India has the potential to become one stop sourcing destination for brands and retailers from ASEAN, according to a latest update from Ministry of Textiles.There are opportunities for textile manufacturers from ASEAN to invest here and cater to domestic market as well as exports because of competitive advantages available in India including availability of raw material, trained man-power and presence of the entire textile value chain. Further, 100% FDI is allowed in the textile sector under automatic route. To increase exports of textile and apparel, Government has announced a Special Package for garments and made-ups sectors. The package offers labour law reforms, additional incentives under Amended Technology Upgradation Fund Scheme (ATUFS), enhanced duty drawback coverage and relaxation of Section 80JJAA of Income Tax Act. Further, the rates under Merchandise Exports from India Scheme (MEIS) have been enhanced from 2% to 4% for apparel and made-ups from 1st November 2017. Products such as fibre, yarn and fabric in the textile value chain are being strengthened and made competitive through various schemes like Powertex for fabric segment, ATUFS for all segments except spinning and Scheme for Integrated Textile Parks (SITP) for all segments. Government is also providing interest rate subvention for pre and post shipment credit for the textile sector and gives assistance to exporters under Market Access Initiative (MAI) Scheme.
Source: Business Standard
Senior sources suggested that the commerce department has requested the revenue department under the finance ministry to revert to its earlier order and extend the date for imposing higher import duties by 45 days. A final decision will be taken by the Central Board of Indirect Taxes and Customs, which is legally bound to bring out an official order on the issue by Friday, they added. Despite announcing a steep tariff hike on US imports last month, India had hoped for a breakthrough in talks before August 4, when the tariffs were supposed to go live. “After these talks stretched on till the early part of this week, final negotiations between both sides had broken down as Washington DC was not interested in providing exemption to India from its tariffs on steel and aluminium, as we had wanted,” a senior commerce ministry official said. The August 4 deadline in itself was a delayed one announced on June 28, which is when the tariffs were initially expected to be imposed. Higher tax by up to 50 per cent on agri goods like apples, almonds, walnuts along with industrial products and steel had earlier been announced by India, aimed at raking in an estimated $240 million worth of additional taxes. Spread across sectors from which imports stood at $1.5 billion in 2017-18, New Delhi claimed the amount was equal to the estimated loss faced by India after the Trump Administration hiked import duties on steel and aluminium in May. Trade experts have pointed out the need for India to remain cautious while responding to the US. “This increase will be in addition to raising new trade barriers, make domestic manufacturing more attractive as the steep increases in Customs duties may make imports unaffordable. For agri products such as pulses, which have witnessed an increase from 30 per cent to 70 per cent, this would provide encouragement in increasing the cultivable area, on the back of good pulses production in recent years,” M S Mani, indirect tax partner, Deloitte India, said. Among the commodities to be hit by the list of items targeted by India, apples and walnuts remain crucial with farms stateside being the largest source for India. Overall fruit import from the US remained $872 million in 2017-18, with India being one of the largest markets.
US aims for market access
At the same time, to offset the hit to these mostly agricultural products, the US is eyeing market access for soybean meal and easier norms on its cherries, as it battles the fallout of multiple tariff escalation. “We are looking for market access for American cherries, avocados, and soybean meal feed for livestock,” Mark Wallace, acting minister counsellor at the US Department of Agriculture, told Business Standard last week. Negotiations on these are on, he hinted. India may delay imposition of higher duties on 29 key imports from US. The US is the third-largest global producer of soybean meal and is eyeing newer markets as the country faces a significant glut in the supply of soybean itself as the largest one — China — has imposed higher tariffs on US soybeans. At the same time, US farmers in the country’s northwest, hub for cherry and apple cultivation, have come under pressure as retaliatory tariffs imposed by China on the $34-billion worth of produce have been implemented. As the trade war between both nations has intensified, orders for cherries have plummeted. The global trading mechanism has been shaken up by $34-billion worth of tariff hikes announced by both the US and China last weekend. Since then, Trump has threatened an additional $200 billion worth of tariffs on Chinese goods and Beijing has indicated it won’t cow down. On the other hand, Washington DC recently granted India the Strategic Trade Authorisation (STA-1) status. This is expected to give a major fillip to the defence partnership between both nations. The status places India on the same level as NATO allies which would allow New Delhi access to high-grade military technology that had hitherto been refused to it.
Source: Business Standard
Surat: Union finance minister Piyush Goyal has made it clear to textile industry leaders that the government does not intend to block input tax credit (ITC), but they are just blocking refund on the amount before July 31. City textile trade leaders from power loom sector, textile traders and Federation of Indian Art Silk Weaving Industry (FIASWI) representatives had attended a meeting with Piyush Goyal through a video conference at the office of district collector on Thursday. The meeting was held to clear confusion prevailing in the textile sector over the ITC. Based on industry representation, the GST Council in its 28th meeting held on July 21 decided to allow refund of ITC accumulated due to inverted duty structure in respect of certain textile goods. A notification dated July 26, amending the earlier notification of June 28, 2017, was issued with a clause that the accumulated ITC credit lying unutilized in balance up to July 31 shall lapseIndustry sources said denial of utilization of eligible ITC availed by fabric manufacturers by treating it lapsed beyond July 31 will be a big blow to the industry. FIASWI chairman Bharat Gandhi told TOI, “The Union finance minister has made it clear that the government has no intentions to block the credit, but they are just blocking refund on the amount before July 31. Also, the Union finance minister has asked us to visit him personally to clear the confusion.”
