|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1170.98 |
USD/Ton |
0.14% |
2/26/2015 |
|
VSF |
1831.98 |
USD/Ton |
0% |
2/26/2015 |
|
ASF |
2594.50 |
USD/Ton |
0% |
2/26/2015 |
|
Polyester POY |
1197.77 |
USD/Ton |
0% |
2/26/2015 |
|
Nylon FDY |
2955.86 |
USD/Ton |
0% |
2/26/2015 |
|
40D Spandex |
7470.86 |
USD/Ton |
0% |
2/26/2015 |
|
Nylon DTY |
1404.85 |
USD/Ton |
0% |
2/26/2015 |
|
Viscose Long Filament |
3199.48 |
USD/Ton |
0% |
2/26/2015 |
|
Polyester DTY |
5716.83 |
USD/Ton |
0% |
2/26/2015 |
|
Nylon POY |
1453.57 |
USD/Ton |
0% |
2/26/2015 |
|
Acrylic Top 3D |
2679.77 |
USD/Ton |
0% |
2/26/2015 |
|
Polyester FDY |
2744.73 |
USD/Ton |
0% |
2/26/2015 |
|
30S Spun Rayon Yarn |
2533.60 |
USD/Ton |
0% |
2/26/2015 |
|
32S Polyester Yarn |
1859.59 |
USD/Ton |
0% |
2/26/2015 |
|
45S T/C Yarn |
2874.66 |
USD/Ton |
0% |
2/26/2015 |
|
45S Polyester Yarn |
2013.88 |
USD/Ton |
0% |
2/26/2015 |
|
T/C Yarn 65/35 32S |
2484.87 |
USD/Ton |
0% |
2/26/2015 |
|
40S Rayon Yarn |
2696.01 |
USD/Ton |
0% |
2/26/2015 |
|
T/R Yarn 65/35 32S |
2598.56 |
USD/Ton |
0% |
2/26/2015 |
|
10S Denim Fabric |
1.58 |
USD/Meter |
0% |
2/26/2015 |
|
32S Twill Fabric |
0.99 |
USD/Meter |
0% |
2/26/2015 |
|
40S Combed Poplin |
1.35 |
USD/Meter |
0% |
2/26/2015 |
|
30S Rayon Fabric |
0.72 |
USD/Meter |
0% |
2/26/2015 |
|
45S T/C Fabric |
0.79 |
USD/Meter |
0% |
2/26/2015 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16241 USD dtd. 26/02/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
International rating agency Standard & Poor's has sharply revised India's growth forecast upwards to 7.9% for 2015-16 and 8.2% in the year after, crediting the move to rising investment and fall in oil prices as it singled out the country in the region while trimming its forecasts for China, Japan and the four Asian Tigers. "India should be the Asia-Pacific region's bright spot. We revised our growth forecasts for the country upward, reflecting new official data based on methodological improvements," the US-based agency said in a statement on Thursday.
The agency, which rates India among the lowest in the investment grade at BBB-, did not specify in the brief note sent to the press whether it had revised its estimates on the basis of the revisions in GDP computation. In the note, the agency said that growth in the Asia-Pacific region will be slightly lower but India is poised to do well. "Weaker growth in China and Japan may be weighing on the overall sentiment, although India's star is rising," it said.
The agency, in its report titled 'Stronger US Economy and Lower Oil PricesAren’t Boosting Asia-Pacific Growth', slashed its GDP growth forecast for China to 6.9% for this year and to 6.6% in 2016, from 7.1% and 6.7% respectively. The twin factors of strengthening US economy and lower oil prices have yet to lift economic data in much of Asia-Pacific region. Central banks have shifted their stance in recent months, with a critical group of monetary policymakers cutting rates or easing financial conditions and the remainder moving to a more neutral stance.
"We now expect slightly lower real GDP growth in Asia-Pacific, but significantly lower inflation, higher current accounts, weaker currencies and more accommodative monetary policy stances, despite our steadfast view that the US Federal Reserve will begin its long-awaited rate hikes this summer," said Paul Gruenwald, Asia-Pacific chief economist at Standard & Poor's.
Finance Minister Arun Jaitley is slated to present on Saturday his first full Budget, in which the government will spell out its growth target for the next fiscal. The agency had earlier this week come up with a commentary flagging concerns over the fiscal deficit and low per capita income. "India's low income levels and weak fiscal and debt indicators constrain the country's credit profile," it had said on Monday. Although the agency said that last year's election results have created a conducive environment for reforms with political stability, it termed "governance effectiveness" a "neutral" credit factor.
SOURCE: The Economic Times
India is emerging as one of the few hopes for global growth, as other big developing markets stumble. China's economy is slowing. Brazil is struggling as commodity prices plunge. Russia, facing Western sanctions and weak oil revenue, is headed into a recession. Renewed optimism from outside investors is spurring business expansion in cities around the country like Tiruppur, a hub of India's yarn and textile industry. Most of the factories in Tiruppur are doubling or tripling their capacity, and these are huge factories, said Pritam Sanghai, the director of Arjay Apparel Industries. Small factories no longer need to shut down every year for government inspectors to spend a day checking boilers. Foreign investment rules have been relaxed for insurers, military contractors and real estate companies. A broad tax overhaul is underway.
