The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 20 MARCH, 2019

NATIONAL

INTERNATIONAL

Textile products export fall in February

Similarly, jute manufacturing (including floor covering) reported a decline of 10% to $23 million as compared to $26 million in February 2018. Except the cotton yarn/fabs/made-ups/handloom products category, all the other categories under the textile segment reported a decline in exports in February. Man-made yarn/fab/made-ups category has reported a decline of 2% in the month to $388 million, compared with $398 million in the year-ago period. Similarly, jute manufacturing (including floor covering) reported a decline of 10% to $23 million as compared to $26 million in February 2018. The carpet and handicraft categories reported a decline of 3% each to $111 million ($114 million) and $151 million ($156 million), respectively, in exports during the month, said the Confederation of Indian Textile Industry. Exports of the apparel segment, however, grew 7% during the month to $1.544 billion, compared with $1.44 billion in February 2018. Following this, textiles and apparel exports in February saw a growth of 3% to $3.094 billion, against $2.992 billion in February 2018. Cumulatively (April-February 2019), except the jute category, all the other categories under textile segment grew marginally.

Source: Financial Express

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India keen to host WTO mini ministerial

India had organised the informal gathering last year in the wake of talks collapsing at the Buenos Aires ministerial conference in December 2017. India has proposed to host an informal gathering of ministers of the members of World Trade Organization (WTO) in May to discuss the interests of least developed countries and developing countries in global trade rules amid the US accusing emerging economies of benefitting from exemptions meant for poor nations. India, which hosted a similar meeting last year, has already teamed up with China, South Africa and Venezuela to counter the US allegations and highlighted the glaring asymmetries through which the US has benefited. “At last year’s mini ministerial, we had portrayed our right to market access globally. We have proposed to organise another ministerial in Delhi in May to ensure to take this idea forward,” said commerce and industry minister Suresh Prabhu at the CII- EXIM Bank Conclave on India Africa Project Partnership. India had organised the informal gathering last year in the wake of talks collapsing at the Buenos Aires ministerial conference in December 2017. This year’s mini-ministerial meeting comes as developing countries fight to safeguard their eligibility to get Special and Differential Treatment (S&DT) at the WTO. WTO allows special provisions for developing countries called S&DT, such as longer time periods to implement agreements and commitments, measures to increase trading opportunities, provisions to safeguard their trade interests and support to build capacity to handle disputes and implement technical standards. Emphasising that certain countries have “immensely benefited” from Africa and India opening up their markets to global commerce, Prabhu said: “We allowed them to use our populations as markets. Now when we can benefit from it, some countries are raising issues on the importance of global trade.” The mini ministerial meet is being planned even as New Delhi is in the process of finalising a proposal to reform the multilateral trade watchdog that is rendered unproductive with the US blocking the appointment of judges for more than two years. New Delhi has sought amendment of laws on unilateral action by members on trade issues and resolution of the WTO’s dispute settlement system. The proposal also seeks to revive talks to strengthen global norms to protect traditional knowledge from reckless patenting by corporates through commercial exploitation of natural products by obtaining patents without fairly compensating the communities from which these originate -- an activity that has harmed India and Africa equally.

Source: Economic Times

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Govt’s proposed new industrial policy put on the back burner

Time has run out for the current government to announce the much-publicised new industrial policy that hoped to attract foreign investments worth $100 billion annually, create jobs and ease regulations as the Model Code of Conduct now in place makes it difficult for new measures to be implemented. “Officials who gave the final shape to the new industrial policy tried their best to speed up things and get the last-mile issues sorted out before the announcement of election dates, but it did not work out. It can now be hoped that the new government that comes to power after the general elections takes forward the work already done and announces the policy soon,” a government official told BusinessLine.

Delay in approval

The Department for Promotion of Industry and Internal Trade (DPIIT), formerly known as the DIPP, had drawn up the new industrial policy sometime last year, and had also sent it to the Union Cabinet for its approval. The proposal, which when implemented would have replaced the 27-year-old existing policy, however, led to a lot of questions from Cabinet members. “DPIIT officials gave an extensive presentation on the nuances of the proposed policy including changes in labour laws, policy to ease investments and business and also ushering in of new technology including artificial intelligence,” the official said. But doubts on various aspects of the new industrial policy remained and a Cabinet approval was elusive. “One reason why there was a delay in approval was the fact that the proposal was multi-faceted and included sensitive issues such as labour regulations, foreign investment rules, reversing the inverted duty structure, and lending to the micro and small sectors,” the official said. The new industrial policy proposes to increase share of manufacturing in the country’s GDP to 25 per cent by 2022 from the existing 15-16 per cent.  The draft policy also proposed the establishment of a body with representation from the Centre and the States to work on changes in labour laws whenever required. It suggested strengthening of municipal bodies as well. Increased competition from China was also factored in by the draft policy and its effects on the MSME sector and ways to deal with it discussed.