Source: Times News Network
The 25 basis points increase in the interest rate by Reserve Bank of India is a big negative for exporters, the engineering export promotion body said here today. "With the rate hike they (exporters) would become less competitive in a tough global market that is already facing the threat of tariff war," EEPC India chairman Ravi Sehgal said in a statement. "While the RBI Governor Dr Urjit Patel has himself pointed towards increased global risks including the trade war and widening trade deficit, making higher export growth imperative, the rate of borrowing has been moving up. That is certainly not good news for exporters," he said. In fact the cost of borrowing is adding to the overall cost of production for exporters, particularly in the engineering sector, due to rising prices of raw material like steel, he said. If the GDP growth has to be pushed up to the levels as estimated by the RBI, the exporters need to be supported , like their competitors countries like China, he added.
Source: Tecoya Trend
Kolkata: In a major fillip to connectivity between the North-Eastern States and Myanmar, visa norms will be relaxed for land border crossing through Moreh (Manipur) and Tamu (Myanmar) from this month. India and Myanmar signed an agreement in this regard during the visit of External Affairs Minister Sushma Swaraj to Myanmar last May.
Formal function
According to sources in Manipur, the missions of both countries will hold a ceremony at Moreh-Tamu border, tentatively between August 8 and 11, to mark the relaxation of visa norms. It will coincide with the inauguration of the passenger terminal of the newly-built integrated check-post at Moreh. India has already mobilised immigration and Customs officials at the checkpost. Currently, Indians travelling to Myanmar requires to apply for permit to Yangon, which takes 20-30 days to arrive. Once the permit is available, the traveller can apply for visa. Also, for land travel, Indians have to pay $40 for a tour guide, over and above the visa fees. According to Thokchom Jotin Singh, General-Secretary of Manipur Chamber of Commerce, under the new norms, Myanmar will scrap the provision for permit on land travel, making it easier for both tourists and business travellers to take the land route.
Boost for trade
“The new visa norms will give a major boost to the trade ties between the North-East and Myanmar,” Singh told BusinessLine. Traders in Manipur currently import pulses and yellow corn (animal feed) from Myanmar. Imphal-based Lamjingba group, which offers a wide range of services including online retail, finance, cab service etc, has approached the government for permit to run 50-seater chartered flights between Manipur and Mandalay (Myanmar). The Indian mission in Myanmar has been advocating flight services between Mandalay and North-Eastern cities for quite some time. Currently, the two countries have only commercial air connectivity between Kolkata and Yangon.
Medical tourism
Improved connectivity will also help Manipur to attract patients from Myanmar to the super-speciality hospitals in the State. Manipur witnessed significant investment in healthcare over the last decade. The former Okram Ibobi Singh government built a new medical college. Some private hospitals have also come up, which attract medical tourists in the region. According to Kh Palin, who runs the 200-bed Shija Hospitals, arguably the best of such facilities in Imphal, the flow from Myanmar has been low in the recent past owing to political unrest, visa restrictions and security concerns.
Source: Business Line
Mumbai : As China rushes to invest in more ports in Sri Lanka, India views with concern the Asian neighbour’s bid to increase its footprint in the Indo-Pacific region. China also recently gifted a naval frigate to the island nation. “Sri Lanka has started to emerge as the new battleground for the two Asian super powers, India and China. China, Sri Lanka Ports Authority and India are to invest over $700 million for the development of three key ports over the next three years in Sri Lanka,” said a government official. Though no details have been released about the recent frigate that was gifted to Sri Lanka, market observers believe it could be a Type 053 frigate, or even a Type C28A or C13B corvette, since these three classes are the most common Chinese warships exported to other countries. The official pointed out that though China’s inroads into the Indian Ocean region need to be carefully monitored, vessels are regularly handed over as part of military aid packages, and that India, too, has done so in the recent past. Apart from ports in Sri Lanka, India has committed an investment of $500 million towards the management and operation of two dedicated berths at the Chabahar port in Iran, and has been assisting Myanmar with infrastructure improvement projects at the Sittwe and Paletwa ports. Sources said China could “gain exponentially” through extending financial aid for the development of Sri Lanka’s ports. Though several of China’s projects in Sri Lanka have faced censure, concerns have been raised by the US, India and Japan that China might use Sri Lanka as a military base. The next three years are set to see fresh investments in Sri Lanka, both from China and India. While India is to invest $40 million to upgrade the Kankesanthurai Port in northern Sri Lanka into a commercial port, and has extended financial assistance from the Export Import bank, the Sri Lankan Treasury has reportedly received aid of $974 million for the Hambantota port project from China, which has already invested $146 million for port development work. In January, the Export-Import Bank of India (Exim Bank) approved $45.27 million in credit for the reconstruction of Sri Lanka’s Kankesanthurai Port, which was devastated by the December 2004 tsunami and Cyclone Nisha in 2008. Reports indicate that this brings India’s aid for various infrastructure projects in Sri Lanka to $1.4 billion. The Sri Lanka Ports Authority is to invest $100 million for the construction of the East Container Terminal, which is part of the master plan of the Colombo Port Expansion Project. Plans are also afoot for the conversion of Galle Harbour into a tourism port. Sri Lanka’s maritime sector master plan, developed by Maritime and Transport Business Solutions, a consultancy firm from the Netherlands, and funded by the Asian Development Bank, is said to be nearing completion. As the government looks to promote Sri Lanka’s cruise liner business, more infrastructure facilities are also to be added to the Colombo Port, to get more cruise liners to dock there.
