The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 07 MAR, 2017

NATIONAL

INTERNATIONAL

Global Textile Raw Material Price 2017-03-06

Item

Price

Unit

Fluctuation

Date

PSF

1228.96

USD/Ton

-1.17%

3/6/2017

VSF

2526.07

USD/Ton

0%

3/6/2017

ASF

2218.65

USD/Ton

0%

3/6/2017

Polyester POY

1261.59

USD/Ton

-0.80%

3/6/2017

Nylon FDY

3625.25

USD/Ton

0%

3/6/2017

40D Spandex

5220.36

USD/Ton

0%

3/6/2017

Polyester DTY

3842.77

USD/Ton

0%

3/6/2017

Nylon POY

3422.24

USD/Ton

0%

3/6/2017

Acrylic Top 3D

1486.35

USD/Ton

-0.49%

3/6/2017

Polyester FDY

5742.40

USD/Ton

0.25%

3/6/2017

Nylon DTY

2392.67

USD/Ton

0%

3/6/2017

Viscose Long Filament

1551.61

USD/Ton

-0.93%

3/6/2017

10S OE Cotton Yarn

2122.95

USD/Ton

0.07%

3/6/2017

32S Cotton Carded Yarn

3418.61

USD/Ton

0.11%

3/6/2017

40S Cotton Combed Yarn

3984.87

USD/Ton

0.07%

3/6/2017

30S Spun Rayon Yarn

3161.22

USD/Ton

0%

3/6/2017

32S Polyester Yarn

1856.13

USD/Ton

-0.78%

3/6/2017

45S T/C Yarn

2711.69

USD/Ton

0%

3/6/2017

40S Rayon Yarn

3291.73

USD/Ton

0%

3/6/2017

T/R Yarn 65/35 32S

2334.66

USD/Ton

-0.62%

3/6/2017

45S Polyester Yarn

2015.64

USD/Ton

0%

3/6/2017

T/C Yarn 65/35 32S

2276.66

USD/Ton

0%

3/6/2017

10S Denim Fabric

1.35

USD/Meter

0%

3/6/2017

32S Twill Fabric

0.84

USD/Meter

0%

3/6/2017

40S Combed Poplin

1.17

USD/Meter

0%

3/6/2017

30S Rayon Fabric

0.67

USD/Meter

-0.22%

3/6/2017

45S T/C Fabric

0.67

USD/Meter

0%

3/6/2017

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14501 USD dtd. 06/03/2017)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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Govt to consider five proposals on March 8 for setting up new SEZs

NEW DELHI: The Commerce Ministry will consider five proposals of SEZ developers, including Oracle India and L&T Construction Equipment, for setting up new Special Economic Zones (SEZs) on March 8. These applications will be considered at the meeting of the Board of Approval (BoA), headed by Commerce Secretary Rita Teaotia. Oracle India and L&T Construction Equipment have proposed to set up IT/ITeS SEZs in Karnataka. The latter has proposed two zones. The other developer, Modern Asset, too has planned two IT/ITeS zones in Karnataka over 2.33 hectares. Exports from SEZs logged a marginal growth of 0.77 per cent to Rs 4.67 lakh crore in 2015-16. The exports from such 204 zones stood at Rs 4.63 lakh crore in 2014-15.Currently, the highest number of SEZs are operational in Tamil Nadu, Karnataka, Telengana and Maharashtra.

Source:  The Economic Times

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Govt may unveil IIP, WPI with 2011-12 base year by April-end

The government may launch two macroeconomic indicators — the index of industrial production and the wholesale price index — with new base year 2011-12 by April-end to ensure compatibility with growth numbers. The change in the baseline for IIP and WPI, currently at 2004-05, is expected to bring in more accuracy in mapping the level of economic activity and calculating other numbers like national accounts. The Central Statistics Office (CSO) has already changed the base for the country’s national accounts, including the gross domestic product (GDP) and the gross value addition (GVA). CSO Director-General GC Manna said the government is proceeding with a target of launching the new set of numbers by April-end. He said, “When we say end of April, it is February data because there is one-and-a-half month gap (lag)... data for month up to February will come (in April-end). Then, we will stick to 12th day of every month from May onwards. The first release will be April end... with that target, we are proceeding.” For long, economists and think-tanks have been pitching for release of new time series of IIP and WPI so that GDP numbers can be based on more accurate and realistic data. Manna said, “Already, the committee of secretaries headed by the Cabinet Secretary had a meeting. It was decided that a small group comprising secretaries of statistics and industries headed by the Cabinet Secretary will take a final decision. This meeting will be held on March 14.” He further said, “Assuming that they approve the proposal, both IIP and WPI should be in the public domain by the end of April, including back series data. Both IIP and WPI with new base year of 2011-12 will be available (on scheduled dates) from May.” WPI basically indicates the rise in profitability of industries. Similarly, IIP denotes the level of economic activity in different sectors, including manufacturing, mining and power. IIP also gives a broad outlook on output of various types of goods like basic, consumer and capital ones, which helps in gauging the level of economic progress and investments in the economy. Asked about the higher provision of ₹1.18 lakh crore discrepancy in the second advance estimate of GDP unveiled later last month, Manna said, “I understand this happens because there is a residual approach. Our former estimate is production side estimate. Discrepancy was there for last quarters also.” The second advance estimate was arrived at by factoring in mismatches or the difference between GDP calculated by different methods at ₹1.18 lakh crore or 1 per cent of the Indian economy. It was ₹45,407 crore, or 0.4 per cent, of GDP in 2015-16. The CSO has pegged the GDP growth at 7.1 per cent for the current fiscal in the second advance estimate, the same as the first one released in January this year.

