The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 3 FEB, 2015

NATIONAL

INTERNATIONAL

INTERNATIONAL TEXTILE RAW MATERIAL PRICES 2/2/2015

Textile Raw Material Price 2015-02-02

Item

Price

Unit

Fluctuation

Compared to previous Day

Date

PSF

1122.89

US$/Ton

0%

2015-02-02

VSF

1825.10

US$/Ton

0%

2015-02-02

ASF

2584.76

US$/Ton

0%

2015-02-02

Polyester POY

1164.96

US$/Ton

0%

2015-02-02

Nylon FDY

2993.30

US$/Ton

-1.6%

2015-02-02

40D Spandex

7442.80

US$/Ton

0%

2015-02-02

Nylon DTY

3284.54

US$/Ton

-0.98%

2015-02-02

Viscose Long Filament

5695.36

US$/Ton

0%

2015-02-02

Polyester DTY

1440.02

US$/Ton

0%

2015-02-02

Nylon POY

2685.88

US$/Ton

-1.19%

2015-02-02

Acrylic Top 3D

2734.42

US$/Ton

0%

2015-02-02

Polyester FDY

1383.39

US$/Ton

0%

2015-02-02

30S Spun Rayon Yarn

2524.08

US$/Ton

0%

2015-02-02

32S Polyester Yarn

1828.34

US$/Ton

0%

2015-02-02

45S T/C Yarn

2863.86

US$/Ton

0%

2015-02-02

45S Polyester Yarn

1990.14

US$/Ton

0%

2015-02-02

T/C Yarn 65/35 32S

2475.54

US$/Ton

0%

2015-02-02

40S Rayon Yarn

2685.88

US$/Ton

0%

2015-02-02

T/R Yarn 65/35 32S

2588.80

US$/Ton

0%

2015-02-02

10S Denim Fabric

1.58

US$/Meter

0%

2015-02-02

32S Twill Fabric

0.99

US$/Meter

0%

2015-02-02

40S Combed Poplin

1.34

US$/Meter

0%

2015-02-02

30S Rayon Fabric

0.72

US$/Meter

0%

2015-02-02

45S T/C Fabric

0.78

US$/Meter

0%

2015-02-02

SOURCE: Global Textiles

Note: The above prices are Chinese Price (1US$=0.16180 CNY dtd. 02/02/2015)

Entrepreneurs to submit report on financial stress faced by textile units

Textile entrepreneurs from Tirupur region is gearing up to submit a report to the Union Finance Ministry on the financial stresses faced by the textile units and on how value-addition could be effectively done to cotton, after carrying out a study with the help of professional agency.

Special scheme

The idea of coming out with the report on the issues was consequent to the recent recommendations of Union Textiles Ministry to the Department of Financial Services under the Union Finance Ministry to prepare a special scheme for extension of low interest working capital loan for procurement of cotton by the textile units.

“We will be suggesting to the Finance Ministry the findings of the study which include case studies of various mills that faced problems,” D. Prabhu, secretary of Texpreneurs Forum formed of textile entrepreneurs, which is coordinating the compilation of the report, told The Hindu .

The study to be conducted by the entrepreneurs would focus on the stresses encountered by the textile units due to extreme fluctuations happened in cotton prices since 2010 and also the difficulties faced in obtaining the working capital credits at lower interests.

Lending

“The present method of lending by banks is based significantly on external credit ratings of the customer resulting in undesirable situation whereby firms that are weak on the finances due to external factors are charged with exorbitant interest rates. “If the situation need to change, the Government in the scheme planned should classify the working capital of the mills in line with the agricultural advances and thereby, promote the textile units to hold huge cotton inventory,” S. Dhananjayan, chartered accountant and consultant to Texpreneurs Forum, pointed out. The textile sector industrialists too feel the need for a time bound interest subvention mechanism for a defined period of three to five years that could provide interest refinance on working capital finances for procurement of cotton.

