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MARKET WATCH 12 SEPT, 2017

NATIONAL

INTERNATIONAL

Exports sector welcomes GST Council decision

Hailing the decisions of the GST Council in resolving some of the concerns of the exports sector in its 21st meeting held here, Federation of Indian Export Organisations (FIEO) President Ganesh Gupta said the pragmatic and positive decisions taken by the Council are welcomed by the exports sector. The reduction of the GST rate on supply of scrips like MEIS/SEIS/DFIA scrips from 12 per cent to five per cent follows the fitment formula adopted by the Council, will also give some boost to premium on scrips which plummeted with restriction on utilisation of scrips in the GST regime, Mr Gupta said. He exuded confidence that the wider utilisation of scrips will also be looked by the new Committee as Government's objective is to benefit the exporters through the grant of scrips rather than the importers.

Restriction on Inter-State job work disrupted manufacturing in clusters close to Inter-State borders and gave a jolt to employment in such areas, the FIEO chief said the new changes for InterState job work, where job worker's turnover is below the threshold limit of Rs 20-lakh (Rs 10-lakh for specified states) has now been permitted without registration of job worker, will give a boost to employment in industrial clusters close to inter-state boundaries particularly units in National Capital Region. FIEO President said, "We whole-heartedly welcome the formation of institutional mechanism where a Committee of Central and State Government has been formed under the Chairmanship of the Revenue Secretary to address the issues of exports sector. FIEO will shortly be flagging concerns of export sector with the Committee."

SOURCE: The WebIndia123

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Gujarat extends its textile policy by one year; AEPC hails move

The Apparel Export Promotion Council (AEPC), the apex body for apparel exporters in India, welcomes the extension of Gujarat's textile policy, which was set to expire on September 2017, will now remain in force till September 2018. AEPC has welcomed the announcement of Gujarat government to extend its textile policy by one year, informed council in a press statement in New Delhi on Sunday.  The policy was set to expire on September 4, 2017 that will now remain in force till September 3, 2018. As part of its consultations for the new textile policy for Gujarat, AEPC had asked for the availability of plug and play Infrastructure for apparel manufacturing in the form of readymade sheds for apparel factories in select locations either on long-term lease or rental basis.

The Council has also asked for incentives in the form of infrastructure and project cost assistance for setting up mega Apparel Park in the state and exemption of stamp duty for the developer of park and enterprises on purchase of land. Commenting on the initiative, Ashok G Rajani, Chairman Apparel Export Promotion Council said, "We welcome the announcement of Gujarat government to extend its textile policy by a year. The textile policy of the state has been formulated with an objective to realize honorable prime minister's vision of "Farm to Fibre to Fabric to Fashion to Foreign" (5 Fs)". To help Gujarat in realization of this objective, AEPC has already submitted a set of recommendations for implementation, to the state government. "We are hopeful that the state government will consider the all-encompassing draft recommendations of the council and include the same in the form of an apparel package/policy to make state an attractive destination for investments in garments and textile sector," he added. In its recommendations, the council has also asked for interest subsidy to apparel units that have availed benefits under the TUFS with MSME units having the option to choose availing of the assistance of capital investment subsidy or assistance for interest subsidy as per the state scheme of assistance to MSMEs.

On the issue of power tariff, the council has made a request for power tariff subsidy to those enterprises which operates at an average 75 percent capacity in the trailing 12 months. It has also asked Gujarat government to provide assistance for construction of dormitories as per the industry requirements in select locations. Concurrent with Government of India's vision of Skill India, the council has also requested for providing wage assistance for new employment and assistance for setting up training institutions for skill development. It has asked for support to centers running ISDS, PMKVY, DDUGKY and other skill development schemes. AEPC is the official body of apparel exporters in India that provides invaluable assistance to Indian exporters as well as importers/ international buyers who choose India as their preferred sourcing destination for garments.

SOURCE: The SME Times

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Textile body advises mills to curb production for 30-60 days

The disparity between cotton and yarn prices has put the spinning sector in a tight spot, especially due to the steep decline in the price of yarn compared with the fibre cost.  To tide over the situation, the Indian Texpreneurs Federation has advised its members to cut yarn production by 35 per cent for a period of 30 to 60 days.

Go-slow tactics

“Reduced yarn supply will help match the demand. But if yarn supply needs to be curtailed, mills will have to go slow in consumption of cotton and this, in turn, will help bring down the cost of the fibre as well. This tactic will help the mill sector reduce loss, besides bringing about a balance in cotton and yarn prices,” said Prabhu Dhamodharan, Secretary, Indian Texpreneurs Federation. By the Federation’s assessment, a number of standalone spinning units are cash-starved, considering that many varieties of yarn are now selling at levels well below the manufacturing cost.  “If we curtail yarn production for two months, yarn supply will drop,” Dhamodharan said. The spinning sector has to do this as in the textile manufacturing chain, all others such as weaving, processing, apparels and home textiles optimise their utilisation levels based on demand, supply and order trends, he added.

