A scheme to augment the availability of export credit — at affordable terms and in sufficient volume — will soon be unveiled, said Commerce and Industry Minister Piyush Goyal. This scheme will include forex credit. The scheme, which aims to ease availability of export credit especially for small businesses, will likely lead to rates dropping to the sub-4 per cent category, said Goyal. He also warned against getting bogged down in numbers that may demotivate exporters. He said there is needless speculation on the government’s target of growing the economy to the $5-trillion level. “Do not get into calculations that you see on television... Oh if you are looking at the $5-trillion economy, the country will have to grow at 12 per cent. Today, it is growing at 6-7 per cent, do not get into that maths,” he said. Goyal was speaking at the meeting of the Board of Trade, which advises the Centre on policy measures connected to the Foreign Trade Policy and finds ways to boost exports. It includes officials of various states, industry representatives, and export promotion councils. Easy accessibility of export credit for small exporters has been a key concern for small businesses. The government has, hence, zeroed in on specific measures for the same, to boost outbound trade.
Credit woes
Export credit disbursal by public sector banks fell 45 per cent in FY19 to Rs 156 billion, down from Rs 283 billion a year before, shows the Reserve Bank of India (RBI) data. In June, Goyal had stated that exporters should be able to take more export credit in foreign currency. Subsequently, the ministry now aims to raise the share of foreign currency in total export credit much beyond the present level of 50 per cent, said a senior official. Therefore, it has asked the RBI to consider whether its foreign exchange reserves could be used for providing a line of credit for swap to good banks for this purpose, he added. This will result in cheaper foreign currency loans. The ministry has also discussed in detail the possibility of easing norms for banks, when it comes to lending export credit. The cap on export credit for banks — at 2 per cent of the total loans disbursed — may also be relaxed to boost export credit flows, the official added. Merchandise exports recovered slightly to post growth of 2.2 per cent in July, compared to a huge contraction of 9.7 per cent in June. This was despite outbound shipment of high foreign exchange earners, such as refinery products, engineering goods, and gems and jewellery falling.
Issues galore
The minister called for speedy redressal of key issues related to imports. These include unfair competition through dumping and subsidies, as well as import of sub-standard products due to lack of set standards, while enabling smooth import of key inputs and raw material. The Export Promotion Council has raised issues such as GST refunds, declining export credit, requirement of collateral, and inverted duty structure. Further, participating states on Thursday raised the matter of special packages for automobile, textiles, diamonds, and fisheries, given that these sectors are facing problems resulting in lay-offs, the commerce department said. Extension of the sunset clause with respect of SEZs, technology park for ancillary industries in the defence sector, and promotion of border trade from Northeastern states were also discussed.
Source: Business Standard
Union Finance Minister Nirmala Sitharaman assured the industry of possible measures to address sector-wise challenges, as well as a major push to infrastructure, in an informal meeting with industry captains from Tamil Nadu on Wednesday. The objective of the meeting was to get a sense of ground reality, amid the current economic slowdown, across various industrial sectors of the economy. K.M. Mammen, executive director-chairperson, MRF, N. Srinivasan, vice-chairman and MD, India Cements, T.T. Srinivasaraghavan, managing director, Sundaram Finance, Srivats Ram of Wheels India, Gopal Mahadevan of Ashok Leyland, R.G. Chandramogan of Hatson Agro, Arun Jain of Intellect Design Arena, Sunitha Reddy of Apollo Hospitals, P. Venketrama Raja of Ramco Group, Sanjay Jayavarthanavelu of LMW, T. Kannan of Thiagarajar Mills and Indian Bank MD Padmaja Chunduru, among others, attended the meet. According to sources, Mr. Srinivasan said cement was the barometer of economy like the housing stocks in the U.S. “After a long downturn, cement industry clocked strong double digit growth in FY19 with higher capacity utilisation. If the big ticket infra investments of ₹100 lakh crore over five years are implemented along with the housing schemes, the demand will improve,” he told the Minister in the meeting.
