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MARKET WATCH 07 AUGUST, 2018

NATIONAL

INTERNATIONAL

FinMin to notify import duty hike on textile products tomorrow

The government is likely to hike import duty on about 300 textile products tomorrow with a view to boost domestic manufacturing. The duties could be enhanced to 20 per cent on products like certain fabrics, garments and man-made fibres. Currently, the duty ranges between 5-10 per cent. A notification to this effect is likely to be tabled in Parliament tomorrow, sources said. Increase in duties would give an edge to domestic manufacturers as the imported products are relatively cheaper. Increase in manufacturing activity will help create jobs in the sector, which employs about 10.5 crore people. Last month, the government doubled import duty on over 50 textile products -- including jackets, suits and carpets -- to 20 per cent, a move that is aimed at promoting domestic manufacturing. Through a notification, the Central Board of Indirect Taxes and Custom (CBIC) had hiked import duties as well as raised the ad-valorem rate of duty for certain items. The imported products which have become expensive include woven fabrics, dresses, trousers, suits and baby garments. According to trade experts, India would not be able to give any direct exports incentive to the textile sector, so there is a need to support the segment to encourage domestic manufacturing. Imports of textile yarn, fabric, made-up articles grew by 8.58 per cent to USD 168.64 million in June. However, exports of cotton yarn/fabrics/made-ups, handloom products grew by 24 per cent to USD 986.2 million. Man-made yarn/fabrics/made-ups exports grew 8.45 pc to USD 403.4 million. Exports of all textile ready made garments dipped by 12.3 per cent to USD 13.5 billion

Source: Economic Times

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Centre sets up GoM headed by Suresh Prabhu to decide on RCEP talks

New Delhi: The government has set up a four-member group of ministers (GoM) headed by trade minister Suresh Prabhu to advise prime minister Narendra Modi on whether to continue with or withdraw from the 16-member Regional Comprehensive Economic Partnership (RCEP) negotiations. “The GoM will find a way forward from the current deadlock. The industry, as well as most departments, are not willing to yield anything more to RCEP countries. It is a political call now,” said a trade ministry official, requesting anonymity. Pressure on India has been rising to concede more market access to member countries, including China, and conclude the negotiations by end-December. “The GoM will also look at the broader picture. The RCEP summit is in November, by which time we have to tell other countries whether we want to be in or out,” the official added. The GoM also includes finance and power minister Piyush Goyal, defence minister Nirmala Sitharaman and housing and urban affairs minister Hardeep Puri. The first meeting on coming Friday will be attended by the cabinet secretary, besides secretaries of all other concerned departments. In the run to the meeting, commerce secretary Anup Wadhawan is separately meeting all the secretaries to brief them on India’s position on the various issues in the RCEP. The GoM will also help India fine tune its strategy for the upcoming RCEP ministerial meet on 30 and 31 August in Singapore. On 14 March, Mint had reported that Nripendra Mishra, the principal secretary to the prime minister, had met 15 secretary-level officials on 6 March to chalk out India’s strategy in the ongoing negotiations with RCEP. A majority of them, including the secretaries for defence, economic affairs, agriculture, textiles and steel, had opposed the proposed deal, saying that the presence of China in the grouping may hurt India’s interests in their respective fields. Several countries in the grouping wanted India to open up its market for 92% of traded goods, while they remained reluctant to allow Indian skilled professionals greater access to their markets. India is ready to offer access for up to 85% of items, with deviations for countries such as China, Australia and New Zealand, with whom it does not have a free-trade agreements. In recent times, there has been a growing clamour from the industry, as well as from within the government, to exit the RCEP. V.K. Saraswat, member of the government’s think tank NITI Aayog, in a note published in April had argued that India needs to rethink joining the RCEP as it will be “disastrous” to provide more market access to China, which is a key player in the grouping. In an interview with Mint in February, chief economic adviser in the finance ministry, Arvind Subramanian, too, had said that India needs to be extra cautious and take into account geostrategic issues while moving ahead with the RCEP deal, as it would mean opening up the market to its adversary China. Former foreign secretary S. Jaishankar, at a presentation before the parliamentary standing committee on commerce, had called for “observance of due restraint” and warned against concluding trade arrangements that are not in India’s medium-term interest.