Source: The Hindu Business Line

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In duty drawback, a readymade short-term gain for SMEs: CRISIL

CRISIL expects the export incentives announced by the government in December 2018 to materially benefit the readymade garments (RMG) segment. In fiscal 2018, the segment housed about 37,400 SMEs, accounting for a quarter of the market. These units undertake job work for branded apparel companies. RMG is the largest segment of India’s textiles sector. The domestic market accounts for about 76 per cent of its revenues, and grew at 10 per cent in 2018, while exports fell two per cent. Export growth has slowed in recent years due to waning cost- expects the export incentives announced by the government in December 2018 to materially benefit the readymade garments (RMG) segment. In fiscal 2018, the segment housed about 37,400 SMEs, accounting for a quarter of the market. These units undertake job work for branded apparel companies. RMG is the largest segment of India’s textiles sector. The domestic market accounts for about 76 per cent of its revenues, and grew at 10 per cent in 2018, while exports fell two per cent. Export growth has slowed in recent years due to waning cost-competitiveness compared with China, Vietnam and Bangladesh. Growth in non-traditional markets (other than US and EU) also likely slowed. In addition, demonetisation, GST and a cut in duty drawback hurt. To rebound and attain the target of $82 billion exports by fiscal 2021, duty drawback rates were hiked and the cap on products where the rates were less than two per cent was removed. This should improve competitiveness in markets where India has preferential tariff agreements. The withdrawal of the US from the Trans-Pacific Partnership will also help. But withdrawal of benefits under the Merchandise Exports from India Scheme could be a dampener and a key monitorable. In the domestic market, deeper penetration of organised retail and the growing preference for RMG over tailor-made garments would lead to a growth of 10 per cent in the domestic market in 2019. competitiveness compared with China, Vietnam and Bangladesh

Source: Business Standard

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Counterfeit and pirated goods represent 3.3% of global trade: report

Global sales of counterfeit and pirated goods have soared to USD 522 billion a year, amounting to a whopping 3.3 per cent of world trade, according to a report published Monday. The latest assessment by the EU Intellectual Property Office (EUIPO) and the OECD found the share of counterfeit goods had seen a "considerable" rise since its previous 2016 estimate of 2.5 per cent of global trade. Such goods represented 121 billion euros worth of imports into the European Union alone - a massive 6.8 per cent of total imports into the bloc, up from five per cent in 2016, EUIPO said in a statement. "Counterfeiting and piracy pose a major threat to innovation and economic growth, at both EU and global level," EUIPO executive director Christian Archambeau said. He said that the "deeply concerning" rise "clearly calls for coordinated action, at all levels, to be fully tackled".The companies most affected by counterfeiting and piracy are mainly based in developed OECD nations like the United States, Japan, South Korea and EU states, the report said. But businesses in China, Brazil and Hong Kong are being increasingly hit, it added. The countries exporting the most counterfeit and pirated goods were China, Hong Kong, United Arab Emirates, Turkey, Singapore, Thailand, India and Malasysia. The report was based on data from almost half a million customs seizures by international enforcement agencies.

Source: Business Standard

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India not first tier country for post-Brexit FTA, says UK minister

India is not the first tier country for post-Brexit free trade agreement (FTA) and a lot more work would be required before Britain can start negotiating such a deal with New Delhi, the UK government admitted on Tuesday. In his submission to the ongoing ‘Global Britain and India’ inquiry being conducted on post-Brexit India-UK ties by the House of Commons Foreign Affairs Committee (FAC), UK Foreign Office Minister Mark Field flagged some “high-value" trade disputes involving British companies in India as a warning sign on the road ahead. "It isn’t that India isn’t important, it’s just that India isn’t in that first tier," said Field, as he addressed questions from cross-party MPs on the influential parliamentary committee. "It is fair to say not all British companies have found it entirely easy to operate in India. There have been a number of high-value trade disputes that have required international arbitration. And, that has been a slight sense of a warning sign," he said, when asked to elaborate on the stumbling blocks to an FTA. Field, who is in charge of Asia in the UK’s Foreign and Commonwealth Office (FCO), said that difficulties remain despite the "positive step" of India’s 53-rank rise in the Ease of Doing Business rankings. "There is in no a de-prioritisation of the Indian issue, there are other FTAs which will probably be easier and smoother to manage, not least because they have reached the end of an EU FTA, or other countries like Australia and New Zealand, which are very much on the front foot to doing FTAs quickly," he noted. In reference to the importance attached by India to the issue of visas and immigration in relation to any post-Brexit trade agreement, the minister claimed that the UK had a “good story" to tell on visas with some of the largest number of skilled professionals coming from India. “I think there is a better news story than sometimes meets the eye. There is often a bit of a lag between the perception and reality of what is going on. But if it [visas] is being ranked overwhelmingly at No. 1 [as a trade hurdle] by our counterparts, then we do have to take it seriously," he said. Field was joined at the session on Tuesday by Fergus Auld, Head of South Asia Department and India Coordinator at the FCO, who made a reference to the lengthy FTA negotiations between India and the European Union (EU) as a learning curve for future India-UK trade ties. He said: "With India, the Department of International Trade (DIT) is looking first at how to address other barriers to bilateral trade that would help build towards a future trade relationship rather than going straight for an FTA. "One experience that we have drawn is the lengthy negotiations between the EU and India on an FTA have not yet concluded." The ‘Global Britain and India’ inquiry was launched by the FAC in July last year as part of a wider Global Britain series in the context of Brexit. It has been collating written and oral submissions from stakeholders on both sides to establish what more needs to be done to strengthen trade ties with India as the UK prepares to leave the EU, which will be compiled into a set of recommendations for the government later this year. The UK is due to leave the EU on 29 March. Nearly three years after Britain voted to leave the EU, its departure is uncertain. The UK government can ask the EU to delay Brexit but all 27 EU leaders would need to give their permission. Prime Minister Theresa May's plan to bring her Brexit deal back to parliament for a third meaningful vote was thrown into chaos on Monday, when the House of Commons Speaker, John Bercow, said parliamentary convention meant it would be unacceptable for another vote to be held on an unchanged deal.

