|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1196.30 |
USD/Ton |
0% |
3/4/2015 |
|
VSF |
1843.08 |
USD/Ton |
0% |
3/4/2015 |
|
ASF |
2589.55 |
USD/Ton |
0% |
3/4/2015 |
|
Polyester POY |
1207.65 |
USD/Ton |
0.68% |
3/4/2015 |
|
Nylon FDY |
2950.22 |
USD/Ton |
0% |
3/4/2015 |
|
40D Spandex |
7456.60 |
USD/Ton |
0% |
3/4/2015 |
|
Nylon DTY |
5709.16 |
USD/Ton |
0% |
3/4/2015 |
|
Viscose Long Filament |
1475.11 |
USD/Ton |
0.55% |
3/4/2015 |
|
Polyester DTY |
2674.65 |
USD/Ton |
0% |
3/4/2015 |
|
Nylon POY |
2739.49 |
USD/Ton |
0% |
3/4/2015 |
|
Acrylic Top 3D |
1410.27 |
USD/Ton |
0% |
3/4/2015 |
|
Polyester FDY |
3242.00 |
USD/Ton |
0% |
3/4/2015 |
|
30S Spun Rayon Yarn |
2544.97 |
USD/Ton |
0% |
3/4/2015 |
|
32S Polyester Yarn |
1880.36 |
USD/Ton |
0% |
3/4/2015 |
|
45S T/C Yarn |
2869.17 |
USD/Ton |
0% |
3/4/2015 |
|
45S Polyester Yarn |
2690.86 |
USD/Ton |
0% |
3/4/2015 |
|
T/C Yarn 65/35 32S |
2593.60 |
USD/Ton |
0% |
3/4/2015 |
|
40S Rayon Yarn |
2026.25 |
USD/Ton |
0% |
3/4/2015 |
|
T/R Yarn 65/35 32S |
2480.13 |
USD/Ton |
0% |
3/4/2015 |
|
10S Denim Fabric |
1.58 |
USD/Meter |
0% |
3/4/2015 |
|
32S Twill Fabric |
0.99 |
USD/Meter |
0% |
3/4/2015 |
|
40S Combed Poplin |
1.35 |
USD/Meter |
0% |
3/4/2015 |
|
30S Rayon Fabric |
0.72 |
USD/Meter |
0% |
3/4/2015 |
|
45S T/C Fabric |
0.78 |
USD/Meter |
0% |
3/4/2015 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16210 USD dtd. 03/04/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Banks, which have been resisting interest rate cuts for some time, are likely to bite the bullet now, with the central bank surprising everyone with a 25-basis-point repo rate cut for the second time in 45 days. Upbeat on the government's fiscal consolidation plan announced during the Budget last week, Reserve Bank of India (RBI) Governor Raghuram Rajan cut the interest rate on Wednesday, much ahead of a policy meeting of the central bank on April 7.
"The government intends to compensate for the delay in fiscal consolidation with a commitment to an improvement in the quality of adjustment," Rajan said. He added with the release of an agreement on a monetary policy framework, it was appropriate for RBI to offer a picture of how it would implement the mandate. Putting pressure on banks in terms of monetary policy transmission, Jayant Sinha, minister of state for finance, said the rate cut would reduce equated monthly instalments and there was scope for further rate cuts. Rajan also appeared to favour faster response from banks, saying banks appeared to be quicker in raising rates rather than in cutting those. "I have no doubt the pressure of these two rate cuts will, in time, feed into lower rates. We are also examining whether there are any institutional constraints in passing on these rate cuts. The hope is as we move into the next financial year, we will see more transmission into lower interest rates," he said.
Following the repo rate cut in January, only three banks had reduced their base rates. This time, however, some large lenders are likely to cut their lending rates, as deposit rates have been falling. V R Iyer, chairperson and managing director of Bank of India, said the state-run lender would cut its base and deposit rates soon. "The ALCO (asset liability committee) will meet in a day or two. We will reciprocate RBI's action and the Budget announcements supporting growth. The liquidity is comfortable. So, we can reduce deposit rates," Iyer said, adding though demand for credit continued to remain weak, she expected it to improve after two quarters.
"Our bank will take an appropriate call of a cut in base rate by looking at all evolving circumstances," said Arundhati Bhattacharya, chairman of State Bank of India. Rakesh Sethi, chairman and managing director of Allahabad Bank, said the bank's ALCO would meet on Thursday to explore the possibility of a lending rate cut. "A decision (on a base rate cut) will be taken by the ALCO. In January, we did not reduce our base rate because our cost of deposits was unchanged. For lending rates to fall, deposit costs need to come down," he added.