‘Thrust on exports’
“The textile industry now has huge excess capacity in the country. A major thrust needs to be given to exports, especially taking advantage of the trade war between the U.S. and China. On behalf of the industry, I requested the the Merchandise Export from India Scheme to be continued until March,” T. Kannan, chairman, Thiagarajar Mills, said. He has also suggested that Chinese investments should be attracted in the textile sector, which would help reduce the trade imbalance. “She [the Minister] was not in denial mode that there are challenges but also said that not all was doom and gloom. There are many sectors that are doing well,” said an official, who was part of the meeting.The automotive industry reiterated its demand for GST rate cuts to revive demand. “The fact that she has had a face-to-face interaction with industrialists from a wide range of sectors and is open to listening to the industry view is a positive development and augurs well for the future,” he added. The Minister also assured attendees that the views and suggestions from the industry leaders would be used as inputs by the task force that was looking into the issues. “She wanted to listen to views across the sectors and gave enough time to address our views. However, she did not commit any specific measures,” said another official who attended the meeting.
Source: The Hindu Business Line
India has a large market to offer, and it must drive a better bargain that it has done so far. Mired in a serious industrial downturn, India has done well to secure a review of its bilateral trade pact with the 10-member ASEAN, which came into force from January 2010. As the Economic Survey 2015-16 observes, the average effect of a free trade pact is to increase overall trade by 50 per cent in four years. However, some of the beneficial effects of this rise in economic activity are negated if the trade imbalance too increases sharply. As a NITI Aayog report points out, India’s trade deficit with ASEAN doubled from $5 billion in 2011 to $10 billion in 2017, whereas its overall trade rose over the same period from $50 billion to $70 billion. In the case of ASEAN, India eliminated tariffs on about 75 per cent of 12,000 tariff lines, excluding 1,300 tariff lines and keeping 1,800 in sensitive track. The NITI Aayog paper comes to the conclusion that as a result of this move, trade balance worsened in 13 out of 21 sectors, which include chemicals, plastics, minerals, leather, textiles, gems and jewellery, whereas it improved in sectors such as animal products, wood, paper, cement, vegetable fat and arms and ammunitions. The report attributes this trade imbalance to procedural issues in ASEAN countries, lax implementation of rules of origin (as a result of which Chinese goods were freely routed through third countries) and India’s exports being more responsive to income than price (or tariff) changes. When India goes back to the table with ASEAN, it must be clear about what it needs to give and take. India has a large market to offer, and it must drive a better bargain that it has done so far in forums such as RCEP (ASEAN plus six, including China). It should push for services access, plug loopholes in rules of origin, and not give in to unreasonable demands to pare sensitive sectors. As for RCEP talks, there has been growing unease over ever-rising imports from China. Out of a bilateral trade volume of about $95 billion, India’s trade deficit with China is $58 billion and growing. Faced with downturn issues and overcapacity as a result of US tariffs, China is more keen than ever to step up its exports into India, even as sections of Indian industry have expressed dismay over the prospect. The Centre needs to take stakeholders into confidence rather than shy away from RCEP talks one day, and later issue statements to the effect that the Chinese impact is being exaggerated. It is still possible to enter the RCEP grouping without compromising its domestic interests. It could try to convert a relationship of trade into one of investment by integrating into global value chains. Steps to draw FDI in employment-generating areas must be given priority. An exclusive focus on trade in these protectionist times might not yield much.
Source: The Hindu
Doubts expressed in the grouping on India’s future in RCEP as certain govt depts are opposing the pact. All members of the proposed Regional Comprehensive Economic Partnership (RCEP) trade agreement, including India, have committed to conclude the trade agreement in full by November, a senior Australian trade negotiator has said. His statement comes amid other members of the grouping asking India about its decision to remain in it while certain government departments in the country oppose it. Australia's lead negotiator on the RCEP James Baxter also stressed that any deal will necessarily include all negotiating countries after discussions are completed on each issue. Malaysian Prime Minister Mahathir Mohamad had in June said the deal can be negotiated without India “for the time being”. “In Bangkok, all ministers reiterated their commitment to conclude the negotiations in full by the time of the summit in November,” Baxter said. The RCEP secretariat had internally set up a date of November 4 to conclude the deal. The seventh RCEP ministerial meeting took place in Bangkok on September 8, which was attended by commerce minister Piyush Goyal. Goyal on Wednesday said sooner the trade agreement is concluded with adequate protection for domestic industry, the better it is for India and that not all industries are opposed to the pact. In July, India had said that the domestic industry is not convinced that RCEP will create a win-win situation for all.
