarn |
1969.92 |
USD/Ton |
0% |
1/4/2017 |
|
T/R Yarn 65/35 32S |
2214.37 |
USD/Ton |
0% |
1/4/2017 |
|
45S Polyester Yarn |
3163.38 |
USD/Ton |
0% |
1/4/2017 |
|
T/C Yarn 65/35 32S |
2271.88 |
USD/Ton |
0% |
1/4/2017 |
|
10S Denim Fabric |
1.32 |
USD/Meter |
0% |
1/4/2017 |
|
32S Twill Fabric |
0.81 |
USD/Meter |
0% |
1/4/2017 |
|
40S Combed Poplin |
1.15 |
USD/Meter |
0% |
1/4/2017 |
|
30S Rayon Fabric |
0.66 |
USD/Meter |
0% |
1/4/2017 |
|
45S T/C Fabric |
0.65 |
USD/Meter |
0% |
1/4/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14379 USD dtd. 4/1/2017)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
India is the second largest participant at the world’s biggest home textile and furnishing fair Heimtextil in Frankfurt from January 10 -- January 13, 2017. Over 380 Indian companies are set to come together to showcase the country’s textile expertise. Also the first trade fair of the year for its sector, Heimtextil 2017 will be a trend barometer for the whole business year, spotlighting new trends and innovations in interior textiles, home furnishings, household textiles and a range of allied services.
Among the exhibiting companies at Frankfurt are India‘s leading players like Alps Industries, D‘Decor, Indo Count, K.G. Denim, Trident and Welspun among others. Leading government bodies including the Cotton Textiles Export Promotion Council, Handloom Export Promotion Council, Powerloom Development Export Promotion Council and Export Promotion Council for Handicrafts will be participating collectively. Second only to China, India’s participation is set to open doors for sector players for textile trade worldwide. In the domestic arena, Indian home textile industry is expected to expand at a CAGR of 8% per cent and reach $ 5.29 billion by 2018. Heimtextil India will take place from June 20-22, 2017 at Pragati Maidan in New Delhi.
SOURCE: The India Infoline
With an aim to revive old civilisational and creative links, Iranian craftspersons and artistes are showcasing a colourful melange of handloom, pottery and textile at an exhibition at Dilli Haat here. The 31st Annual Dastkari Haat Craft Bazaar will also see artisans from Iran and India participating in crafts workshops where creative processes and live demonstrations will provide visitors a chance to interact, learn, appreciate and explore Iranian handicrafts and textiles.
The fortnight-long crafts bazaar which began this new year will also exhibit traditional Iranian crafts while focusing on the rich traditions of India, along with 200 popular works of art, crafts and textiles. Iranian pottery pieces, metalworks in a variety of ornaments, decorative objects along with exotic carpets serve as major highlights of the festival. The bazaar will also have cultural performances including by Baul singers and Chaau dance from Bengal. "Considering that we are celebrating 60 years of India-Iran cultural ties that were renewed during Prime Minister Narendra Modi's visit to Iran last year, I am sure exhibition and workshops of Iranian crafts will craft a new chapter in increasing cooperation between India and Iran in Textiles sector," Textile Minister Smriti Irani said. "I generally do not see any difference between Indians and Iranians. I think Iran was the first country which initiated cultural exchange with India after Independence. This rich and ancient heritage has varied manifestations each of which displays the past pride and civilisation of India and Iran in its own way," Iran Ambassador to India Gholamreza Ansari said.
Jaya Jaitly, President of Dastkari Haat Samiti, said the event will give Indian craftsmen an understanding of Iranian art. With the help of Iranian calligrapher Ali Kheiri, Indian artiste Jai Prakash Lakhiwal and calligrapher Rajeev Kumar, the Dastkari Haat Samiti will also come up with a book which will feature stories told by traditional storytellers and Modi's visit to Iran. "The book will look like an old manuscript but will have contemporary stories which will be published by the end of the festival," Jaitly told PTI. "This platform aims to provide inputs to the crafts sector in India while enhancing diplomatic ties at the ground level," she said.
SOURCE: The Business Standard
Telangana minister for IT and industries KT Rama Rao is promoting handloom clothes by urging citizens to wear them. This will improve the business of weavers in the state. The minister also appealed government officials, party leaders and students of all state-run educational institutions to wear handloom clothes at least once in a week. Rao, who had recently participated in the best journalist award function organised by the Telangana State Press Academy, has also requested journalists to inspire the citizens by wearing handloom clothes.
Pochampally, Gadwal, Narayanpet and Siricilla in the state of Telangana were once well-known for handloom products of finest quality. In a bid to revive the handloom sector of these regions, Rao has requested the public to increase the use of handloom clothes and encourage the weavers, according to a leading daily. In order to flourish the handloom sector of the state, handloom products will also be sold via various e-commerce platforms including Amazon, Flipkart and other leading online stores apart from the website of Telangana State Handloom Weavers Cooperative Society (TSCO), said Rao. The state government will directly purchase handloom fabric from the weavers and will also provide better marketing facilities for their handloom products. TSCO provides employment to nearly 13,000 handloom weavers of the state. Supporting the weavers of the state, Rao also gifted garments of TSCO to Telangana chief minister K Chandrasekhar Rao, legislative assembly speaker Madhusudhana Chary, legislative council chairman Swamy Goud and other elected representatives.
Source: Fibre2fashion
Tamil Nadu Government today announced free dhoti and saree scheme costing Rs 486.36 crore to the exchequer in view of the coming harvest festival of 'Pongal'. As part of kick-starting the scheme, Chief Minister O Panneerselvam handed over the first set of free dhotis and sarees to seven families at the Secretariat, a government release said. The scheme, which was formally introduced by late AIADMK Founder M G Ramachandran in 1983, benefitted the downtrodden besides giving jobs to those engaged in textile and handloom industries. In view of Pongal, the government said it had allocated Rs 486.36 crore in which 3.24 crore sarees and dhotis would be given to the downtrodden under the scheme. Textile Minister O S Manian, Revenue Minister R B Udhaya Kumar and senior government officials were present.
SOURCE: The Business Standard
Apparel checked in with leading experts in the industry to uncover their predictions for 2017 and identify trends that will shape the landscape.
The growing uncertainty of upcoming trade policies:
Dan Stolarski, 703 Advisors
With the upcoming change in administration, there is a great deal of uncertainty as to what policies will be put in place in 2017 and beyond. Will there be greater tariffs on imports? What will happen to TPP? Will policies be enacted to promote foreign currency appreciation? Sourcing executives place a great deal of focus on reducing and mitigating risk, but it's difficult to know what to do in the face of such uncertainty. As such, we believe that there will be a paralytic effect on sourcing strategies. Retailers and brands will wait and see what transpires – for example, they will likely hold off on making desired changes to country and vendor mixes to be more diversified; they will wait on setting up needed infrastructure such as sourcing offices and QA field offices. Ultimately, this will lead to a period of stagnation in investment and growth in sourcing organizations until we see what the new playing field is like. Conversely, retailers may decide to focus on investments in building out their international supply chains to support growth in those markets during this period of uncertainty in the United States.
Paula Rosenblum, RSR
The big thing to watch is the potential of a trade war with China. If that happens, the working class and poor will get hit the most. I think that's the HUGE unknown. I am shocked that the Walton family hasn't weighed in yet. Don't forget, China makes some of the most innovative fabrics (and leather) in the world. Not like I would hate if we did less business with them, but it represents a real problem for the industry.
Pushing into personalization:
Phil Seward, ICLP
Impersonal rewards programs will become increasingly obsolete. Utilizing big data to better understand customers' needs and desires will continue to be extremely important for retailers that need to build increased loyalty within their customer base, as ICLP research demonstrates that 74 percent of United States consumers would buy more if they were better rewarded with more relevant and timely offers. This statistic emphasizes the power of using personalized rewards that surprise and delight customers to make them more devoted to the brands they engage with. Retailers will improve this by analyzing the vast volume of additional information that can be yielded from mobile and social networks, augmenting transactional data with individual interests, location tracking, entertainment preferences and social influence to drive even more personalized engagement.
Emily Bezzant, EDITED
Retailers will embrace artificial intelligence for greater personalization. The savviest retailers are taking advantage of advancements in machine learning, deep analytics and AI for a more targeted and personalized shopping experience. Customers now have longer digital footprints (shopping histories, social media profiles and interests) giving retailers easy access to offer a tailored selection of products. Brands such as The North Face and 1800-FLOWERS.COM are already using AI to provide personalized recommendations. On a product level, retailers are also offering monogrammed accessories or handbags to meet the consumer's individual style preferences.
Shaping the supply chain:
Dan Stolarski, 703 Advisors
Every brand and retailer out there says that they have embraced omnichannel operations, but very few understand what that entails. We certainly expect omnichannel optimization to continue to be one of the top strategic priorities for retailers. Particularly, there are two areas where many retailers will need to focus. First, they need to take a holistic assessment of the organizational structure. Too many retailers still operate in functional silos. Many retailers are still organized internally by channel (e.g. e-commerce, wholesale, stores) - where marketing, planning, buying and merchandising decisions still happen in those channel silos.
The second area of focus should be on optimizing omnichannel operations and systems. Operationally, many companies still struggle with their supply chain, fulfillment and inventory management models. Companies that do a good job of managing their inventories deploy an enterprise-wide model of planning and managing their supply. More specifically, there is a widely adopted concept among consumer packaged goods manufacturers commonly referred to as Sales & Operations Planning (S&OP) – a way to continuously plan demand, supply, and appropriately balance the two competing activities. Apparel brands and retailers need to adopt a similar mindset. We like to refer to this concept as Merchandise, Inventory and Operations Planning (MIOP), which we feel is a more appropriate way to describe the relevant activities in our industry. Finally, to make inventory as productive as possible across the enterprise, more sophisticated systems such as Distributed Order Management (DOM) will be needed.
The ghost of recessions past:
Walter Wilhelm, Walter Wilhelm Associates
I believe we are living through tumultuous and uncertain times. I don't think we ever fully recovered from the 2009-2011 recession and retailers in particular are more conservative and cautious than manufacturers or service companies. This is further complicated by the MAJOR shift from brick-and-mortar to ecommerce. Consequently:
1. Inventory buys will continue to be lower in volume and more near-term so speed-to-market continues to be an important factor. This plays into the hands of technology that reduces the sampling cycle (PLM and 3D fit) and it emphasizes local manufacturing.
2. The difficulty with local manufacturing (for the United States) is that we shifted our skills overseas when we started to outsource almost all our production. Serious volume manufacturing is almost impossible to find in the United States but there is a move to bring modular manufacturing back on a geographic basis (e.g. manufacturing in smaller volume with quick turns for sportswear companies in the Pacific Northwest).
3. Demand for 3D printing (especially for accessories) and wearable technology (healthcare, fitness, active sportswear, uniforms and military applications) will expand faster than the general market growth with more creativity and lower costs for the technology making the technology accessible to smaller, more innovative companies.
How right-sizing the retail industry will manifest:
Dan Stolarksi, 703 Advisors
There is no doubt that we will continue to see disruption in the retail industry next year. The shift from in-store purchases to web will continue at an increasing rate, which will have a profound effect on the overall retail market. Store closures will continue at a rapid pace as there are simply too many physical outlets in the United States. The average square footage will decrease as brands and retailers are increasingly focusing their merchandising strategies. Retailers occupying the mid-market retail space will continue to get squeezed out and we'll see more brands and retailers liquidate. B-grade malls where retailers such Sears, J. C. Penney or Macy's are the anchors will continue to see significant traffic declines, further exacerbating the decline of malls nationwide. And Amazon will continue to steal market share, particularly in the apparel space. The retail industry is being turned on its head, and 2017 will not be any more comforting to many struggling retailers and brands. This of course will continue to open new opportunities for brands and retailers that can successfully navigate the new realities of the retail industry and a new type of consumer.
Retailers embrace lifestyles and experiences:
Emily Bezzant, EDITED
The explosion of sub-categories such as "athleisure," for example (predicted to reach $83 billion in global sales by 2020), highlights how retailers are evolving into lifestyle brands. Many brands have launched activewear/athleisure lines (including Kate Spade, Zara) or collaborated with celebrities (adidas/Kanye West, IVY PARK/Beyonce). In 2017, retailers will push further into niche and smaller markets to cater to consumers' lifestyles. Retailers will also expand into premium services in brick-and-mortar stores — think sipping prosecco or going to a grooming bar — to keep consumers in store longer and offer greater differentiation.
