|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1189.23 |
USD/Ton |
-0.41% |
|
VSF |
1842.17 |
USD/Ton |
0% |
|
ASF |
2430.30 |
USD/Ton |
0% |
|
Polyester POY |
1198.95 |
USD/Ton |
-0.34% |
|
Nylon FDY |
2948.76 |
USD/Ton |
0% |
|
40D Spandex |
6885.85 |
USD/Ton |
0% |
|
Nylon DTY |
5711.21 |
USD/Ton |
0% |
|
Viscose Long Filament |
1482.48 |
USD/Ton |
-0.54% |
|
Polyester DTY |
2705.73 |
USD/Ton |
0% |
|
Nylon POY |
2576.12 |
USD/Ton |
0% |
|
Acrylic Top 3D |
1425.78 |
USD/Ton |
0% |
|
Polyester FDY |
3256.60 |
USD/Ton |
0% |
|
30S Spun Rayon Yarn |
2559.92 |
USD/Ton |
0% |
|
32S Polyester Yarn |
1895.63 |
USD/Ton |
0% |
|
45S T/C Yarn |
2867.75 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2025.25 |
USD/Ton |
0% |
|
T/C Yarn 65/35 32S |
2478.91 |
USD/Ton |
0% |
|
40S Rayon Yarn |
2689.53 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2592.32 |
USD/Ton |
0% |
|
10S Denim Fabric |
1.58 |
USD/Meter |
0% |
|
32S Twill Fabric |
0.99 |
USD/Meter |
0% |
|
40S Combed Poplin |
1.34 |
USD/Meter |
0% |
|
30S Rayon Fabric |
0.72 |
USD/Meter |
0% |
|
45S T/C Fabric |
0.78 |
USD/Meter |
0% |
Source: Global textiles
Note: The above prices are Chinese Price (1 CNY = 0.16202 USD dtd. 11/03/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The International Monetary Fund (IMF), which in its January review predicted India pipping China to be the fastest-growing major economy in 2016-17, improved its outlook of the country’s economy. The IMF said the growth would strengthen to 7.2% in FY15 and further to 7.5% in FY16, based on the Central Statistics Office’s revised GDP estimates. India’s GDP, the IMF had said in January, would expand 6.3% in 2015-16 and 6.5% in 2016-17
An IMF release issued on Wednesday, in the backdrop of the IMF’s latest annual customary Article IV talks with New Delhi, said the economy was “reviving”, but said that for the trend to continue, the country should revitalise the investment cycle and accelerate structural reforms. The post-talks staff report was prepared prior to the release of new CSO numbers, which said as per the new series with 2011-12 as the base, real GDP growth (at market prices) would accelerate to 7.4% in 2014-15, making India the fastest-growing large economy in the world.
The government’s estimate of the GDP growth (at market prices) for FY15 is 7.4% and between 8-8.5% for FY16, after it changed the methodology, captured efficiency better and shifted the base year to 2011-12. “(IMF) staff views the medium-term 4% inflation target set out by the Urjit Patel committee report as broadly appropriate… Staff supports further efforts to enhance the monetary framework along the lines set out in the Patel committee report, including increasing the operational autonomy of the RBI, institutionalisation and setting the target zone for headline CPI inflation and establishment of a monetary policy committee and accountability framework,” stated IMF.
While public and private investment looked stronger, the investment activity continued to be held back by structural and supply-side constraints, said Paul Cashin, IMF mission chief for India. He added that bolstering the financial sector and further financial inclusion would support growth, but cautioned that spillovers from weak global growth, global financial market volatility were among the external risk factors, while weak corporate balance sheets and worsening bank asset quality were negatives on the domestic front. Referring to the CSO’s new GDP numbers, Cashin said: The revised growth figures support our view that economic recovery in India is under way, albeit pointing to a somewhat faster pace than we, and others, previously believed.”