Source: Business Line
NEW DELHI: India could consider offering a one-time settlement to clear legacy central excise duty and value added tax (VAT) issues to ensure they do not linger and act as a drag in the goods and services tax regime. The GST Council, the apex decision-making body for the tax, will take up the proposal at a meeting on August 4. The scheme, if approved, would allow officials to focus on GST compliance instead of dealing with legacy issues and could also generate instant one-time revenue for the government. “It would clean the slate,” said an official privy to the proposal. The scheme could cover assessments as well as arrears, according to the proposal that is part of the council’s agenda. GST was rolled out on July 1 last year, replacing a range of central and state taxes including central excise duty, countervailing duty, cesses, VAT , entry tax and purchase tax.
VAT PENDENCY
The VAT regime across the country was not uniform, with states having their own laws and procedures. This meant separate filings by businesses across states in line with each state’s VAT framework. There is a backlog of two or three VAT assessments for every dealer in each state, according to an industry experts. As a result, tax teams of companies are not only grappling with GST law and compliance requirements, but are also compiling documents, collecting pending statutory forms and preparing reconciliations to complete VAT assessments. Most tax manpower has shifted to GST and only a few are left to cater to the old tax regime, which is further fuelling pendency. “For companies with pan-India operations (e.g. in FMCG, consumer electronics), at least two-three assessments are pending in each state. Thus, assuming a company has operations in 20 states, the total number of pending VAT assessments for such company in all states could be in the range of 40 to 50,” said Harpreet Singh, partner, indirect tax, KPMG.
CENTRE KEEN TO CUT DISPUTES
The government is keen to cut down on unnecessary disputes and litigation. It recently raised the monetary thresholds for filing appeals by the Central Board of Indirect Taxes and Customs as well as the Central Board of Direct Taxes. CBIC will withdraw 18% of such cases from tribunals, 22% from high courts and 21% from the Supreme Court. The CBIC has asked its field formations to clear past cases expeditiously to focus on the GST regime, which is still settling down. “As newer litigations are coming up under GST, it’s important for the government to clean up the past as early as possible by coming with a onetime settlement for old litigation, wherein penalty and interest (at least partially) is waived,” said Pratik Jain, leader, indirect taxes, PwC. “However, the tax paid should be available as a credit under as well, which would have been creditable earlier.”
Source: The Economic Times
GST Implementation Committee chairman Sushil Modi on Thursday said there may be a ‘shortfall’ in revenue collections for the next three-four months with lowering of the indirect tax rates on more items. Modi, who is also the deputy chief minister of Bihar, said in the long-run revenue collections will increase due to improvement in tax compliance. Speaking at an event, organised by The Institute of Chartered Accountants of India, here he said, “When you reduce the tax rates, there may be shortfall in revenue for the next 3-4 months. And sales remain comparatively lower during the monsoon season.” In the most recent rate rationalisation, the GST Council on July 21 approved rate rationalisation for 88 items including white goods. Thanks to the recent reduction in the GST rate from 28% to 18%, washing machines, refrigerators and microwave ovens among a clutch of other goods have become cheaper by around 8%. “In the long run, the revenue will gain because lowering the rates will lead to more compliance and people have a tendency to pay taxes when it is low. There will be better revenues as tax rates for more than 450 items were brought down,” Modi said. According to the senior BJP leader, the new indirect tax structure, implemented from July 1, 2017, would be a “complete GST” only after petroleum products, stamp and electricity duty are included. GST Council could think of bringing the petroleum products under the new tax regime only after the monthly revenue target of Rs1 lakh crore was achieved, he said, adding, there was “no guarantee” that the prices of petroleum products would come down if these items were brought under the GST. “No states will like to reduce revenue as they are earning 40% of their revenue from petroleum products. Even if these products are brought under GST then states will also be allowed to levy taxes over and above the GST rates,” Modi said. “Let the revenue stabilise. When we will achieve the Rs 1 lakh crore (monthly) collection targets, then only the GST Council can think about bringing petroleum products under the new tax system. I don’t see inclusion of these products in the tax regime in near future and it will take a longer time. But ultimately, stamp duty, electricity duty and petroleum products have to come under GST,” Modi opined.
Source: Financial Express
NEW DELHI: In order to sustain and accelerate the adoption of energy efficient textile technologies in the power loom sector and cost savings due to use of such technology, Ministry of Textiles and Ministry of Power (GoI) have joined hands under the initiative SAATHI (Sustainable and Accelerated Adoption of efficient Textile technologies to Help Small Industries). Energy Efficiency Services Limited (EESL), a Public Sector entity under the administrative control of Ministry of Power, will replace old inefficient electric motors with energy efficient IE3 motors which will result in energy and cost saving up to 10-15% in the first phase. The use of these efficient equipments will result in energy savings and cost savings to the unit owners at no upfront cost. Power loom clusters at Ichalkaranji, Bhiwandi, Erode, Surat, Bhilwara and Panipat have been identified for pilot study. This information was given by the Minister of State of Textiles, Ajay Tamta, in a written reply in the Lok Sabha on Thursday.
