There is a need to work on challenges in the form of outdated technology, inflexible labour laws and infrastructure bottlenecks. The government also needs to re-look at fibre neutrality and evaluate various trade agreement opportunities. There are a number of factors ailing the industry and the government needs to take multiple actions to revive the industry. The textiles sector in India, primarily dominated by the unorganised and small players, had taken a major hit with demonetisation and the implementation of the goods and services tax (GST). The sector appears to be finally recovering, as reflected by the improvement in the Index of Industrial Production (IIP) and exports data over the last few months. The government has tried to support the domestic industry by increasing import duty on several textile items. However, there are some deep-rooted problems with the sector, and these need to be addressed to see any long-term sustainable revival in the sector. At the same time, it is also disheartening to note that the Indian textiles industry—which is one of the oldest industries of the Indian economy—is finding it difficult to compete with much smaller players such as Bangladesh and Vietnam. The textiles and apparels industry in India is valued at around $127 billion in size. The sector is a large foreign exchange earner, and is the second-largest employer (after the agricultural sector) in the country. In India, the sector enjoys the presence of the entire value chain—from fibre, yarn, fabric and apparel—apart from the availability of cheap and abundant labour. However, in spite of these benefits, India’s share in the global textiles exports is just 5%, which is minuscule as compared to China’s share of 38%. Much smaller players like Bangladesh and Vietnam have a share of 3% in global exports and are increasingly threatening India’s exports. The exports from the sector are valued at around $37 billion, amounting to 13% of India’s total exports. The share of textiles in India’s total exports has fallen sharply—from a high of 25% in FY02. The export growth from the textiles industry was expected to jump, with the abolition of the Multi Fibre Arrangement (MFA) in 2005-06, whereby developing countries were released from export quota requirements. However, growth did not rise sharply, as the industry faced increased competition from low-cost producers like Vietnam and Bangladesh. The rise in labour cost in China could have been the perfect opportunity for India to increase its share in the global textiles industry. But India’s textiles industry has not been able to encash this opportunity, as the industry grapples with domestic issues including outdated technology, inflexible labour laws, infrastructure bottlenecks, and a fragmented nature of the industry. In midst of the existing challenges, the industry also needs to gear up for the abolition of some of the existing export subsidies. According to the World Trade Organisation’s Agreement on Subsidies and Countervailing Measures, a country needs to phase out export subsidies for a product as it achieves export competitiveness, defined as 3.25% share in world trade, and the per-capita income reaches more than $1,000 per annum. As per this agreement, India is under pressure to end export subsidy for the textiles sector by 2018. This implies that the existing subsidy schemes—including the Merchandise Export from India Scheme (MEIS) and the Export Promotion Capital Goods (EPCG) Scheme—will get affected by the same. There are a number of factors ailing the industry and the government needs to take multiple actions to revive the industry. To begin with, the government needs to move away from export-specific subsidy, which violates WTO norms, to focus on regional and cluster subsidies, technology upgradation and skill development subsidies, which benefit all the producers. Fibre neutrality is another aspect that will give a boost to the industry. In India, cotton and manmade fibres (MMF) have differential tax treatment. It was expected that with the introduction of GST, the fibre neutrality aspect will be looked into, but the differential tax treatment continues, with cotton taxed at 5% and manmade fibres at 12%. Globally, manmade textiles and garments are in high demand, with the ratio of cotton-to-manmade-fibre consumption at 30:70. India, despite being the second-largest textiles exporter in the world, lags in this category because of unavailability of manmade fibres at competitive prices. In fact, of the total textiles and clothing exports from India, cotton accounts for around 75%. There is a need to align our production with the global consumption patterns. While India has abundant supply of labour, flexibility in labour laws and adequate skilling will give a big boost to the textiles industry. For instance, women should be allowed to work in all three shifts, after taking into account adequate safeguard measures. This will enable the industry to employ more female workforce. The textiles industry in India is mainly dominated by small scale and unorganised players—small and medium-sized enterprises (SMEs) make up around 80% of the industry. These SMEs find it difficult to manage the latest technology. It is here that technology upgradation schemes will help Indian players to increase both their productivity and competitiveness. In addition, the government needs to carefully evaluate the various trade agreement opportunities—Bangladesh and Vietnam benefit from favourable access to some of the big apparel markets. Lastly, the Indian textiles industry needs to move up the value chain. India has a high share in global export market in upstream products, such as fibre and yarn (14% each). However, India has a low share in value-added downstream segments. India’s exports of apparels and fabrics have a share of around 3.5% each in world trade. Compare this to China’s share of 40% in the apparels segment, and even smaller players like Bangladesh and Vietnam have a higher share of 5.6% and 4.2%, respectively, in global apparels exports. The textiles industry is important not just for labour absorption and as a source of foreign exchange, but also as a symbol of India’s rich heritage. We have the required ingredients in the form of raw material availability and abundant labour to make the industry a success story. There is a need to work on correcting the challenges in the form of outdated technology, inflexible labour laws and infrastructure bottlenecks. The government also needs to re-look at fibre neutrality and evaluate various trade agreement opportunities, while domestically focusing more on technology upgradation and skill development. Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.
Source : Financial Express
The report of the panel will be submitted by the end of June 2019. MSMEs contribute significantly to employment, entrepreneurship and growth in the economy. The Reserve Bank of India Wednesday said an expert committee will be constituted to propose long-term solutions for the economic and financial sustainability of the MSME sector. The panel’s composition and its terms of reference will be finalised by the end of December, the RBI said in ‘Statement on Developmental and Regulatory Policies’. The report of the panel will be submitted by the end of June 2019. Micro, Small and Medium Enterprises (MSMEs) contribute significantly to employment, entrepreneurship and growth in the economy. MSMEs remain, by their predominantly informal nature, vulnerable to structural and cyclical shocks, at times with persistent effects, the central bank said while announcing setting up the committee. “It is important to understand the economic forces and transactions costs affecting the performance of the MSMEs, while often the rehabilitation approach to the MSMEs stress has focused on deploying favourable credit terms and regulatory forbearances,” it said. Earlier, the RBI’s Central Board had advised that it should consider a scheme for restructuring of stressed standard assets of MSME borrowers with aggregate credit facilities of up to Rs 250 million, subject to such conditions as are necessary for ensuring financial stability.