Irrespective of market conditions, the spinning sector operates 24x7x365. It should, like the cement or steel industry, optimise its production levels based on market intelligence and minimise the impact on its financials during a period of demand downturn, Dhamodharan said. When asked if such a decision would not impact the workforce, he said the mills could retain the workforce, redeploy them in maintenance work, and impart training on new methodologies to improve productivity.

Long-term formula

According to the ITF secretary, mills have to formulate a sustainable and long-term formula, instead of resorting to interventions every now and then.  “Changing times need new thinking and alteration in business models to sustain in business. Standalone spinning units can move up the value chain by making value-added products , instead of making only yarn. For the present though, it would be advisable to curtail yarn production and minimise the loss,” he added.

SOURCE: The Hindu Business Line

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GST revision: cotton quilts, corduroy fabric to cost less

The Goods and Services Tax (GST) Council, at its 21st meeting in Hyderabad, decided to reduce levy on 40 items, which include textile items like cotton quilts and corduroy fabric. The tax has been decreased after the fitment committee noticed anomalies in GST levied on these products. The Council also extended dates for filing GST returns. Moreover, khadi fabric sold through Khadi & Village Industries Corporation (KVIC) shops have been exempted from GST, as per a list uploaded on the website of the Central Board of Excise and Customs (CBEC).

Cotton quilts costing up to Rs 1,000 will attract 5 per cent GST while those above Rs 1,000 will come under 12 per cent GST slab. The GST rate earlier was uniform at 18 per cent. The rate on sari fall and corduroy fabric has been lowered from 12 per cent to 5 per cent. Further, in view of the difficulties being faced by tax payers in filing their returns, the Council extended the last date for filing GSTR-1 for July 2017 to October 10 this year. However, for registered persons with aggregate turnover of more than Rs 100 crore, the due date shall be October 3.

Like-wise, the revised due dates for filing GSTR-2, GSTR-3 and GSTR-6 for July 2017 are now October 31, November 10, and October 13 respectively. However, the last date for filing GSTR-4 for July-September quarter remains unchanged at October 18. Table-4 under GSTR-4 is not to be filled for the quarter July-September 2017 and requirement of filing GSTR-4A for this quarter is dispensed with, according to an official release.

The registration for persons liable to deduct tax at source (TDS) and collect tax at source (TCS) will commence from September 18. However, the date from which TDS and TCS will be deducted or collected will be notified by the Council later. The GST Council also decided to set up a committee consisting of officers from both the Centre and the states under the chairmanship of the revenue secretary to examine the issues related to exports. The Council also decided to constitute a Group of Ministers to monitor and resolve the IT challenges faced during GST implementation.

SOURCE: Fibre2fashion

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Telangana: Will bumper cotton yield cause price crash, farmer distress?

Telangana marketing department officials are bracing for what might be a repeat of previous years when a large quantity of cotton flooded the market, with a record cotton yield expected to hit markets from next month. With no water in Krishna basin projects, the State’s farmers switched to cotton from the traditional paddy and other commercial crops this kharif. As a result, cotton was sown in a whopping 111 per cent area against the normal area.

The State government is expecting a yield of over 30 lakh metric tonnes of cotton this year, a bumper yield after several years.  The increased production might lead to drastic fall of prices, officials said. Officials admitted that the government had made no timely effort to educate the farmers about the possible repercussions of cotton cultivation on a large scale. Cotton purchasing depends on international markets and the farmers were not warned about problems caused by excess yield, an official said.

Sensing trouble, Marketing Minister T Harish Rao had asked the Centre to open more Cotton Corporation of India purchasing centres in the state. The Centre had only sanctioned 83 purchasing centres to the state. Rao wanted that increased to 143 and the centres kept open for at least six days a week.Cotton cultivation in the state increased this year due to farmers getting a good price for cotton produce last year, even as chilli and soya farmers burnt their fingers when prices for those crops crashed. Further, a shortage of water forced farmers to switch from paddy to the less water intensive cotton.

Deficit rainfall that the state has experienced may compound the problem. As against the normal rainfall of 613.5 mm so far in the state, the actual rainfall recorded is just 545.0 mm, a deviation of 11 per cent. “Less rainfall during the crucial flowering period will minimise the chances of the crop getting affected with diseases,’’ an official said,  adding that this would contribute to a bumper yield.

Cotton, cotton everywhere

Due to the deficit rainfall, only 87 per cent of the cropped area is covered by crops in the State this Kharif. The total sown area in the state is 37.79 lakh hectares against the usual 43.24 lakh hectares. Of this, however, cotton is being cultivated over 18.61 lakh hectares against the usual 16.76 lakh hectares, or 111 per cent against the normal. This may pose difficulties to farmers if the crop floods the market.

SOURCE: The New Indian Express

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Market worry for cotton growers in Western Odisha

Cotton crop grown in Sonepur and Boudh districts would be ready for harvest in next two months. But the farmers are a worried lot. In absence of an organised market for sale of their produce, they are left at the mercy of a spinning mill owner in Sonepur and middlemen. Since Kolkata-based mill owner procures cotton at less than market price, the farmers have to travel to a cotton market in the neighbouring Balangir.This year, cotton has been grown over 3,000 hectares (ha) of land in Birmaharajpur, Ulunda and Tarbha blocks and some pockets of Sonepur. But, the district administration has made no effort to rope in agencies for procurement or open mandis. While a decision was taken to open mandis two years back, there has been no headway in this direction. This has exposed the growers to middlemen who are on the prowl to purchase cotton at low price.