India is riding high on the early success of Prime Minister Narendra Modi and a raft of new business-friendly policies instituted in his first eight months. Whether India's momentum is short-lived or sustainable hinges on whether Modi can push through deeper reforms, including addressing the persistent poverty and corruption that plague the economy. Lacking the necessary political support to overhaul legislation quickly, he has largely relied on temporary measures to make changes. India, in part, is benefiting from favorable economic winds, the same ones wreaking havoc in Russia, Venezuela and elsewhere.
The country's reliance on imported oil, for example, has been its bane for decades. By last summer, oil was a $US100 billion drag on the economy, roughly 5 percent of the entire country's economic output. With crude prices now halved, fuel costs for trucks and cars have plunged, pulling down transport expenses and inflation. The cost of government fuel subsidies has nose-dived, helping curb the country's chronic budget deficits.
Raghuram G. Rajan, the governor of the Reserve Bank of India said that India have got essentially a $US50 billion gift for the economy. India is also profiting from the troubles of other emerging markets. China's investigations of multinationals, persistent tensions with neighbouring countries and surging blue-collar wages have prompted many companies to start looking elsewhere for large labor forces. All the circumstances have come together to make manufacturing and growth happen, said Shailesh V. Haribhakti, the chairman of MentorCap Management, a boutique investment bank in Mumbai.
As India's fortunes begin to shift, Modi is trying to tackle thornier economic issues. He wants to expand the private sector's role in coal mining, a government-dominated industry. He is looking to accelerate the construction of roads and other infrastructure. On the tax front, Modi hopes gradually to replace state taxes on goods that cross state borders with a national tax. In a January visit to New Delhi, President Barack Obama highlighted chronic regulatory obstacles in India. There are still too many barriers - hoops to jump through, bureaucratic restrictions - that make it hard to start a business, or to export, to import, to close a deal, deliver on a deal. But Obama acknowledged the country's progress, stating that Prime Minister Modi has initiated reforms that will help overcome some of these barriers. The World Bank has recently ranked India as the 142nd-hardest place to do business out of 189 countries.
SOURCE: Yarns&Fibers
In the last week of January cotton prices ruled at at Rs14,420 a bale (170 kg) – near a five-year low which is some 14 percent below the levels seen at beginning of the cotton season, which began in October. However, cotton prices have now been showing signs of recovery over the last one month. Decline in prices is attributed mainly to record domestic production and waning exports to China due to change in its reserve policy. Prices have surged some 7 percent in the domestic derivatives market. Meanwhile, prices on the Inter Continental Exchange (ICE) have also increased over 14 per cent in same period. Since cotton prices might have bottomed out in January, domestic millers and exporters are expecting an improvement in exports in the coming months due to change in long-term fundamentals and export policy. The Cotton Association of India (CAI) has cut production estimates by about 50 lakh bales to 397 lakh bales.
Domestic consumption is likely to rise by about 4 percent to 311 lakh bales compared with last year. A combination of slightly lower production and comparatively higher consumption might shrink the carryover stocks the next season. Earlier in the season, due to subdued export demand, mills were purchasing cotton in line with their requirements. But now, with the lower than expected output and uncertainty for the crop estimate for next season, mills are actively buying cotton for their long-term consumption demand. Prospects for exports have improved due to the domestic export policy to exempt both raw cotton and cotton yarn from registration processes, new destinations, weakening rupee and demand for better quality. Policy changes have encouraged exporters to explore new markets such as Vietnam and other South-East Asian countries.
In December, 10.34 lakh bales were exported, an increase of 41 per cent compared with November. Moreover, the rupee has been on a decline in last one month, weakening from around 61.43 to 62.18 against the dollar currently, making Indian cotton competitive in the global market. According to the International Cotton Advisory Committee, in 2015-16 season, consumption of cotton is likely to be higher than production as global production is projected to fall 6 per cent to 24.6 million tonnes (first time in five seasons). Meanwhile, hedge funds, which had been on net short last month, have rebuilt a net long of 23,222 lots, that too, the biggest in seven months, according to data from the Commodity Futures Trading Commission.
This sharp reversal in hedge fund sentiments were spurred up due to a cut in estimate for US cotton stocks for 2014-15, unexpectedly export demand and concerns of lower planting. Cotton prices are picking up in the domestic market due to demand for good quality offered by new arrivals. This along with a slightly lower planting projection, early declaration of minimum support price and export prospects to new destinations likely help cotton prices surge ahead in coming months. On global cotton front, world trade is raised slightly, owing to a 300,000-bale increase in forecast imports by China. Exports are raised for the United States and Pakistan, partially offset by a decrease for India. World ending stocks are now projected to reach nearly 110 million bales. Consumption is reduced mainly in China and the United States, but is raised for Vietnam and Indonesia.
SOURCE: Yarns&Fibers
Relative cost and time advantages are drawing Indian exporters to the French port complex of Haropa for European markets. Indian companies such as Reliance Industries, Tata Motors, Mahindra & Mahindra, Dhunseri Petrochemicals and Electrosteel Castings have been using the three-port system, said Herve Cornede, Commercial and Marketing Director of Grand Port Maritime Du Havre.