Source: Kashmir Reader
The Karnataka cabinet today decided to constitute a cabinet sub-committee under the leadership of Chief Minister H D Kumaraswamy to decide on giving special package of incentives to industries. Speaking to reporters after a cabinet meeting, Law and Parliamentary Affairs Minister Krishna Byre Gowda said the cabinet sub-committee headed by the Chief Minister, based on criteria such as proposed investment, job creation and other factors, will decide on giving special package of incentives. "Industries department gives special package of incentives for mega projects, ultra projects and super projects, under industrial, textile and aerospace policies. For this we have set up a cabinet sub-committee," Gowda said. The sub-committee will also have Industries Minister,Small Scale Industries Minister and Revenue Minister as its members, he said. Gowda said the cabinet has also decided to give a grant of Rs 15 crore to National Centre for Biological Sciences (NCBS), located in Bengaluru, for setting up a Centre of Excellence in Agri Innovation, to support innovations and startups in the field of agriculture, horticulture and animal husbandry. The cabinet has approved Rs 114 crore for Koppal Government Medical College, Rs 112 crore for Gadag Government Medical College; Rs 113 crore for Chamarajanagar Government Medical College and Rs 134 crore for Mysuru Super Speciality Hospital, for upgradation purpose. The government has also decided to frame rules under the Hindu Religious Institutions and Charitable Endowments Act, for appointment of teachers to about 22 educational institutions that are run with the revenue of endowment department temples, as there was no transparency on appointments.
Source: Business Standard
The RBI’s Monetary Policy Committee has raised the repo rate by 25 basis points (bps) for the second time in a row with a 5:1 decision and positioned itself as an inflation warrior by sticking to the path of maintaining the 4 per cent inflation target. The RBI revised its 2H FY19 forecast upwards by 10 bps to 4.8 per cent. It had revised upwards its inflation projection for the second half of the current financial year in its June review as well. Clearly, it is watchful of inflationary pressures and cited risks such as firming household expectations, monsoon spread, impact of MSP (minimum support price) implementation and fiscal risks. The RBI was sanguine about the growth prospects, citing improved foreign direct investment, broad-based pick-up in services growth and robust capacity utilisation in manufacturing. Importantly, it pegged Q1 FY20 GDP estimate to firm up to 7.5 per cent. The RBI maintained its earlier estimate for GDP growth at 7.4 per cent in FY19 (up from 6.6 per cent in 2017-18), which it said was likely going to be driven by a revival of investment on the demand side and manufacturing on the supply side.
Capacity utilisation
The RBI’s business expectations index (BEI) for Q1:2018-19 remained optimistic notwithstanding some softening in production, order books and exports. The July manufacturing PMI too remained in expansion zone, although it eased from its level a month ago. Capacity utilisation levels have been moving up in sync with the growth numbers. The RBI’s latest OBICUS survey has pointed out that capacity utilisation stood at 74.1 per cent in Q3:2017 and the seasonally adjusted CU also increased for the first time in FY18 to reach 74.3 per cent in Q3. While this is the aggregate snapshot which comes at a lag, what is required is to look at the sectoral picture more carefully at this stage where capacity utilisation levels are much higher. In fact, the latest FICCI survey shows that capacity utilisation levels are in the 75-80 per cent range for sectors such as auto, chemicals, electronics, leather and footwear, machine tools, metals, paper products and textiles. This leads us to the other important factor which is that the type of fund requirements in this phase of growth is quite different. The requirements will veer away from working capital loans. Thus, while the headline debate in the near term will continue to focus on the “cost of funds” — that is, will the RBI raise by 25 or 50 bps, etc — the real issue will be to focus on “availability of funds” and ensuring it for the sectors that are beginning to feel the capacity pinch and may want to invest in enhancing capacities for the future.
Balance sheet shrinkage
More importantly, back home, there is something equally unprecedented taking place in the banking sector. Tectonic shifts are altering the pattern of credit intermediation. Just a few banks — a clutch of private banks along with a handful of public sector banks — are driving India’s broken credit cycle recovery. Public sector banks (PSBs) that comprise 70 per cent of the total banking system, hamstrung by poor balance-sheets, are yielding space to private players. Part of this is by design and partly accidental. Note, the government and the RBI have leaned heavily in favour of the bankruptcy code framework. Additionally, the RBI has put 11 PSBs in the prompt corrective action (PCA) framework list and reportedly six more are likely to be added to this list. However, the fact that private banks will have to do the heavy lifting in meeting the credit needs of an economy which is beginning to recover from a series of policy interventions hereon is quite unprecedented, especially with an under-developed bond market backdrop. The RBI has just sounded an even more sober assessment of PSBs. In its latest Financial Stability Report (FSR), the RBI estimates the gross non-performing assets (NPA) ratio — bad loans as a percentage of total loans — of the Indian banking system to reach 12.2 per cent by March 2019. This would be the highest since 2000.