Sub-State CPI

It is also working closely with States on the sub-State consumer price index to ascertain the price rise of commodities in different regions. “There is concept of NSS (the National Sample Survey) region. There are about 87 NSS regions which are group of districts. We have suggested to the States to group districts,” he said. He clarified that the State sub-CPI will not be used as input for calculation of the national rural, urban and combined retail inflation as these will separate surveys.

Source: Business Line

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Note ban impact on GDP may be seen this quarter: RBI Deputy Governor Viral Acharya

NEW DELHI: Demonetisation impact on GDP may be seen in the current quarter in some segments, while the remonetisation excersise should be completed in 2-3 months, RBI Deputy Governor Viral V Acharya said today. Asked if spillover of notes ban could extend to January-March quarter, Acharya said the impact could be felt in some segments. "Ultimately, the cash shortage is like the liquidity shock and unless it had led to a substantial wealth destruction one would expect its effects to be quite temporary. I'm not saying that the temporary impact is not hard on some parts of the economy, you would expect the effect to be temporary," he said. "There may be a couple of sectors, like 2-wheeler sales, where there is slightly slower rebound," he said. When asked about the GDP estimate, he said, "you can see our MPC resolution which is that our estimate was actually reasonably close to that (of CSO estimate)." "Of course, the drivers may have been slightly different, but I think there are a couple of things that people have raised which would be interesting and worth thinking about, which is how much of the informal sector gets fully captured other than through its links to the formal sector," he said. He further said that the impact of the notes ban would only be temporary and would help in bringing informal sector into the mainstream economy. "I think everyone should keep in mind that the remonetisation is taking place at a very fast pace. We have some way to go, but I think we expect that within two to three months we will reach full currency in circulation. It will be slightly lower, but it is in that ballpark (number)," he said. The demonetisation of high value currency notes of Rs 500 and Rs 1,000 announced on November 8 led to scrapping of Rs 15.4 lakh crore from the system. The newly appointed Deputy Governor also said that asset quality review (AQR) is on the track. The RBI had set a deadline of March 2017 for completion of AQR exercise for the public sector banks. It had embarked on the AQR exercise from December 2015 and asked banks to recognise some top defaulting accounts as NPAs. It has had a debilitating impact on banks' numbers and their stocks. The move resulted in a spike in bad assets with lenders recognising over Rs 1 lakh crore of bad assets in the December quarter alone.

Source: The Economic Times

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GST hurdles

At the end of every meeting of the GST Council, hopes that GST would become a law soon increase gradually. After the latest meeting of the Council, there were positive vibes all round that implementation of GST on July 1 —which was probable till now — looks eminently possible. Yet, the date of implementation would remain only a landmark date since the law has to be implemented in any case by mid-September. Implementing a common indirect tax law in a country as diverse as India isn’t an easy task. While the GST Council deserves kudos for doing what it has on the administrative aspects of the law, the minimal focus given to its economic and commercial angles is a matter of concern.

Rate of tax

A convenient rate of tax is one the primary pillars on which a Model GST law should stand on. In the first version of the law, the charging Section read, “There shall be levied a tax called the Central/State Goods and Services Tax... on all intra-State supplies of goods and/or services at the rate specified in the Schedule to this Act and collected in such manner as may be prescribed. In Version 2, released on November 25, 2016, the clause read, “There shall be levied a tax called the Central/State Goods and Services Tax... on all intra-State supplies of goods and/or services on the value determined under section 15 and at such rates as may be notified by the Central/State Government in this behalf, but not exceeding fourteen percent, on the recommendation of the Council and collected in such manner as may be prescribed.” Even before Version 3 could be unleashed, the section has been amended, replacing 14 per cent with 20 per cent. Now the maximum rate of CGST and SGST would be 20 per cent which would arithmetically peg the IGST rate at 40 per cent. Parliamentary approval is not needed for slapping a levy on 40 per cent on certain goods and services. While this could be one of the reasons, a more plausible explanation could be that the Government is strategising to keep their promise of compensating the State Governments for their losses due to the transitioning to GST from tax collections from GST itself. While we are hearing that luxury cars, tobacco and such non-essential products would only be taxed at 40 per cent, an insertion in the main charging section itself even before the fitment of rates with all goods and services would mean that virtually anything can be taxed at 40 per cent. In addition, the penchant of the Government to levy a cess whenever they get bored with levying normal taxes would make the rate well over 40per cent, which would be a very steep rate of tax even for luxury and sin products. It is imperative that the GST Council should immediately notify which goods and services would fall in the 40 per cent bracket and also provide an assurance that there would no messy cesses levied over and above the 40 per cent rate.

Negative list

Despite some initial hiccups in transitioning registrations to the GST regime, the administrative aspects of the law should not pose much of a challenge to both the taxpayer and the tax collector. During the remaining meetings of the GST Council prior to the introduction of the law, the GST Council should focus on the economic and commercial aspects of the law. They could make a start by notifying a negative list that is not too long but contains essential goods and services that the Government does not want to tax.

Source: Business Line

Will RCEP make or break industry?