Banks have been refraining from cutting lending rates due to weaker margins amid sluggish loan growth and rising bad loans, which reduce interest earning. In April 2014- February 2015, bank loans grew only 7.5 per cent, the slowest in about a decade. Market participants said there would be more rate cuts, as Consumer Price Index-inflation was expected to stay much below the six per cent target for January 2016, according to the new monetary policy framework agreement. "We believe the inflation trajectory will be key to the magnitude of rate cuts. The inflation outlook and the real rate policy framework followed by RBI means the central bank will cut the rate by an additional 100 basis points though 2015, with the next move happening during the April 7 meeting," said Chetan Ahya and Upasana Chachra of Morgan Stanley Research, Asia Pacific.
In his statement, the RBI governor said, "Given the low capacity utilisation and still-weak indicators of production and credit off-take, it is appropriate for the Reserve Bank to be pre-emptive in its policy action." While he acknowledged an improvement in the economy, Rajan doubted whether it was doing as well as official gross domestic product data suggested. Following recent changes to the methodology used to compute the data, it was seen at 7.5 per cent, India's growth had outpaced China's in the December quarter. "Nevertheless, the picture of a steadily recovering economy appears right," he said. At a conference call with analysts, Rajan said RBI would target inflation of four per cent by the end of January 2018, adding a real interest rate of 1.5-2 per cent was appropriate at this point. Bond markets reacted strongly to the RBI move, with the yield on the 10-year benchmark bond closing six basis points lower than its previous close.
SOURCE: The Business Standard
Tirupur Exporters’ Association has welcomed today’s decision of the Reserve Bank of India (RBI) to reduce the Policy Repo Rate by 25 basis points (bps) from 7.75 per cent to 7.50 per cent, and urged banks to pass on the benefit to the customers in near future. In a press release, TEA president A Sakthivel said the RBI’s announcement has come at a time when the Union Budget 2015-16 has not announced the restoration of 3 per cent Interest Subvention on Rupee Packing Credit given to knitwear garment exporting units.
He said the benefit will certainly workout in favour of exporting units, for whom competitiveness is a key for their survival in the global market. Subsequent to reduction of Repo Rate by RBI on 15 January, 2015, except for one or two banks, other banks had not reduced their interest rates, Sakthivel said. He appealed to banks to pass on the benefit to the customers in near future, otherwise the announcement by RBI would not be beneficial to customers.
Earlier in the day, in a statement on Monetary Policy, RBI governor Raghuram Rajan said, “Given low capacity utilisation and still-weak indicators of production and credit off-take, it is appropriate for the Reserve Bank to be pre-emptive in its policy action to utilise available space for monetary accommodation.” Post RBI announcement, the Reverse Repo Rate under the liquidity adjustment facility (LAF) stands adjusted to 6.5 per cent, while the Cash Reserve Ratio of scheduled Banks remains unchanged at 4 per cent of net demand and time liabilities (NDTL). Going forward, the RBI will seek to bring the inflation rate to 4 per cent by the end of a two year period starting fiscal year 2016-17.
SOURCE: Fibre2fashion
Voicing surprise over the banking regulator’s move on the 25-basis-point repo rate cut, the Managing Director and Chief Executive Officer of Karur Vysya Bank K Venkataraman said “coming as it does at a time when rate yields had started moving up was a pleasant surprise.” “In hindsight, I did think that a rate cut before long could be in the offing, as the earlier one (in mid-January) was just 0.25 per cent. A 50-bps-cut would have made an impact,” he said. He, however, did not fail to point out that this co-ordinated action by the RBI within a week of the Budget announcement would help spur growth.
“It is an unexpected pleasant surprise,” said N Kamakodi, Chief Executive, City Union Bank. According to him, this signal would speed up the rate reduction cycle. However, Venkataraman said that one major trigger to drive growth could be improvement in public spending rather than a cut in the rate. “Once this happens, private investments would follow and the demand in turn would pick up,” he said. KVB has only recently effected a cut in the rate. “We will assess the situation and take a call nevertheless if there is further scope for a cut in interest rate,” Venkataraman said.
CUB, on the other hand, is closely monitoring the cost, Kamakodi said, adding that “rate cut should happen soon, most likely in the April – June quarter.” When asked if the bank faced pressure from customers whenever the regulator made some announcement, KVB chief said, “customers are not linking this rate cut for putting pressure on us to cut the lending rate”.
SOURCE: The Hindu Business Line
The demand for viscose staple fibre has been growing by leaps and bounds in India, and healthy growth is expected to continue this year too. Demand in all user segments like apparel, home textiles and technical textiles has been growing swiftly. To cater to the rising demand, on March 3, Grasim Industries commissioned its fourth line, and completed the last phase of its greenfield viscose staple fibre (VSF) plant at Vilayat in Gujarat. With this, the company’s VSF capacity at Vilayat is enhanced to 120,000 tonnes per annum, while its overall VSF capacity stands enhanced at 498,000 tonnes per annum.
