INTERNATIONAL
Textile Raw Material Price 2017-01-05
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1205.25 |
USD/Ton |
0% |
1/5/2017 |
|
VSF |
2381.71 |
USD/Ton |
0% |
1/5/2017 |
|
ASF |
1914.00 |
USD/Ton |
0% |
1/5/2017 |
|
Polyester POY |
1252.02 |
USD/Ton |
0% |
1/5/2017 |
|
Nylon FDY |
3180.41 |
USD/Ton |
0% |
1/5/2017 |
|
40D Spandex |
4461.21 |
USD/Ton |
0% |
1/5/2017 |
|
Polyester DTY |
1626.18 |
USD/Ton |
0% |
1/5/2017 |
|
Nylon POY |
3396.28 |
USD/Ton |
0% |
1/5/2017 |
|
Acrylic Top 3D |
5459.95 |
USD/Ton |
0% |
1/5/2017 |
|
Polyester FDY |
1496.66 |
USD/Ton |
0% |
1/5/2017 |
|
Nylon DTY |
2978.94 |
USD/Ton |
0% |
1/5/2017 |
|
Viscose Long Filament |
2086.70 |
USD/Ton |
0% |
1/5/2017 |
|
30S Spun Rayon Yarn |
3036.50 |
USD/Ton |
0% |
1/5/2017 |
|
32S Polyester Yarn |
1827.66 |
USD/Ton |
0% |
1/5/2017 |
|
45S T/C Yarn |
2647.94 |
USD/Ton |
0% |
1/5/2017 |
|
40S Rayon Yarn |
1971.57 |
USD/Ton |
0% |
1/5/2017 |
|
T/R Yarn 65/35 32S |
2216.21 |
USD/Ton |
0% |
1/5/2017 |
|
45S Polyester Yarn |
3166.02 |
USD/Ton |
0% |
1/5/2017 |
|
T/C Yarn 65/35 32S |
2273.78 |
USD/Ton |
0% |
1/5/2017 |
|
10S Denim Fabric |
1.32 |
USD/Meter |
0% |
1/5/2017 |
|
32S Twill Fabric |
0.81 |
USD/Meter |
0% |
1/5/2017 |
|
40S Combed Poplin |
1.15 |
USD/Meter |
0% |
1/5/2017 |
|
30S Rayon Fabric |
0.66 |
USD/Meter |
0% |
1/5/2017 |
|
45S T/C Fabric |
0.65 |
USD/Meter |
0% |
1/5/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14391 USD dtd. 5/1/2017)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Textile mills are pinning their hopes on the fourth quarter to ride over the third quarter impact of demonetisation. For this, industry is banking on the textile ministry's move to allow mills to pay only 10 per cent of procurement money that has come as a breather. According to industry, the move could ease production cost in the last quarter of the fiscal for textile mills. Add to that, the industry hopes orders for summer season of 2017 could also boost the fourth quarter results. "We are hoping that the fourth quarter will be not as bad as the third quarter. We are yet to see an immediate impact of the recent move but we are also focusing more on exports which could help us boost the fourth quarter results. However, we are definitely sure that business would pick up in the first quarter of next financial year," said Paritosh Aggarwal, managing director, Suryalakshmi Cotton Mills Limited.
Traditionally, while large traders and multinational cotton traders take advantage of hedging facility and cheaper funds, mills are unable to build adequate inventory and have been paying higher price for the cotton during the off season. More than 75 per cent of the cotton arrives the market during December to March and around Rs 60,000 crore is required to procure the seed cotton during this period. Since the ginning and spinning mills do not have such funds, the farmers invariably get lower price.
As a result, the cotton textile industry had been demanding the government to ensure cotton fibre security and stability in cotton prices so that both the farmers and the industry get benefited and remain competitive in the global market. Now, with the new union textile minister directing Cotton Corporation of India that normally procures cotton only when the prices crash below the minimum support price level to procure cotton on a commercial basis and supply to the mills, the textile industry has welcomed the move.
The new terms and conditions of fully pressed bales of CCI facilitates the registered MSME textile units to procure cotton by paying only 10 per cent deposit money as against 20 per cent which is applicable only for the sale quantity of 30,000 bales and above. The deposit money up to 2999 bales is only 15 per cent. This would greatly help the MSME units which are starving for working capital fund in the post-demonetisation regime," said M Senthilkumar, Chairman, The Southern India Mills' Association (SIMA).
Senthilkumar further stated that earlier there was a difference in the free period ranging from 30 to 75 days and 75 days free period was available for the procurement of 15000 bales and above, which led to MSME textile units' inability to derive much benefit out of CCI. "However, now the free period has been made uniform and fixed at 45 days which would again help the actual users and the MSME units," he further stated.
According to the textile industry body, CCI might procure around 1.5 million bales and maintain an inventory of 500,000 bales so that stability in cotton price is maintained. Meanwhile, the textile has also been requesting CCI to opt for coastal movement of bales between Gujarat and Tamil Nadu that would again yield considerable saving for the mills, of anywhere between 10 per cent 25 per cent in freight costs.
SOURCE: The Business Standard
The Southern Gujarat Chamber of Commerce and Industry (SGCCI) will sign a memorandum of understanding (MoU) with the Gujarat government for the development of Rs 1,800 crore worth of mega textile park at Pinjrat during the Vibrant Gujarat summit. SGCCI president B S Agarwal said that the mega textile park is the dream project and it will change the face of Surat's textile sector. The chamber will be signing an MoU with the Gujarat government for allotting 70 lakh square metres of land at Pinjrat near Olpad.
SGCCI office-bearers said that the presentation has been prepared by IL&FS and that it was well received by the senior government officials. The SGCCI has appointed around 15 directors to head the SPV for the mega textile park. The mega textile park project conceived by the SGCCI is worth over Rs 1,800 crore. The park will accommodate around 100 textile processing units, 40 water jet weaving units, around 225 garmenting units and other textile ancilliary units, attracting a total investment of Rs 10,000 crore.
As per the proposed plan, the mega textile park will house giant textile processing units, each having average capacity of manufacturing over 3 lakh metres of fabric per day. Around 50 per cent of the fabric manufactured in the processing units will be converted into home textiles and garments. The rest of the fabric will be sold outside the state. At present, the textile sector contributes around 40 per cent of the synthetic cloth in the country But its share in export is quite meagre, because the export market requires huge quantity of cloth of same quality which cannot be supplied by the processing units in Surat. Agarwal said, "Processing units in Surat are located in Pandesara, Kadodara, Palsana and Sachin industrial, each having one CETP plant. At present, all CETPs are working to its fullest capacity and they are not allowed to expand, because tthey do not have further capacity to dispose the effluent. Thus, these processing units could be shifted to the mega textile parks."
SOURCE: The Times of India
The Maharashtra government plans to set up a garment park with an investment of Rs. 300 crore at Solapur which is considered the textile hub of Maharashtra. Inaugurating the three-day International Exhibition on Uniform and Textile, Subhash Deshmukh, State Textile Minister, said the Government plans to use the land of Narsing Girji Mill for setting up the Park and the work will start on January 26. “The State government would provide infrastructure and all support to complete and launch this unique garment park,” he added. It is expected to generate employment for over 60,000 bidi workers in Solapur, besides other unemployed persons, he said.
Solapur will be a major hub for also providing uniforms for the Armed forces and police personnel in the country, he said, and requested organisers host international exhibition outside the country to attract foreign investment. The market size of uniform for school, corporate wear and government forces is worth over Rs. 18,000 crore. Of this organised sector commands about Rs. 10,000 crore. Solapur has over 1,000 garment making units stitching uniforms worth Rs. 1,100 crore and it employs over 60,000 skilled labour. Jaykumar Rawal, Maharashtra’s Tourism Development Minister, said that the government would extend support to attract tourists and investors to Solapur as it is close to Mumbai, Pune and Hyderabad airports. Ravindra Marathe, Chairman and Managing Director, Bank of Maharashtra, said the bank will sanction spot loans of up to Rs. 1 crore to encourage the local garments industry during the three-day exhibition.
SOURCE: The Hindu Business Line
Aditya Birla Group firm Grasim Industries , a leading producer of viscose staple fibre, has sought a "fibre neutral" policy from the government by removing 12.3 percent excise duty levied on viscose fibre as its rival cotton industry is exempted from such levy. "We have been telling them (government) from last 5-6 years that there should be a similar kind of excise duty for all kind of fibre. We are asking them for a fibre neutral policy," Grasim CMO Rajeev Gopal told PTI. The company is sensing a good opportunity with its viscose staple fibre and garments in the global markets, where it is competing with suppliers from China, Turkey and Indonesia. "Viscose fibre would grow and we are at least looking for a double digit growth in the Indian market. Export would also grow similarly," he added. Viscose fibre-based garments are primarily purchased by developed markets such as US and Europe, while fibre mainly goes to countries like Bangladesh, Pakistan, Indonesia and Turkey. "Wherever there is spinning, we are exporting," he added. In 2015-16, Grasim Industries reported consolidated revenue of Rs 7,656 crore (USD 1.17 billion) from viscose staple fibre, up 15.24 percent from Rs 6,643 crore in the previous fiscal.
