|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1198.64 |
USD/Ton |
0% |
1/18/2017 |
|
VSF |
2404.55 |
USD/Ton |
0% |
1/18/2017 |
|
ASF |
2005.00 |
USD/Ton |
0% |
1/18/2017 |
|
Polyester POY |
1239.32 |
USD/Ton |
0.65% |
1/18/2017 |
|
Nylon FDY |
3341.67 |
USD/Ton |
0.44% |
1/18/2017 |
|
40D Spandex |
4576.64 |
USD/Ton |
0% |
1/18/2017 |
|
Polyester DTY |
5515.21 |
USD/Ton |
0% |
1/18/2017 |
|
Nylon POY |
1489.22 |
USD/Ton |
0% |
1/18/2017 |
|
Acrylic Top 3D |
3138.26 |
USD/Ton |
0% |
1/18/2017 |
|
Polyester FDY |
2150.29 |
USD/Ton |
0% |
1/18/2017 |
|
Nylon DTY |
1590.93 |
USD/Ton |
0% |
1/18/2017 |
|
Viscose Long Filament |
3530.55 |
USD/Ton |
0.41% |
1/18/2017 |
|
30S Spun Rayon Yarn |
3065.62 |
USD/Ton |
0% |
1/18/2017 |
|
32S Polyester Yarn |
1816.13 |
USD/Ton |
0% |
1/18/2017 |
|
45S T/C Yarn |
2673.34 |
USD/Ton |
0% |
1/18/2017 |
|
40S Rayon Yarn |
3196.38 |
USD/Ton |
0% |
1/18/2017 |
|
T/R Yarn 65/35 32S |
2295.58 |
USD/Ton |
0% |
1/18/2017 |
|
45S Polyester Yarn |
1961.42 |
USD/Ton |
0% |
1/18/2017 |
|
T/C Yarn 65/35 32S |
2237.47 |
USD/Ton |
0% |
1/18/2017 |
|
10S Denim Fabric |
1.33 |
USD/Meter |
0% |
1/18/2017 |
|
32S Twill Fabric |
0.83 |
USD/Meter |
0% |
1/18/2017 |
|
40S Combed Poplin |
1.16 |
USD/Meter |
0% |
1/18/2017 |
|
30S Rayon Fabric |
0.66 |
USD/Meter |
0% |
1/18/2017 |
|
45S T/C Fabric |
0.66 |
USD/Meter |
0% |
1/18/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14529 USD dtd 19/10/2016)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The Department of Revenue (DoR) is investigating the recyclers of PSF/POY/PTY who are using Popcorns (which is manufactured from the textile waste) in admixture with PET flakes and/or virgin plastic chips, according to industry sources. The sources informed that the Ministry of Finance, DOR, CBEC w.e.f 11.07.2014 had extended 2% ( when CENVAT is not availed) / 6% (when CENVAT is availed) concessional rates of Central Excise Duty to the manufacturers of recycled POY/PFY/PTY when manufactured by the use of plastic waste or plastic scrap including PET bottles.This was done on the recommendations by the Ministry of Environment to the MOF on the grounds that plastic waste/scrap/PET bottles are the danger to the environment being non-degradable and its recycling saves the mother from earth getting contaminated/polluted.The recommendation by the Environment Ministry was on the basis of vigorous follow up by the recyclers. The said rates of duties, depending upon whether CENVAT is availed or not, were applicable from 11.07.2014 till 29.02.2016. The DOR, however, w.e.f. 01.03.2016, enhanced CE Duty of 6% to 12.50% in case the recyclers chose to avail CENVAT credit. Meanwhile, the investigation and intelligence
wing of Central Excise Department, sources informed, have undertaken investigation against the recyclers gathered to be using Popcorns (which is manufactured from the textile waste) in admixture with PET flakes and/or virgin plastic chips.The bone of contention is that by using popcorns, which is a product of textile waste and not plastic waste, the recyclers have violated the condition of the concessional duty notification, thus, liable to pay 12.5% CE Duty. None of the recyclers usingpopcorns are found to be paying 6%/12.5% duty, as applicable for the said relevant periods. All are found paying 2% concessional rate of duty. A huge revenue loss is suspected by the Department. The DOR, it is gathered, are also likely to take up the matter with the Ministry of environment bringing to its notice the misuse of the benefits obtained by the recyclers, sources said.
Source: Tecoya Trend
Just as for goods, the goods and services tax (GST) Council is planning to bring different rates of tax for services as well. The highest rate would be for “luxury” services. This means, instead of a uniform rate of tax on all services, including cess and surcharge, there would possibly be three rates: luxury, standard and basic. It will be the first time since tax on services was introduced in July 1994 that there would be more than one rate for the tax. The topic has been debated in the committee of secretaries setup by the GST Council that comprises finance secretaries of nine states besides the Union Revenue Secretary Hasmukh Adhia. While the GST Council is almost certain to approve the three-rate structure for services for the tax system that would roll out from July 1, 2017, the central government’s Budget is also likely to introduce elements of the new tax structure for services. Other than a possible change of rates for income tax, this could be the biggest tax proposal that Finance Minister Arun Jaitley may bring in. At present, despite the uniform rates, there is an a battement provided for some services, because of which the effective rate on the is close to 12 percent. But the headline rate remains unchanged at 14 percent plus cess and surcharges. “We expect that about 15 percent of the value of services taxed now would be included in the luxury grade,” said a government source. Since service tax comprises almost 30 percent of the total indirect tax corpus and is also the fastest-growing component within it, breaking up the flat rate is an attractive proposition for both the Centre and the states. However, if it happens, the rate could be the same as the highest one proposed for goods at 28 percent — a steep climb for several types of services. It would make life easier for the Union finance ministry, scrambling to provide money to pay as compensation for states for an expected revenue loss, when they switch over to GST. Anita Rastogi, partner-indirect tax at Price water house Coopers said she had heard about the proposal. “There is a discussion happening that the luxury services be taxed at a higher rate and essential at a lower.This may not be the best scenario, as few slab rates are ideal under GST.” What tax experts are concerned about is how the revenue department at the Centre and at the states would work out the difference between a luxury service and a plebeian one. For goods ,the governments depend on a detailed classification structure known as the harmonised system of classification and numbering an international protocol maintained by the World Customs Organization. It allows tax officials to drill down into goods to decide its rate. It is periodically revised. There is no such system for serv-ice tax at present. Rastogi said this makes it difficult to decide what luxury is and what an essential service is. But, quietly with in the government, work on such a classification of services is racing to completion. A committee of officials was tasked with completing the task at the prodding of the United Nations (UN). The UN procures a lot of services from member-nations and has often been embroiled in dis-putes over whether those are the cheapest possible since there is no global system to classify those services. The trigger for classification has emerged because of this problem. It has given the Indian revenue department the option to revise the service tax basket. Once in place, the proposed different rates for service tax can be set against the standards to ensure there is no dispute with the tax payers. The states will be particularly benefited since they have no experience in handling service tax. A flat tax like the one currently in force helps since the tax department has to only prove that a service was provided. Since 2012,all services - except the ones mentioned in the ‘negative list’ of services - have become taxable. The concept of a negative list was introduced when service tax was rung in the year 1994.