“Volumes are zooming in India,” said Manohar Samuel, Global Business Development, Birla Cellulose. “Last year, VSF demand was at 14 per cent in India. Over the last 12 years, demand has been growing at a compounded annual growth rate of 8 per cent,” he said. Efforts have been on to consolidate the company’s pole position in the VSF business, where Grasim enjoys a leadership status. Through the greenfield project at Vilayat and brownfield expansions at Harihar in Karnataka, at 36,500 tonnes per annum, Grasim has ramped up capacities by 50 per cent to 498,000 tonnes per annum. For the past 10 years, cellulosics have been a surprising success story, said market sources, given the gains in usage of VSF for apparel as well as for nonwoven end uses. Demand has repeatedly increased in China, where cellulosic staple mill consumption in 2014 reportedly totalled 3 million tonnes. India is not far behind.
High usage
The apparel industry is the largest consumer of synthetic yarns and fibres. Experts pointed out that higher discretionary income among consumers is likely to boost the consumption of apparels in the domestic market, while apparel exports are also expected to grow at a healthy pace. Moreover, demand from the Indian real estate market and industrial sectors is also expected to help the usage of synthetic fibres, for the manufacturing of home textiles and technical textiles.
Adverse effects
Incidentally, the demand for dissolving pulp has substantially increased during the last few years. More than 80 per cent of the world’s dissolving pulp is converted to viscose rayon fiber, and is used in suits, dresses, socks, and other garments. In 2013-14, demand for polyester staple fibre (PSF) and polyester filament yarn (PFY) remained subdued due to a spike in demand for cotton yarn. This adversely impacted the output of PSF and PFY during the year, said an industry source. However, demand for viscose staple fibre (VSF), viscose filament yarn (VFY) and acrylic staple fibre (ASF) remained strong in the year ended March 2014, wherein production of VSF and VFY grew by 7.7 per cent and 4.2 per cent, respectively, and ASF output grew by a robust 35.5 per cent.
SOURCE: The Hindu Business Line
The Telangana government is formulating a new textile policy which will include incentives that match with those given by states like Maharashtra, Gujarat and Tamil Nadu to attract new industries. The new policy will be in line with the national policy. The state government has decided to set up a mega textile park in Warangal, the largest cotton growing districts in the state and has sought clearances from the Centre for the conversion of forest land for it.
Jayesh Ranjan, managing director of Telangana State Industrial Infrastructure Corporation is also part of the five-member special task force, set up to study the opportunities in the textile industry said that there is about 1,900 acres of forest land. They are preparing proposals to seek approvals for the use of the same. There are two smaller land parcels that are not part of the forest land and they will look to use these for initiating works. Ranjan further said that most companies have stressed the need for incentives better than other states to consider Telangana for setting up textile-related units.
The investment potential of the textile park will be arrived at in the project report, to be prepared shortly. A meeting has also been organized on March 7 to seek the industry’s feedback on the integrated mega textile park. The committee, headed by deputy chief minister Kadiam Srihari, has A Ramesh and C Dharma Reddy, both legislators, and adviser to the state government BV Papa Rao as members has been formed to study the incentives offered and support system provided, master weavers and their role, products from the various companies, machinery used, global market scenario and demand supply aspects for which the panel visited Surat, Bhivendi, Tirpur and Coimbatore.
SOURCE: Yarns&Fibers
The rupee pared early gains to end weaker at 62.26 against the dollar after public sector banks bought dollars taking cues from the heavy outflows from the domestic equity markets. The rupee opened at 61.66 from Tuesday’s close of 61.92 driven by an early morning announcement of 25 basis points policy rate cut by Reserve Bank of India. Meanwhile, public sector banks bought dollars, likely on behalf of the RBI to prevent a sharp rise in the Indian unit.
After crossing the 30,000 mark, the BSE-benchmark Sensex lost 213 points (0.72 per cent) to close at 29,380.73 on Wednesday. This weighed on the rupee which declined to 62.27 towards close. “Rupee should be in the broad range of 61-63 per dollar in the next 3-6 months. We should see significant increase in the balance of payments surplus so that will put appreciation pressure on the rupee,” said Ashish Parthasarthy, Head treasury, HDFC Bank. In the shorter term, the rupee could be 61.50-62.50 for some time, he added. During the day, the rupee moved in the range of 61.65 and 62.27 per dollar at the Interbank Foreign Exchange market.
Call and bonds
The interbank call money rate, rate at which banks lend to each other to overcome overnight liquidity mismatches, ended softer at 7.20 per cent from a close of 7.40 per cent on Tuesday. Intra-day, call money market moved in the range of 6.95 per cent and 7.70 per cent. The 10-year benchmark 8.40 per cent government bond, maturing in 2024, jumped to close higher at Rs. 104.70 from the previous close of Rs. 104.24. The yield on the bond softened to 7.68 per cent from Tuesday’s 7.75 per cent. Bond prices and yields move in opposite directions.