The company opened its first art studio in Noida through its fashion fabric brand Liva, where it would exhibit over 1,000 fabrics of viscose from its LIVA Accredited Partner Forum (LAPF). "We would soon have a similar studio in New York, where we would showcase the work of our partners," Gopal said. Besides New York, the firm has plans to introduce art studio concepts to other textiles clusters like Jaipur and Bengaluru. "We will have many of these because the idea is to first test how it works. We are quite confident and if it turns out well, then we would have at major centers as Bengaluru, Jaipur and Tirupur in South. There are so many," he added. LAPF is the first of its kind platform in the textile fraternity that connects and builds a network of textile professionals. LAPF studio connects over 650 garment manufacturers and exporters, over 50 local and international brands, 50 international buying houses, agents and traders and 100 fashion design houses.
SOURCE: The MoneyControl
The Indian government has sanctioned Rs 200.00 Crores (around US$300,000) to the Tirupur Dyeing industry which was said to be experiencing serious financial difficulties. Government sources claim these problems are a result of the industry's investment in the first ever Zero Liquid Discharge (ZLD) projects in the country, which commenced around 2008. The decision to support the cash-strapped sector is on the recommendation of the Ministry of Textiles and the cash will be provided to18 Common Effluent Treatment Plants (CETPs) as an interest free loan, offered based on the performance of the CETPs. The move is aimed at helping the struggling CETPs and 450 dyeing units to recover from the financial crisis which has impacted on India.
Several years ago, more than 450 dyeing units in Tirupur's dyeing industry collectively set up 18 ZLD enabled CETPs as part of a project which gained global recognition. The decision to establish the units was in response from protects by local people, particularly farmers, about the pollution being done to local rivers and waterways which was seriously impacting crop growth. Local authorities took an unprecedented move by asking local dyehouses to adopt a zero discharge policy – essentially, this meant no effluent could leave a plant unless it was properly treated. However being the first project of its kind the 'zero discharge' policy has faced several technical challenges and costs which have overrun.
Tirupur is a global hub for the textile processing and knitting industry providing employment to over five million people and contributing more than 20 per cent of the total garment export earnings of India. It is widely accepted that closure of the processing industry would seriously hamper the entire garmenting sector in the region. Ecotextile News also understands that local dyers are now pressing for the establishment of new units as well as asking the government to support local recycling efforts by using various unused by-products from effluents such as solid wastes from various salts as fuel (after treating it). It is also understood that local authorities are in the process of considering the relaxation of regulations which had prohibited the establishment of dyeing units close to rivers.
SOURCE: The EcoTextile
‘Bunkar Mitra’, the Government of India’s helpline for handloom weavers, has become operational. The helpline provides a single point of contact to handloom weavers across the country for addressing queries and providing guidance. Weavers can call from anywhere in India, from any number, and their queries will be answered by the experts in the field. Interacting with an official of the call centre housing the helpline agents, Union textiles minister Smriti Irani said that the helpline is a great mix of technology, youth and tradition. She told the officials of the ministry to monitor issues on which maximum complaints are received, so that corrective actions can be taken accordingly. Irani congratulated the Development Commissioner (Handlooms) and appreciated the time-bound manner in which the helpline is designed to address and respond to weavers’ queries and grievances.
The new helpline can be accessed by dialling the toll free number 1800-208-9988. The service is available from 10.00 a.m. to 06.00 p.m. on all 7 days of the week, in seven languages: Hindi, English, Tamil, Telugu, Bengali, Kannada and Assamese. Through the helpline, weavers can avail services related to assistance on technical issues, and also seek guidance for raw material supply, availing credit facility, quality control, access to marketing linkages, and information about various schemes and procedures to avail benefits.
SOURCE: Fibre2fashion
The Finance Ministry is likely to continue 3 per cent interest subsidy scheme for exporters in the forthcoming Budget with a view to help them tide over the tough global trade environment. "The scheme was announced in November 2015 and we expect that it would continue in this Budget also," sources said. Continuation of the scheme would help exporting sectors such as handicrafts, carpets, tea and rice.
Exporters body FIEO said that the scheme is helping exporters in this tough global situation. "We are expecting Rs 2,500 crore in this Budget from the Finance Ministry. It is important because the cost of credit is still very high in India compared to global benchmarks. We would urge the government to continue with this scheme," FIEO Director General Ajay Sahai said. He said the scheme is available to all exports of Micro, Small and Medium Enterprises among others.
Commerce and Industry Minister Nirmala Sitharaman has recently stated that the scheme has been very successful and the Finance Ministry too share this view. "... Even now there is lot of goodwill about this programme in the finance ministry. We are reminding them ... so even in the coming budget, I do not see any issue about this," she has said.
SOURCE: The Economic Times
While crucial issues under the yet-to-come goods and services tax (GST) regime still unclear, the government has decided to refund within a week most claims of exporters regarding export incentive schemes. “Ninety per cent of the amount claimed by exporters as credit drawbacks will be refunded within seven days,” commerce and industry minister Nirmala Sitharaman said on Thursday. The department of revenue has also assured her ministry that in an undue delay beyond two weeks, interest will be paid on the amount due.
Speaking at the second meeting of the Council for Trade Development and Promotion (CTDP), a platform for state governments and the Centre to converse, she said these matters regarding export payments have been discussed between ministries. The government has also announced that a new states' ranking on logistics performance would be initiated by February. Taking a cue from the State Ease of Doing Business Index, the department of industrial policy and promotion will be setting up a Logistics Index, with the aim of boosting the trade and transport infrastructure.
Recognised exporters of manufactured goods receive credit incentives, generally in the form of duty drawbacks, in various forms. The three major sector-specific ones are the Advance Authorisation Scheme, Export Promotion Capital Goods Scheme and the Deemed Exports Scheme, accounting for Rs 35,000 crore in government payouts. Since exports will continue to be considered zero-rated in terms of GST taxation, exporters have asked that the wait time between paying taxes in advance and getting refunded shouldn’t be too long. They also warn that a long wait would increase liquidity problems, asking for more ease in availing of exemptions under the new tax regime. "Although we have met with the central government, they feel it will only be possible if the states agree to the same, as exports are subject to the Integrated GST, which has both central and state GST components,” said S C Ralhan, president of the Federation of Indian Export Organisations. However, GST clearly states that the taxes must be paid, with the amount being refunded later, said commerce secretary Rita Teaotia. The last 10 per cent would be subject to whatever verification the revenue department is required to do, she added.
The government has also declared a moratorium on approving new Inland Container Depots and Customs Freight Stations. In spite of the country having 120 and 150 of these, respectively, there is a lack of official data regarding how many are operating at optimal levels. While some are lean, others are working at over-capacity, Sitharaman said. Also, she revealed, a central scheme is on the drawing board which might be an alternative to the Assistance to States for Development of Export Infrastructure and Allied Activities Scheme, oversight over which was transferred from the Centre to the states on the 14th Finance Commission's recommendation. States have continued to demand that all unfinished projects under the scheme be borne by the centre. Decided at the earlier CTDP meeting, 18 states have crafted their own export policy; 28 have appointed export commissioners.
SOURCE: The Business Standard
The heavily export-dependent jute mill industry in Nepal wants India to withdraw the recently imposed countervailing duty (CVD) of 12.5% on sacking bags and hessian cloth imports. Both the country’s Foreign Trade Association and Nepal Jute Mills Association (NJMA) say the duty goes against the spirit of long-standing understanding that New Delhi will treat the industry of the two countries on equal footing. Moreover, the CVD goes against the spirit of South Asian Free Trade Area agreement, they argue.
Nepal mill officials maintain that while the giant Indian industry in recent years had produced more than 1.6 million tonnes (mt) of jute goods, mainly sacking bags and hessian cloth, their output is facing an inexorable decline as the only significant outlet for its products remains India. That now also has come under threat. Kathmandu finds it puzzling that while India’s Directorate General of Anti-dumping & Allied Duties (DGAD) has recommended anti-dumping duty at varying rates on jute goods originating in Bangladesh and Nepal, the latter has been singled out for CVD. DGAD carried out the investigation on the basis of a representation by Indian Jute Mills Association that government subsidies such as Dhaka’s 10 per cent cash support to exporting mills are enabling them to sell jute products here at rates lower than in their own markets.
But unlike NJMA, Dhaka Chamber of Commerce and Industry (DCCI) was quick on its feet to move the country’s “commerce ministry, tariff commission and concerned government agencies to immediately take up with New Delhi for a review of the technical process of Indian anti-dumping investigation”. According to industry officials here, New Delhi is not following up on the DGAD recommendation because the political fallout of the duty will not be pleasant, especially when an agreement on sharing of Teesta river waters remains elusive.