Opening up Indian goods markets should be based on access for our services. Dumping from China has already taken a toll The trade architecture as far as multilateral agreements are concerned deserves a serious relook. The way things are moving, the proposed Transatlantic Trade and Investment Partnership (TTIP) between the European Union and the US will perhaps not see the light of day. At the same time, the much touted Trans Pacific Partnership (TPP) has been consigned to oblivion. For India, this decision was possibly a boon in disguise. While on the one hand, India did envisage setting up facilities in TPP member countries such as Vietnam, which would have allowed India greater access to other members in TPP, on the other hand, it would have opened up new challenges for India to do business with TPP members. The TPP was predicated on stringent conditions like intellectual property obligations, human rights and child labour stipulations, environmental commitments, and a host of other directives which Indian entities would have found difficult to comply with. The North American Free Trade Agreement (NAFTA) on the other hand, which has been the pioneer of sorts in multilateral trade agreements seems threatened under the present dispensation in US. At the same time, the UK’s exit from the EU bloc is also a reality.

RCEP factor While India had consciously not been a part of the TPP, it is on the negotiating table of the Regional Comprehensive Economic Partnership (RCEP). This is an irony, because the big elephant in the 16-member RCEP block is China, with whom India suffers perennially from a huge trade deficit. In fact, the trade deficit during the last ten years has increased linearly from around $7.8 billion in 2006 to $52 billion in 2015, with no signs of the deficit tapering in spite of numerous efforts. The RCEP concept when mooted by Asean was an alternative to the TPP, but in hindsight it looks like the accord may be hugely detrimental for India given the size of the trade deficit it has with the proposed bloc. In 2015, India had an overall trade deficit of $97 billion in RCEP, with China occupying a share of 54 per cent. This is despite the fact that India has frequently used anti-dumping duties, safeguard duties and other countervailing measures to protect the domestic industry from unfairly low-priced imports from China. Coincidentally, within the RCEP, India has existing FTAs in merchandise goods with Asean, South Korea and Japan, and with all the three it has witnessed a higher trade deficit after signing the FTA.

Existing trade agreements

While RCEP offers opportunities for greater market access, India’s tryst with trade agreements have not been great due to various reasons. Post-FTA, bilateral trade volumes did increase, but imports from partner countries have increased at a faster pace than India’s exports with partners. Even if the current $97-billion trade deficit with the proposed RCEP as a bloc is discounted, results from India’s incumbent trade agreements support the aforesaid concern. Amongst the trade blocs, apart from Asean, India also has a trade deficit with Mercosur (Common Market of the South). The South Asian Free Trade Area (SAFTA) however remains a one-man show and hence could be ignored. The ones with Afghanistan, Nepal, and Bhutan remain largely inconsequential given the size of those markets. The only bright spot has been Sri Lanka and Singapore, where India has been successful in achieving a positive trade balance. On slippery terrain In the absence of the TPP, the RCEP will emerge as the largest regional trading bloc in the world, accounting for nearly 45 per cent of the world’s population and with a combined gross domestic product of $21.3 trillion. However, given the precedence in executing trade agreements, India needs to introspect as to what it can get from negotiating the proposed RCEP that it has not already obtained from prevailing trade agreements with Asean as a bloc or with Japan, South Korea, Singapore. While the RCEP has chapters on intellectual property, investment, goods, services, telecommunications and e-commerce, the one on goods and services are the most crucial. A poorly negotiated agreement will usher in grave consequences for Indian business and its people. Some of the RCEP members have already refused to agree to India’s three-tier approach to tariff reduction over a period of time. RCEP should not convert India into a dump yard for cheap imports from the Asia-Pacific, particularly China. Under the ambit of RCEP, countries like China, South Korea and Japan are manufacturing powerhouses, and Australia and New Zealand have strengths in processed foods, wine, and dairy products, while Asean has comparative advantages in plantations, electronics and auto-components. While consumers would benefit from FTAs, the Indian manufacturing sector which remains relatively uncompetitive vis-à-vis some of the RCEP negotiating partners would be at a disadvantage. Sectors such as plantations, automobiles, textiles, pharmaceuticals, and engineering goods would be impacted negatively. A poorly negotiated RCEP could spell the death knell for India’s global manufacturing dream. The non-tariff barriers in RCEP countries should be negotiated transparently before negotiating market access. Among all the non-tariff measures imposed on Indian exports, sanitary and phytosanitary issues and technical barriers to trade measures are the most frequently used. These deal with product quality and standards.

Services advantage

Though a trade agreement in services preceding merchandise may seem utopian, India should seek to change this custom through RCEP. Asean has already expressed its reservations pertaining to the same, but India should up the ante. India has achieved significant success in services, and hence should seek greater liberalisation of trade in services, including aggressively pushing for greater access for its professionals in these markets. In fact, India should use services like the ‘pound of flesh’, and use it as a good bargain for giving access to the huge domestic goods market. It must be noted that RCEP has the East Asian economies as partners, who have thrived on export-led growth model, unlike India whose domestic economy is its strength. India while choosing its trade partners needs to see the complementary nature of the relationship.

