|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1272.08 |
USD/Ton |
0% |
2/8/2017 |
|
VSF |
2438.02 |
USD/Ton |
0% |
2/8/2017 |
|
ASF |
2122.55 |
USD/Ton |
0% |
2/8/2017 |
|
Polyester POY |
1308.42 |
USD/Ton |
0% |
2/8/2017 |
|
Nylon FDY |
3489.12 |
USD/Ton |
1.27% |
2/8/2017 |
|
40D Spandex |
4724.85 |
USD/Ton |
0% |
2/8/2017 |
|
Polyester DTY |
3663.58 |
USD/Ton |
0.80% |
2/8/2017 |
|
Nylon POY |
5518.62 |
USD/Ton |
0% |
2/8/2017 |
|
Acrylic Top 3D |
1519.22 |
USD/Ton |
-0.48% |
2/8/2017 |
|
Polyester FDY |
3271.05 |
USD/Ton |
1.35% |
2/8/2017 |
|
Nylon DTY |
2297.00 |
USD/Ton |
0% |
2/8/2017 |
|
Viscose Long Filament |
1613.72 |
USD/Ton |
0% |
2/8/2017 |
|
30S Spun Rayon Yarn |
3096.59 |
USD/Ton |
0.71% |
2/8/2017 |
|
32S Polyester Yarn |
1904.48 |
USD/Ton |
0.77% |
2/8/2017 |
|
45S T/C Yarn |
2689.53 |
USD/Ton |
0.54% |
2/8/2017 |
|
40S Rayon Yarn |
2020.78 |
USD/Ton |
2.21% |
2/8/2017 |
|
T/R Yarn 65/35 32S |
2253.39 |
USD/Ton |
0.65% |
2/8/2017 |
|
45S Polyester Yarn |
3227.44 |
USD/Ton |
0.91% |
2/8/2017 |
|
T/C Yarn 65/35 32S |
2297.00 |
USD/Ton |
0% |
2/8/2017 |
|
10S Denim Fabric |
1.34 |
USD/Meter |
0% |
2/8/2017 |
|
32S Twill Fabric |
0.83 |
USD/Meter |
0% |
2/8/2017 |
|
40S Combed Poplin |
1.16 |
USD/Meter |
0% |
2/8/2017 |
|
30S Rayon Fabric |
0.66 |
USD/Meter |
0% |
2/8/2017 |
|
45S T/C Fabric |
0.66 |
USD/Meter |
0.22% |
2/8/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14538 USD dtd. 08/02/2017)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
CHANDIGARH: Keen on making Haryana a global hub of textile manufacturing and a preferred investment destination the state government has drafted a new textile policy to incentivise setting up of new units and ensuring growth and modernisation of the existing textile industry. The policy is full of fiscal incentives and contains provisions for infrastructure augmentation setting up of textile parks and facilities for skill training an official spokesman said here. It aims at generating 50 000 new jobs by attracting investment in the textile sector to the tune of Rs 5 000 crore. The draft policy has been put in the public domain and the government has sought suggestions from the stakeholders up to February 28 which will then be factored in. “The policy has been formulated with an eye on the cotton belt of Haryana. The state is one of the leading cotton producers in the country with Sirsa Fatehabad Bhiwani Hisar and Jind being the main cotton producing districts ” he said. The policy proposes capital subsidy of 10 per cent for the eligible new projects of all textile enterprises across the state. “The draft policy aims at positioning Haryana as a preferred destination for global textile majors. It aims to boost textile exports by compounded annual growth rate (CAGR) of 20 per cent during 2017 ” the spokesman added reports PTI. Under the policy HSIIDC will offer industrial plots for a lease of 33 years with 5 per cent increase in annual lease rent. Besides panchayat land will also be made available on lease for industrial development. The government will also facilitate setting up of a textile park at Hansi in Hisar district. The park shall house weaving sizing and garmenting enterprises to augment the already strong existing infrastructure for ginning and spinning. For the khadi industry the government plans to facilitate retail space at nominal rates. Locations such as famous tourist spots places with heavy footfall such as airports and retail hubs are proposed to be explored for such opportunities he added.
Source: Tecoya Trend
The government today said the manufacturing sector has received FDI equity inflow worth USD 16.13 billion during April-November period of this financial year. "The FDI equity inflow received in manufacturing sector during 2016-17 (upto November, 2016) is USD 16.13 billion. It shows an increase of 82 per cent compared to corresponding period of previous financial year (USD 8.85 billion)," Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Rajya Sabha. She also said that FDI has increased by 48 per cent in November 2016 (USD 6.07 billion) compared to 4.10 billion in the same period last year. In a separate reply she said, to promote foreign direct investment, government has put in place an investor-friendly policy, wherein except for a small negative list, most sectors are open for 100 per cent FDI under the automatic route. "Further, the policy on FDI is reviewed on an ongoing basis, to ensure that India remains attractive and investor friendly destination," she said. Changes are made in the policy after having intensive consultations with stakeholders including apex industry chambers, associations, representatives of industries and other organisations taking into consideration their views and comments, the minister added.
Source: The Economic Times
The Tirupur Exporters' Association (TEA) today said the Reserve Bank of India's decision to keep the repo rate unchanged at 6.25 per cent has disappointed the exporting community, which was expecting a reduction in interest rate, post demonetisation. He expressed hope that the Monetary Policy Committee, RBI would consider the industry’s request in the first bi monthly policy next year and that it would be impetus for the sector. (Reuters) The Tirupur Exporters’ Association (TEA) today said the Reserve Bank of India’s decision to keep the repo rate unchanged at 6.25 per cent has disappointed the exporting community, which was expecting a reduction in interest rate, post demonetisation. The reduction in interest rate is the most important at this juncture to increase the competitiveness of apparel sector at a time when the export growth rate is a meagre 3.54 per cent for the nine months period of this fiscal year 2016 -17, TEA president, Raja M Shanmugham said in a statement. “The sixth bi-monthly Monetary Policy statement for the year 2016-17 today announced that it has maintained the repo rate at 6.25 per cent, which is disappointing to the exporting community,” he said. In the Economic Survey 2016-17, first time a chapter was allocated to apparel, leather and footwear considering their contribution to the economy, exports and employment and added that the growth of this employment intensive sector could be possible only when they get borrowings at lower rate, he pointed out. Shanmugham further said that it was the right time for the knitwear sector to capture the market leaving from China, due to increase in cost of manufacturing and specifically noted “once we miss the bus, those market will be dented by our competing countries like Bangladesh, Vietnam, Indonesia and Cambodia.” He expressed hope that the Monetary Policy Committee, RBI would consider the industry’s request in the first bi monthly policy next year and that it would be impetus for the sector.