INTENSE NEGOTIATIONS
The RCEP negotiations, in their final stages, are gathering pace and intense talks including 1.5 track dialogues are expected in the next few weeks. New Delhi will host the first such dialogue on Friday and technical discussions among government officials, experts and commentators of the RCEP members on September 14-15 wherein its proposed mechanism of ‘auto trigger and snapback’ to protect itself from sudden surges in imports from China would be taken up. However, sources said India has neither tabled any list of sensitive items on which it wants a mechanism to check import surges nor has it suggested any specific review mechanism for the trade agreement to analyse its impact at a later stage. New Delhi has sought a review of its FTAs with Asean, Korea and Japan, all of whom are RCEP members. “This is a new thing for India. It wants some assurance that imports from China will not flood its market. We have said we are happy to apply this on select sensitive products,” said an official of an RCEP member on the proposed import check methods. As per the official, considerable progress is being made on tariff concessions and the RCEP grouping has taken a decision on the crucial investment chapter that talks of investor state dispute settlement, a key concern of India.
Source: Economic Times
Electricity sector growth, however, slows to 4.75% in July from 8.19% in June; food inflation at a 14-month high. Industrial activity rebounded in July to 4.3% on a broad-based recovery across key sectors such as mining, manufacturing and construction, official data released on Thursday showed. In a separate release, data showed retail inflation rose in August to hit a 10-month high of 3.21% on quickening food price rises. Growth in the Index of Industrial Production (IIP) accelerated in July after a slump in June when it touched 1.17%. Within the index, the mining sector accelerated to 4.92% in July compared with 1.53% in June. The manufacturing sector, similarly, saw growth quicken to 4.15% from 0.23% over the same period. “The numbers provide some positive news for the output scenario because most of the IIP indicators show an uplift,” said D.K. Srivastava, chief policy adviser, EY India. “The only issue is to see if this will be sustained. This has come as a positive surprise because the general trend indicates a slowdown momentum.” Construction and infrastructure sector saw a turnaround in July, growing 2.13% after contracting 1.9% in the previous month. On the consumer side, the consumer durables sector reined in its contraction, contracting 2.7% in July compared with a steep contraction of 10.2% in the previous month. Consumer non-durables saw growth accelerating to 8.29% from 7.08%. The electricity sector, however, saw growth slowing in July to 4.75% from 8.19% in June. “Industrial output is likely to improve further in the coming month supported by higher festive and rural demand (with improvements in the monsoons),” Care Ratings said in a report.
Rising inflation
Growth in the Consumer Price Index (CPI) touched 3.21% in August, compared with 3.15% in July. Within the index, inflation in the food category touched a 14-month high of 2.96% in August, up from 2.33% in the previous month. “Inflation overall is only marginally higher over last month,” Mr. Srivastava said. “Only vegetable and food price inflation have gone up and that is due to the seasonal effect. This usually happens in monsoon months.” Inflation in the pan, tobacco and other intoxicants category quickened marginally to 5% in July from 4.89% in the previous month. Clothing and footwear category, however, saw inflation easing somewhat to 1.23% from 1.37% over the same period. The housing sector saw the rate of inflation remain flat at 4.84% in July, compared with 4.87% in June. The fuel and light sector saw a contraction in prices by 1.7% compared with a contraction of 0.29%. “Consumer price inflation is likely to inch up further in the coming months with the waning of the base effect and seasonal factors,” Care Ratings added. “Although the RBI is likely to continue with its monetary easing, we do not expect a rate cut at the next monetary policy. “The RBI is likely to look for the transmission of the previous rate cuts with the introduction of the new external benchmark before cutting rates further,” the ratings agency added. “For the remainder of the financial year, we expect policy rates to be cut by another 40 bps.”