The Bangladeshi industry says India is the destination for 20% of its annual jute goods exports of around $900 million. DCCI argues that “this 20% of total jute goods exports by Bangladesh claims a share of only eight% of the Indian market”. But in the event the proposed anti-dumping duty derails exports to India, it will leave an “adverse impact on growers, jute mills and exporting community. Moreover, Bangladesh’s trade imbalance with India will be further aggravated,” DCCI says.
If this is what Bangladesh fears will befall its jute economy in case India goes ahead with its import restrictions, then the predicament of the industry in Nepal — which claims to sell “95% of its jute goods output” to its southern neighbour — because of the CVD is easily understandable. According to NJMA, exports to India have virtually stopped following the imposition of CVD in mid-December. Prior to that, about 15 truckloads of jute goods would come to India from Nepal every day.
The Nepalese industry shrunk over the years to about half a dozen mills has either stopped production or is operating at very low capacity. For smooth functioning of what remains of the industry, NJMA wants the revocation of CVD by New Delhi. In the meantime, following the withdrawal of subsidies relevant to raw jute cultivation by Kathmandu, the country’s land under the crop is down to 11,000 hectares from a high of 56,000 hectares three decades ago. As a result, Nepal has become highly import-dependent for raw jute.
SOURCE: The Business Standard
Commerce and Industry Minister Nirmala Sitharaman today underlined the need for synergising efforts between Centre and states to boost the country's exports on sustainable basis. "Since last January, we have managed to contain our trade deficit due to controls on imports, there is an immediate need to synergize our efforts and jointly take appropriate steps to boost India's exports - which is the only sustainable way in today's international trade environment," she said. The minister was addressing the meeting of the 'Council for Trade Development and Promotion'.
Its members include trade/commerce ministers of states and UTs, besides 14 secretaries of the central government and industry representatives including Federation of Indian Export Oraganisations (FIEO). Sitharaman said that the objective of this council is to develop partnerships with the states with the aim of boosting international trade. She sought suggestions to improve the export competitiveness of domestic products and "on how can we partner in the adoption of such measures to create an environment conducive for exports".
Seeking support from the members, she said all should use this platform to articulate their perspective on the trade policy and work jointly to address impediments to trade and infrastructure gaps which adversely affect exports. "One such area which requires immediate intervention is that of facilities for testing, certification, trace-back, packaging and labelling," she said. The minister also requested the states to enhance their co-operation with central agencies for setting up common facilities like testing labs, training institutes as well as packaging and storage support to industry.
Further, Sitharaman stated that she had asked states to consider higher allocation of resources for export infrastructure from their increased devolution of funds to which "I expected that at least the ongoing ASIDE projects would be completed by the states. I am still awaiting an affirmative action on this from the states". She said the centre is also trying to formulate a scheme which could provide financial support and supplement your efforts to create export infrastructure. .. "I hope, we can soon succeed in achieving a consensus for the roll out of this scheme - Trade Infrastructure for Export Scheme (TIES)," she said, adding so far only 17 states have developed their export strategy aligned with the national policy on trade.
Emphasising on the need to focus on services exports, she said there is a need to diversify services exports basket by enabling more sectors and to breach more markets. "Other areas like medical tourism, nursing and healthcare, education, audio-visual media also afford an excellent potential which can be harnessed. For this, we need to develop the right competencies like language skills for the East and North East Asian markets," she added. Sitharaman urged all the states to consider organising bi-monthly meetings with the exporters to sort out infrastructure and tax related issues which would go a long way in improving our trade competitiveness. "I would like to take this opportunity to exhort the state governments to develop and pursue appropriate export strategies in line with national Foreign Trade Policy and we would be happy to associate in such efforts," she added. The minister also asked them to use the export commissioners as focal points for institutionalised interactions with the exporters from the state.
Further she said a hundred to hundred and fifty SPS (sanitary and phyto-sanitary) notifications and a similar number of TBT (technical barriers to trade) notifications are being issued by WTO member countries each month. "Around 50 to 60 per cent of these measures have the potential to impact our trade. There sector specific needs can broadly be categorised into interventions required for agri and marine products, for forest produce and for industrial products," she added. Expanding for the third straight month, exports rose 2.29 per cent to USD 20 billion in November on account of healthy growth in shipments of petroleum products and engineering goods.
SOURCE: The Economic Times
The Associated Chambers of Commerce & Industry of India (ASSOCHAM) said that the steps announced by Prime Minister Narendra Modi in his address to the nation on New Year’s Eve are extremely positive for the Indian economy. The apex industry body also said that the focus should now be on effective implementation of these schemes to drive economic growth. “The credit guarantee for SME and MSME has been increased to Rs 2 crore. This will provide support to these sectors. The focus should now be on effective implementation of the credit insurance programme so that banks and non-banking financial companies (NBFCs) get their money in case of defaults faster than what has happened in the past,” said Sunil Kanoria, president, ASSOCHAM. “The initiatives like 60-day interest waiver for farmers who have taken loans from district co-operative banks and primary societies together with additional fund of Rs 20,000 crore given to National Bank for Agriculture and Rural Development (NABARD) to give loans to farmers would help in alleviating pains of farmers and rural class,” he added.
Kanoria also said that the government should complement these actions with substantial reduction in both individual and corporate tax rates, more so as private sector investments are yet to kick-start and lower tax rates will certainly push private investments and drive economic growth. “Considering that post-demonetisation there has been a substantial surge in deposits, resultantly banks have started reducing interest rates and further rate cuts will only revive consumption demand and reinvigorate the investment cycle,” noted Kanoria.
SOURCE: Fibre2fashion
The Congress party appears on strong grounds when, while demanding the NDA postpone the Budget because of the state elections, it cites the example of what it did in 2012—it postponed the presentation of the Budget from February 28 to March 16, so that no one could accuse it of trying to influence assembly elections. To that extent, it can be argued the heavens won’t fall if the NDA does the same now. Except, given how many elections India has all the time, accepting this principle could mean crippling the government for fairly long periods of time—and, in the current case, the February 1 date of the Budget was announced before the Election Commission (EC) announced the schedule for elections in five states. In the case of revising gas prices for instance, though the UPA had notified the decision two months before the elections were announced in March 2014, the actual price hike was put on hold due to this. Though RBI had announced guidelines for new bank licenses on February 22, 2013, and the Bimal Jalan panel had given its recommendations on February 25, 2014, similarly, it had to get EC permission since, on March 5, the dates for the general elections were announced—in this case, EC gave the permission, but what if it hadn’t?
Those calling for the Union Budget to be postponed on grounds the government will use this to curry favour with the electorate don’t appreciate how limited the room for sops is—they are, of course, also guilty of insulting the electorate’s intelligence by believing it doesn’t look at the record of a party, but just goes by Budget-eve sops. While finance minister Arun Jaitley’s last Budget had Rs 19,78,060 crore to spend, a fourth of this (Rs 492,670 crore) was a fixed expenditure on interest payments; another Rs 250,000 crore was allocated for defence which is, in a sense, also fixed; at a little bit over R300,000 crore expenditure on salaries and pensions is also fixed … the discipline of the bond markets and the fiscal responsibility bill ensures not too much deviation from the fiscal deficit—that’s why, though subsidies are a great way to win over voters, these rose from Rs 217,941 crore in FY12 to just R250,433 crore in FY17 though GDP rose from Rs 88,96,379 crore to Rs 152,54,400 crore during this period. On February 29, 2016, Jaitley’s sops on direct taxes added up to Rs 1,060 crore—surely that’s not going to sway citizens to vote for the government if its overall track record is poor? In the same Budget, since Jaitley got Rs 20,670 crore more of taxes from customs, excise and services, in overall terms, he ended up taxing the electorate; the year before that, Jaitley gave away R8,315 crore in direct taxes but took back Rs 23,388 crore in indirect taxes.
Many of the sops that he might have announced, like interest subvention on housing loans were, in any case, announced by the prime minister on Saturday. Also, should Jaitley cut corporate taxes, keep in mind, a schedule was announced two years ago. As for reducing personal income taxes, he has been talking of this publicly for the last month, and not only was this expected as a follow-up to the demonetisation since it also boosts compliance, surely the Opposition realises lowering taxes is a part of overall economic reform and along the lines of what is happening globally? Good economics can’t be hostage to bad politics.
SOURCE: The Financial Express
India appears to be much better placed with improved macro-economic fundamentals, as measures to eliminate shadow economy and tax evasion are expected to have positive impact on GDP, the all-powerful FSDC headed by Finance Minister Arun Jaitley said. The Council, at its 16th meeting, reviewed the major issues and challenges facing the economy. “World economy is quite fragile, yet India is much better placed today due to improvement in its macro-economic fundamentals,” Jaitley said.
With all secretaries in the Finance Ministry as well as Reserve Bank of India Governor Urjit Patel and other financial regulators in attendance, the Financial Stability and Development Council (FSDC) also reviewed the present status of NPAs in banks. It noted that “India appears to be much better placed today on back of improvement in its macro-economic fundamentals,” an official statement said. “The Council also noted that the government’s measures to eliminate the shadow economy and tax evasion are expected to have a positive impact on both GDP and fiscal consolidation in the long run,” it said.