Although in a meeting of the District Level Monitoring Committee for Cotton presided by Sonepur Collector Dasarathi Satpathy held in October last year, it was decided that a cotton mandi would function under Regulated Market Committee (RMC) at Birmaharajpur, work on the structure and its godown is far from complete. Only after its completion, RMC can invite the Cotton Corporation of India (CCI) to open procurement centre at the mandi.

Earlier, due to the intervention of former Sonepur Collector Bhawani Shankar Panda, the spinning mill was procuring cotton at market rate and the purchase amount was directly deposited in the account of farmers. The arrangement  was in place for three years till Panda retired in March this year. The farmers alleged that now the spinning mill owner is dictating terms as far as procurement is concerned and they are forced to travel all the way to Balangir to sell cotton at a mandi there. They said if the old system is put back in place, the procurement problem would be resolved.

The situation is no way different in Boudh where the farmers also sell their produce either at the Sonepur spinning mill or mandis in Balangir and Phulbani.The officials, however, said steps are being taken to streamline the procurement system. While Deputy Director of Agriculture, Sonepur, PK Samantray said RMC was working on developing a mandi at Birmaharajpur, secretary of the RMC Banamali Nayak said a godown is being constructed at Badkhamar village. Nayak said once the construction is complete, RMC would move the CCI for procurement of cotton.

SOURCE: The New Indian Express

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SIMA CD & RA elects office bearers for 2017-18

The SIMA Cotton Development and Research Association (SIMA CD & RA) has announced its office bearers for 2017-18. B Lakshminarayana, Vantex Limited MD has been re-elected as the chairman, R Elango, Sangeeth Textiles Ltd ED has been re-elected as the deputy chairman and R Ravichandran, Veejay Yarns & Fabrics Ltd director has been re-elected as vice-chairman. The members for 2017-18 were elected at the 42nd annual general meeting of SIMA CD & RA held in Coimbatore.

SIMA CD&RA is a registered non-profit organisation, established in the year 1974 by the textile mills in the Southern States of Tamil Nadu, Andhra Pradesh, Karnataka and Pondicherry. Its main objective is to promote the development of cotton farming for enhancing cotton production, productivity and fibre quality so that the raw cotton may be made available at reasonable price to the textile mills. It supplements the efforts of the state and central governments and other agencies in promoting the increased production of quality cotton to meet the demands of the textile industry.

Recently, SIMA CD&RA jointly with Point Industries (sister concern of Sharp Industries, Coimbatore) developed an indigenous kapas plucking machine in a cost effective manner. With this machine, a farmer can pick 60-80 kgs of kapas per day as against 12-20 kgs of manual picking and it picks only matured and fully bursted kapas without any trash and contamination. The machine was tested by the Tamil Nadu Agricultural University and the test report certified that 42-62 kg of seed cotton had been picked per day with this machine. Tamil Nadu Government sanctioned 50 per cent subsidy for this machine so as to motivate the farmers to opt for cotton cultivation, thereby increase cotton area and sustain the textile industry.

SOURCE: Fibre2fashion

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Workshop on textile technology

Indian Textile Accessories and Machinery Manufacturers’ Association (ITAMMA), in association with Northern India Textile Mills Association (NITMA) and Federation of Industrial and Commercial Organisation (FICO), will organise a workshop on ‘creating an ecosystem for innovation and technology development in textile industry’ from 2 pm to 5 pm at Hotel Park Plaza tomorrow. It will be followed by product-cum-catalogue show at the same venue.

Addressing a press conference here today, Amit Chopra from the ITAMMA said it would be 19th product-cum-catalogue show of the association and such shows had received overwhelming response. This will be the fourth workshop wherein industry experts, academicians, industrialists and machinery manufacturers will be invited to share their regarding innovations being implemented.

Further, he added that the product-cum-catalogue show would provide a common platform to the textile manufacturing industry and the textile engineering industry to discuss and interact on the problems and requirements in regard with technical and technological aspects as well as marketing issues.

SOURCE: The Tribune India

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Custom made couture for children

While there is a designer in almost every nukkad in town these days, there isn’t much to choose from when it comes to kids’ clothes. It is to bridge this gap that Samta Arora and Shruti Agarwal came up with their own studio which designs children’s couture. Their kids wear is trendy, personalised and comfortable ensuring that the little ones look their stylish best for special occasions. The designers use fabrics like jute and raw silks apart from weaves like Chanderi and Benaras. From Princess gowns and half saris for girls to kurtas and dhotis for boys, they specialise in luxury festive clothing.