Source: The Live Mint

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No GST refunds for foreigners as of now: Finance Ministry

Foreigners coming to India may not get GST refunds on goods purchased and carried back by them as the government has not invoked relevant provisions of the Integrated Goods and Services Tax Act yet, the Finance Ministry has said in reply to an RTI query. It was asked to provide details on procedures for foreigners to get GST refunds on goods purchased by them in India. Some western nations provide refunds of certain taxes on goods purchased by foreigners there. “Please note that Section 15 of the IGST (Integrated Goods and Services Tax) has not yet been enforced. Therefore the reply of this office is nil information currently,” the Central Board of Indirect Taxes and Customs (CBIC) said in reply to the Right to Information (RTI) application filed by this PTI correspondent. According to the section, integrated tax paid by a tourist leaving India on any supply of goods taken out of India by him shall be “refunded in such manner and subject to such conditions and safeguards as may be prescribed”. For the purposes of this section, the term ‘tourist’ means a person not normally resident in India, who enters India for a stay of not more than six months for legitimate non-immigrant purposes, the Act says. The IGST makes provisions for the levy and collection of taxes on inter-state supply of goods or services or both by the Central government. According to senior GST professional Sandeep Chilana, the government should come out with terms, conditions and safeguards for refunds of GST paid by international tourists in India. “GST is a consumption-based tax. To the extent consumption is happening in India the taxes should stay in India. In case the goods are purchased in India and taken by the tourist outside India, it should be seen as export and necessary refund should be available,” he said. In order to ensure there is no misuse, the mechanism for such a refund process would need to be robust, said Chilana, a partner of the law firm Shardul Amarchand Mangaldas. While selling these goods to international tourists, shopkeepers will have to charge IGST only and not local taxes. The government may also require shopkeepers to issue some form/certificate verifying the details of the purchases along with passport number and other relevant details, he said. Like other developed countries, it is likely that the foreign tourist would need to show the form/certificate along with invoices etc at refund counters that need to be set up at exiting points like international airports, so that tourists can get refunds of the GST paid on the goods brought by them, the tax expert said. He added that foreign countries, mainly in Europe, have established a provision that a foreigner needs to show a form or receipt that he has got on purchase of particular goods to get refund. I feel having a provision for refund of taxes to foreign tourists will definitely act as a motivation for international travellers. It will encourage them to spend more money in India. It will promote tourism in the country and help in generating foreign exchange from the tourists. It will give huge impetus to demand for various industries including handicraft, textiles etc., Chilana said. The Goods and Services Tax came into force on July 1, 2017. But Section 15 of the IGST has not been brought into force yet. It is more than a year since we implemented the GST and the IT system has also stabilised to a great extent. It is high time we bring into effect this provision of refund of GST taxes to foreigners, he said.

Source: The Hindu Business Line

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Centre urged to amend MSME Act

A joint representation of Micro, Small and Medium Enterprises (MSME) on Monday have urged District Collector to recommend to the Union Minister for MSME to impart suitable corrections in certain clauses of the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2018. The petition submitted by the Coimbatore Compressor Industries Association, Coimbatore Sidco Industrial Estate Manufacturers’ Welfare Association, Coimbatore Wet Grinder Manufacturers’ Association and Laghu Udyog Bharati, Coimbatore, said that they are apprehensive that even big traders engaged in selling imported products can get them registered as a micro or small enterprise in the GST-era. While the MSME Act is to facilitate the promotion of indigenous micro and small units engaged in manufacturing, there is no differentiation on manufacturer or trader in the GST-era. Hence, the petitioners wanted inclusion of a clear-cut clause in the Bill to bar traders to get registered as micro or small units. According to them, the amendment empowers the Government to raise turnover limit to define a MSME up to ₹ 225 crore. They wanted the Central Government to remove the clause regarding turnover limit increase from the Bill. They said that the amendment Bill has no mention whether the enterprises have to approach the District Industries Centre every year to get classified or re-classified as their turnover are subjected to increase or decrease. Such situation will not facilitate ease of doing business. According to the petitioners, concessions for micro and small units are being withdrawn one after another and duty/tax exemptions have already been abolished. They said that sector is losing its competitiveness after GST implementation while large scale enterprises, corporates and multi-national companies are benefited. They added that Bill is also to benefit the large scale traders and companies.

Demand from all party representatives

An all-party representatives from Karumathampatti town panchayat submitted a petition to District Collector on Monday seeking various amenities and developments in their locality. Their demands included street lights on Powerhouse corner Somanur – K. Rayarpalayam road, bypass from Somanur parallel to Noyyal river, renovation of Somanur bus stand, desilting of all tanks in Karumathampatti and repair of check dam across Noyyal near Somanur among others. The petitioners also sought Tasmac outlets to prevent sale of illicit liquor which is rampant at Somanur.

Alternative road sought

Residents from Saramedu on Monday submitted a petition against the service road for Ukkadam-Athupalam bypass planned through their residential area. The petition submitted to District Collector said that more than 100 families are residing in the area will have to be relocated for laying service road. They sought authorities to plan for an alternative road skipping the residential area.