At the meeting, Chief Economic Adviser Arvind Subramanian made a presentation on the state of economy. “The Council reviewed the major issues and challenges facing the economy and noted that India appears to be much better placed today on the back of improvement in its macro-economic fundamentals,” it said. Also, the regulators offered their suggestions/ proposal for the upcoming Budget for 2017-18, which were deliberated upon by the Council. “The Council also reviewed the present status of NPAs in banks and measures taken by the government and RBI for dealing with the stressed assets and discussed on further action in this regard,” it said.
Besides Patel, those present at the meeting included Finance Secretary Ashok Lavasa, Economic Affairs Secretary Shaktikanta Das, Financial Services Secretary Anjuly Chib Duggal, Revenue Secretary Hasmukh Adhia, Disinvestment Secretary Neeraj Kumar Gupta, SEBI Chairman U K Sinha, IRDAI Chairman T S Vijayan and PFRDA Chairman Hemant G Contractor. “FSDC discussed about the various initiatives taken by the government and regulators for promoting financial inclusion/ financial literacy efforts and discussed further measures for promoting the same,” the statement said. A brief report on the activities undertaken by the FSDC sub-committee, chaired by RBI Governor Urjit Patel, was placed before the FSDC. The Council also undertook a comprehensive review of the action taken by members on the decisions taken in earlier meetings of the Council. “The Council also discussed issues pertaining to Fintech, digital innovations and cyber security. The Council took note of the initiatives taken in this regard by the government and the regulators and discussed on further steps to be taken,” it added.
SOURCE: The Financial Express
With the eighth GST Council meeting failing to achieve the ever-eluding consensus on critical matters such as GST rates, dual control, taxing powers, etc, GST in India seems to be drifting away after being so near. GST’s tumultuous journey in India began more than a decade ago—then finance minister P Chidambaram, while presenting the FY07 Budget, announced the Union government’s intention of introducing the GST on April 1, 2010. In hindsight, it is now clear that the assumption on the timeline for the Union and the state governments to arrive at a consensus on GST was grossly under-estimated. In fact, more than twice the length of time originally estimated has passed and the clouds of uncertainty on the actual implementation date still hover.
It is not that the Union and the state governments have been confronted with these issues only now. Well before the formation of the GST Council, these critical matters were fully known to both; however, they chose to discuss these near the end of the GST journey and close to the implementation date. One expected that all these decisions would be taken swiftly by the GST Council, that was formed after the Constitutional Amendment Bill on GST was passed, and that India would get to see cooperative federalism in action. Cooperative federalism calls for amicable and nimble relations between the Centre and the states, more so when the matters relate to issues such as tax revenues. Time is opportune for the Centre and the states to keep aside their respective disagreements and quickly work on a solution acceptable to all stakeholders and in the best interest of the nation. One should look at the long-term gains that the GST offers as also overcome the short-term pains that may arise during the transition.
Despite eight successive meetings of the GST Council—that too, in just little more than three months—no firmed-up solution seems to be in sight. Both the Union and the state governments have been vocal on arriving at the most acceptable solution; however, nothing of the sorts is visible so far. Uncertainty over these issues and the final date of GST implementation has put industry in a quandary. Fully convinced of the benefits that GST promises, many large companies had started serious preparations for transition to the regime as early as 2015, committing senior management, time and money to embrace the game-changing reform, notwithstanding the now defunct 1%-origin-based tax on inter-state supplies. With the returns on these investments delayed substantially, these companies are justifiably frustrated.
Most of the large businesses in India have finalised their business projections for FY18 based on multiple scenarios, assuming various dates of the GST implementation as also the likely rates. Hence, for the businesses, the budgeting exercise for FY18 has been more of an academic one than a practical one. The case with the Union as well as the state governments is not very different when it comes to the FY18 budget. Perhaps, this is the first time in the history of independent India that the Union Budget would be presented in a very uncertain and fluid scenario. Assuming that GST would be adding substantially to the GDP growth, any delay in implementing it is an opportunity lost forever for that financial year.
Was all this avoidable? Yes, perhaps, had all these critical issues been discussed ab initio. Keeping them pending for the last moment has added to the delay in GST implementation, notwithstanding other issues such as the impact of demonetisation on tax revenues, etc. The possibility of the GST being implemented from April 1, 2017, now looks faint and there seems to be no unison between the Centre and the states on agreeing to the new implementation date. The critical legislative steps, such as the passing of the CGST, IGST and GST Compensation Bills in the Parliament and passing of the SGST Bills in the state assemblies, are still pending. Given the fresh experience of the washed-out winter session in December 2016, the task of achieving all this before April 1, 2017, is a herculean one. No wonder, thus, various dates—starting from April 1 to Sept 15, 2017—are doing the rounds as the date of implementation. Here, too, the Union and the state governments do not appear to be on the same page. Though many state finance ministers have publicly claimed a new likely date, there seems to be no official communication.
This is the last thing industry expects, while working in already volatile market conditions. While the jury is not out on the exact impact of the demonetisation on the economy, doing business in this uncertainty is definitely not the best situation. In the whole process, the credibility of the country has been put at stake when it comes to firming up the tax reforms agenda. It is hoped that a consensus would finally emerge in the next meeting of the GST Council (scheduled for January 16). Unless there is consensus on all critical matters, all the preparations for GST—whether by the Union government (going ahead full steam on the GSTN initiatives) or by the state governments (like running GST training sessions) or by trade and industry (like reconfiguring supply-chains/IT systems)—would prove futile. But then, it is another meeting of the GST Council on another day!
SOURCE: The Financial Express
A GST (goods and services tax) migration helpdesk has been set up at the office of Kanara Chamber of Commerce and Industry (KCCI) in Mangaluru. A press release said here that KCCI and the Department of Commercial Taxes have opened the GST migration helpdesk at KCCI office for the benefit of its members and the general public.
SOURCE: The Hindu Business line
Micro, small and medium enterprises (MSMEs), which are largely cash-dependent, have reported a substantial shift away from cash transactions following the government’s demonetisation move, with 41 per cent units saying their clients had shifted to cheque or electronic payments, says a recent survey by Crisil. However, the note-ban had muted growth and dried up funds, with three out of four MSMEs saying they plan to approach banks for loans, the survey pointed out. “To be sure, the cash ban has impacted business operations, but more importantly, demonetisation has spurred a major change in the way MSMEs conduct business,” said Crisil, which covered over 1,100 MSMEs between November 24 and December 24 for its survey.
Pointing out that “nearly half of the MSMEs with annual turnover less than Rs. 2 crore reported a greater shift toward less cash, compared with a third of those with revenue over Rs. 25 crore,” it said, this “may also be because non-cash payments are already prevalent among mid-sized players.” The survey added that typically MSMEs perform better in the fiscal second half (October- March), which means annual growth will be muted. On cashless transactions, the survey saw a “significant transition” among micro enterprises, while for the smaller ones, the shift was expected to translate into long-term benefits through quicker transaction processing and better record-keeping.
Terming the drying up of liquidity as “an opportunity for banks”, Crisil said at least 9 per cent of those surveyed, accounting for 6 per cent of outstanding debt of the sample, said they would face issues in debt repayment. Most of these are micro enterprises with revenues below Rs. 2 crore, said Manish Jaiswal, Head-SME Ratings, Crisil, said in a release. According to the survey, every fifth MSME planned to raise additional funding in the coming months, half of it for working capital. “Interestingly, with unsecured loans from friends and associates drying up, three out of four respondents plan to approach banks for loans, while the rest will rely on internal accrual. That opens up a massive opportunity to banks currently awash in liquidity,” it said.
Delay in receivables
The survey also found every third MSME facing delay in receivables from clients, which had curbed their ability to repay creditors — and pay salaries — on time. The steel sector was the most impacted, followed by textiles, logistics and construction. “However, those engaged in human resource-based services, such as recruitment agencies, security services and IT services had it relatively easy,” it added.
SOURCE: The Hindu Business Line
Government’s measures to eliminate the shadow economy and tax evasion are expected to have a positive impact on the country’s gross domestic product and fiscal consolidation in the long run, finance minister Arun Jaitley said on Thursday. The country appeared to be much better placed with improved macro-economic fundamentals, Jaitley said while chairing a meeting of the Financial Sector Development Council (FSDC) here. The FSDC reviewed the status of non-performing assets (NPAs) of banks. The chief economic advisor also made a presentation on the state of the economy. "The council reviewed major issues and challenges facing the economy...," a statement from the finance ministry said.
Also, the regulators offered suggestions and proposals for the 2017-18 union budget, which the council deliberated upon. The budget is proposed to be presented on February 1. "The council also reviewed the present status of NPAs in banks and measures taken by the government and RBI for dealing with stressed assets and discussed on further action in this regard," the statement said.
The FSDC discussed the initiatives taken by the government and regulators for promoting financial inclusion and financial literacy, the statement said. A report on the activities by a FSDC subcommittee chaired by the RBI governor was placed before the council. The council also reviewed action taken by members on decisions taken in earlier meetings. "The council also discussed issues pertaining to fintech, digital innovations and cyber security. The council took note of the initiatives taken in this regard by the government and the regulators and discussed on further steps to be taken," the finance ministry statement said.