Cost-effective idea
Cornede claimed that Haropa port system was 30 per cent cheaper for Indian exports than its competitors in Europe were. From Nhava-Sheva and Kolkata to Le Havre, an exporter can gain between three and seven days compared to Antwerp and Rotterdam and from Le Havre to Indian ports, between one and three days. Currently on a road show in India, officials of Haropa — its allied services organisations and French customs — also made a pitch for a cost-effective idea for Indian exporters to ship goods to French-speaking West African destinations through its logistic and distribution hub.
Joint venture
Haropa is a joint venture among the French ports of Le Havre, Rouen and Paris on the river Seine. It is now considered the fifth largest port complex in Northern Europe. This deep-water port, capable of berthing super-ships at full load, is unaffected by tidal waves.
Time factor
Lower transit times to and from destinations in Asia, five-minute customs clearance, an array of allied services including inland water, rail and road transport networks and warehousing facilities have lent growth for Haropa. “In 2014, our business grew by around 2.5 per cent, rare among European ports”, Cornede pointed out. Franco-Indian trade ties ensured transhipment of break bulk and container cargoes from India without VAT and customs, the official said.
SOURCE: The Hindu Business Line
The Shipping Ministry’s move to develop smart cities in each major port has revived the hopes of cash starved Kochi Port to generate revenue. Nitin Gadkari, Shipping Minister had announced of Ministry’s plan to build one smart city each at major ports at an estimated total investment of ₹50,000 crore, as country’s 12 major ports are having an estimated 2.64 lakh acre of land in its control.
Kochi port with around 383 hectares in its possession is an ideal location to set up a smart city, C.S.Kartha, President, Cochin Chamber of Commerce and Industry said. Of this, around 152 hectares on the southern strip of the Willingdon Island has already reclaimed, he said adding that this timely move by the Ministry would help fetch more revenue to the port.
Willingdon Island, according to him, has got lot of vacant areas for development activities especially with the shifting of core business of container terminal operations to Vallarpadam. Unlike other major ports, Kochi does not have large areas of land for development and therefore the available land needs to be utilised properly in accordance to the environmental rules and regulations, he said. It is estimated that by 2050, about 70 per cent of the population will be living in cities and India will need about 500 new cities to accommodate the influx. He requested the Ministry to include these smart cities as special investment regions or SEZ with modified regulations and tax structures to make it attractive for foreign investment. This is essential because much of the funding for these projects will have to come from private developers, he added.
SOURCE: The Hindu Business Line
The hike in freight rates in the Railway Budget will impact companies in the steel and realty sectors, while cement, power and urea producers may not be affected.
Urea: No impact
The proposal to increase rail freight for urea by 10 per cent will not have any impact on the profitability of urea producers. This is because, the Centre reimburses freight costs incurred by these companies. However, the Centre’s subsidy outgo is expected to increase by over Rs. 200 crore on account of this. The cost of moving urea from the factory gate to the point of sale is reimbursed by the Government as subsidy. Almost 80 per cent of the total urea consumed by India, which is about 30 million tonnes annually, is transported by rail.
The freight rate for the average distance of 772 km has now increased from Rs. 891.4 to Rs. 980.6, implying a 10 per cent increase. While increase in freight rates will not have any direct impact, urea companies will have to depend on the Centre for recovering the incremental freight costs. “As such, freight subsidy payments are not made on time so working capital and interest costs will rise,” explains Satish Chander, Director General, Fertiliser Association of India.
Coal India: No impact
Coal freight rates have been hiked on average by 6.3 per cent a tonne per km. This would push up transport cost per tonne from Rs. 1.35 per km to Rs. 1.44. The overall impact of this hike will be large, as the railways is the primary means for transporting coal. That said, the rate hike will not impact Coal India as the company passes on the freight charges to its buyers such as power companies. But downstream companies will feel the impact. “The hike in freight rates for coal will push up delivery costs. This move is out of whack with the Make in India spirit and could have been avoided,” says Ravi Uppal - MD and Group CEO, JSPL.
Power: No impact
For companies such as NTPC, that sell power under long-term power purchase agreements, the railway freight hike would be passed on to state distribution utilities and possibly the consumer. Power tariff charged to the consumer could increase by up to 10 paise per unit as producers incur more for transporting coal. For companies such as JSW Energy that run large capacities on imported coal, the impact would be limited given that the cost of railway freight accounts only for a small proportion of the landed cost of coal.
Steel: Negative
With the production of every tonne of steel requiring about 3 tonnes of raw material, a hike in rail freight of coal and iron ore could hurt company margins. The impact would be more for companies that have plants located far from ports, given that the demand for coking coal is largely met through imports. “Margins for the steel companies will come under pressure as they are competing with international companies which have an upper hand due to low raw material prices. Steel production cost is expected to go up by Rs. 100 a tonne” says Seshagiri Rao MVS, Joint Managing Director and CFO, JSW Steel. “The planned expenditure on locomotives, coaches, wagons, track renewals and road-over-bridges would boost steel demand,” says Firdose Vandrevala, Executive Chairman, Essar Steel.