Source: Live Mint
India and the European Union does not have a free trade pact, but that hasn’t stopped one of its member nations from going all out to facilitate trade with India. Kristian Vanderwaeren, Director-general Administration Customs & Excise, Federal Ministry of Finance for Customs and Excise, Belgium, was in Mumbai on Tuesday to address a workshop on cold chain logistics organised by the Port of Antwerp, underlining the importance Belgium attaches to the smooth flow of trade between the two nations. This the excerpts from the conversation. Are you pitching for a free trade pact between India and EU? I regret that until now there is no free trade agreement between the EU and India. And, in a world which is uncertain, with a lot of tension, and given the historical relationship what we as Europe and Great Britain have with India, I found it rather strange why we don’t have a free-trade agreement. So, I’ve been talking to people here and I think it is important that we bring over the message to our politicians that they really should make an effort on a European and Indian level to get to a free-trade agreement. Free trade agreement is important because it creates the framework for a better cooperation. There is a third reason why I came here. Given the fact there is no free trade agreement, how can we foster and ameliorate cooperation between our countries. And there, we are looking at India and the Port of Antwerp, how can we foster cooperation between Customs and trade. How we can promote smooth exchange of goods with lesser number of inspections taking place. We already offer a lot of facilitation for export into Antwerp. I would like to look and see companies exporting from here to Belgium and companies exporting from Belgium to India, how together with the Indian Customs we can exchange best practices and move forward together. For that reason, I had discussions with the New Delhi headquarters of the Customs and they were willing to start a discussion and dialogue . What other areas of cooperation are you looking at with Indian Customs and trade? Another area where we cooperate with the Indian Customs is the IT platform. Indian Customs is pushing very hard on digitalisation and is investing a lot in scanning infrastructure. There, we are looking to set up a cooperation for exchange of best practices between the Customs authorities of the two countries. In Europe, free trade or negotiations on free trade are done on a European level, the regulations are European, however the implementation and inspections are done on a national level. Belgium is trying to proactively come out to help understand the problems Indian exporters are facing, to try and see how best you can resolve them without bending the law. This shows our willingness to facilitate compliant trade to help and to be open and transparent. How will Brexit impact trade between India and Europe? Brexit is going to have a huge impact. Now, Britain is part of the Customs Union. There are no Customs formalities for goods coming/going between the United Kingdom and Belgium on the Continent.
Source: The Hindu Business Line
New Delhi: India will import crude oil from Iran using a rupee-based payment mechanism, an industry person involved in discussions told Reuters on Thursday, adding that 50% of those payments will be used for exporting items to Tehran. India’s state-owned UCO Bank is expected to announce the payment mechanism in the next 10 days, the person said. “An agreement had been signed by the Indian and Iranian government on 2 November 2018 for oil payment in rupees and 50% of those funds had been earmarked for exports,” according to an Indian government document reviewed by Reuters. Oil payments are being made in rupees only as against earlier arrangements where there was a ratio of 45% rupees and 55% euros, the document said. Russian and Chinese shipping companies were pitching to facilitate India-Iran trade, the source said. Under US sanctions, India will be allowed to export farm commodities, food, medicines, and medical devices to Iran. However, items such as petroleum and petrochemical products, automobiles, steel, precious metals and graphite are not allowed to be exported to Tehran.
Source: Live Mint
Input tax credit (ITC) refunds worth Rs 6,000 crore still remain unpaid to exporters, the Federation of Indian Export Organisations (FIEO) said on Thursday, asking the authorities to make the entire refund process avilable online. FIEO president Ganesh Kumar Gupta said just like the IGST process, all the formalities involved in seeking ITC refunds must be made available online. The current system of manual submission in certain cases delays the refund process, blocking the capital of exporters. Even officials of some states cause unnecessary delay in accepting manual submissions. Gupta also said that UCO bank is working on necessary modalities to revive the rupee payment mechanism for trade with Iran following the US sanctions, which came into effect from November 4. Gupta also sought greater flow of credit to exporters. Export credit provided by banks fell sharply by about 51.3% to Rs 22,300 crore as of September 28 from a year earlier. This is despite the fact that total lending to the priority-sector rose 6.6%, latest data from the Reserve Bank of India showed. Overall non-food credit witnessed a rise of 11.3% up to September 28. The persistent decline in export credit, especially to small players in the current year so far has raised fresh concerns about adequate financial support to exporters. Even commerce minister Suresh Prabhu has taken up the matter with the finance ministry.