Source: Business Standard
Icra has assessed that Maharashtra, Tamil Nadu,Karnataka, West Bengal and Gujarat are likely to gain sig-nificantly in service tax revenues under the goods and services tax (GST) regime, likely from July 1.Tax revenues related to services of nearly all states are likely to be favourably impacted after GST kicks in, it said. "Overall, we expect the transition to GST to be positive for some states, particularly on account of services, "Icra said in a note. In the event that some states experience a revenue growth under GST below 14per cent in the first five years, that would be neutralised, provided that the amount collected by way of the GST compensation cess exceeds the total revenue losses of the states related to the transition to GST, the rating agency said. While states get 42 percent of service tax collected and imposed by the Centre at present, they will get 42 percent of central GST in services and entire portion of service tax in state GST.
Source: Business Standard
Excise duty on man-made fibres should be reduced to bring it on par with that of cotton in this year’s Union Budget, said a top official of a leading textile company of India. The industry has been demanding a level-playing field in the industry with respect to cotton for a long time now and some rationalisation is expected from Budget 2017-18. “A long standing demand of the industry, especially the man-made fibre sector, is about the excise duty reduction. Fibres like nylon and polyester have an excise duty of 12.5 per cent, while for other yarns like cotton, the excise duty is negligible. The industry has been demanding a level-playing field vis-à-vis cotton. So, we are looking for some rationalisation in excise duty in this year’s Union Budget,” Shailendra Pandey, joint president – sales & marketing, Aditya Birla Nuvo Ltd (Indian Rayon) told Fibre2Fashion. Another leading manufacturer and exporter of home textiles and yarns has urged the government to consider subsiding excise duty by more than 20 per cent on handicraft and handloom products that are to be exported. “The Union Budget of this year, as far as the textile sector is concerned, should be well focused for giving more than 20 per cent excise duty subsidy on handicrafts and handloom sector goods destined for export to the US and east European countries,” Rajendra Singh Cheema, general manager, EHS and compliance officer, Trident Group told F2F. Cheema also said that the government should consider a long term plan to boost exports from India. “Also, make long term planning to increase textile export form India to go ahead of China by the year 2020,” added Cheema. Pandey also said that the textile industry is looking at the Union Budget from the point of view of GST too. “How the fabric will be brought into the GST chain is an important question as fabric in the unorganised sector is not covered under excise,” noted Pandey.
Source: Fibre2fashion
The Government of India is looking at allowing 100 per cent foreign direct investment (FDI) through automatic route for single brand retailers in a bid to attract more global players to India. The government currently permits FDI up to 49 per cent under the automatic route in this sector. Government’s permission is required beyond this limit. Products introduced under FDI in India need to be of a single brand and should be sold globally under the same brand. For proposals involving FDI of 51 per cent or more, it is necessary to source at least 30 per cent goods from the small-scale sector of the country. The ministry of commerce and industry and the ministry of finance are discussing the issue of easing the FDI policy for the sector. Single brand retail sector has a lot of potential of attracting FDI and the government wishes to provide easy policies for domestic as well as foreign investors, said a news agency citing a source. The mandatory sourcing from local MSMEs was tweaked by the government last year. It agreed to exempt foreign firms from the norm for three years if they bring state-of-the-art technology to the country. FDI in India touched $40 billion in 2015-16, a 29 per cent rise from $30.93 billion in 2014-15.
Source : Fibre2fashion
A textile museum will soon be established in Mumbai over an area of 10 acres, said the Maharashtra state government in a recent notification. The state government also stated in the notification that it has sanctioned six structures in India United Mill nos. 2 and 3 as heritage structures and the entire plot of the mill as a heritage precinct. The municipal corporation of Greater Mumbai had requested the government to issue suitable directions to permit the land under the heritage structures proposed to be retained for textile museum as part of recreation ground (RG) share and to develop the textile museum at the site, according to the notification. The government agreed to the request and said, “The land under the heritage structures is proposed to be retained for textile museum as part of recreation ground.” “The land under the heritage structures to be retained for textile museum, shall be treated as part of the RG share of MCGM as a special case and the municipal commissioner may permit use of these heritage structures for the purpose of textile museum and ancillary activities like exhibition of textile related activities, fabrics, machinery, processes, fashion shows and other recreational activities,” said the notification.