SOURCE: The Hindu

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China in mind, draft textile policy talks of mega hubs, disinvestment & FDI

The Suresh Halwankar Committee formed to review the existing textile policy of Maharashtra has recommended disinvestment of sick cooperative mills and development of five mega-textile hubs, while stressing the need for foreign direct investment (FDI) to take global players head on. The draft of the new policy which was submitted to chief minister Devendra Fadnavis on January 30 talks of adopting a 'Fibre to Fashion' approach to turn around the textile sector, which was once blooming in the state.

The Committee has suggested setting up of mega composite hubs which will offer spinning, weaving, processing, designing and garmenting units to cut down on cost and time. The area should have common effluent treatment plants and water recycling plants to minimise damage to the environment. It policy also seeks to reduce power tariff for the sector. The draft policy will now be sent to the cabinet for approval. "We are losing out the market to China mainly because it takes nine months for our cotton to become a garment. There it takes just two months because of full-fledged textile hubs," said Halwankar, who has recommended establishment of mega-textile hubs spread over 1,000 hectares as against allowing garment factories to come up in a scattered manner. "Amravati must be developed as spinning, Nagpur as knitting, Solapur teri-towel and Ichalkaranji for suiting-shirting-denim mega composite textile hubs with complete set-up of related facilities including world-class designing and skill development centres. Three process parks at Ichalkaranji-Solapur-Malegaon is must," outlines the proposed policy which is drafted in accordance with the central government's "Vision, strategy and action plan for Indian Textile sector 2020-2025" and after studying policies of eight states.

At present, over 30 lakh people are directly employed by the garment industry and its ancillary units provide jobs to about 2 crore people. This makes the sector second only agriculture in terms employment generation. Maharashtra is India's second largest cotton producer – 81 lakh bales from over 38.7 hectare. Of this, only 25 lakh bales are consumed by the spinning mills in the state. According to the Committee's report, Maharashtra will need over 50 lakh spindles to utilise all the cotton grown in the state. To achieve this, the sector will need an investment of about Rs50,000 crore. "Since the state earns over Rs1,000 crore revenue from selling yarn worth 40,000 crore, increasing spinning capacity would help generating more revenue." Halwankar has also proposed handing over of permanently sick cooperative cotton mills to the private sector and the government should implement a disinvestment scheme to facilitate such changes. The committee has also asked the government to project 'Maharashtra beyond Mumbai' at international stage to attract FDI in textile sector. Halwankar report will kill cooperative sector: Former textile minister

Congress MLA and former textile minister slammed the report, saying it would kill the cooperative sector. "Giving away sick cooperative textile mills to private sector will kill the cooperative sector which has played a major role in rural development. The government must take action against erring officials of cooperative mills. Halwankar has proposed reduced power tariff while it is the BJP government that discontinued power subsidy to power looms."

Recommendations of Halwankar Committee

  • One form, one window to grant all permissions to set up industry
  • Reduced power tariff for textile industry like other states
  • NOC from pollution board not required for spinning, weaving or knitting mills
  • 0.5% cess on cotton purchase of cotton for insurance of workers
  • Women to be allowed to work in night shifts to improve production
  • 75% subsidy for "design-cum- sampling centres"
  • 25% subsidy for setting up skill development centre affiliated to all big industries for offering relevant programmes with the help of IITs.
  • 25% subsidy on conversion of shuttle loom to semi-automatic looms
  • 10% subsidy instead of 5% for technical textiles with a cap of Rs50 lakh
  • 30% subsidy for upgradation in B and C zone of the state, 40% in D zone

SOURCE: The DNA India

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Tirupur knitwear exports up 19% in 9 months

There is a mood of optimism among exporters in the Tirupur knitwear cluster. With exports clocking the Rs. 15,000-crore mark in the first nine months of the current fiscal, up 19 per cent in rupee terms and around 18 per cent in dollar terms compared to the corresponding period of the previous year, exporters are confident of achieving Rs. 21,000 crore in 2014-15.