SOURCE: The Economic Times
India expects growth of around 7% in the first half of the next financial year, two officials said, painting a rosier picture for the economy than many economists after Prime Minister Narendra Modi’s shock move to abolish large banknotes. Nearly 90% of transactions used to be in cash in India, which was gripped by a severe shortage of currency after Modi's November 8 decision to take Rs 500 and Rs 1,000 notes, out of circulation overnight. Several economists have said the move could drag down growth in FY18 to 6.5%, as small businesses fired workers, consumer demand fell and farmers' winter sowing efforts were hit.
Demonetisation has become a major election issue in states going to the polls this year, such as Uttar Pradesh, where the performance of Modi's ruling Bharatiya Janata Party could shape his political future. The Budget leaves Modi little room to hand out large, populist sops, despite demands by politicians, businessmen and other lobby groups for relief to the industry and taxpayers.
SOURCE: The Business Standard
The inevitable delay in implementing the national goods and services tax (GST), earlier targeted for April 1, will ensure the Budget-making process is much more complicated for the finance ministry. The Centre will have to account for the presently applicable indirect taxes for that part of 2017-18 when GST will not apply. Earlier, when GST was expected to apply from April 1, when the new financial year begins, Finance Minister Arun Jaitley’s Budget speech was expected to be completely different from previous editions. Part B, the taxation proposals, was to only have announcements related to direct taxes and customs duties. While that could still be the case, planners will have to factor in the revenues from the current indirect taxes for budget estimates for the first half of the year at least. And then from GST, now expected to be rolled out on or after September 1.
On Wednesday, the long impasse over division of administrative turf between Centre and states persisted, as did the issues of higher compensation due to demonetisation and the definition of coastal states, at the latest GST Council meeting. Indicating a rollout of the new indirect tax regime is difficult not only from April 1 but also from July 1. “Budget calculations will be complicated, with uncertainty surrounding the GST rollout date and the rates. The estimates might largely be based on assumptions. The government could look at setting up a contingency fund to overcome any mismatch in revenue estimates and actuals. It might do the calculations by assuming July 1 as the rollout date,” said Pratik Jain, leader-indirect tax at consultancy PwC. “They will have to take an estimated date for the rollout. In that case, they will project indirect tax collection at 75 per cent of the GST revenues estimated for the full financial year. They already have projections for service tax and excise duty and must have done some homework on classification of items,” said Bipin Sapra, partner at consultancy EY.
The sense is that Jaitley’s speech will stick to the earlier proposed script and not give indirect tax proposals. This means the usual announcements of levies on cigarettes, high-end cars and other luxury items, ‘white’ goods such as air conditioners, etc, and service tax exemptions, will not be a part of the Budget speech. It remains to be seen.
SOURCE: The Business Standard
dvance estimates for 2016-17, to be released on Friday, would have the actual data till October. It is feared that the estimates may not be able to fully capture the effect of demonetisation. In the past eight years, advance estimates were not very different from the first actual numbers for GDP growth, barring in 2008-09, when there was global financial meltdown, and in 2011-12, when there was crisis in the euro zone.
SOURCE: The Business Standard
In a chat with ET Now, Aditi Nayar, Senior Economist, ICRA,BSE -0.64 %, says the slightly hawkish minutes that the Fed has released yesterday is really leading to a pullback as far as the US dollar strength is concerned.
Edited excerpts:
What exactly have you made of the kind of action and hints that have come out from the US Fed and what do you believe will that do to the trajectory of dollar which so far has only been moving from strength to strength?
The Fed minutes have added a lot of nuance as far as their own expectations for US growth inflation dynamics are concerned. Everybody at this point is really going to be in a wait and watch mode in terms of what we expect President Trump led US economy to look like and what actually is going to happen in another few weeks. So there is a fair bit of uncertainty and that is partly the reason along with the slightly hawkish minutes that the Fed has released yesterday that is really leading to this pullback as far as the US dollar strength is concerned . That is the predominant reason we have seen the rupee strengthen today.
Do you think this strength can sustain? There is still divided opinion about which way the currency would go and at some point, it will buckle to the pressure of other emerging market currencies which have been losing out to the dollar. The dollar strength has also been questioned at one point in time because the US cannot afford to really have a strong dollar when they need some sort of growth stimulus from the export side too. What camp do you belong to when it comes to the near term to medium term trend on the rupee?
As far as the US dollar is concerned, it is a juxtaposition of whether it is going to be a domestic fiscal led strength to the US dollar or whether it is going to start effecting exports and pull growth back. The US dollar is unlikely to be able to move in an unidirectional manner. It may not strengthen significantly from current levels. As far as the rupee is concerned, it will move in line with emerging market currencies but will depreciate much less than any of the other emerging market currencies because despite the short term stutter that demonetisation has caused, the inherent strength of the Indian economy, the fact that inflation is expected to remain moderate as well as the extremely low current account deficit and the capital inflows that are coming in -- all of these factors will ensure that the rupee depreciates and shows a lot less volatility than many of the other emerging market currencies.
Our next couple of quarters trading band remains intact at around 66.5 to 70 factoring in any kind of major global volatility but if we look at what could happen in the next month or two, even covering the budget period, the rupee is unlikely to be in a very broad band. I think the trading range could be more like 67 to 68.5.
We are trying to get a feel as to what the common man is really looking for from the Budget 2017. We keep hearing the word GST from them. It seems now the wait for GST is going to get longer because the two-day council meet did not really end and there was no consensus on dual control yet again. Perhaps April 1st as a deadline would be a little difficult to achieve. How important is this and how much of a disappointment could it cause?
We have been waiting for GST for more than a decade. One or two quarters more is not going to be terribly disappointing as long as at the end the GST that we get is as close as possible to the ideal. That all of these administrative issues are ironed out between the centre and the state and that the law that we get is as close to being a water tight and a flawless law as possible. So I do not think that a delay of a quarter is going to be very disappointing as long as we get a better drafted set of laws under the GST.
SOURCE: The Economic Times
The rupee on Thursday continued its winning run for the second day, appreciating by 9 paise to end at 67.96 on sustained dollar unwinding from banks and exporters. A spectacular rally in domestic financial markets as well as sluggish greenback overseas supplemented further strength to the local currency upsurge. However, suspected intervention by the apex bank to prevent the rupee's surge in the interest of exporters restricted its early solid gains. The domestic unit resumed on a firm footing at 67.87 from Wednesday's closing value of 68.05 at the Interbank Foreign Exchange market on continued dollar selling.
Adding muscles to upsurge, the home currency climbed to hit an intra-day high of 67.76 in mid-afternoon deals, but relinquished strong early gains towards the fag-end trade and settled at 67.96, showing a modest gain of 9 paise, or 0.13 per cent. The rupee has ended higher by 28 paise yesterday.
On the global front, the greenback fell against most world currencies after the latest FOMC minutes expressed high degree of uncertainty, though the Fed officials stated the central financial institution could be compelled to elevate rates higher than anticipated in the face of Donald Trump's economy-boosting tax cuts and policy measures. The US dollar index was trading lower at 102.25 in late afternoon deals. The RBI fixed the reference rate for the dollar at 67.7884 and for the euro at 71.5574. In cross-currency trades, the rupee fell back against the pound sterling to conclude at 83.65 from 83.43 and dropped further against the euro to finish at 71.35 from 70.99 yesterday. It also lost further ground against the Japanese Yen to end at 58.30 per 100 yens from 57.90 yesterday.
SOURCE: The Economic Times
In a bid to ease hurdles and open up access to new frontiers, the government aims to enhance connectivity with Latin American (LatAm) countries — a move which will ease the long-standing demand of various nations. Trade volume could easily go up to $100 billion. Sources in the government told FE, “At the recently concluded India-LAC summit organised by the MEA in Mexico, it was felt that South-South cooperation needs to be more vibrant and effective. Poor connectivity emerged as the biggest hindrance for investors — connectivity would go a long way in enhancing business between India and the LatAm and Caribbean region.” “Trade and investments are below expectations in the region, while the shipment takes almost 60-90 days. And there are no direct flights,” sources added.
The region offers immense opportunities to Indian companies, especially in sectors such as energy, pharmaceuticals and agri business. Trade between India and Latin America is likely to double in the next five years from the current level of $46 billion, with direct shipping, air connectivity and visa-on-arrival, as well as free trade agreements, as some of the steps being taken to boost trade with the region. While transportation costs and the lack of familiarity with each other’s markets were previously cited as the big impediments, the government is planning to improve connectivity to the region.
Experts say that the trade volume could easily go up to $ 100 billion if the leaders of both sides blend proactive diplomacy, address issues like enhancing connectivity and leverage multifarious win-win opportunities, especially in areas like energy, agriculture, nutritional processing, textiles, transport and IT & ITES. Countries in the region, especially those landlocked like Bolivia, recognise that their connectivity too needs to be improved.