Source: Fibre2fashion
Vibrant Gujarat Summit 2017, which concluded last week in Gandhinagar, Gujarat, witnessed the signing of MoUs worth Rs 8,835 crore in the textile sector. Welspun Group announced an investment of Rs 4,000 crore for three large textile projects in Gujarat. The three MoUs which were signed during the ‘Vibrant Gujarat 2017’ were announced by B K Goenka - Chairman, Welspun Group at the Summi "Our continuous investment in the state is a testament to our long term commitment to Gujarat. It is our aim to make Gujarat the textile hub of the world. Welspun continues to invest in development of well-researched products and technology of the future and the current investment is in line with this philosophy," said B K Goenka, Chairman, Welspun Group. Amongst the larger of the three projects, Welspun will invest Rs 2,000 crore in developing an integrated Textile Manufacturing Zone. This will be a part of the Government of India's Sagarmala project where Kutch is among the first identified key locations. The company aims to develop a large, modern and futuristic textile industrial complex that will manufacture and supply world class textile products for the global markets. Welspun will leverage on its expertise in developing industrial infrastructures. The Kutch facility will provide a unique ecosystem for entrepreneurs to set up manufacturing facilities. The project will generate direct employment of nearly 5,000 and will provide indirect employment to nearly 15,000 people. Welspun will further invest Rs 1,000 crore in its technical textile business for capacity enhancement, addition of new products and training and skill development. Under this vertical, the company has already made its mark with products for specialised use such as fire retardant fabric, stain-resistant, anti-bacterial finished textiles, soil resistant textiles, etc. Most of these products are also recyclable. The project will give direct employment to nearly 1500 people. Another Rs 1,000 crore is being invested in the Advanced Textile arm of Welspun that focuses on manufacturing specialised materials for applications in aerospace, defense and automobile sectors. The project will generate direct employment of 2000 persons and indirect employment of 5,000. Welspun Group has already invested Rs 10,000 crore in Gujarat so far and fresh investments takes total investment to Rs 14,000 crore. Welspun's facility in Anjar is a global benchmark in the manufacturing sector, employing more than 30,000 people and providing livelihood to over 1 lakh people directly and indirectly. The various MoUs signed in the textile sector are in various segments including textile parks, textile processing, textile engineering and machinery, carpet development. Union Textiles Minister Smriti Irani said that given the entrepreneurial spirit of Gujaratis and the investment inflow, the textile story of Gujarat has just begun. Irani said as an area with one of the largest concentrations of textiles in India, Gujarat is a one-point sourcing hub for all kinds of textiles. The minister also said that there are huge possibilities in textile education in the state. She was addressing the 'Make in Gujarat' theme seminar on Trends and Innovations impacting the Textile Value Chain, at Vibrant Gujarat Global Summit. She said that the skill development programme in the textile sector conducted at 28 ITIs of Gujarat running textiles courses has recorded a placement of 75%. The two major institutes of Gujarat, namely NIFT and NID, and various engineering colleges offer degrees in textile technology, textile processing and textile engineering.
Industry highlights need for informed policies to boost technical textiles
At a session on textiles, moderated by Textiles Commissioner Dr Kavita Gupta, which was also attended by Union textiles minister Smriti Irani, the government came in for sharp criticism by on its ambiguity on technical textiles. As Gupta asked a panel comprising textile stalwarts on the roadmap for "technical textiles" at the session, Mohan Kavrie, MD of Supreme Nonwovens, said that the governments and successive textile commissioners had been promoting technical textiles for the past 15 years and urged the audience that it was "time to act". Highlighting the lack of data and understanding by the government of this industry, Tushar Patel, MD of Sanrhea Technical Textiles Ltd and president of Ahmedabad Management Association, said, "All these white papers, put out by government bodies, are summaries and statistics databases, nothing to drive really the man who wants to get into technical textiles. I am into the mobiltech (automotive textiles) segment that enhances strength of a lot of rubber products. Mobiltech happens to be the largest segment in technical textiles. Unfortunately, there are so many things the government doesn't know about the depth of this industry, and this is reflected in the absence of proper policies and promotions, that dissuades others from entering into this segment. The result is that imports are rampant, and mock the `Make In India' initiative. Every month, container loads of materials are coming in - like conveyer belts - and who is the biggest buyer of conveyer belts - the Steel Authority of India & Coal India." He added, "Nowhere in the world do you use nylon conveyer belts - it's polyester and it's cheaper and we have been making a more expensive product here. That data had to come from the government at a time when the government has been aggressively promoting technical textiles as the growth engine of the textile industry. We have to start off from our government and semi-government bodies' side to bring in more clarity and awareness." Reacting to Patel, Gupta said his input was very "insightful" and added that they were having a seminar on technical textiles on Januray 18, urging him to come up with specific suggestions on what capacities the department requires. Meanwhile, Taishan Fiberglass Inc, the second largest fiberglass producer in China, signed a Rs 1,700 crore MoU to set up a state-of-the-art manufacturing plant of fiberglass in Gujarat, which will be its first overseas plant.
Gujarat will see more investments in chemicals, infrastructure
After the removal of the moratorium on industrial expansion at Vatva, Vapi and Ankleshwar, chemical companies are now looking to expand and Vibrant Summit was the best platform to announce projects. As many as 215 industrial units in Vatva inked MoUs worth Rs 1,000 crore during the summit. In addition to this, 250 units from Naroda industrial area also signed MoUs to the tune of Rs 700 crore. Gujarat attracts the largest investments because of its industrial policies, schemes and its infrastructure. To further enhance infrastructure, Adani Ports, India's largest private port and logistics company, announced that in the next five years, it will invest Rs 16,700 crore to expand capacity of all its Gujarat ports - Mundra, Dahej, Hazira and Tuna. Roquette Riddhi Siddhi, a 100% French subsidiary owned by Roquette Group based in France, signed an MoU with the state government for their proposed Zero Liquid Discharge project.
Lulu to invest Rs 12,000 crore in Gujarat's retail sector
Lulu Group has committed to make an investment of Rs 10,000-12,000 crore in Gujarat. "Our Lulu Shopping Mall in Kochi, Kerala, is India's biggest shopping mall. In Ahmedabad, we are looking at opportunities to start a shopping mall, hotel and a mini convention and exhibition centre," said Yusuffali M A, MD.