Source: Financial Express
India sought to revive discussions at the World Trade Organization (WTO) on recognition of educational qualifications and licences for professionals to provide services in other countries, called domestic regulation in trade parlance. New Delhi wants countries to ensure that their competent authorities take account of qualifications and licences acquired by other WTO members on the basis of equivalency of education, experience and examination requirements. It has sought discussions and disciplines on licensing requirements and procedures, technical standards and qualification requirements so that they do not constitute unnecessary barriers to trade in services. “This is an effort by India to rejuvenate and reenergise (the topic) which has not seen discussions in 2018,” India said as it listed qualification requirements, licensing requirements and technical standards as barriers to Mode 4 service suppliers. A group of 35 WTO members including China, the European Union, Australia, Japan and Russia had last year formed a plurilateral on services domestic regulation at the ministerial conference in Buenos Aires. Mode 4 or movement of natural persons is one of the four ways through which services can be supplied internationally. It includes movement of natural persons such as independent professionals, and is of key interest of India. “This issue has moved to the plurilaterals but developed countries do not engage on Mode 4,” said an official in the know of the details. India said that Mode 4 is the most important mode of export interest for most developing countries including least developed countries. “Unfortunately, it is most neglected and therefore needs facilitation through domestic regulation disciplines,” it told the organisation. India had set the ball rolling for discussions through its submission two weeks ago in which it detailed the transparency requirements for all such barriers. It has recommended procedures relating to appeals or reviews of applications, ways to amend or renew authorisation and licences to supply a service, the indicative timeframe for processing of an application, publishing in advance the applications that countries plan to adopt and processes relating to appeals or reviews of applications, among others. Though India wants to get Mode 4 issues discussed, which is a pragmatic approach as many developing countries have similar issues, experts have questioned the bargaining chip that the country may have in order to get talks started on the issue.
Source: Economic Times
Textile firms in India and Bangladesh should collaborate by exchanging products and technical know-how, and strengthen their position in the global market, said Nahid Rashid, counsellor with the Bangladesh high commission. She was speaking at the inauguration of ‘Weaves’, a textile fair organised at Texvalley, in Erode, on Wednesday. Deputy high commissioner of Sri Lanka for Southern India V Krishnamoorthy agreed with her. “In the globalized era, countries are required to cooperate, instead of competing with each other, as they are all interdependent of each other for goods and services in every imaginable sector and economic activity. For globalization to succeed, countries must engage in trade relations with the right spirit and right partners,” he said. “The textile sector provides upto 600 million jobs worldwide. There is a huge scope for a symbiotic relationship between Sri Lankan garment and apparel manufacturers and the Indian yarn and fabric suppliers,” Krishnamoorthy added. Vice-chairman of the Apparel Export Promotion Council (AEPC) A Sakthivel said that Tamil Nadu accounts for 60% of exports of yarn and fabrics, and 85% of knitwear. “Together, they provide about 40lakh direct jobs. However, the industry expects the government to create a level-playing field for it to compete in the global market effectively. The textile sector is going to stay in Tamil Nadu, where there is availability of raw materials, local demand, skilled people, tradition, culture and the spirit of innovation.” The fair has attracted about 250 exhibitors from countries like Sri Lanka, Bangladesh, and Myanmar and other parts of India, representing a wide range of the textile industry – from fabrics to weaving machines.
Source: Times of India
Globalization is the process of integrating the individuals across the world on a unified platform for the purpose of growing and evolving the business practices using advanced technologies. This not only reduces the geographical distances amongst the trading entities but also brings them closer to each other transforming the world into a single State.
India- the international business house
The Government has paved the way for entrepreneurial development of the country in order to elevate India's status on the international scale of trading. Contributions made in the form of incentivizing business policies have facilitated the World Bank's Ease of Doing Business global rankings for the country. Aiming at increasing the domestic production levels benefiting the Indian economy, offering employment opportunities to the working cadre and liberalization of the investment policies, the Government has been devising schemes for benefiting the corporates to expand their businesses in the country.
The exporting side
While the Government has made enormous efforts to promote commercial activities in the nation, focus has been to encourage trade overseas. Being a significant producer of various products, India exports a number of goods such as jute, tea, cotton, spices, engineering goods, refined petroleum, gems, jewellery, chemicals, agricultural products, textiles, etc. In order to improve and boost the exports performance of India, the Government introduced the Foreign Trade Policy (2015-2020). It also aims to help diversification of India's export by aiding various sectors of the economy to gain global competitiveness to foster exports.
Exporting to U.S.
India has been into the business of export of various commodities to the United States of America such as certain musical instruments, leather, textiles, handloom, dairy, chemicals, agricultural produce including processed fruits and vegetables. Strengthening its commercial ties with developing countries, the Government of the United States of America accorded exemptions in respect of duty and taxes over the products imported therefrom under of the Generalized System of Preferences to promote their economic development. As per the provisions of the said scheme, India was able to avail benefit of USD 5.6 Billion in terms of duty concession, thus being the largest beneficiary thereunder.
U.S. revokes tax exemption
In its recent move, the Government of the United States of America, withdrew its preferential treatment of allowing duty-free access to the imports from the developing countries effective from November 1, 2018. This action of the Government of the United States of America has been clarified as not being aimed at any particular country. The sudden change of events brought forth is expected to seriously affect the export business of India as the largest beneficiary as stated in Generalized System of Preferences. However, these products may continue to be imported subject to the regular Most-favoured nation duty rates. The changes in the international policies in respect on the applicable levies and duties brings significant impact in the business activities conducted by the commercial entities of a nation thus affecting its economic prosperity. The aforesaid modifications by the Government of the United States of America may result in restricted trading with the country.