The dawn of the golden era of the marketplace:
Sucharita Mulpuru, ShopTalk
We'll continue to see online sales erode physical store sales in all apparel sectors. Perhaps we'll start to see more sales happening on marketplaces like Pinterest and Instagram. I think Houzz will show that it's possible and these other guys will mimic that success.
Retailers seize the power of authentic communication:
Phil Seward, ICLP
Effective communication is critical to driving the passion and intimacy that is essential for creating the strongest customer-brand relationships, but consumers will expect it to be increasingly more relevant, timely, and delivered through their preferred channels. According to ICLP research, 53 percent of U.S. consumers would purchase more if brands were more communicative with them. It's cyclical: the more devoted a consumer feels towards a brand, the more frequently they shop, the more they spend and the more willing they are to be brand advocates. As a result, retailers will continue to invest in ways to make customer communications more personalized, delivered according to customers' preferred channels and devices.
Mobile innovations will capture consumer attention:
Emily Bezzant, EDITED
People are choosing their mobile devices over their desktops for all Internet-based activities, including shopping. As the smartphone becomes the dominant platform, retailers are relying on social media and the latest applications in virtual reality to promote their wares. Whether it's delivering a 360-degree viewing experience so that a person feels like they are live at Fashion Week or using virtual reality to see how a product fits on a person's body, mobile innovations will provide a unique immersion experience to the consumer.
Sustainability remains central:
Emily Bezzant, EDITED
The retail sector has long recognized the need to be more sustainable, whether it's in product design, use, disposal or innovation. However, fast fashion and sustainability were previously viewed as being on opposite ends of the spectrum. With a growing consumer movement for more sustainably produced items, in 2017 retailers will look at how they can provide better quality products that last longer to align with the consumer's personal values. H&M and Zara have already started to make progress; EDITED's data has found that the median prices of their sustainable collections are $17.99 and $9.90 respectively.
What fizzled in 2016:
Sucharita Mulpuru, ShopTalk
Flash sales and subscriptions seemed like they didn't transform the landscape. Same for resale/online consignment. That said, we can expect Amazon continuing to make inroads into fashion. We'll likely see denim gradually make a comeback as the trend seems to be heading in that direction.
Paula Rosenblum, RSR
What fizzled? Wearable tech. It'll be back, but not yet. I think they have limited purpose – basically exercise monitors. And expecting people who have never seen a watch to actually wear one is a little odd. So the addressable market for its current applications was saturated quickly. They'll be back when they have better battery life and can actually do more stuff. I expect to see them embedded in clothes, not on hands.
SOURCE: The Apparel Edge
Bombay Dyeing & Manufacturing Company reportedly expects its retail business to turn profitable in 2017-18. The company expects an organizational restructuring - with young blood from a variety of other sectors coming in - coupled with Rs 100-crore spends on a brand-refreshment (and re-branding) exercise to help the division get back on track. The company has already decided to exit textile manufacturing, which will now be outsourced. Apart from the brand refreshment exercise, plans are afoot to shore up its retail presence. The company plans to increase the number of franchise stores to 500 (from 200-odd) and double the number of traditional multi-brand outlets to 10,000. Bombay Dyeing & Manufacturing Company is a holding company that is engaged in finishing of cotton and blended cotton textiles; manufacturing of bedding, quilts, pillows and sleeping bags; real estate activities, and manufacturing of polyester Staple Fiber (PSF).
SOURCE: The Live Mint
Cotton prices have moved up and the market sentiment has improved with the Cotton Corporation of India (CCI) resorting to purchase of the commodity at commercial rates from different parts of key cotton growing regions in the country. According to top officials of CCI, prices have now firmed up to R41,500 per candy from the prevailing rates of R38,000 and farmers are now beginning to get better rates from traders. International rates are currently at R42,000 per candy. CCO has stepped in to protect the interests of farmers and industry, M M Chokhalingam, CMD (in-charge) said.
CCI has purchased 10,000 bales so far and for the last couple of days has been going slow on purchases because rates have improved, he said. This is the first time after a gap of four years that CCI has stepped in to make commercial purchases.
Chokalingam said the Corporation will step in aggressively if the market rates slip down and it shall remain for the entire season. The Corporation expects to purchase around 15 lakh bales for the season of 2016-17. In the start of the season, cotton prices were ruling between R5,000 and R5,200 per quintal in various markets while Minimum Support Price (MSP) was at R4,160 per quintal. However, prices dropped down later because of which the CCI intervention helped, he said.
Chokhalingam pointed out that CCI now uses the e-purchase and e-sale modes for sale and purchase of cotton and therefore had called for bids through e-auction. Apart from MSP operations, CCI also has to perform commercial operations at times in the interests of the farmers and to keep the market stable. If CCI does not have stocks then traders can control markets and bring out cotton during lean season,” he explained. “The intent of the CCI is to ensure that this does not happen and keep prices uniform. Instead, CCI will purchase some 15-20 lakh bales of kapas and make it available to the industry in times of need,” he said. CCI has been purchasing kapas or raw cotton from markets wherever the prices are lower, Chockalingam said, adding that the commercial purchase of up to 15 lakh bales would be mainly from the west, central and southern parts of the country as prices in the northern markets are ruling much higher.
Meanwhile, the Maharashtra State Cooperative Cotton Growers Federation has urged both the state and the Centre seeking permission to purchase cotton from farmers at commercial rates. We are usually the sub-agents for CCI and have been purchasing cotton at MSP rates but this time the prices are higher and therefore we would like to purchase at market rates, N P Hirani, chairman of the federation said. Chokhalingam said that the Corporation has authorised the federation to make purchases. It is only private groups that have been told to register as buyers or sellers, he clarified.
The Centre had declared an MSP of R4,160 per quintal for the current season for the long staple fibre and R3,860 for the medium staple length. Besides protecting cotton growers’ interests, CCI caters to the needs of its customers, such as the National Textiles Corporation and several co-operative mills. It also meets the demand of private sector mills, mainly during the lean season, by releasing the fibre from its stocks. Over the last three-four years, CCI has stepped into the markets to protect farmers when prices fell below the minimum support price (MSP) levels. Although Indian cotton acreage had dropped by close to a tenth this year to around 110 lakh hectares higher yields, on account of widespread rains in key producing states, it is expected to help maintain output.
SOURCE: The Financial Express
NimkarTek, a consultancy which specialises in environmental compliance in the textile industry, has announced the launch of a new laboratory service – NDL – which will focus on the analysis of restricted substances as required by the work of the ZDHC and Greenpeace's Detox initiative. The laboratory is capable of analysing end articles, input chemicals, effluent wastewater and sludge, with air emissions also soon to be available. The consultancy has recently received ISO 17025 accreditation for its new laboratory based in Mumbai, India. The laboratory aims to support the textile supply chain in their Detox commitments, "in a methodical and time bound manner," said Ullhas Nimkar of NimkarTek who feels confident the facility is plugging a clear gap in the market.
He explained to Ecotextile News: "There are currently several facilities for the testing of end articles, however, the need today is to ensure there are no releases of hazardous chemicals across all pathways and at all stages of the textile supply chain. This is a challenge and will need the support of competent analytical capabilities to support cleaner production. Innovation in testing and the standardisation of test methods will also play a key role. The main objective of starting NDL is to provide solutions through investigative analysis to all stakeholders of the textile, leather and the chemical industry."
Acting as a consultant to NDL will be Dr Wakankar, ex head of Clariant and a former Archroma product safety as an advisor. Dr Wakankar will help NDL to establish a new 'eco-tox' centre which will help the chemical industry to update their MSDS (SDS) in a scientific manner.
Added Ullhas Nimkar: "Going ahead there is a clear need to ensure the production of clean and sustainable chemicals. Ensuring absence of unintentional contaminants is a challenge. This will need innovation in manufacture and new synthesis routes for chemical manufacturers. The chemical industry will need strong analytical support to verify these novel techniques and also verify their claims. The RSL / MRSL and global legislations limits are at trace levels and the industry will need high level of understanding and a creative insight to comply with these limits. NDL will support this."
SOURCE:The Eco textile
Reliance Industries Limited (RIL) announced successful commissioning of the first phase of Paraxylene (PX) plant at Jamnagar, Gujarat on the birth anniversary of Reliance’s Founder Chairman Padma Vibhushan Shri Dhirubhai H. Ambani. The plant with capacity of 2.2 MMTPA is built with state of the art crystallization technolgy from BP which is highly energy efficient and environment friendly. With the commissioning of this plant, RIL’s PX capacity will more than double from 2.0 MMTPA to 4.2 MMTPA. On commissioning of entire PX capacity, Reliance will be the world’s second largest PX producer with 9% of global PX capacity and 11% share of global production. The new PX capacity takes RIL a step closer to being among the top 10 petrochemical players globally.
Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said that this is a fitting tribute to their visionary Founder Chairman Shri Dhirubhai H. Ambani. The new PX capacity will add value to the output from refineries and improve the profitability of the Jamnagar complex. PX is the building block for the entire polyester chain. The new capacity will complete the integration within Reliance’s polyester value chain, leading to improved margins and also strengthen its position in polyester industry globally.
Commissioning of the new PX plant marks beginning of the culmination of a series of projects including the refinery off gas cracker, ethane import project and petcoke gasification. These projects are part of the largest contemporary investment, in excess of Rs. 100,000 crore, in Refining and Petrochemicals sector anywhere in the world. The projects are on schedule and at an advanced stage of mechanical completion.
SOURCE: Yarns&Fibers
Of late, there has been much concern expressed in business and political circles about the declining trend of Indian exports, after a period of steady growth. Focusing too much on fluctuations in the short run can lead to distortion; one needs to look at exports not at an arbitrary point in time but over a period of at least three to five years to gain perspective. A quick glance would show that Indian exports, which stood at $312 billion during 2011-12, dropped by 14.4 per cent to $262 billion in 2015-16. However, we need to drill down beneath the headline numbers to discern the underlying reasons. From 2011-12 to 2015-16, Indian exports fluctuated both ways — they dropped from $306 billion in 2011-12 to $300 billion in 2012-13, and rose 4.7 per cent to $314 billion in 2013-14, dropped again by 1.3 per cent to $310 billion in 2014-15. Again, they dropped steeply by 15.6 per cent to $262 billion in 2015-16.
Export scenario
Let us examine the apparent fall in two stages. First, in the four fiscal years between 2011-12 and 2014-15, one can see that Indian exports were almost flat, hovering around the mean value of $308 billion. Over the same period however, the rupee depreciated against the US dollar by 22.7 per cent, from 51.2 rupees per US dollar as on March 31, 2012, to 66.3 rupees per US dollar as on March 31, 2015.
Remember, the export numbers are reported in US dollars which therefore embody the element of exchange fluctuation. Given that Indian exporters are more price-takers than price-setters, the depreciation of the rupee yields benefits to exporters in the short run but is usually eroded by cost increases as well as tough negotiating on the part of overseas buyers.
By contrast, the difference between the high point of $314 billion exports in 2013-14 and the low of $300 billion exports in 2012-13 is just 3.5 per cent. In other words, between 2011-12 and 2014-15, export values in US dollars increased marginally by 1.3 per cent, while the rupee depreciated by 9.5 per cent over the same period. Thus we see that allowing for the appreciated dollar, Indian exports would actually have grown during the period, disguised by the exchange rate effect. The relatively flat US dollar values embody higher rupee values and physical units. To conclusively state this, one would need to drill down into quantities and physical units. The logic, however, is quite clear. Given that this occurred in an environment of weak global demand, Indian exporters deserve much credit.
Let us come then to the steep drop in 2015-16. Undoubtedly, a 15.5 per cent fall from $310 billion in 2014-15 to $262 billion in 2015-16 is no small matter. To understand the reasons, we need to look at the components of the export basket and identify where exactly the drop occurred. As may be seen, over 80 per cent of the five year decline in exports is accounted for by three industry sectors. These are gems and jewellery, which fell by 15.1 per cent, petroleum products which fell by 46.4 per cent and agricultural products which fell by 3.7 per cent.