Source: Business Line

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Global Crude oil price of Indian Basket was US$ 54.24 per bbl on 06.03.2017

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$ 54.24 per barrel (bbl) on 06.03.2017. This was higher than the price of US$ 54.02 per bbl on previous publishing day of 03.03.2017. In rupee terms, the price of Indian Basket increased to Rs. 3620.85 per bbl on 06.03.2017 as compared to Rs. 3610.23 per bbl on 03.03.2017. Rupee closed stronger at Rs. 66.76 per US$ on 06.03.2017 as compared to Rs. 66.84 per US$ on 03.03.2017. The table below gives details in this regard:

 

Particulars    

Unit

Price on March 06, 2017 (Previous trading day i.e. 03.03.2017)                                                                  

Pricing Fortnight for 01.03.2017

(Feb 14, 2017 to Feb 24, 2017)

Crude Oil (Indian Basket)

($/bbl)

                  54.24             (54.02)       

54.93

(Rs/bbl

                 3620.85        (3610.23)       

3677.56

Exchange Rate

  (Rs/$)

                  66.76              (66.84)

66.95

 

Source: PIB 

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KVIC to promote banana-extract fibre with contemporary twist

Kolkata : The Khadi & Village Industries Commission (KVIC) will work towards promoting fibre extracted from banana in a big way, senior officials of KVIC said today.  “We are promoting and thus facilitating research in extracting fibre from banana leaves which are abundant in eastern region, for production of wearable items, gifts and household items,” Director KVIC (West Bengal) Siddhartha Roy told PTI at a buyer-seller meet-cum-exhibition here. “We are promoting the extraction of fine, soft and durable yarn from the banana leaves for stitching them into clothes and to make it commercially viable,” Roy explained. He said the focus would be on villages not in towns since it has great employment potential. To a question, Roy said once the fabrics matched the three categories of fineness, softness and durability inlong run, there could be fashion shows in the long run in cities to create buzz about the products. KVIC hon’ble member (East Zone) Dr Sangeeta Kumari said banana fibre can be variously used in making handmade paper bag, statue, pen stand, besides garments and can be as distinct and exclusive as silk yarns. Apart from Bihar, Jharkhand, Odisha, West Bengal, Assam and Andaman & Nicobar islands, craftsmen in Kerala and Hyderabad are also involved in this sector, she said explaining the KVIC is not doing any R & D work in this field on its own but working as facilitator to popularise it. About KVIC’s future road map, Roy said, “Our main sector is Khadi and we have already set Rs 58 crore target for Bengal.” “However KVIC will not be involved in any negative activities like tobacco, animal slaugher etc. We always promote eco-friendly activities like launching KVIC-funded e-rickshwas in Andaman & Nicobar Islands,” he said. Altogether 22 units, from Kalpi in UP, Kerala, Guwahati, Burswan, Jharkhand were participating in the buyer-seller meet cum exhibition. “We have been involved in this for decades in Kerala but now we wish to impart latest global touch to our various products and KVIC can be the stimulator, one of the participants Patricia T from Kerala said.

Source: India.com

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Spencer's fashions a new line

RP-Sanjiv Goenka Group launches a mass-market apparel label, but getting customers is a big challenge Shashwat Goenka, head of retail at RP-Sanjiv Goenka Group says that the newly launched private label will keep up with the latest trends in fashion and offer buyers new fare every fortnight. Spencer’s is trying its hand at a homegrown apparel label, one more time. The grocery retail chain, headquartered in Kolkata, is targeting the budget consumer with a label called 2Bme for children, men and women to be priced between Rs 199-1,299. But given its experience with clothing lines in the past and the fact that groceries and clothes rarely fit in the same shopping basket, experts say that the RP-Sanjiv Goenka owned chain has a tough climb ahead. To be fair, private labels across the world are staple fare for supermarket store chains. Walmart has over six, Macy’s has several and in India, Fashion at Big Bazaar, Reliance Trends are among other retail-store-owned apparel brands. These are all aimed at the budget-conscious buyer, the same category that Spencer’s has targeted its brand at. Spencer’s has set a lot in store by its newly launched 2Bme line and is counting on the clothes label to boost the group’s overall retail operations. It is counting on higher margins (from apparel) to help beat the losses that it has incurred in the grocery business and also believes that the label could eventually become an independent and national brand. “Initially it will be available only in Spencer’s and based on how it performs we will consider turning it into a business vertical in the group,” Shashwat Goenka, head of the retail sector at RP-Sanjiv Goenka Group said. Based on the response in the coming couple of seasons, Goenka will also take a call on taking the brand to retail outlets outside Kolkata. Goenka says that the apparel business will contribute 5.5 per cent of the total sales and 10 per cent to the bottom line for Spencer’s in the very first year of introduction. What makes him so confident, given that the group has not been able to make a success out of its past forays into apparel? It had two private labels, Island Monks and Asankhya, but neither found enough customers and both were taken off the shelves just before the launch of 2Bme. Goenka says that they have been cautious this time around. Extensive consumer research was undertaken for more than a year and the group also employed more than 60 fashion designers to keep in step with latest trends. “Keeping in mind the diversity of preferences, we have given special attention based on several research and surveys in different parts of the country,” Goenka said. He says that the stores will replace the entire apparel stock on the shelf every 15 days to create a continuous flow of new products. He is also confident that the group has got the pricing right; kids’ wear starts at Rs 199, women’s wear at Rs 249 and menswear at Rs 299. The most expensive purchase under the brand would be Rs 1,299 for denim wear for men. However people look for more than price points when it comes to apparel, say experts. Many also believe that Spencer’s has not gone about the launch in the right manner and that it ought to have taken a leaf out of the books of online brands. Brand expert (Pops) KV Sridhar said that it would have been best to launch the brand online and not associate it with grocery retail. He believes that would have given the brand a national character and positioned 2Bme as a standalone apparel brand right from the beginning. “After all how many people visit a grocery store to buy apparel,” he wonders. A similar concern is raised by Ramesh Thomas, president of management consultancy firm Equitor. “I can’t think of Indians walking into a store which sells frozen foods and vegetables to buy clothes in particular,” he said. Sridhar predicts that the newly launched brand runs the risk of a similar fate like the discontinued Spencer’s brands. Thomas says that this seems more like a decision taken to bring more footfalls into the retail stores rather than build a new brand. However, he adds, “Instances of apparel brand launches in grocery stores are not unheard of globally, but there might be some disconnect in the Indian context. What needs to be watched is will the footfall increase after the brand’s launch?” Goenka believes that the manner in which the group has designed the brand, keeping price and trendiness in mind, will help beat the odds. Apart from providing shoppers with a new set of products every fortnight (typically the period between store visits for groceries), it is also working out a system where there is a constant upgrading of styles based on international trends. He believes that mass market brands or fast fashion labels need to move fast as people abhor staleness when it comes to regular ready-to-wear clothes. It is also important to keep distribution in focus as that “is the key here like any other business and the product sales need to happen through a proper channel,” said Sridhar. In the introductory phase, Goenka has decided to bank on Spencer’s stronghold in Kolkata, which will be followed by the brand being launched in the stores in Delhi NCR, Lucknow, Hyderabad, Vishakhapatnam and Chennai. But for that, the brand will have to first work its magic on the home turf.