SOURCE: The Financial Express
The rupee is trading strong against most major currencies. The Real Effective Exchange Rate (REER) for six-currency trade-based weights was at an all-time high of 124.34 in February. However, the high REER is hurting exports. Reserve Bank of India (RBI) data issued on Tuesday showed the merchandise trade deficit ($39.2 billion in the December quarter or Q3) had widened from the earlier quarter, due to a larger decline in export (7.3 per cent) than in import (4.5 per cent). In year-on-year changes, too, the trade deficit in Q3 widened due to a decline in exports (one per cent), while imports rose (4.5 per cent). “The high REER indicates the rupee is strong against almost all major currencies, except for the dollar. This is hurting our exports," said Anindya Banerjee, currency analyst, Kotak Securities.
The rupee ended at 62.78 to the dollar on Wednesday, after opening at 62.84 and trading in a range of 62.88 to 62.70. “The rupee is headed towards 63.50 a dollar in the immediate future. I am referring to the time frame of three months. Due to concerns of a hike in interest rates in the US, funds are moving out. We have seen volatility on the downside for the equities market,” said Naveen Mathur, associate director (commodities and currencies) at Angel Broking. The rupee is also expected to weaken because RBI has been mopping dollar flows attracted by domestic markets. Its net dollar purchases from the spot market rose to a near seven-year high in January to $12.14 bn, a level earlier seen in January 2008, when it had amounted to $13.63 bn.
RBI’s foreign exchange reserves hit an all-time high of $338.08 bn for the week ending February, showed data issued last Friday. The rise in the week was $3.89 bn. RBI Governor Raghuram Rajan had recently said an excessively strong rupee was undesirable and the central bank would act to check any volatility in the currency's value. “By the middle of this month, the rupee might weaken further because there will be dollar demand on account of defence-related payments,” said Sandeep Gonsalves, foreign exchange consultant and dealer, Mecklai & Mecklai.
Meanwhile, the 10-year bond yield climbed to the highest level in almost two months, ahead of retail inflation data to be issued on Thursday. It is believed that inflation had marginally inched up for February, compared with the previous month. The yield on the 10-year benchmark bond ended at 7.76 per cent on Wednesday, the highest since January 14, compared with Tuesday's close of 7.75 per cent.
SOURCE: The Business Standard
To revive the handloom industry and protect the interests of weavers, the Weavers’ Protection Committee are wanting separate bank to cater to their needs. Hence, they have urged the government to take step for establishing an exclusive bank. Yemmiganur and Adoni towns were predominantly inhabited by weaver families and they are leading a miserable life since the collapse of the cottage industry. The association drew the attention of the government to the need for improving the designs and quality in order to tap the export market. Service centres were desired to provide raw materials at a subsidized cost and also train the weavers in the latest skills. This was stated by association leaders M Ramachandra, K Mallesh and Bhimesappa in their representation to Handloom Minister Kollu Ravindra.
A polytechnic was sought in Textile and Handloom Technology at Yemmiganur to promote the industrial activity in the area and produce skilled labour needed for the industry. It urged the Minister to enlarge the scope of Textile park by introducing value addition activities like dyeing, warping, sizing units and finally fabric manufacturing. The Association also urged the government to apply NREGS scheme to support weavers by granting them wages under the scheme.
SOURCE: Yarns&Fibers
Even as the International Monetary Fund (IMF) says the proposed goods and services tax (GST) will improve tax compliance and enhance economic growth by 1-1.5 per cent over time, it finds the structure of the indirect tax regime in India complex. “The GST design being contemplated is... fairly complex, with a dual administration arrangement that involves the tax authorities of both the Centre and states separately taxing a single transaction,” says the Fund in a report on India. To a Business Standard query on this, Thomas Richardson, an author of this subject in the report, said the proposed structure of GST would require the Centre to coordinate with 30 states. It would also be administratively challenging because state tax officials did not have experience in taxing services, said Richardson, also a senior resident representative of IMF in India.
According to the Constitutional Amendment Bill on GST, pending in the Lok Sabha, both the Centre and states will levy the new tax on a common pool of goods and services. Earlier, the 13th Finance Commission, headed by Vijay Kelkar, had mooted a single GST structure, with the Centre imposing GST and allocating the funds to itself and states. However, the idea found no favour with the empowered group of state finance ministers on GST. The Fund says issues that will require further work include crediting across inter-state borders, settlement of revenue sharing, and building capacity in states to tax services.