Source: Live Mint

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ITMACH India to confluence textile & clothing industry

A confluence for the textile and clothing industry, the International Textile Machinery and Accessories Exhibition (ITMACH) India 2019, is expected to be the most important event in the South Asian subcontinent this year. The four-day trade show from December 5 is in discussion with several more industry bodies for collaboration and participation. Backed by incentives-laden government policies, Indian industry is returning to investment mode again and ITMACH India is placed rightly to interact with textile manufacturers from spinning, weaving, knitting, dyeing, printing, processing, digital printing, nonwoven and technical textiles, garmenting, quality control and utility machinery and so on, said K AND D ITMACH Expositions, organiser of ITMACH India. More than 500 exhibitors are expected at the trade event in Ahmedabad. Leading machinery suppliers have confirmed their participation in ITMACH India and the show will have several concurrent events with the aim to increase interaction and knowledge sharing among the manufacturing industry, machinery and technology marketers, policy makers and academia.

Source: Fibre2Fashion

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Trade liberalisation, but on our terms

Tariff rate quotas can work as deal-makers in global trade talks, by balancing the interests of local producers and consumers India has a whopping $104-billion trade deficit with the 16-member Regional Comprehensive Economic Partnership (RCEP) grouping, which was 64 per cent of India’s total trade deficit of 2017-18. No wonder, there is a raging debate on opening up a very significant portion of the market, given the sensitivities around agriculture- and labour-intensive domestic industries. Several other trade agreements are also in various stages of negotiations. Long-term, back-ending of tariffs or spreading tariff eliminations over a longer period of time has been our palladium of trade negotiations in the past. However, it need not continue to be so for all lines in which concessions are eliminated. The introduction of Tariff-rate quotas (TRQs) can be a more germane transitional tool; providing a degree of safeguard to the future demand growth in a rapidly expanding market. This is particularly useful while negotiating with countries which have saturated markets. A TRQ is a mechanism that allows a set quantity of specific products to be imported at a low or zero rate of duty. TRQs are established under trade agreements between countries. They do not function as an absolute limit on the quantity of product that may be imported. The “TRQ commitment” does not apply any limits on the quantity per se of import of a product, but applies a higher rate of duty for that specific product once imports up to the “TRQ commitment” have been reached. For example, the US cotton tariff quota protects US cotton growers while allowing textiles manufactures to import some cheaper cotton also. The quota component works together with a specified tariff level to provide the desired degree of import protection. Essentially, a TRQ is a two-tiered tariff instrument. Imports entering within the quota portion of a TRQ are subject to a lower tariff rate called the tariff quota rate or TRQ rate. The later imports that are unable to make it to the quota’s quantitative threshold face a much higher tariff rate, which is normally the MFN tariff. (MFN tariffs are what countries promise to impose uniformly on imports from other members of the WTO.) In other words, TRQ is a limit on the quantity eligible for lower or zero duty. The use of this instrument is globally quite prevalent. It is estimated that as many as 1,200 TRQs are operated each year by WTO members including EU, Japan, Canada and the US. This ensures that limited volumes of these sensitive products can enter their market at a low tariff, whereas the tariff outside the TRQ quantity is kept high to offer a degree of protection to the domestic producers.

Why TRQs

TRQs protect domestic producers from having to face competition from large quantities of imports. They also allow consumers and producers in the importing country to get enjoy a benefit, albeit a limited one, of lower priced products. Tariff quotas are used on a wide range of products. Most are in the agriculture sector: cereals, meat, fruit and vegetables, and dairy products are the most common. Sugar is protected in most producing countries with tariff quotas. TRQs have now become a way of reaching a consensus with trading partners. The EU-Japan bilateral deal was finally unblocked with a TRQ for cheeses including mozzarella, Brie, Camembert and feta. As for the proposed EU-Mercosur deal, EU TRQs for beef and ethanol are the main event as far as Brazil and Argentina are concerned, though they represent a fraction of total EU consumption. TRQs face their share of criticism. Trade liberalisation proponents argue that while TRQs allow imports, they do so in an inefficient manner. Yet,TRQs now appear to be a permanent fixture of global trade. The reason is not far to see. On the one hand, TRQs are used as sweeteners to help reach a consensus in trade negotiations, while on the other, TRQs help overcome traditional domestic opposition to trade deals — they are a trade-off between the broader interests of consumers and the degree of protection afforded to the competing domestic producers. The challenge lies in addressing the concerns of domestic industry. If duties are zero, who will make in India? Does a reasonable duty wall bring in investments? For example, global car majors invested in India on account of an import duty wall. A possible clue in addressing this concern lies in surveying the happenings in global trade, especially in regard to China.

The Chinese example

China has built its global leadership in trade on the strength of its investments. As per the recent Nomura report on Sino-US trade war, 43 per cent of China’s exports are by foreign owned companies, bringing up the pertinacious need for inducing investments in manufacturing – more so today than ever before, as industries in China are relocating or diversifying their production base. The TRQ administration system must not ‘impair or nullify the market access commitments negotiated’. It should be transparent, minimising transactional costs for traders.  Historically, the quotas are allocated through a slew of processes. These are: Auction, where importers bid for shares or licences; first-come, first-served, where physical imports are charged in-quota tariffs until the quota is filled; licence on demand where allocation is made in relation to quantities demanded (first-come-first served with a sort of pro rata element); and finally, import by state trading entities. Tariff arbitrage is an effective tool for inducing local manufacture or at least domestic value addition in the country. It has been a basic tool in the country’s Phased Manufacturing Programme policy. If we are to induce investments in manufacturing, then we need not be committed entirely to a zero tariff regime, however back ended. A quantity linked tariff elimination could also be considered in the long run, keeping aside our future demand growth as an inducement for investments and expansion of domestic manufacturing. The writer is an Additional Secretary in the Department of Commerce.