Source: The Hindu

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‘Domestic units hit by Chinese dumping’

Lok Sabha Deputy Speaker M. Thambi Durai on Monday expressed concern over the continuing closures of textile and mosquito net manufacturing units — belonging to the category of small and medium enterprises — in his Parliamentary constituency of Karur, due to what he called the dumping of low-cost products from China and Bangladesh. Raising a supplementary question during the Question Hour, Mr. Thambi Durai complained that no action seemed to have been taken against the dumping of goods. He also said though the quality of products made in the country was low, the price remained uncompetitive in the international market.

Training suggested

He suggested that a training programme be implemented for the rural youth, using facilities available at the engineering colleges and polytechnics which were otherwise facing the prospects of closure. The Deputy Speaker wanted to know whether the government had formulated a policy on imparting skills to the youth. In his reply, Suresh Prabhu, Union Minister for Commerce and Industry, said the Centre would soon come out with an industrial policy to address the issues of productivity, scalability and global competitiveness. Apart from having an anti-dumping agency in place, the government had brought together various agencies under one umbrella so that aggrieved domestic producers could approach it instead of going from one organisation to another, the Union Minister added.

Source: The Hindu

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India's Andhra Pradesh approves textile policy 2018-23

India’s Andhra Pradesh state recently held a cabinet meeting to approve several policies and took decisions on projects on employment generation and agrarian crisis. The State Mega Seed Park Policy 2018, the Textile, Apparel and Garments Policy 2018-23 and formation of a special account for management of agricultural products collection were approved. A market stabilization fund was approved and it was decided to replace Visakhapatnam Urban Development Authority (VUDA) with Visakhapatnam Metropolitan Region Development Authority (VMRDA). The new park policy aims to make the state a seed capital by setting up of seed industries. The seed park will be set up at Tangadencha village in Kurnool district, according to a news agency report. The government expects to attract ₹3,000 crore in investments and create 40,000 jobs by 2023 through this park. The textile policy aims to attract ₹15,000 crore investments and generate employment for 2.5 lakh. It was also decided to set up nine private polytechnic colleges affiliated to Sri Venkateswara Veterinary University, Tirupati, and 11 private polytechnic colleges in the fisheries sector.

Source: Fibre2Fashion

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Utilise textile mills land for small biz, Gujarat Chamber of Commerce and Industry tells AMC

Making suggestions on upgrading various infrastructure in the city, the Gujarat Chamber of Commerce and Industry (GCCI) said land lying unused in old textile mills should be turned to mini industrial estates for small businesses. A team of experts has spoken to city Mayor Bijal Patel during his visit to GCCI. "Of about 76 mills that used to operate in the city, 70 are closed and their land is lying unutilised. The Ahmedabad Municipal Corporation (AMC) should revive these spaces into vibrant industrial zones by converting them into mini industrial estates," GCCI president Jaimin Vasa told DNA. Vasa these spaces should have multistorey industrial estates in order to reduce the capital cost of investors so that even small-scale entrepreneurs can afford them, or else the cost of land would exceed other costs, making the project unviable. GCCI also asked the AMC to improve the road, water supply, and sewage infrastructure in industrial estates of Naroda, Vatva, Odhav, Narol, and Kathwada. "In some areas, even the town planning (TP) roads are not developed. We, therefore, suggest that the Municipal Corporation should not approve/permit the maps of the TP schemes if basic infrastructure is not available," read a letter submitted by GCCI to the AMCThe apex body for trade and industry also suggested that proper planning is undertaken for parking of vehicles while allowing construction of commercial and residential buildings in the city. The Gujarat Chamber of Commerce and Industry complained that illegal parking fee is being charged increasingly at many places in the city. "Parking impact fees are irrational in some areas and need to be regularised," said GCCI. In a suggestion that could ease commuting of industry workers, the GCCI said that the AMC should increase the frequency of buses where the workers are in significant numbers.

Source: Daily News & Analysis

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Government extends e-visa facility for citizens of 165 countries

Seeking to promote tourism, the government has extended e-visa facility for citizens of 165 countries at 25 airports and five seaports, the Lok Sabha was informed today. Tourism Minister K J Alphons also said the government has launched the 'Incredible India 2.0' campaign, marking a shift from generic promotions to market-specific promotional plans. A 24X7 toll free multi-lingual tourist helpline has also been put in place as part of the efforts. To promote tourism in India, events such as 'paryatan parv' (tourism festival), International Buddhist Conclave and International Tourism Mart too have been organised. He said while development and promotion of tourism is primarily the responsibility of state government, the Union Tourism Ministry provides central financial assistance to states and UTs to organise fairs, festivals and tourism- related events for the promotion of tourism.