“If the same growth trend continues, we will be able to double exports in three years from Rs. 18,000 crore in 2013-14 to Rs. 36,000 crore in 2016-17,” said A Sakthivel, President, Tirupur Exporters’ Association.  The association has, in its pre-budget memorandum, appealed to the Union Finance Minister Arun Jaitley for addressing specific issues such as 3 per cent interest subvention on Rupee Export Credit, import of speciality fabrics without payment of duty under Export Performance Certificate Scheme — in which a maximum of 3 per cent of the licence may be allowed for import of fabrics without restricting it to 1,000 metres — and for expediting the FTAs with the EU and Canada.

SOURCE: The Hindu Business Line

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Four sick textile mills to be shifted to Amravati

In a move that may give the much-needed push to Vidarbha's cotton economy, four sick textile units - three from Mumbai and one from Solapur - will be shifted to Nandgaonpeth textile zone in Amravati.The Nitin Gadkari-Devendra Fadnavis duo has once again come to play for the region's benefit. Lack of policy and failure of the region's political leaders till now had led to a situation where more than 80% of cotton produced in Vidarbha was shipped out for processing. This missing link in the cotton chain - processing and value addition - is expected to make a huge difference to the region where cotton growers were driven to commit suicide because of poor returns in the last two decades.

Announcing the decision after a high-level meeting in Mumbai on Friday, Chief Minister Devendra Fadnavis made it clear that he was proposing to shift nine more such sick units controlled by National Textile Corporation (NTC) to Vidarbha so that the cotton grown in the region is processed here instead of being shipped out. On Saturday, addressing Youth Empowerment convention organized by BJP MLC Anil Sole in the city, Fadnavis reiterated that henceforth no textile mill would be allowed to close down. It would be revived through relocation of the unit as well as the employees. A high-level committee comprising officials of state textile, labour departments, NTC and Brihanmumbai Municipal Corporation has been set up to facilitate relocation of the units.

The four units which are to be relocated to Nandgaonpeth textile zone are Mumbai's Indu Mill, Poddar Mill and Tata Textiles and Barshi Textile Millsof Solapur. The Nandgaonpeth textile zone has been allocated 40 hectares land and is located 17km from Amravati on National Highway 6. Amravati MLA Dr unil Deshmukh had pursued the matter last month as soon as he learnt that Union textile minister Santosh Gangwar as keen on relocating sick textile mills from Mumbai. He rushed to Delhi on December 7 and took help of Union transport minister Nitin Gadkari.  They convinced Gangwar that relocation of the sick units to Amravati would serve a better purpose in the farmer suicide zone.

According to Deshmukh, around Rs2000 crore would be pumped in for reviving and relocating the four units to Nandgaonpeth. More than 5,000 jobs are expected to be created in the textile zone. "During my earlier term as MLA, I was instrumental in getting Mumbai's Finlay Mills to Achalpur. That unit is doing very well and expected to earn Rs12 crore profit this fiscal," said an enthused Deshmukh. "I am sure that the four mills would also turn the corner once they are relocated here," he added.

Mill Milestones

• Cotton grown in Vidarbha but no processing units

• Relocation of four mills to Nandgaonpeth, in heart of cotton belt, to give big boost to cotton economy

• Rs2000 to be invested in relocation and revival of these sick units

• Five years ago Finlay Mills of Mumbai relocated to Achalpur is now making profits

• Fadnavis proposal to relocate nine more sick textile mills from Mumbai region to Vidarbha

• Gadkari had lent support while MLA Sunil Deshmukh pursued the move

SOURCE: The Times of India

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Manufacturing PMI at three-month low in Jan

In January, India’s manufacturing activities expanded at a three-month-low pace, as orders moderated, showed the widely-tracked HSBC purchasing managers' index (PMI) on Monday. This was after the country’s manufacturing sector clocked a two-year-high rate of growth in December. Meanwhile, a day before the Reserve Bank of India’s review of its monetary policy, the rate of inflation eased further — according to the PMI survey — raising expectations the central might advance a cut in the policy rate. PMI declined to 52.9 points in January, compared with 54.5 in December. The index had stood at 53.3 points in November. A reading above 50 points shows expansion while one below that implies contraction.