SOURCE: The Hindu Business Line
The finance ministry’s chief economic advisor has proposed a competitive goods and services tax (GST) rate, yet to be deliberated on by a proposed council to be comprised of the Union and state finance ministers.“When we start a GST regime, we want to have a really good one. That means our rates have to be internationally competitive and GST broadbased,” said Arvind Subramanian, the CEA , at an interaction with business people at a Federation of Indian Chambers of Commerce and Industry-organised event here.
He said these discussions will happen in the GST council. “But, I think the more industry harps on that, (it is) very very important. All of you send out that message,” he told them. Later, Subramanian told reporters that an internationally competitive rate for GST and a broad base are desirable objectives. A sub-panel of the Empowered Committee (EC) of State Finance Ministers on GST had recommended close to a 27 per cent goods tax under the proposed regime. A revenue-neutral rate, at which where will be no revenue loss to the states after adoption of GST, as pegged at 13.91 per cent. These rates are being studied by the National Institute of Public Finance and Policy.
The CEA refused to be drawn into whether the service tax rate would be higher after the Swachh Bharat cess of up to two per cent is imposed on some services, saying he was not the revenue secretary. Central Board of Excise and Customs (CBEC) Chairman Kaushal Srivastava said the Budget subsumed education ceases into excise duty and the service tax was to move towards the GST regime.
On the increase in service tax rate to 14 per cent from 12.36 per cent, he said, “In the GST regime, both the Centre and the states would levy tax on the supply of services and the combined rate would be somewhat more than the present rate.” The government has targeted GST roll out from April 2016 and has introduced the Constitutional Amendment Bill in the Lok Sabha. It is required to be passed with a two-thirds majority in both chambers of Parliament. After that at least half of the states — 15 — have to ratify the Bill. Then, the respective GST Bills will have to be passed by Parliament and the respective state legislatures. Currently, there is no chairman of the EC, after Abdul Rahim Rather, former finance minister of Jammu and Kashmir, lost in the recent state elections. The Committee is likely to meet on March 20 to select a chairman.
SOURCE: The Business Standard
After the Prime Minister’s referred to MGNREGA as a “monument to the failure of the UPA regime”, comes a report blaming it for creating shortage of farm labour. A Federation of Indian Chambers of Commerce and Industry (FICCI)-KMPG report titled ‘Labour in Indian Agriculture: A Growing Challenge’, released here on Wednesday, says schemes, such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), have affected farm labour adversely and can have a negative impact on productivity and prices.
“This reduction in supply (of farm labour) alone with the support of a number of Government schemes, including MGNREGA, has led to an escalation in farm wages, which is adversely impacting the profitability of the farmer,” said A Didar Singh, Secretary General, FICCI. Rural wages, he stated, have grown on average by 17 per cent on average since 2006-07 and outstripped urban wages while productivity has not increased.
The report found that between 2004-05 and 2011-12, farm labour declined by around 30.57 million while the total size of the workforce kept rising. The share of agri workforce during the same period declined from 56.7 per cent to 48.8 per cent. Ashok Gulati, Chair Professor of Agriculture, ICRIER, told BusinessLine that questions like mechanisation had to be taken up and the report’s recommendations on dovetailing “MGNREGA with agricultural activities at the central level and establishment of a national common market are in the right direction”. “At the State level, land policies and customised hiring need to take place. All this won’t happen overnight,” he said.
Alternative course
Pravesh Sharma, Managing Director of the Small Farmers’ Agribusiness Consortium, an agency under the Department of Agriculture and Cooperation, refuted the need to promote excessive mechanisation. “The US, China and the European Union, are growing more grain to feed the meat industry. This is not the case for India, so increased mechanisation cannot be a priority for India,” he said, suggesting sustained afforestation efforts, better transport and communication facilities would help farmers better.
Crop damage
The recent showers across the country, which damaged significant amounts of the Rabi crop, are also likely to impact farm labour and wages, as also consumers. “Whenever there is unseasonal rain and crop damage, labour demand and wages reduce. This is a temporary phenomena, however, and such incidents occur every three or four years,” said Ashok Vishandass, Chairman, Commission for Agricultural Costs and Prices, who released the report.
An assessment of crop damage is yet to be made, he said, with estimates ranging between 15 and 50 per cent. Wheat, mustard, potato, and a range of vegetables and fruits are believed to have been damaged across Uttar Pradesh, Haryana, Punjab, Maharashtra, Gujarat and Madhya Pradesh. Rajya Sabha members had raised the issue in Parliament on Tuesday and demanded special relief packages and crop loan waivers for the affected farmers and also suggested special initiatives to be undertaken to study the impact of climate change on agriculture.