Source: The Financial Express
Farmer leader calls it govt plan to help private players claims farmers have already sold their produce at low prices The arrival of cotton in the district has witnessed a little increase this year. A Tribune photograph Bathinda : The rise in cotton prices hardly seems to have brought cheer to the farmers this year. The prices have increased by more than Rs 1,000 per quintal this month. The cotton farmers got Rs 5,100-5,400 per quintal in December. The prices witnessed fluctuation in January and have rose to Rs 6,050 per quintal at present. In February last year, the maximum price for BT cotton was Rs 4,690 per quintal and the minimum was Rs 4,300. This year, the maximum price is Rs 6,005 and the minimum is Rs 5,000. Last year till February 6, around 3,82,432 quintals of cotton was purchased whereas this year till February 6, 5,62,585 quintals of cotton has been purchased by private players. In comparison to the last year, the arrival of cotton in district this year has witnessed only a small rise with 3,261 quintals of cotton arriving on February 6 whereas it was 3,050 quintals on February 6, 2016. The cotton is being purchased from grain markets of Bathinda, Rampura, Bhucho, Goniana, Maur, Rama, Sangat, Bhagta Bhaika, Talwandi Sabo and Nathana blocks of the district. The arrivals are expected to continue till April this year.The CCI is expecting the arrival of 8.90 lakh bales in Punjab. The Union government has announced the minimum support price (MSP) for cotton, which is grown widely in Punjab, at Rs 4,060 per quintal. “Nearly 4,000 bales are arriving in mandis every day on an average. In comparison to the last season, both the arrival and price of cotton has witnessed an increase,” said district mandi officer, Bathinda, Kuldip Singh Brar. In 2015-16, a number of farmers committed suicide following 70 per cent damage to the cotton crop in the entire cotton belt of Punjab. The farmers had then alleged that whitefly could not be controlled despite using the government recommended pesticide Oberon as they claimed that it was spurious. The government conducted raids at pesticides shops and godowns and found spurious pesticides being sold to farmers. A number of pesticide samples were collected that couldn’t pass the tests. The state government then also suspended its agriculture director Mangal Singh Sandhu over the alleged scam of pesticides and registered a case against him. Farmers then launched an agitation demanding compensation to the families of farmers who committed suicide, besides compensation of Rs 40,000 per acre to every farmer whose crop suffered damage due to the whitefly attack. The government announced Rs 8,000 per acre as compensation. Compensation to farm labourers was also announced but a large number of them could not get it. Bhartiya Kisan Union (Ugrahan), Bathinda president, Shingara Singh Mann, said, “Private players, who have already purchased cotton from farmers when the prices were low, will make profits. It’s the plan of the government to ruin the farmers. Initially, the prices were low and when all cotton has been purchased from farmers, the prices have increased. There might not be a single farmer who has not sold his cotton yield.”
Source: The Tribune
Union Textiles Minister Smriti Irani will chair a meeting on Friday to discuss issues related to the development of Indias silk industry with the stakeholders. The meet is being organised by the Central Silk Board and will deliberate on the present status, plans, programmes and challenges ahead in the silk sector, and inter-ministerial issues, in order to bring about better synergy to ensure sustained development of the Indian silk industry. "It is expected that the outcome of the stakeholders meet will provide useful inputs for the National Textile Policy, which is under finalisation," Textiles Ministry said.
Union Finance Minister Arun Jaitley, Minister of Agriculture Radha Mohan Singh, Minister for Science & Technology Harsh Vardhan, Minister for Rural Development, Panchayat Raj Narendra Singh Tomar and Union Minister of State (I/C), Environment Anil Madhav Dave have been invited to grace the occasion. The meet will be attended by nearly 150 delegates including seri-farmers, seed cocoon growers, Chawki rearing centres, reelers, Automatic Reeling Machine entrepreneurs, retailers and exporters (both form Mulberry and Vanya sectors), besides senior officers from various union ministries, State Sericulture Departments, Bankers, CSB, NABARD, NIFT & NID. PTI RSN MKJ
Source: India Today
He further said that traders from south India, who account for more than 25% of sales,
Traders suffer loss up to 30% SURAT: Demonetization has severely affected Surat textile trade. Sale of saris and dress materials has gone down significantly this marriage season with traders suffering loss up to 30%. Manoj Agarwal, president of Federation of Surat Textile Traders Association (FOSTTA) said, "There is no sale on the retail front. Garments like dress material and saris are last on the priority list. Those who have marriages in their families also spend minimum on saris." too are not buying the material. "Traders from south are buying less since Diwali due to cash crunch and the same is the case with traders from Delhi and Punjab Kamal Vijay Tulsiyan, a textile processor and president ofwho have heavy demand for our dress material. Their orders have also gone down by 50%," added Agarwal. Surat with 165 textile markets, mostly spread around Ring Road, has 65,000 shops and according to an estimate average business per day is Rs 100 crore. Pandesara Associationsaid, "Normally, Surat produces 4 to 5 lakh metres of cloth every day, but these days production is only 50%. The main reason for that is no one buys in bulk and stores it in godowns these days. Traders from across the country who come to Surat and buy saris and dress material are buying as per their daily requirements." The trade during marriage season this year nearly halved 50% of the normal as there are questions over availability of cash.
Source: The Times of India
CHANDIGARH: Premium lingerie brand amante is planning to expand its footprint across the country by opening 20 more exclusive outlets this year as part of its efforts to clock a turnover of Rs 150 crore by 2018. “We are planning to open 20 more outlets by the end of this year ” Smita Murarka Head- Marketing & E-commerce MAS Brands India said. The brand amante which sells premium lingerie sleepwear sportswear and swimwear has seven stores in Mumbai Jaipur Noida Lucknow Bengaluru and Chandigarh. “We have opened the brand’s biggest store at a mall in Chandigarh and it is our seventh store ” she said. Though she refused to divulge any details regarding capital outlay on opening more stores she said this premium segment was growing at a rate of 20 to 25 per cent per annum. “This brand is now worth Rs 100 crore. We have doubled our business in the last two years. We are growing at 20 per cent which is still quite healthy considering how last few months have been ” she said. The brand has set a target to attain turnover of Rs 150 crore by year 2018. “We are looking at a growth of around 50 per cent in one-and-a-half years. We are targeting a turnover of Rs 150 crore by year 2018 ” she said. “We are looking to grow in all markets right up to tier II markets ” she said. She said the brand is also available at 1 200 multi-brand outlets across the country.