Source: Business Standard

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Under Armour debuts in India on Amazon Fashion

BENGALURU : Under Armour, the global sports performance brand, made its debut in India today through Amazon Fashion. With a focus on cutting-edge design and innovation, Under Armour’s latest expansion defines its vision of empowering athletes everywhere. The brand, that started with a simple idea to make a sweat-wicking T-shirt more than 20 years ago, is now endorsed by the world’s top athletes, including Stephen Curry, Lindsey Vonn, Andy Murray, Jordan Spieth and Michael Phelps, amongst others. Specialising in men’s, women’s and youth apparel, footwear and equipment, the Under Armour brand has launched a comprehensive range of products for Running and Training on Amazon Fashion for Indian consumers. Over 330 different styles are available through a dedicated brand store. Signature Under Armour products available through the Amazon Fashion platform include premium apparel technology, such as Threadborne™ and Charged Cotton®, designed to keep athletes cooler, dryer and lighter throughout the course of a game, practice or workout. Premium footwear innovations include UA SpeedForm® for precision fit, Charged Cushioning® for responsiveness, durability, optimal cushioning and energy return, and Micro G® for increased protection and stabilisation. The entire Under Armour selection is eligible for Amazon PRIME, which offers unlimited free one-day and two-day delivery to over 100 cities across India. Changing lifestyle Commenting on the launch, Arun Sirdeshmukh, Head, Amazon Fashion India said, “Sportswear is an incredibly strong category for us and has been growing at 70 per cent year over year, owing to the changing lifestyle and rise in customer demand. We have exclusive partnerships with brands either for the entire range that a brand offers or for specific product lines/collections that they choose to launch on Amazon, which last for 6 months to a couple of years.”

Source: Business Line

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Agriculture ministry likely to maintain status quo on Bt cotton seed MSP

The agriculture ministry is likely to retain the current maximum sale price (MSP) for genetically modified Bt cotton seeds prices for the next kharif season. Last year, MSP of genetically modified Bt cotton seeds was reduced to R800 per 450 gm packet from R830-1,000 in the previous year. The agriculture ministry is likely to retain the current maximum sale price (MSP) for genetically modified Bt cotton seeds prices for the next kharif season. Sources told FE that after a meeting of the committee constituted by agriculture ministry for recommending MSP for Bt cotton seeds was held on Monday, the government would be coming out with a formal notification within next few days. Last year, MSP of genetically modified Bt cotton seeds was reduced to R800 per 450 gm packet from R830-1,000 in the previous year. However, the sharpest cut was on royalty or trait fees which was reduced by 74%, from R163 per packet to R49. In Monday’s meeting, while one group of seed manufacturers urged for increase in seed price by R30-50 per packet, others demanded trait fee to be hiked to R100 from R49 per packet. “The government would perhaps maintain a status-quo to avoid any dispute,” a source said. After last year’s cut in the fees to Mahyco Monsanto Biotech (MMBL), a joint venture between the US-based biotech major Monsanto and Maharashtra-based Mahyco, the trait value has been just 6% of the pan-India ceiling price of R800 per packet for the seed. MMBL had moved the Delhi High Court against the reduction in trait value and the capping of the seed price, arguing that the December 2015 price control order was “illegal and unconstitutional”. The court is yet to decide on the matter. MMBL has sub-licensed Bt cotton seed technology since 2002 to various domestic seed companies. About 83% of the country’s cotton area of 10.2 million hectares (in the 2016-17 season) was under Bt variety. The country’s cotton production has risen manifold since the introduction of Bt seeds — from 13.6 million bales in 2002-03 to a projected 32.12 million bales in 2016-17. After Bt cotton was introduced in India in 2003, it took no time for it to take the lion’s share of the country’s cotton area, but 2016-17 saw the first steep decline in its attraction to the domestic growers of the fibre. Primarily because cotton farmers in Punjab and Haryana took to native varieties in last year’s kharif season. Farmers thought these might be less vulnerable to the deadly pest white fly than the genetically modified one, the share of Bt variety in total cotton area sown declined to 83% in 2016-17 from 91% in the previous season.