SOURCE: The Hindu Business line
The decision by port and dock workers to go on an indefinite strike from March 9, protesting corporatisation of ports, has been postponed by a week. Following a meeting called by the chief labour commissioner (CLC) here, the strike has been tentatively postponed to March 16. In the intervening period, three additional meetings are scheduled. “On March 9, a meeting is scheduled with the Indian Ports Association; on March 12 with the shipping secretary; and, on March 13 with the CLC,” said S R Apraj, general-secretary, Mumbai Port Trust. If the negotiations are fruitful, there will be no strike on March 16, he added.
The five major federations of the 12 major ports of the country, which had called for the strike, are: All India Port & Dock Workers’ Federation; All India Port & Dock Workers’ Federation; Port, Water Transport Workers’ Federation of India; Dock and Waterfront Workers’ Federation; and Indian National Port & Dock Workers’ Federation. Corporatisation of ports, a long-pending step to turn 12 major port trusts into companies, were considered before as well. However, port and dock workers, resisted this on various counts, citing the move was against the interest of ports as well as workers.
SOURCE: The Business Standard
Turkey has customs union with the European Union and thus acts as an export gateway to the EU. To promote trade and investment between India and Turkey, the Turkish Indian Chamber of Commerce & Industry (TICCI) has opened an office in Kolkata. TICCI has also signed a MoU with Assocam to broaden the business horizon for the two countries. TICCI President Ersin Karaoglan said that the chamber is focusing on automotive spares as well as tourism and education for bilateral business cooperation.
He felt the developed Turkish tourism industry could partner Indian counterpart in developing travel infrastructure here. On the other hand, Indian skill and infrastructure pool in education might be utilized by Turkish students and professionals. Turkish business community has found out opportunities in auto component manufacturing in Tamil Nadu. This could further be extended to other areas of the country. Trade between India and Turkey also include products such as tea, textiles, leather and jute. The two countries also have possibilities of increasing businesses in the areas of infrastructure building and construction materials such as marbles, tiles and sanitary wares. As many as 150 Indian companies, including those from Aditya Birla, Tatas, Mahindras and Mukesh Ambani groups, are present in Turkey.
SOURCE: Yarns&Fibers
The Centre has asked states to develop a land bank by June end to ensure ready land availability for the industry, as it looks to accelerate the 'Make in India' drive. This is one of the 98 points on which states will be ranked to create a sense of competition among them. States have also been asked to develop a framework to earmark land parcels with industry type that can be set up on such land. The other parameters relate to registering of property, starting a business, construction permits, environment compliances, etc, with timelines spread to December 31.
"What the central government can do to boost domestic manufacturing was announced in the budget, but the real action lies in the states. We are closely working with states and have asked them to immediately begin action on these parameters,based on which they will be ranked," said a top DIPP official. The move is seen in conjunction with the Union Budget announced late last week that had measures to promote local manufacturing in the country, including correction of anomaly in the duty structure and improving credit access for small and medium enterprises.
The manufacturing sector is estimated to expand by 6.8% in 2014-15. India slipped two spots to 142 in the World Bank's ease of doing business ranking in 2015 out of 189 countries. The government is aiming to break into the top 50s in the next few years. DIPP in its communications to the states has recommended a by May 31, to allow for registration, application, tracking and monitoring of application, which will encourage young professionals to turn entrepreneurs. "Land and business are state subjects. India needs more job creators than job seekers, for which we need to make it simpler to do business," said the official. Similarly, it has recommended allowing online payment of all state levies and taxes. Besides, it has suggested single registration and ID for all state taxes.
It also suggested simplifying VAT refund by making payment directly into a firm's account within 60 days. For environment clearances and compliance, which are among the top hurdles faced by businesses in the country, DIPP has suggested that industry may be categorised into 'green', 'amber' and 'red' to define inspection requirements for registration or clearances. Green will require no inspection,amber will require self-certification, while red will require compulsory and time-bound verification. Prime Minister Narendra Modi had called a Make in India national workshop with states in December to discuss ways to make doing business easier in the country.
DIPP has also recommended allowing advance ruling for tax for state-level taxes on the lines of the Income Tax Act by June 30. States must fix timelines for disposing of the commercial cases and mandate mediation for commercial cases less than Rs 10 lakh. The Centre launched the single window portal called 'e-biz' last month, integrating 11 central services for faster clearance for businesses. DIPP has also identified 10 states, whose services will also be integrated on the ebiz portal. These include Andhra Pradesh, Delhi, Haryana, Maharashtra, Tamil Nadu, Odisha, Punjab, Rajasthan, Uttar Pradesh and West Bengal.