Cement: No impact
Due to low rake availability, only about 25-30 per cent of the cement produced is moved through the railways. So, the 2.7 per cent hike in rail freight for cement may not increase cost significantly.However, the increase in rail freight for coal would impact cement manufactures as they use coal as a fuel.A 6.3 per cent hike in coal freight charges will increase the cost per bag (of 50 kg) by about Rs. 1/bag.Cement manufacturers may pass this on easily to buyers as demand also has been showing signs of picking up in the last few months.
Real estate: Negative
Property developers are likely to feel the pinch of higher freight rates. For one, end users of coal such as steel and cement manufacturers may pass on the hikes. Also higher cement freight rates could further push up cement prices, which are already trending up. Wage and land costs form the bulk of construction cost with raw material accounting for under 20 per cent of costs. With the property market in many regions currently soft, developers may have to bear the cost themselves. So, higher steel and cement prices is likely to impact the profitability of developers.
SOURCE: The Hindu Business Line
Supported by sustained dollar inflows into the Indian markets, the rupee closed stronger at 61.76 against the American currency on Thursday. The rupee had closed at 61.97 on Wednesday. Intraday, the rupee moved in the 61.72-61.99 range. The local currency also got support from debt-related inflows over the last two sessions. “Foreign investors were net buyers of $349.42 million in the Indian market on Wednesday, according to National Securities Depository Ltd data,” said Suresh Nair, Director, Admisi Forex. The RBI would most likely have bought dollars earlier in the session via state-run banks to keep rupee’s gains in check, said forex dealers.
SOURCE: The Hindu Business Line
Japanese companies are facing a “series of problems” in India related to taxation and infrastructure, Japan’s Ambassador to India Takeshi Yagi said on Thursday. He said huge potential exists between the two countries to enhance bilateral trade and investment, the figure is not satisfactory currently and is stagnant. “Japanese companies continue to face series of problems on customs, taxation and infrastructure,” Yagi said. “We strongly hope that the new policies and campaigns and initiatives which have been launched by the new government will be materialised as laws and administrative measures will be materialised on the ground.”
Yagi was speaking at CII’s International Engineering and Technology Fair (IETF) 2015. His comments assume significance as Japan is one of the countries which Prime Minister Narendra Modi is focusing on for investments. The Department of Industrial Policy and Promotion (DIPP) had set up Japan Plus to facilitate and fast-track investment proposals from Japan. Bilateral trade between India and Japan was $16.29 billion in 2013-14, as compared to $18.51 billion in the previous financial year.
India has received foreign direct investment (FDI) of $17.69 billion between April 2000 and December 2014. It is 7 per cent of the total FDI India has received during the period. Yagi also said a more business-friendly environment and greater ease of doing business would play a favourable role in increasing the Japanese presence in India. “Many more Japanese investors are just around the corner,” he added. The number of Japanese companies in India has increased by 137 in the past one year, marking a 13 per cent jump over the previous year. The total number of Japanese companies registered in India now is 1,209 as against 1,072 as in October 2013.
DIPP Secretary Amitabh Kant said the government is committed to take steps to improve ease of doing business in the country. “We will make India a easy place for people to enter and exit. This is a challenge but we have taken up this task. We have announced several steps to improve ease of doing business...Japanese companies will grow and prosper in India and not in Japan,” Kant said.
Japan is the partner country at the 21st IETF 2015. Around 60 Japanese firms will display and demonstrate their latest products and offerings to the Indian market. Besides, a delegation of 27 members from Keidanren, the Japanese business federation, would interact with the Indian industry towards strengthening the bilateral relationships. “We are fully aware and appreciate that the new government led by PM Modi has expressed its strong intention to reform, for example by submitting a constitutional (Amendment) bill to bring in goods and services tax, relaxing foreign equity restriction in insurance sector,” Yagi said.
SOURCE: The Business Standard
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 59.19 per barrel (bbl) on 26.02.2015. This was higher than the price of US$ 56.71 per bbl on previous publishing day of 25.02.2015.
In rupee terms, the price of Indian Basket increased to Rs 3666.23 per bbl on 26.02.2015 as compared to Rs 3518.86 per bbl on 25.02.2015. Rupee closed stronger at Rs 61.94 per US$ on 26.02.2015 as against Rs 62.05 per US$ on 25.02.2015.
The table below gives details in this regard:
|
Particulars |
Unit |
Price on Feb 26, 2015 (Previous trading day i.e. 25.02.2015) |
Pricing Fortnight for 16.02.2015 (Jan 29 to Feb 11, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
59.19 (56.71) |
52.70 |
|
(Rs/bbl |
3666.23 (3518.86) |
3258.97 |
|
|
Exchange Rate |
(Rs/$) |
61.94 (62.05) |
61.84 |
MJPS/Rk/Daily Crude oil price- 27.02.2015
SOURCE: PIB
Finance Minister Arun Jaitley will table today the Economic Survey in Parliament. The Survey will outline the broad direction of the Budget and the economic performance of the country. The Finance Ministry presents the Economic Survey in Parliament every year, just before the Union Budget. A flagship annual document of the Ministry of Finance, Government of India, Economic Survey 2014–15 reviews the developments in the Indian economy over the previous 12 months, summarises the performance on major development programmes, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term.