Starting out

Samta who worked with an advertising agency initially and later with an IT firm as a visualiser was always interested in fashion. She says, “Designing clothes was my passion which came instinctively be it colours, style or texture. When I moved to Hyderabad I saw a vacuum in this segment and slowly transmuted my passion into my profession.” She along with her friend Shruti, who had experience in textile industry started their own studio last year and have been going from strength to strength ever since. The duo has participated in the fourth season of Indian Kids Fashion Week in Mumbai which had designers from all over India.

Shruti says that the fact that children had little options made her thinking out of the box. She says, “For kids what was available was either casual or very jarring. There was not much style available. As the kid’s age changes so do their silhouettes. We cannot dress up a one year old baby as a 10 year child or vice versa. The most important thing that we keep in mind is the comfort of the child. If the child is wearing a grand ensemble we make it a point to see it’s baby friendly.” The duo generally chooses pastel colour palettes to lend a dreamy look to their gowns, while for boys, they make Indian wear which is generally done up in bright shades keeping in mind the festivities.

Well coordinated

The duo take a keen interest in detailing and Shruti explains their creative process when she says, “Our garments are designed to engage your child’s imagination with styles canvassing western, ethnic and fusion styles while toying with classy, geometric and playful looks. This allows our garments to cater to a swathe of occasions and needs. So if your child needs a layered, classy outfit for a wedding ceremony or an edgy outfit for a birthday party, we’ve got your back! We enhance them by including gloves, tiaras, clips and hair bands!”

While they primarily design for children, for special occasions they make clothes for the entire family. They generally choose the same colours or motifs and use variations in cuts and designs to create a look for the entire family. Samta adds, “Our forte is basically for kids but we create for both the parents. We zero down on the kids outfit then develop for the parents.” Another distinguishing feature in their Indo-Western wear is that of multi functionality. Shruti says that their pieces have multiple utility and adds, “We like to tweak regular wear. So, we pair our ghagras with crop tops so that the kids can use it differently after a while. The crop top can go with jeans while the ghagra can be used as a skirt.”

Samta concedes that designing for kids is a great challenge. She explains, “We have to keep a few aspects in mind so that they are comfortable, free flowing and the final product should enhance their personality and most important they should look their age.” While most of their orders earlier were from social media, they have a studio in Somajiguda currently where they meet clients strictly on appointment. Samta says that they are planning to open a store next year while Shruti says they are looking forward to tie up with stores abroad as well as starting their own range of Indian menswear for adults.

SOURCE: The Hindu

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Rupee off 1-month high, drops 15 paise to 63.93

The rupee today retreated from its one-month high to end lower by 15 paise to 63.93 a dollar on overwhelming demand for the American currency from corporates and banks. The rupee traded under pressure in view of strengthening US dollar following easing geopolitical tensions in the Korean peninsula and also abating concerns over Hurricane Irma which subsided over the weekend. Heavy capital outflows also weighed on the rupee trade. Currency traders also turned cautious ahead of key macro data releases including IIP and inflation numbers. The home currency experienced a stunning rally last week.

In the meantime, country's forex reserves surged by a massive USD 3.572 billion to touch a record high of USD 398.122 billion for the week ended September 1, on account of rise in foreign currency assets, RBI data showed. Breaking a stellar three-day upsurge, the local unit resumed sharply lower at 63.91 as against last Friday's close of 63.78 at the forex market. It was later tucked in a narrow range -- 63.8350 and 63.9450 -- before ending at 63.93, revealing a steep loss of 15 paise, or 0.24 per cent. The home unit had appreciated a good 34 paise in the last three days.

The dollar strengthened across the board after posting its biggest weekly drop in two months as a decline in risk aversion spurred some investors to cover their short positions before US inflation data later this week. The RBI, meanwhile, fixed the reference rate for the dollar at 63.8664 and for the euro at 77.0357. The dollar index, which measures the greenback's value against a basket of six major currencies, was sharply down at 91.59.

In cross-currency trades, the rupee remained under pressure against the pound sterling and settled at 84.48 from 84.28 per pound, but recovered against the Euro to finish at 76.69 from 76.92. The local unit also bounced back against the Japanese yen settle at 58.86 per 100 yens from 59.39 earlier. Foreign investors and funds pulled out close to Rs 3,000 crore from equities in the first week of this month amid "lacklustre earnings season" as well as lingering tensions between the US and North Korea. Domestic bourses witnessed a new breakout phase after their recent consolidation phase on optimistic buying in frontline heavy-weights along with key auto stocks. Global bourses were largely positive after the perceived threat of a North Korean missile test at the weekend failed to materialise. The BSE benchmark Sensex jumped nearly 195 points to end at 31,882.16, while Nifty surged over 71 points to settle at 10,006.05.

In forward market today, premium for dollar showed an easy trend due to lack of market moving factors. The benchmark six-month premium payable in February edged marginally higher at 126-127 paise from 125.50-127.50 paise and the far forward August 2018 contract also inched up to 266.50-267.50 paise from 264.50-266.50 paise yesterday. On the international energy front, crude prices edged lower on concerns that Hurricane Irma's pounding of heavily populated areas of Florida could dent oil demand in the world's top oil consuming nation. However, losses were capped by weekend talks between Saudi Arabia's oil minister and counterparts over a possible extension to a pact to cut global oil supplies beyond next March. Brent crude oil futures for November delivery were down 33 cents at USD 53.45 a barrel while benchmark US West Texas Intermediate crude advanced by 22 cents to USD 47.70.