Seeking investments in developing Bolivia’s massive lithium deposits, which account for 60% of the world’s reserves, and keen on selling potassium and urea to India, minister for development planning René Orellana of Bolivia, told FE, “In an effort to improve connectivity, we are planning to improve our own infrastructure in Santa Cruz and creating a big business hub where big planes could land.” Cuba, as pointed out by its ambassador, Oscar I Martínez Cordovés, has embarked on a rapid programme of modernisation and has in place special economic zones and technology.
Nicaragua is seeking Indian collaboration in the renewable energy space, which offers huge capacities for development of this alternate energy source. It is also looking at the Indian companies for mining too. Countries like Haiti are anxious to see a balanced sharing of resources between the developed North and the developing and least developed countries of the South. This is critical to pushing development in the growth-starved South, which is in urgent need of education, transfer of knowledge and technology, and use of great capacities in R&D for the socio-economic upliftment of its people. Today, 60% of the current bilateral trade is in oil, hydrocarbons, minerals and agriculture commodities, but it is now moving into niche areas like pharmaceutical and IT services.
SOURCE: The Financial Express
The Indian Embassy here in the US held its first open house as part of its effort to address the grievances of the community on visa, passport and Overseas Citizens of India (OCI) card. The initiative was announced by the new Indian Ambassador to the US, Navtej Sarna, in his maiden address to the Indian Americans at a reception organised by the community in his honour last month. Similar open houses have been planned all other Indian Consulates in the US - New York, Atlanta, Houston, Chicago and San Francisco. The Embassy and its consulates would hold similar open houses in their premises every fortnight.
In Washington, despite the short notice and bad weather conditions, several applicants turned up yesterday for the event with enthusiasm. Individual applicants' issues were personally attended to by senior officers in Consular Wing. Apart from personal grievances, various general issues and queries raised by visitors were also responded to by the Embassy officials. There was a general sense of appreciation by the visitors to the 'Open House' concept initiated by the Embassy, a media release said.
SOURCE: The Economic Times
The Trump Organisation has cancelled "exploratory talks" over possible projects by the global firm in India, Brazil and Argentina as President-elect Donald Trump readies to assume office in about two weeks and questions about conflict of interest between his presidency and business continue to be raised. A report in Fox News yesterday quoted Trump lawyer Alan Garten as saying that the company would not continue "exploratory" talks over projects in Pune in India and in Buenos Aires. The company has also cancelled a "memorandum of understanding" to continue discussions with local partners over possible office towers in Rio de Janeiro.
The report added that discussions over the possible project in Pune were separate from two residential towers already built there that bear the Trump name. Trump also has his name on a residential tower in Mumbai. Late last year, licensing deals for hotels in Brazil, Azerbaijan and Georgia were also cancelled as Trump had come under pressure to separate from his business before assuming office. While Trump has given no indication that he plans to sell his interest in his business, he has pledged to do "no new deals" while president and to leave management of his company to his two adult sons.The report added that Trump has stakes in 500 companies in about 20 countries, some of which appear to be set up for tax or legal reasons. It said the Argentina talks came under scrutiny last year after several media outlets reported that Trump tried to speed along the Buenos Aires project by mentioning it in congratulatory call from Argentine President Mauricio Macri. The project in Brazil involves plan to build five office towers in Rio de Janeiro, but the development got tied up in a corruption investigation that was unrelated to Trump himself, the report said.
SOURCE: The Economic Times
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$ 54.57 per barrel (bbl) on 05.01.2017. This was higher than the price of US$ 54.30 per bbl on previous publishing day of 04.01.2017.
In rupee terms, the price of Indian Basket decreased to Rs. 3699.32 per bbl on 05.01.2017 as compared to Rs. 3702.29 per bbl on 04.01.2017. Rupee closed stronger at Rs. 67.79 per US$ on 05.01.2017 as compared to Rs. 68.18 per US$ on 04.01.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on January 05, 2017 (Previous trading day i.e. 04.01.2017) |
Pricing Fortnight for 01.01.2017 (Dec 14, 2016 to Dec 28, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
54.57 (54.30) |
53.05 |
|
(Rs/bbl |
3699.32 (3702.29) |
3599.97 |
|
|
Exchange Rate |
(Rs/$) |
67.79 (68.18) |
67.86 |
SOURCE: PIB
The textile industry, while highlighting the challenges being faced by millers, has come up with a set of recommendations for its true revival with the help of a growth-led strategy as exports have consistently stood weaker over a long time. All Pakistan Textile Mills Association (Aptma) Chairman Aamir Fayyaz outlined the proposals during a meeting with Trade Development Authority of Pakistan (TDAP) Chairman SM Muneer at the association’s office. They discussed restoration of the viability and growth of the textile industry. Fayyaz pointed out that export of all sectors had slid because of the high cost of doing business. The trade deficit reached $28 billion in the previous fiscal year as exports dropped to $19.5 billion from $24.5 billion in 2013. He suggested that the government should remove customs duty on the import of cotton, allow duty-free import of all man-made fibres that were not being manufactured in the country and permit the drawback of taxes and levies at the rate of 4% on export of yarn and grey fabric, 5% on processed fabric and 6% on home textiles, made-ups and garments.
Also, the government should allow a long-term financing facility, input tax refund on packaging materials under the zero-rated regime and lift the moratorium on new gas/re-gasified liquefied natural gas (LNG) connections for captive power plants. He proposed that a multi-year tariff, determined by the National Electric Power Regulatory Authority (Nepra) for the industry, should be notified without including the surcharge, which would make available electricity at the regionally competitive price of Rs7 per kilowatt-hour.
The Aptma chairman called for supplying re-gasified LNG to five major export industries at the unified price of Rs600 per million British thermal units throughout the country. Revealing that $3.5 billion worth of industry capacity was staying shut, he emphasised the need for bringing that capacity back to production as well as restoration of investor confidence in order to encourage them to execute their investment plans. Speaking on the occasion, the TDAP chairman said exports should always be the top-most priority of the government for instilling confidence in the entrepreneurs. “It is high time that we catch up with our competitors by slashing the cost of doing business,” he remarked.
SOURCE: The Tribune
Following a 35 per cent increase in cotton prices in 2015, Brazilian cotton prices continued to rise in 2016, in which they grew 22.6 per cent over 2015. Cotton prices were primarily driven by low cotton supply in the local market from an unexpected crop failure in the 2015-16 season, while firm demand also pushed up quotes in the last four months. In 2016, the highest monthly average for the CEPEA/ESALQ Index, with payment in 8 days, for cotton type 41-4, delivered in São Paulo was BRL 2.7405 or $0.7742 per pound in May, and the lowest at BRL 2.5023 or $0.7677 was observed in September.
According to data from the Brazilian Commodity Exchange (BBM), 71.7 per cent of the 2015/16 Brazilian cotton crop, estimated at 1.3 million tons, had been traded until December, of which 51 per cent was sold in the domestic market and the rest in the international market. Quoting data from the Foreign Trade Secretariat (SECEX), between January and November 2016, 732,700 tons of cotton was exported, an increase of 7.1 per cent compared to the overall volume shipped in the whole of 2015. However, export revenue dropped 14.6 per cent year on year in dollar terms to $1.1 billion.
SOURCE: Fibre2fashion
Pakistan will have to foot a bill of around $1.58 billion for the import of 4.5 million bales (170kg each) to bridge the gap between the production and consumption of raw cotton. Cotton production clocked up at 15m bales in 2014-15 and 9.5m bales in 2015-16. It is expected to be around 10.54m bales in 2016-17. Pakistan was the third largest raw cotton exporter, but it has been an importer for the last two years. Last year, Pakistan imported around 2.7m bales from India at a cost of $800m. The country has also lost its fourth position in the world in terms of the production of raw cotton. There was a time when Pakistan was the largest exporter of cotton yarn globally, according to Asif Inam, chairman of the All Pakistan Textile Mills Association (Aptma) for the Sindh-Balochistan zone.
About two months back, cotton prices in India were low owing to higher cotton production estimates, Mr Inam said. But the prices have moved up substantially now, making the import of cotton from across the board costly, he added. At the start of the cotton season in India in October, prices were as low as Rs35,000 per candy (356kg). More recently, the prices soared to Rs50,000 per candy due to the intervention of the Cotton Corporation of India (CCI). Mr Inam said Pakistan’s Department of Plant Protection (DPP) restricted cotton imports from India when low prices prevailed there citing phytosanitary conditions. Raw cotton has to be imported because current stocks in the country are insufficient to meet two months’ demand, he said.
According to reports, the DPP has also restricted the import of cotton through the Wagha border because it is usually via open trucks, which may expose local cotton to pests and other diseases. This means cotton imports can only be via sea. However, this will further enhance its cost for Punjab-based textile mills that are already complaining about high gas tariffs. The APTMA official said the government should remove 4 per cent import duty from raw cotton as 4.5m bales will be required to meet local demand. Prime Minister Nawaz Shairf had assured the textile industry that the duty on cotton imports were going to be lifted this year because farmers would already have sold a major portion of the local crop, he noted.