Markit Economics, which compiles the PMI data, however, down-played the slower rate of growth in manufacturing activities. “Despite falling from December’s two-year-high level, the headline index remained consistent, with a solid improvement in business conditions in January,” it said. Also, the expansion in India’s manufacturing sector during the month was not as slow as some other emerging-market peers. China’s, for example, saw contraction for a second straight month. Manufacturing PMI for that country stood at 49.7 in January, data showed.

Pranjul Bhandari, HSBC’s chief India economist, echoed this view: “The manufacturing activity continued to signal improvement in January, though the rate of growth slipped to a three-month low. This could be partly attributed to consolidation after two months of impressive uptick,” he said. He said new orders, both from domestic and international sources, continued to grow, though at a slower pace than the previous month.

Markit Economics said new orders were the strongest in the consumer goods sector. It was here that the PMI data had not matched with the official data on the index of industrial production (IIP). In the official data, consumer goods remained a drag, particularly the durables segment. For instance, consumer durables contracted 14.5 per cent in November last year, against a fall of 21.7 per cent a year ago. The durables also declined 15.9 per cent in the first eight months of 2014-15, against 12.6 per cent a year earlier

The growth rate for new export business moderated in January, after having accelerated to the highest since April 2011 the previous month. But the overall pace of expansion was, nonetheless, solid and stronger than the historical average, Markit Economics said. However, official data showed exports contracted in December as well, after a fall in October. Growth of output and new business continued to have little impact on employment in January, as work force numbers rose only marginally during the month. “Concurrently, backlogs of work rose at the fastest rate in a year, with some companies commenting on capacity pressures being applied by rising order book volumes,” Markit Economics said.

The rate of input inflation slowed to the weakest since April 2009, helped by lower prices paid for metals, chemicals, plastics and energy. As a result, output charges rose only fractionally during the month. “On the inflation front, growth in input and output prices moderated further due to cheaper commodity prices,” Bhandari said. This augurs well ahead of RBI’s policy review on Tuesday. It remains to be seen if the central bank would lower the interest rate on Tuesday, but there is a wide expectations that it might do so in the first half of the current calendar year. “Sluggish growth and falling inflation further reinforce our view that RBI should deliver rate cuts upfront. We expect the repo rate to be lowered by 75 basis points in the first half of 2015,” Bhandari said.

SOURCE: The Business Standard

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Make in Madhya Pradesh: CM Shivraj Singh Chouhan to US

Madhya Pradesh Chief Minister Shivraj Singh Chouhan has invited Indian diaspora and the American business community here to share their expertise and capabilities with his state in areas like IT, agriculture, business and social sectors.  Chouhan invited industries and entrepreneurs to 'Make in Madhya Pradesh', drawing upon Prime Minister Narendra Modi's 'Make in India' campaign. Chouhan addressed hundreds of Indian-Americans and key American lawmakers at the 'Friends of Madhya Pradesh Conclave' at the prestigious Lincoln Centre here yesterday. 

The Madhya Pradesh Chief Minister is leading a delegation that includes his minister for Commerce, Industries and Employment Yashodhara Raje Scindia and senior state government officials on a five-day visit to the US. Welcomed by a rousing reception, Chouhan invited the business community to "Make in Madhya Pradesh" and assured them of a conducive environment for their growth as he launched the 'Friends of MP' initiative. "Prime Minister Modi says Make in India. In Madhya Pradesh, I say 'Make in MP'," he said as he invited the diaspora and the American community to share their expertise and capabilities in IT, agriculture, business and social sectors. Highlighting the economic, agricultural and infrastructure development in his state, Chouhan the state government has put in place policies that enable businesses to grow while at the same time providing critical basic amenities to its residents. 

Giving an impassioned speech in Hindi, Chouhan said the state does not want to become complacent and welcomed ideas and suggestions to put Madhya Pradesh on a higher growth trajectory. "I welcome you all with open arms. Use your talent and capability towards the progress of the country and your state. I am not just the Chief Minister but the CEO of the state and I assure you that you will not be disappointed," he said as he invited the Indian community to join the 'Friends of MP initiative'. 

Joined by three US Congresswomen, Nita Lowey, Caroline Maloney and Yvette Clarke as well as India's Consul General Dnyaneshwar Mulay, Chouhan launched the initiative, which is a web-enabled platform that will allow interested individuals to share their suggestions and expertise in education, health, skill development, rural development and tourism.