Source: Tecoya Trend
From the rich heritage of handlooms to an endless resource of craft knowledge, India possesses a great history in textiles. Going by the current norms, there is a burgeoning sense of pride in the Indian fashion industry, especially in indigenous textiles and techniques. The sari has again become a coveted piece for modern women, going beyond occasions. There is a wave of designers reinterpreting handlooms in creative and contemporary fashion. Patola and Maheshwari weaves are being constructed into modern shirt-dresses. Indian designers are starting to realise that if we really want to have an original voice, we need to believe in what is truly ours while staying relevant. Quality and authenticity at fore Time is rife to be a part of the fashion industry. Today it’s all about quality and authenticity. Over the next decade, the market might start understanding that a designer garment does not always have to be over-the-top. A good fit flatters your body structure it needn’t cling to it. People may ironically wear a heavily embroidered jacket to work and a plain silk sari to their best friend’s wedding. Things are changing, and this is only the beginning. At the moment, the market is in a confused state. Many Western high-street brands are entering the market at a time when people are struggling to understand what ‘designer clothing’ actually means. It is relatively easy to start a fashion label in our country to keep one going and survive in the business, beating back the competition, is a different story altogether. By the next decade, only brands with a unique point of view and good quality will stand out. India’s positioning in the global market India has emerged as an important market in global fashion—economically and culturally. The West, looking for freshness, is intrigued by what’s happening in the East. The world finds our culture and heritage charming but whether they trust us with the contemporary translation of heritage ideas isn’t certain. To reassert its creative leadership, India will become more decisive as a fashion voice in the next decade. The perception of Indian fashion design has already started shifting in a positive direction. Earlier, we were taken seriously only for our wedding- or occasion-wear. Now, some of us are considered to be on a par with international brands for luxury prêt. Yet we are essentially known more for our manufacturing skills than for design. While technology will play an important role in the industry, people will explore history to decode the future. Reigning e-commerce E-commerce will play an important role and digital presence will become more important than an offline presence. Fashion will start moving beyond the big cities to tier II and tier III towns in the next decade. Local labels like Fabindia, Anokhi et all will set new standards—Indian standards of excellence and quality. Over the next 10 years, there will be rise of alternative fashion journalism and experimental zines. New voices will emerge through visual language. With changing paradigms, jobs in the industry will grow beyond the primary roles of designer, supplier, stylist. At the moment, every fashion graduate wants his/her own label. The next generation will be smarter, it will dig up ‘in-between’ roles such as editing collections for brands or being an expert in colours, becoming a concept consultant or a sustainability adviser, starting a wholesale agency or taking care of business development. They might identify the missing links pivotal to the success of fashion brands of the next decade. Over-intellectualising fashion will continue, though many of us may not know what it means to be ethical or sustainable or historians or purists.
Source: Fashion United
TUV SUD German safety and quality expert TÜV SÜD has announced that it will organise a series of knowledge sharing sessions for the textiles and fabric sector. The knowledge sharing sessions will be in the form of seminars at select locations in India and Bangladesh and through digital platforms like webinars and technical guidance mailers for a larger audience. The seminars will be conducted every month in Tiruppur, Bengaluru and Gurugram in India and Dhaka in Bangladesh. The seminars and webinars will focus on the common issues faced by manufacturers and buyers from the textile sector across India and Bangladesh. The sessions will aim at helping manufacturers to overcome the practical issues on RSL testing, physical testing and root cause analysis to name a few. TÜV SÜD supports safety and quality requirements of textile and fabric manufacturers while helping brands to minimise costs with its testing, inspection, certification, training and knowledge services. TÜV SÜD specialises in services like fabric testing, analytical testing, apparel inspection and final random check. Across the globe, TÜV SÜD works with leading internationals brands of repute to help them focus on quality. Their state-of-the-art consumer testing laboratories and consumer testing services ensure apparel and fabric products manufactured and retailed are of the finest quality. At a technical level, TÜV SÜD also offers factory audit services and factory inspection services to address integral aspects in manufacturing such as efficiency and maintenance. TÜV SÜD also provides advisory services to textile manufacturers in India to drive product innovation, process and production management across the textile value chain from fibre to garment. It follows a multi-pronged approach towards quality, safety and efficiency in textile manufacturing. TÜV SÜD’s Research and Development Advisory Service includes a team of global experts who deliver customised safety and quality solutions for Indian textile manufacturers.
Source: Fibre2Fashion
Cotton is produced in around 80 countries worldwide on an average of 33 million hectares, or 2.5 % of the world’s arable land. Cotton is one of the most important crops in the world, alongside cereals and soya beans. More than 250 million people around the world live from cotton farming. Agriculture always leaves behind traces in the environment but many years ago, the cotton industry already started to keep these traces as minimal as possible. With success. So, does cotton consume a lot of water? The answer is no, because much has happened here. No living creature can exist without water and plants also need water to grow. Experts know that cotton is even a drought- and heat-tolerant crop. Only in the rearing phase does it need sufficient irrigation. In the growth and flowering phase, on the other hand, it needs little additional moisture and much sunlight. To produce foodstuffs and natural fibres, agriculture consumes about 70 per cent of the water available in the world. Of this, only about 3 per cent is used in cotton production. Around 40 per cent of the cotton crop is grown without irrigation and relies entirely on natural rainfall. The demands on water requirements are, however, very varied. They are dependent on the region where the cotton is grown, the cultivation period, the prevailing climate, as well as the irrigation methods and production targets. Moreover, in the case of artificial irrigation, which also offers farmer higher yields, water is now regarded as a precious commodity and is used selectively in many cotton growing countries. Intelligent water consumption uses computer-controlled irrigation systems, droplet irrigation in the ground or demand-dependent furrow irrigation. This avoids water losses due to evaporation. The soil moisture is preserved by low soil cultivation and mulching. For example: Compared to the last 20 years, American cotton farmers have been able to increase the efficiency of water consumption by about 80 percent through artificial irrigation. Australia is reporting a productivity increase in water consumption of 40 percent. Israel is also seen as a pioneer of exemplary irrigation management. Drip irrigation methods were already being used here as early as the nineteen seventies. Approximately 75 percent of cotton farmers use clarified and reprocessed water from water storage and water consumption in cotton growing has been reduced by 30 percent. Currently, agricultural researchers are working on the development of cotton seed for plants with increased drought tolerance which still meets the quality requirements of their customers.
Source: Texdata.
The Reserve Bank of India unexpectedly left its key policy rates unchanged and signalled the end of its rate-cut cycle as it moved to keep inflation under check. The RBI has been keeping a close watch on the increasing prices of global commodities, such as crude oil and base metals, and a strengthening dollar. The central bank said this could trigger inflationary conditions in the domestic economy. RBI Governor Urjit Patel said “clouded” data after demonetisation had also made it difficult to have a clear assessment of the macroeconomic situation. The apex bank shifted its monetary policy stance from ‘accommodative’ to ‘neutral’. All six members of the rate-setting monetary policy committee (MPC) voted in favour of leaving the policy repo rate unchanged at 6.25 per cent. In the previous policy review too, the rate was kept on hold. Explaining the decision, Patel said: “In this policy review, a clear assessment of the evolving macroeconomic configuration, at least in the short-run, remains clouded by the transitory effects of demonetization.” “On the inflation front, transient factors, including anecdotal evidence on fire sales of perishables, have discoloured an objective assessment of inflation pressures. For example, if vegetables are excluded, CPI (consumer price index) inflation would exceed the Central Statistical Organisation’s official print for the month of December, which was 3.4 per cent, by as much as 140 basis points.” The Governor said the shift in stance to ‘neutral’ is aimed at meeting the inflation target of 4 per cent.