Import challenges
At this point, it is counter-intuitively useful to see the other side of the coin as well, so let us look at the import basket. We see that Indian imports rose marginally from $489 billion in 2011-12, to $491 billion in 2012-13, then dropped by 8.3 per cent to $450 billion in 2013-14, marginally further to $448 billion in 2014-15, then plunged steeply by 15.1 per cent to $380 billion in 2015-16.
Interestingly, two industry sectors account for almost the entire drop in imports. Crude petroleum imports dropped by 46.5 per cent from $155 billion in 2011-12 to $83 billion in 2015-16. In parallel, imports of gold fell by 43.9 per cent from $57 billion in 2011-12 to $32 billion in 2015-16. Now the picture begins to emerge. In large part, what we are seeing is a price effect in petroleum. India is an importer of crude petroleum and an exporter of refined petroleum products, having the advanced refining capacity to tackle heavy and sour crudes (from Venezuela etc.) that challenge older refineries in other parts of the world.
The sustained drop in oil prices per barrel have led to a fall in the dollar value of our crude petroleum imports; however with gross refining margins remaining more or less on trend, the realised dollar value of refined petroleum product exports has also fallen in tandem. If, in a thought experiment, we were to draw up a balance of trade in crude and refined petroleum alone (highly simplified), our petro trade deficit of $98 billion in 2011-12 (accounting for 53.6 per cent of the total merchandise trade deficit) dropped by 46.5 per cent to $53 billion in 2015-16 (accounting for 44.3 per cent of the total merchandise trade deficit).
Gold options
Now for the story on gold. Remember that 2011-12 and 2012-13 were years of high inflation. The headline rates of inflation in those two years was 8.3 per cent and 10.2 per cent respectively; the street rate of inflation as perceived by people was undoubtedly higher. With inflation a real problem and inflation expectations hardening, the rate of return on savings became critically important. The rate of interest payable on bank deposits for one year at that time was 8 per cent (State Bank of India), i.e. a materially negative real rate of return, more so after factoring in tax payable.
Savvy Indian savers responded to this iniquity by shifting from financial savings to real savings with high-value low-volume gold being the option of choice. Gold imports of $57 billion in 2011-12, up by 39 per cent from $41 billion in 2010-11) were an all-time record for India. In the second half of 2013 however, with the rupee under pressure, the Government and the RBI took stern measures (tariff and non-tariff restrictions) in tandem to reduce the relative attraction of gold. While some gold demand would surely have shifted to unofficial channels, the efficacy of the measures can be seen in that gold imports dropped to just $29 billion in 2014-15 and $32 billion in 2015-16.
The import compression driven by gold policy measures and the drop in crude petroleum prices, outweighed the drop in refined petroleum products exports, thus leading to very material compression by 35.4 per cent in the trade deficit from $183 billion in 2011-12 to $118 billion in 2015-16. In conclusion, one may reasonably state that Indian exports have held up well in a very challenging environment of weak global demand. The apparent fall in Indian exports is predominantly a price effect that has also compressed the import side of the equation, leaving us with a small trade deficit.
SOURCE: The Hindu Business Line
After submitting a concept note on a trade facilitation agreement (TFA) on services at the World Trade Organization (WTO), India is planning to firm up strategy for the next course of action across key issues at the multilateral body. Commerce minister Nirmala Sitharaman has convened a meeting of senior officials of her ministry as well as those posted at the WTO headquarters in Geneva later this month, the minister said. The idea is to not just take stock of steps already taken by the country at the WTO but also to prepare a road map for the post-Nairobi ministerial world order. Already, in a mini-ministerial gathering of trade ministers in Oslo on October 21-22, Sitharaman reiterated the country’s commitment for a successful conclusion of the 2001 Doha Development Agenda (DDA) and other issues of interest to developing countries, apart from making a fresh pitch for the TFS on services. The minister had also “underscored the need for prioritising the implementation of Bali and Nairobi Ministerial decisions”. All these issues, among others, are expected to come up for discussion in the meeting later this month.
The Doha round of negotiations have remained stalled since 2008, primarily over the issue of huge trade-distorting subsidies being given to farmers by the rich countries. The fundamental objective of the DDA was to improve trading prospects for developing nations. While India and other developing nations want a reaffirmation to conclude the DDA first, developed countries seek to mostly dilute the negotiations and widen the mandate with new issues, including e-commerce and global value chain. India has also been seeking concrete work plans on a special safeguard mechanism (SSM) for developing countries to protect their farmers from a spurt in imports, and on a permanent solution to the issue of its official grain procurement and food security in the country, as agreed on in the Bali ministerial.
Inputs for FTP review sought from exporters
The commerce ministry has asked exporters to submit inputs for the mid-term review of the foreign trade policy (FTP) for 2015-20, Sitharaman said. The exercise is expected to be over by September. The current government unveiled its first FTP in April 2015, targeting to double exports of goods and services to $900 billion by 2020.
SOURCE: The Financial Express
The Central Board of Direct Taxes (CBDT) has started the year 2017 on a strong note on the Advance Pricing Agreements (APAs) front. On Wednesday, the CBDT entered into three unilateral APAs, taking the overall tally of APAs entered into by the country to 120. The three APAs signed on Wednesday related to the engineering goods and shipping sectors of the economy. The international transactions covered in these agreements include intra-group services and support services, an official release said.
Of the 120 APAs, as much as seven were bilateral and 113 unilateral APAs. A total of 56 APAs (4 bilateral APAs and 52 unilateral APAs) have been entered into in the current financial year till date. The CBDT expects more APAs to be concluded and signed in the near future. The APA Scheme was introduced in the Income-Tax Act in 2012 and the “rollback” provisions were introduced in 2014. The scheme endeavours to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and setting the prices of international transactions in advance. Since its inception, the APA scheme has evinced a lot of interest from taxpayers and that has resulted in more than 700 applications (both unilateral and bilateral) being filed in just four years.
The progress of the APA Scheme strengthens the Government’s resolve of fostering a non-adversarial tax regime. The Indian APA programme has been appreciated nationally and internationally for being able to address complex transfer pricing issues in a fair and transparent manner.
SOURCE: The Hindu Business Line
Indian economy is steadily getting back on its feet and poised for good growth in the quarters ahead after a tumultous period post abrupt demonetisation of high-value currency notes in November, corporate leaders, bankers and experts said. Digital payments are clearly the way forward for the economy, but India’s banking system needs to seize the opportunity to expand its operations among the weaker sections, panelists said at a discussion organised by Times Network, which has launched a nationwide initiative to “Remonetise India”.
Minister for Power, Coal, Renewable Energy and Mines Piyush Goyal endorsed the initiative of Times Network, part of India’s top media conglomerate, The Times Group. “I urge the citizens of our country and various stakeholders to join this movement and support the government in its future endeavours,” the minister said. Paytm Chief Executive Vijay Shekhar Sharma said people are increasingly adopting digital transactions. “I do not believe that we need to go back to the old cash-based economy…People are not choosing out of fear now…Digital is a sign of progress, and not one of obligation,” Sharma said. IDFC Bank CEO Rajiv Lall said the banking system needs to rise to the occasion. “One of the biggest challenges the country has faced for more than 50 years has been delivering banking services to the poor. This is a huge opportunity… This is their ‘sachet moment’. They have to take the same challenge that the FMCG companies and telecom companies took up years ago,” Lall said.
Maruti Suzuki Chairman RC Bhargava said the company had never encouraged cash payments as it wanted clean, transparent systems that were insulated from corrupt practices. He said that contrary to expectations of weak demand and general slowdown of the economy after demonetisation, Maruti performed well in December.Rajiv Kumar, senior fellow at Centre for Policy Research said the government needs to make some reassuring statements. “The uncertainty is simply about whether there is anything else in store for us. The government has to dispel it,” he said. Times Network’s ‘Remonetise India’ initiative urges citizens to spend and enable digital channels of payment. Times Network will conduct several on-ground activities like Aadhaar camps, investor camps and cashless festivals, while also utilising on-air, digital and social media promotions to spread awareness.
SOURCE: The Economic Times
Non-food credit growth hit a multi-year low of 5.3% on a year-on-year (y-o-y) basis during the fortnight ended December 23, data released by the Reserve Bank of India (RBI) showed. This marks a worsening from the 5.9% growth figure clocked in the previous fortnight. With growth in food credit falling 5.3% y-o-y, overall bank credit grew just 5.1% to R73.48 lakh crore.
Deposits with the banking system rose 15.1% y-o-y during the fortnight under review to R105.16 lakh crore. The figure, however, marked a 0.7% drop from the previous fortnight. This is the first time in two months that aggregate deposits with the banking system have fallen. Banks had been seeing a steady rise in deposits since the government announced the demonetisation of R500 and R1,000 notes. The credit-deposit (CD) ratio of the banking system, or the proportion of deposits deployed as loans, rose marginally to 69.87% from 69.29% in the previous fortnight. The ratio had been falling successively since demonetisation as banks sat on piles of deposits in an environment of weak credit demand.
The last few days have seen banks and housing finance companies slashing lending rates aggressively in an attempt to stoke retail credit demand. The country’s largest lender, State Bank of India (SBI), on January 1 reduced its one-year marginal cost of funds-based lending rate (MCLR) by 90 basis points (bps) to 8% and increased the spread over MCLR for most retail loans. Other lenders have followed suit, bringing down their MCLRs by between 15 and 85 bps.
The series of rate cuts have led to some analysts suggesting that the net interest margins of banks may be hit in the quarters ahead. However, in a note dated January 3, analysts at Nomura wrote that the impact on margins may be limited as loans based on the MCLR regime constitute only a small proportion of banks’ overall portfolios. “For most large banks MCLR-linked loans currently account for 15-20% of total loans, with the exception of the SBI for whom the proportion of MCLR-linked loans is 40%. The rest of the floating loans are based on base rate and the reduction in base rates has been significantly larger,” Nomura wrote. “Since base rate-linked loans form 40-50% of banks’ loan book, MCLR cuts don’t automatically affect yields of base rate-linked loans.”
SOURCE: The Financial Express
Expenditure Finance Commission (EFC) under Ministry of Finance cleared 29 proposals of various ministries involving expenditure of about Rs 2.11 lakh crore during the last year. Besides, Public Investment Board (PIB) headed by Expenditure Secretary cleared 12 proposals involving expenditure of Rs 28,673 crore. Of these, three proposals of Ministry of Power worth Rs 8,612 crore were cleared by the board during calender year 2016.
Proposals of Ministry of External Affairs and Ministry of Road, Transport and Highway involving investment of Rs 7,291 crore and Rs 6,461 crore, respectively, were also cleared, Department of Expenditure under Ministry of Finance said in its year-end review for 2016. “During the period from January 1 to November 30, 2016, the EFC chaired by Expenditure Secretary recommended 29 investment proposals or schemes of various ministries and departments costing Rs 2,11,049 crore,” it said.
With regard to Public Financial Management System (PFMS), it said, this web-based online software application has been fully implemented at the central government level for all plan and non plan scheme releases. So far 18 lakh (approx) implementing agencies are registered on PFMS and the total number of beneficiaries bank accounts registered in PFMS till November 30 is 19.07 crore. The primary objective of PFMS is to facilitate a sound Public Financial Management System for Government of India (GoI) by establishing an efficient fund flow system as well as a payment-cum-accounting network, it said. It further said that PFMS treasury integration is currently operational in 12 states and integration process has been initiated in other states also. It is expected to be completed by March 31, this year.
During the year, the Controller General of Accounts (CGA) has developed a risk based control framework in the form of Generic Internal Audit Manual to guide the internal audit engagements. The manual not only explain the complexities associated with the internal audit functions but also facilitates the entire process by providing audit process, templates and guidelines, it said.
Talking about other achievements, Department of Expenditure said that the Centralized Public Grievances Redressal and Monitoring System (CPGRAMS) has been effectively implemented and of so far a total number of 4,475 out of 4,508 grievances have been successfully redressed/disposed.
SOURCE: The Financial Express
Government is expected to meet the fiscal deficit target of 3.5 per cent of GDP in the current financial year, despite recent demonetisation move and potential delay in roll out of the Goods and Services Tax (GST), says a report. According to global financial services major, DBS fiscal consolidation is likely to stay on track next year despite the risk that it might slow down. “Despite the recent demonetisation drive and potential delay in the roll out of the GST, the 2016-17 fiscal deficit target of 3.5 per cent of GDP is likely to be met,” DBS said in a research note. Fiscal deficit, the gap between expenditure and revenue for the entire fiscal, has been pegged at Rs 5.33 lakh crore, or 3.5 per cent of GDP, in 2016-17.