SOURCE: The Economic Times

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Global crude oil price of Indian Basket was US$ 50.20 per bbl on 02.02.2015

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 50.20 per barrel (bbl) on 02.02.2015. This was higher than the price of US$ 46.73 per bbl on previous publishing day of 30.01.2015.

In rupee terms, the price of Indian Basket increased to Rs 3106.38 per bbl on 02.02.2015 as compared to Rs 2886.04 per bbl on 30.01.2015. Rupee closed weaker at Rs 61.88 per US$ on 02.02.2015 as against Rs 61.76 per US$ on 30.01.2015.

The table below gives details in this regard:

Particulars

Unit

Price on Feb 02, 2015 (Previous trading day i.e. 30.01.2015)

Pricing Fortnight for 01.02.2015

(Jan 14 to Jan 28, 2015)

Crude Oil (Indian Basket)

($/bbl)

50.20              (46.73)

45.32

(Rs/bbl

3106.38           (2886.04)

2796.24

Exchange Rate

(Rs/$)

61.88               (61.76)

61.70

 

MJPS/Rk/Daily Crude oil price- 03.02.2015      

SOURCE: PIB

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Mexican Textile Importers Must Register by March 1 or Risk Losing Import Authorization

New rules being implemented by the Mexican government could have a significant impact on textile and apparel importers in that country. While importers have been given a one-month reprieve to comply with one requirement, others are taking effect as soon as Feb. 2. Under measures announced by the Mexican government in December 2014, textile and apparel importers must register on the sectorial importers’ registry before they may import goods classified within chapters 50 to 63 of the Harmonized Tariff Schedule of Mexico. Registration was opened on Jan. 1, and importers who fail to meet the March 1 deadline (recently extended from Feb. 1) will lose authorization to conduct import operations.

In the meantime, minimum reference prices for textile and apparel goods entered into force on Feb. 2. If importers declare a customs value for a shipment below the reference prices they will have to guarantee the difference in duties by using a bond. Another new requirement now in effect is that importers must notify Mexican Customs at least five working days in advance of any textile and apparel import operation to give authorities time to evaluate whether the goods are undervalued. These and other measures being imposed for textiles and apparel are similar to those Mexico put in place for footwear in 2014.

SOURCE: The SRTrade

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Philippines abaca fiber likely to see 5.7pc growth in global demand for next 5 years

Philippines will remain as the world’s top source of abaca, the strongest-known natural fiber, according to TechSci global market research and consulting company as the global demand for Philippine abaca fiber is expected to grow 5.7 percent through 2019. The UK, Japan and China are the country’s major markets for abaca. Increasing consumer preference for lifestyle projects will further boost demand for abaca-based products in the coming years.

Moreover with continuing development of fiber-craft industry in the Philippines, the abaca-fiber market has been witnessing a boost due to growing demand for gifts, toys and housewares. TechSci Research said that the use of abaca in manufacturing specialty paper will also expand the demand for the fiber.

Currently, the Philippines and Ecuador are considered as the two major exporters of abaca fiber as the country accounts for over 80-percent global output of abaca. To help local farmers cash in on the growing demand for abaca, the Department of Science and Technology (DOST) said that it is developing appropriate technology to develop a wider range of abaca-based products.

During the Philippine Textile Industry Stakeholders Conference last week Science Secretary Mario G. Montejo said that the government has earmarked P52 million to rehabilitate the DOST’s Philippine Textile Research Institute’s [PTRI] pilot facility this year. The facility will provide the much-needed indigenous yarn supply to textile [producers]. PTRI Director Celia B. Elumba said that demand for stronger textile made from natural fiber is on the uptrend, citing the case of several local textile manufacturers, who are currently producing maong which contains 30 percent to 50 percent abaca components. The combination of abaca with silk has resulted in a highly acceptable textile in terms of wearability. The country needs to increase its spindles to produce more yarn out of natural fibers. Currently, the Philippines has only 120,000 spindles, unlike Bangladesh, which has 6 million.