Source: The Hindu Business Line

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Conclave on India-Africa project partnerships concludes

The 14th CII-EXIM Bank Conclave on India-Africa Project Partnerships concluded in New Delhi on Tuesday. The three-day conclave was organised by the Ministry of Commerce inassociation with Confederation of Indian Industry and EXIM Bank of India. The conclave held annually, since its inception in 2005, brings senior Ministers, policy makers, officials, business leaders, bankers, technologists, start-up entrepreneurs and other professionals from India and Africa on a common platform. Addressing the valedictory session, Commerce Secretary, AnupWadhawan said that trade ties with African countries have strengthened over the years and the relationship has been mutually beneficial. He said this conclave marks the pre-eminence of India-Africa partnership in the realm of South - South Cooperation at a time when the global economy is faced with intractable challenges that stem from rising protectionism and trade conflicts.  The India-Africa bilateral partnershipisfurther augmented by India’s ascendency as the growing major economy, as well as Africa’s new economic dynamism illustrated by some of the sub-Saharan economies featuring among the top 10 fastest growing economies in the world. The Commerce Secretary said that the conclave coheres into the Indian government’s larger vision of long–term engagement with Africa and Government of India’s unwavering commitment to expanding the canvas of India – Africa economic partnership. He said several Indian engineering companies have been engaged in bridging the gaps in physical infrastructure in Africa by way of development of roads, highways, ports, power generation and distribution and watershed projects that connected different African countries. India’s development cooperation ranges from power projects and dams in Sudan and Rwanda to water treatment plants in Tanzania, sugar factories in Ethiopia and IT Parks in Mozambique and Swaziland, building of the Presidential Place in Ghana and National Assembly building in the Gambia, besides other numerous projects. AnupWadhawan informed that as part of India’s outreach in Africa, Ministry of External Affairs, on 10th September 2018 signed an agreement with the Telecommunications Consultants India Limited (TCIL) to establish a pan- Africa e-Arogya Bharti Network Project. The event also marks the deepening of India-Africa economic and business ties and paves the way for a whole range of cross-border project partnerships. Over 500 delegates from Africa participated in the conclave.Vice President of Republic of Ghana,Dr.MahamuduBawumia,Prime Minister of Republic of Guinea, Dr.IbrahimaKassoryFofana andDeputy Prime Minister of Kingdom of LesothoMonyaneMoleleki, also participated in the conclave.

Source: SME Times

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India to renew essential commodities quota for Maldives

India will renew the quota for essential commodities for Maldives, including river sand and stone aggregate, for a period of three years, starting April 1, 2019, Minister for External Affairs Sushma Swaraj has said. In a meeting between Swaraj and her counterpart Abdulla Shahid in Male, the two noted the increase in bilateral trade volume over the past few years and agreed to improve connectivity as a means to promote the exchange of goods and services, culture, and people, according to a joint statement released by the two sides. “The Ministers also agreed on the need to boost private sector involvement, and agreed to hold the Maldives-India Business Forum in 2019,” the statement added. Swaraj is on a two-day visit to Maldives at the invitation of her counterpart Shahid. At present, India’s exports to the Maldives are worth $212 million, which is a miniscule part of the country’s total exports of over $300 billion. Its imports from the tropical country are negligible at round $5 million. Last January there were reports that India had cut down on Maldive’s quota for essential commodities such as onions and eggs. The Indian government had denied the allegation and clarified that the quota for the items were based on the actual utilisation by the country in the recent past. India’s relationship with Maldives improved significantly after pro-India opposition candidate Ibrahim Mohamed Solih won in the September 2018 elections and became the new president after defeating Abdulla Yameen, who was seen as being close to China. “FM Shahid thanked the Government of India for the provision of financial assistance in the form of budgetary support, currency swap, and concessional lines of credit,” the statement said. The Foreign Ministers welcomed the entry-into-force, on March 11 2019, of the Agreement on Visa Facilitation and expressed their commitment to address the issues related to the welfare of their respective communities residing in both countries, including the speedy provision of consular services.

Source: The Hindu Business Line

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Dyeing for natural fabrics

Kamalini, the store by Crafts Council of Karnataka in Malleshwaram, presents an exhibition featuring designs by Bageeya from Delhi. Headed by designer Jigisha Shukla,  Bageeya will be in the city with its latest designer collection of Maheshwari, Chanderi, linen saris, kala cotton dresses, linen shirts and Chanderi dupattas to name a few. “Bageeya means a tiny garden. Just as the name suggests, I draw inspiration for my designs, prints and textures from gardens and nature. Even the printing is done with actual flowers and leaves,” says the designer, who works with her mentor and partner, Narayani Singh. “The speciality with our collection this time is our reversible dresses in kala cotton,” adds Jigisha, who took to designing as she always had an inclination towards crafts and textiles and likes to work with material that is “raw and rustic”. “I started experimenting right after college and started off Bageeya immediately after graduating from design school.” About making designer wear more pocket friendly, Jigisha says, “I plan to bring my collection to the mainstream where every one can buy these clothes and not a select few. As of now, it is difficult to cut costs as we are not into bulk designs or productions and neither do we make replicas. The price range has always been a challenge when it comes to designing something unique, yet we try and make it as affordable as possible. Like we have reversible kimonos in Pashmina, which is priced at ₹6,000. These will last for ever and can be used as a simple party wear or for a grand wedding.” She prefers using only natural dyes and shares that “it is a tedious process. To make it more cost friendly, we try and colour as many fabrics as possible with one dyeing process.” So far, her palette has natural dyes from flowers such as marigold, tesu, semal, rose, hibiscus, pomegranate peels, walnut, katha, indigo and she has used leaves of eucalyptus, papaya, rose petals and leaves for printing. Jigisha is also on mission to “restore and encourage a sustainable lifestyle, where designs can be reused with the notion of ‘mend and lend’. Bageeya envisions to spread that idea of sustainability with affordability”. Bageeya will be in the city on March 22 and 23 at Sri Bhooma, 17 Cross, Malleshwaram.