Banks can cut lending rates
Patel emphasised that banks still have scope to cut lending rates. He reasoned that while the RBI had cut the repo rate cumulatively by 175 basis points since January 2015, banks’ weighted average lending rate had come down by only about 80-95 basis points, at the most. The MPC, Patel said, believes that the environment for timely transmission of policy rates to bank lending rates will be considerably improved via quick resolution of bad loans, speedier recapitalisation of public sector banks and full implementation of the formula for determining interest rates on small savings. SBI Chairman Arundhati Bhattacharya said: “The RBI view is right that monetary policy transmission will improve further if NPAs are resolved, capital position of banks improves and small savings rates are more market driven. Regarding the change of stance from accommodative to neutral, it may be a little early to shift the stance.”
Source: Business Line
The Reserve Bank of India’s sixth bi-monthly monetary policy for 201617 will have surprised most onlookers. Strong hopes had been expressed — hopes hardening, in fact, to near confidence — that RBI would cut the policy rate by at least 25 basis points (a quarter of a percentage point). However, the central bank, in fact, did no such thing. Not only did it hold the policy repo rate constant at 6.25 per cent, it also indicated that the monetary policy stance was now neutral, rather than accommodative. The decision was taken with the support of all six members of the Monetary Policy Committee. The caution is to be commended. While the economy’s macroeconomic indicators are not flashing red, and the Union Budget appeared to have kept the fiscal deficit under control, there are significant questions about the future that should nevertheless be asked. RBI was right to point to significant uncertainties in the future path of inflation and growth, such as the possibility of an increase in crude oil prices and the effects of the Seventh Pay Commission award. RBI is now, following an agreement with the Centre, focused strictly on targeting consumer price inflation and, as it correctly pointed out, non-fuel and non-food inflation continues to be sticky in spite of a decline in the overall rate of inflation. This suggests that inflation expectations continue to be higher than RBI can be comfortable with. Any cost-push shock to prices could, therefore, have a cascading effect, causing the central bank to miss its stated inflation target of four per cent. Given this context, it might have been far too optimistic to expect RBI to cut rates. Most of the expectations of a rate cut were centred around the fact that private investment continues to be depressed, and that lending to industry has sharply slowed. RBI recognises this problem with financing in its statement. However, it argues later that it is not rates that are necessarily the constraint. It points out that “timely transmission” of the policy rates to banks’ lending rates needs the banks’ non-performing assets issue to be more swiftly addressed, and banks to be given greater security in terms of recapitalisation. It is difficult to read this as anything other than a suggestion that RBI feels it cannot use monetary policy to revive growth, even in the shadow of the demand destruction caused by demonetisation, when the transmission mechanism is so faulty. To revive investment, the government must address the banks’ problems with greater urgency. RBI was in general optimistic about the economy’s bounce-back from the shock of demonetisation. While it did not sugar-coat the impact of the measure on some sectors, it nevertheless forecasts growth in gross value added at 6.9 per cent this financial year and a “sharp recovery” to 7.4 per cent in 2017-18. Taken together with the news that withdrawal limits are planned to be relaxed to ~50,000 a week from February 20 and completely removed after March 13 , this suggests that the transient effects of demonetisation are passing relatively quickly, which is good news. However, the underlying problems of the economy remain, and it is up to New Delhi to deal with them post-haste.
Source: Business Standard
The estimates of indirect taxes foregone in fiscal year 2015-16 are down sharply — by almost 70 per cent — Budget documents have shown. The fall is due to a change in the treatment of concessions to payers of excise and customs duty, and a new methodology to calculate the revenue impact of these incentives. Last year’s Budget documents had projected that the revenue impact of tax incentives on excise and customs duty for fiscal 2015-16 would be ₹4,82,489 crore – ₹2,24,940 crore due to excise concessions and ₹2,57,549 crore due to customs concessions. That estimate has now been revised down to ₹1,48,442 crore in the 2017-18 Budget documents — ₹79,183 crore due to excise concessions and ₹69,259 crore due to customs concessions. Projections for fiscal year 2016-17 put the impact of indirect concessions at a marginally higher ₹1,54,822 crore, with excise concessions declining slightly to ₹76,844 crore and customs concessions rising nearly 13 per cent to ₹77,978 crore. Under the new methodology, adopted by the government and explained in the 2017-18 Budget documents, the Centre has differentiated between “conditional” and “unconditional” exemptions. Unconditional exemptions will no longer be considered for the purpose of calculating revenues foregone or the revenue impact of tax incentives. Unconditional exemptions in the case of customs duty include lower import duties in the case of bilateral preferential trade agreements with various nations. These lower tariffs amount to sovereign commitment and are therefore treated as de facto tariffs. The revenue impact due to unconditional exemptions of basic customs duty, countervailing duties and special additional duties on specific commodities, tax neutralisation of exports and exemptions for reimports and temporary import will also no longer be counted to estimate revenue foregone. “Unconditional exemptions prescribe effective rates of duty for a commodity, applicable to all imports of that commodity, without any conditions. In such cases, the tariff rates lose their significance, as all the imports of that commodity come at such prescribed effective rate. In other words, such unconditional exemptions in effect prescribe de facto tariff rates for the commodity concerned,” the government has explained in the statement on ‘Revenue impact of Tax incentives under the Central Tax System’. This statement was known as the ‘Revenue Foregone Statement’ till 2014-15. Similarly, in the case of excise duty, revenue impact of unconditional exemptions allowed through special exemption orders will not be counted as revenue foregone. “Accordingly, the rates imposed by unconditional notifications have been considered as de facto tariff rates,” the statement added.
Direct taxes untouched
There is no change in the estimation of revenue foregone for direct taxes – personal income tax and the corporate income tax. Revenue impact of exemptions to individuals and businesses for 2015-16 was estimated at ₹1,38,658 crore in the 2017-18 Budget documents and for 2016-17 at ₹1,63,526 crore. The combined total revenue foregone on direct and indirect taxes for 2015-16 is now estimated at ₹2,87,100 crore and for 2016-17 at ₹3,18,348 crore. In comparison, the revenue receipts from income taxes on individuals and business, excise duties and customs duty for 2015-16 were estimated at ₹12,39,276 crore and for 2016-17 at ₹14,51,466 crore.