Gujarat awaits a brand new startup policy this year
Gujarat will come up with a comprehensive startup policy this year that would be an extension of the policies already in place. Gujarat Industrial Development Corporation vice-chairperson D Thara said the new policy would be better and more practical. Existing policies will not be discontinued, she clarified. The state is home to startups like Infibeam, Lendingkart, Let's Recycle, Axio Biosolutions and Trukky. In the last one year, some 30 investment deals have been struck in Gujarat, mainly through angel funding. Ecommerce player Infibeam became India's first ecommerce startup to get listed raising Rs 450 crore. Fintech firm Lendingkart has raised $40 million from investors like Bertelsmann India, Darrin Capital Management, Mayfield India, Saama Capital and India Quotient. In 2015, the state came out with startup-assistant schemes that were part of the larger Gujarat Industrial Policy. Last year, it brought in a more focused Information Technology Startup Policy, while two days ago, the state announced India's first student startup and innovation policy. A seminar to get suggestions from the startup community was held on the second day of the Vibrant Gujarat summit in Gandhinagar where some 100 experts recommended incentivising large corporates to invest in startups. "To create an ecosystem, we need to engage all players. We feel private sector should be incentivised to provide funds, mentorship in form of time. They can open their R&D labs through connected incubators," said Shriya Damani of coworking space DoubleO. The seminar also favoured creating a mechanism for more fund flow and embed creativity from secondary school level to boost startup culture. Initiatives like Reward Actionable Initiatives that Stimulate Enterprises (RAISE) were also suggested for identifying and supporting agencies that can stimulate startups in the state. The state government has roped in The Value Web, known for organising Davos World Economic Forum, to facilitate the seminar and find solutions to the existing challenges through a participatory approach. The primary suggestions will be collated and submitted to the government. The 100 participants were divided into twelve groups, each group tasked with deciding upon a single major challenge faced by the startups in Gujarat and engaging into discussions to emerge with probable solutions. "Action Seminar like this will immensely help startups as well as government to have structured policies in the states. That will boost the culture of innovations and IP-based entrepreneurship," said Jatin Trividi, a senior IPR lawyer from Ahmedabad. Experts at the seminar opined that providing incentives to large corporates would encourage them to provide funds, mentorship as well as physical space, through incubators and accelerators. Other groups suggested free flow funds from local angel investors, successful entrepreneurs, mentors, industrial houses, banks and academicians. The groups also insisted on policy support.
Assam, Arunachal woo investors in Vibrant Gujarat Summit
Assam has enacted the Ease of Doing Business Act, 2016 a few months ago, and has also become the first state in the country to approve the GST. Assam and Arunachal Pradesh, have gone all out to woo investors during the Vibrant Gujarat Global Summit, with both states pointing out that the Northeast was India's Gateway to Southeast Asia, a market that could be best explored through this region. "Assam, as the biggest economy in the North-eastern region, has the potential of being the pivot of India's Act East policy. There is a large market comprising Bangladesh, Myanmar and the ASEAN waiting to be accessed for investment. While the region was all along looked at as a periphery, it is time we look at Assam as a perfect business gateway and as the centre of the Indo-ASEAN partnership and interface," Assam industries and commerce minister Chandra Mohan Patowary said. Patowary particularly focussed on the immense potential in sectors like pharma, bamboo, hydrocarbon, textiles, tea and horticulture, and said that seamless accessibility to the region through a strong network of roadways, railways, airways and inland waterways in Assam was now available to the investors. "Assam has enacted the Ease of Doing Business Act, 2016 a few months ago, and has also become the first state in the country to approve the GST. In Assam, a single window clearance system has been set up for providing online clearance and permission in fixed time frame," Patowary said. He also interacted with industry leaders like Ratan Tata and Mukesh Ambani on the inaugural day of the Global Summit and appraised them about the current conducive industrial environment in Assam.
Arunachal opening up: Khandu
Meanwhile, Arunachal Pradesh chief minister Pema Khandu said his state, with its strategic location between Bhutan, China and Myanmar vis-à-vis government of India's Act East Policy, offers immeasurable opportunities. Interacting with entrepreneurs on the sidelines of the Vibrant Gujarat Summit, Khandu invited investments in agriculture, horticulture and tourism sectors immediately to begin with. "Arunachal Pradesh is favourably situated between the huge markets of mainland India in the South and South-Asian countries," he said. Khandu also said that while Arunachal Pradesh remained closed to investors from outside due to its remoteness and poor market, the state was now opening up its treasure trove with better communication network like the Trans-Arunachal Highway, several Advance Landing Grounds, and extension of railway lines, better bridges, and a more congenial atmosphere of doing brisk business.
Source: Textile Excellence
Adani Ports and Special Economic Zone Ltd (Adani Ports) has figured among the 12 companies in Asia that are facing challenges in retaining investment grade ratings, Moody’s Investors Service has said. “The rating of Adani Ports and Special Economic Zone Ltd (Baa3 negative) is under pressure due to lower growth trajectory from slower shipment volumes, particularly coal,” said a report released by Moody’s Investors Service, titled ‘Twelve companies face challenges in retaining investment grade ratings in 2017’. The report indicates that eight of the 12 companies at risk this year are Chinese and the negative outlooks on six of this group are driven mostly by their weakened standalone credit profiles. Kaven Tsang, Moody’s Vice-President and Senior Credit Officer, said the number of companies with the greatest potential to lose their investment grade ratings has spiked to a multi-year high of 12 — compared with four at end 2015 — and rating downgrades are likely if their credit profiles do not improve to the levels “we expect by end-2017”. These 12 companies had approximately $7 billion of outstanding rated bonds as of January 17, compared with $3.2 billion for the four companies similarly affected at the end of 2015. Lina Choi, also Moody’s Vice-President and Senior Credit Officer, said that debt-funded expansion and/or acquisitions are the key drivers for the negative rating pressure for seven out of the 12 companies.