As per the new base year of 2011-12, Indian economy grew at 6.9 per cent in 2013-14, up from sub-5 per cent estimated when the base year was 2004-05. The government had last month changed the methodology of computing GDP. The new series will also affect a wide range of indicators like trends in public expenditure, taxes and public sector debt that are conventionally analysed in terms of their ratios to nominal GDP.
SOURCE: The Hindu Business Line
India will soon initiate the feasibility process to launch negotiations for a free trade agreement with Russia and Peru, a move aimed at enhancing economic ties with these nations, Commerce Secretary Rajeev Kher said today. Kher also said the new foreign trade policy (FTP) would be announced after the Budget, that would give a direction to India's efforts to enhance engagements with its trading partners. He said India is in the process of increasing its economic engagement with regions including Latin America, Africa, South Asia, West Asia and Central Asia. India will begin work towards "looking at the feasibility of regional trading arrangements with Peru and Russia very shortly," he said. "In fact a joint study group (JSG) for both these countries have been already constituted and we believe that in the next three to six months, we will have reports of the JSGs and thereafter...the process of negotiating trade agreement will start," Kher added. He was speaking at the CII's International Engineering and Technology Fair (IETF) 2015 here.
Before starting negotiations for FTA, both countries constitute a joint study group to look into feasibility of entering into the trade pact. The Secretary also said that efforts are on to engage through an institutional method with various regions of Africa "because that is where growth has sustained for a long time and that is where we believe prospects are strong (for India)". India is also part of the Regional Comprehensive Economic Partnership (RCEP) pact, that has 16 members. "The whole idea of all of these negotiations are to look for expanding opportunities and to look for collaborations which offer our industry an opportunity to find a toehold on various value chains. "(This is)... to see how we can re-orient our trade policy primarily driven by the desire to become a participant in the global value chains which has hitherto to an extent bypassed India in several product areas," he said.
Kher said India is trying to look at how it can create regional value chains within the neighbourhood - South Asia, South-East Asia, Central Asia and West Asia. "So all of this is in the works and we are trying to create a roadmap which will help us in engaging for the next 10 years," he added. Further, he emphasized on the need to focus on services sector, vital to make manufacturing competitive. "India's trade in value added services (TIVA) is rated at 42. That means 42 per cent of product on an average is composed of services. "We need to promote our services. We are organising a global exhibition on services which is scheduled in April," he added.
SOURCE: The Economic Times
The Union Cabinet, on Wednesday, cleared the establishment of the New Development Bank for funding infrastructure and development projects in the BRICS countries. It also cleared the BRICS Contingent Reserve Arrangement (CRA) which is meant to provide short-term liquidity support to the members in case of a Balance of Payments Crisis. “The New Development Bank will mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, to supplement existing efforts of multilateral and regional financial institutions for global growth and development,” the official press release stated.
The $100 billion New Development Bank was decided to be set up in July last year to fulfill the infrastructure financing needs of Brazil, Russia, India, China, and South Africa. The aim is to be a viable financing option for emerging economies as it was felt that the International Monetary Fund and the World Bank had not moved with the times and had not given enough representation to the biggest developing nations The Bank will be headquartered in Shanghai, China. Its first Presidency will be held by India. The Russian government had ratified the Bank earlier today.
“The BRICS CRA will help India and other signatory countries to forestall short-term liquidity pressures, provide mutual support and further strengthen financial stability. It would also contribute to strengthening the global financial safety net and complement existing international arrangements (from IMF) as an additional line of defence,” the press release stated. It did not mention the size of the CRA.
The release stated that the Bank will begin operations only after all member countries deposit their instruments of ratification with Brazil. Central Banks of the member countries will also have to finalize an Inter-Central Bank Agreement containing the operational details of swap transactions and the Standing Committee's Operational Procedures (SCOP) before the arrangement can be operational.
SOURCE: The Business Standard
A tiff over procurement of foodgrain packaging material in the ensuing rabi season has put the jute sector in a tight spot. While the Union food, civil supplies and consumer affairs department has allowed for packaging of grain in plastic bags, the Union ministry of textiles said there was no dilution in the packaging norms. The jute industry is worried, as it is sitting on a huge stockpile of bags.
Earlier this month, the Punjab government had requested the department to allow it to purchase 58,000 bales of 30-kg plastic bags for wheat packaging. This year, the Punjab government is expecting wheat procurement of 16.8 million tonne (mt), of which approximately 12.5 mt will be procured by the state procuring agencies and Food Corporation of India (FCI). Beside, FCI had requested purchase of 11,440 bales of 50-kg plastic bags for foodgrain packaging. On February 18, the food and civil supplies department approved the requests of the Punjab government and FCI. However, on February 23, the textile ministry wrote to the food and civil supplies department that it did not agree with the relaxations granted to the Punjab government and FCI for purchase of plastic bags.