According to official figures, fiscal deficit touched Rs 4.58 lakh crore, or 85.8 per cent of the budget estimate for the whole financial year, at the end of April-November. “Yet far in 2016-17, the fiscal math has disappointed. With four months still to go, April-November 2016 fiscal deficit is at 86 per cent of the full-year goal,” DBS said but added that “the risks of fiscal slippage are low”.
The report noted that expenditure disbursements are apace, while revenues play catch-up. Moreover, revenues are likely to rise as seasonally strong months of December and March draw closer, it added. “Until November 2016, most revenue sub-heads were running above their budgeted pace, especially indirect tax collections, while collections from Income Declaration Scheme and dividends from the Reserve Bank have also been helpful,” DBS said. Moreover, windfall tax gains are likely if the banknote ban initiative is successful in unearthing unaccountable money from the system, though most benefits are likely to be accrued in the medium-term. Non-tax revenues from spectrum licenses and divestment receipts have been encouraging, but might miss targets, the report said.
SOURCE: The Financial Express
Finance Minister Arun Jaitley on Wednesday said that no consensus has been reached between Centre and States on the issues of dual control and definition of territory. Jaitley, speaking to media, said that next meeting to discuss differences will take place on January 16th. “IGST has 11 chapters, initial ones discussed, few remain;because discussion was inconclusive will meet again on 16 Jan,” Jaitley after GST council meet. “Definition of territory and dual control are two key issues that are pending,” he added. Though no consensus have been reached, Jaitley said that states have a very positive attitude towards resolving differences. Speaking on the issue of reaching April 1st deadline, Jaitley said: “We know the difficulty, we are moving against time that is why we are meeting on 16 Jan.” Jaitley said that revenues in terms of both, direct and indirect taxes will be higher estimated. “We will end the year with higher revenues in both direct and indirect taxes, will exceed budget estimates,” said Jaitley.
“Some FMs gave details of increased revenue, have asked states to furnish revenue data of last 2-3 yrs so we can study it,” Jaitley said on data sharing issue between central and state government. Speaking on the issue of currency withdrawl from banks, Jaitley said: “RBI will decide after assessing market situation, sometimes decisions are taken in phases&so are relaxations,”
Dual control and definition of territory have been the key issues preventing Central Government from meeting the April 1st deadline. In council’s last meeting, Union Finance Minister Arun Jaitley had said that GST’s primary drafts for Central Goods and Service Tax (CGST) and State Goods and Service Tax (SGST) have been approved. However, no consensus was reached on the issues of dual control and cross empowerment issues still remain to be resolved.
There is an issue with Integrated GST (IGST) Bill and dual control regarding division of jurisdiction and administrative powers over tax assesses between the Centre and the states.
SOURCE: The Financial Express
With the issue over division of the 10 million indirect tax assessee base between the Centre and states for administrative purposes looking intractable even at the end of the eighth session of the Goods and Services Tax (GST) Council here on Tuesday, the proposed epochal tax reform, which has been on the anvil for over a decade now, will most likely be delayed to June-July 2017 or later. While this and the differences over the size of the compensation for states and the administration of integrated GST (IGST) reflected how demonetisation has rapidly dispelled the initial Centre-state bonhomie at the council, the heightened uncertainty has made the Centre’s task of making the estimates for the Union Budget 2017-18 even more daunting.
Union finance minister Arun Jaitley said that with the council approving the 11-chapter draft integrated GST law except one section, the two key unresolved issues related to “cross-empowerment” and definition of “territory” for the purpose of taxation powers. Terming both “complex issues”, he explained that under the Constitution, territorial waters up to 12 nautical miles into the sea are in the Union territory, although coastal states enjoyed “fishing rights” in these areas and they have also been levying sales tax/VAT on high-sea transactions. Saying this was not a political issue, the minister said a constitutionally and legally tenable solution to it would be found soon. The council will meet next on January 16 to discuss the two issues.
Jaitley said the Centre’s direct and indirect tax revenues in 2016-17 would be higher than budgeted (thanks also to the additional revenue measures in the excise arena and the spurt in personal tax collection from increased salaries to government staff), and sought to counter the views taken by some states that the note ban has dented their revenues. A few states like West Bengal and Kerala argue that the compensation for states’ annual revenue loss due to GST, earlier estimated at about R55,000 crore a year, could be much higher owing to demonetisation. Jaitley, however, said that on the contrary, many states like Punjab, Haryana and Assam have reported “increase in revenues” and added that “compensation is not linked to demonetisation”. “We have asked states to furnish enough data so that the pattern can be studied,” he said.
However, analysts said with the likely slowdown in the economic growth for at least two quarters and the chances of the new income disclosure scheme PMGKY yielding lower revenues than expected, the Centre will have to struggle to keep consumption robust through sustained public spending.
The vexed issue of dual control — division of the assessee base and administrative powers between the Centre and states — was sidestepped in all previous sessions of the council as the divide looked unbridgeable. Many states remained firm on their stand that all dealers and service providers below Rs 1.5 crore annual turnover should be under the states’ exclusive control. The Centre has been advocating a vertical split of the assessee base and insisted that service providers should remain under its control till the states are trained in assessing them.
In fact, an agreement had earlier been reached that there won’t be dual control on any taxpayer; that is, each business will either report to the Centre or the respective state. But if IGST administration is to be left with the Centre (the law ministry recommended that the Centre should collect GSTs on not only imports but also interstate trade and distribute to the states in keeping with the principle that the revenue rights lie with the states where the consumption takes place), then dual control might become necessary in cases of businesses with interstate presence. On Monday, many industrial segments like telecom, railways, banking, insurance and aviation apprised the council of the need for their centralised registration for ease of compliance.
The bitterness that has crept into the council was also evident from West Bengal finance minister Amit Mitra walking out of a meeting called by Jaitley on the sidelines of the council to discuss the upcoming Union Budget. Jaitley later took a subtle dig at Mitra — who had claimed the states’ post-demonetisation revenue loss could inflate the GST compensation to Rs 90,000 crore — saying when he said that “states which have been governed well fared well (on the revenue front)”.
At its meeting on November 4, the GST Council had agreed on a four-slab structure — 5%, 12%, 18% and 28% — along with an additional cess on luxury and ‘sin’ goods to raise the funds for the Centre to compensate the states. The council is yet to finalise the list of items under each tax bracket, although a committee of officials has prepared a draft in this regard. With most items moving to the tax bracket closer to the rates they are currently subjected to, analysts said that the Centre might try to align the rates for may items in the coming Budget. The service tax rate, it looks certain, would move up from the current 15% as most services are likely to fall under 18% GST rate.
Experts pointed out that since the industry would require three to four months after all the relevant laws and rules are finalised to prepare itself for the GST, April 1 roll-out of the new tax looked highly unlikely at this juncture. There is a constitutional compulsion on the Centre and states to usher in GST before September 16, 2017, as after that the extant indirect taxes will become non-enforceable.
SOURCE: The Financial Express
The possibility of roll out of the Goods and Services Tax (GST) has moved further to September as a new issue has cropped up – the states’ demand for an increased share in the new indirect tax collections, Kerala Finance Minister Thomas Issac said on Wednesday.“I am not very optimistic about GST rolling in June or July. It is better to move to GST after all the preparations are done. To my understanding it will be implemented September onwards,” Isaac told reporters here after the two-day GST Council meet came to end.
Ruling out the April 1 implementation of GST, after the Day 1 of the Council meet, Issac on Tuesday had told reporters that the rollout of the GST may only be possible by June-July. The Kerala Finance Minister on Wednesday said that the state GST (sGST) can be passed in the state’s respective budget sesssions or special sessions can be convened, which will make rollout possibile by September onwards.
Raising new issues between the Centre and the states, Issac said that the Council members discussed the four tax slabs under the GST and the states felt that the states and Centre share in the taxes should be 60:40 and not 50:50. “Four different GST rates have been fixed. Highest bracket is 28 per cent. It is taken for granted that Centre and state share in it will be 50:50. “Over the years, states’ rights have been curtailed. This presents a historic opportunity to correct the states’ share to 60 per cent and Centre’s share would be at 40 per cent. The states today (on Wednesday) supported this understanding,” Issac added.
Four tax rates of 5 per cent, 12 per cent, 18 per cent and 28 per cent have been decided under the GST regime. These apart, another category of tax between 40 per cent and 65 per cent will be imposed on luxury goods like high-end cars, pan masala, aerated drinks and tobacco products. With the states now demanding increased share in the indirect tax collections, the crisis of GST rollout has deepened as the other issues of dual control or cross empowerment, which deals with assessee’s jurisdiction and the issue of area of state jurisdiction under integrated GST (iGST) have already created an impasse in the Council. A number of states are firm that dealers and service providers below Rs 1.5-crore turnover should be entirely under the state’s control. “We haven’t been able to even touch the dual control issue, which is fundamental to this process,” West Bengal Finance Minister Amit Mitra had told reporters here on Tuesday.
The GST Council meeetings which were progressing well have been impacted after demonetisation dented the states’ revenues by 30-40 per cent. Mitra had said that states’ tax revenues have fallen around 30-40 per cent owing to the depressive impact of the November 8 demonetisation measure, which has complicated the issue of compensation to states for future losses arising from the GST implementation. Noting that the compensation fund would, therefore, require to have a much larger corpus of around Rs 80,000-90,000 crore, as compared to the current plan of Rs 55,000 crore, Mitra had also said that the GST Council will now take a call about the Centre taking responsibility for fully compensating states for the loss of revenue.
SOURCE: The Financial Express
The toll-free helpline number 1800 103 9271 will be available in six languages — English, Hindi, Gujarati, Marathi, Kannada and Malayalam. The data shared by the GST portal set up by the government reveals that Assam, Arunachal Pradesh, Uttar Pradesh, Delhi, Uttarakhand, Himachal Pradesh, Maharashtra and Bihar have observed poor-to-average response to the registration drive. Gujarat (78.36 per cent), Madhya Pradesh (76.87 per cent), Chhattisgarh (74.49 per cent), Rajasthan (67.13 per cent), West Bengal (60.58 per cent), Chandigarh (53.13 per cent), Jharkhand (56.29 per cent) have witnessed robust response. In Kerala, Tamil Nadu, Karnataka, Telangana and Andhra Pradesh, the registration process began on January 1 and will end on January 15, before the start of the second round of registration in March.
Trial run
Mohit Bhambani, CEO of the company, said, “We had run this toll-free service for five days on trial basis and responded to over 1,800 queries of a limited group, mostly CAs. About 34 per cent of callers were consulted on complete GST enrolment process. We have created a built-in capacity of handling 1,500 calls a day. In the next few months, we plan to add more regional languages.” KDK Softwares has volunteered to set up an infrastructure for the purpose and create a bridge between MSMEs and the government. The company has roped in 50 professionals, including CAs, company secretaries, legal experts, software engineers and domain experts to tackle the queries from SMEs and MSMEs.
SOURCE: The Hindu Business Line
The rupee opened nearly 15 paise higher at 67.90 against dollar on Thursday on account of selling of American currency by bank and exporters. Meanwhile, the domestic equity market kicked off the day on a firm note following robust global cues. The 30-share BSE Sensex opened 105.29 points or 0.40 per cent up at 26,738.42 on Thursday, while NSE Nifty opened 41.70 points or 0.51 per cent higher at 8,232.20. The local currency settled 28 paise higher at 68.05 against dollar on Wednesday. ICICIdirect.com in a research note said, “The rupee witnessed renewed strength from the one-month high against the dollar. The weakness in the dollar index was the primary reason behind the rupee strength on Wednesday.”
Government bonds witnessed fresh buying on Wednesday after a sudden sell-off was seen in the penultimate session. The benchmark 6.97% 2026 bond yield declined to 6.38 per cent from 6.45 per cent in the previous day. In the currency futures market, the most traded dollar-rupee January contract on the NSE ended at 68.21 on Wednesday. ICICIdirect.com in a research note said, “We expect the US$ to find resistance at higher levels. Utilise upsides in the dollar to go short on the US$INR pair.”