Source: The Hindu
In the biggest ever joint operation by Directorate General of GST Intelligence (DGGI) and Directorate General of Revenue Intelligence (DRI) against exporters who were claiming refund of IGST fraudulently, pan-India searches were carried out at 336 different locations across the country yesterday. The operation covered entities in the states of Delhi, Haryana, Uttar Pradesh, Gujarat, Maharashtra, Tamil Nadu, West Bengal, Karnataka, Madhya Pradesh, Telangana, Punjab, Rajasthan, Himachal Pradesh, Uttarakhand and Chhattisgarh. The joint operation of the two premier intelligence agencies of Central Board of Indirect Taxes and Customs (CBIC), was a first of its kind in the history of CBIC which involved about 1200 officers from both the agencies. On the basis of data analytics, an intelligence developed in close coordination by both the agencies revealed that some exporters are exporting goods out of India on payment of tax (IGST), being done almost entirely out of the Input Tax Credit (ITC) availed on the basis of ineligible/ fake supplies. Further, such IGST payment was claimed as refund on export. Based on the data provided by the Directorate General of Analytics and Risk Management (DGARM), analysis was conducted wherein certain ‘red flag’ indicator filters were applied to Customs’ export data in conjunction with the corresponding GST data of the exporters. It was also noticed that there was no or negligible payment of tax through cash by the exporters as well as their suppliers. In few cases, even the tax paid through ITC was more than the ITC availed by these firms. On the basis of this intelligence, massive searches were conducted on the premises of exporters and their suppliers. The day long operation revealed that many of the entities spread across the length and breadth of the country were either non-existent or had given fictitious addresses. The preliminary examination of the records/documents resumed during the course of the joint operation along with the statements recorded of various persons indicated that an Input Tax Credit of more than Rs. 470 Crore (Invoice value of approx. Rs 3500 Crores) is bogus/ fake which has been further utilized by the exporters for effecting exports on payment of IGST through ITC and claiming consequential cash refund of the same. Besides, an IGST refund amount of around Rs 450 crore is under examination. Further, some live export consignments of these exporters have been intercepted at Vadodara Rail Container Terminal, Mundra port and Nhava Sheva port for examination in order to ascertain mis-declaration. Further investigations in the matter are under progress.
Source: Press Information Bureau
Demonetisation and hastily implemented GST (goods and services tax) are the key reasons behind the ongoing slowdown, former Prime Minister Manmohan Singh said. The GST was introduced at a time when the economy was already recovering from the negative effects of the demonetisation and this hit the economy, the eminent economist said, adding it would take some years for the sluggish economy to revive. The ongoing economic weakness is expected to be a result of lack of liquidity in the system, Manmohan Singh told Hindi daily Dainik Bhaskar in an interview. Adding, former finance minister said that the government needs to address both structural and cyclical problems so that the economy gets back to a high rate of growth in 3 to 4 years. Suggesting ways to improve the situation, former prime minister said that the Modi government needs to rationalise the GST even if it results in a revenue loss in the near term. Boosting consumption in the rural sector and reviving the agriculture should be high on the agenda of the government, he added. There is a need to introduce measures to increase liquidity in the system, he noted. The key job generating sectors including automobile, textile and electronics should be boosted and easy loans should be handed over for the purpose especially to the small businesses. On bank merger, he said that even as it may strengthen the banking sector but questions can be raised on the timing of the move. Meanwhile, different industry bodies have come up with a demand for stimulus from the government so as to boost low demand. Finance Minister Nirmala Sitharaman has even announced a slew of measures over the past few weeks with an aim to improve the investor sentiment and push economic growth.