SOURCE: The Dawn
The business community has urged the government to announce a ‘domestic business plan’ along the route of the China Pakistan Economic Corridor (CPEC) in consultation with the concerned industrial associations to take care of local industry so that domestic investor can reap maximum benefit of this mega project.
Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) Central Chairman Ijaz Khokhar suggested to set up a CPEC Business Committee or a CPEC Business Wing to update the local industry about the nature of China’s planned industrial units in the country, warning of its adverse effect on local industry and apprehending that such a scenario might turn Pakistan into a purely consumer market. He said that domestic industries are already at risk of being wiped out due to dumping of cheap Chinese products. “We appreciate the government efforts for CPEC which has opened opportunities for industrial cooperation between the two friendly countries. However, it is our opinion that CPEC committee or CPEC Business Wing should be established to safeguard the existing local industry as well as international investors.”
Ijaz said that CPEC cost and benefit ratio should also be shared with local industrial associations. The government should also announce the same incentives and tax relaxations for every industrial unit across the country as it has declared for Chinese investors in CEPEC, to give level-playing field.
He said that presently the China has created non-tariff barriers for Pakistani investors through strict visa policy. Pakistani embassy is issuing long-term, multiple visas to Chinese businessmen without involving any ministry on its discretion. On the other hand, China issues visas to Pakistani businessmen for a single entry of shortest term, he lamented. “How we can market our product in China in this way,” he questioned. “China is such a big country, which needs at least one-month visit visa for marketing of our products,” he added. He said that China Embassy demands long list of documents, even not required for frequent business traveler and holder of multiple visa of EU, having long travel history. “This is major non-tariff barrier imposed by China. We cannot buy any property in China but they have purchased the whole Gwader and a large area near Express Highway in Karachi,” he stated.
Instead of giving freehand to the Chinese businessmen, the Pakistan government should devise some rules, convincing them to forge joint ventures with local companies on 49-51 ratio, he proposed. He asked Prime Minister Nawaz Sharif to announce the incentives package for exporter without any further delay, appealing him to accept responsibility for controlling the freefall of textile exports. The government should honour its pledge to clear pending tax refunds of exporters, without any delay, he added.
The PRGMEA chief said that the prime minister should take the ownership of improving exports and announce textile package. “Incentives will not be affective until the prime minister takes ownership of exports till the next general elections as policy implementation is not seen anywhere,” he added. On the other hand, value-added textiles exporters urged the government to introduce a soft import policy to help manufacturers diversify apparel products to augment their businesses and export. “The country has merely few textile products to offer in world markets at present, whereas Bangladesh and China offer over 100 product lines to global buyers,” they added.
Lahore Chamber of Commerce and Industry (LCCI) former vice president Kashif Anwar said that CPEC is obviously going to help Pakistan by creating millions of new jobs. However, Chinese exporters were enjoying zero duties on 35% of total product lines at present. In comparison, China has offered to immediately slash duties to 70% of product lines. Both sides are negotiating the FTA afresh after Pakistani industries complained about the 2006 agreement that was highly in favour of China.
Anwar said that none of the major trade agreements, Pakistan has signed, have shown a significant increase in its exports. However, imports have shown a healthy increase post-all major FTAs signed by Pakistan. Pakistan had a trade deficit with China, Malaysia and Indonesia when it signed FTAs with them in 2006, 2008 and 2013, respectively. Its trade balance was still in negative with these countries.
Meanwhile, APBF president Ibrahim Qureshi said that CPEC is not for Pakistan rather it seems to be ‘through Pakistan.’ He alleged that presently B-to-B investment under CPEC is very rare and all major investments are G-to-G, raising question of transparency and standard. He said, “Chinese companies are utilising their own human resource as we have no trained human resource.”
Qureshi said that no PEPRA rules are followed in government-to-government investment ventures while contract is awarded without any bidding, he added. GCCI former president and REAP ex-vice chairman Samee Ullah Ch urged the federal government to take the business community on board on the nature of China’s proposed industrial zones in the country, apprehending that such a scenario might weaken its own manufacturing sector. He regretted the government had not taken the chambers in confidence over the issue.
He said the local manufacturers’ concerns over the CPEC’s negative effects on the local industry should be addressed apprehending that such a situation might hit local exports. He emphasized that the government should be very careful in moving on CPEC to avoid the situation emerged from signing Free Trade Agreement (FTA) with China. He said the business community’s main concern about CPEC was transparency in CPEC projects.
FPCCI former president Rauf Alam was concerned about the protection of the local industry, which would have to compete Chinese products to be directly supplied to Pakistani market or to be produced in industrialists units at Special Economic Zones (SEZs) enjoying better facilities and many incentives including tax holiday against the existing ones facing various problems mainly the high cost of doing business. “Existing industries be placed at par with those at SEZs,” he asserted. He called for handing over the administration of SEZs to renowned private sector people through main trade bodies of the country as they would be giving better results along with promoting sense of ownership among local business community in CPEC related projects.
SOURCE: The Nation
Apparel and clothing accessories’ exports from Jordan showed upward trend during the first ten months of 2016. From January to October 2016, Jordan exported garments and clothing accessories worth 836.7 million dinars ($1.181 billion), registering an increase of 1.7 per cent over exports of 822.8 million dinars made during the corresponding period of 2015. Overall, garment exports accounted for 22.89 per cent of around 3.655 billion dinars exports made by Jordan during the ten-month period, according to the data released by the Jordanian Department of Statistics.
Category-wise, knitted or crocheted apparel and clothing accessories’ exports earned 792.129 million dinars, showing a jump of 1.27 per cent over exports totalling 782.130 million dinars made during the same period in 2015. Exports of non-knitted garments shot up by 9.62 per cent year-on-year and contributed 44.570 million dinars during the period under review.
In October 2016, Jordan’s exports of knitted apparel and accessories increased by 10.5 per cent to 68.315 million dinars, as against exports of 61.821 million dinars made in the corresponding month of the previous year. The textile and clothing sector in Jordan employs about 24,000 people, with major players being American Jordanian Company for Apparel (Jordache), Casual Wear Apparel LLC, Central Clothing Company, EAM Maliban Textiles, El Zay Ready Wear Manufacturing Co., Golden Fingers Co. Ltd., and Prime Five Garment Manufacturing Co. Ltd. and many others.
SOURCE: Fibre2fashion
Dr Bernhard Felmberg of the Federal Ministry for Economic Cooperation and Development will be among the speakers at this month's Ethical Fashion Show in Berlin where he will provide an update on the work of the German Partnership for Sustainable Textiles (Textilbündnis). The winter edition of the trade fairs for eco fashion, Greenshowroom and the Ethical Fashion Show Berlin, will take place from 17-19 January 2017. Highlights of the trade fair include the two fashion shows 'Salonshow' and 'Ethical Fashion on Stage' as well as presentations, panel discussions and press tours. The fashion show programme will be presented in a new location, the Energieforum by the River Spree.
At the Salonshow on Wednesday 18 January, collections will be on show from a range of eco fashion labels, including Austriandesign.at, Biaggi, Blue Valley, Inti Ferreira, Johanna Riplinger, Lanius, Lanius X Kunert, Royal Blush, Somyso, Studio Elsien Gringhuis, Studio Jux and Xess+Baba.
Later that day, the 'Ethical Fashion on Stage' show will present looks by B Frog, C. Pauli, Chapati, Colombo3, Elementum, Greenbomb, Jaspe, Komodo, Naturaline, Organication, Shirts for Life, Tranquillo and Ukua Lov Baby. To finish the show, lavera Naturkosmetik will present the winner of the lavera Green Fashion Award from January 2016: Paul Iby with Johanna Winklhofer.
The event organiser is also calling all professional and amateur photographers, journalists and bloggers to take part in a photo competition. Entries will be taken of people, general photos of the trade fair or the fashion shows, and can be posted on the Facebook pages of Greenshowroom and the Ethical Fashion Show Berlin using the hashtags #myfairpic, #greenshowroom and #EFSB. An expert jury will choose their favourite photo from all the posted photos.
There is also a prize for the photo that attracts the most likes, and the two winners will each receive the book "Fashion Made Fair" and a voucher from Kleiderei.
SOURCE: The EcoTextile
Recycled insulation provider Thermore says it has gained Bluesign and GRS certification for its latest Ecodown fill. The insulation is 100-percent made out of recycled plastic bottles, using approximately ten bottles for a single jacket. 'Ecodown' is claimed to be the only synthetic alternative in the market made entirely from recycled content, while still claiming to provide unparalleled waterproofing and windproofing properties.
Thermore says the synthetic down does not require any special quilting processes and can maintain its performance and durability use in testing conditions. Company officials from Thermore also said that it will launch a new website at Outdoor Retailer Winter Market (January 10-12, 2017), which includes a survey called "Thermore Wizard" that allows its partners to answer questions to determine the right insulation solution for their products among hundreds of options.