Elumba said that the P52 million allocated to PTRI is capable of constructing 44 spinning machines, which are capable of producing 800 yards of yarn a day. The project will also include the development of commercially available natural dyes from indigenous plant materials, which are a current global trend, adding that China has already halted its use of chemical-based dyes some 12 years ago because of environmental concerns. From January to August 2014, Philippine abaca exports expanded 57.4 percent to $79.3 million, from $50.6 million recorded in the same period in 2013 on the back of sustained demand for the crop in the country’s major markets, the Fiber Industry Development Authority (Fida) an attached agency of the Department of Agriculture said.

Figures from Fida revealed that the value of the shipments of abaca fiber more than doubled to $10.9 million in the eight months to August 2014, from $4.9 million posted in the same period in 2013. The value of abaca pulp shipped out to other countries also increased by 64 percent from $34.8 million recorded in January to August 2013 to $51.1 million. Earnings from cordage and fabrics also have moved up by 18 percent and 21 percent, respectively.

SOURCE: YarnsandFibers

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British carbon fiber textile firm plans to invest $12mn at new county facility

British-based carbon fiber textile manufacturer Sigmatex announced its plan to invest $12 million in a facility at the John W. Matthews Jr. Industrial Park.at the Orangeburg County facility over the next five years and will initially create 50 new jobs. It is one of the largest projects the company has undertaken in its 28-year history.  Ground will be broken on the new $6 million, 75,000-square-foot facility by the end of the year. Operations could begin in mid-2015.

The facility will be located near the entrance of the Matthews Industrial Park on about 20 acres. It will be constructed to allow for expansion up to 150,000 square feet and eventually up to 450,000 square feet to accommodate the potential growth in the aerospace industry. This facility will enable them to meet any foreseeable future market requirements and ensure they are prepared to continue to support the supply chain in delivering the growth requirements in the aerospace and automotive sectors, said Sigmatex CEO Scott Tolson.

They are looking forward to continue their excellent cooperation with the state and local officials and to further supporting their expanding customer base with carbon textile solutions. The company develops and makes carbon fiber textiles for composite materials, converting millions of pounds of carbon fiber each year for major projects that require high levels of quality and reliability. Orangeburg County is on the “cutting edge of the future in terms of job creation and job opportunities” and eventually would like to see five class A industrial parks in the Global Logistics Triangle, which Orangeburg County defines as the area around Interstate 95, Interstate 26 and U.S. Highway 301. Sen. John Matthews, D-Bowman, said that Sigmatex has a very bright future as they have a good location and people who will give a day’s work for a day’s pay. The park is named after the senator.

SOURCE: YarnsandFibers

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Cotton futures rise on speculator short-covering: Pakistan

ICE cotton hit a more-than two week high on Monday as investors exited short positions after the strongest weekly gain in more than four months, triggering technical buying above a key support level. The most-active March cotton contract on ICE Futures US gained 0.53 cent, or 0.9 percent, to settle at 59.89 cents a lb after rising as high as 60.08 cents, its highest level since January 15.  Fiber rose 3.6 percent last week, its largest weekly gain since the week ended September 12. That prompted investors who focus more on day-end and week-end levels than intraday moves to cover their bearish cotton bets on Monday, said Ron Lawson, a partner at commodity investment firm Logic Advisors in Sonoma, California.

"The specs enter into the market in dribs and drabs, here and there. They exit in concert," Lawson said. Speculators increased their net short position in cotton futures and options to a four-month high of 22,925 contracts in the week ended January 27, US Commodity Futures Trading Commission data showed Friday after market close. The March contract received a boost in morning trading after it exceeded its 20-day moving average at 59.34 cents a lb, exaggerating gains.

SOURCE: The Business Recorder

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No MFN to India without measures: Pak envoy

In a major change of stance, Pakistan on Monday said granting the ‘Most Favoured Nation’ (MFN) trade status toIndia will impact its economy adversely because of the uneven trade balance. India has to take adequate steps to increase imports from Pakistan to obtain MFN status, according to Pakistan High Commissioner to India Abdul Basit. “The balance of trade is heavily in India’s favour. So, if Pakistan was to extend MFN or non-discriminatory market access (NDMA) to India, we do not know what will happen to our economy. It (India) will have to take certain measures where Pakistan’s exports can be increased. We expect our neighbour not to apply non-tariff barriers across the board and show some exemption to its neighbour Pakistan,” Basit said at an event – India Pakistan Trade Normalisation – by ICRIER here.