Source: Business Line
Hyderabad, Jan 12 (PTI) Telangana Chief Minister K Chandrasekhar Rao today asked the Textiles department to prepare plans to help the cause of weavers in the state. Rao, who held a meeting on issues of weavers, said the state government would not hesitate to spend any amount of money to help improve the condition of weavers, according to a release from his office. Noting that state government has initiated steps for the welfare of fishermen and sheep rearers, he said measures would be taken to ameliorate the condition of weavers as well. He asked textiles, handlooms, industries and IT minister K T Rama Rao and officials to prepare plans to resolve the problems of weavers on a permanent basis.
Source: Press Trust of India.
A sharp decline in export to China and slowing purchases from local fabric makers might prompt cotton yarn manufacturers to slowdown investment in new capacity addition in the next five years. A study by rating agency Care Ratings forecasts 3 million tonnes of new spindle capacity would be added between FY16 and FY21. But between FY12 and FY16, the sector added 7.3 million tonnes of manufacturing capacity. By the end of FY16, the manufacturing capacity in the country was 50 million spindles. The rapid growth, however, led to overcapacity, with fresh investment drying up. “Capacity addition will slow down as the cotton yarn industry will be adding only about 3 million new spindles between FY16 and FY21 because of overcapacity, subdued demand and lower benefits from the central government after changes to the Technology Upgradation Fund Scheme (TUFS),” said Darshini Kansara, research analyst, Care Ratings. Demonetisation-induced cash crunch has forced the closure of smaller spinning mills; slow purchase from China has also forced manufacturers to lower operating capacity. Since 2014, Chinese policy of using its internal resources rather than imports, cotton yarn off-take from the northern neighbour has declined consistently. “The Indian cotton yarn market is experiencing overcapacity. Some large manufacturers had initiated their expansion plans but have put them on now,” said Rachin Lamba, head, exports, Winsome Yarns. After declining by 10 per cent in FY12, cotton yarn production increased more than 14 per cent year-on-year to 3,583 million kg in 2012-13. In 2013-14, production increased by about 10 per cent to 3,928 million kg. High cotton prices and easy availability of manmade fibres at competitive rates led to the slower growth of production of cotton yarn. Production grew by marginal 3-3.5 per cent in FY15 and FY16. According to the Office of Textile Commissioner, cotton yarn
By contrast,production was 4,138 million kg in 2015-16. cotton yarn production is estimated to fall by about 5-7 per cent to 3,936 million kg in FY17 on the back of sluggish derived (domestic yarn demand) demand with substitution taking place from manmade fibre as well as distressed direct yarn exports due to lower demand from China. Yarn demand in other export Whilemarkets including Vietnam, Bangladesh and Pakistan is likely to remain healthy. cotton yarn exports to China are estimated to remain sluggish, the surge in shipment to other destinations may, by and large, compensate for it. Data compiled by the International Cotton Advisory Council (ICAC) estimates India’s cotton yarn exports at 1,250 million kg for FY17 as against 1,309 million kg in FY16. Cotton yarn prices remained stable at Rs 217 per kg in December 2016 because of weak domestic demand on account of the demonetisation drive. However, the export demand of cotton yarn has been improving steadily.
Source: Business Standard
Risks to the global growth outlook are two sided but are assessed to be skewed to the downside, especially over the medium term. Economic activity in the advanced economies and emerging market and developing economies (EMDEs) is forecast to accelerate in 2017-18, with global growth projected to be 3.4 percent and 3.6 percent, respectively. “While the balance of risks is viewed as being to the downside, there are also upside risks to near-term growth. Specifically, global activity could accelerate more strongly if policy stimulus turns out to be larger than currently projected in the United States or China,” says the January 2017 Update of World Economic Outlook, released by the International Monetary Fund (IMF). If the support to activity from policy stimulus in the US and/or China turns out to be larger than what has been incorporated into current IMF forecasts, it would result in a stronger pickup of activity in their trading partners unless the positive spillovers are tempered by protectionist trade policies. Upside risks also include higher investment if confidence in the recovery of global demand strengthens, as some financial market indicators seem to suggest. “Notable negative risks to activity include a possible shift toward inward-looking policy platforms and protectionism, a sharper than expected tightening in global financial conditions that could interact with balance sheet weaknesses in parts of the euro area and in some emerging market economies, increased geopolitical tensions, and a more severe slowdown in China,” says the report. protectionist pressures could further intensify if global imbalances widen coupled with sharp exchange rate movements in response to major policy shifts, warns the report. Increased restrictions on global trade and migration would hurt productivity and incomes, and take an immediate toll on market sentiment. In those advanced economies where balance sheets remain impaired, an extended shortfall in private demand and inadequate progress on reforms (including bank balance sheet repair) could lead to permanently lower growth and inflation, with negative implications for debt dynamics. In some large emerging market economies, high corporate debt, declining profitability, weak bank balance sheets, and thin policy buffers imply that these economies are still exposed to tighter global financial conditions, capital flow reversals, and the balance sheet implications of sharp depreciations. In many low-income economies, low commodity prices and expansionary policies have eroded fiscal buffers and led in some cases to a precarious economic situation, heightening their vulnerability to further external shocks.Non-economic factors that could increase the risk of achieving the projected global growth include civil war and domestic conflict in parts of the Middle East and Africa, the tragic plight of refugees and migrants in neighbouring countries and in Europe, acts of terror worldwide, the protracted effects of a drought in eastern and southern Africa, and the spread of the Zika virus.
Source: Fibre2fashion
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$ 54.09 per barrel (bbl) on 18.01.2017. This was lower than the price of US$ 54.26 per bbl on previous publishing day of 17.01.2017.