Nonetheless, IMF points out, a well-functioning GST will enhance tax compliance and boost GDP growth, perhaps by as much as 1-1.5 per cent. It refers to a National Council of Applied Economic Research (NCAER) report on GST’s impact on GDP expansion. However, GST may not add substantially to the government’s revenue in the near term, as it will replace a number of central and state-level indirect taxes. Further, the Centre is expected to guarantee, for a limited time, compensation to states losing revenue, it says. IMF also points to the need to expand the direct tax base by improving administration on the basis of the recommendations of the Tax Administration Reform Commission (Tarc), headed by Parthasarathi Shome. It says there are only about 40 million direct taxpayers, both corporate and individual.
SOURCE: The Business Standard
Noting that the India-ASEAN trade was well below potential, a top government official today said the regional comprehensive economic partnership (RCEP) pact -- expected to conclude later this year -- will help boost trade to $200 billion by 2022. "The FTA in goods has helped us but now we have signed the comprehensive FTA, which is going to conclude later on this year. Only three countries have ratified from ASEAN. We are waiting for the rest of the ratifications. We think it (conclusion of RCEP) might be towards October". "Our aspiration is to take ASEAN-India trade to USD 200 billion by 2022, and the RCEP negotiations, which are currently underway will also contribute to this," Secretary East in the External Affairs Ministry Anil Wadhwa said.
The implementation of the ASEAN-India Free Trade Agreement (FTA) in Goods was signed in 2009. The agreement has translated into a significant increase in bilateral trade, which has risen from under USD 44 billion in 2009-10 to over USD 74 billion in 2013-14. "The negotiations for the RCEP would be completed by this year-end. The conclusion of these agreement will go a long way in boosting bilateral trade and investments, which is currently much below the potential," Deputy Secretary General, ASEAN Secretariat Dr AKP Mochtan said while addressing the Delhi Dialogue here.
RCEP is a proposed comprehensive free trade pact among 10 ASEAN countries -- Brunei, Cambodia, Indonesia, Laos, Myanmar, the Philippines, Malaysia, Singapore, Thailand, and Vietnam, and six partners with which they have free trade agreements (FTAs), including Australia, China, India, Japan, South Korea and New Zealand. The pact seeks to include goods, services, investments, competition and intellectual property and is targeted to be concluded this year. "The trade level is below our potential and we hope that the FTA in Goods, when reviewed, will lead to better efficacy and results.
"The signing of the agreements on Trade in Services and Investment last September and their expected entry into force later this year will give a much-needed boost to our economic engagement. It will hopefully also rectify the trade and investment balance, which is currently somewhat in favour of ASEAN," Wadhwa said. Asked about India's expectations from the discussions with ASEAN countries in the Delhi Dialogue, Wadhwa said: "There are 2 or 3 main outcomes that we expect. We want to see some proposal about future direction and trade between India and ASEAN countries." "We also want to hear something about the services and investment agreement and how both sides can take advantage of that. We want to put this in our vision document 2016-21, which we are drawing up with ASEAN and which is in the final stages," he said.
SOURCE: The Economic Times
India has expressed the hope that the Asean-India Maritime Transport cooperation agreement, on which India has started negotiations, will be finalised by the end of the year, External Affairs Minister Sushma Swaraj said on Wednesday. Delivering the keynote address at the inaugural session of Delhi Dialogue VII, the Minister pointed out that some progress has been made in implementing the trilateral highway project which proposes to provide seamless connectivity from Moreh in Manipur to Mae Sot in Thailand via Myanmar.
“We have also started negotiations on an India-Myanmar-Thailand Transit Transport Agreement to address soft connectivity issues,” the she said, adding, “We also expect that the Asean-India Agreements on Trade in Services and Investment signed last September will enter into force later this year. This will complete our Free Trade Area with Asean and bring greater economic integration between our countries.” Delhi Dialogue is India’s Asean-centric Track 1.5 forum where policymakers, along with others from academia and think tanks, from India and the Asean Member States, exchange ideas and perspectives on how to build on the existing partnership.
SOURCE: The Hindu Business Line
The Chhattisgarh Government to provide livelihood for people residing in rural pockets of the state is planning to massively increase production of Kosa-Silk. Chief Secretary Vivek Dhand has written letters to all district collectors in this regard. A committee would be formed in every district to implement the plan. In fact, the Chhattisgarh Government is drawing up an elaborate five-year plan for promotion of Kosa-Silk production in the State. All district collectors are requested to prepare a report on production prospects of Kosa and Silk in their respective regions.