The problems in the sector started in 2012-13, when the then United Progressive Alliance government tweaked the Jute Packaging Materials Act. From 100 per cent reservation (for packaging the commodity in jute bags) for sugar and foodgrain packaging under the Act, the reservation was diluted to 90 per cent for foodgrain and 20 per cent for sugar. The proposed dilution for wheat and foodgrain packaging this year by the Punjab government and FCI will be close to two-three per cent of the total packaging.
SOURCE: The Business Standard
Eco-friendly yarns, expected to capture 35 per cent of the total textile industry in the coming years, will help reduce consumption of purified terepthalic acid (PTA) and mono ethylene glycol (MEG) uses for man-made fibres (MMF), according to a leading manufacturer and exporter of yarns and fibres of polyester and cotton. The eco-friendly yarns will help the economies of every country worldwide. It will also encourage competition in the low-priced markets for exports to Africa and so on, the managing director of Everflow Petrofils Ltd (EPL), Pinkesh Jain, told fibre2fashion.com.
“We believe that in a few years, EPL will emerge as a leading company for reuse and recycle”, he said elaborating, “In India, we have already captured 35 per cent of total recycling yarns. Our Chinese factories are supplying all over the world. Our new target markets are Bangladesh, Egypt, and other countries in Africa.” Announcing that EPL will soon come up with a host of new products, Jain claimed that EPL has captured 35 per cent of the total imports in the MMF market of India. Eyeing a growth of 25.5 per cent, the EPL Group achieved a turnover of Rs 654.60 crore in 2013-14 and is projected to be Rs 820 crore in 2014-15.
SOURCE: Yarns&Fibers
Archroma has come up with a range of biosynthetic dyes for cotton and cellulose based fabrics called Earthcolors. The rich red, brown and green colours for denim and casualwear are derived from agricultural waste products like almond shells, saw palmetto, rosemary leaves and other natural products that would otherwise have been sent to landfills.
Sustainability is a key motivating factor in technological innovations available to textile mills and brand owners, and a demand for more eco-conscious fashion is impacting developments in the textile chemicals business, Alexander Wessels, CEO of Archroma, a global colours and specialty chemicals company told fibre2fashion.com.
Consumers are also asking for transparency and traceability of products used in clothing. To help address this, Archroma will put all the information about individual batches of colour from the Earthcolors range on the tags attached to each item of clothing. Each tag incorporates a chip with all the information on it. That information can be accessed by the prospective buyer in a shop using the near field communications (NFC) technology in their phone. “We believe that this is the first time NFC is being used in this way,” he said.
Talking about the latest trends in denim dyeing, Wessels emphasised that innovation is a key factor for new colours, effects, and handles. Within this, there is a growing focus on sustainability of dyes and the dyeing process. Designers are playing around with wash-down techniques to apply spectacular “local” effects and contrasts. There is also a definite interest in creating a more natural look than possible with conventional pigment colouring. In terms of latest colour trends, the last year saw a demand for orchid tones. Now earth colours that are rich red, brown and green are very much in vogue.
SOURCE: Yarns&Fibers
Korea has initiated a free trade agreement (FTA) with China. The two countries have agreed to work for the official signing of the pact within the first half of the year, said Deputy Trade Minister Woo Tae-hee on Wednesday. Following the deal, Korea will eliminate tariffs on 92 percent of imported items from China within the next 20 years. China will scrap tariffs on 91 percent of items imported from Korea, within the same period.
The deal makes Korea the only major economy to sign an FTA with the world's three biggest economies ― the U.S., China and the EU. The government said that the deal would help Korea secure a foothold in a huge market whose GDP had been growing by more than 7 percent a year. Korean goods make up 9.7 percent of China's import market, followed by Japan at 8.3 percent and the U.S. at 7.8 percent.
The Ministry of Trade, Industry and Energy said that just as China's joining of the World Trade Organization (WTO) turned out to be the best opportunity for Korea's economic development, the Korea-China FTA will become a second such opportunity for them. The FTA also includes 310 items made in the inter-Korean Gaesong Industrial Complex (GIC) in North Korea. They will enjoy a tariff reduction or elimination the same as products "made in Korea" when exported to China. This compares with free trade deals Korea had signed with ASEAN, where only 100 items from the GIC were given such privileges.
The government said that sales of fashion and consumer electronic products, petrochemical, steel and machinery would get more opportunities to grow in the Chinese market. While the government is trying to highlight the deal's positive side, small- and medium-sized enterprises (SMEs) that have focused on selling goods in the domestic market are expected to get a blow from Chinese competitors, as tariffs were lifted on most of the textiles and daily goods categories. According to a Korea Small Business Institute report, SMEs making textiles, furniture and other daily goods are expected to suffer. The SMEs want government measures to support them.