Source: The Financial Express

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Fuel price hike to hit industrial sector hard

Summary: Cleared/AliCoimbatore: The fuel price hike has come as a severe jolt to the industrial sector as well as farming community in Coimbatore, which is already reeling under a crisis.Industrialists say the fuel price hike, coming at a time when they are slowly emerging out of the economic shock from demonetization, would plunge them into deeper trouble. "As common men, the fuel price rise would affect our daily household budget. We would be forced to hike the cost of pumps because of the overall increase in transportation costs. "Increase of VAT from 27% to 34% for petrol and 21.4% to 25 % for diesel seems to be abnormal hike. Unfortunately, we are not at liberty to increase the product cost because of stiff competition," he said.Farmers who are facing one of the worst droughts said the fuel price rise has come as a double blow. Cleared/AliCoimbatore: The fuel price hike has come as a severe jolt to the industrial sector as well as farming community in Coimbatore, which is already reeling under a crisis.Industrialists say the fuel price hike, coming at a time when they are slowly emerging out of the economic shock from demonetization, would plunge them into deeper trouble."The increase will have considerable impact not only on common man but also the textile industry in Tamil Nadu that provides job to over 50 lakh people directly," said South India Mills Association chairman M Senthilkumar. He said the hike is unwarranted when the Centre has announced to implement GST from July 1, 2017.Senthilkumar said the Tamil Nadu textile industry is already in a disadvantageous position as the spinning sector spends around Rs 6/kg to procure over 95% of raw material from other parts of the country and another Rs 4/kg to sell the yarn to other states. VAT hike will have considerable impact on the transport cost of all items as the textile clusters of different value segments are located in different places," he said.In addition to the transportation, textile units had to operate the diesel power generators to manage the load shedding and tripping, the cost of which is going to go up due to the fuel price rise.Pump manufacturers in Coimbatore, who are the key players in the sector in the country, are also worried. "Increase of VAT from 27% to 34% for petrol and 21.4% to 25 % for diesel seems to be abnormal hike. The price rise would deal a severe blow to the industrial sector in Tamil Nadu,'' said Kovai Power Driven Pumps and Spares Manufacturers Association president K Maniraj.He said more than 75% of raw materials for pump making are sourced from various parts of the country. "We have to transport our products to markets in other states as well.

Source:  TOI

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Bhiwandi powerlooms slowly picking up pace as migrant workers return

The power looms of Bhiwandi is slowly picking up pace as migrant workers who had left for their hometowns, have started returning to the city. Due to demonetization, loom owners's inability to pay hard cash to daily-wage labourers, had resulted in many leaving in droves for their native in UP, Gujarat and Rajasthan. The exodus caused hundreds of power looms to shut shop. However, recently the scenario of Bhiwandi power looms seemed to have improved, if not changed. With little or no work in their own hometowns, workers have started returning into the city. If this continues, the power loom industry is likely to whirring back in action, owners said. With labourers returning to find work, power loom owners are hopeful. Bhiwandi businessman Fahad Bubere, said that if they can't accommodate them in the mills, they send them to the dying or packing department. Rashid Tahir Momin, who owns 500 looms, said that 50 percent of his looms are already functioning. The situation has improved since February.

Source: Yarns and fibres

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China cuts economic growth target

China has cut its growth target this year as the world’s second-largest economy pushes through reforms to address a rapid build-up in debt and erects a “firewall” against financial risks. The country aimed to expand its economy by around 6.5 per cent, Prime Minister Li Keqiang said in his work report at the opening of the annual meeting of parliament on Sunday. The target was realistic and would help steer and steady expectations, he said. China set a target of 6.5 to 7pc last year and ultimately achieved 6.7pc growth, supported by record bank loans, a speculative housing boom and billions in government investment. But as the government moves to cool the housing market, slow new credit and tighten its purse strings, China will have to depend more on domestic consumption and private investment for growth. As in 2016, it did not set a target for exports, underlining the uncertain global outlook. “The developments both in and outside China require that we are ready to face more complicated and graver situations,” the prime minister said, adding that world growth remained sluggish, while de-globalisation and protectionism were gathering pace. China added 13.14 million new urban jobs in 2016, with the number of college graduates finding employment or starting businesses reaching another record, according to the report. Michael Tien, a Hong Kong delegate to China’s parliament and founder of clothing chain G2000, said he was surprised by the growth figure. “I think it’s very high,” he told Reuters. The 2017 target for broad money supply growth was cut slightly to around 12pc from about 13pc for 2016. The government’s budget deficit target was kept unchanged at 3pc of the Gross Domestic Product. Prime Minister Li said China would continue to implement a proactive fiscal policy, adding that the government aimed to cut companies’ tax burden by about $51 billion this year. The country would also maintain a prudent and neutral monetary policy, he said. At present, systemic risks were under control, but China must be fully alert and build a “firewall” against financial risks, the prime minister said. The prime minister said: “We will apply a full range of monetary policy instruments, maintain basic stability in liquidity, see that market interest rates remain at an appropriate level, and improve the transmission mechanism of monetary policy.” China will also press on with asset securitisation and debt-to-equity swaps. The country would push forward with reform of state-owned firms and assets this year, Mr Li said. “As overcapacity is cut, we must provide assistance to laid-off workers,” Mr Li said. “This year’s target for urban job creation is 1m more than last year,” the prime minister said.