Source: The Economic Times

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Indian products can be more competitive in the shadow of the US-China trade war

  • The Competition Commission of India (CCI) ran an analysis which revealed which industries India should focus on for export.

 

  • The CCI also recommended that India focus on its competitive advantages in tradewhen dictating its strategic dialogue with the US.

 

  • On the other hand, foreign direct investments will improve only once the government can instil confidence in American investors about India’s business climate. India’s fair play watch-dog, the Competition Commission of India (CCI) thinks there’s an opportunity for India to capitalise in the midst of the US-China trade war. Indian exports can leverage the additional 25% import duty on commodities from China imposed by the American administration to their advantage. This essentially makes China’s products more expensive in the US, where the competitive price of India’s products can bring them in as substitutes. India’s leading exports to the US include pumps, passenger vehicles of 1500-3000 cc, parts of taps, parts of military aircrafts, valve bodies and parts of electrodiagnostic apparatus. Cumulatively, they accounted for $50 million of export trade in 2017.

The industry chamber conducted an analysis which concluded that if India focuses on machinery, electrical equipments, vehicles and transport parts - exports can be increased with concerted efforts. Other Asian countries like Vietnam, Indonesia, Thailand and Malaysia have already increased their exports to the US in recent years. Other recommendations The CCI also proposed that India should keep its competitive advantage in the sectors of textiles, footwear, mobile phones, toys and games in mind when dictating the strategic dialogue with the US. The chamber justified that such an endeavour would encourage the concerned growing industries in India. Even foreign direct investments have the potential to increase, but only if the government can instil confidence into foreign investments. It was only recently that India’s draft on the new e-commerce policy rolled out and ruffled a few feathers. Amazon Inc and Walmart have even roped in the Trump administration to address their concerns to the government of India. And, it’s not only about the US. The CCI also recommended that India can expand its exports into China as well to capitalise on the hike in duties by both countries on imports exchanged between the two.

Source: Business Insider

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Centre upgrading p’loom sector thru Power Tex India: Tamta  

NEW DELHI - The Government is implementing Power Tex India  a  comprehensive scheme for power loom sector development.Under  the scheme  existing plain powerlooms are upgraded to semiautomatic  and shuttleless looms to improve quality and productivity  by providing financial assistance to powerloomunits. So far  more  than 2.16 lakh looms have been upgraded in the country under the  in-situ upgradation component  of the scheme.  The above information was  given by the Minister of State of  Textiles  Ajay Tamta  in a written  reply in the Rajya Sabha.  He informed that  for implementing Amended  Technology Upgradation Funds  Scheme (ATUFS)  a  comprehensivei-TUFS software  has been developed. Through the  iTUFS software  the beneficiary units can directly upload their  applications. The beneficiary units can also track their application  at each stage of the process. India is the second largest  exporter of textiles in the world.  During 2017-18  India exported  cotton textiles volume at USD  1854 million to Bangladesh and  USD 1020 million to  China.During 2013-17  manmade  fibre (MMF) exports of  China have grown at a CAGR of  2%  while India’s MMF exports  have grown by3% during the  same period  he informed.

Source: Tecoya Trend

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Weavers cry foul over skill funds