Source: Financial Express
In addition, with the ongoing trade tensions of China with the US, and the rising costs of labour, the manufacturing activity is poised to exit China, in the process vacating more space for countries such as India, Bangladesh and Vietnam. India and its textiles industry have a long and storied history. However, in the recent past, the country has fallen behind some of its peers, especially when it comes to catering to the global export markets. Held back by lower competitiveness (owing to higher production costs) and higher import duties in the destination markets (compared to its peers), Indian garment exports have been steadily losing ground to countries such as Bangladesh and Vietnam. Consider the following: In the year 2000, both Bangladesh and Vietnam had a smaller share of the global garment export market, at about 1% and 2%, respectively. India’s share stood at about 3%, whilst China had already garnered a share of 18% by that time. Fast forward to 2017, and we find that India’s share has increased marginally to 4% in about two decades. On the other hand, the share of Bangladesh and Vietnam has surged to 6.5% and 5.9%, respectively. China’s share in 2017 stood at 34.9%, down from 36.7% in 2010. In addition, with the ongoing trade tensions of China with the US, and the rising costs of labour, the manufacturing activity is poised to exit China, in the process vacating more space for countries such as India, Bangladesh and Vietnam. However, the evidence presented above seems to point towards Bangladesh and Vietnam capturing the lion’s share, as suitable changes in India’s policy framework in the textiles sector have not been made.
Increasing India’s share in the global textiles market
First, we must examine what is holding India back from competing in the international markets. Globally, the demand is moving towards man-made fibres, rather than cotton. In India, cotton still dominates, indicating that the country is not moving in conformity with the global demand, and this is hampering the country’s export potential. Whilst India is the largest producer and exporter of cotton yarn and the second largest producer of man-made fibres, the current inverted duty structure on man-made fibres is hampering its adoption. In addition, technology adoption is another constraint. For example, according to the data made available to the NITI Aayog, India currently has 23.7 lakh shuttle looms, as compared to 6.5 lakh in China. However, in China, there are 6.3 lakh shuttle-less looms, compared to 1.4 lakh in India (shuttle-less looms are up to six times more productive than shuttle looms). This indicates the huge productivity gap India must bridge to become competitive in the global markets. The final constraint is that of scale. According to some estimates, approximately 95% of the fabric produced in India is produced in small-scale industries. And combined with power cross-subsidisation and high real rates of interest, an inherent cost disadvantage has developed in the Indian garment products, making them more expensive.
So, what does India need to do?
Interventions in the weaving/knitting and processing stage of the value chain have the potential to offset India’s cost disadvantage in the international markets. Concomitantly, the man-made fibre industry can be made more competitive through removing the inverted duty structure (where inputs are taxed at a higher rate than the final product). This will free up substantial working capital and reduce the cost of raw materials. Similarly, with the World Trade Organisation (WTO) norms on the horison, the Merchandise Export from India Scheme (MEIS) may need to be revamped so as to be WTO-compliant. In addition, a time-bound plan for a transition from shuttle looms to shuttle-less looms must be urgently drawn up to boost productivity in the country. Enabling size and scale is perhaps the most important intervention that can be made. Both Vietnam and Bangladesh offer common facilities such as effluent treatment plants, water treatment plants, steady water supply, and low-cost power in their textile industrial parks. This is certainly not a novel idea in India, as the Brandix India Apparel City (BIAC) in Visakhapatnam, Andhra Pradesh, is doing exactly this. In the BIAC, an integrated ecosystem with plug-and-play facilities is provided to the manufacturers, who are also able to avail fiscal incentives under the Special Economic Zone (SEZ) Policy and incentives offered by the state government. This model should be studied for replication in states that have well-developed transport infrastructure, availability of water, and low-cost labour. Recently, a committee chaired by Baba Kalyani on revitalising SEZs submitted its report to the government. Central to the findings of this report is that SEZs need to be reoriented into Employment and Economic Enclaves (3Es). Investments should be directed towards activities that boost economic activity and job creation, and not just exports. This would tie-in well with the impending WTO norms as well. The integrated textile parks should be regulated in line with the recommendations of this committee to help ensure that size and scale is achieved. According to the ministry of textiles, nearly 45 million workers are employed directly in this sector. Considering the labour-intensive nature of this industry, accelerated growth is likely to lead to accelerated employment generation as well. An econometric exercise revealed that the employment elasticity of this sector is 0.37. This means that a 1% increase in value-added growth leads to a 0.37% increase in jobs. Therefore, if we assume that as a result of all these interventions, the textiles sector is able to grow at 10% per annum, we should see job growth of 3.7% per annum. This is not unachievable by any means. For example, between 2000-01 and 2004-05, employment grew at an average rate of 5.7% as per the RBI KLEMS database. A 3.7% employment growth rate (10% value-added growth) would imply the creation of 8.9 million jobs over the next five years, at an average of 1.8 million jobs per year. Concerted policy efforts are needed to realise the job-creation potential of the textiles sector. Healthy job creation in this sector also provides an avenue for pulling labour out of the agricultural sector, thereby raising the incomes of both who remain in agriculture and those who exit. The central government should work with state governments with identified comparative advantage to develop plug-and-play facilities. These facilities should provide common resources, ease of doing business in its true sense, along with a well-developed link infrastructure. Only then will India be able to reap the benefits of this industry.