RBI cautions
The FSR warned that if the macroeconomic conditions deteriorated, the gross NPA ratio could worsen to 13.3 per cent in March 2019. Among the bank groups, the gross NPA ratio for PSBs may increase from 15.6 per cent in March 2018 to 17.3 per cent by March 2019 in a scenario where the stress is severe. Thus, with India’s investment cycle poised for a cyclical upswing from FY19, after years of sub-par performance, it is important that efforts are geared towards incentivising and nurturing sectors in need of funds before the cost of funds begin to bite. This is important given the global headwinds. Global growth has become uneven and risks to the outlook have increased with rising trade tensions, currency war and contagion risks. Economic activity in major emerging market economies (EMEs) has slowed somewhat and global trade has lost some traction due to intensification of trade wars and uncertainty stemming from Brexit negotiations. The writer is Chief Economist, M&M. The views are personal.
Source: The Hindu Business Line
Tamilnadu state minister for handlooms and textile, O.S.Manian who was in Coimbatore to preside over a strategy meeting for the International Textile Exhibition to be held in Coimbatore coming February said that the handloom and textile industry was not affected by GST and that the 5% GST would soon be reduced. He further spoke about the exhibition and said that it would make the high quality of our textile world famous and also would help in the increase of its sales.
Source: Covai Post network
Mumbai: Mint Street’s decision on Wednesday to raise rates twice in as many months could burnish the allure of rupee-denominated investments. At first glance, the local unit seems to rank among the worst performers in Asia this year. But consider the rupee’s total returns, adjusted for interest rates, and the outcome changes. Then, the rupee ranks among top five performing currencies. Foreign portfolio investors normally look at total returns while investing in any geography. India’s benchmark bond now yields the most after Pakistan. The central bank has also kept its policy stance at ‘neutral’, triggering speculation that it may also cut rates after a prolonged pause, depending on market conditions. If that happens, existing higher yielding assets will yield more profits. Bond yields and prices move in opposite directions.Moreover, a stable currency attracts overseas investors, who need not seek cover against risks of exchange fluctuations.
Source: Economic Times
Annual expenditure on investment in logistics, including infrastructure, will touch $500 billion by 2025, according to Indian minister of commerce and industry Suresh Prabhu. The ministry is working on a national logistics policy and one on the development of multi-modal logistics parks to be announced soon, he said recently said in New Delhi. These initiatives will create millions of jobs and will do away with the hurdles in India’s internal and global trade, an official press release quoted the minister as saying. Recognizing that efficient and effective management of logistics will have a positive impact on overall trade in manufacturing and services. The Centre for Trade Facilitation and Logistics (CTFL) has been given a mandate by department of commerce to prepare a plan and act on several objectives, including human resource development and training government officials, he said. The ministry has agreed to provide a block one-time funding support of 80 lakhs towards initial infrastructure and a phase wise support of 339.90 lakhs for four years. This centre will attempt to document and monitor the trade and logistics activities and suggest suitable measures for its improvement. (DS)
Source:Fibre2Fashion
An international textile fair will be held here in February as was announced by Tamil Nadu Chief Minister K Palaniswami, State Handloom Minister O S Manian said today. An international textile fair will be held here in February as was announced by Tamil Nadu Chief Minister K Palaniswami, State Handloom Minister O S Manian said today. Speaking to reporters here, the Minister said the State government has allocated Rs 2 crore for the conduct of the fair which would showcase the capability of the State in the textile sector and in finding newer markets for the products. Besides, the fair would help bridge the gap between production and sales, he said. The Minister was here to discuss with the captains of the textile industry and experts on the successful conduct of the fair, since the government was hosting such a show for the first time. Asked about the impact of the five per cent good and service tax imposed on the textile sector, he expressed hope the Centre would soon bring it down. To a question on fixing of wages for the labourers in the industry, the Minister said the State government would soon fix the pay of handloom weavers coming under the cooperative sector, while the revised pay for workers in the poweroom sector would be decided upon through talks between the district Collectors and labour unions.