The Chief Secretary stated that priority should be given to plantation of Kauha ( Arjun) and Saja saplings for promoting Kosa-Silk production. He said that the officials must identify nurseries in advance for proposed plantations during the forthcoming monsoon season. Dhand said that Kosa-Cocoon production would be profitable when the training for threads and weaving is given at the site of Kosa production.
The Chief Secretary has directed the officials to promote plantation of Kosa saplings and select location for the nurseries. Besides this, State Horticulture Department on the regular basis will host technical and training programme for the persons involved in the Kosa and Silk trade. He also directed to constitute women self help groups (SHGs) under National Rural Livelihood Mission to promote production Kosa and Silk in the State. It may be mentioned that Chhattisgarh now has one ‘Raw Material Bank’ for Tussar silk established in Raigarh district, according to the 2013-14 annual report of the Union Ministry of Textiles. The primary objective of the ‘Raw Material Bank’ is to ensure economic and fair price for the primary Tussar Silk growers, it stated.
In Chhattisgarh, Silk farming as become an additional source of income for the farmers of insurgency infested Bastar district, officials informed. Taking benefit of the silk development schemes of the Village Industries Department of the State government, the villagers of the district have proved it by their hard work, officials stated. Abundant production of Tussar Kosa cocoons has been taken up in the natural Saal forests of the district. Besides, Shahtuti silk is cultivated in the villages. The Silk Directorate has been providing jobs to 300 families, working as various self-help groups (SHGs), in the Tussar Seed Production Centre, in Chapka village of the district. Every year, about 12 lakh Tussar (Kosa) silk cocoons bred on Arjun trees in the 68-hectare area of the Tasar Seed Production Centre.
With this, beneficiaries of 60 families get additional income of about Rs24,000. Besides, about 250 other families are linked with this Tassar Seed Production Centre, which take seeds from here and cultivates kosa cocoons on the natural Saal forests. Arjun saplings were planted in the 10-acre land of Silk Directorate in Bade Garvand village, in which the self-help group (SHG) Ma Vamandei Kosa Krimi Palan had been farming Tasar Kosa.
The Silk Centre operated in Bade Marenga village of the district is also playing an important role in making villagers self-reliant economically. In 30-acre land of this Centre, which is about 20 years old, about half-a-dozen women self-help groups have been farming silkworm on the Shahtut plants. Every year Mulberry silk cocoons worth Rs7.5 lakh are prepared here. This amount is deposited directly in the account of women self-help groups. In another Centre, silk thread production works are done through Matka pulling system, in which 22 beneficiaries are working. As such, the Centre has become bread-earner for 50 families. In 2010-11, the officers of Silk Directorate, by organising awareness camps in villages, had imparted training to the villagers in producing ‘Raily Kosa’. Thereafter, by launching a campaign with the assistance of the villagers, 25 lakh butterflies were released in Saal forests. The Chief Secretary has also directed to constitute district-level a Committee comprising of Panchayat Chief Executive Officer, District Forest Officer, District Silk Officer, Gramudhoy Officer, District Manager( Industry), Agriculture Department officer and officials of banks.
SOURCE: Yarns&Fibers
Even as the government is looking to revive domestic economy, the International Monetary Fund (IMF) has cautioned it against companies’ weak balance sheets, government-run banks’ deteriorating asset quality, and external shocks — all of which might impede the recovery. In its country report on India, under Article IV of its agreement, IMF also advises the government to look at the quality of fiscal consolidation by augmenting tax collections and reducing subsidies, instead of lowering capital expenditure. Though the report was prepared on February 13 — before the Union Budget for 2015-16 was presented on February 28 — it says the target of narrowing the Centre’s fiscal deficit to three per cent of gross domestic product (GDP) by 2016-17 could be challenging. The Budget deferred the timeline for this target by a year.