Source: S.S. Rana & Co. Advocates
Rajesh Kumar Sharma, Secretary, Higher Technical Education & Skill Development Department, Government of Jharkhand, Wednesday invited industry to capitalise on the industry-oriented policies for industrial development and investment promotion framed by the state government. The Jharkhand Industrial and Investment Promotion Policy of 2016 aims at converting the state into a favoured destination for investors. Likewise, the Jharkhand Textile, Apparel and Footwear Policy and the Film Policy have created the right kind of environment for sustainable growth of industries. Speaking at 'ENGAGE - Employers Network for Generating Aspirational & Gainful Employment: Skill in Jharkhand: Skilling for Future', organised by FICCI and Jharkhand Government, Sharma enumerated the steps taken by the state government for creating a skills ecosystem and said that the state aims to train and skill 20 lakh people by 2022, thus touching the lives of 20% of its youth. Rajesh Agrawal, Joint Secretary & CVO, Ministry of Skill Development and Entrepreneurship, GoI urged industry to take advantage of the 'demographic bulge' that is more pronounced in Jharkhand by investing in skilling and training the required workforce. Jharkhand has 70% of the population under 35 years with the average age being 27 years. He said that investors need to view skill development from the standpoint of productivity gains from skilling instead of focusing on the perceived benefits of employing low-cost labour. He added that there was a need to evangelise apprenticeships of six months to a year for building a short-term skilling ecosystem. In this context, he commended the Vocational Education & Training (VET) systems adopted by Korea for reaping the benefits of productivity increases. Devendra Kumar Tiwari, Development Commissioner, Government of Jharkhand, said that skilling the workforce for Industry 4.0 was imperative not just for growth but for making Indian industry competitive. This was important as export growth in the future will be led by export of manpower, he added. He said that Jharkhand today boasts of an industrial culture that is evidenced by the absence of industrial strikes and loss of man-days. This climate was being improved by a decisive government through its policies.
Source: SME Times
Fashion changes every two weeks today, unlike every four seasons in the past, drastically shrinking the farm-to-shop floor lead time, said deputy chairman, CII southern region at the ongoing WEAVES, South India's first mega textile fair. About 250 exhibitors are presenting a wide range of the textile industry – from fabrics to weaving machines. The four-day programme will conclude on Saturday in Erode. The acceleration in the pace of change forces every stakeholder in the entire textile product supply chain, including weavers, to become agile and respond quickly, said deputy chairman Sanjay Jayavarthanavelu adding that skill development, adoption of technology and global trade practices are imperative for the weaving sector to achieve its full potential. The foreign countries represented as exhibitors and buyers include Sri Lanka, Bangladesh, and Myanmar. A coffee table book titled Titans of Tamil Nadu Textiles, featuring 28 successful entrepreneurs in the textile sector has also been released. About 20 speakers from India and abroad are addressing the WEAVES conference, being organised with the theme of Global Connect for Weaving. The event also features a fashion show. "Compared to spinning, the supply chain representing weaving, finishing, and processing has to do a lot of catching up in terms of adopting standards, robustness, and modernization. He said that textile sector is going to stay in the State, where there is availability of raw materials, local demand, skilled people, tradition, culture, and the spirit of innovation," said Jayavarthanavelu who is the chairman & managing director, Lakshmi Machine Works Limited. "Tamil Nadu accounts for 60 per cent of exports of yarn and fabrics, and 85 per cent of knitwear. Together, they provide about 40 lakh direct jobs. However, the industry expects the government to create a level playing field for it to compete in the global market effectively," A Sakthivel, vice chairman, AEPC & regional chairman, FIEO, said. "The strength of the industry is that it achieves such a huge volume of exports without having to import virtually anything. The farmers grow cotton of all counts – from 2 to 120 – throughout the year. The domestic industry meets all machinery needs. There is abundant skilled labour pool," pointed out Jayavarthanavelu. "In the globalised era, countries are required to cooperate instead of competing with each other, as they are all interdependent of each other for goods and services in every imaginable sector and economic activity. He said that for globalisation to succeed, countries must engage in trade relations with the right spirit and right partners. He said that the textile sector provides upto 600 million jobs worldwide, and there is a huge scope for a symbiotic relationship between Sri Lankan garment and apparel manufacturers and the Indian yarn and fabric suppliers," V Krishnamoorthy, deputy high commissioner, Sri Lankan Deputy High Commission, said. The council is keen to set up a CAD centre and work towards the development of computer-based design skills for the benefit of the weaving units of Erode, said M Duraisamy, immediate past chairman, Powerloom Development and Export Promotion Council (PDEXCIL). "For the fabrics sector to attain the stature of the spinning industry, it should adopt global standards in all business functions. There are a large number of weaving units but they are small in size. This makes it difficult for the sector to promote standards and to promote skill development, design, forecasting, marketing and visibility," said C Devarajan, past chairman, CII Erode Zone & vice chairman, Erode Textile Mall Pvt Ltd. (RR)
Source: Fibre2fashion
The rupee depreciated by 44 paise to close at 70.90 against the US dollar Thursday amid a strengthening greenback and sharp decline in equity markets. The dollar and yen rose on safe-haven buying after the arrest of a top executive of Chinese telecom giant Huawei in Canada for suspected Iran sanctions violations renewed concerns over US-China relations. Brent crude, the international benchmark, dropped 2.76 per cent to trade at USD 59.86 per barrel amid a crucial meeting of Opec members. Meanwhile, Saudi Arabia's Oil Minister Khalid al Falih said Opec is looking for a "sufficient" cut in oil production to prop up plunging crude prices. Forex traders said increasing demand for the greenback weighed on the domestic unit, which slipped below the 71 mark during the day. After opening lower at 70.82, the rupee plunged to the day's low of 71.14 and finally settled for the day at 70.90, down 44 paise over its previous closing price. On Wednesday, the rupee ticked higher by 3 paise to 70.46 against the US dollar. "The US yield curve inverted signalling the possibility of a slowdown ahead for the US economy. Domestically, market participants remain concerned about election outcomes with state elections results due next week. "These events were enough for investors to take money off the table and we witnessed a flight to quality as the INR weakened versus the dollar," said Sunil Sharma, Chief Investment Sanctum Wealth Management. Benchmark equity indices cracked for the third consecutive session Thursday on negative global cues. The BSE Sensex plunged 572.28 points, or 1.59 per cent, to close at 35,312.13. Similarly, the broader NSE Nifty fell 181.75 points, or 1.69 per cent, to 10,601.15. Foreign portfolio investors (FPIs) net bought shares worth Rs 72.47 crore Thursday, while domestic institutional investors (DIIs) offloaded equities to the tune of Rs 389.78 crore, provision data showed. The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 71.0371 and for rupee/euro at 80.5457. The reference rate for rupee/British pound was fixed at 90.2953 and for rupee/100 Japanese yen at 62.99.