SOURCE: The Economic Times
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$ 58.51 per barrel (bbl) on 04.03.2015. This was lower than the price of US$ 58.84 per bbl on previous publishing day of 03.03.2015.
In rupee terms, the price of Indian Basket decreased to Rs 3618.84 per bbl on 04.03.2015 as compared to Rs 3638.67 per bbl on 03.03.2015. Rupee closed weaker at Rs 61.85 per US$ on 04.03.2015 as against Rs 61.84 per US$ on 03.03.2015.
The table below gives details in this regard:
|
Particulars |
Unit |
Price on March 04, 2015 (Previous trading day i.e. 03.03.2015) |
Pricing Fortnight for 01.03.2015 (Feb 12 to Feb 25, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
58.51 (58.84) |
57.84 |
|
(Rs/bbl |
3618.84 (3638.67) |
3598.80 |
|
|
Exchange Rate |
(Rs/$) |
61.85 (61.84) |
62.22 |
RC/Rk/Daily Crude oil price- 05.03.2015
Muhammad Naseer Malik, Vice Chairman Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) appreciating the government of Pakistan for announcing an ambitious Textile Policy for next five year 2014-19 has urged the government that all stuck up claims of the exporters including DLTL, Custom Rebates, Sales Tax Rebate etc need to be released within a month. He stated that the Pakistan government seems determined to boost textile and clothing sector exports from $13 billion to $26 billion by 2019; however, keeping in view the energy crisis and other challenges, but achieving this target requires extra ordinary efforts.
He commended the government’s initiative to offer about Rs. 64.15 billion cash subsidy to textile and clothing sector in the new textile policy and hoped that if implemented, this concession will help in improving textile exports. He stressed the need for implementing the policy in letter and spirit if the required targets are to be achieved including a 100% increase in value addition from $1 billion per million bales to $2 billion per million bales in the next five years.
Talking about GSP Plus he said that GSP plus facility does not seem to reap the expected growth rate of increasing textile exports to $14 billion, particularly due to unavailability of gas and electricity to the textile industries. The government should introduce special electricity and gas tariff for textile industry which must be regionally competitive. Also besides improving law and order and providing unabated gas and electricity supply, the government would have to relax import policy to empower value-added textile industry to get the maximum benefit of GSP plus Status. Pakistan is the 8th largest exporter of textile products in Asia and this sector contributes 9.5% to the GDP and provides employment to about 40 million workforce of the country.
SOURCE: Yarns&Fibers
Major General Ulfat Hussain Shah, the outgoing High Commissioner of Pakistan to Mauritus paid a courtesy call yesterday on the Prime Minister, Sir Anerood Jugnauth, at the Treasury Building in Port Louis, to bid him farewell after having served for two years in Mauritius. They also discussed on strengthening the relation between Pakistan and Mauritius. Both parties agreed that there is a need for more efforts to raise awareness amongst the respective business communities to the benefits of the Double Taxation Avoidance Agreement which exists since 1995 and the Investment Promotion and Protection Agreement of 1997 for cross-border investments.
Pakistani investments in Mauritius have prospects in sectors such as: textiles and apparel; light engineering; tourism and leisure; construction; education; medical hub; and ICT. As far as boosting investment and increasing the imports and exports flow to Pakistan and vice versa, is concerned, the outgoing High Commissioner is of the opinion that Mauritian exports to Pakistan are increasing and are going beyond its borders.
Major General Ulfat Hussain Shah also highlighted that during his service as High Commissioner of Pakistan to Mauritius much have been achieved in various fields ranging from diplomatic and trade exchanges to education. Both countries are now looking forward to strengthen and broaden existing avenues of cooperation and develop new ones. He said that they have traditionally been very close and warm, deriving their strength on common historical and cultural heritage, ties of kinship and bonds of friendship, mutual goodwill and on many affinities. He pointed out that Mauritius can serve as an example of peace, security, tolerance, unity and diversity for the rest of the world.
SOURCE: Yarns&Fibers
The imports of textiles and clothing by South Korea crossed the US$ 14 billion mark last year, narrowing the industry’s surplus further. In 2014, South Korea’s textile and clothing exports grew by 8.4 per cent year-on-year to $14.66 billion, which is an all-time high, yonhap news agency said citing data from the Korea International Trade Association.
On the other hand, South Korea’s textile and garment exports decreased 0.1 per cent year-on-year to $15.94 billion during the year. Thus, the industry’s surplus was at a record low of $1.28 billion, about 50 per cent less than the surplus amount in 2013. The trade surplus in textiles and clothing has been declining since 1998, when it was at a peak of $14.04 billion. Several factories relocating their production to China and Vietnam due to high production costs is one of the reasons for declining exports.