At a time when there are talks that India might clock up to 8.5 per cent economic growth rate next financial year, compared with the projected 7.4 per cent this year, thanks to new GDP data, IMF’s projections seem to temper some of the exuberance. Its estimates are based on GDP at factor cost (excluding indirect taxes), a parameter not used in official projections any more. The international body has projected India’s economy to annually grow at the rate of 6.3 per cent to 6.7 per cent in the next five years. That is lower than the average annual GDP expansion of eight per cent seen in the five years preceding the global economic slowdown of 2008. By the revised methodology for calculating GDP, and taking 2011-12 as the new base year (against the earlier 2004-05), IMF projects India’s economy to grow 7.2 per cent in 2014-15 and 7.5 per cent in 2015-16. Both rates are lower than the government estimates — 7.4 per cent projected for 2014-15 in the advance estimates and 8.1-8.5 per cent pegged for 2015-16 by the Economic Survey.
IMF attributes the slower projected growth rate to the presence of supply-side bottlenecks and structural challenges. It assumes no substantial legislative changes while making these projections. Some, however, see this as a little unreasonable, given that several reform Bills are under consideration in Parliament. The report also has a word of praise for the Narendra Modi-led central government. It says the new government, coming to power on expectations of economic reforms, has initiated these. Diesel price deregulation, raising of natural gas prices, labour market reforms and those related to coal are some such initiatives. But IMF warns that “much remains to be done to raise potential growth, in areas of reforming factor and product markets, many of which are on the concurrent list, and thus will require consensus building to implement”.
The Fund says credit growth is anaemic at present, reflecting weakened balance sheets of public-sector banks (PSBs) and lower demand for bank credit among companies. These are headwinds to growth. It says any further deterioration in PSBs’ asset quality could constrain their credit supply. It attributes asset-quality issues to weak economic growth in the past and delays in implementation of infrastructure projects. IMF pins its hopes on capital markets (both corporate bonds and equities) to help contribute to financing growth. It also points to corporate vulnerabilities, saying the share of loss-making companies and those with a leverage ratio above two in total debt increased respectively to 22.9 per cent and 31.4 per cent during 2013-14, though the share of firms with interest coverage ratio below one fell by 2.5 percentage points to 13.8 per cent.
Quoting the Reserve Bank of India’s annual report for 2013-14, it says infrastructure, textiles, engineering, metals & products, chemicals, and mining accounted for 36 per cent of bad assets as of March 2014, subject to greater stress. It also points to unhedged funds of companies. India’s representative at IMF, Rakesh Mohan, says in a statement on IMF report that though the macroeconomic situation is improving, some challenges to putting the economy back on a sustainable high-growth path remain. He, along with senior advisor Janak Raj, says investment activity remains weak as some segments of the corporate sector are overleveraged and its related impact shows on banks’ balance sheets. “A full-blown recovery of the private sector is thus being restrained. Fiscal consolidation could also have some impact on the speed of economic activity. Our authorities are, therefore, trying to strike a fine balance between supporting the recovery and pursuing a prudent fiscal policy,” the statement says.
Though India’s external vulnerabilities have moderated since September 2013, due to effective policy actions and strengthened external buffers, risks remain, says IMF. The Fund adds the spillover of a volatility in the global financial market, including from unexpected developments in the course of US monetary policy normalisation, could be very disruptive for India. The warning assumes importance against the backdrop of the US reporting robust job data for February, sparking off talks of a withdrawal of its bond-purchase programme. In their interactions with IMF, Indian authorities, however, said fundamentals of India’s economy were stronger, reserves were higher, and markets seemed to be distinguishing India from other major emerging-market economies. But they also recognised risks, including those from lower global growth and higher oil prices stemming from geopolitical events.
In the event of external volatility, IMF recommends exchange-rate flexibility as a key shock absorber; it will allow an orderly depreciation of the rupee, with judicious forex intervention in both spot and forward markets, and through liquidity provision through swaps. Though inflation has dropped substantially, IMF advises RBI to continue maintaining a tight monetary stance, as supply-side issues of inflation are yet to be sorted out. RBI, though, has cut the key repo rate twice recently. The Fund prescribes a tight monetary stance in the event of volatility in external fund flows as well, to make it costlier to short the rupee, to temporarily bolster the capital account position, and to contain the inflationary impact of an exchange-rate depreciation. The report also talks of the monetary policy framework and inflation targeting. An agreement for this, though, has already been signed between the finance ministry and RBI; the constitution of this monetary policy committee remains to be worked out. IMF says the target of keeping inflation in the band of four per cent (plus/minus two per cent) requires ramping up of food supply, in line with a strong consumption demand, especially given that food items have a high weight on the consumer price index.