Chirala: The officials in the handloom and textiles department in the state made a feast out of the funds meant for uplift of weavers’ community. The weavers allege the officials successfully swindled about Rs 5 crore out of Rs 7 crore released for honing their skills using latest technology and tools. The weavers are getting readied to visit the Chief Minister and demand him to recover all the money from corrupt officials and see the new looms and tools reach them immediately. In 2016-17, under the National Handloom Development Programme, the Centre wanted to set up 200 handloom clusters and weavers service centres in the country. In Prakasam district, the government decided to establish 16 clusters in which 13 of them in Chirala Assembly constituency while one at Valaparla, one at Eethamukkala and the remaining one at Bestavaripet. For these 16 clusters, the government allocated Rs 22 crore and sanctioned Rs 7 crore for the survey, selection, training, stipends and procuring the tools and machinery. The government wanted to train 750 families under each cluster in weaving for 45 days, designing for 15 days and dying for 15 days and announced to pay Rs 210 as stipend for each member per day. The government wanted the new generation weavers will have advanced skills in weaving, designing and dying so that they could compete with power loom industries and make their share of market. The officials claimed that they conducted door-to-door survey, listed out interested candidates and families to hone their skills, procured advanced handlooms and trained them. They submitted bills that they have conducted training sessions and claimed that they have paid stipend for 210 families in Chirala. Bandaru Jwala Narasimham of Chenetha Joint Action Committee alleged the officials resorted to corruption in all possible ways. He alleged the officials are resorted to Rs 5 crore corruption in the Rs 7 crore released under the programme in the first phase. As the stipend should be transferred to beneficiaries online, they didn’t touch it but shown their mark of corruption in all the remaining. He alleged that they show in accounts that they bought handlooms for each new batch, whereas the regular looms could last for decades. He also said the officials claimed the looms were made of teak and quoted high prices, but they purchased cheap looms made of Marujaati wood. He alleged that some batches were trained on old looms and some batches without looms and no yarn or dyes and chemicals. He said the officials collected Rs 900 from each of trained weaver in the name of charges for Jacquard looms, designing and other charges, but not fulfilled their promise. He said they promised to transfer Rs 6,200 as financial help to upgrade the looms, but not done so far. Another weaver Damarla Narayana Swamy said that in the 13 clusters of Chirala, officials not only tried to float the prices of looms, but also tried to create forged documents. He said the officials should call for tenders to provide the looms and other material, but they awarded the contract to a letterhead company of their men even without TIN number. He alleged that they floated the prices and supplied cheap products and now even after paying lakhs of rupees, there is not a single loom available in the training centres. Narayana Swamy, Narasimham and others under the Weavers Joint Action Committee complained to the Central government on the irregularities and corruption of officials. They said that Vishesh Nautiyal, Development Commissioner of Handlooms and Director of Weavers Service Centre, New Delhi, conducted an inquiry and submitted a report to the government that Rs 5 crore corruption is true, based on which the state government has suspended the then assistant director of handlooms and textiles in Prakasam district. J Sivanarayana, the present assistant director of handlooms and textiles, said the officials transferred almost Rs 2.5 crore as stipend to trainees. As there is no time, he said, the contract was given to an agency without calling for tenders and they have all bills for them. To provide advance tools and looms to already trained weavers, they are waiting for finalisation of tenders now, he said. The weavers demanded that the government recover each rupee from the corrupt officials and public representatives who were involved in the scam and see genuine training and tools are given to them. They are seeking an appointment with the Chief Minister on August 7 in his tour to Chirala to participate in the state-level programme of National Handloom Day and explain him about their problems.

Source: The Hans India

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Keep pace with market and trend developments at Intertextile Shanghai Home Textiles  

MUMBAI —  Intertextile Shanghai Home Textiles has always been at the  forefront of the China and Asia markets for participants to find the  latest products from around the world and learn about the current  market trends. This year a series of fringe programme events together with some new show features will inspire fairgoers throughout the four-day fair.  New features for contract business Given the growing demand for textile solutions for architecture interior design and the hotel industry the coming  August fair will highlight leading contract upholstery suppliers  with distinctive labels. In addition the show will feature a showcase area at hall 5.1 which displays quality contract upholstery from exhibitors. The area will be decorated by interior designers demonstrating the functionalities of different contract textile products.  To introduce the opportunities that the textile industry can  capture from contract business  both domestic and international  architects  hoteliers  interior designers and industry experts have  been invited to share their insights about design  market  materials  and project management on the Contract Business Days  on 28 &  29 August.  Naima A Khan  founder and interior designer from The Green  Design in UAE  for instance  will be speaking on The Art of  Sustainable Interior Design. She has worked with many  international home fashion retail store developers  as well as textile  and interior companies  and is experienced in using therapeutic  colour schemes  sustainable materials and sunlight in different  design projects. Another guest  Esra Lemmens  who is also a  designer and active speaker at design events  will talk about the  expanding importance of design throughout Dubai as well as her  suggestions for doing business in Dubai.  Other speakers also include Martin Oliu from the international design company  Harmony World Consultant and  Design (HWCD). He has participated in a broad area of design  such as architectural construction & interior design and is  responsible for various luxury residential and hotel design projects.  Professor Thomas Charles  who has been working on industrial  product design and research for user experience & consumer  behaviour study  business strategy and branding designs will give  a talk on ‘The Power of Innovative Design’. Trevira CS will also participate in the Contract Business Day through their Chinese representative Jenny Zhang  who will share how the permanently  flame retardant Trevira CS textiles can fit into contract business.  Digital printing and technics remain a focal point  The Digital Printing Micro Factory concept was first  introduced in the 2017 edition of Intertextile Shanghai Home  Textiles  and received much attention and positive feedback. To  cater to the growing demand for efficient  one-step textile solutions  Global Fortune Limited from Hong Kong will work jointly with  Kornit Digital and Bullmer to set up a Micro Factory at this August’s  fair. An advanced digital printing system – Allegro & Cut by Kornit  Allegro – will be introduced. The system streamlines the entire  production process by combining printing and drying together so  multiple machinery is not needed. It is also eco-friendly as one  single ink set suits various fabric types  and designs will be printed  in shapes and sizes that are ready for cutting. Visitors can learn  more about the complete production process from printing and  cutting to sewing via the onsite demonstration.  In addition to forums discussing how digital printing helps flexible production  there will also be an array of forums where  some top domestic industry players will share their experience in  resolving technical problems in productions and satisfying  requirements in different product tests.  Forward-looking events to ignite inspiration  The trend committee formed by international trendsetter the  NellyRodi Agency has developed three themes  namely Caring  Future  Crazy Future and Emo Future for the 2019 International  Lifestyle Trends. Apart from the trend area where product displays are located  visitors can get a better understanding about the future  living styles from the panel discussion and trend area tour. The agency’s creative director Vincent Grégoire  will guide tours to  explain the trend concept. He will also join other industry experts in the panel discussion on consumer lifestyle trends.  Another inspiring event during the show is the Future Talk  in which representatives from different industries including fashion  brand Shiatzy Chen  home appliance giant Haier  gourmets  and lifestyle experts will share their perspectives on the future  trends.The show will be held from 27 – 30 August in the National  Exhibition and Convention Center in Shanghai. Intertextile  Shanghai Home Textiles – Autumn Edition is organised by Messe  Frankfurt (HK) Ltd  the Sub-Council of Textile Industry  CCPIT  and the China Home Textile Association (CHTA).