Source: Financial Express
RIL, pioneer of recycling of PET bottles in India, is processing over two billion post-consumer (used) PET bottles every year and plans to scale it up to six billion in two years, he said. Reliance Industries Ltd (RIL), the world’s largest integrated polyester yarn and fibre producer, has announced that it has taken a big stride to make ‘sustainable clothing’ affordable and accessible, taking a leaf from the success story of the group’s telecom venture Jio in getting volumes with competitive pricing, a top RIL official said. “For us, sustainability is not a fashionable word, we are making fashion out of it and it is a sustainable business,” said Vipul Shah, chief operating officer of petrochemicals division at RIL. “It is time we look at sustainability beyond corporate social responsibility.” RIL, pioneer of recycling of PET bottles in India, is processing over two billion post-consumer (used) PET bottles every year and plans to scale it up to six billion in two years, he said. RIL’s initiative for recycling of used waste PET bottle is a classic example of sustainability and circularity as it is the only company in the world that has created a complete circle from creation of PET Resin for making bottles, collection of discarded PET bottles, converting them to Recron Green Gold, eco-friendly polyester fibres for use by downstream textile value chain that converts the fibres in to high-value sleep products and R|Elan™ based fashion apparel. RIL has pursued the collection of used PET bottles and recycling it to fibre in sustainable manner with the key objective of social responsibility towards the society and nation, for over two decades. The grey fibre produced using used PET bottles are branded as Recron GreenGold and the dope dyed polyester staple fiber are branded as Recron Green Gold EcoD. These eco-friendly fibres also provides the power of sustainability to Reliance’s next generation fabric range branded R|Elan Fabric 2.0. Apart from strengthening internal initiatives in sustainability RIL is also working closely with entire textile industry, through its Hub Excellence Programme encompassing yarn, textile manufacturers, leading domestic and international brands – retailers and fashion houses. RIL also partners with likeminded leading yarn, textile and apparel manufactures to develop a symbiotic relationship. Global brands are making everything from swimwear to winter wear to backpacks with recycled material. India can catch up soon if it looks at its waste as a resource, RIL said.
Source: Zee News
RBI had earlier this month made it mandatory for banks to link all their fresh retail loans to an external benchmark, effective October 1. Finance Secretary Rajiv Kumar will hold a review meeting with public sector banks (PSBs) on September 19 to discuss issues including following up on transmission of monetary policy rates. The government is set to ask PSBs to expeditiously introduce repo-rate linked products “to step up affordable credit”, according to an agenda item of the meeting. The Reserve Bank of India (RBI) had earlier this month made it mandatory for banks to link all their fresh retail loans to an external benchmark, effective October 1 — the central bank’s repo rate being one such benchmark. Following the move, banks such as Punjab National Bank and Allahabad Bank announced linking their retail loans with the RBI’s repo rate. The finance ministry will discuss ways in which PSBs can offer doorstep banking facility. Some PSBs offer doorstep banking for citizens over 70 years of age and differently-abled customers. Additionally, the ministry will discuss ways in which banks can help customers in tracking online loan applications for retail, MSME (micro, small and medium enterprise), housing, and vehicle loans, among others. The finance ministry will ask the top management of banks to closely monitor “loans to MSMEs, small traders, SHG (self-help groups) and micro finance Institutions borrowers and collaboration of banks with non-banking financial companies for co-origination of loans.” The Centre will also review the announcement made by Finance Minister Nirmala Sitharaman last month to mandate release of security documents within 15 days of loan closure. It is intended to help customers, especially in the corporate sector, who face difficulties in applying for various clearances due to pending loan repayment. The ministry will take a stock of pooled assets of NBFCs or housing finance companies purchased by PSBs, following a one-time credit guarantee of up to Rs 1 trillion announced in the Budget 2019-20.