SOURCE: The Economic Times

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Merchandise exporters cheer as rupee falls against some peers

The rupee's appreciation against the dollar masks the windfall gains for exporters of merchandise goods to Delhi's traditional trading partners -the UK, Singapore, or Euro zone -where the world's reserve currency has slid against local tenders. The Pound Sterling, the Singapore dollar, and the Euro have advanced against the US currency so far this year, offsetting the impact of the rupee's appreciation against the dollar.

"The Make-in-India campaign would get a boost from a weaker rupee," said KN Dey, managing partner at United Financial Consultant, a forex advisory firm. "If you compare our macro data with those in other emerging markets, India needs to go a long way. The rupee has fallen against select currencies." The dollar index, which measures the unit against six other major currencies, fell about 11 per cent this calendar year.

While the rupee has gained about 6 per cent against the greenback, it has weakened against other leading currencies such as the Euro, the Pound, and the Singapore dollar. Among India's top 25 trading partners, India had significantly positive balances of trade with Italy, the UK, and Singapore in the three months to June, going by data published by the federal commerce department.

India also had positive net exports in its trade relationship with the US, the UAE, Hong Kong, and Vietnam. The rupee has lost significantly compared with about 15 emerging market currencies, such as the Chinese Yuan, Thai Baht, and the Russian Rouble, and nine developed-market currencies including the Euro, Australian dollar, and the Canadian unit during the period, Bloomberg's data on spot returns show. "The central banks are not seen intervening strongly in those countries," said Anaindya Banerjee, currency analyst at Kotak Securities. "Back home, the central bank is always seen controlling the rupee's move whenever there are wild swings. This has added to the rupee's value loss to these currencies. Exporters have gained despite the local unit's rise against the greenback." "We do not have any direct currency swap with them but go through the dollar route," said Rishi Sahai, managing director at Cogence Advisors, which specialises in cross-border financing and transactions between India and China.

SOURCE: The Economic Times

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India may Rise on Ease of Business Index

The government expects a double-digit improvement in India’s rank in the global index on ease of doing business, likely to be announced by the World Bank next month. A senior official told ET that the World Bank had shared its feedback, stating that it had accepted many of the reforms claimed by the government. Last year, India's rank had improved by just one spot to 130 among 190 countries. “The World Bank has acknowledged around 20 reforms among many more mentioned by us in response to their study … The overall ranking will depend on how other countries have performed, but we should come close to the 100 mark,” the official said.

The World Bank had recently finished gathering feedback from users for its Doing Business Report. The cut-off date for implementing reforms for the study was June 1. Reforms implemented thereafter will not be counted for this year’s ranking.

Reforms such as GST have not been taken into account as the impact is yet to be felt by users. But India is expecting these to reflect in next year’s report and significantly boost the country’s position. India had showed one of its poorest performances on the parameter of ‘Paying Taxes’ last time, ranking 172 among the countries surveyed for the report. That, along with an equally lower position in ‘Enforcing Contracts’, landed India at the 130th spot, falling behind countries such as Mexico (38), Russia (51) and Pakistan (138). The ranking considers business environment in Delhi and Mumbai.

Over the past few months, the government has taken up concerns about not getting due credit for its reform drive with the World Bank. While responding to the survey this year, the government flagged such issues citing examples of reforms undertaken for enforcing contracts, starting business and issuing construction permits, among other things. The government also cited provisions in the existing legal framework that deal effectively with the issue of enforcing contracts.

SOURCE: The Economic Times

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Too much of a not-so-good thing

Foreign portfolio investors (FPI) have been relentlessly pouring money into Indian debt for eight months in a row, with total investment on this score adding up to $20 billion this year. The buoyant funds flow has hardened the rupee, thoroughly decelerated export growth, and has led to no apparent productivity improvement in the real economy. We need proactive regulation of foreign debt, boost allocation for long-term investors and stem short-term debt inflows. The point is that short-term foreign debt funds can exit in a jiffy, which can have macro-prudential consequences for the financial system. Besides, it makes no sense to keep the rupee artificially high. It is essential to step up cross-border flows by long-term investors.

Meanwhile, the markets regulator, Securities and Exchange Board of India (Sebi), has for the July-September quarter marginally raised the FPI debt limit in central government securities to Rs 1,87,700 crore. In tandem, the investment limit for long-term FPI, such as sovereign wealth funds, pension funds and multilateral agencies, has likewise been raised to Rs 54,300 crore. The Sebi circular also requires that future increases of FPI limit in government debt be allocated in the following ratio: 75 per cent for long-term category FPI and 25 per cent for other FPI. But note that only about 20 per cent of government debt in FPI holdings are with long-term investors. Looking ahead, the ratio needs to be purposefully increased to boost investor commitment.