SOURCE: The Economic Times
The government on Wednesday said that its engagement with Pakistan needs to continue. “We cannot change our neighbours, we have to deal with them. But, we have to deal with them with our eyes open. Let there be peace there will be dialogue,” Minister of State for External Affairs MJ Akbar told reporters here at a press conference. Akbar said over the last two-and-a-half years of the present government, India has tried to achieve the best results with Pakistan under the ‘Neighbourhood Policy’ even though that country has tried to “disrupt” efforts made to revive a dialogue. “Peace cannot take place under a stray of bullets. Talks and terror cannot go together. This has to stop. There can be no other way for any forward movement,” he said.
Bilateral ties between India and Pakistan underwent one of its worst phases in the past year with successive attacks on Indian armed forces allegedly by Pakistan-backed terrorists that began with a terror strike at the Pathankot air base followed by Uri and Nagrota. India responded by conducting a spate of surgical strikes on the ‘terror launch pads’ across the Line of Control (LoC) in August.
Taking a dig at Pakistan, VK Singh, also Minister of State for External Affairs, said all countries in the South Asia region “barring one” have demonstrated their united efforts to fight against terrorism. “The aim of the surgical strikes that we conducted was to convey to Pakistan that we will not countenance continued terrorism as the new normal in our relationship. Our own good faith has been amply demonstrated time and again through repeated initiatives to normalize the relationship. However, as we have often stated, talks and terror cannot go together,” Singh added. On the issue of China vetoing India’s move at the UN to designate Jaish-e-Mohammed chief Masood Azhar as a terrorist, Akbar said India expects China “to hear the voice of the world and not just India”.
NSG membership
According to Singh, India’s membership at the Nuclear Suppliers’ Group (NSG) was discussed during an internal meeting in Vienna that took place on November 11. “Our engagement with China is purely driven by our national interest. Certainly, there are areas of divergence with China but that happens in any matured relationship,” he said. Singh added that Chinese industrial parks are progressing well, which are coming up in Pune and Vadodara, especially in segments such as machine and tools.
SOURCE: The Hindu Business Line
The Cabinet on Wednesday gave it’s nod for signing and ratifying an agreement between India and Uruguay on cooperation and mutual assistance in customs matters, an official statement said. The two countries would share information to prevent and investigate customs offences under the agreement, which is expected to facilitate trade and efficiency clearance of rated goods. The agreement would also look at several issues such as correctness of the customs value declared, the authenticity of certificates of origin of goods and the description of the goods traded between the two countries.
Pact with Portugal
A memorandum of understanding (MoU) between India and Portugal in the field of agriculture has also received Cabinet nod. Under the agreement the two nations would exchange scientific and technical information, trade in plants and plant products, exchange information on phytosanitary issues, conduct training programmes, seminars and visits of experts and consultants. The deal would remain in force for five years, with automatic extension at the end of that time, unless either country seeks to terminate it. A similar agreement on agriculture between India and Kenya has also received Cabinet nod.
Agreement with Kenya
“The MoU covers various activities in these fields which include agricultural research, animal husbandry and dairy, livestock and fisheries horticulture, natural resource management, post-harvest management and marketing, soil and conservation, water management, irrigation farming systems development and integrated watershed development integrated pest management, agricultural plant, machinery and implements, sanitary and phytosanitary issues,” the statement said.
Diplomatic enclave
The Cabinet also approved a proposal to transfer 34.87 hectare land in Sector 24, Dwarka, New Delhi, to the Land and Development Office for developing a second diplomatic enclave in the Capital. The land previously belonged to the Delhi Development Authority.
SOURCE: The Hindu Business Line
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 54.30 per barrel (bbl) on 04.01.2017. This was lower than the price of US$ 54.88 per bbl on previous publishing day of 03.01.2017.
In rupee terms, the price of Indian Basket decreased to Rs. 3702.29 per bbl on 04.01.2017 as compared to Rs. 3736.33 per bbl on 03.01.2017. Rupee closed weaker at Rs. 68.18 per US$ on 04.01.2017 as compared to Rs. 68.09 per US$ on 03.01.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on January 04, 2017 (Previous trading day i.e. 03.01.2017) |
Pricing Fortnight for 01.01.2017 (Dec 14, 2016 to Dec 28, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
54.30 (54.88) |
53.05 |
|
(Rs/bbl |
3702.29 (3736.33) |
3599.97 |
|
|
Exchange Rate |
(Rs/$) |
68.18 (68.09) |
67.86 |
SOURCE: PIB
"The Towel Manufacturers Association of Pakistan hail the efforts of the Senate Standing Committee on Textile Industry specially of Senator Mohsin Aziz and Senator Nihal Hashmi for initiating a meeting of textile exporters with Governor State Bank of Pakistan and other heads of financial institutions and DFI's to discuss the issues related to textile industry and its resolution thereof. The main concentration of the meeting was on deteriorating country exports of textile which is going downward continuously since long. Textile stake holders highlighted the issues of the industry before Governor State Bank of Pakistan with special reference to non performing loans and revival of sick industry. Those exporters who are facing NPL issue since some time back were leading Exporters of Textiles and were earning Precious Foreign Exchange for the beloved country. If such exporters are provided a change they will certainly help in increasing country forex reserves.
Towel Manufacturers Association of Pakistan delegation presented a working paper to the governor based on 9 points for revival of the textile industry and assured the Governor that, "if our proposals are given due weight age, we can assure that our country's exports will Increase manifold which will ultimately help the exporters to come out from the crises which they are facing since long as well as it will help the government in increasing foreign reserves which is badly needed for the country." It will also help in reducing trade deficit of the country and easing un-employment which lead to rise in crimes in the Country.
SOURCE: The Business Recorder
The American National Standards Institute (ANSI) through its Standard Alliance, had organised standards-related events in Washington for the members of the Ghanaian textiles and apparel industry who recently visited the US. The events helped Ghanian delegates to understand the market opportunities and requirements for textiles and apparel in the US. The events were organised through ANSI’s public-private partnership with the US Agency for International Development (USAID) known as the Standards Alliance with the help of strategic international trade advisor Sandler Trade LLC. The Ghana delegation’s visit was part of the US State Department’s International Visitor Leadership Program (IVLP).
The 10-day IVLP visit, from December 5-13, provided nine Ghanaian participants a detailed introduction to the US textiles and apparel market as well as the US regulatory environment. During the first day, Ghanaian participants travelled to the Office of the US Trade Representative (USTR), where they discussed international trade agreements, US trade preference programs, and technical regulations required to gain access to the US market.
Following their meeting with the USTR, delegates travelled to Sandler Trade LLC to learn about the development of the voluntary standards and testing systems that form the foundation of US testing and regulatory requirements. Presentations by the US Consumer Product Safety Commission (CPSC) and the US Federal Trade Commission (FTC) detailed specific regulatory requirements, while ASTM International and Bureau Veritas provided context to the regulations by explaining voluntary standards and testing systems in the US.
Discussions between Sandler and the delegates about the Us textiles market helped the Ghanaian participants brainstorm how their products might fit in the US market and helped to further solidify the importance of technical regulations to gain access to the market. The delegation also met with the American Apparel and Footwear Association (AAFA), Fair Trade America (FTA), and the Fair Trade Federation (FTF). Presentations by these organisations provided additional information on fair trade market requirements and related certifications. The standards-related events built a foundation for the remainder of the trip. Following their Washington visit, the IVLP delegates travelled to North Carolina to view US on-the-ground design, production, and retail operations. The delegates visited US companies operating in North Carolina and learned about US marketing approaches, US import practices and state government promotion of trade. They also visited universities, trade associations and US government agencies involved in importing goods.
SOURCE: Fibre2fashion
Cotton arrival from the current crop has increased 11.72 per cent but remains below the revised output target for 2016, a industry data shows. In its fortnightly cotton arrival report, the Pakistan Cotton Ginners Association (PCGA) has said that a total of 10.36 million bales arrived in the country by December 31, last year against 9.27 million bales during the same period in the preceding year. Analyst and president of Karachi Cotton Brokers Association Naseem Usman has revealed that the government had fixed the target at 14.1 million cotton bales which was later revised to 10.8 million bales. He further said that his Association doesn’t see cotton arrival going beyond 10.5 million bales of 170 kilogram each.
Fortnightly cotton arrival flow from December 15 to 31 remained at 218,762 bales but lower than last year’s arrival of 244,987 bales during the same period. Arrivals from Punjab increased by 18.71 per cent to 6.61 million bales as compared to 5.57 million bales during the same period in 2015. Flows from Sindh increased only 1.21 per cent to 3.74 million bales against 3.70 million bales.
The All Pakistan Textile Mills Association (Aptma), citing the reason of shortage against consumption demand, has urged the government to withdraw four per cent custom duty on cotton import in the country. Pakistan’s total cotton demand is around 16 million bales. According to APTMA sources, the millers had imported 1.2 million tons of lint from African countries, Brazil and US earlier this season and purchased 1.0 million more bales from the local crop. Still they required 3.5 million bales to meet the consumption demand, which would now be fulfilled with import from India.
SOURCE: The CCF Group
It is usually heard that China is putting up the shutters on its textile mills and garment factories and as a result Bangladesh's industry is going to be flooded with business migrating from there. Some others think otherwise. They are worried whether the industry is seeing its end and is becoming a sunset industry soon. We think both conjectures are incorrect. China is not done yet with its textile and garment manufacturing. On the contrary, it has laid out plans to effectively counter the challenge of rising cost of production in the current bases of manufacturing by shifting them to low-cost areas within the country. According to some sources, they have already started working on implementation of the mega project and investing billions of dollars. So, China is not yet allowing itself to close its eyes on this kind of shift. Even, for the sake of an argument, if it is going to happen, in a big way or not, then there are other emerging markets too. We can't and shouldn't ignore what the readymade garment (RMG) industries in Vietnam, Cambodia, Sri Lanka, India and the Philippines can do right away. They may be even better prepared policy-wise, investment-wise, infrastructure-wise and location-wise to grab most of this opportunity. Also, we have to consider the cases of Myanmar and some countries in Africa, which too are eyeing RMG as saviour of their respective economies. Bangladesh has been their role-model. So to compete against these countries, stay and grow in the business, we have a lot to do. The task is not easy but not impossible either (as we have lots of advantages) and to make it a success we all have to work in tandem, the government included.
To face and work around those challenges, the government has to control, facilitate and oversee RMG affairs more seriously and consistently. Following are our suggestions:
Apex bodies like the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) have to always improve on the way they solve issues and attend to the affairs keeping in mind that challenges are increasing. The target of reaching the export figure of 50 billion dollars by 2021 is not easy and this must not end in a failure as a mere tall talk. There are also other concerns for them to worry about. One of them is to grab business opportunities that may come out of China and compete against other interested parties in other South Asian countries. Beyond electioneering times also, they need to engage heavily with the member-factories and do the needful for raising awareness with regard to what are a must to do to become efficient manufacturers for now and years ahead. The top leaders need to listen to the predicaments and miseries what the manufacturers suffer from in daily lives individually. There is nothing more effective than updating the association with info worth learning for setting targets and actions thereupon.
It is time to make BGMEA-sponsored University of Fashion & Technology (BUFT) more industry-specific establishing direct dialogue with the factory management, reaching out and liaising with public and private universities to explore the possibilities how they can change the perception of the industry from a poor one to a better one, training the existing human resources and creating a pool of future resources.
Bangladesh University of Engineering and Technology (BUET) and other public engineering and technology universities, Dhaka University and private universities all can play a huge role. Some of these have textile departments, but what's about garment manufacturing departments? There are so much that can be done in cutting rooms to finishing floors of the RMG industry. Research needs to be done on better methods of sewing, designing work aids in the sewing room etc. The effort of production and industrial engineers from BUET and Shahjalal University of Science and Technology, Sylhet, including those from other similar universities, seem to be inadequate for the time.
The universities themselves can come forward and take up the industry as their test case for their contributions. Contributions can be made from so many sides. Some of them could be on improving energy efficiency and use of cleaner energy; saving dye and chemical in washing, dyeing and printing, use of steam and water, machine repair and maintenance keeping environment in view. Environment, pollution of the same, etc. have been the recent priorities for international buyers and our government. Creating awareness among owners/Chief Operating Officers (CEOs) about investing substantially in human resources and technology including viable automation in machinery and resource planning for better and more efficient output is the crying need of the time now.