Source: Business Line
Viewing western television channels such as CNN and BBC is fascinating, listening to scathing comments about President Donald Trump and his seeming eccentricities, prejudices and his stereotyping of countries and peoples across the world. Trump is, however, merely reflecting the concerns and anger that whites across the US, whose lifestyles have been shaken by losing employment, feel about globalisation, as industrial facilities migrate to distant shores. Such people also feel under siege from perceived threats from “radical Islamic terrorism”. What is missed out, however, is that Trump has already won support from oil- rich Sunni Arab countries such as Saudi Arabia and the UAE, by backing them against Iran and asking Israel to go slow on settlements in occupied Palestinian lands. What remains is for Trump to show the same foresight in dealing with Iran. In these circumstances, India needs to pay greater attention to seeing what it needs to do in its eastern neighbourhood, extending across the Bay of Bengal, the Straits of Malacca and the South China Sea.
Changing times
Our ‘Look East’ policies now need careful review, as they were crafted in an era when the Asia-Pacific was the fastest growing region in the world. We were able to conclude free trade and comprehensive economic cooperation agreements with ASEAN members, who were united in their approach to the outside world, apart from strengthening ties with Japan and South Korea. The US, under President Obama, followed suit, participating actively in ASEAN Summits together with India, China, Japan, South Korea, Australia and New Zealand. Things, however, started changing as an increasingly assertive China started defining its maritime frontiers in an outrageous manner, provoking tensions with its maritime neighbours — Japan, Taiwan, South Korea, Vietnam, the Philippines, Malaysia, Brunei and Indonesia. China used its economic muscle to entice countries such as Cambodia and Laos and drive a wedge between ASEAN members on how to deal with Beijing’s territorial ambitions. Military was used to reinforce its claims on Vietnam and the Philippines.
TPP after beyond
Given the Chinese assertiveness, the Obama administration responded by its “pivot to Asia”, strengthening military ties and naval presence across the Asia Pacific. Crucially, the US challenged China’s economic prowess by fashioning a Trans-Pacific (Economic) Partnership (TPP) to facilitate trade and investment ties across the Asia Pacific. The TPP included the US, Canada, Mexico, Chile, Peru, Japan, Australia and New Zealand, together with ASEAN members Singapore, Malaysia, Brunei and Vietnam. There were clear indications that the Philippines, Laos, Thailand, Indonesia and Cambodia would join the TPP in due course. Given the vast size of the US market and the opacity in Chinese trade and economic policies, the US was set to lure these countries away from excessive dependence on China. One of Trump’s first actions after assuming office was to annul the TPP, manifesting his aversion to further trade liberalisation. This is going to have serious implications across and beyond our eastern shores. There have already been growing concerns in East and Southeast Asia over growing Chinese economic and military power, amidst increasing manifestations of emerging American isolationism. While Beijing was excluded from the TPP, it has been working to promote a Regional Comprehensive Economic Partnership Agreement with ASEAN and its dialogue partners, including India. This would involve the entire Indo-Pacific Region becoming a Free Trade Area, which China would inevitably seek to dominate. More importantly, a number of ASEAN members including long-term American military allies are showing increasing signs of nervousness about getting drawn into the vortex of American-Chinese rivalries. Despite Chinese maritime boundary claims and occupation of its Scarborough Shoal, a nervous Philippines leadership has sought to befriend China and appear neutral, with its defence minister Lorenzana proclaiming: “We have to remind our friends, firmly if necessary, not to use ASEAN as a proxy for their rivalries”. Malaysia has expressed similar sentiments. Cambodia recently cancelled military exercises with the US. Most importantly, Thailand, a long-term American military ally, is now set on purchasing Chinese submarines and other defence equipment. Myanmar is similarly being coerced to toe the Chinese line by Chinese pressures through trans-border insurgencies, on Beijing’s borders with Myanmar’s Shan and Kachin States. Moreover, ASEAN is itself, for the first time, internally coming under strain, with countries like Indonesia and Malaysia taking exception to alleged killings of Rohingya Muslims in Myanmar. Beijing has, meanwhile, rolled out the red carpet for Vietnam’s Communist Party chief Nguyen Phu Trong. The collapse of the TPP is welcome in New Delhi, whose competitive edge in the US would have been eroded. There is no way that India could have, anytime in the near future, accepted the American imposed conditionalities on issues such as labour standards, intellectual property rights and arbitration. New Delhi has now to see how best it can influence the direction of negotiations on the RCEP, so that its concerns on inclusion of the service sector and lack of transparency in Chinese policies on the exports of India’s goods and services are met. We should not remain isolated from the emerging security and economic architecture to our east.
Our plan
US Secretary of State Rex Tillerson, Defence Secretary James Mattis and Trump himself have reasons to be seriously concerned over China’s policies across its maritime frontiers. While Mattis has already affirmed American commitment to Japan’s security, Tillerson is obviously concerned about China’s maritime claims on Vietnam, where Exxon has interests in off shore drilling and exploration.
Source: Business Line
Showing the way to the Centre, the Rajasthan government is set to open the country’s first government-run Skills University. The state promulgated an Ordinance in this regard recently and officials are hopeful that it could start courses later this year. “The ordinance has just been promulgated. The Vice-Chancellor will soon be appointed and the Board will be set up. They will take forward the work for setting the curricula and the courses,” said an official familiar with the development, adding that land and funds for the university had already been allocated. Apart from advanced courses, the university is also expected to enhance a worker’s self-respect and competency by providing him or her with formal certification. “Skilling courses don’t often get the same respect as given to traditional college courses such as a BA or BCom or engineering. It is looked down upon as second choices made by students who don’t have the capability or finances to go for traditional avenues of higher education,” said another official.
Pact with ILD
To this end, the Rajasthan government had in 2015 signed an agreement with the Institute of Leadership Development (ILD), set up by IFCI Limited, under which the institute would convert itself into a Skills University.
The proposed university will use the recently unveiled National Skills Qualification Framework to provide advanced skilling courses, train trainers and also work with the industry on research and development. It is also likely to work with the University Grants Commission (UGC).
Advanced level training
“Most skilling courses currently provide training in levels 1 to 4 but as such, there are no institutes that provide training opportunities in more advanced levels such as 5 and above under the NSQF,” said the official. Under Chief Minister Vasundhara Raje, the State has been working on various skilling initiatives and also plans to set up a similar university in the private sector. Other States, such as Delhi, are also working on skilling courses at advanced levels. The Delhi University had also signed an agreement with the National Skill Development Corporation to make skilling courses a part of its courses. Similarly, the Gujarat government has set up the TeamLease Skills University under public-private partnership mode in Vadodara.
Legislation likely
To make skill training more acceptable and bring it into the mainstream, the Centre is also mulling the option to introduce a legislation to allow for setting up of a National Skills University. “The proposed Skill Development University will be completely different from regular universities,” Minister of State for Skill Development and Entrepreneurship Rajiv Pratap Rudy had said. The government hopes that encouragement to vocational training would help find employment opportunities for the over 70 lakh new entrants to the workforce annually.