Source: The Hindu

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Letter to BS: America needs India's support for its own economic growth

This is with reference to “Winners and losers” (March 19). The termination of duty free benefits by the US on the import of goods from India does not call for a major panic. First, the US cannot afford to provoke India that is its major trading partner. Indian exports to the US is a small percentage of our overall export trade. The US, on the other hand, needs India to support their economic growth. Second, the prevailing US laws exclude imposition of import duties for essential commodities like textiles, bags and apparels and as pointed out, only a few nominal ones actually get affected. Accordingly, preventing imports exceeding 50 per cent from any one country cannot be strictly applied to India. The US can at best roll over or delay the excess percentage of imports from India to the next financial year. It is only a technical necessity. Third, Indian exports do not cover the entire gamut of economic requirements of the US for its import trade. Fourth, the Indian economy of the 21st century is far more advanced and modernised with its products to be globally competitive. Last but not the least, the US government has to buy the confidence of its Senate that has been highly critical of its government policies. The setback for India is at worst marginal, if not temporary.

Source: Business Standard

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How India’s trade basket changed between 2013-14 and 2018-19

India’s merchandise exports in the current financial year are expected to top the levels achieved in 2013-14 for the first time in five years, thanks to a little help from the elevated petroleum product prices. Estimates are that the value of India’s exports will rise above $314 billion, as it had already earned $298 billion between April 2018 and February 2019. However, the composition of the basket of goods that helped India earned over $300 million in 2013-14 is significantly different now, with the share of petroleum products declining and that of manufactured items rising.

Top earner

Yet, petroleum products continue to be the top earner of foreign exchange, although total earnings are lower than five years ago, an outcome of volatile global prices. Crude and product prices, although elevated, are far lower than it was five years ago. Therefore, its share in the export basket has declined to 14.8 per cent of the earnings in 2018-19, between April and January, the period for which comparable disaggregated data is available from 20.4 per cent in the corresponding period of 2013-14. In contrast, the share of electric machinery and equipment as well as aluminium and aluminium products in the export basket has doubled and tripled, respectively, since 2013-14. Electric machinery and equipment now account for 2.6 per cent of the export basket, up from 1.2 per cent in 2013-14 and aluminium and its products account for 1.8 per cent, up from 0.6 per cent. At the commodity group level, contribution of chemicals and related products recorded a jump in export earnings from 9.8 per cent in ten months of the 2013-14 to 13.2 per cent in the current year, helped by a jump is export of agro and organic chemicals mostly. Drugs formulations and biologicals, which are also categorised as chemicals, continue to be a key export commodity. Significant changes are also seen in the direction of trade, even though the US continues to be the top destination of exports and China the top source of imports. The US is now a more important destination for India than it was in 2013-14, with 16 per cent of the exports headed there now compared to 12.5 per cent five years ago. Bangladesh and Nepal are also among the top ten destinations for India’s export.

Source: The Hindu

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FIEO expresses concern over rupee surge

The Federation of Indian Export Organisations (FIEO) on Monday said the sharp appreciation in the rupee is a cause of concern and called for intervention to manage extreme volatility in the domestic currency. The Indian rupee surged by 57 paise on Monday to close at an over seven-month high of 68.53 against the US dollar, also marking a sixth straight session of gains, driven by sustained foreign fund inflows and narrowing trade deficit. “Such sharp appreciation is causing concern both amongst the exporters as well as importers, as uncertainty in the exchange rate is driving volatility,” FIEO President Ganesh Gupta said. “Exporters who have contracted at ₹74 to a dollar but could not hedge it due to non-availability of limit by banks, tend to incur huge losses,” he said.

Source: The Hindu Business Line

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Global Textile Raw Material Price 2019-03-19