Source: The Financial Express
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1364.59 |
USD/Ton |
0.22% |
8/2/2018 |
|
VSF |
2054.22 |
USD/Ton |
0% |
8/2/2018 |
|
ASF |
3125.35 |
USD/Ton |
0% |
8/2/2018 |
|
Polyester POY |
1474.64 |
USD/Ton |
0% |
8/2/2018 |
|
Nylon FDY |
3418.81 |
USD/Ton |
0% |
8/2/2018 |
|
40D Spandex |
5135.55 |
USD/Ton |
0% |
8/2/2018 |
|
Nylon POY |
3096.00 |
USD/Ton |
0% |
8/2/2018 |
|
Acrylic Top 3D |
3228.06 |
USD/Ton |
0% |
8/2/2018 |
|
Polyester FDY |
1672.72 |
USD/Ton |
0% |
8/2/2018 |
|
Nylon DTY |
3521.52 |
USD/Ton |
0% |
8/2/2018 |
|
Viscose Long Filament |
5539.06 |
USD/Ton |
0% |
8/2/2018 |
|
Polyester DTY |
1694.73 |
USD/Ton |
0% |
8/2/2018 |
|
30S Spun Rayon Yarn |
2773.20 |
USD/Ton |
0% |
8/2/2018 |
|
32S Polyester Yarn |
2120.25 |
USD/Ton |
0% |
8/2/2018 |
|
45S T/C Yarn |
2875.91 |
USD/Ton |
0% |
8/2/2018 |
|
40S Rayon Yarn |
2934.60 |
USD/Ton |
0% |
8/2/2018 |
|
T/R Yarn 65/35 32S |
2509.08 |
USD/Ton |
0% |
8/2/2018 |
|
45S Polyester Yarn |
2274.32 |
USD/Ton |
0.65% |
8/2/2018 |
|
T/C Yarn 65/35 32S |
2450.39 |
USD/Ton |
0% |
8/2/2018 |
|
10S Denim Fabric |
1.37 |
USD/Meter |
0% |
8/2/2018 |
|
32S Twill Fabric |
0.84 |
USD/Meter |
0% |
8/2/2018 |
|
40S Combed Poplin |
1.18 |
USD/Meter |
0% |
8/2/2018 |
|
30S Rayon Fabric |
0.66 |
USD/Meter |
0% |
8/2/2018 |
|
45S T/C Fabric |
0.70 |
USD/Meter |
0% |
8/2/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14673 USD dtd. 2/8/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
FAISALABAD: Government in-waiting should start homework right now to announce special package based on already formulated PTI (Pakistan Tahreek-e-Insaf) Textile Policy so that it could be implemented immediately. Addressing a meeting of the textilers before his departure abroad, Mr. Shabbir Hussain Chawla President Faisalabad Chamber of Commerce & Industry (FCCI) said that textile was the main component of national economy. He lamented that due to the lukewarm attitude of previous governments, the textile exporters failed to maintain their presence in international markets and our export decreased gradually from 26 billion dollar to 18 billion dollar. He said that this decline plunged the national economy in deep crisis and despite of pressing demands of the textile sector, the declining trends continued to prevail as governments took only cosmetic steps to the satisfy the business community. He said that on the other hand our regional competitors including Bangladesh captured our markets and now its textile export have jump to 30 billion dollar while Pakistani exports are dwindling far behind. He further pointed out that import export gap had also further widened posing a serious threat to the economic viability of Pakistan. He appreciated the resolve of PTI to restore the textile sector on sound footings and said that renowned businessman Zafar Iqbal Sarwar had formulated the PTI textile policy which was dually presented and appreciated by its Chairman Imran Khan. He said that now as the PTI had made a clean sweep in general election and was ready to form the new government; it should divert its entire focus on the revival of textile sector which is the only available option to restore the national economy within shortest possible time. He said that in order to implement this policy PTI should nominate Zafar Iqbal Sarwar as ‘Textile Advisor’ so that he could ensure necessary measures to revive the textile sector which was passing through a protracted crisis. He also demanded that Pakistan government should have to provide the same incentive to our textile exporters as are being enjoyed by the exporters of other regional countries. He further said that nomination of Zafar Iqbal as advisor will not only pave way for the expeditious implementation of PTI textile policy but also give due representation to the textile sector of the Faisalabad in the federal cabinet.
Source: Business Recorder
For the second consecutive year a protectionist trade agenda in the US is the top concern for the American fashion industry, according to a survey of almost 30 leading brands. Chinese and US textile and apparel organisations have expressed concern about the escalating trade tensions and their opposition to protectionism during a major trade show in New York. Tariff increases are not just a tax on consumers but will also bring uncertainty to the stable global supply chain for top brands, Xu Yingxin, vice-president of the China National Textile and Apparel Council, said at the show’s opening ceremony on 23 July. “Neither US consumers, fashion brands nor Chinese textile and apparel manufacturers will benefit from the conflicts,” said Mr Xu, whose council organised the 2018 China Textile and Apparel Trade Show New York with Messe Frankfurt North America. Around 1,000 exhibitors from 17 countries attended the event, with more than 600 from China. Around 1,000 types of products listed in the textile and apparel category are part of the $200bn (£153bn) in Chinese imports potentially subject to 10 per cent tariffs imposed by the Office of the US Trade Representative. Hearings will be held on 20-23 August before a final decision is made at the end of the month. The products, mainly raw materials such as yarns and fabric, range from silk and cotton to lace and embroidery, and total around $4bn, according to Mr Xu. Julia Hughes, president of the Washington-based United States Fashion Industry Association, which represents brands and retailers, said the organisation is opposed to tariffs. The association’s annual survey showed that for the second consecutive year a protectionist trade agenda in the US is the top concern for the American fashion industry. The survey was conducted between April and May of executives from nearly 30 leading fashion brands, retailers, importers and wholesalers, including some of the largest brands and retailers in the country. Companies are very concerned about broader implications of protectionism for the US economy, consumers and the global economy, Ms Hughes said in an interview at the trade show. She said that one strategy for US companies is to find other sourcing opportunities, but most sourcing executives say there are not enough viable options to replace China. Companies are sourcing from many other countries, including Vietnam, Bangladesh, India and Indonesia, as well as countries in the western hemisphere. “There isn’t enough sourcing in the world to replace China – and especially not the quality sourcing that American brands and retailers want,” she said. “I don’t think the solution is [that] we just find an alternative to China. We are doing some analysis on what some other options might be. I have to say we hope it never comes to that.” Ms Hughes said she believes that the Trump administration has heard her association’s message, so in order to not hurt consumers the tariffs have been focused on manufacturing inputs rather than clothing, footwear and home textiles
Source: The Telegraph