Source: Business Line
The wages under the Mahatma Gandhi National Rural Employment Guarantee Act are likely to increase as the Rural Development Ministry is considering "updating" the baseline, based on which workers are paid, to insulate the poor in rural areas from the rising cost of living. The baseline for annual revision of wages paid under MNREGA "can be changed" from Consumer Price Index-Agriculture Labour (CPI-AL) to Consumer Price Index for Rural (CPI-Rural). "We are looking into the suggestion of the S Mahendra Dev Committee to change the baseline for revision of wages paid under MNREGA to CPI-Rural from CPI-AL, but the final call will be taken after consultation with all state governments," Rural Development Secretary Amarjeet Sinha said. A high-level committee set up by the Centre under economist S Mahendra Dev had suggested that the wages under MNREGA should be equal to or higher than the minimum wage in states. The panel had also suggested that MGNREGA wage rates be revised every year on the basis of CPI-Rural as it takes into consideration more variables for rural areas as compared to CPI-AL. According to sources, the Rural Ministry has already moved the proposal to the Finance Ministry, which has asked for more deliberations on the issue. At present, wages under MNREGA vary from Rs 167 in Jharkhand, Madhya Pradesh, Chattisgarh and Bihar to Rs 259 in Haryana. The budget provision of Rs 38,500 crore under the rural employment scheme in 2016-17 has been increased to Rs 48,000 crore in 2017-18. Rural Development Minister Narendra Singh Tomar said the government is working on creating productive assets to improve farm productivity and incomes.He said this is the highest ever allocation for MGNREGA.
Source: Press Trust of INDIA
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$ 53.63 per barrel (bbl) on 08.02.2017. This was lower than the price of US$ 54.30 per bbl on previous publishing day of 07.02.2017. In rupee terms, the price of Indian Basket decreased to Rs. 3609.37 per bbl on 08.02.2017 as compared to Rs. 3658.08 per bbl on 07.02.2017. Rupee closed stronger at Rs. 67.31 per US$ on 08.02.2017 as compared to Rs. 67.37 per US$ on 07.02.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on February 08, 2017 (Previous trading day i.e. 07.02.2017) |
Pricing Fortnight for 01.02.2017 (Jan 12, 2017 to Jan 27, 2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
53.63 (54.30) |
54.03 |
|
(Rs/bbl |
3609.37 (3658.08) |
3680.52 |
|
|
Exchange Rate |
(Rs/$) |
67.31 (67.37) |
68.12 |
Source: PIB
Several corporate firms in Mumbai are likely to keep flexible office timings on February 21, polling day for the BMC elections, so as to ensure a larger voter turnout. Mumbai First, a city-based think tank, is in talks with 10-15 corporate houses and business groups in the city to let their employees go out and vote. “Up to 10-15 corporate groups in Mumbai have registered on our site and agreed to implement this model in their offices to promote voting on election day. The aim remains to ensure that the city at least crosses a 60 per cent mark in voting for the coming elections. It will also be to target the working urban middle class and facilitate voting from their end to the largest extent,” said Shishir Joshi, CEO Mumbai First. The move also calls for forming inter-departmental teams with respective team leaders who can motivate their members to come out and vote. A few corporate groups in the city including MCX stock exchange, Vodafone, and Mahindra and Mahindra have agreed to implement the model in their office circles. During the last elections in 2012, the voter turnout was only 45 per cent. “We have agreed to ensure time flexibilities on the voting day to ensure maximum participation in voting. We are yet to decide on how the formation of teams will be and this may take another week. It is a personal effort taken so that enough voting for elections is ensured,” said a spokesperson for Vodafone. “Data from the last four elections shows that every time elections are held in Mumbai, less than 45 per cent of registered voters have exercised their franchise. The process would need to commence in the present pre-polling time when leaders should remind their members about making or keeping their voter cards ready.Through this, they can expect more members from their respective teams to go out to vote. Encouraging voting through posting videos on social media about their efforts will also be an aim,” said Joshi. As an incentive, nominees of the winning teams would be invited to engage in a round table on Mumbai’s challenges and solutions. The winning team, organisation or individuals will also get the opportunity to present a white paper on solutions for a better Mumbai, in the BMC elections “War Room”. “The people’s committee in our office will be finding out the eligible voters in our office from next week.We have also appointed volunteers who have taken it upon themselves to market the concept of voting,” said Mrugank Paranjape, spokesperson of MCX. Anything that contributes to a larger voter share on February 21 is appreciated. Through such initiatives our aim remains to guarantee 100 per cent voting on the election day,” said J S Saharia, state election commissioner.
Source: Business Standards
The union minister for industry has said that 127 acres of land in No.1 Garment Factory located in Shwe Taung, Bago Region, will be transformed into a Specialized Textile and Garment Zone (STGZ). Khin Maung Cho, said the ministry will invite potential local and foreign investors to develop the zone to manufacture high quality products. There will be two phases for the project. As part of the first phase, the ministry is working with a Japanese company to do a feasibility study. The second phase will involve the development of 127 acres of land into STGZ. The union ministry expects that more jobs will be created for local people living in Shaw Taung areas which could help develop the economy. Lack of infrastructure such as a port and power, skilled labor and high rent fees for leasing land are the major challenges in the development of Myanmar’s textile sector, Myint Soe, the chairman for the Myanmar Garment Association, said. The sector still needs foreign investment, he said. The government is working to provide lands in Yangon, Bago and Ayeyawady Region to develop textile and garment factory zones.