The RBI, which regulates the auction of treasury bills, needs to be much more circumspect when it comes to allocating short-term government securities to general category FPI, never mind the competitive bidding in such auctions. More important, the RBI needs to review its interest rate policy. It cannot be gainsaid that the high relative interest rate structure in India is perverse incentive for overseas funds to aggressively seek arbitrage opportunities here. Speculative flows that enrich short-term capital while hurting India’s real economy should be reined in, with taxes or minimum holding periods.

SOURCE: The Economic Times

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GLOBAL TEXTILE RAW MATERIAL PRICE 2017-09-11

Item

Price

Unit

Fluctuation

Date

PSF

1326.87

USD/Ton

0%

9/11/2017

VSF

2469.13

USD/Ton

0%

9/11/2017

ASF

2399.90

USD/Ton

0%

9/11/2017

Polyester POY

1338.41

USD/Ton

0%

9/11/2017

Nylon FDY

3169.10

USD/Ton

0%

9/11/2017

40D Spandex

5538.24

USD/Ton

0%

9/11/2017

Polyester DTY

5815.15

USD/Ton

0%

9/11/2017

Nylon POY

1553.78

USD/Ton

0%

9/11/2017

Acrylic Top 3D

2861.42

USD/Ton

0%

9/11/2017

Polyester FDY

2553.74

USD/Ton

0%

9/11/2017

Nylon DTY

1692.24

USD/Ton

0%

9/11/2017

Viscose Long Filament

3276.79

USD/Ton

0%

9/11/2017

30S Spun Rayon Yarn

3076.80

USD/Ton

0%

9/11/2017

32S Polyester Yarn

1992.23

USD/Ton

1%

9/11/2017

45S T/C Yarn

2861.42

USD/Ton

0%

9/11/2017

40S Rayon Yarn

3246.02

USD/Ton

0%

9/11/2017

T/R Yarn 65/35 32S

2399.90

USD/Ton

0%

9/11/2017

45S Polyester Yarn

1984.54

USD/Ton

0%

9/11/2017

T/C Yarn 65/35 32S

2384.52

USD/Ton

0%

9/11/2017

10S Denim Fabric

1.43

USD/Meter

0%

9/11/2017

32S Twill Fabric

0.88

USD/Meter

0%

9/11/2017

40S Combed Poplin

1.23

USD/Meter

0%

9/11/2017

30S Rayon Fabric

0.69

USD/Meter

0%

9/11/2017

45S T/C Fabric

0.72

USD/Meter

0%

9/11/2017

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15384 USD dtd. 9/11/2017). 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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Stain protective apparel: preserving aesthetics, durability, functionality and sustainability

The market for stain protective apparel has grown significantly in recent years and is set to grow further in the coming years, according to a new report from the global business information company Textiles Intelligence – Stain protection in textiles and apparel: preserving aesthetics, durability, functionality and sustainability. Stain repellent garments are essential in applications such as medical clothing and industrial workwear where there is a need to prevent spills from penetrating a garment and reaching the wearer – especially in cases where such spills have the potential to cause harm to human health. Also, stain repellent garments have proliferated in the casual wear market. This is due partly to the fact that they provide better protection against spills than conventional clothing. However, an additional benefit is that stain protection reduces the frequency with which garments need to be laundered and dry cleaned – thereby saving time for the user as well as reducing energy usage, water consumption and carbon dioxide (CO2) emissions.

However, manufacturers of stain repellent garments and stain repellent treatments are under pressure to ensure that the incorporation of anti-staining features in clothing does not cause harm to human health or the environment. The chemicals of choice for imparting stain protection properties to textiles have been fluorocarbons based on C8 chemistry because of their unparalleled ability to repel water and oil. But the manufacture of these compounds can result in the generation of chemicals such as perfluorooctanoic acid (PFOA) – which has been declared “likely to be carcinogenic to humans” by the US Environmental Protection Agency (EPA) – and perfluorooctane sulphonate (PFOS), which is known to be toxic, to be persistent in the environment, and to be bio-accumulative as it can be stored in the bodies of humans and animals.

Manufacturers of stain repellent technologies are therefore stepping up their efforts to develop products which are more environmentally friendly. As part of those efforts, many are focusing on the use of fluorocarbons with shorter fluorinated chains based on C6 chemistry. However, while treatments made from shorter fluorocarbon chains provide sufficient liquid repellency for less demanding applications, such as outdoor wear, they do not perform as well as treatments made from longer fluorocarbon chains for applications which are more challenging – such as the finishing of garments which are subject to heavy staining during use or medical clothing for which good water repellent and oil repellent properties are essential. Furthermore, they are not ideal from the perspective of safeguarding human health and the environment.

Clothing suppliers with strong environmentally friendly credentials therefore view treatments made from shorter fluorocarbon chains as provisional technologies, to be used only until an effective fluorocarbon-free alternative is developed. Fabrics with oil repellent and water repellent properties and environmentally friendly credentials have been successfully developed in research laboratories but few have proved sufficiently durable to withstand rigorous use, and few are viable for large-scale production. Scientists will therefore continue to explore ways of developing fabrics which can repel water and oil without the use of fluorocarbons. Researchers are also exploring the potential of garments which are capable of cleaning themselves – or even of repairing themselves if they become damaged. Many will use “biomimicry” and seek inspiration from the natural world in their quest for materials and treatments which combine effectiveness, safety and eco-friendliness.