Readymade garment industry has been the lifeline of our economy as the highest foreign exchange earner, job provider to uneducated and unskilled labour force, educated jobless youths and also university graduates from almost all disciplines. This industry also has facilitated growth and rapid flourishment of associated businesses, which include manufacturing of all kinds, laundries, printing businesses, embroidery business, and what not. Because of this industry the basic textile (yarn spinning, woven fabric weaving, knitting, dyeing etc.) industry also has gained momentum. Local consumer businesses also have got the taste of new vitality. Hospitality and tourism industry has been thriving because of this. Besides, many owners of RMG industry also have been reinvesting their profits in other non-textile sectors like pharmaceuticals, leather, agriculture, paper mills, hospitals, software, etc.
The positive and far-reaching impact of the RMG industry can hardly be over-exaggerated. Because of dearth of properly educated and trained mid-level managers we see that thousands of foreign nationals get jobs in the industry and billions of dollars are being remitted annually to their respective countries. This has been happening for years. According to one source, Indian nationals alone send more than $6.0 billion and then there are Sri Lankan, Chinese and the Philippines nationals, Pakistanis and also some Europeans. While our total exports from this sector are about 28 billion dollars, the estimated flight of such a huge amount of foreign exchange from the country is truly mind-boggling. With our readiness, we can stop this or at least reduce this figure to a great extent and the dollars thus saved would then remain with us helping our economy. Not only we can do it but also we can reverse this scenario. We should be able to send our garment and textile experts, laundry managers and printing technicians to go to other emerging markets in foreign countries and work there to remit their earnings home.
SOURCE: The Financial Express Bangladesh
The cotton market witnessed lacklustre conditions on Tuesday as most leading buyers remained preoccupied in clearing their accounts. The Karachi Cotton Association official spot rate remains unchanged at Rs 6250. While, in Sindh, seed cotton prices were at Rs 2600-3250 and in Punjab, phutti rates were at Rs 2800 and Rs 3500, as per 40 kg, according to dealers. Furthermore, spinners are currently focusing on cotton imports from India because the production report released by the ginners’ body has not shown encouraging figures and estimated to be around 10.08 million bales.
Leading manufacturers and exporters of textile goods are also preoccupied in Heimtextil, the biggest trade fair of textile goods, being organised in Frankfurt, Germany, from Jan 10 to 13. The world’s leading cotton markets remained steady, with Indian cotton getting impetus after the intervention of the Cotton Corporation of India for procuring around 1.5m bales. Cotton analyst, Naseem Usman said that the release of PCGA fortnightly report indicated cotton production at 10.366 million bales, showing an increase by 11.72 percent against the last year.
Local prices may depict firmness in line with the international market. Despite a rise in arrivals figure, the ginners preferred to stay away so they could get higher rates for their unsold cotton stock, other experts said. However, a very little unpicked cotton stock has been left in the field, whereas the country has to import nearly four million bales to fulfil it's requirements. The following major deals were reported to have finalized on the ready counter: 800 bales from Duniyapur at Rs 6325 and 2000 bales from Sadiqabad at Rs 6500, dealers said. While in the ready session, around 3,000 bales of cotton changed hands between Rs 6325-6500.
SOURCE: Yarns&Fibers
The use of facial recognition software for commercial purposes is becoming more common, but, as Amazon scans faces in its physical shop and Facebook searches photos of users to add tags to, those concerned about their privacy are fighting back. Berlin-based artist and technologist Adam Harvey aims to overwhelm and confuse these systems by presenting them with thousands of false hits so they can’t tell which faces are real. The Hyperface project involves printing patterns on to clothing or textiles, which then appear to have eyes, mouths and other features that a computer can interpret as a face. This is not the first time Harvey has tried to confuse facial recognition software. During a previous project, CV Dazzle, he attempted to create an aesthetic of makeup and hairstyling that would cause machines to be unable to detect a face.
Speaking at the Chaos Communications Congress hacking conference in Hamburg, Harvey said: “As I’ve looked at in an earlier project, you can change the way you appear, but, in camouflage you can think of the figure and the ground relationship. There’s also an opportunity to modify the ‘ground’, the things that appear next to you, around you, and that can also modify the computer vision confidence score.” Harvey’s Hyperface project aims to do just that, he says, “overloading an algorithm with what it wants, oversaturating an area with faces to divert the gaze of the computer vision algorithm.” The resultant patterns, which Harvey created in conjunction with international interaction studio Hyphen-Labs, can be worn or used to blanket an area. “It can be used to modify the environment around you, whether it’s someone next to you, whether you’re wearing it, maybe around your head or in a new way.”
Explaining his hopes for how technologies like his would affect the world, Harvey showed an image of a street scene from the 1910s, pointing out that every figure in it is wearing a hat. “In 100 years from now, we’re going to have a similar transformation of fashion and the way that we appear. What will that look like? Hopefully it will look like something that appears to optimise our personal privacy.”
To emphasise the extent to which facial recognition technology changes expectations of privacy, Harvey collated 47 different data points commercial and academic researchers claim to be able to discover from a 100x100 pixel facial image – around 2.5% of the size of a typical Instagram photo. Those include traits such as “calm” or “kind”, criminal tendencies like “paedophile” or “white collar offender”, and simple demographics like “age” and “gender”.
Research from Shanghai Jiao Tong University, for instance, claims to be able to predict criminality from lip curvature, eye inner corner distance and the so-called nose-mouth angle. “A lot of other researchers are looking at how to take that very small data and turn it into insights that can be used for marketing,” Harvey said. “What all this reminds me of is Francis Galton and eugenics. The real criminal, in these cases, are people who are perpetrating this idea, not the people who are being looked at.” Harvey and Hyphen-Labs plan to reveal details on the Hyperface project this month, as part of Hyphen-Labs’ new work NeuroSpeculative AfroFeminism.
SOURCE: The Guardian
World cotton production in 2016-17 is projected to rise by 8 per cent to 22.8 million tons, which may put pressure on cotton prices in the latter half of the ongoing 2016-17 season. World ending stocks may fall by 7 per cent to 18 million tons in 2016-17, though stocks outside of China are expected to grow by 6 per cent to 8.7 million tons. The current season started with a large shrinkage in stocks, particularly from countries in the Southern Hemisphere, which saw ending stocks in 2015-16 fall by 21 per cent to 1.6 million tons, the lowest since 2009-10. The shortage in supply has carried through the first few months of the 2016-17 season, as the bulk of the crop was still being harvested, keeping prices firm, the International Cotton Advisory Committee (ICAC) Secretariat said in its latest forecast for the season.
The Secretariat forecasts that the season-average Cotlook A Index in 2016-17 will range between 66 and 83 cts/lb, with a midpoint of 74 cts/lb, which would be 4 cts/lb higher than last season. With the exception of China, ICAC projects higher cotton production in the top five producing countries. India’s cotton production is forecast to increase by 4 per cent to just under 6 million tons, making it the world’s largest producer. Despite declining by 4 per cent to 4.6 million tons, China would be the second largest producer in 2016-17. Production in the US could rise by 28 per cent to 3.6 million tons while production in Pakistan recovers by 20 per cent to 1.8 million tons as efforts to prevent the re-emergence of pink bollworm have been effective.
In the Southern Hemisphere, primarily Brazil and Australia, cotton production is expected to rise by 21 per cent to 2.8 million tons, which could put pressure on prices through the end of 2016-17 to the start of the next season as both countries are also large exporters. Production in Brazil, the world’s fifth largest producer and largest in the Southern Hemisphere, is forecast to increase by 10 per cent to 1.4 million tons. Production in Australia could grow by 64 per cent to 1 million tons due to expanded plantings as farmers were encouraged by high prices and better water availability.
Meanwhile, world cotton consumption is likely to remain stable at 24.1 million tons. While prices for polyester, the main competing fibre, have risen in recent weeks, they still remain well below international cotton prices, making it unlikely that cotton mill use will expand this season unless polyester prices continue to rise. China’s consumption is expected to remain stable at 7.4 million tons, making it the largest consumer. However, mill use in India is projected to decline by 1 per cent to 5.2 million tons while mill use in Pakistan is likely to remain stable at 2.3 million tons. Ongoing uncertainty in Turkey and competition from lower-priced cotton yarn imports could lead to a 3 per cent decline in mill use to 1.45 million tons. However, cotton consumption is forecast to grow by 5 per cent to 1.3 million tons in Bangladesh and 13 per cent to 1.1 million tons in Vietnam.
In cotton trade, Bangladesh is forecast to increase its imports by 1 per cent to 1.4 million tons, making it the largest importer in 2016-17 and Vietnam’s imports are projected to rise by 19 per cent to just under 1.2 million tons.
SOURCE: Fibre2fashion
Last year, the Remscheid-based systems manufacturer Oerlikon Barmag secured an above-average number of industrial yarns projects and the general trend was once again confirmed within the context of the ITMA Asia + CITME in October 2016, the company reports. “This shows the sustainable success of the comprehensive range of innovative process solutions offered for the entire industrial yarns product program. With its global network, Oerlikon Barmag is positioning itself as a leading partner and a solutions provider of efficient ‘from-melt-to-yarn’ production processes,” Oerlikon Barmag said in a statement.
Last year, the Remscheid-based systems manufacturer Oerlikon Barmag secured an above-average number of industrial yarns projects and the general trend was once again confirmed within the context of the ITMA Asia + CITME in October 2016, the company reports. The new systems that will be commissioned over this year are primarily focused on the Asian region; however, manufacturing industrial yarns is also interesting for producers in Europe due to the comparably high margins and specialized areas of application. “We are experiencing huge demand for industrial yarn systems. Customers are asking for products that offer an interesting margin, such as specialties and industrial yarns, for example”, comments Oliver Lemke, Regional Sales Director at Oerlikon Barmag.
Stefan Becker, Senior Expert Research and Development, adds: “What has, for example, been very well received by our customers is that our current machine concepts for industrial fine-titer nylon yarns allow us to offer configurations that are specifically tailored to the product requirements of the end application of these yarns, such as tents, tarpaulins, parachutes, etc. Here, the focus of the machine design is both on the product quality of the yarns in typical titer ranges of between 20 and 70 den and on production efficiency and, above all, on the optimization of the conversion costs.” “The vast majority of the additional output of polyester and polyamide yarns will be deployed in the automotive sector (airbags, safety belts, tire cord). A further application area focuses on the broad spectrum of geotextiles and products for textile construction. And the continuing trend towards polyester yarns as a substitute for polyamide – prevalent among many product categories such as airbags, for example – is being confirmed by our projects.” This is above all due to the constantly improving properties of polyester with simultaneously considerably lower raw material costs. Despite all this, the market for industrial yarns continues to diversify and develop very much in line with the specific end applications.
Here, the rising demand for so-called high-performance tyres is resulting in both increased demand for PET HMLS yarns and in the greater output of PA66 yarns for use in cap ply. Oerlikon Barmag offers flexible and product quality-oriented machine concepts that efficiently cover these requirements with excellent conversion costs for all product categories. To this end, systems for manufacturing yarns for PET and PA airbags, tyres and safety belts are successfully operating in the automotive sector, while there are also systems being used for textile applications such as upholstery and carpets. With this, the yarn production for all automotive sector applications can be covered by Oerlikon Barmag solutions.
SOURCE: The Innovation in Textiles
In the future, your clothes will work for you. A team of scientists led out of the Georgia Institute of Technology has created a fabric that can gather energy from both sunlight and motion, then store it in embedded fibres. The textile, described in Science Advances, could help pave the way for energy-harvesting clothes and new wearable devices. Scientists and engineers have been working for years on creating fabrics that, if worn, could harvest energy for the wearer, said senior author Zhong Lin Wang, a nanotechnologist at Georgia Tech. “The objective was to harvest energy from our living environment, for example, human walking or muscle movement and fabric; the goal is to drive small electronics,” he said. “And this research recently attracted a lot of attention because these days, flexible electronics, wearable electronics, have become very popular and fashionable today. But each of them needs a power source.” It’s not an easy task to make devices that can be flexible enough to create a material that can actually be sewn into shirts, jackets or other garments. Wang’s team, for one, has been working on various aspects of this early-stage technology for 11 years.