Source: Eleven
The government has set a target for the garment industry to reach $50bn of annual exports by 2021, the 50th anniversary of the founding of the nation. This is a demanding target requiring $20bn of annual volumes to be added. Every RMG export transaction implies (approximately) a six-month working capital requirement. This is typically the time period between the initial purchase order by exporter and the sale of garments for cash in the retail shop of the buyer. The growth target of US$20bn per annum implies an incremental working capital requirement of around US$10bn.The additional investment in land, building and machinery are much higher. The present local and foreign currency may not be sufficient to support such huge transactions. The buyers are increasingly reluctant to provide funding to their suppliers - preferring to work with deferred payment and open account (so they can sell the garments before they pay for them). This means that the working capital requirement has to be met in the exporting country. Achieving this will require a combination of measures, including (a) the cash resources already available to the various importers and exporters, (b) large amounts of available banking lines (domestically/internationally), and (c) the involvement of independent third parties (such as import and export factors and trade finance companies). Some advanced financial products have recently been introduced in the global financial market to solve the problem of shortage of working capital for both buyers and sellers. These products are: International Trade Finance (ITF) and Factoring. These are identical products and successfully serve the purposes of the buyers and sellers. One of the easiest and cheapest ways for suppliers to find working capital is to work with an international trade finance company (ITFC) and Factoring companies. The current trend in garment export is to avoid Letter of Credit (Lc) and against export contract between exporters and importers. The contract sale is also called open account transaction. It is a standard practice of deferred payment. The payment against a contract with deferred payment may create a vulnerable situation for garment exporters because of possible risks of stock lot (refusal by buyer), discount to accept the consignment and even non-payment. A garment factory and a buyer agree on their purchase order, perhaps with 90 days deferred payment after the shipment date, and on open account. This is what buyers typically demand today for incremental orders 90 days deferral allows them to pay for the goods after selling them. The International Trade Finance Companies (ITFCs) has come up with a good solution. Upon agreement with the garment factory, an ITFC arranges a sight payment guarantee (which can be drawn on it, or can be in the form of a sight LC from overseas bankers). The buyer is not involved in this process. Once the goods are shipped, the ITFC purchases the invoice at sight of the documents, paying at least 95 per cent in cash. It takes the responsibility for collecting from the buyer on the due date of the invoice at its risk. This arrangement secures the payment for exporter and their bankers. The ITFC may also have another contract with buyers to arrange deferred payment against contract with exporters. ITF products are based upon Direct Import Factoring but also include (and are integrated with) additional services, such as arranging sight letters of credit in favour of exporters upon request of the exporter, managing currency risks (where purchase orders are not in USD), and documentary collections. KEY FEATURES OF ITF SERVICES: The buyer and factory both get what they need, without changing their operational procedures. There is no credit risk on seller, because ITFC pays in cash at sight at least 95 per cent of the invoice face value to the factory. ITF service is in full compliance with both the form and substance of Foreign Exchange Regulations. The income and services provided by local banks in support of the factory are unchanged. ITF is very close to International Factoring, a similar trade finance mechanism. The Factoring involves contract between buyer and a local Factoring company and another contract between seller and local Factoring company. These two contracts are supported by two factoring companies in exporter's and importer's countries. The method of Factoring involve: (1) the exporter ships the goods to his importer, (2) the exporter assigns his invoices to the import factor, who assumes the credit risk, provided this has been agreed to beforehand, (3) the import factor handles the accounts receivable in accordance with the sales contract between the exporter and the importer, (4) the importer pays the import factor on the due date, and (5) the import factor forwards the payment to the exporter, possibly deducting the agent's commission. ITFCs perfectly bridge the gap between what the supplier needs and what the buyer prefers to offer. It is a unique finance product to meet the requirement of exporters and bankers in Bangladesh under Foreign Exchange Regulation Act, 1947 and undertake the risk of payment of buyers. At present a British company PrimaDollar Operations Ltd and a German company DS Concept are active with two financial products - Factoring and ITF in Bangladesh. Both of these two companies have their liaison offices in the country. Introduction of Factoring requires policy support and specific regulations which are yet to be formulated by the Government. The writer is a Legal Economist.
Source: The Financial Express Bangladesh
Garments made in Vietnam pose a threat to Cambodian exports. Cambodia’s total exports to the United States declined last year compared with 2015, due to uncertainties in the US presidential race and rising exports from Vietnam and new market player Myanmar. According to figures from the Office of the US Trade Representative, total exports from Cambodia to the United States were more than $2.8 billion last year compared with more than $ $3 billion in 2015 – a decline of about seven percent. Seung Sophary, spokesperson for the Ministry of Commerce, told Khmer Times yesterday that exports went down due to a fall in American consumer demand for overseas products in the latter part of 2016, due to uncertainties in the US presidential race. “The American people were tightening their belts to brace for the worse in the race between the two candidates. There was high uncertainty and this affected their desire to buy imported goods,” said Ms. Sophary. “Now that the election is over, things hopefully will return to normal. The American people have got a new president.” Kaing Monika, deputy director- general of the Garment Manufacturers Association of Cambodia, said that Cambodian garment exports to the US were also facing stiff competition from Vietnam and Myanmar. The US is Cambodia’s second largest export market for garments, after the European Union. “One of the biggest challenges we face now is from Vietnam,” said Mr. Monika. “They are now the second biggest supplier of garments to the US. Their wage levels are on par with ours and this makes it difficult for us to compete in terms of cost.” The minimum wage in the garment and textile industry has been increasing year-on-year over the past few years. The new minimum monthly wage for garment workers this year is $153, up from $140 last year. But Cambodia’s fears that it would lose its competitiveness in the garment industry have been abated, for the time being, with new US President Donald Trump’s executive order pulling the US out of the Trans-Pacific Partnership (TPP). The TPP would have eliminated most tariffs in the garment sector and there were fears that Cambodia’s garment exports would lose out in favor of Vietnam – which was set to benefit from the slashed tariffs as one of the 12 Pacific-rim countries that signed on the deal and was close to ratifying it in its legislature. Mr. Monika said the “dark horse” in the garment trade is Myanmar which has “come out strong with an aggressive and concrete master plan.” “It has joined the club, eating into some of our US orders.” Last year, according to the Myanmar Garment Manufacturers Association, the Myanmar apparel industry operating under the cut-make-pack system exported more than $1 billion worth of clothing. This was a massive 145 percent increase, compared with exports totaling $408 million in 2015.