SOURCE: The Innovation in Textiles

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Healthcare fabrics market to reach $12.90 billion

The healthcare fabrics market, which is estimated at US$ 9.48 billion in 2017, is projected to reach US$ 12.90 billion by 2022, at a CAGR of 6.4% between 2017 and 2022, according to the latest report published by Markets and Markets. Rising consumer awareness regarding hygiene products along with the improved quality of healthcare fabrics is expected to drive the growth of the healthcare fabrics market during the forecast period, says the report.

Growth segments

Among raw materials, the polyester segment of the healthcare fabrics market is projected to grow at the highest CAGR during the forecast period, 2017 to 2022. This high-growth of the polyester segment can be attributed to its high performance at lower cost, as fabrics made of polyester are strong and have high tensile strength. They are highly durable, chemical resistant, wrinkle-resistant, abrasion-resistant, and offer structural stability. Thus, the demand for polyester is expected increase during the forecast period.

Amongst fabric type, the nonwoven segment of the healthcare fabrics market is projected to grow at the highest CAGR. Nonwoven fabrics are used in various hygiene products ranging from baby diapers, to adult incontinence products. They are used as an alternative to traditional textiles due to their absorption properties, softness, smoothness, strength, comfort and fit, stretchability, and cost effectiveness. These have various advantages over woven and knitted fabrics and hence this segment is expected to grow at the highest rate during the forecast period.

Asia Pacific market

The demand for healthcare fabrics in hygiene products is mainly driven by the increase in consumption of sanitary napkins and baby diapers in the emerging countries of the Asia Pacific. Moreover, rising awareness and growing disposable incomes coupled with the rising numbers in the new born and menstruating population is expected to fuel the growth of the healthcare fabrics market in hygiene products.

The Asia Pacific healthcare fabrics market is expected to grow at the highest CAGR during the forecast period. The increase in disposable incomes of middle-class populations in the Asia Pacific region makes it an attractive market for manufacturers of healthcare fabrics. The demand for healthcare fabrics is high in the region owing to improving standards of living, increased focus towards the use of personal hygiene products and growing populations.

Market players

Currently, the healthcare fabrics market is led by various market players, such as Designtex (US), Maharam Fabrics Corporation (US), Knoll, Inc. (US), Brentani Inc. (US), Arc-Com (US), Kimberly-Clark Corporation (US), Paramount Tech Fab Industries (India), Advanced Fabrics (SAAF) (Saudi Arabia), Avgol Industries 1953 Ltd. (Israel), and Architex International (US), among others.

SOURCE: The Innovation in Textiles

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Messe Frankfurt takes the reins of SA textile, footwear and apparel shows

The South African subsidiary of global trade fair company Messe Frankfurt has acquired Africa's largest textile, footwear and apparel shows Source Africa and ATF (Apparel, Textile & Footwear).  Until now the events were organised by Leaders in Trade Exhibitions (LTE), which has been in the business of organising trade shows for over 25 years. Speaking at the announcement on Friday morning, LTE member William Scalco said that despite being satisfied with the success of the events, the company believes that handing over the reins to an international organisation will help grow the shows on an international scale.

Scalco referred to a report by McKinsey & Co. that saw African countries – including South Africa, Mauritius, Swaziland, Ethiopia, Tanzania, Egypt and Botswana – being mentioned for the first time as top sourcing destinations for apparel, textiles and footwear. He said that South Africa can become an especially major sourcing destination and that opportunities will continue to surface for local manufacturers. "Since its inception in 2013, it has been the objective of Source Africa to promote African apparel, textiles and footwear and encourage linkages between international and regional buyers, manufacturers and suppliers, thereby promoting investment into manufacturing capacity in Africa with the goal of accelerating jobs for our people." "We have found an ideal partner in Messe Frankfurt and with their worldwide network and expertise we can establish Source Africa as the go-to calendar event for international and regional industry professionals."

Global network opportunities

Germany-born Messe Frankfurt is the third largest trade fair company in the world with operations in over 50 countries and is the leader, globally, in textile fairs. It organises over 134 trade fairs around the world with over 90,000 exhibitors and roughly 3.5m visitors. Source Africa and ATF will be added to Messe Frankfurt South Africa's portfolio of local fairs, which include the South African Festival of Motoring, Automechanika and Cape Town International Boat Show. The MD of Messe Frankfurt SA, Konstantin Von Vieregge, spoke at the launch breakfast and expressed the company's faith in South African industry. "Our South African branch is a truly South African company with the support of a global network. We are not in South Africa just to make a quick buck. We think 15 to 20 years ahead and we see growth in South Africa and Africa so we are here to stay. We are committed to ensuring the growth of these industries in South Africa and we want to expose South Africa’s potential to the rest of the world."