Free trade agreements, particularly the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA), are the driving force to attract big investments in Vietnam’s garment-textile industry. The statement was made by Chairman of the Vietnam Textile and Apparel Association Vu Duc Gaing at a conference held in Ho Chi Minh City on August 2 highlighting the impacts of the CPTPP and EVFTA on the garment-textile sector. According to Giang, although the two agreements have yet come into force, they have created great attraction to foreign investors. In the first six months of 2018, Vietnam lured 2.8 billion USD in foreign direct investment (FDI) in garment-textile, bringing the total FDI in the sector to nearly 17.5 billion USD. A considerable number of large-scale projects were carried out in the first half of the year including a German-invested sheep wool yarn spinning plant in the Central Highlands city of Da Lat and an US-invested yarn production plant in the southern province of Dong Nai. Many Vietnamese firms have invested in material production projects, which are the key to solving the country’s dependence on importing garment-textile materials in the coming years as well as helping Vietnam reduce production cost and increase competitiveness, Giang said. Apart from drawing investment, CPTPP and EVFTA have helped change the structure of export markets of Vietnamese garment-textile products in recent years, he added. Previously, many businesses from Canada, Australia and New Zealand just focused on the Chinese market, but now they have studied Vietnamese garment-textile products with the signing of specific orders, he noted. Vuong Duc Anh from the Ministry of Industry and Trade’s Import-Export Department, said there are huge opportunities for the garment-textile sector once the CPTPP and EVFTA take into effect. However, to optimise benefits from the agreements, Vietnamese firms have to overcome some challenges such as the competitive pressure from FDI companies and the strict rules of origin, he said. Besides proactively approaching to new markets, local businesses should pay more attention to the origin of products and improving quality to secure orders and maintain long-term partnership with foreign enterprises, he suggested
Source: Vietnam News Plus
NAYPYITAW (Reuters) - Myanmar has scaled back plans for a Chinese-backed port on its western coast, sharply reducing the cost of the project after concerns it could leave the Southeast Asian nation heavily indebted, a top government official and an advisor told Reuters. The initial $7.3 billion price tag on the Kyauk Pyu deepwater port, on the western tip of Myanmar's conflict-torn Rakhine state, set off alarm bells due to reports of troubled Chinese-backed projects in Sri Lanka and Pakistan, the official and the advisor said. Deputy Finance Minister Set Aung, who was appointed to lead project negotiations in May, told Reuters the "project size has been tremendously scaled down".The revised cost would be "around $1.3 billion, something that's much more plausible for Myanmar's use", said Sean Turnell, economic advisor to Myanmar's civilian leader, Aung San Suu Kyi. China's state-run CITIC Group, the main developer of the project, said negotiations were ongoing and that the $1.3 billion was to be spent on the "initial phase" of the port, adding the project was divided into four phases. It did not elaborate on plans for subsequent stages. A Chinese foreign ministry spokesman, Geng Shuang, said Monday that "according to what I understand, at present both sides are having commercial negotiations" on the Kyauk Pyu project. "The talks are progressing," Geng said at a foreign ministry briefing in Beijing. He referred further questions to the companies involved. The original plan was to develop around 10 berths at the 25-metre deep sea port to accommodate bigger oil tankers, but the size will now be revised to only two berths, Set Aung said in an interview. He declined to elaborate on other specifications, citing ongoing technical discussions. The Kyauk Pyu port is a key part of China's ambitious Belt and Road initiative, aimed at expanding trade links across the world. While Beijing says Belt and Road is mutually beneficial for it and its partners, questions have been raised about countries taking on excessive debt to build projects. In Myanmar, the government faces a delicate balancing act in renegotiating the project with China, analysts say. The country is increasingly reliant on diplomatic support from Beijing as it faces Western criticism over its treatment of the Rohingya Muslim minority in Rakhine state, and needs Beijing's help to end ethnic conflicts on its borders. But many in Myanmar are also wary of becoming too dependent on China. "There is a strong current of opinion that is nervous about becoming overreliant on China," said Richard Horsey, a former U.N. diplomat and a Yangon-based political analyst. "That debate is playing out within the government."
DEBT FEARS
Beijing has pushed for strategic opportunities in Myanmar, including preferential access to the Kyauk Pyu port, after being driven to all but abandon a hydroelectric project in the country amid widespread local opposition last year. Kyauk Pyu is an entry point for a 770-kilometre (480-mile) pipeline delivering oil and natural gas to China's Yunnan province. That gives China an alternative route for energy imports from the Middle East that avoids the strategic chokepoint of the Malacca Strait. Under the original plan, Kyauk Pyu would have had a container capacity to rival that of ports such as Manila or Valencia in Spain. Construction on the port, and an accompanying special economic zone, which together were supposed to cost up to $10 billion, was expected to start in 2018. A 4,200-acre industrial park worth $2.3 billion was planned to attract textile and oil refining industries. But Myanmar officials said the experience of Sri Lanka, where this year the government signed over to China the lease on a strategic port to pay off Chinese-backed loans used to finance it, had raised concerns the country could be walking into a debt trap. The new deal "reduces the financial risk dramatically" and shows that "concerns about indebtedness and sovereignty have been and can be addressed", said Turnell, an Australian economist. "This really could become a constructive model for countries that don't have much leverage over a giant like China." Set Aung, the deputy finance minister, said Myanmar would give no sovereign guarantees for any loans financing the project. He added that the project's timeline was likely to be delayed several months as Myanmar was looking to hire an international consulting firm to review costs. "The new deal ensures that any loans financing this project will not lead back to the Myanmar government but rather they will all be private," he said. "At the moment, my priority is to ensure there is no debt burden for the Myanmar government and these concerns are now quite limited." CITIC said the two sides had not discussed hiring a third party company to audit the project.