On top of that, any energy would have to be stored in some way that didn’t involve carrying around a bulky battery. Wang and his team solved these issues by creating a triple-threat (or perhaps, a triple-thread) fabric: It uses dye-sensitised solar cells shaped into long fibres to harvest light energy; it uses fibre-shaped triboelectric nanogenerators to harvest electrostatic charge made by normal movement; and it also uses fibre-shaped supercapacitors to store the energy in electrochemical form.
Under sunlight, the solar cells provide the majority of the power; but indoors or on a cloudy day, the movement-based fibres pick up the slack, Wang said. (He was quick to add that you don’t need to flap your arms or do anything dramatic; the fibres will gather energy from small, normal movements.) “Our idea is to try to use whatever is available, whenever it’s available,” he said.
Currently, the researchers have a roughly 225-square-centimetre (or 35-square-inch) patch of the energy-harvesting fabric; it seems to be roughly as flexible as woven straw. The scientists hope to get it down to the flexibility of common cloth. The key to that, Wang said, is making the fibres even thinner: Currently they stretch from 15 to 20 centimetres long and about 2 millimetres wide. Once they reach about half a millimetre in width, they will be much more pliant, he added. But that’s if you were to make a device entirely out of these fibres; theoretically, a few of these fibres could also be woven into any kind of textile, such as cotton, and offer some energy-harvesting benefits without sacrificing softness and flexibility, Wang said.
While the technology could allow users to charge phones and wearable devices, it could also make interactive garments (a gown with LED lights, for example) more feasible for fashion designers. The research could also prove useful for building flexible screens, designing heart and other health monitors, and may even find applications in robotics. Before the technology gets there, however, Wang ticked off the items on his to-do list. “There’s a lot of things to do: No. 1 is to get the fibre thinner, so more flexible,” he said. “No. 2 is to improve the durability or robustness, so they can last longer. And third is, we have to work on continuing to improve the performance. The more power, the better.”
SOURCE: The Gulf Times
After the successful response of the Single Country Exhibition of Pakistan held at Colombo, Sri Lanka in 2016, the Sri Lanka–Pakistan Business Council of the Ceylon Chamber of Commerce has already initiated promoting the Business Matchmaking Session amongst the members of the council with a view to assist the members to establish potential business partnerships with business conglomerates attending the exhibition from Pakistan.
The Lanka–Pakistan Business Council of the Ceylon Chamber of Commerce will be partnering with the High Commission of Pakistan in Sri Lanka, Trade Development Authority of Pakistan (TDAP) and Sri Lanka Export Development Board to organize the Business Matchmaking Session at the Single Country Exhibition of Pakistan to be held from January 13 to 15, 2017, at the BMICH, Colombo.
The Sri Lanka–Pakistan Business Council will help the organizer of the exhibition to promote the event among its membership and to organize B2B meetings between Sri Lankan and Pakistani businessmen. More than 150 Pakistani companies are looking at local partners to expand their business in Sri Lanka. Hence, preregistration is required to attend the business-to-business (B2B) meetings. The exhibition will display an array of products such as textile and clothing, designer wear, handicrafts, traditional textiles, gems and jewellery, engineering products, auto parts, agro foods including promotion of various services where strong partnerships could be established to further strengthen trade between the two countries.
SOURCE: Yarns&Fibers
Asian propylene markers jumped US$48-54 a ton CFR China and FOB Korea in the second week of December. Propylene prices continued to surge day on day throughout the week as downstream PP makers strengthened further while port congestion in China hated to ease. Asian markers gained 6% on the week having gained more than US$70 in just two weeks. In US, December propylene discussions were ongoing expecting drop, with sellers and buyers still wide apart on the amount that monthly pricing should fall. Chemical grade propylene spot inched up US cents 1.50 per pound FD USG on the week. European propylene prices surged in cues from Asian and US. Spot chemical grade propylene prices surged Euro50 a ton FD NWE on the week. December propylene contract price was down Euro30 a ton on the month.
SOURCE: Yarns&Fibers
Mexican industrial conglomerate Alpek SAB de CV signs agreement with Petróleo Brasileiro S.A. (Petrobras) for the acquisition of its 100% stake in Companhia Petroquímica de Pernambuco and Companhia Integrada Têxtil de Pernambuco, the plant making PET resin and PTA feedstock in Brazil. Petroquimica Suape and Citepe are wholly owned subsidiaries and are part of the Chemical and Textile Industrial Complex located in Ipojuca, in the state of Pernambuco, Brazil. Together, these companies encompass three integrated plants: the one producing PTA (purified terephthalic acid), the polyester filament one, and the PET (polyethylene terephthalate) resin plant.
The facility operates with an installed capacity of 700,000 tpy and 450,000 tpy PTA and PET, respectively. Additionally, Citepe operates a 90,000 tpy texturized polyester filament plant on site. The closing of this transaction is subject to several condition precedents, including approval by the appropriate governmental authorities. The agreed upon price for Petrobras’ 100% stake in Petroquimica Suape and Citepe is $385 million. This amount is payable in Reais at the closing date and is subject to adjustments in working capital and current debt, among others.
SOURCE: Yarns&Fibers
Durst, manufacturer of advanced digital production technologies, is set to show its extensive Alpha Series portfolio with multi-pass inkjet printing systems for the digital production of home textiles and fashion at Heimtextil 2017, trade fair for home and contract textiles, to be held in Frankfurt, Germany from January 10 to 13, 2017, in hall 6, stand C16. Depending on what they are used for, Alpha printing systems offer printing widths from 190 to 330 centimetres and can be configured with up to 8 colours and 64 Alpha-S printheads. With a native resolution of 600 dpi and printing speeds of up to 620 lm/h, they boast 24/7 industrial-scale production capacities, and can be used directly and with tremendous flexibility.
The various samples and applications produced by Probo and on display at the trade fair stand will show visitors exactly what these systems can do. The Alpha Series comes with the Greentex pigment ink developed by Durst that require no pre- or post-treatment when used with standard materials such as cotton or polyester. This makes the production processes much shorter and considerably more cost-effective regardless of the size of the print run. The Durst textile printing team at the trade fair stand will provide information about these and other options for the Alpha Series such as intelligent feeder systems that adapt automatically to the various textile materials and roll circumferences, and will also help arrange individual appointments.
SOURCE: Fibre2fashion
Danish fashion retailer Bestseller Fashion Group (China) has chosen 7thonline’s modern allocation system to improve inventory productivity for its extensive store network. The system offers recognised demand-driven approach to merchandise management, robust proprietary algorithms tailor-made for the fashion industry and personalised support and services. Bestseller selected the system to streamline the process of inventory management and bring more science and accuracy to its operations. With the successful system go-live, the company can move away from manual processes and leverage advanced sales forecasting and algorithms to scientifically distribute products by colour and size based on each store’s propensity to sell. “Working with 7thonline now enables us to move away from a regional allocation approach to a corporate-wide allocation strategy with the flexibility to tailor assortments based on consumer needs. This allows us to create a consistent brand message to our customer while still maintaining a level of localisation,” said Ming Liu, director of strategy and project management of bestseller (China). “Economies of scale are also evident as system logic determines where, when and more importantly, how much should be moved between locations,” added Liu.
“We are delighted to be partnering with a leading company like Bestseller in the world’s largest retail market. The successful go-live of the Allocation solution is a result of great collaboration, and we look forward to driving best practices together to both enhance our product offerings and strengthen Bestseller’s leadership position in China,” said Benjamin Lentini, vice president of planning solutions at 7thonline.
7thonline is a leading provider of cross-channel demand planning and execution solutions to the Apparel, Footwear and Accessories (AFA) industries. Bestseller, headquartered in Beijing, operates close to 7000 stores in more than 300 cities in mainland China under four key brand names for men and women - ONLY, Jack & Jones, Vero Moda, and Selected. With roots in Denmark, Bestseller is one of the largest fashion apparel retailers in China.
SOURCE: Fibre2fashion
Garment 10 Corporation JSC (Garco 10), one of the largest companies in Vietnam’s textile and garment sector, has grossed total estimated revenue of 2.9 trillion dong in 2016, registering an increase of 6.42 per cent year-on-year, and crossing its annual target by 2 per cent. The company is targeting to increase its revenue by 6 per cent this year over 2016. In 2016, Garco 10 contributed around 59 billion dong to the nation’s budget. This amount was 24 per cent higher than the amount paid in the previous year, according to Vietnamese media reports. This year, the company is aiming to earn revenue of 3.1 trillion dong, and thereby make a profit of 62.5 billion dong. For this, the company will take initiatives to adopt austerity measures, prioritise product quality, improve labour productivity and enhance corporate governance. Employing over 9,000 persons, Garco 10 produces around 21 million pieces annually, of which more than 80 per cent are exported, mainly to the US, the EU, Japan and Hong Kong.
SOURCE: Fibre2fashion
The spring edition of Yarn Expo 2017 to take place from March 15-17 in hall 5.1 of the National Exhibition and Convention Center (Shanghai), with its scale expected to jump by 20 percent, occupying 18,000 square meters (m2) (2016: 15,000 m2), to accommodate the increase in exhibitor participation. With Yarn Expo having increased in stature in the global yarn and fibre market over the recent years at its 2017 edition to feature more exhibitors. Nearly 360 exhibitors will bring together some of the world’s highest quality yarn and fiber products, such as natural and blended yarns including cotton, wool, flax/regenerated flax, silk, and man-made fibers and yarns, as well as specialty products including elastic, and fancy and blended yarns.
After the debut edition last spring, the Fancy Yarn Zone has quickly become one of the most popular product areas in Yarn Expo. Due to the rapidly growing use of fancy yarns, this zone’s exhibitor number is expected to double this year, hosting around 40 companies showcasing their latest collections of creative fancy yarns. Alongside the Fancy Yarn Zone are four returning display zones — Colourful Chemical Fibre Zone, Natural Cotton Zone, Quality Wool Zone and Green Linen Zone — where over 210 domestic exhibitors will exhibit a wide range of innovative fibres and yarns, such as nylon, viscose filament and renewable, recycled fibres and many more.
Last but not least, a trend area and a series of seminars will also take place during the three day fair to equip the industry with inspirational trend directions and the most up-to-date market information. The fair is organized by Messe Frankfurt (HK) Ltd; The Sub-Council of Textile Industry, CCPIT; China Cotton Textile Association; China Wool Textile Association; China Chemical Fiber Association; China Bast & Leaf Fibres Textiles Association; and China Textile Information Centre.
In 2016, Yarn Expo Spring attracted 20,527 buyers from 77 countries and regions, creating an unrivalled platform for exhibitors to reach all kinds of buyers from around the world. To take advantage of this diverse buyer profile, a number of international suppliers have already confirmed their participation this year. Yarn Expo engages a broad range of buyers, and it’s an ideal stage for them to introduce the company and products to theirr target buyers as well as to establish solid business relationships with them, said Peter Dong, senior manager of Birla Jingwei Fibres Co Ltd (Aditya Birla Group). After the rewarding results in the last autumn fair, Birla Planet will return to present a series of Birla Spunshades, Birla Micro-Viscose and Birla Micro Modal products.
Furthermore, the Cotton Textile Export Promotion Council (TEXPROCIL) will once again organize the India Pavilion to feature India’s top cotton yarn and fibre suppliers. Ravindranathan Narayanasamy, Director of TEXPROCIL also shared his appreciation of the fair said that the Yarn Expo is an important meeting point for Indian suppliers and importers from all over the world. The fair is helping Indian suppliers meet with new customers from different parts of Mainland China and outside too such as Korea, Japan, Hong Kong, Taiwan, Europe, the US and elsewhere. Besides the India Pavilion, the returning Pakistan Zone as well as exhibitors from Uzbekistan and Vietnam will also showcase competitive cotton yarns, elastic yarns and eco products to diversify the sourcing options for buyers.
Meanwhile, exhibitors from Indonesia, Korea, Singapore, Slovakia and Thailand will bring a wide range of high quality synthetic, knitting and metallic yarns to cater to the rapidly growing demand for these products in the global market. Together with Yarn Expo Spring 2017, four other textile trade fairs are held concurrently from March 15-17 in the same venue: Intertextile Shanghai Apparel Fabrics – Spring Edition, Intertextile Shanghai Home Textiles – Spring Edition, PH Value and the China International Fashion Fair (CHIC).