Basit said one of the steps could be relaxing the stringent sanitary and phytosanitary measures that India imposes on Pakistani goods. He highlighted the number of non-tariff barriers imposed by India on imports from Pakistan. Pakistan was supposed to grant the MFN status to India in December 2012, which it missed. However, post that a new government led by Prime Minister Nawaz Sharif came to power in 2013, which had said MFN will be given to India soon. However, the high commissioner said normalisation of trade cannot be one-sided and it has to be based on a level-playing field and economic interdependence. He said whenever two-way trade between both the countries has increased, there has been a “hardening of position” by the Indian government on the issue of Jammu and Kashmir dispute, even as he referred to the recent cancellation of talks between foreign secretaries of both the countries last year.

The foreign secretary level talks were supposed to take place in August last year. The decision was taken during a bilateral meeting between both Prime Ministers Narendra Modi and Sharif during the former's swearing-in ceremony in May last year. However, the meeting was called off by India in the wake of Basit’s meeting with Kashmiri separatists before the meeting was to take place in Islamabad. “Let us admit that there is deep distrust in the two countries and it has a deep genesis in the Jammu and Kashmir issue. All issues such as Siachen, Sir Creek resulted from the Jammu and Kashmir dispute. So the question is can you put that on the back burner? Our experience tells us that no matter how hard we try in trade and cultural relations there is an inherent distrust … Bilateral tradecannot be continued beyond a certain point,” he said, adding Pakistan Prime Minister Nawaz Sharif has asked him to continue pursuing normal trade ties with India.

Bilateral trade between India and Pakistan reached $2.70 billion last financial year from $2.60 billion in 2012-13. In 2013-14, exports to Pakistan stood at $2.27 billion, up 10 per cent compared to $2.06 billion in 2012-13. However, imports from Pakistan declined by 21.22 per cent at $426.88 million in 2013-14 as against $541.87 million, according to data by the ministry of commerce and industry. India and Pakistan had jointly decided to normalise bilateral trade between both countries in 2011. Under this Pakistan was to grant MFN status to India by December 2012. But it did not meet the deadline. However, in 2013, Pakistan had substantially reduced its negative list with India, which contains items that India cannot export to Pakistan. This allowed India to export over 7,500 items to Pakistan from 1,946 items earlier.

SOURCE: The Business Standard

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Spain to push for proposed India-European Union trade pact 

Spain today said it will try to persuade European Commission (EC) to show flexibility while negotiating the free trade agreement with India as the pact is "crucial" for the future of the grouping.  "Spain is fully supporting the FTA with India and...we will pass the message on to the EC since in the last round of negotiations apparently the EC was reluctant to accept some of the positions backed by the Indian government," Jaime Garcia Legaz, Minister of State for Commerce of Spain, told PTI.  "So we will certainly do our home work in order to try to persuade the EC that we need more flexibility from the European side because this a crucial trade agreement for the future of the European Union," the minister said.

He was replying to a question about his country's view on re-starting negotiations for the proposed pact.  Last time in May 2013, both sides failed to bridge substantial gaps on crucial issues, including data security status for IT sector.  Launched in June 2007, negotiations for the proposed Broad-based Trade and Investment Agreement (BTIA) between India and the 27-nation European bloc have witnessed many hurdles as both the sides have major differences on crucial issues.

The two sides are yet to iron out issues related to tariffs and movement of professionals but the EU has shown an inclination to restart talks.  Besides demanding significant duty cuts in automobiles, EU wants tax reduction in wines and spirits and dairy products and a strong intellectual property regime.  On the other hand, India is asking for granting data secure nation status to it by EU. The matter is crucial as it will have a bearing on Indian IT companies wanting market access. It also wants liberalised visa norms for its professionals and market access in services and pharmaceuticals sector.