In rupee terms, the price of Indian Basket decreased to Rs. 3674.91 per bbl on 18.01.2017 as compared to Rs. 3692.35 per bbl on 17.01.2017. Rupee closed stronger at Rs. 67.94 per US$ on 18.01.2017 as compared to Rs. 68.05 per US$ on 17.01.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on January 18, 2017 (Previous trading day i.e. 17.01.2017) |
Pricing Fortnight for 16.01.2017 (Dec 29, 2016 to Jun 11, 2016) |
|
Crude Oil (Indian Basket) |
($/bbl) |
54.09 (54.26) |
54.24 |
|
(Rs/bbl |
3674.91 (3692.35) |
3691.57 |
|
|
Exchange Rate |
(Rs/$) |
67.94 (68.05) |
68.06 |
Source: PIB
Cotton prices may touch ~43,000 a candy(355 kg) by the end of this month, due to short supply, rising export and demand from domestic mills. Prices have already increased 10 per cent to ~41,500-42,000 a candy in the past two weeks. According to sources, daily arrival is about 150,000 bales (a bale is 170 kg), against an expectation of 225,000 bales. Traders and ginners say farmers want cash rather than cheques and are holding the crop. “Prices have gone up due to hort arrivaland good demand from mills and exporters. It could rise further, as there is no hope for increase in supply in the near future,” said Bhagwan Bansal, president, Punjab Cotton Ginners Association. He expects prices torise to 43,000 a candy in the next onemonth if supply doesn’t improve. “Before October, several exporters booked orders for November and December but as arrivals are not sufficient, they have to buy at any price. Looking to the current scenario, they are not booking new orders for February and March,” said Arvind Pan, managing director, Jaydeep Cotton Fibers Ltd.
Source: Business Standard
A powerloom owner, whose unit had no electricity supply since the last five months, allegedly committed suicide today, police said. Atalluah Mohammad Yasim Ansari hanged himself from the celing of his house in the powerloom town of Bhiwandi near here, they said. Police have registered a case of accidental death. No suicide note was recovered, but according to reports the 42-year-old was upset as his unit had remained inoperative for more than five months after its power supply was cut by the electricity company. The company is said to have filed cases of power theft against him.
Source : Tecoya Trend
China issued regulatory rules on outbound investments by centrally controlled state firms, the state asset regulator said on Wednesday, the latest move by Beijing to tighten controls on money moving out of the country and stabilise a faltering yuan. The State-owned Assets Supervision and Administration Commission (SASAC) said it would step up supervision on outbound investments, two documents published on its website showed. The regulator also said it would establish a negative list of investment projects that centrally-controlled state firms would not be allowed to invest in, according to two statements published on the SASAC website. It was not clear if local government firms were excluded from the new rules. SASAC did not specify which industries would be included on the negative list. It also said firms must strengthen risk management and ensure the safety of their overseas assets. Companies’ annual investment plans must be submitted to SASAC by March 10. The yuan fell nearly 7 per cent last year — its biggest annual loss against the dollar since 1994 - under pressure from sluggish economic growth and a strong dollar. As part of efforts to stem capital outflows and stabilise the yuan, the central bank announced late in December that it would effect new rules on overseas currency transfers from July 2017. China’s outbound investment hit $170.1 billion in 2016, up 44.1 percent from 2015, China’s Commerce Ministry said on Monday. Of that total, overseas acquisitions and mergers by Chinese firms stood at $107.2 billion in 2016. Anxiety in markets has deepened in recent months as capital outflows picked up pace, forcing authorities to defend the currency and pushing foreign exchange reserves down to $3.011 trillion in December, the lowest in almost six years.
Source: Business Standard
The world economy expanded by just 2.2 per cent in 2016, the slowest rate of growth since the Great Recession of 2009, according to the United Nations World Economic Situation and Prospects (WESP) 2017 report. World gross product is projected to grow by 2.7 per cent in 2017 and 2.9 per cent in 2018, a slight downward revision from forecasts made last May. Although a modest global recovery is projected for 2017-18, the world economy has not yet emerged from the period of slow growth, characterised by weak investment, dwindling trade and flagging productivity growth, states the report.
Launching the report at the UN Headquarters in New York, Lenni Montiel, assistant secretary-general for Economic Development, United Nations Department of Economic and Social Affairs, underscored the “need to redouble the efforts to bring the global economy back on a stronger and more inclusive growth path and create an international economic environment that is conducive to sustainable development.” The moderate improvement expected for 2017-18 is more an indication of economic stabilisation than a signal of a robust and sustained revival of global demand. As commodity prices trend higher, commodity exporting economies are likely to see some recovery in growth. The report projects that growth in the developed economies will slightly improve in 2017, but headwinds arising from weak investment and policy uncertainty continue to constrain economic activity. Developing countries continue to be the main drivers of global growth, accounting for about 60 per cent of the world’s gross product growth in 2016-18. East and South Asia remain the world’s most dynamic regions, benefiting from robust domestic demand and supportive macroeconomic policies. The report identifies prolonged weak investment as a major cause of the slowdown in global growth. Many economies have experienced a marked downturn in private and public investment in recent years, particularly in the oil and extractive industries. In commodity-exporting countries, governments have curtailed much needed public investment in infrastructure and social services, in response to sharp revenue losses. At the same time, labour productivity growth has slowed markedly in most developed economies and in many large developing and transition economies. The report stresses the importance of investment in new capital as a driver of technological change and efficiency gains. In particular, it concludes that investment in key areas, such as research and development, education and infrastructure, can serve to promote social and environmental progress, while also supporting productivity growth. The report, however, cautions that the global outlook faces significant uncertainties and risks. A high degree of uncertainty is identified in the international policy environment and elevated foreign currency-denominated debt levels as key downside risks that may derail the already modest global growth prospects.