Source: Tecoya Trend

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Bank credit jumps 12.4%, deposits up 8.15%: RBI data

The data said that deposits increased by 8.15 percent to Rs 1,14,38,121 crore from Rs 1,05,75,615 crore a year ago Bank credit grew by 12.44 percent to Rs 86,13,164 crore in the fortnight to July 20, according to data recently published by the Reserve Bank 0f India (RBI). In the year-ago period, bank credit had stood at Rs 76,59,898 crore. Growth in advances during the reporting period was marginally lower than the increase registered in the fortnight to July 6, when loans increased by 12.78 percent to Rs 86,60,069 crore. During the reporting fortnight, deposits increased by 8.15 percent to Rs 1,14,38,121 crore from Rs 1,05,75,615 crore a year ago, according to the data. Despite the growth, the pace was slower than that in the last fortnight ended July 6, 2018, when they had risen 8.33 percent to Rs 1,14,85,768 crore. In June 2018, the non-food bank credit rose 11.1 percent as against a rise of 4.8 percent in the same month last year. Loans to agriculture and allied activities slowed 6.5 percent in June, compared to an increase of 7.5 per cent in June 2017. Personal loan segment saw a growth of 17.9 percent in June, up from an increase of 14.1 percent last June. During the reporting month, advances to the industry rose 0.9 percent compared to a contraction of 1.1 percent in June 2017. "Credit to major sub-sectors such as textiles, all engineering, food processing, chemical and chemical products, and cement and cement products accelerated," the apex bank said. However, loans to basic metal and metal products, construction and gems and jewellery contracted in June 2018. The services sector witnessed a major increase in loans to the tune of 23.3 percent compared to an increase of 4.7 percent in June 2017.

Source: Money Control

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Global Textile Raw Material Price 06-08-2018

Item

Price

Unit

Fluctuation

Date

PSF

1387.19

USD/Ton

1.60%

8/6/2018

VSF

2055.96

USD/Ton

0.21%

8/6/2018

ASF

3110.23

USD/Ton

0%

8/6/2018

Polyester POY

1525.91

USD/Ton

2.75%

8/6/2018

Nylon FDY

3402.27

USD/Ton

0%

8/6/2018

40D Spandex

5037.69

USD/Ton

0%

8/6/2018

Nylon POY

1730.34

USD/Ton

2.60%

8/6/2018

Acrylic Top 3D

3504.48

USD/Ton

0%

8/6/2018

Polyester FDY

5512.26

USD/Ton

0%

8/6/2018

Nylon DTY

1744.94

USD/Ton

2.58%

8/6/2018

Viscose Long Filament

3081.02

USD/Ton

0%

8/6/2018

Polyester DTY

3212.44

USD/Ton

0%

8/6/2018

30S Spun Rayon Yarn

2745.18

USD/Ton

0%

8/6/2018

32S Polyester Yarn

2146.49

USD/Ton

1.03%

8/6/2018

45S T/C Yarn

2905.80

USD/Ton

1.53%

8/6/2018

40S Rayon Yarn

2292.51

USD/Ton

1.29%

8/6/2018

T/R Yarn 65/35 32S

2453.14

USD/Ton

0.60%

8/6/2018

45S Polyester Yarn

2920.40

USD/Ton

0%

8/6/2018

T/C Yarn 65/35 32S

2496.94

USD/Ton

0%

8/6/2018

10S Denim Fabric

1.36

USD/Meter

0%

8/6/2018

32S Twill Fabric

0.84

USD/Meter

0%

8/6/2018

40S Combed Poplin

1.17

USD/Meter

0%

8/6/2018

30S Rayon Fabric

0.65

USD/Meter

0%

8/6/2018

45S T/C Fabric

0.69

USD/Meter

0%

8/6/2018

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14602USD dtd. 6/8/2018). 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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Canada likely to award preferential trade partner status to Pakistan