Source: Economic Times
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1305.37 |
USD/Ton |
2.17% |
12/6/2018 |
|
VSF |
2023.29 |
USD/Ton |
0% |
12/6/2018 |
|
ASF |
2379.70 |
USD/Ton |
0% |
12/6/2018 |
|
Polyester POY |
1249.25 |
USD/Ton |
1.78% |
12/6/2018 |
|
Nylon FDY |
2886.25 |
USD/Ton |
0% |
12/6/2018 |
|
40D Spandex |
4810.41 |
USD/Ton |
0% |
12/6/2018 |
|
Nylon POY |
3221.52 |
USD/Ton |
0% |
12/6/2018 |
|
Acrylic Top 3D |
5495.53 |
USD/Ton |
0% |
12/6/2018 |
|
Polyester FDY |
1516.01 |
USD/Ton |
1.96% |
12/6/2018 |
|
Nylon DTY |
2769.63 |
USD/Ton |
0% |
12/6/2018 |
|
Viscose Long Filament |
2492.67 |
USD/Ton |
0% |
12/6/2018 |
|
Polyester DTY |
1421.26 |
USD/Ton |
2.09% |
12/6/2018 |
|
10S OE Cotton Yarn |
2079.41 |
USD/Ton |
-0.04% |
12/6/2018 |
|
32S Cotton Carded Yarn |
3411.02 |
USD/Ton |
-0.04% |
12/6/2018 |
|
40S Cotton Combed Yarn |
3870.19 |
USD/Ton |
0% |
12/6/2018 |
|
30S Spun Rayon Yarn |
2718.61 |
USD/Ton |
0% |
12/6/2018 |
|
32S Polyester Yarn |
1953.32 |
USD/Ton |
0% |
12/6/2018 |
|
45S T/C Yarn |
2915.40 |
USD/Ton |
-0.50% |
12/6/2018 |
|
40S Rayon Yarn |
2113.67 |
USD/Ton |
0% |
12/6/2018 |
|
T/R Yarn 65/35 32S |
2492.67 |
USD/Ton |
-0.58% |
12/6/2018 |
|
45S Polyester Yarn |
3017.44 |
USD/Ton |
0% |
12/6/2018 |
|
T/C Yarn 65/35 32S |
2565.55 |
USD/Ton |
0% |
12/6/2018 |
|
10S Denim Fabric |
1.35 |
USD/Meter |
0% |
12/6/2018 |
|
32S Twill Fabric |
0.83 |
USD/Meter |
0% |
12/6/2018 |
|
40S Combed Poplin |
1.15 |
USD/Meter |
0% |
12/6/2018 |
|
30S Rayon Fabric |
0.65 |
USD/Meter |
0% |
12/6/2018 |
|
45S T/C Fabric |
0.69 |
USD/Meter |
0% |
12/6/2018 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14577 USD dtd. 6/12/2018). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Officials from the Afghanistan Chamber of Commerce and Industries (ACCI) on Thursday said Afghanistan imports over $500 million worth of textiles/clothing on an annual basis. It is imported from China, Turkey, Korea, Iran, India and Pakistan. Meanwhile a number of economic commentators have said the government should invest in rebuilding Afghanistan’s textile factories to curb the country's reliance on others for fabrics. Analysts say Afghanistan has vast potential for fabrics and cloth. “Currently we do not have production in Afghanistan, there are some factories in the country, but material is imported from abroad, this is an important industry which has been concentrated,” said deputy head of ACCI Khan Jan Alokozai. “There is no production in Afghanistan's clothing sector, all of it is imported from abroad, but shoes are produced inside the country,” said fabrics importer Obaidullah. Meanwhile residents have said that imported textiles and clothing is sold at higher prices at local markets. “Businesses are not in good condition compared to the past, because people’s economic condition is not good,” said Yaser, a textile seller in Kabul. “We need to undertake infrastructural work on this sector, the government should accept its responsibility. Government should work in this sector and use the cotton and raw materials which we have, so that textile factories are reconstructed,” said a shopper in Kabul, Nazir Ahmad Rahimi. Economists say that if the government attracts investment in this sector, the country soon will become self-reliant.
Source: Tolo News
NAIROBI- Kenya's business community is seeking to tap into China's industrial technology in order to boost its exports, officials said on Wednesday. James Mureu, national vice chairman of Kenya National Chamber of Commerce and Industry (KNCCI), told a business forum in Nairobi that local manufacturers are facing stiff competition from foreign industrialists leading to a stagnation of the sector. "We are therefore keen for joint ventures with Chinese firms so that Kenya can benefit from advanced manufacturing technology that will make the country a major exporter of products," Mureu said during the first edition of the China Home Life Kenya Exhibition and Business to Business Forum. Over 600 Chinese suppliers of home products such as consumer electronics, furniture, textile garments, lights and lamps from eight Chinese provinces in China are showcasing their products for three days. The KNCCI has already signed memorandum of understandings with four provincial chambers of commerce in China in order to boost bilateral commercial ties. Oliver Konje, director of bilateral trade at the Ministry of Industry, Trade and Cooperatives said that the Chinese fair provides a very good platform for Kenyan buyers to network with Chinese suppliers. "The interaction may culminate in joint ventures, which are significant in expansion of trade and investment," Kiptoo said. He revealed that Kenya's main exports to China were titanium ores, niobium, tantalum, tea, plastic waste, leather, sheep, lamb skin and other oil seeds while top imports from China included telephone sets, non-electric rail locomotives, cars and automatic data processing machines. The government official said that trade plays a significant role in both countries' growth and development through its linkages with all sectors of the economy. Konje said that Kenya welcomes increased Chinese investments especially in manufacturing and value addition. "This will help bridge the wide trade deficit between the two countries and support the government's big four agenda," he added. He observed that Kenya is working tirelessly on improving the investment environment in order to reduce the cost of doing business in the country. Li Xuhang, Charge d'Affaires of Chinese Embassy in Kenya said that the China Home Life Kenya Exhibition is not only a platform to promote the development of bilateral trade but also a bridge for communication and cooperation. According to the envoy, the exhibitors are from the major economic and trade provinces in China that have their own characteristics in industrial development, which are highly complementary to Kenya. "We hope that on this fair, participants will have in-depth and extensive exchanges, establish contacts and lay a foundation for future cooperation. At the same time, apart from commodity trade, we hope that participants from both sides pay more attention to industrial investment cooperation," he added. He noted that the Chinese government encourages Chinese enterprises to invest in Kenya, adding that as a gateway to East Africa, Kenya's significant geographical advantages, stable political status, solid economic foundation and relatively superior business environment make it an attractive destination for Chinese investment.