Von Vieregge described the benefits of having a global company like Messe Frankfurt run trade events like Source Africa and ATF. "We'll be integrating these two shows into our global network, which will open up new doors and put it on the map as a show that's not just regional, but part of a bigger network.  "Messe Frankfurt has a strong name in the industry and that adds credibility. We have access to global experts because that’s what we do on a day to day basis and we can ensure global standards for the show - when we put our name on a trade fair there are certain standards we have to adhere to. Importantly, we have cross-marketing opportunities globally so that means we can promote the SA show around the world."

SOURCE: The Biz Community

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Tension continues as UN passes new sanctions on North Korea

FOREIGN Affairs Minister Julie Bishop welcomed the unanimous resolution by the United Nations to impose new sanctions on North Korea after its sixth and largest nuclear test.  She told a meeting of Coalition MPs in Canberra today: “This is the toughest sanctions package yet.” With backing from China and Russia, the council voted 15-0 to slap a ban on textile exports and restrict shipments of oil products to North Korea. A US official familiar with negotiations said the Trump administration expected unanimous approval of the resolution. Japan’s UN ambassador, Koro Bessho, said: “I think everyone’s concerns have been satisfied, including ours.”

The draft resolution, agreed to late Sunday after final negotiations between the US and China, the North’s ally and main trading partner, also eliminated a US proposal to authorise the use of force to board and inspect nine named ships that Washington said violated previous UN sanctions resolutions. The resolution voted on represented a swift response to the recent nuclear test explosion by North Korea, which has said was a hydrogen bomb, and to Pyongyang’s escalating launches of increasingly sophisticated ballistic missiles that it says can reach the United States. But the provisions were a significant climb-down from the toughest-ever sanctions that the Trump administration proposed in the initial draft resolution it circulated last Tuesday, especially on oil. A complete ban on oil sales could have crippled North Korea’s economy. The revised resolution would ban North Korea from importing all natural gas liquids and condensates. And it would cap Pyongyang’s imports of refined petroleum products at 2 million barrels a year and crude oil at the level of the last 12 months.

According to the US Energy Information Administration, China supplies most of North Korea’s crude oil imports, which the U.S. official put at 4 million barrels a year. The agency cited UN customs data showing China reported sending 6,000 barrels a day of oil products to North Korea, which it said is mostly gasoline and diesel fuel vital to the North’s agriculture, transportation and military sectors. That would mean North Korea imports nearly 2.2 million barrels a year in petroleum products, so the 2 million- barrel cap in the resolution would represent a 10 per cent cut. But the US official said North Korea now receives about 4.5 million barrels of refined petroleum products, which would mean a more than 50 per cent cut. The final draft bans all textile exports by North Korea and prohibit all countries from authorising new work permits for North Korean workers — two key sources of hard currency. It would prohibit all new and existing joint ventures and cooperative arrangements, with some exceptions approved by the UN. Textiles are North Korea’s main source of export revenue after coal, iron, seafood and other minerals that have already been severely restricted by previous UN resolutions.

North Korean textile exports in 2016 totalled $752.5 million, accounting for about one-fourth of its total $3 billion in merchandise exports, according to South Korean government figures. The US official, speaking on condition of anonymity ahead of the council vote, said the Trump administration believed the new sanctions combined with previous measures would ban over 90 per cent of North Korea’s exports reported in 2016. As for North Koreans working overseas, the official said the US expects the cut-off on new work permits to cost North Korea about $500 million a year once current work permits expire. The US estimates about 93,000 North Koreans are currently working abroad, the official said.

N KOREA’S SANCTION WARNING

The United States faces the ‘greatest pain and suffering’ in its history if the UN approves harsh sanctions on North Korea, the country warned last night. Kim Jong-un’s foreign ministry said it would ‘make absolutely sure that the US pays due price’ if measures restricting its oil supply and textiles exports were passed. It is the latest in an escalating war of words after it emerged North Korea had carried out its sixth and biggest nuclear test a week ago. The US-drafted resolution had reportedly been watered down on Sunday in the hope of winning support from China and Russia. All five of the UN Security Council’s permanent members, which also include France and the UK, must unanimously back the resolution for it to come into force.

A North Korea spokesman accused the US of ‘going frantic’ in manipulating the Security Council over its ‘legitimate’ nuclear test, adding: ‘In case the US eventually does rig up the illegal and unlawful “resolution” on harsher sanctions, the Democratic People’s Republic of Korea (DPRK) shall make absolutely sure that the US pays due price. ‘The forthcoming measures to be taken by the DPRK will cause the US the greatest pain and suffering it has ever gone through in its entire history.’ Last week, Pyongyang drew international criticism after claiming it tested a hydrogen bomb that could go on an intercontinental missile capable of hitting the US mainland.

The permanent members had agreed that North Korea should face tougher sanctions, but differences have since opened up between them. China is unlikely to back firm action that could see its historically toppled, while Russia is opposed to an oil embargo. The latest resolution would cap the North’s imports of refined petroleum products and crude oil, while still banning textile exports.

SOURCE: The News

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