KARACHI: Canadian government is mulling a preferential trade partner status for Pakistan, which would boost the country’s current exports of minuscule $700 million a year to North American country, officials said on Monday. The officials said a not-for-profit organisation Trade Facilitation Office (TFO) of Canada tentatively approved Pakistan’s inclusion into Market Access and Capacity Building Project 2019-23, designed to encourage exports from developing economies under preferential tariffs. In 2017, Pakistan was the Canada’s 29th largest export destination for merchandise, with bilateral trade reaching $1.04 billion. Canadian exports to Pakistan totaled $693 million and imports from Pakistan totaled $351 million. In July-April 2018, exports to Canada stood at $102.2 million, up 4.6 percent while total imports from Canada clocked in at $169.5 million during the period under review. Textiles, leather and food products accounted for 74 percent of Pakistan’s exports to Canada. Non-textile exports are also growing. The Canadian biggest export products, oil seeds and lentils, remained subdued due to uncertainty over the phytosanitary conditions applied by Department of Plant Protection in Pakistan. Officials said Canadian TFO forwarded its recommendations to Global Affairs Canada – a government department that manages the country’s diplomatic and consular relations – for final decision, which is expected by the end of 2018. TFO Canada is currently implementing the Canadian Market Access and Capacity Building Services program with funds provided by Global Affairs Canada. “Inclusion in the program would give a much needed boost to country’s exports to Canada,” an official said. TFO Canada confronts the challenge of global poverty by promoting sustainable economic development through export information, advice and contact. The organisation facilitates access to the Canadian marketplace and shares Canadian trade expertise for the benefit of smaller exporters in developing countries. The official said the fund aims at assisting developing countries and their small and medium enterprises take advantage of new export opportunities created by free and preferential trade agreements with Canada. The program places an emphasis on initiatives that will help ensure that free and preferential trade access to Canada will ultimately contribute to job growth and poverty reduction in developing countries, and those which also address gender inequality or environmental concerns in doing so. High Commission of Canada in Pakistan said the priorities for the bilateral international assistance program are based on Pakistan’s development priorities and Canada’s comparative advantage in line with its feminist international assistance policy. Canada’s development assistance to Pakistan also includes multilateral, partnership and humanitarian programming. Additionally, project funding in Pakistan has come from the International Development Research Centre. The Canada fund for local initiatives provide direct funding assistance for small projects to local non-government organisations (NGOs) and, in exceptional cases, international NGOs and government institutions.

Source: The International News

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Sri Lanka apparel exports grow 12-pct in June 2018

Sri Lankan apparel exports grew 12.1 percent from a year earlier to 427 million US dollars in July 2018, with the EU and minor markets recording double digit growth, while half year exports were up 5 percent, data from an industry association said. For the first half of 2018, apparel exports grew 5 percent to 2.4 billion US dollars, Sri Lanka's Joint Apparel Association Federation data showed. The European market helped most to boost exports during the month with the GSP+ trade benefits. Exports to the EU increased 16.35 percent to 185 million US dollars, compared to 2017. Sri Lanka Apparel Exporters Association Chairman Felix Fernando said that he is expecting exports to the EU to grow above 10 percent in 2018. New clients are switching from East Asian destinations to Sri Lanka over Trump-China trade war fears, and local capacities are expected to remain full for the foreseeable future due to GSP+, he said. Exports to the US in July grew 7.8 percent to 180 million US dollars compared to a year earlier. One of Sri Lanka’s biggest US-based buyers, L Brands, is struggling, as its Victoria’s Secret store sales fell in June, a company financial statement said. Exports to other countries increased 12.7 percent to 62 million US dollars compared to a year earlier. For the first half of 2018, apparel exports grew 5 percent to 2.4 billion US dollars. The US remained the biggest buyer of Sri Lankan apparel with 1 billion US dollars of exports, growing 3.8 percent. Exports to the EU are a close second at 1 billion US dollars, growing 7.8 percent.