India is among nations not considered data secure by the EU. The EU law mandates that European countries doing outsourcing business with countries that are not certified as data secure have to follow stringent contractual obligations which increases operating costs and affects competitiveness.  The two-way commerce stood at USD 101.5 billion in 2013-14. It was USD 57.25 billion during April-October this fiscal.

SOURCE: The Economic Times

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Political turmoil in Bangladesh hampered jute export and production by Tk5.1 bn

Bangladesh exports and local trade of jute hit hard by 20-30 per cent in the last 26 days due to political turmoil. The jute sector suffered loss of an estimated Tk 5.1 billion, insiders said. The Bangladesh Jute Mills Corporation (BJMC), Jute Mills Association (BJMA), Jute Spinners Association (BJSA) officials said that nearly 249 jute mills in the country have been forced to cut production by 42,000 tonnes owing to the blockade enforced by the BNP-led alliance since January 5.

According to businesses, August-March is the peak season for jute harvest, trading, mills' production and exports. Supply shortage of raw jute, Jute Batching Oil and diesel due to halt in transportation has hampered production and exports. BJSA estimates that 96 mills under the association have cut production by 22,608 tonnes worth Tk1.7 billion since the blockade began. BJSA chairman Md Shahjahan stated that jute yarn factories need approximately 16,000 litres of JBO per day, but supply has almost halved. Exporters have also halted shipment as transportation cost from the factories to Benapole and Chittagong port increased by 100 percent while orders have also fallen significantly. While, BJMA secretary A Barik Khan said that 145 mills under the association have cut production by 20,000 tonnes worth Tk1.45 billion in the 26 days blockade. Many mills have cut production by more than 30 per cent.

An official at state-run BJMC said that due to this situation stockpile of the government-owned factories increased further.  BJMC's 24 mills cut production to 400 tonnes a day from 700 tonnes last year for weak demand for jute goods, mainly sacks. The blockade has caused nearly a 10,000 tonnes additional to the stockpile worth Tk 700 million. Bangladesh Jute Association (BJA) secretary Abdul Kaiyum said that exports plunged to 1.98 million bales (bale=180 kgs) in 2013-14 from 2.05 million bales in FY'13. Normally in October-March period, the association members export nearly 0.1-0.15 million bales per month. The shipment of raw jute faced serious setback in January as export has decreased by more than by 80 per cent. Exports from the jute sector amounted to US$824 million in FY'14, the Export Promotion Bureau data showed.

Presently, there are 249 jute manufacturing units in the country. Of which, 96 private spinning mills produce jute yarn, while 24 state-owned mills and 145 private jute mills manufacture hessian, sacks and bags. The jute and jute sector is highly fire-sensitive and they can’t take risk in the highways. If the political turmoil continues, jute factories will not be able to repay bank loans in time and many of them will become defaulters.

SOURCE: YarnsandFibers

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Syria Mod Baghdad exhibition for readymade clothes opened in Baghdad on Sunday

Syria Mod Baghdad Exhibition for the ready-made clothes opened in Baghdad on Sunday. The 3-day exhibition aims at restoring communication with the Iraqi businessmen and industrialists in the domain of wears and textiles said the Head of the Syrian Exporters’ Federation Mohammad al-Sawwah.

Al-Sawwah added that the Iraqi markets import between 20 to 30 percent of the Syrian textile, wear products. The exhibition is organized by the Syrian Exporters’ Association for clothes and textile, Damascus Chamber of Industry, in cooperation with the Syrian Exporters’ Federation. Secretary of the Syrian Exporters Federation (SEF) Mazen Hammour confirmed the participation of 85 companies from various Syrian clothing industries in Syria Mod Exhibition which will be held on the fairground in Baghdad next month.

The Development and Promotion of Exports Commission and the SEF would offer support to the participants in the exhibition by more than 65 percent due to the importance of the Iraqi market. Mr. Hammour clarified that some 105 companies mostly from the Syrian clothing makers will take part in the exhibition which will be held in Beirut next month.

SOURCE: YarnsandFibers

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