"START SMALL"
Myanmar government officials said their Chinese counterparts had been "amenable" to renegotiating and had agreed in principle to the new deal, but had yet to sign off.CITIC won a tender in 2015 to develop the project from the previous military-backed government. Set Aung, the deputy finance minister, said disagreements emerged over terms and conditions after the initial tender had been awarded. "The previous government wanted to go big, whereas we want to start small and expand only if there is demand for it," he said. When asked about the accompanying special economic zone, both Turnell and Set Aung said any expansion plans would depend on the port's viability. "Each stage has to demonstrate feasibility before the next phase can be rolled out," Turnell said.
Source: Business Standard
Chinese and US textile and apparel groups expressed concern over the escalating trade conflict and their opposition to protectionism during a trade show in New York recently. The conflict is not going to benefit US consumers and fashion brands or Chinese manufacturers, according to Xu Yingxin, vice-president of the China National Textile and Apparel Council. Tariff increases will bring uncertainty to the stable global supply chain for top brands, an official Chinese newspaper reported quoting Xu’s remarks at the show's opening ceremony. The council organized the 2018 China Textile and Apparel Trade Show New York with Messe Frankfurt North America. About 1,000 exhibitors from 17 countries attended the event, with more than 600 from China. About 1,000 types of products listed in the textile and apparel category are part of the $200 billion in Chinese imports potentially subject to 10 per cent tariffs imposed by the Office of the US Trade Representative (USTR). Hearings will be held August 20-23 before a final decision will be arrived at in August end. The products in the textile and apparel category in the US tariff list are raw materials like yarns, fabric, silk, cotton, lace, embroidery, and total about $4 billion, Xu said. According to the annual survey of Washington-based United States Fashion Industry Association (USFIA), which represents brands and retailers, a protectionist US trade agenda is the top concern for the US fashion industry for the second year in a row. Companies are very concerned about broader implications of protectionism for the US economy, consumers and the global economy, USFIA president Julia Hughes said. She said most sourcing executives feel there aren't enough viable options to replace China, according to the Chinese newspaper report. China and US textile and apparel trade hit more than $44 billion in 2017 compared with $4.9 billion in 2001. China remains the biggest textile exporter to the US, while the US is the No. 1 export market for China's textile industry, accounting for 17 percent of China's exports in the industry. (DS)
Source:Fibre2Fashion
LONDON - The euro fell almost half a percent and the Chinese yuan dropped to a 14-month low on Thursday after a flare-up in the trade tensions between the United States and China sent investors scrambling to buy the U.S. currency. U.S. administration officials said on Wednesday that President Donald Trump was proposing a 25 percent tariff on $200 billion worth of Chinese imports, rattling global financial markets and sending equity markets tumbling China urged the United States to return to reason euro fell 0.4 percent to a two-week low of $1.1608 EUR= . China's offshore yuan, which has been under pressure on worries the months-long trade dispute will hurt its economy, slid another half percent to as low as 6.868 yuan CNH= , its weakest since May 2017. "Ultimately, where do you go? You go to the currency that is the most stable and actually has a yield," said Michael Hewson, chief analyst at CMC Markets, explaining why investors had rushed to buy dollars. The dollar index .DXY , which measures it against a basket of six currencies, rose 0.3 percent to 94.944, off last week's 3 1/2-week low of 94.084. The Australian dollar AUD= , seen as a proxy for Chinese growth because of Australia's export-reliant economy, also sold off, slipping 0.6 percent to $0.7363. The safe-haven Swiss franc hit a one-month high against the euro EURCHF= but was weaker against the dollar CHF= .
FED BOOST
The safety bid for the U.S. currency was further bolstered by higher U.S. Treasury yields and an upbeat assessment from the Federal Reserve. After ending its two-day policy meeting, the Fed left interest rates unchanged, as expected, and said U.S. economic growth has been rising and the job market had continued to strengthen said the meeting was mostly uneventful although the central bank was more positive on the economy. "Indeed, the only change even worth highlighting from the statement was a slightly more upbeat view of growth in economic activity, which the Fed now regards as "strong" as opposed to "solid" previously," Deutsche Bank (DE:DBKGn) analysts said. The yen bucked the trend of weakness, rising 0.2 percent against the yen to 111.48 JPY= as benchmark Japanese government bond yields touched a 1 1/2-year high yen's gains were limited after it dropped on Tuesday, following the Bank of Japan's pledge to keep rates low for an extended period. The British pound fell 0.4 percent to $1.3078 GBP= before the Bank of England's policy meeting later on Thursday. Markets widely expect it to raise rates for the second time since the global financial crisis Mexican peso MXN= initially found support from growing optimism about the renegotiation of the North American Free Trade Agreement, but later fell 0.7 percent to 18.716 as the dollar gained across the board by Larry King)
Source: Financial Express