South Korea’s imports have been growing in recent years, mostly driven by low-priced products from China. In 2014, about 45 per cent of the country’s total imports valued at $6.59 billion came from China, while its exports were worth $2.52 billion. South Korean textile industry experts say the country could soon become a trade deficit from trade surplus if the current trend continues.
SOURCE: Fibre2fashion
Asian PTA prices grew on Monday (March 2) and also on Tuesday (March 3) this week from higher prices of other polyester feedstock coupled with increase in upstream product prices. In F E Asia, prices were seen at US$ 635/ton on Monday, higher by US$ 20/ton as compared to the prices at the end of the last week.
They rose by US$ 15/ton on Tuesday and were assessed at US$ 650/ton. In S E Asia, prices were witnessed at US$ 660/ton on Monday, also higher by US$ 20/ton as against prices at the end of the last week. They also ascended by US$ 10/ton on Tuesday and were spotted at US$ 670/ton.
In India, prices showed similar trend and were offered at US$ 670/ton on Monday, up by US$ 20/ton from prices at the end of last week. Prices again went up by US$ 15/ton on Tuesday and were quoted at US$ 685/ton.
SOURCE: Fibre2fashion
Exports rose 5.46 percent year-on-year to $2.51 billion in February, buoyed by increased shipment of garments, according to central bank data. Earnings in the first eight months (July-February) of the fiscal year were $20.31 billion, which were $17.80 billion till January. The figures show a positive trend as the country is receiving payments for goods that were shipped earlier.
“We are now facing difficulties exporting goods for political unrest,” said Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association. The negative impact of the political turmoil will be noticed in the next two or three months, as garment makers are now bagging fewer work orders from retailers, he added. Retailers are also cancelling their trips to Bangladesh for the unrest, he said. Garment makers have already demanded fiscal and policy support from the government, as production was hampered by unrest.
Source: The Daily Star
The mPedigree network, a global leader makes use of mobile and web technologies in securing products against faking, counterfeiting and diversion has introduced a new technology, the Goldkeys Technology to fight against piracy in Ghana’s textile industry. The Goldkeys technology, is part of a new campaign to end the age-long canker in the local textile industry of Ghana. The new technology will help textile dealers to authenticate original textile products by attaching scratch-labels with code on the packs of product.
According to Selorm Branttie, the Strategy Director of mPedigree, the adoption of GOLDKEYS to protect GTP waxprint and other high value textile brands marks a new high of innovation in a sector that has historically been a major job creator and leading light of Ghanaian manufacturing. The Goldkeys technology was launched in a new campaign nicknamed OGA (Original, Genuine, Authentic) is in collaboration with Premium African Textiles, owners of GTP, Vlisco and Woodin Textiles. The campaign comes at a time when government has constituted a task force to fight piracy which is said to be eroding gains made in the textile industry.
The task force which gained notoriety for seizing pirated textiles and burning them was at some point disbanded by the ministry. Stephen Badu, Marketing Director of Premium African Textiles, emphasised in a speech at the launch of the campaign that his company was committed to breaking ground in the use of the latest technology to ensure that their customers secure the full value of the product they purchase. He said that as a brand that cuts across several markets beyond Ghana, Premium African Textiles aims for international standards, and that the company cannot allow anything to interfere with its focus on quality. mPedigree is convinced its Goldkeys technology would help fight piracy in the textile industry.
SOURCE: Yarns&Fibers
The second edition of the International Textile Fair (ITF), UAE’s premier platform for fashion, home textile fabrics, and clothing, would be held from April 26 to 27, 2015, at the Dubai international exhibition and conference centre. This season, ITF is collaborating with distinguished fashion and trend experts to support regional designers with exclusive workshops and seminars on trend and colour forecasts for Autumn Winter 2016. The format is beneficial to design students and younger designers who can benefit from information otherwise confined to global textile shows.
ITF 2015 has teamed up with the prestigious colour and trend-forecasting agencies, Pantone and Nelly Rodi respectively, offering updated industry insight to visitors of the show. The organizers also plan on an extremely interactive fair with creative zones placed within the show area featuring modest fashion designs and wearable art, according to reports. This will be an exclusive trade only event that will showcase pre-collection autumn/winter highlights. ITF 2015 Dubai aims to attract various agents in the industry to make them meet and greet as many suppliers as possible. It serves as a platform for agents to conduct B2B meetings with textile traders all across the world and create better business relations.
The trade event is expected to attract international large-scale textile producers and distributors to cater to the booming regional textile requirements. This one-of-a-kind platform would allow the Middle Eastern designers and garment retailers to access some of the largest global manufacturers of fabrics and prints. ITF 2015 would bring together over 200 exhibitors from Italy, Portugal, Turkey, India, China, Indonesia, Japan, Korea, and other international markets. ITF’s show director, Mr. Dilip Nihalani said, “Shows like ITF are held regularly in cities like Paris, Milan and New York and it gives us great pride to launch a show of this calibre in Dubai. The show injects additional zeal to the regional textile sector, as international players build new ties and establish business alliances with local and regional players.” UAE is the world’s fourth largest trading centre of fashion and apparel, with the presence of about 150 apparel manufacturing companies that account for about 5.5 per cent of the world’s annual textile and clothing sales.