Item

Price

Unit

Fluctuation

Date

PSF

1319.79

USD/Ton

-0.23%

3/19/2019

VSF

1849.46

USD/Ton

-1.43%

3/19/2019

ASF

2443.61

USD/Ton

0%

3/19/2019

Polyester POY

1323.81

USD/Ton

1.14%

3/19/2019

Nylon FDY

2903.75

USD/Ton

0%

3/19/2019

40D Spandex

4735.34

USD/Ton

0%

3/19/2019

Nylon POY

1518.88

USD/Ton

1.49%

3/19/2019

Acrylic Top 3D

3127.11

USD/Ton

0%

3/19/2019

Polyester FDY

5628.80

USD/Ton

0%

3/19/2019

Nylon DTY

1571.00

USD/Ton

0%

3/19/2019

Viscose Long Filament

2695.27

USD/Ton

0%

3/19/2019

Polyester DTY

2605.93

USD/Ton

0%

3/19/2019

30S Spun Rayon Yarn

2665.49

USD/Ton

0%

3/19/2019

32S Polyester Yarn

2017.73

USD/Ton

0%

3/19/2019

45S T/C Yarn

2873.96

USD/Ton

0%

3/19/2019

40S Rayon Yarn

2174.09

USD/Ton

0%

3/19/2019

T/R Yarn 65/35 32S

2576.14

USD/Ton

0%

3/19/2019

45S Polyester Yarn

2978.20

USD/Ton

-0.50%

3/19/2019

T/C Yarn 65/35 32S

2531.47

USD/Ton

0%

3/19/2019

10S Denim Fabric

1.37

USD/Meter

0%

3/19/2019

32S Twill Fabric

0.83

USD/Meter

0%

3/19/2019

40S Combed Poplin

1.12

USD/Meter

0%

3/19/2019

30S Rayon Fabric

0.64

USD/Meter

-0.46%

3/19/2019

45S T/C Fabric

0.71

USD/Meter

0%

3/19/2019

Source: Global Textiles

 

Note: The above prices are Chinese Price (1 CNY = 0.14891 USD dtd. 19/03/2019). 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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US, China trade talks to resume next week

The United States and China will resume trade talks next week after a pause in negotiations, according to an administration official. Quoting the official, CNN reports that Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer will travel to Beijing for discussions, aimed at finalising a trade deal between the two countries. Subsequently, a Chinese delegation led by Vice Premier Liu He will then visit Washington for the next round of talks. Following the previous round of talks, negotiations were put on hold after the two sides broached disagreements regarding the enforcement mechanisms in the final deal, according to CNN. "China's going very well. China talks going very well," US President Donald Trump said on Tuesday during a joint press conference here with his Brazilian counterpart Jair Bolsonaro. Both Beijing and Washington are engaged in intense negotiations in the wake of a trade dispute, which would've originally seen the United States substantively increase tariffs on Chinese goods from March 1. Trump has since withheld the tariff increase as talks between the two sides have been promising. The two countries now hope to reach a final trade deal which will be signed during a late-April summit at Mar-a-Lago in Florida, the official added.

Source: Business Standard

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Uzbekistan, UAE explore partnership in trade, investment

Uzbekistan and the United Arab Emirates (UAE) have agreed to increase trade volume and investments in textile, renewable energy, agriculture and infrastructure at the third session of the joint economic committee of both the countries that was held recently in Tashkent. Both sides also agreed to cooperate in small and medium enterprises and manufacturing. The committee was chaired by Sultan Bin Saeed Al Mansouri, UAE minister of economy, and Ganiev Elyor Majidovich, deputy prime minister of Uzbekistan, according to UAE media reports. The UAE Government is looking forward to the session’s outcomes as an important factor to enhance economic partnerships between both sides, said Al Mansouri. The volume of non-oil trade exchange between the two countries in 2017 was worth $387 million, which, he said, does not go well with the aspirations and potential of both the countries. The UAE Minister also called on Uzbek companies to participate in Expo 2020. During the session, both sides agreed to implement mutually beneficial investments with the support of a joint venture company with a declared capital of $1 billion. The company is now being set up by the Abu Dhabi Fund for Development and the Uzbek Fund for Reconstruction and Development. (DS)

Source: Fibre2fashion

Unwise to force ASEAN to take sides

The Pacific region does not always seem quite pacific, as its waters are roiled by forces inimical to peace. While China and the Association of Southeast Asian Nations are trying to make the South China Sea a region of peace, friendship and cooperation, US media across the ocean do not want to see this happen, as they muddy the waters through speculation and by misleading the world. They do not mind launching open and covert attacks in order to disrupt the calm. On March 11, CNN reported that Singapore had bought F-35 fighter jets to target China. However, the Singaporean Ministry of Defense soon declared that the purchase was aimed only at strengthening national defense and not targeting any country. In a statement, the ministry said it did not align itself with any particular country, nor was it a treaty ally of the US. The US strategy for Asia – either the Asia-Pacific rebalancing plan proposed by former president Barack Obama or the Indo-Pacific strategy hawked by incumbent President Donald Trump – has the purpose of containing the rise of China. But the situation in the South China Sea will not go by the “roadmap” drawn by outside forces, and the US plot of rallying ASEAN against China will fall flat. First of all, this is because the US is unable to do what it hopes to do. As soon as Trump took office, he rushed to withdraw from the Trans-Pacific Partnership (TPP) agreement. This disappointed US allies and partners in the Asia-Pacific region. Last year, Trump was absent from both the ASEAN and the APEC (Asia-Pacific Economic Cooperation) meetings, which created doubts about the US giving up on its traditional sphere of influence in the Asia-Pacific region. Quite a number of people believe that the current US administration only pays lip service to the Indo-Pacific strategy. Since Trump focuses more on domestic affairs with slogans like “America First,” US interference in overseas affairs suffers. ASEAN members are very clear about it as all eggs cannot be put in the “basket of the US.” Of course, this doesn’t mean China should let its guard down. Second, relations between China and ASEAN have remained very close. The strategic partnership established in October 2003 has grown dynamic and mutually beneficial. Relations have been underpinned by security, economic cooperation and cultural exchanges, and are marching toward consolidation by 2030. The China-ASEAN Free Trade Area was established in early 2010, and the Protocol to Amend the Framework Agreement on Comprehensive Economic Cooperation between China and ASEAN fully took effect at the end of 2018. China is the largest trading partner of ASEAN. The bloc is China’s third-largest trading partner, the third-largest export market and the second-largest source of imports. Total two-way investment has crossed US$200 billion. Last, China understands and respects the three major issues that ASEAN members have paid close attention to, including supporting the organization’s unity and centrality, promoting trade and investment links, and maintaining a world order based on international law and rules. China has given a positive response to all of these. In terms of security and order, China has indicated that it will conclude the consultation process on the Code of Conduct in the South China Sea within three years. On free trade, Beijing is vigorously pushing ahead with negotiations on the Regional Comprehensive Economic Partnership, which it strives to finish by the end of this year. As far as connectivity is concerned, the China-led Belt and Road Initiative will attach more importance to the sustainability of projects and how local people benefit from those as well as the steady and long-term growth of the areas concerned. As a Chinese saying goes, “A just cause enjoys abundant support while an unjust cause finds little support.” An open Asia welcomes any peace-loving and friendly country with constructive ideas. But any attempt to disunite and disrupt Asia is doomed to fail. Malaysian Prime Minister Mahathir Mohamad once candidly said that if forced to take a side in rivalry between China and the US in the trade war, his country would prefer the economic largesse of Beijing. China, as a responsible developing country, has been committed to promoting peace, stability and prosperity in Asia, which has been noticed by other regional countries. Another Chinese saying goes, “As distance tests a horse’s strength, time reveals a person’s heart.” China’s sincerity and dedication have won more and more recognition from other Asian countries.