SOURCE: Yarns&Fibers
New research into the Syrian cotton sector suggests there is just a low risk of cotton associated with the Islamic State entering the supply chains of European manufacturers and, consequently, Western brands. The research was carried out by risk analytics company Verisk Maplecroft, which says the Islamic State controlled three-quarters of the land conventionally reserved for Syria's cotton production in 2015. Prior to the outbreak of the war in 2011, Syria exported 600,000 tonnes of cotton per annum – a figure which dropped to 3,000 in 2015 according to industry figures.
Anthony Skinner, director with Verisk Maplecroft said: "[Western textile manufacturers] have, to varying degrees, been concerned that cotton taxed by Islamic State would enter their supply chains after crossing the border into Turkey. That country is the European Union's second biggest supplier of fabric and third biggest supplier of clothing. "The risk that European textile manufacturers and fashion designers will be linked to Islamic State is low, however. This is not just because of internal quality control mechanisms and certification requirements of reputable textile and fashion producers. It is also because of the dynamics of the Syrian conflict. Many Syrian cotton producers have been displaced, had their land destroyed or shifted to food crops after five years of war. "Although still controlling large swathes of Syria and Iraq, Islamic State is on the defensive. Its ability to administer agricultural land will decrease as it is forced to give up more territory over the coming months. It may still manage to extort taxes on surviving cotton producers as a guerrilla force, but not in the same way as effective local administrators. "The low risk of Syrian cotton entering supply chains also derives from the fact that the overwhelming majority of locally produced cotton now stays in the country. Sources in Syria say that raw cotton produced in territory held by Islamic State is sold to intermediaries who sell it to processing centres controlled by the regime of Syrian president Bashar al-Assad. "There are nonetheless reports of Syrian cotton being smuggled into Turkey where wholesalers are tempted by the low prices on offer. But Turkish border guards typically do not allow Syrian cotton to enter the country. This makes it extremely difficult for Islamic State-tarnished cotton to slip into Turkey's textiles manufacturing sector for onward shipment to Europe."
Maplecroft also claims that the future of Syrian textile sector as bleak as that of war-torn country. Skinner added: "It could also be many years, if not longer, before Syrian cotton production recovers and cotton exports take off. Syria shows no signs of peace or political normalisation as warring factions remain locked in an intractable struggle sustained by regional players – in particular Iran, Russia and Turkey. "Even in the extremely unlikely event that peace returns to Syria over the next 24 months and the cotton sector rejuvenates, Western textile producers looking to import Syrian produce will have to contend with a range of challenges."
SOURCE: The EcoTextile
The Manufacturing Purchasing Managers’ Index (PMI) stood at 52 index points in December 2016, indicating expansion in the manufacturing sector during the review period. The index had recorded decline in the preceding 11 months. The report showed that production level, new orders, and raw material inventories expanded from contraction; employment level declined slower; but supplier delivery time worsened from improving December 2016. The report posted on the Central Bank of Nigeria’s (CBN) website showed that eight of the 16 sub-sectors surveyed recorded expansion in the review month in the following order: cement; food, beverage & tobacco products; textile, apparel, leather & footwear; plastics & rubber products; paper products; appliances & components; chemical & pharmaceutical products; and furniture & related products.
The fabricated metal products sub-sector remained unchanged, while the remaining seven sub-sectors declined in the order: computer and electronic products; electrical equipment; primary metal; transportation equipment; petroleum and coal products; printing and related support activities; and nonmetallic mineral products. Also, at 57.6 index points, the production level index for manufacturing sector indicated the sector expanded in the review period, compared to the decline recorded in the preceding eleven months. Five manufacturing sub-sectors recorded growth in production level during the review month in the following order: cement; food, beverage and tobacco products; electrical equipment; plastics and rubber products; and textile, apparel, leather and footwear.
Furthermore, the appliances and components sub-sector remained unchanged, while the remaining 10 sub-sectors declined in the review period in the order: primary metal; petroleum and coal products; computer and electronic products; transportation equipment; furniture and related products; fabricated metal products; non-metallic mineral products; paper products; chemical and pharmaceutical products; and printing and related support activities.
At 51.8 points, the new orders index showed expansion in new orders after eleven months of contraction. It stood at 45.1 in November 2016. The five sub-sectors that recorded expansion in new orders were: cement; food, beverage & tobacco products; textile, apparel, leather and footwear; paper products; and fabricated metal products. The plastics and rubber products sub-sector remained unchanged, while the remaining ten sub-sectors declined in the order: primary metal; electrical equipment; transportation equipment; appliances & components; petroleum & coal products; printing & related support activities; computer & electronic products; nonmetallic mineral products; furniture & related products; and chemical & pharmaceutical products.
In addition, the report showed that at 47.9 index points, the supplier delivery time for manufacturing sub-sectors contracted in the month of December 2016, after nine consecutive periods of expansion. Nine sub-sectors recorded worsening suppliers’ delivery time in the following order: transportation equipment; food, beverage & tobacco products; cement; textile, apparel, leather & footwear; paper products; printing & related support activities; chemical & pharmaceutical products; plastics & rubber products; and nonmetallic mineral products. The computer & electronic products and electrical equipment sub-sectors remained unchanged, while the appliances & components; primary metal; furniture & related products; petroleum & coal products; and fabricated metal products sub- sectors recorded improving delivery time in December. “Employment level index in the month of December 2016 stood at 48.6 points, indicating declines in employment level for the 22 consecutive month. However, the index shows a slowing contraction in manufacturing employment when compared with the level in the preceding month. “Of the 16 sub-sectors, nine recorded contraction in employment in the following order: computer & electronic products; electrical equipment; appliances & components; printing & related support activities; furniture & related products; chemical & pharmaceutical products; primary metal; fabricated metal products; and nonmetallic mineral products,” it added.
SOURCE: The Nigeria Today
Oil prices ticked higher on Wednesday on expectations that US crude inventories are falling and signs that oil producers will stick to agreed output cuts that took effect this week. Global benchmark Brent crude futures were up 10 cents at $55.57 a barrel by 1110 GMT. The contract reached an 18-month high in the previous session, but a strong dollar has shaved off most of those gains. US West Texas Intermediate crude futures were trading at $52.42 per barrel, up 9 cents. "Positive equities and gains in industrial metals this morning, as well as expectations that US crude oil stocks will show a decline ... are ingredients helping to drive a slight gain in Brent crude," said Bjarne Schieldrop, chief commodities analyst at SEB Markets in Oslo.
Weekly US statistics on oil stocks are expected to show a 1.7-million-barrel draw on Thursday, analysts polled by Reuters said. Opec member Kuwait also lifted expectations that producers will comply with a deal to reduce oversupply after its state-owned oil producer said on Wednesday it would cut output in the first quarter. Members of the Organization of the Petroleum Exporting Countries in November agreed their first output cut since 2008 in an attempt to stabilise oil prices. As part of the deal, Kuwait has to reduce output by 131,000 barrels per day.
An Opec committee meeting to monitor compliance with the agreement is scheduled for Jan. 21-22 in Vienna. "Prices are likely to remain volatile until there is evidence that quotas are being adhered to," analysts at Cenkos Securities wrote. Also reflecting a tightening market, traders expect top oil exporter Saudi Arabia to raise the official selling price for its crude to Asia in February.
SOURCE: The Economic Times
Businesses across the euro zone ended 2016 by ramping up activity at the fastest pace for five-and-a-half years, a survey showed on Wednesday, as a weaker currency boosted demand for their goods and services in December. The expansion, which came alongside companies raising prices at the steepest rate since mid-2011, will be welcomed by policymakers at the European Central Bank, who for years have struggled to lift growth and inflation.
IHS Markit's final composite Purchasing Managers' Index for the euro zone rose to 54.4 in December from November's 53.9. That beat a 53.9 flash estimate and took the index to its highest since May 2011. The index has been above the 50 mark that divides growth from contraction since mid-2013 and was in November. "Manufacturers and, to a lesser extent, service sector companies are benefiting from the weaker euro, which is both boosting goods exports and encouraging demand for services exports such as tourism," said Chris Williamson, chief business economist at IHS Markit.
Williamson said the data point to fourth-quarter economic growth of 0.4 percent, in line with the prediction in a Reuters poll last month. A sub-index measuring output prices leapt to 51.7 from 50.6, its highest since July 2011. An official preliminary estimate due at 1000 GMT is expected to show inflation rose to 1 percent in the bloc last month, still a long way from the ECB's 2 percent target ceiling. The PMI for the dominant services industry dipped to 53.7 from November's 53.8, but was well above the flash 53.1. Manufacturers enjoyed their best month in more than five years in December, a sister survey showed on Monday.
Suggesting companies will start this year on a solid footing, a December sub-index measuring new business in the service industry matched November's 10-month high of 53.5. "Euro zone service providers linked higher levels of business activity to a combination of solid inflows of new orders and rising backlogs of work," IHS Markit said.
SOURCE: The Economic Times
Mexico is being blamed by President-elect Donald Trump for taking jobs from the US. He's been putting pressure on US companies not to move jobs south, and this week Ford announced it was investing in its factory in Michigan rather than building a new plant in Mexico. During his election campaign, Mr Trump threatened to rip up Nafta, the free trade agreement between Canada, the US and Mexico, which has been in place for 23 years. But what impact has Nafta had in Mexico, and what would its potential demise mean for the country?
In a leafy square in Mexico City on a warm December evening a group of excited children are hitting a brightly coloured pinata stuffed with sweets. A fellow passer-by explains to me that pinatas are a Mexican tradition, particularly at Christmas and birthdays. However, Mexicans also like pinatas "in the shape of everything we want to hit", he says. "The latest trend is Donald Trump pinatas," he adds. Mr Trump is not popular in Mexico. He was incredibly rude about Mexicans during his election campaign, and at a time when the world seems to be turning away from free trade he threatened to end the North American Free Trade Agreement (Nafta) between the US, Mexico and Canada.
The important thing about Nafta is that companies importing and exporting between the three countries pay no tariffs. Mr Trump believes it's been bad for the US as cheaper Mexican labour has meant some US manufacturers have moved production across the border, resulting in job losses at home. Nafta was implemented in 1994 and over the past 23 years Mexico has grown as a manufacturing hub. Today the United States and Mexico trade over $500bn (£400bn) in goods and services a year, equal to about $1.5bn a day. Mexico is the US's second-biggest export market, and the US is Mexico's largest.
Red Sun Farms, a large vegetable-growing firm in central Mexico, depends on the free trade agreement. Its managing director, Thierry Legros, shows me into a vast greenhouse, 200m long, with row upon row of tomato plants. The company also grows peppers and exports 90% of its crop to the US and Canada. So what would it mean if Mr Trump repealed the Nafta agreement completely with its tariff-free trading? "We might need to close the whole company," Thierry tells me. "It would be around 3,000 direct jobs, so with all the indirect that's quite a lot, probably double that." Outside Thierry's office three flags flutter in the wind - one for each Nafta country.
The three Nafta flags at Red Sun Farms reflect the company's integration within the free trade area Red Sun Farms even owns a farm in the US and sends Mexican workers over there. However, there's a stark wage differential, with pay significantly higher in the US. "Right now with the exchange rate that's huge," Thierry explains, "it's about one to eight, one to 10." These Red Sun Farms workers in Mexico earn far less than their counterparts in the US As well as enabling Mexico to export freely, Nafta also opened the door to US imports, giving Mexican consumers much greater choice. "It was an achievement, it was against history," says economic consultant Luis de la Calle, who was one of the negotiators of the free trade agreement. "Most Mexicans thought that it was impossible or not convenient to have a strategic association with the US, and many people in the US never thought that Mexico could be their partner."
Increased demand, as a result of free trade, forced Mexican manufacturers to improve quality. Luis de la Calle says that before Nafta Mexico had three producers of TV sets, and the quality was "awful". But today, Mexico is "the largest manufacturer of TV sets in the world". They are exported and are "high quality, completely different from the protected market we had before".
Mexico is now a centre of manufacturing for overseas companies, such as the motor industry. General Motors and Ford both have factories in Mexico as well as the US. But Donald Trump has put public pressure on US companies not to move production, and has threatened to impose import duties on cars coming in from Mexico. It's a sensitive subject and the American carmakers refused to be interviewed.
SOURCE: The BBC