Source: Li Xia. Xinhua
NDO/VNA – Vietnamese Minister of Industry and Trade Tran Tuan Anh and Korean Minister of Trade, Industry, and Energy Sung Yunmo signed a memorandum of understanding (MoU) in Seoul on December 6 on an action plan for attaining US$100 billion in bilateral trade by 2020. The signing was witnessed by National Assembly Chairwoman Nguyen Thi Kim Ngan, who is on an official visit to the Republic of Korea from December 4 to 7. The MoU is important as it reflects the commitment of the two ministries to further lift two-way trade as agreed by the two countries’ top leaders at the APEC Economic Leaders’ Week held in Da Nang last year. Under the action plan, the two sides will cooperate to support Vietnamese enterprises in enhancing their competitiveness in the fields of spare part manufacturing, automobiles, garment and textiles, footwear, and electronics. They agreed to facilitate the trade of agricultural products with the establishment of a working group among the Vietnamese Ministry of Industry and Trade; the RoK’s Ministry of Trade, Industry, and Energy; and relevant ministries from both sides. The Korean side also agreed to help build the capacity of Vietnamese officials in trade policymaking and improve the skills and competence of Vietnamese engineering workers and specialists in basic industries. After the signing ceremony, Anh and Sung co-chaired the mid-term meeting of the Vietnam-RoK Joint Committee for cooperation in nuclear power, energy, industry, and trade. The two sides reviewed the progress of their cooperation since the eighth meeting in Ho Chi Minh City in February. Both ministers conveyed satisfaction as most of the agreements reached during the last meeting have been effectively implemented. The two ministries have inked a variety of MoUs on cooperation in the supporting industry, automobile, garment-textiles and footwear, energy saving, electricity, trade defence, intellectual property, and most recently the action plan for raising bilateral trade to US$100 billion by 2020. Regarding training, this year the Korean Ministry of Trade, Industry, and Energy has so far organised more than 20 training courses for Vietnamese officials, focusing on trade policy, retailing, SME management, policy for supporting industry development and manufacturing techniques in automobiles, mechanics and metallurgy, electricity and electronics, garment-textiles, and more. The RoK has completed and transferred the US$21.1 million Korea-Vietnam Incubator Park (KVIP) to the Mekong Delta City of Can Tho; approved official development assistance (ODA) funding for a Vietnam-Korea technological consultancy and solution centre (VITASK); and partnered with the Vietnamese Ministry of Industry and Trade to survey the demand for support industry products from large Korean corporations. It has also made a list of qualified Vietnamese producers to help them enhance capacity in manufacturing electronic and automobile parts so they would be able to join supply chains of Korean enterprises in Vietnam. Furthermore, the two ministries agreed that the Governments of Vietnam and the RoK must improve the business climate and policies, as well as strengthen cooperation mechanisms to make enterprises of both sides a driver of economic growth in the two countries. They also agreed that they need to further expand new areas of partnership in the fields of trade, industry, and energy.
Source: Nhandan
Kazakh Invest National Company is presently negotiating with about 20 leading Turkish holdings, Managing Director of the company Erik Yakubayev told Trend. The negotiations are aimed at establishing in Kazakhstan the production of canned vegetables, paint and varnish products, sandwich panels, yarn and home textiles, processing of meat products, construction of solar power plants, as well as the opening of a modern clinic and projects in the logistics, chemical, mining and metallurgical industries. It is worth noting that since the beginning of this year, 23 projects with Turkish capital worth $1.5 billion have been in the monitoring system of Kazakh Invest. "For Kazakhstan, the implementation of agreements with Turkish companies will contribute to the development of the non-primary sector of the country's economy, as well as will have a positive socio-economic effect," Yakubayev said. For instance, more than 3,000 jobs will be created in the regions of the country. New plants will appear in Zhambyl, Kyzylorda, Aktobe and Almaty regions in the fields of mining and smelting, production of building materials, agriculture, agricultural chemistry and manufacturing. Since Kazakhstan gained independence, Turkey has invested more than $3 billion in the country. Moreover, Turkey is among the top 10 trade partners of Kazakhstan. Trade turnover between the two countries in 2017 increased by 27 percent and amounted to almost $2 billion.