SOURCE: Fibre2fashion
Indonesian government is planning to apply existing tax allowances to labour-intensive industries that include garment industry in an effort to reach its 2-million-a-year job-creation target. However, at the moment the allowance applies to just 129 business sectors, ranging from plantations to real estate. Investment Coordinating Board (BKPM) deputy chairman Azhar Lubis after a meeting with industry officials said that they really need the investment in the labour [-intensive] industries, including garment, footwear and furniture. If they don't give [a tax allowance] to them, they [investors] may relocate to other countries.
In 2012 a tax policy was enacted that slashed taxable income to 30 per cent of overall investment realised over six years; sped-up depreciation and amortisation; charged an income tax of up to 10 per cent for offshore taxpayers; and carried forward losses from five years to 10 years. The industry ministry's director-general for base manufacturing industries, Harjanto, said that the tax allowance should be made more accessible to downstream industries ineligible under the current system. At present, for example, the tax accommodation applies to textile businesses, but excludes the garment industry. They may require greater flexibility as their new orientation is to absorb labour.
The labour-intensive industry covers firms that employ at least 200 workers and whose labor costs account for 15 percent of total production costs; they include manufacturers of textiles and garment, food and beverages, tobacco, leather and leather products, footwear, toys and furniture. Harjanto added that in addition to the tax allowance, his office has proposed a restitution of taxes for firms in export-oriented industries to encourage them to use locally sourced raw materials.
Such an incentive would be needed to entice investment in the industrial sector, where there is stiff regional competition. Investment in labour-intensive industries trended upward between 2010 to 2014, rising by between 20 and 40 percent annually, with 1,528 projects realized in 2014 making up 15 per cent of total domestic and foreign direct investment. However, industrial growth did not trigger increased labour absorption, which raised concerns among policymakers; in fact the number of workers in the labour-intensive industry tumbled, falling from 337,305 workers in 2011 to 203,732 workers last year.
SOURCE: Yarns&Fibers
The demand of New Zealand for an upgrade and expansion of the Free Trade Agreement with China, in the light of the China-Australia FTA has led to the visit of New Zealand's Trade Minister Tim Groser to China on February 28. The minister held talks aimed at expanding the free trade agreement. “The FTA continues to serve us well with strong bilateral trade flows,” Groser said, before meeting Chinese Trade Minister Gao Hucheng. The meeting was the first preliminary discussion on areas where potential improvements can be made, added Groser.
Spurt in Trade
Very recently, the customs authorities of the two countries agreed to establish mechanisms to enhance trade facilitation under the existing FTA, reports Tax News. The New Zealand-China trade pact was signed in 2008 and that later led to the doubling of bilateral trade and New Zealand's exports to China quadrupled. The New Zealand Government said the FTA had provided the two countries with institutional structure and enhanced official relationships to support broader development of the nations' economic relationship. The total exports of New Zealand to China in 2014 accounted for one-fifth of New Zealand's annual global exports, and China is New Zealand's largest source of imported goods.
Meanwhile, New Zealand’s leading Chinese-New Zealand business and trade organisation, the New Zealand China Trade Association or NZCTA has appointed DLA Phillips Fox partner Martin Thomson as its new chairman. Martin is an expert in foreign direct investment into New Zealand, and advises a number of Chinese organisations having interests in New Zealand, according to a press release. “New Zealand has so much to gain from knowing and understanding China better,” said Thomson. While economies around the world, including the Chinese economy, have fluctuated in 2014, New Zealand is still experiencing demand from China, he said.
Pact with Australia
In another development, New Zealand signed an MoU with Australia for sharing criminal history of potential candidates hired for employment. This helps in keeping track of an applicant's past. The pact will help New Zealand employers to request criminal history checks in Australia, reports 3 News. The bilateral meeting between Prime Minister John Key and Australian PM Tony Abbott led to the MoU. The Australian PM made an official visit to New Zealand recently.
SOURCE: The International Business Times
Commerce Minister Gao Hucheng said on Tuesday that China and South Korea will officially sign a bilateral free trade agreement in the first half of this year. The pact, currently written in English, is being translated into Chinese. Gao said the document will first be reviewed by the National People's Congress and released to the public after receiving legislative approval. China and South Korea initialed the bilateral free trade agreement at the end of last month. Negotiations on the China-South Korea FTA were concluded last November, after both sides started the FTA talks in May 2012.
SOURCE: The ECNS