Source: Asia Times

UK publishes temporary tariff regime for no-deal Brexit

The United Kingdom will avoid imposing tariffs on most imported goods in case of a no-deal Brexit, though UK officials said prices of key European Union (EU) products will rise. The UK Government claimed its ‘balanced approach’ aims to offset price rise in the event of a no-deal departure from EU as a result of the falling pound and higher import costs. The UK Government also said any tariffs won’t apply to goods imported into Northern Ireland from Ireland. According to the Temporary Tariff Regime published recently, 87 per cent of goods by value will be eligible for tariff-free access, compared with 80 per cent currently. On textiles, the United Kingdom would apply 0.9 per cent, compared to the EU’s 8 per cent tariff. And footwear, on which the EU applies an 8.2 per cent tariff, would be tariff-free into the United Kingdom. Expressing satisfaction that businesses now have some clarity about the tariff schedule they will face under a no-deal Brexit, the British Retail Consortium said it remains particularly concerned about tariffs on certain clothes and textiles, a good proportion of which consumers were getting tariff-free from countries like Italy and Turkey. (DS)

Source: Fibre2Fashion

Techtextil: Leading international trade fair for technical textiles and nonwovens

From 14-17 May 2019, international exhibitors will be presenting the entire spectrum of technical textiles, functional apparel textiles and textile technologies at Techtextil in Frankfurt am Main. Texprocess, the leading trade fair for the garment manufacturing and textile processing industry, will take place at the same time as Techtextil.  Industry experts from all over the world meet every two years at Techtextil. The trade fair's recipe for success is the overarching character of the product groups and areas of application. At Techtextil 2017, 33,670 visitors from 104 countries came to find out about the new developments in technical textiles, functional apparel fabrics and nonwovens offered by 1477 exhibitors from 55 countries. This year you’ll find an extensive supporting programme of lectures, showcases and competitions, offering exhibitors and visitors an insight into the latest developments in the industry, as well as additional technical inspiration.

Events include:

Urban Living – City of the Future

According to the United Nations, nearly 70% of all people are expected to be living in metropolises and megacities by 2050. This poses new challenges for living and mobility concepts, as well as food supplies and health services provision. Functional apparel, with smart functions for example, could also play an even more important role in people’s everyday lives in the future. In collaboration with Creative #olland, the Dutch creative industries, Techtextil is dedicating an exhibition space to life in the city of the future with the Urban Living – City of the Future special event. The Techtextil and Texprocess exhibition area will be presenting examples of textile applications. In addition, an accompanying complementary programme will offer insights into the industry.

New: Techtextil Forum

The new Techtextil Forum provides an opportunity for an interactive exchange of ideas and information between exhibitors and trade visitors, as well as researchers and developers and users. Besides numerous expert lectures, the Forum programme includes discussion events from widely differing areas of application.

Techtextil Innovation Award 2019

For the 15th time, the show will be awarding the Techtextil Innovation Award for outstanding new and further developments in the field of technical textiles, nonwovens and functional apparel fabrics. Both exhibitors and non-exhibitors at Techtextil can take part in the competition. The winners will be selected by a jury made up of experts from around the world. A special exhibition of their work will be presented to visitors and media representatives during the trade fair. The awards will be presented at the inauguration ceremony on the trade fair’s first day.

Student competition for textile architecture

On the theme of Textile Structures for New Building, Techtextil will once again be giving awards for young ideas on building with textile-based materials. This will be judged in the following categories: macro-architecture, micro-architecture, material innovation, environment and ecology, as well as composites, hybrid structures and Urban Living – City of the Future, which is the theme of the upcoming special event. The official award ceremony for the winners will take place at Techtextil in Frankfurt am Main. The prize-winning ideas will also be presented in a special show at the fair.