Source: Azer News
The Uztextileprom Association and the South Korean Techno Park Geoji Daedzhin will sign a memorandum of understanding on cooperation in the textile industry, Trend reports with reference to the association’s press service. A certificate award ceremony will be held for industry professionals who successfully completed an internship in South Korea in November 2018. According to the information, Uztextileprom Association, with the assistance of Geongei Daejin, organizes a business briefing on the implementation of the Uzbek-Korean textile technopark in Tashkent on December 6. Cooperation between the parties enhances both the exchange of experience and the mobilization of additional resources. Technological experience of the Korean side will allow creating a universal textile infrastructure facility. It will become a platform for generating ideas, translating them into products that are competitive in the foreign market, as well as a platform for developing innovative textiles and training personnel in Uzbekistan. In accordance with the resolution of Uzbek President dated February 7, 2017, the construction of the Uzbek-Korean technopark, funded by the South Korean government in the amount of $ 15 million, was started. Technopark will be located in the Yakkasaray district of Tashkent city, where they will train students and young scientists, as well as conduct state and international research programs. Uzbekistan is the main trading partner of the Republic of Korea among the countries of Central Asia. Uzbekistan accounts for over half of the trade turnover of the Republic of Korea with the states of the region. In the January-July 2018, the trade turnover between Uzbekistan and South Korea amounted to $762.4 million. Currently, there are more than 460 enterprises with participation of Korean capital in Uzbekistan (386 joint ventures and 75 enterprises with fully Korean capital). Representative offices of 75 South Korean companies are also accredited in Uzbekistan. These enterprises successfully operate in the oil and gas, petrochemical and chemical, machine-building, electrical and textile industries, information and communication technologies, transport, logistics and tourism. Representative offices of 75 companies of Korea are accredited in Uzbekistan. The main areas of their activity are oil and gas, petrochemical and chemical, mining, engineering, electrical engineering, textile, information and communication technologies, transport and logistics, tourism, production of building materials, as well as processing of agricultural products.
Source: Azer News
Beijing is now officially worried about unemployment, as the US-China trade war continues to weigh on the world’s second largest economy. On Wednesday, the State Council unveiled policies ranging from refunding unemployment insurance payments to companies that do not lay off staff to giving subsidies to jobless young people aged 16 to 24 rather than only to college graduates without jobs, according to a document on the government’s website. The cabinet’s policy paper, which was drafted on November 16 but only made public this week, had already been passed down to local governments last month. The local governments were told to draft their own versions, taking account of local conditions, within 30 days. Beijing has prioritised employment stability over other economic targets in various meetings, but the document offers the first sign of unease within the central government leadership over whether it can fight off unemployment pressure, as the trade war continues to reduce corporate hiring demand, particularly from export manufacturers. While the official survey-based unemployment rate remained stable at 4.9 per cent in October compared to September, other indicators point to a weakening jobs market. The employment sub-index in both the official and Caixin purchasing managers’ index for the manufacturing sector showed factories have started to cut their workforces during the past few months because of weak overseas demand. In the export sector, hiring demand fell by more than half in the third quarter, according to the China Institute for Employment Research, with the supply of new jobs declining even more in coastal cities such as Ningbo and Suzhou that rely heavily on international trade. “Employment is facing new challenges this year, particularly since the start of the trade conflict,” Zhang Yizhen, vice-minister of human resources and social security, said at a press conference on Wednesday. “These [firms] operating mainly in import and export trade, particularly those exposed to and concentrating on US trade, are facing greater pressure [on employment].” According the State Council policy paper, companies that do not lay off staff or only scale down their workforce mildly can get a 50 per cent refund of unemployment insurance payments made on behalf of their employees last year. And for firms that face temporary operational difficulties but have had few lay-offs, the refunds could be higher. Companies in China are required to pay 2 per cent of their total payroll in unemployment insurance every month. Beijing also called for local governments to increase their financial support for individual entrepreneurs and small private-sector enterprises, which are the main driver of urban employment in China. These entrepreneurs and firms should be offered government-guaranteed loans of between 150,000 yuan (US$21,900) and 3 million yuan (US$438,200). Southern Guangdong province, a major hub of China’s export economy, is one of the first regions to heed Beijing’s call to lay out a detailed subsidy plan to stabilise employment, based on a notice dated last Friday but published on the government’s website on Monday this week. In the Guangdong plan, third-party recruitment agencies will get a subsidy of up to 800 yuan from the provincial government for each rural worker they help find a job, through which the worker contributes to the social security fund for more than six months. A small company that was registered within the last three years can get up to 30,000 yuan in total subsidies depending on the number of workers they hire. The government also offered subsidies – from hundreds to thousands of yuan – to encourage people who start new business in rural areas, college graduates who go to work for rural governments, and small enterprises that hire workers living below the poverty line. At least for now, Beijing remains confident it can keep the job market under control. “Even though key indicators have shown that employment remains stable, of course, we are concerned about the uncertainty surrounding the domestic economy and external markets,” Zhang said. “These new measures from the State Council will further stabilise and stimulate employment. We are confident [that they will do that].”
Source: South China Morning Post
Pakistan’s economy is facing worst conditions and the government should take immediate measures to boost exports. Zahid Mazhar, chairman of All Pakistan Textile Mills Association (APTMA) Sindh-Balochistan Region said that enhance in exports will not only help reduce massive fiscal and current account deficits, but also curtail rising trade deficit gap, unprecedented devaluation of the rupee, highest discount rate in the region and high inflation trend. Only the textile industry was capable to double its exports in the next five years, he said, and urged the government to address all the issues of the sector on priority basis. He said the first 100 days of the PTI government had already been lapsed and the government is yet to adopt measures to reverse the trend. “Drastic situation requires drastic measures,” he said, adding that if corrective measures are not taken in the next 30 days, the economic situation of the country will further worsen. Highlighting the issues hurting the viability of textile industry to compete with its regional competitors, Mazhar said that some of the major issues are high cost of doing business, inordinate delay in payment of refunds of sales, income taxes and duty drawback to exporters, highest policy rate in the region, and shortage of basic raw materials, ie, cotton for meeting consumption requirement of the industry at competitive prices. The APTMA official said increase in the cost of doing business cannot be passed on to the international buyers, which is resulting in de-industrialisation and decline in Pakistan’s share in the global textile trade. In contrast, the share of our regional competitors such as Bangladesh, India and Vietnam is rising, he added. He urged the government to give immediate attention to the cotton crop, which has witnessed a massive decline over the last few years. Four years ago, Pakistan had achieved the highest cotton crop of 14.87 million bales, which has now declined to 10.8 million bales as against the actual potential of 17.5 million bales annually. Resultantly, the spinning industry has to import around four million bales of raw cotton every year to meet its consumption requirements. Despite acute shortage of cotton, the previous government had imposed three percent Customs duty, two percent additional duty and five percent sales tax on import of raw cotton, which should be removed without any further delay, he said.