Source: Business Standard
The 16th edition of the Yarnex – India International Yarn Exhibition and the 9th edition of the TexIndia – Textile Sourcing Fair began here on Thursday. The three-day textile fair, which is open only to traders, saw the participation of over 130 Indian and overseas companies displaying their products, according to a press release. Both the exhibitions saw participants from Mumbai, Surat, Ludhiana, Amritsar and the western districts in Tamil Nadu.
Source: The Hindu
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1022.72 |
USD/Ton |
0.62% |
9/11/2019 |
|
VSF |
1476.09 |
USD/Ton |
-2.33% |
9/11/2019 |
|
ASF |
2157.20 |
USD/Ton |
0% |
9/11/2019 |
|
Polyester POY |
1090.90 |
USD/Ton |
0.52% |
9/11/2019 |
|
Nylon FDY |
2305.51 |
USD/Ton |
0% |
9/11/2019 |
|
40D Spandex |
4076.82 |
USD/Ton |
0% |
9/11/2019 |
|
Nylon POY |
5313.92 |
USD/Ton |
0% |
9/11/2019 |
|
Acrylic Top 3D |
1293.34 |
USD/Ton |
0% |
9/11/2019 |
|
Polyester FDY |
2178.99 |
USD/Ton |
0% |
9/11/2019 |
|
Nylon DTY |
2333.63 |
USD/Ton |
1.84% |
9/11/2019 |
|
Viscose Long Filament |
1223.05 |
USD/Ton |
0% |
9/11/2019 |
|
Polyester DTY |
2544.50 |
USD/Ton |
0% |
9/11/2019 |
|
30S Spun Rayon Yarn |
2143.85 |
USD/Ton |
0% |
9/11/2019 |
|
32S Polyester Yarn |
1637.76 |
USD/Ton |
0.43% |
9/11/2019 |
|
45S T/C Yarn |
2410.95 |
USD/Ton |
0% |
9/11/2019 |
|
40S Rayon Yarn |
2263.34 |
USD/Ton |
0% |
9/11/2019 |
|
T/R Yarn 65/35 32S |
2432.03 |
USD/Ton |
0% |
9/11/2019 |
|
45S Polyester Yarn |
2010.29 |
USD/Ton |
0% |
9/11/2019 |
|
T/C Yarn 65/35 32S |
1799.42 |
USD/Ton |
0.79% |
9/11/2019 |
|
10S Denim Fabric |
1.26 |
USD/Meter |
-0.33% |
9/11/2019 |
|
32S Twill Fabric |
0.70 |
USD/Meter |
-0.99% |
9/11/2019 |
|
40S Combed Poplin |
0.97 |
USD/Meter |
-0.43% |
9/11/2019 |
|
30S Rayon Fabric |
0.57 |
USD/Meter |
-0.25% |
9/11/2019 |
|
45S T/C Fabric |
0.66 |
USD/Meter |
0% |
9/11/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14058USD dtd. 11/09/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Following the ECB action the euro dropped below 1.10 and was trading near the lowest level against the dollar in more than two years. The European Central Bank’s move to cut interest rates and restart a larger stimulus program drew fast reaction from the White House on Thursday, with President Donald Trump saying the ECB was undercutting the value of its currency and “hurting US exports”. “European Central Bank, acting quickly, Cuts Rates 10 Basis Points. They are trying, and succeeding, in depreciating the Euro against the VERY strong Dollar, hurting US exports.... And the Fed sits, and sits, and sits. They get paid to borrow money, while we are paying interest!” Trump tweeted about half an hour after the ECB’s policy announcement. Though a rate cut of a quarter of a percentage point was widely expected before the ECB meeting, the extent of the move in Frankfurt makes the case more compelling, adding downward pressure on US inflation and feeding through to exchange rates that influence the price of US exports — the issue highlighted by Trump. Following the ECB action the euro dropped below 1.10 and was trading near the lowest level against the dollar in more than two years.