Source: Innovation in Textiles

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Statistics office to launch ‘real time’ economic reports

Britain’s statisticians are to launch a series of “real time” economic indicators to provide government with a more up-to-date picture of activity which will potentially serve as an early warning sign of recession. The new figures will be published from mid-April, the Office for National Statistics said on Monday, and will put the agency in direct competition with private sector information providers. The ONS said it was early days for using government “big data” information in providing contemporary indicators of the economy, but that it would build up the metrics over time. Initially, it would use data from value added tax, ship movements and road traffic but other work at its data science campus would augment this information in future if it could be shown to be useful. The move is part of the ONS’s response to the 2016 Bean review of Britain’s economic statistics, which criticised the agency for being slow to use new forms of administrative data and recommended using potentially “transformational” big data to improve the timeliness of official economic data. “The longer a decision maker has to wait for the statistics, the less useful are they likely to be,” Charlie Bean, a member of the decision-making committee of the Office for Budget Responsibility, the country’s fiscal watchdog, said. The new data from ONS will be published at least a month before the first official estimates of gross domestic product and output in the services, manufacturing and construction sectors. They will compete directly with IHS Markit’s purchasing managers’ indices and surveys from the CBI employers’ organisation, among other data providers. But the ONS admitted the new data series are still far from perfect indicators of economic activity. The VAT data successfully gave an early warning of the 2008-09 recession, it said, but was less successful at identifying other ups and downs of the economy. Generally, its diffusion index was well correlated with subsequent activity, but there were quite a few outliers, which would have given false signals. Private sector data are also prone to outliers, such as in the summer of 2016 when many surveys dropped sharply, suggesting incorrectly that the Brexit vote had a large immediate effect on economic activity, the ONS admitted. The ONS’s shipping indicator compares the amount of time ships stay in port with the growth of imports, potentially capturing both UK spending patterns and international trade. It found there was a good correlation with imports but there were also instances where the signal “deviate[d] strongly” from subsequent official data. It found that analysis of truck movements “broadly follows that of headline official economic statistics” but, again, the ONS cautioned users about putting too much weight on the results at this early stage. The ONS said it would publish the results as a colour coded heat-map so that users would be able to tell when activity rates appeared to be hot, cold or

Source: Financial Times

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Textile exports stagnant despite rupee depreciation, cut in energy prices

Country’s overall exports showed 1.9pc growth and recorded at $15.1b in July to Feb 2018-19. Pakistan’s textile exports had not increased despite the fact that the government had depreciated the currency and reduced the prices of electricity and gas. The country’s textile exports had marginally enhanced by over one percent to $8.9 billion in eight months (July to February) of the ongoing fiscal year. Meanwhile, the country’s overall exports had also shown 1.9 percent growth and recorded at $15.1 billion in July to February period of the 2018-19, according to Pakistan Bureau of Statistics (PBS). The incumbent government had announced various incentives for the exports oriented sectors to boost the country’s exports. The government had depreciated the currency by around 25 percent as the dollar value had gone to Rs140. Similarly, the government had also announced to reduce the gas and electricity prices for the exports oriented sectors. However, the exports had not increased so far despite all these measures. “Impact of rupee depreciation would be visible in next five months,” said an official of the ministry of commerce last week. He further said that exports will pick up momentum and imports will record further steep decline in the months ahead. In textile sector, according to PBS, exports of knitwear had enhanced by 11.36 percent during July to February period of the year 2018-19 over a year ago. Similarly, exports of bed wear had also recorded an increase of 3.53 percent and exports of made-up articles had gone up by 2.12 percent. Meanwhile, exports of ready-made garments had also surged by 2.72 percent in first eight months of the current financial year. The PBS data showed that exports of cotton cloth had recorded a decline of 1.04 percent. Similarly, exports of raw cotton had tumbled by 72.49 percent. Exports of cotton yarn witnessed an increase of 13.53 percent. Meanwhile, exports of towels had declined by 1.29 percent. Meanwhile, the exports of food commodities had recorded increase of 1.08 percent during first eight months of the current fiscal year. In food commodities, exports of fruits recorded growth of 15.29 percent, vegetables 1.21 percent and oil seeds, nuts and kernels exports had gone up by 121.7 percent. The country’s exports have increased by 1.85 percent to $15.11 billion during July to February period of the current fiscal year from $14.84 billion of same period of last year. On the other hand, the imports have gone down by 6.13 percent to $36.64 billion in first eight months of the year 2018-19 from $39.03 billion of previous year. Therefore, the trade deficit was recorded at $21.52 billion in the period under review. The country spent $9.6 billion on the imports of petroleum group, 6.7 percent higher than a year ago. In the petroleum sector, the government imported petroleum products worth $4.2 billion and spent $3.04 million on petroleum crude. Similarly, the country imported liquefied natural gas (LNG) worth $2.2 million and liquefied petroleum gas (LPG) worth $182 million. The PBS data showed that country had spent $6 billion on importing machinery during July and February period of the ongoing fiscal year. The third biggest component was food commodities whose imports rose to $3.9 billion during first eight months of the ongoing financial year.

Source: The Nation

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Vietnam earns larger garment export in 2 months

Vietnam gained nearly 4.9 billion U.S. dollars from exporting garments and textiles in the first two months of this year, up 19 percent year-on-year, according to the country’s Ministry of Industry and Trade on Tuesday. Between January and February, products witnessing significant export growth included fabrics made from natural fibers (up 14 percent), fabrics from synthetic fibers (up 14 percent) and clothing (up 11 percent). The revenue surge was mainly attributable to strong market demand, with many orders already placed for the first six months of this year or even the whole year, said the ministry. By the end of this year, total export turnovers of the industry may reach 40 billion U.S. dollars, the Vietnam Textile and Apparel Association forecast. Vietnam, among the world’s five biggest exporters and producers of garments and textiles, posted garment and textile export turnovers of over 30.4 billion U.S. dollars in 2018, up 16.6 percent from 2017. However, Vietnam had to spend more than 12.9 billion U.S. dollars importing cloth last year, up 13.5 percent, the association said, noting that most of local cloth has yet to satisfy quality requirements of the country’s key garment export markets.

Source: Brink Wire

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