Source: The International News
Davies said South Africa is expected to deposit the instrument of ratification during the 32nd Ordinary Session of the Assembly of the African Union in February 2019. Trade and Industry Minister Rob Davies has welcomed Parliament's ratification of the agreement establishing the African Continental Free Trade Area (AfCFTA). Davies said South Africa is expected to deposit the instrument of ratification during the 32nd Ordinary Session of the Assembly of the African Union in February 2019. The agreement will enter into force once 22 Member States have deposited their instruments of ratification. "The AfCFTA, comprises 55 African countries and, once entered into force, will constitute the largest Free Trade Area globally. "As a flagship project of the African Union's Agenda 2063: The Africa We Want, the AfCFTA aims to build an integrated market in Africa that will see a market of over one billion people with a combined GDP of approximately US$3.3 trillion," Davies said on Tuesday. The United Nations Economic Commission for Africa estimates that the AfCFTA will increase intra-Africa trade from the current 10%-16% to approximately 52% by the year 2022. The AfCFTA was launched during an Extra-Ordinary Summit of African Union Heads of State and Government on 21 March 2018 in Kigali, Rwanda. South Africa signed the agreement during the 31st Ordinary Session of the Assembly of the African Union on 1 July 2018 in Nouakchott, Mauritania. To date, 49 countries have signed the Agreement, while Kenya, Ghana, Rwanda, Eswatini, Chad, Niger, Sierra Leone, Uganda and Guinea Conakry have deposited their instruments of ratification. The Minister said the AfCFTA is anchored on the development integration approach, which places emphasis on market integration, infrastructure development, and industrial development in order to boost intra-Africa trade. "In support of these objectives, the AfCFTA Agreement covers both goods and services under Phase I and will include investment, intellectual property and competition under Phase II of the negotiations," said Davies. The agreement will create a single set of rules for trade and investment among all African countries and provides legal certainty for traders and investors through the harmonisation of trade regimes. "It also facilitates intra-Africa investment and increases the continent's prospects of stimulating industrialisation, employment, income generation and poverty reduction," said the Minister.
Source: Devdiscourse
The government has decided to convert two state-run jute mills into textile factories under public private partnership. The cabinet committee on economic affairs yesterday in a meeting approved the proposal of the textiles and jute ministry. Ahmed Bawani Jute Mills in Demra and Kaderia Jute Mills in Tongi will be developed under the PPP initiative, said Nasima Begum, additional secretary to the cabinet division, after the meeting. She said the committee has given the final approval to the PPP contract document. Private sector operators will run the mills under design-build-operate-maintain-transfer method for 30 years. The mill in Demra has been awarded to a consortium of Tanzia Fashions Ltd, which will pay a contract fee of Tk 2.5 crore annually. The mill in Tongi has been given to a consortium of Orion Ltd, which will give the government Tk 5.20 crore annually as contract fee. The cabinet committee also approved a proposal for signing a contract with Belgium-based JAN-DNUAL for dredging of the Payra port. It will be implemented through a PPP initiative. After the economic affairs committee meeting, another meeting of the cabinet committee on purchase was held where 22 proposals were approved. After the meeting, Finance Minister AMA Muhith told reporters that there would be no meeting of the committees before the next national elections, scheduled to be held on December 30. Muhith said if there was any emergency proposal for purchases, the ministry concerned would send it to him and it would be okayed later on getting the prime minister's approval. The purchase committee also approved a proposal for the import of 7 lakh tonnes of fertilisers. Of the amount, Singapore-based M/S Wilsons Trading Private Ltd will supply 25,000 tonnes of urea at a rate of $379.87 per tonne while another 25,000 tonnes will be supplied by Abu Dhabi-based Zen Trade at a rate of $378.70 per tonne. Proton Traders Ltd will supply 25,000 tonnes of urea at $362.21 per tonne and another 25,000 tonnes at $361.91 per tonne. One lakh tonnes of diammonium phosphate fertiliser will be imported from Morocco at a rate of $545.75 per tonne alongside 2.5 lakh tonnes of triple super phosphate (TSP) fertiliser at a cost of $452.25 per tonne. Besides, 2.5 lakh tonnes of TSP fertiliser will be imported from Tunisia at $458.25 per tonne. The committee approved a proposal making Saif Powertech Ltd a terminal operator for container and cargo handing in the Chittagong port for six years. The port authority would give it Tk 310.30 crore. The committee also approved the Bangladesh University of Engineering and Technology (Buet) into becoming a consultant for preparing a detailed master plan of Payra sea port at a cost of Tk 124 crore. The university will carry out the task with the assistance of Royal Tuscany of Netherlands. The committee gave a nod to a proposal to buy 40 diesel locomotives for Bangladesh Railway. M/S Progress Rail of the USA will supply the locomotives at a cost of Tk 1,123 crore. Besides, the committee approved a proposal for increasing the contract value for Larsen & Toubro to set up a rail line from Khulna to Mongla port with Indian finance. Initially the contract value was Tk 1,076.44 crore. Now it has been increased to Tk 1,367.66 crore.
Source: Daily Star