SOURCE: Yarns&Fibers
The second edition of Bangladesh's new specialist denim trade show will take place in the country's capital Dhaka on 11-12 May. The show will include a strong sustainability theme, including seminars on sustainable technologies for denim treatment and sessions looking at more sustainable methods of chemical processing in denim manufacture. Absolute Denim, Malwa, YKK, Epic Group and Juki are among the exhibitors attending the event. The organisers of Bangladesh Denim Expo said: "The future of Bangladesh's denim industry is bright. To meet the growing demand of denim fabric to international markets, local mills are investing hugely on state-of-the-art imported machineries especially on the weaving and processing side and setting up large plants in the country. This event will showcase Bangladesh as a single sourcing platform for denim."
Bangladesh denim manufacture is presently dominated by around 25 major denim manufacturing factories. The country is the second largest exporter of denim in the world after China, shipping around 180 million pieces of denim jeans around the world annually. According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA), good quality and competitive prices of Bangladesh denim have helped the country to win business from more than 60 leading international brands including Charles Voegele, G-Star, Jack and Jones, Oliver, River Island, H&M, C&A, PVH and GAP. Exports of Bangladeshi denim products to the USA and EU markets rose by 25 per cent from 2013-14. Monthly denim production in Bangladesh is said to be 30 million yards while demand is said to be almost 60 million yards – a shortfall which sees the country importing 30 to 35 million yards of denim per month from countries such as China, India & Pakistan. The global market for denim is forecast to reach USD $ 64.1 billion by 2020.
SOURCE: The Ecotextile
Garment and textile exports was the major contributor in the Vietnam climbing to the top with export valued at US$10 billion, accounting for one-third of the its total export value. Vietnam’s textile also raised its market share in the US to 9.26 per cent. Vietnam recorded a trade surplus of US$24.9 billion with the US ending 2014, the unprecedented value since the two countries normalised their relations. This is also higher than the previous forecast of a trade surplus of US$23.9 billion by the American Chamber of Commerce in Viet Nam (AmCham). In October, AmCham forecast the two-way trade revenue to reach US$34.9 billion in 2014, including US$29.4 billion from Vietnam's exports to the US.
The United States' reported statistics are also larger than the figures released by the Viet Nam's General Department of Customs. According to the customs department, Viet Nam shipped nearly US$28.7 billion worth of goods to the US and imported US$6.3 billion from this country, registering a trade surplus of US$22.4 billion.
SOURCE: Yarns&Fibers
The exhibit will display pieces from ancient ceremonial banners, to a tent used by Tipu Sultan (1750-1799), the famed ruler of the Kingdom of Mysore and also a stunning range of historic costume, highly prized textiles made for international trade, and cutting-edge fashion by celebrated Indian designers. The objects will be from 3rd to the 21st century and is said to be on display for the first time along with renowned masterworks and the very latest in Indian contemporary design
Ambassador Ajai Malhotra IFS (Retd.), newly appointed Chairman of the Nehru Trust, said that over the past quarter century The Nehru Trust for the Indian Collections at the V&A, working closely with the Victoria and Albert Museum in London and a wide range of other organizations in India and the UK, has contributed significantly to the development of professional skills and scholarship in museology and conservation in India. The NTICVA will even more actively promote interest in India’s vast and magnificent art and cultural heritage in the years ahead.
The exhibit will show how cloths is made as well as learning on how wealth, power and religious devotion are all expressed through textiles. The highlight of the V&A’s India Festival will be the display of some of the most astonishing skills and variety evident in this incomparably rich tradition will surprise and inform even those with prior knowledge of the subject, and is sure to delight visitors.
The exhibit takes place as part of the 25th anniversary of the opening of the Museum’s Nehru Gallery. The Victoria and Albert Museum, London, is the world's largest museum of decorative arts and design, housing a permanent collection of over 4.5 million objects. It was founded in 1852 and named after Queen Victoria and Prince Albert. The V&A is located in the Brompton district of the Royal Borough of Kensington and Chelsea.
SOURCE: Yarns&Fibers
Describing the Expo Pakistan 2015 as the biggest ever trade fair, Sharif said that his government wants more industries to be set up in the country and was working on setting up LNG-based power generating projects. They are setting power producing units with the help of China by the end of 2017 and construction in this regard has already started. 3,700 megawatts would have been added to the grid. The projects to produce more energy would be funded by the government and would not be dependent on private sector or bank loans. His government wanted to make Pakistan a prosperous country free of terrorism or militancy.
He said that the country's exports for the year 2013-2014 stood at USD 25 billion and added that they hope exports will reach USD 50 billion in the next three years as the situation in the country improves day by day. The country's textile policy has been reviewed and exports in the textile sector will increase from USD 13 billion annually to USD 26 billion annually by the year 2019. Sharif said that implementation on the South Asia Free Trade Agreement (SAFTA) is underway from which all SAARC countries are reaping benefits. The last Expo Pakistan held in 2013 sealed business deals estimated at USD 1 billion.
SOURCE: Yarns&Fibers
Economic sentiment in the euro area rose to a seven-month high and German unemployment dropped, keeping the region on a recovery path as the European Central Bank prepares to unleash its quantitative-easing program. An index of executive and consumer confidence climbed to 102.1 in February from a revised 101.4, the European Commission said on Thursday, beating the 102 median estimate in a Bloomberg survey. In Germany, the number of people out of work declined a seasonally adjusted 20,000 to 2.81 million, twice as much as predicted.