Said a statement from the company: "Thermore's exclusive offer allows our partners to choose from hundreds of different products, and each product responds to a specific requirement that our demanding customers asked us about. The Thermore Wizard is a simple, 10-questions search engine that allows customers to find their ideal insulation. It took us 12 months of hard work to collect and compile the statistics that are the basis for the Thermore Wizard engine. We are sure our customers will enjoy playing around with this new, yet already indispensable tool."
SOURCE: The EcoTextile
Socar GPC has awarded a service contract for ethylene and cryomax technology licenses to Technip for a petrochemical complex, part of a new gas and petrochemical complex, located in Azerbaijan. Technip will be developing the process and engineering design of all the process units, as well as the design of the related utilities and off sites. The scope of work covers the engineering design of a new gas processing plant with capacity of 10 BCMA and a new petrochemical plant including a steam cracker with a capacity of 610 KTA of ethylene and 120 KTA of propylene. The service contract also includes the utilities and off sites scope includes the design of all the necessary units to operate the plant efficiently all which are scheduled to be completed during the second half of 2017.
SOURCE: Fibre2fashion
Bahamas Development Corporation (BDC) has executed an Asset Purchase Agreement (APA) to acquire a fast-growing wholesale turnkey performance lifestyle apparel company. The apparel company has a multi-year operating history and currently generates revenue in excess of $1 million per year. The acquisition has been structured to avoid any dilution to BDC. One of BDC's officers is obtaining a loan he is personally guaranteeing to fund the acquisition. The acquisition accelerates BDC's business strategy of developing revenue streams in the US and the Caribbean.
The apparel company, the name of which has not been disclosed, is focused on the athleisure category and has existing operations and distribution channels throughout the US and Caribbean. A focus on proprietary fabrics has allowed the apparel company to flourish in one of the hottest growth categories in the apparel industry. The apparel firm has exclusive business designs, and it manufactures and distributes performance lifestyle apparel in the athleisure category.
BDC has an ideal opportunity to rapidly expand existing and new distribution channels. This includes building on existing internet and Amazon platforms, and increasing the current B2B business. Competitive advantages are already in place that will allow the business to continue to grow and flourish.
Included in the purchase is inventory, equipment, social network profiles and domains and websites, including e-commerce, Amazon, Facebook, Twitter and Instagram platforms. The current business is predominantly wholesale to the trade only. Sales and marketing representatives are already in place, as are supply chains, customer services, operations, and production.
SOURCE: Fibre2fashion
Copenhagen Fashion Summit, the fifth edition of the world’s leading event on sustainability in fashion, will be held on May 11, 2017 at Copenhagen concert hall. The Copenhagen Fashion Summit is under the patronage of HRH Crown Princess Mary of Denmark. It is a non-profit event organised by Danish Fashion Institute on behalf of Nordic Fashion Association. The Summit has over the years manifested itself as the leading forum for sustainability in fashion and has proven to be a safe neutral environment to launch new initiatives, where businesses, non-profit organisations, policy-makers and media can come together to join forces and make actual commitments to change.
Since the first Copenhagen Fashion Summit was held in 2009 during COP15, it has become the most influential platform for creating awareness on the state of sustainability in fashion. This year launches the Global Fashion Agenda, a year-round agenda setting forum that aims to convene the entire fashion sector, governments, civil society, and all the great many initiatives out there around a global commitment to positive change. Anchored around the flagship event Copenhagen Fashion Summit, Global Fashion Agenda’s mission is to mobilise the global fashion industry.
To achieve the ambitious strategy of getting the fashion industry to commit to the sustainability agenda, CEO Eva Kruse has up scaled her management team. To realise the Global Fashion Agenda, she will have the following by her side chief operating officer Caroline Chalmer, chief content officer Jonas Eder-Hansen, and chief learning officer Johan Arnø-Kryger.
SOURCE: Fibre2fashion
On December 7, ES FiberVisions (ESFV), a joint venture between FiberVisions LLC — a subsidiary of Thailand’s Indorama Ventures PCL, and Japan’s JNC Corp. — held an opening ceremony to celebrate the completion of its newest plant in Rayong, Thailand. This state-of-the-art facility was constructed adjacent to Thailand’s largest fiber facility to expand ESFV’s global production capacity and produce the highest quality bicomponent fiber in a hygienic environment. The plant has 14,000 tons of capacity per year and was designed to allow for future expansion as ESFV continues to invest globally to meet the needs of its customers.
The ES FiberVisions joint venture is the world’s largest producer of polyolefin bicomponent fibers and has production facilities in China, Denmark, Japan, Thailand and the United States. More than 100 government representatives, customers, suppliers and contractors attended the opening ceremony. It was hosted by Aloke Lohia, Group CEO of Indorama Ventures; Dr. Yasuyuki Gotoh, CEO and president of JNC’ Yozo Shimomura, chairman of ESFV and managing executive officer of JNC; and Tom Zaiser, CEO of FiberVisions.
Lohia noted that this plant reflects the partners’ strong commitment to growth worldwide and “will allow ES FiberVisions to continue delivering the differentiated bicomponent fibers that our customers need in order to be successful in their businesses.” Gotoh commented: “At this Thai factory, a key center for supply to the Southeast Asian region, we have introduced global cutting-edge technology. We believe that the state-of-the-art ES fiber produced here will not only contribute to the development of the Thai economy but also help all the citizens of countries in the ASEAN region lead more comfortable lives.” Zaiser added, “It is only with the success of our customers that we achieve the ultimate goal of this project.”
The partners also announced that they would be expanding bicomponent manufacturing at the FiberVisions facility in Covington, Ga. The expanded capacity is expected to be on-line at the end of 2017. This initiative will support the growing need for bicomponent fibers in the hygiene and industrial sectors in the Americas.
Growth in Asia is being further supported with a previously announced expansion of the ES FiberVisions Suzhou Co. Ltd. plant in Jiangsu Province, China. This facility started production in 2014. The expansion will double its capacity to over 28,000 tons per year and is expected to be completed in the summer of 2018. A ground-breaking ceremony for a new warehouse and ancillary facilities was held in mid-December. Shimomura stated: “With this investment in Suzhou, we will accelerate our growth in China and Asia and will secure the capacity that meets the strong demand for our high quality bicomponent fibers. As a pioneer of bicomponent fiber, ES FiberVisions continues to be the leading supplier in the world.”
SOURCE: The Textile World
Oil prices rose on Thursday after Saudi Arabia started talks with customers about a reduction in crude sales to support a plan by Opec to lower global supply. The Organization of the Petroleum Exporting Countries promised in November to cut output to help prop up prices. Under the deal, Saudi Arabia agreed to cut output by 486,000 barrels per day (bpd), or 4.61 per cent of its October output of 10.544 million bpd. "Aramco is approaching all its customers for possible cuts from February and discussing likely (supply) scenarios," one source told Reuters, referring to state oil giant Saudi Aramco. "Nothing is confirmed yet," the source said, adding the scenarios were for cuts of 3-7 per cent.
Investors have been suspicious that Opec may not cut as much as promised, but several sources told Reuters on Thursday the world's biggest oil exporter intended to lower exports to comply with the Opec reductions. Benchmark Brent crude oil was up 35 cents a barrel at $56.81 by 1340 GMT. US light crude was up 35 cents a barrel at $53.61. Both contracts rose by around 2 per cent on Wednesday. "There remains a question mark over whether Opec, with a long history of non-compliance, will actually follow through (with the cuts). Very few respondents expect full compliance," Singapore Exchange (SGX) said, citing results from a survey of its participants. "Three-quarters of those surveyed went for (crude) prices averaging within the current $50-$60 a barrel range (for 2017)," SGX added.
Analysts at Goldman Sachs said even if Opec reduced production as promised, there was "only moderate oil spot price upside given the expected supply response to higher oil prices and new production". The US bank said it expected Brent prices to peak at $59 a barrel by mid-2017. In another sign of compliance with the cuts, Abu Dhabi National Oil Company (ADNOC) has scheduled maintenance at oilfields for March and April, although it was not immediately clear how much exports might fall. Oil prices also found support from an American Petroleum Institute report showing US crude inventories fell 7.4 million barrels last week. US government figures on inventories were due to be published at 11 am EST (1600 GMT) on Thursday. A Reuters survey forecast the government report would show US crude stocks declined by about 2.2 million barrels in the week to December 30.
SOURCE: The Business Standard
China's onshore yuan and its offshore counterpart rose sharply in early afternoon trade on Thursday, with some traders saying European players were squaring short yuan positions as funding costs spiked. The onshore yuan market was quiet in the morning, but later rose to 6.8875 per dollar, the strongest in almost a month. The offshore yuan also surged to 6.8072 per dollar, the strongest since Nov. 11. That compared to its Asia open at 6.8737.
Traders say that tight liquidity and surging funding costs in the offshore yuan market have forced yuan short sellers to square positions and stop losses. China has stepped into both its onshore and offshore yuan markets to shore up the faltering yuan this week, sparking speculation that it wants a firm grip on the currency ahead of US President-elect Donald Trump's inauguration later this month.
SOURCE: The Economic Times