Source: Dawn.

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Chinese villagers become millionaires selling yarn online

Donggaozhuang, about 3½ hours’ drive from Xingtai in Hebei province, has produced dozens of millionaires after its villagers took to selling the thread on the online shopping platform Taobao, the Beijing Youth Daily reported. Taobao, the country’s biggest online marketplace, is owned by the Alibaba Group. It also owns the South China Morning Post. Donggaozhuang is home to at least 400 e-shops that only sell yarn online, according to the article. Villagers buy the wool and turn it into thread. One village leader was quoted as saying that the village with a population of slightly more than 2,000 now boasts a few dozen millionaires since their yarn businesses gained popularity online. It all started with a young villager who set up an online store and made 20,000 yuan (US$2,900) in just three months. His fellow villagers, whose main livelihood was from growing wheat and corn, were amazed, the article said. Village leaders then asked the man to teach others how to start their own businesses. More villagers followed suit, selling or leasing their farmland to focus on producing yarn. Many village children have quit high school to help manage their families’ businesses, the report said

Source: The Financial Express Bangladesh

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Pakistan : policies needed that promote value addition

KARACHI: Recent economic indicators on the performance of the Pakistani economy released by think tanks and rating agencies suggest a positive outlook. The Pakistan Stock Exchange recently broke the 50,000 point barrier. The consumer confidence index published by the State Bank of Pakistan is at its highest level. Although these indicators reveal some optimism, it is imperative to consider the performance of the external sector. An overvalued exchange rate, for instance, is exerting pressure on the external sector. The burgeoning current account deficit needs to be contained on a priority basis. According to the State Bank of Pakistan’s (SBP) data on the external sector, the current account balance between July 2016 and January 2017 is in a deficit of $4.7 billion, an increase of more than 90% over the previous year. Although there is a decline in total exports of approximately 1.3% from the previous period, the imports have increased by more than 9%. Worker’s remittances have also reported a fall in value. Therefore, it is crucial that the policymakers focus on the performance of the external sector, which can have a significant bearing on the economy. Exports The provisional estimate of total exports provided by the SBP in 2016 is $21.73 billion, a decline from $22.7 reported in 2015. The total textile exports fell by 6.5%. Exports of cotton (which includes raw cotton, cotton yarn and fabric) declined by almost 20%. On the other hand, the exports of apparel (not knitted), which reported more than $2 billion in exports in 2016, increased by 5.4% between 2015 and 2016. Pakistan also observed significant increase in the exports of lead, zinc and tin and their respective articles. Therefore, the major traditional export generating industries suffered a decline but other industries, several of them which do not traditionally export their output, observed an increase. This may indicate participation of newer exporters and expansion in export opportunities in non-traditional exporting industries. Considering the country-wise distribution of exports, the exports from Pakistan to major destinations such as China, Afghanistan, USA, UK, Germany and UAE–the traditional export destinations, declined between 2015 and 2016. On the other hand, Pakistan has reported growth in exports to Australia, India, Iran, Netherlands and Thailand. Imports. The import payment as reported by SBP has increased by 5.7% between 2015 and 2016 (calendar years). Petroleum products reported negative growth rates, primarily due to lower oil prices. Import of food products increased by 12.3%, primarily driven by increase in the imports of dry fruits, spices and pulses. Import of textile products increased by 13.5%, driven primarily by an increase in the imports of raw cotton. Approximately, 60% of the trading partners reported positive growth for their imports into Pakistan between 2015 and 2016. Imports into Pakistan from its major trading partners such as China, USA, Japan, Germany, Malaysia, Thailand and UK, increased in 2016. As expected, the growth in imports from several major oil and other primary commodities exporting countries was mostly negative between 2015 and 2016. Additionally, traditional export-oriented industries have observed a decline in domestic production. There is a clear trend of falling exports, rising imports and a lack of growth in domestic production, particularly in traditional export revenue generating industries.The recent incentive packages introduced by the government have been deemed unlikely by economic experts to revert the position in the external sector. It is crucial to adopt policies to increase value addition of output produced within Pakistan.

This will be done through strategies for industrial development that enhance foreign production linkages with Pakistani producers as well improve their absorptive capacity.

Source: The Express Tribune

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Bangladesh : Experts suggest 'indigenisation' recipe to replace foreign workers