Source: Reuters
Rice said a global recession was not in the fund's baseline. The global lender will release new economic forecasts next month, he said, adding, "Let's not get ahead of ourselves. Let’s wait and see. Tariffs imposed by the United States and China could lower the level of global economic output by 0.8% in 2020 and trigger additional losses in future years, the International Monetary Fund said on Thursday. IMF spokesman Gerry Rice said global trade tensions were beginning to weigh down dynamism in the global economy that is already facing difficult challenges, including a weakening of manufacturing activity not seen since the global financial crisis of 2007-2008. Rice said a global recession was not in the fund's baseline. The global lender will release new economic forecasts next month, he said, adding, "Let's not get ahead of ourselves. Let's wait and see."
Source: Reuters
The influx of imported textile products has not only caused a widening of the trade deficit but also the closure of local textile factories. According to the Indonesian Textile Association (API), as many as nine textile factories have been closed and at least 2,000 workers have been dismissed because garment producers prefer to buy imported fabrics. API’s chairman Ade Sudrajat Usman said that the influx of the imported textile products mostly affected the medium processing industry involved in spinning mills, weaving and knitted fabric production as they have to pay a 5 percent import duty on their raw materials such as thread and filament, while imported fabrics can enter Indonesia without any import duty. As the result, imported fabrics are far cheaper than domestically produced ones. "This is a red alert for the textile industry," he said at a press conference in in Jakarta on Monday. Indonesian Association of Synthetic Fiber Producers (APSyFI) secretary-general Redma Gita Wirawasta said that fabric imports increased threefold from 300,000 tons in 2008 to 900,000 tons in 2018, while garment exports stagnated at about 550 million tons over the same period. The local textile producers said that they were unable to compete because the foreign textile producers carried out dumping practices in the Indonesian market. In order to protect the local textile industry, API and APSyFI plan to apply to the Indonesian Trade Safeguard Committee (KPPI) for a safeguard policy because the imports have severely injured the local industries. Ade said the safeguard in the form of an extra import duty would be temporarily established for 200 days while an investigation is underway. Once approved, the safeguard policy would be implemented for three years. "We believe that the surge of imports has caused injury, so we are going to submit our findings about the dumping practices," Redma said. He said he hoped the government would impose safeguard import duties from the upstream to the downstream industries, such as 2.5 percent on fiber, 5 percent to 6 percent on yarn, 7 percent on fabric and between 15 and 18 percent on garments. Redma said that the safeguard import duties were needed to protect the local upstream and downstream textile industries from cheap imported products. In addition, the local textile industries also want the government to stop issuing permits to import textile-related products except those for export-oriented industries located in industrial bonded zones. Another demand is for the revision of the Trade Ministerial Regulation No. 64/2017, which allows general importers to import fabrics, yarns and fibers. The Indonesian textile products are not as competitive as those from other countries because of the long lead time, the total amount of time required for completing a product beginning from the date of receiving the order to the shipment of the goods to customers. The CEO of Busana Apparel Group, Marimutu Maniwanen, said that the lead time of the Indonesian textile industry can be 120 days, while in other countries such as Vietnam and Bangladesh it is only about 60 days. The lead time is too long because the majority of raw materials for the textile industry in Indonesia are still imported. "If we import raw materials, it is difficult to reduce the lead time. At most, it can be reduced to 90 days. To reach 60 days, we must procure all raw materials from within the country," he said. He said that labor regulations, the price of energy and high interest rates also contributed to the undesirable investing climate in the country. Redma said in July that last year that the factory used of fabrics was at 61.5 percent of installed capacity, fiber at 67.7 percent, yarn at 76.5 percent and garments at 86.9 percent. The factory use is low because of the lack of orders.
Source: Jakarta Post