Source: Economy Next

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KENYA: Uhuru to meet Trump for trade talks as ties improve

President Uhuru Kenyatta will hold talks with his US counterpart Donald Trump on August 27 in Washington, the White House confirmed on Monday. The meeting will focus on growing trade between the two countries and finding a long-lasting solution to insecurity in neighbouring Somalia and South Sudan. “The meeting between the two leaders will reaffirm the long-standing relationship between the United States and Kenya as a cornerstone of peace and stability in Africa and the broader Indo-Pacific region,” Mr Trump’s press secretary Sarah Sanders said in a statement. “President Trump and President Kenyatta will explore ways to bolster trade and investment between the two countries, while strengthening security cooperation.” Trade between the two countries is tilted towards the US, with Nairobi buying goods worth Sh57.38 billion last year against exports – largely textile and apparels – valued at Sh47.27 billion, official statistics show. Washington views Kenya as key in strengthening its ties with Africa as Mr Trump appears to be moving to mend fences with the continent he reportedly described as a collection of “sh**hole” countries on January 11. Ms Sanders described Kenya as a “vital partner” of the US and that Mr Trump was looking forward to “discussing ways to broaden the strategic partnership based on our shared democratic values and mutual interests”. The Trump administration has been warming up to Nairobi in recent months, with two high-powered delegation on trade and security holding talks with top leadership in Nairobi. The US Presidential Advisory Council on Doing Business in Africa (PAC-DBIA) – a think-tank which advises Mr Trump through his Commerce secretary Wilbur Ross – pitched camp in Nairobi from June 27-29. The meeting culminated in signing of a memorandum of understanding (MoU), which set out a framework where Kenya and US authorities will be engaging each other on investment opportunities. US-Africa Command Commander Thomas Waldhauser also held talks with Mr Kenyatta on July 11 at State House focusing on security issues in war-torn South Sudan and Somalia. US Under-Secretary for Commerce Gil Kaplan, who led the delegation of about 60 business executives, made it clear American firms were keen on cutting deals with Nairobi under the ambitious “Big Four” plan. “Kenya is a wonderful partner for further trade, development and commercial relations,” Mr Kaplan said during the signing of the MoU. “We have been incredibly impressed by the sophistication and the thoroughness that they have looked at the problems that they are facing.” Under the “Big Four” plan state resources are being concentrated in manufacturing, food security, healthcare and affordable housing as well as enabling infrastructures such as roads, modern railway and power.

Source: Business Daily Kenya

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Trump restores Iran sanctions as Rouhani feels economic pressure

WASHINGTON: The Trump administration moved to restore some US sanctions on Iran and reaffirmed plans to impose tougher penalties on the country’s oil sales in November, as President Hassan Rouhani comes under increasing economic and political pressure to address the crisis.President Donald Trump signed an executive order on Monday restricting purchases of dollar banknotes by Iran, preventing the government from trading gold and other precious metals and blocking the nation from selling or acquiring various industrial metals. The measures, which take effect from August 7, also target the auto industry, and will ban imports of Persian carpets and pistachios to the US. While the penalties were expected, they drew fresh condemnation from European allies who are standing by the 2015 nuclear accord — known as the JCPOA — that Trump quit in May. They presage tougher sanctions against imports of Iranian oil that will go into force in early November, although the administration signaled it will consider partial  partial exemptions to that ban. “We deeply regret the re-imposition of sanctions by the US, due to the latter’s withdrawal from the Joint Comprehensive Plan of Action (JCPOA),” according to a statement on Monday from the foreign ministers of the UK, Germany, France and the EU. “Preserving the nuclear deal with Iran is a matter of respecting international agreements and a matter of international security.” Rouhani, who has denounced Trump’s decision to quit the accord, is expected to address his nation later on Monday. Iran’s central bank, acting on the eve of the US move, scrapped most currency controls introduced this year in a bid to halt a plunge in the rial that has stirred protests against the government. Earlier this year, the central bank said it would unify the exchange rate at 42,000 rials to the dollar in an attempt to root out unregulated trading. It banned exchange houses from selling foreign currencies, and authorities arrested dozens of people for allegedly manipulating the rules  for personal gain. But the policies backfired, with the rial weakening to more than 100,000 to the dollar on the black market this month. The US is weighing case-by-case exemptions for some countries from the next set of sanctions — which take effect in 90 days — targeting Iranian oil exports, according to Trump administration officials who briefed reporters on Monday, despite its announced goal of allowing “zero” Iranian oil exports. The administration had previously signalled that countries that don’t eliminate their imports of Iranian oil need to show “significant” reductions in those purchases to qualify for temporary waivers. The US goal is to get the Iranian regime to stop meddling in countries from Syria to Yemen, halt its ballistic missile programme and commit to stricter limits on its nuclear program, not to overthrow the government, the administration officials said.

Source: The Economic Times

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