Experts suggested devising an 'indigenisation' programme in various sectors for gradual replacement of foreign workers with local manpower, as they take out a substantial sum of money. "Such 'indigenisation programme' has earlier been quite successful in Africa where the foreign workers have progressively been replaced by local ones," said former Adviser of the Caretaker Government A B Mirza Azizul Islam. His views came while speaking Monday at the monthly Luncheon Meeting of the American Chamber of Commerce (AmCham) at a hotel in Dhaka. The former adviser also lamented a lack of data regarding the actual number of foreign workers working in various core sectors, including readymade garments, and the actual amount they send out in remittance. "Nobody knows how many foreign workers are working illegally in the country and how much money is going out through them," he told the business meet. In this context, the former bureaucrat also called for a greater role of Bangladesh Investment Development Authority (BIDA) to monitor various business entities harbouring illegal foreign workers. "BIDA needs to monitor how many foreign workers are working illegally in which organisations and they also need to get into discussion with those entities accordingly," he said. Speakers at the meeting also said Bangladesh should adopt the strategy of gaining duty-free, quota-free market access from the United States in exchange for increasing its cotton imports from the US. "It is notable that we import a substantial amount of cotton every year to feed our readymade garment industry, a certain amount of which comes from US," said Ambassador Farooq Sobhan, a former diplomat who is also founder of Bangladesh Enterprise Institute, a leading think-tank. "What if we increase our cotton import from the United States and get US to agree to provide duty-free, quota-free access for RMGs made of US cotton," said Sobhan, also a former Foreign Secretary of the government. Ambassador Sobhan also emphasized effective lobbying by the government as well as the relevant trade bodies like BGMEA and BKMEA to implement his suggested strategy. "We need to reach out to Congress, we need to reach out to think tanks in Washington, DC. For example, the Heritage Foundation is quite currently influential within the US politics," he said in his suggestion about dealing with the staggering market-access issue. Speakers at the meeting also called for greater US investment in the exploration of gas and oil in Bangladesh in the context of declining gas reserves in the country. "One of the main reasons the gas reserve is depleting in Bangladesh is that there has been no major gas exploration in the last 17 years," Mr Sobhan said, "although earlier estimates suggested the potential reserves to be somewhat in the range of 15 TCF." He noted that the present US Secretary of State, Rex Tillerson, is also an energy executive who was formally Chairman of Exxon Mobil. "In this context, we need to persuade the US authorities and investors to invest in the exploration of potential reserves of gas and oil in Bangladesh," the diplomat told his business audience. Speakers at the meeting also observed that Bangladesh needs to continue to offer larger volume of readymade garments at a lower a price to hold its competitive edge on the global apparel market. Former Foreign Secretary Muhammad Zamir said China can act as an effective strategic partner to turn Bangladesh into the gateway to Southeast Asia. Noting that the flow of foreign investment into Bangladesh is still inadequate compared to most of its neighbours, speakers emphasized advertising the success of Export Processing Zones for attracting more investment in to the proposed Special Economic Zones of the country. "To achieve the goal of becoming a middle-income country by 2021 and a developed country by 2041, we need US$ 10 billion in foreign investment each year," said Ambassador Sobhan. "Just like government's present stance on zero tolerance towards terrorism, we need to adopt zero tolerance towards corruption." he added.

Source: The Financial Express Bangladesh

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Victory as Bangladesh garment workers released

Calls to stop a government crackdown on trade unionists and garment workers in Bangladesh have paid off as the 35 activists who were arrested in a series of December raids have been released. However, major problems remain in the country’s garment industry as the government neglects to fully comply with its labour and human rights commitments. The release of imprisoned Bangladeshi trade union activists and garment workers comes after a global campaign — led by IndustriALL Global Union and UNI Global Union — called on the government of Bangladesh to stop its crackdown on garment workers seeking union rights and a living wage. As a result, a tripartite agreement was reached on February 23, between the IndustriALL Bangladesh Council (IBC), the government and the garment manufacturers’ association, providing for the release of the arrested trade unionists. It is an important victory for garment workers and trade union activists in Bangladesh, but challenges remain in the country’s garment industry as the government continues to ignore its labour and human rights commitments. For example, a recent report concluded that the Bangladeshi government has failed to comply with the Sustainability Compact. The agreement was signed in the wake of the Rana Plaza factory collapse, in which more than 1,100 textile workers were killed on the job when the factory they were working in collapsed. It called for improvements to workplace safety backed up by worker unions and collective agreements.

Source: Green Left Weekly

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In Print USA announces schedule for digital print sessions

InPrint USA 2017, the leading exhibition for industrial print technology, to be held from April 25 to 27, 2017, in Orlando, FL, has announced the schedule of unique educational sessions exploring the latest innovations and applications in the rapidly changing digital print industry, specifically those used in advanced packaging and manufacturing processes. The InPrint USA show comes to the US for the first time, focusing on connecting manufacturers who use print as a key component of the manufacturing process with leading brands in the fields of industrial specialty, screen, digital, inkjet, and 3D technology print solutions. The broad ranging conference program at InPrint USA will feature top industry experts offering their insights in three key areas – functional, decorative, and packaging print. The InPrint USA conference educational sessions will include a keynote presentation by Dr. Robert Fry, chief economist, presenting his outlook for the global economy in 2017 and beyond, with emphasis on US manufacturing. A global industrial inkjet conference will be held where attendees will leave equipped with knowledge on the latest developments for industrial inkjet in functional, decorative, and package printing applications as well as the challenges that may need to be overcome for implementation. IMI Inkjet Tech Talks will also be held, exploring the latest developments in industrial printing and its applications, presented by leading OEMs. The Tech Talks are focused on innovations in inkjet technology and inks and address the challenges of growth in the industrial print sector. The TCM North America decorative surfaces conference will gather suppliers to the North American laminates industry to focus on helping decorative surface producers develop better products for commercial and residential furniture and interiors. A session on the flexible and printed electronics ecosystem, presented by Printed Electronics Now, will look at the opportunities in the marketplace and the challenges facing the flexible and printed electronics constituent groups. In the exhibitor presentation sessions, InPrint USA exhibitors will highlight their new technologies and product research in these presentations on the show floor.

Source: Yarns and fibres

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