Source: Khmer Times
Domestic firms should make great efforts in the competition with foreign invested firms to contribute more actively to the global value chain and participate more effectively in the world’s production network, experts said. Central Institute for Economic Management (CIEM) former director Le Dang Doanh told Nguoi Lao Dong (The Labourer) newspaper that foreign direct investment (FDI) firms had greatly contributed to Việt Nam’s economic growth, accounting for around 70 per cent of national export turnover while domestic enterprises had not yet deeply involved in the global value chain. According to the General Statistics Office, in 2016, Việt Nam’s export turnover reached over US$175 billion, up 8.6 per cent year-on-year. Of the estimate, the export value earned by FDI enterprises reached more than $120 billion, up 10.2 per cent against the previous year. Doanh said domestic enterprises had been urged to improve capacity and enhance competitiveness right when the contribution of FDI firms in the export value was standing at 50 per cent. However, until now, when the rate had risen to 70 per cent, local firms still remained passive in global value chains. Export over the years contributed greatly to the economy - if in 2001, the national export turnover reached $15 billion, then 10 years later, the number rose up to $97 billion, Doanh said, adding that this achievement was largely achieved by the FDI sector. The significant presence of FDI companies in exports partly reflected the low level of competitiveness exhibited by domestic businesses, he said, adding that a major part of Vietnamese firms were just joining in the low value outsourcing service industries. According to Ngo Duc Hoa, chairman of Thang Loi Textile Garment JSC, all of Thắng Lợi’s products serving domestic use are self-designed, produced and distributed. But for the exported goods, the company just provides “cut and sew” services for foreign partners, meaning that the firm creates apparel and accessories out of materials owned by the foreign companies that contract them. The biggest difficulty textile exporting enterprises is facing is the lack of raw materials for production, leading to the only option of importation. In addition, Vietnam’s textile and garment industry hasn’t thrived yet, thus gaining low attention from customers. Due to the fact that the firm is only hired to “cut and sew” products for foreign partners, they have to use raw materials supplied by the partners or import the materials themselves. If an exported T-shirt costs $10, the company has to spend $8.5 to import materials and earn only $1.5 for processing services. "It is not an exaggeration to say textile enterprises pinch pennies for a living," Hoa said. Even for high-technology industries such as power, electronic and telecommunication, most of domestic enterprises are hired for providing outsourcing services for exported goods. According to Vu Thanh Tu Anh from Fullbright Teaching Program, a recent research of Fullbright’s specialist group summarising the 10-year period that Intel invested in Việt Nam showed a number of sad results. Tự Anh said Vietnamese enterprises account for only 3 per cent of Intel’s total exporting value and are involved in some steps of meals provision, gift boxes preparation and security services, which are the services that Intel can’t import. Mobilising all sources for domestic enterprises. At the recent Prime Minister’s roundtable conference with global specialist network on Vietnam’s development, Prof. Tran Van Tho from Japan-based Waseda University said in the context that Việt Nam was actively and thoroughly integrating in the world’s economy, avoiding the “outsourcing trap” was a significant challenge, drawing high attention of policy makers. According to Doanh, Vietnam’s economy strongly depending on the FDI sector may become alarming issue as when the economic advantages vanish, the FDI capital flow may be diverted to other countries. This is actually what’s happening with our textile industry as outsourcing service orders are shifting to Cambodia and Bangladesh. In a bid to improve the situation, the country’s policies need to focus on developing agricultural production, which have already strongly contributed to the national economy, on a larger scale so that the agriculture sector can participate more deeply in the global value chain. The government also needs to concentrate on the development of the supporting industry to enable private enterprises to join in production chains of big corporations such as Samsung and Intel. “We must create more motivation for private enterprises to actively produce rather than gaining profit through the investment in property and resources exploitation," Doanh said. Regarding tax issue, economic expert Bui Trinh said input VAT levied on FDI enterprises were deducted. “Meanwhile, many Vietnamese enterprises whose input VAT should have been deducted still has to pay for it. How are domestic industries, such as agriculture, supposed to grow and compete when they still have to pay for input VAT?” Trinh said. Trinh said the government’s policies assisting domestic enterprises should begin with concrete actions such as reducing taxes, reconsidering tax policy to guarantee fairness between FDI and domestic enterprises.
Source: VietNamNet Bridge
1,180MW Bhikki Power Plant to start generation next month: CM KARACHI: Buyers bought better grades on premium price at cotton market amid firm spot rate, traders said. The KCA spot rate stayed firm at Rs 6,700 per maund. The leading buyers bought second grade of lint for blending purpose, according to floor brokers. They also stated that around 900 bales changed hands while fine quality cotton fetched slightly high price around Rs 6,775 per maund. A senior trader, Ghulam Rabbani said the ginners, on sensing improving demand for better lots, brought small volumes in the market as price fixation of seed cotton was also on cards. Shrinking better stocks amid growing demand for all qualities and price firmness in New York Future market, is definitely affecting the domestic market, Rabbani said. He declared that around 100,000 seed cotton is left, however the prices are firm and there seems to be no immediate panic in the market. The textile and apparel sector was eyeing imported lint on the back of growing demand of cloth and textile made ups. A senior broker said the physical market price would remain around at Rs 5,995 per maund and Rs 6,475 per maund. Some ready market deals also changed hands above prevailing spot rates during the trading session. According to KCA, 200 bales of Mirpurkhas changed hands at Rs 6,125 per maund, 200 bales of Rahimyar Khan at Rs 6,300 per maund, 200 bales of southern Punjab at Rs 6,400 per maund, 200 bales of upper Sindh at Rs 6,175 per maund and 200 bales of southern Punjab at Rs 6,550 per maund. Sellers offered all grades of lint on bargaining rates at around Rs 6,000 per maund to Rs 6,650 per maund in order to capitalise maximum returns on their proceeds, brokers said. Private sector commercial exporters made forward deals for a month period at around Rs 6,050 per maund, according to traders. New York March 2017 Futures closed at 73.80 cents per pound, May Futures 2017 at 73.89 cents per pound and Cotlook A index was hovering around 81 cents per pound.
Source: Daily Times
Almost 3,000 textile workers in Mahalla El-Kubra, mostly women, announced a strike on Tuesday, several workers told Ahram Online. The workers in the clothing section of the Mahalla Textile and Weaving Company are striking to demand payment of a variety of benefits they say they are are entitled to. Two female workers who asked to remain anonymous told Ahram Online that their main demands are "applying a court order to get the development incentive raised to almost EGP 600 instead of EGP 360, and to get the seven-month delayed social raise, which is 10 percent of the basic salary, and to get the full nutrition allowance, which is EGP 320 instead of EGP 210." “My monthly salary is EGP 2,000, and they have started to take taxes from it,” said one worker. “I have three children, and I had to take my eldest girl out of school as I cannot afford her expenses. We’re not demanding thousands of pounds. Those few pounds are our right, and it will not even be enough to face the high prices of everything. The 10 percent raise will only add EGP 70 to my salary," she added. Labour activist and former Mahalla Textile and Weaving Company employee Nagy Haider, who was dismissed from the company in 2015 for leading a number of strikes, said that the whole company will join the strike on Wednesday if their demands are not met. Haider added that there is a possibility that other textile and weaving workers around Egypt will join the strike with similar demands. Mahalla Textile and Weaving Company is one of the biggest textile and cotton companies in the country; the sector as a whole comprises 32 companies and employs 60,000 workers around the country. However many of the workers are not sure if their colleagues will join their action. One of the workers told Ahram Online that they were warned that the National Security Apparatus will intervene if the strike does not end before Wednesday, echoing fear of a crackdown similar to those that have met other labour actions in recent. The government introduced a law in 2013 that severely restricts protests and strikes in Egypt, and thousands have been jailed for violating the law, including workers. However, according to the annual report issued in December by the Egyptian Centre for Social and Economic Rights, during 2016 the governmental sector witnessed almost 478 “industrial actions” while the public sector saw 133 actions and the private sector witnessed 107 actions. In October 2016, the workers of Mahalla Company – a public company -- went on strike for 12 days, to demand they receive a benefit known as the social raise. The action was successful and they were awarded nine months-worth of the raise. The company’s workers have placed a major part in political developments in Egypt in the last decade, including in major protests against the Mubarak regime in 2008. "The number of the workers [in the company] was 24,000 in 2006, but has decreased to 15,000 today as many workers have been dismissed,” said Haider. Ahram Online was unable to reach both the head of the general union of textile workers, and the chairman of the Mahalla Textile and Weaving Company for comment.
Source: Albawada Business