Source: Fibre2fashion
The United Kingdom will pursue free trade agreements with the EU and also with countries from outside the EU, Prime Minister Theresa May has said while setting out the Plan for Britain, including the 12 priorities that the UK government will use to negotiate Brexit. The agreement with the EU should allow for the freest possible trade in goods and services. “As a priority, we will pursue a bold and ambitious free trade agreement with the European Union. This agreement should allow for the freest possible trade in goods and services between Britain and the EU’s member states. It should give British companies the maximum freedom to trade with and operate within European markets – and let European businesses do the same in Britain,” May said in her speech. However, she was clear that her proposal of free trade agreement cannot mean membership of the single market. “We do not seek membership of the single market. Instead we seek the greatest possible access to it through a new, comprehensive, bold and ambitious free trade agreement.” An important part of the new strategic partnership that UK seeks with the EU will be the pursuit of the greatest possible access to the single market, on a fully reciprocal basis, through a comprehensive free trade agreement, May said. Speaking about forging new trade agreements with countries from outside the European Union, she said, “Since joining the EU, trade as a percentage of GDP has broadly stagnated in the UK. That is why it is time for Britain to get out into the world and rediscover its role as a great, global, trading nation.” “We want to get out into the wider world, to trade and do business all around the globe. Countries including China, Brazil, and the Gulf States have already expressed their interest in striking trade deals with us. We have started discussions on future trade ties with countries like Australia, New Zealand and India,” she said. UK is also “front of the line” for a trade deal with the US.May said she wants to remove as many barriers to trade as possible. “And I want Britain to be free to establish our own tariff schedules at the World Trade Organisation, meaning we can reach new trade agreements not just with the European Union but with old friends and new allies from outside Europe too.”
Source: Fibre2fashion
The Government of China has outlined measures to boost foreign investment, as part of an effort to build “a new open economic system” in the country. The government is planning to further streamline government administration, improve regulations and reduce business transaction costs to create a favourable business environment for foreign investment. “In order to implement the plan, the government decided to further push forward its opening-up policy, with efforts to revise the Catalogue for the Guidance of Industries for Foreign Investment, and further open the service, manufacturing and mining sectors,” the State Council said in a statement posted on its website. In addition, the government encouraged foreign investment to take part in the implementation of China’s innovation-driven development strategy and upgrades in the manufacturing sector, and encouraged foreign talent to start businesses in China, the statement said.
The “Made-in-China 2025” initiative also applies to foreign-invested enterprises, while encouraging them to pour more investment in high-end, intelligent and green manufacturing, the State Council circular said. Foreign investment is also encouraged to take part in infrastructure construction in energy, transportation, water conservancy, and environmental protection through franchising, it added. Meanwhile, the government called for creating a market environment of fair competition, which requires related departments to examine the business licenses and qualification applications of foreign-invested enterprises with the same standards and processing timetable as those for domestic-invested enterprises. The intellectual property of foreign-invested enterprises should also be protected, according to the document. The circular also called for more efforts to attract foreign investment, allowing local governments to form favourable policies to support foreign-invested projects that can facilitate employment, economic development and technology innovation, and reduce the costs for the investment and operation of foreign-invested enterprises. The central, western and northeast regions will receive support to undertake industrial transformation of foreign investment. In addition, foreign-invested enterprises in supported industries in western regions will enjoy preferential tax policies. The National Development and Reform Commission and the Ministry of Commerce will coordinate with related departments to strengthen supervision to ensure the implementation of these measures for foreign investment.
Source: Fibre2fashion
Phan Cao Thang, Permanent Vice Chairman of Binh Dinh People’s Committee, has authorised a plan to develop the province’s textile industry till 2025 with orientations to 2035. The key objectives of the plan are to build Binh Dinh’s textile industry into a key economic driver and one of the province’s chief high-quality export suppliers, to slowly synchronise production from input to output and to implement a global standard environment management system. Binh Dinh aims to become the central coastal region’s textile centre and to enhance the national textile industry’s performance and competitiveness within the region and the world. Between 2016 and 2020, the province is determined to increase growth in the textile industry’s production value to around 17.8 per cent. By 2020, the provincial total production value for the textile industry hopes to reach VND3.95 trillion (US$178.2 million), double that of 2015. Between 2016 and 2020, the region aims for a total export value of $495 million and new employment for 18,800 workers, up by 4,800 jobs compared to 2015. From 2021 to 2025, Binh Dinh province’s textile production value hopes to increase 13 to 14 per cent each year with the industry’s total value reaching VND7.4 trillion to VND7.8 trillion, total export turnover at VND780 million, up by 1.6 times compared to the period from 2016 to 2020 and create employment for 22.000 to 23.000 workers, up by 3.800 to 3.900 jobs from the previous phrase. Key products for the period 2016 to 2020 and 2021 to 2025 will include tracksuits, children’s clothing, business suits, dresses, uniforms and protective gear. Production quantity aims to increase to 51 to 53 million units in 2020 and up to 64 to 65 million units in 2025. As of 2016, Binh Dinh’s textile industry had produced 20 million units. Suits and uniforms had increased by 14.2 per cent, whereas knitwear increased by 312 per cent compared to the same period in 2015. In order to achieve these goals, the province has invested in the textile industry to support diversified production that can transition from simple manual labour to complete production chain vertical integration.
Source: VietNamNet.
Spanish apparel brand Mango has unveiled an adapted version of its ecommerce website for the Middle East market, which is one of the main markets for the brand. Along with adapting the local language of the region, Mango has also undertaken major improvements relating to the browsing experience, user friendliness and design in the adapted website. The brand has also initiated a new payment mechanism to make it easy for Middle East shoppers to make payments, which includes a virtual purse for each customer. Mango has also integrated a specific function into the website which simplifies purchase transactions. The Middle East region accounts for more than 7 per cent of the brand’s revenue, which is why, it started a special collection, taking the cultural and religious aspects into consideration of the market 10 years back. Mango operates an extensive store network spread over 800,000 sq. metres in 110 countries and reported sales of €2.327 billion in 2015.