German economic growth accelerated in the fourth quarter, helping to lift the pace of euro-area expansion. Sentiment is picking up as concern about Greece’s future in the euro area is countered by anticipation of more ECB stimulus and the boost to incomes from falling oil prices. “Consumers are now clearly leading the turning of the euro-zone economic cycle,” said Teunis Brosens, an economist at ING Group NV in Amsterdam. “With austerity out of the way in most countries, low oil prices and the risk of a Grexit contained for now, there is scope for further consumption-led growth in 2015.” The commission report showed industrial confidence rose to minus 4.7 from minus 4.8 in January. Sentiment among consumers increased to minus 6.7 from minus 8.5, while confidence in the services sector declined.
German Unemployment
In Germany, the adjusted jobless rate remained at 6.5 percent this month, the lowest level in records going back more than two decades. The number of people without work dropped by 11,000 in the western part of the country and 8,000 in the east. “We are optimistic about the labor market, as companies and businesses will expand activity and maintain a good level of orders,” Frank-Juergen Weise, president of Germany’s Federal Labor Agency, said at a press conference in Nuremberg.
The jobless rate in the euro area was 11.4 percent in December, according to Eurostat. Figures for January will be published on March 2. The currency bloc’s economy expanded 0.3 percent in the fourth quarter. The German economy, which flirted with recession last year, grew 0.7 percent in the October-December period, driven by strong domestic demand and rising exports. Economic momentum in Europe’s powerhouse coincides with an improving outlook for some periphery countries. As French growth slowed and Italy’s economy stagnated, the Portuguese expanded at the fastest pace in a year in the three months to December. Spain has posted six consecutive quarters of growth after gross domestic product increased 0.7 percent.
Greek Tensions
At the same time, a standoff between the Greek government and its creditors over the terms of the nation’s bailout threatened to derail optimism. ECB President Mario Draghi is expected to provide more details of the institution’s 1.1 trillion euros ($1.3 trillion) of stimulus on March 5. He will also announce new economic forecasts. “The short-term outlook looks much better than it did six months ago, due to lower oil prices and accommodative monetary policy from the ECB,” said Silvio Peruzzo, senior European economist at Nomura International. “But structural damage as a result of the crisis in the periphery is substantial, unemployment in countries like Spain remains high and we’re yet to see strong wage growth.”
SOURCE: The Bloomberg
The value of freight moved between the U.S. and its North America neighbors increased for the 11th consecutive month in December while the total level for 2014 was better than the year before. It totaled $95.8 billion in December 2014, an increase of 5.4% from a year earlier, as four out of five transportation modes carried more freight, according to a new U.S. Department of Transportation report. Increases were seen in truck, rail, air, and pipeline shipments, while the value of trade by vessel fell between the three North American Free Trade agreement partners of the U.S. Canada and Mexico.
For all of 2014 the value of freight between the three increased 4.5% from 2013, compared to a gain of 2.7% in 2013 from 2012. In December 2014 compared a year earlier, the value of commodities moving by truck grew by the largest percentage of any mode, 9.3%. Rail freight increased by 8.3%, air rose by 6.3%, and pipeline grew by 4%. Vessel freight decreased by 22.6% due to lower mineral fuel prices. Trucks carried 59.2% of U.S.-NAFTA freight and were the most heavily utilized mode for moving goods to and from both U.S.-NAFTA partners. Trucks accounted for $28.4 billion of the $52.5 billion of imports, 54%, and $28.4 billion of the $43.3 billion of exports, or 65.6%.
U.S.-Canada Freight
U.S.-Canada freight totaled $53.1 billion in December 2014 as three out of five transportation modes – rail, truck, and pipeline – carried more U.S.-Canada freight than in December 2013. Year-over-year, the value of U.S.-Canada freight flows by all modes increased by 4.7%. The value of U.S.-Canada trade by rail increased the most of any mode, growing by 8.1%. Truck freight increased by 5.2% and pipeline rose by 2.6%. Trucks carried 52.6% of the $53.1 billion of freight to and from Canada, followed by rail at 16%. The surface transportation modes of truck, rail and pipeline carried 82.2% of the total U.S.-Canada freight flows. The top commodity category transported between the U.S. and Canada was mineral fuels, of which 60.7 %, moved by pipeline.
U.S.-Mexico Freight
U.S.-Mexico freight totaled $42.8 billion in December 2014 as four out of five transportation modes – pipeline, air, truck and rail – carried more U.S.-Mexico freight than in December 2013. Year-over-year, the value of U.S.-Mexico freight flows by all modes increased by 6.3%. The value of U.S.-Mexico pipeline freight rose 34.5%, the largest percentage increase of any mode. Freight moved by air increased 22.3%, truck rose by 13.7% and rail rose by 8.5%. Trucks carried 67.5% of the $42.8 billion of freight to and from Mexico, followed by rail at 14%. The surface transportation modes of truck, rail and pipeline carried 82.5% of the total U.S.-Mexico freight flows. The top commodity category transported between the U.S. and Mexico was electrical machinery, of which 90.8% moved by trucks.
SOURCE: The Trucking Info