Source: Fibre2fashion
The glorious silk sector of Bangladesh now is facing an embarrassing situation due to excessive price of foreign silk yarn and abnormal decline in its local production. At a joint meeting was called between members of International Sericulture Commission (ISC) and local stakeholders at board room of Bangladesh Sericulture Development Board (BSDB) in Rajshahi city on Monday. Both sericulture experts from home and abroad explicitly called for revitalizing the ailing silk sector by making best use of existing natural resources for strengthening the national economy. They added that both men and women, irrespective of age, could be used in the silk cultivation side by side with the manufacturing part. Sericulture together with its industrial side involves a huge number of people who depend on agriculture as an agro-based and labour-intensive industry. Taking part in the discussion, ISC Experts Dr Nirmal Kumar, Dr BS Angary, Dr Shiba Kumar, Dr SM Bokhtiar and Dr Tayan Raj Guru disseminated their expertise on the issue with BSDB Director General Anis-Ul-Haque in the chair. The discussants laid emphasis on elevating the sector for the sake of saving huge hard-earned foreign currencies which are spent for import of the silk yarn. Silk sector needs initiatives to retain the skilled laborers, especially the rearers, weavers and printers in the profession in the greater interest of the sector. There is no alternative to boosting local production to protect the sector. Liakat Ali said that importance should be given on farmer level transfer and dissemination of the high- yielding mulberry trees and silk-cocoons and other relevant technologies so far innovated in the laboratory researches. He laid stress on proper use of plant varieties and modern technologies at the growers' level that is very essential to attain cherished goals in this field. The silk industrialist mentioned that increased domestic production of yarn can help revitalise the traditional silk sector. BSDB Members Nazibul Islam and Kamal Uddin, Director of Bangladesh Sericulture Research and Training Institute Jamal Uddin Shah and President of Bangladesh Silk Industries Owners' Association Liakat Ali also spoke.
Source: Yarns and fibres
China's President Xi Jinping delivers a speech on the opening day of the World Economic Forum. ─ AFP China's President Xi Jinping delivers a speech on the opening day of the World Economic Forum. ─ AFP China's State Council, the country's Cabinet, issued on Tuesday new measures to further open the world's second-largest economy to foreign investment, including easing restrictions on investment in banks and other financial institutions. The move comes as President Xi Jinping seeks to project China as a leader in combating increasing global protectionism. Xi defended globalisation in a speech at the World Economic Forum in Davos on Tuesday amid mounting public hostility in the West. China itself, however, has been the target of complaints from foreign business groups who have criticised its slow pace of market reforms and say its national security regulations and industrial policies are at odds with its reform goals. The Cabinet said in a statement posted on its website that China would lower restrictions on foreign investment in banking, securities, investment management, futures, insurance, credit ratings and accounting sectors. No further details were provided, nor a timetable for their implementation. The country's state planner had indicated at the end of last year that China would take measures to relax foreign investment in certain sectors. The government will also allow foreign-invested firms to list on the Shanghai and Shenzhen exchanges and a new third board, and also allow them to issue corporate and convertible bonds, it added. The Cabinet said the measures were intended to create a “fair and competitive” environment that puts “domestic and foreign companies on an equal footing.” “The devil is always in the details,” said Arthur Kroeber, partner of Gavekal Dragonomics. “How the rules get implemented will be very important.” Restrictions on foreign investment in telecommunications, internet, culture, education and transportation sectors will be opened “in an orderly way”, the State Council said. The measures will also cancel restrictions on foreign investment in the manufacture of rail equipment, motorbikes, fuel ethanol, and oils and fats processing, while easing restrictions on unconventional gas, including oil shale, oil sands and shale gas, and mineral resources. Foreign investment in oil and natural gas projects will shift from an approval based system to a registration system, the notice said.
Source: Reuters
The silk industry in Laguindingan seeing rise in local demand in the recent months aims to upgrade its resources and silk weaving skills among weavers. They are looking at recruiting more silk weavers and upgrade the skills of the regular weavers to cope with the demand, said Judy Aclan, development specialist of the Department of Trade and Industry in Misamis Oriental. Aclan admitted that after President Rodrigo Duterte tapped Mimi Pimentel to design his inaugural barong weaved by the Abai weavers, the demand has suddenly spiked. The buyers have suddenly increased after people learned that the Laguindingan weavers weaved pure silk barong. Their market spread, many walked in and ordered, so they reached the point where they can't keep up with the demand because they are only 20. To date, the Ayala Beneficiaries Association Incorporated (Abai) Weavers Multipurpose Cooperative has 20 weavers, of which, only 15 are active, and only two are considered "master weavers." After the president's inauguration, a directive from the Office of the President was sent to the government line agencies in Cagayan de Oro City and was told to promote and prioritize the development of the silk industry in Misamis Oriental. A technical working group was formed, headed by Misamis Oriental Governor Yevgeny Vincente Emano, to create a strategic planning to boost the silk industry. The short-term goal is to train and add more weavers and upgrade the skills of the regular weavers in order to cope with the demand, Aclan said. About 20 people have expressed interest for the 15-day basic training of weaving to be conducted by the Technical Education and Skills Development Authority (Tesda). Aclan said that they are also eyeing to expand weaving communities in other municipalities, not only in Laguindingan, but also in Claveria, Gingoog, Balingasag, particularly in the hinterland areas. The long-term goal is to establish a complete value-chain in the silk industry in the city, which means the province, will acquire the machinery to supply for a bigger market. They are looking for an establishment of a silkworm farm or a plant here, just like in Bago City, Negros. Hopefully someday, they are equipped here to do the processes like moriculture, sericulture, then enhanced weaving, she said. Financial support has also been poured out by local government officials to the Laguindigan weavers. Governor Emano said that one of the challenges of the cooperative in silk production is the lack of resources. Initially, the Provincial Government has extended an initial of P50,000 as financial aid to the Abai weavers for additional capital and vowed to assist the group in the infrastructure projects in the future.
Source: Fibre2fashion