SOURCE: The Business Standard
Fears regarding revenue loss for State governments and higher tax burden on tax payers under the proposed Goods and Services Tax are not justified as adequate counter measures have been provided, said Shaktikanta Das, Revenue Secretary, while addressing a CII meet on the Budget. Tax rates under the proposed Goods and Services Tax should not be higher than the prevailing rates as input credit is available across the value chain. Even inter-State supply of goods has been addressed through the IGST mechanism, he said.
No hike in GST
While the GST rates are yet to be finalised, it will not be higher than the prevailing taxes where manufactured goods attract 24-26 per cent tax including a basic excise of 12 per cent and Value Added Tax of 12 to 14 per cent, he said. The Centre is committed to shifting to GST from April 1, 2016, he said. On revenue loss, he said similar concerns were expressed when VAT had replaced the general sales tax regime. But for the entire country, the VAT compensation paid out was just about ₹33,000 crore. Also, provision has been made for compensation over a five-year period and to specifically support manufacturing States with a 1 per cent origin based tax with a two-year sunset clause. Also, GST is a tax buoyant measure in the long term, he said. He said the underlying principle of the Budget was reviving the investment climate and increasing employment generation.
One key element of attracting investments was the taxation policy and easing tax administration. The Budget announcement to bring down corporate tax in stages to 25 per cent from 30 per cent is to enhance competitiveness of Indian industry and attract investments. This cannot be done in a single year as exemptions have to be phased out and revenue loss taken into consideration, he said. The road map for doing away with exemptions will be finalised this year. This will remove one major hassle as tax litigations largely centred around exemptions and concessions, he said. The reduction in corporate tax will benefit small industries as the MSME units do not have the ability to avail themselves of tax concession measures.
On the necessity for a new law regarding black money, he said the Centre will introduce a Bill in the first leg of the current Budget session. This will plug loopholes regarding foreign assets and provide for freezing equivalent value of assets within India. The Swiss Government has agreed to negotiate with India on Automatic Exchange of Information and validate information on banking and non banking data.
While India had received information from the French Government on 628 account holders in HSBC Bank, the Swiss view it as ‘stolen data’ and refused to share information. But following a meeting by an Indian delegation last October when it was clarified that some of the names also have come out as part of an independent investigation, the Swiss Government has agreed to share details in such cases, he said. Venu Srinivasan, Chairman and Managing Director, TVS Motor Company, welcomed the Budget announcement to set up a Micro Units Development Refinance Agency, a financial institution to support small units. MSMEs generate 40 per cent of organised employment and account for about 40 per cent of exports. The sector needs to be nurtured with a “light touch and hassle free environment.”
SOURCE: The Hindu Business Line
A decline in diesel prices and lack of cargo from the manufacturing sector led to truck rentals falling by as much as 4.5% month-on-month in February, according to data available with the Indian Foundation for Transport Research Foundation (IFTRT). Truck rentals could have fallen further but adequate supply of fruit and vegetable cargoes prevented this from happening. The reduction in freight charges is likely to reduce retail prices of goods and commodities, like fruits and vegetables, which are likely to benefit end consumers.
Freight charges on the Bombay-Delhi route, the busiest in the country, fell by 3.8% to R58,200 per round trip. Transportation cost in the Delhi-Guwahati route, the most expensive in the country, fell 4.43% to R99, 200. Truck rentals, diesel, diesel prices, Indian Foundation for Transport Research Foundation, Freight charges, Bombay Delhi route. On February 3, diesel prices were reduced by R2.25 per litre as international crude prices dropped, which resulted in declining truck rentals on major routes. Diesel prices were increased by 61 paise per litre in the middle of February but truck operators refrained from passing on the increased cost to customers as there wasn’t an adequate supply of cargo.
Sanjay Singh, senior research fellow at the IFTRT, says that though food inflation has softened, cost of manufactured goods is still high, which is impacting availability of cargoes for truck operators. “Activity in the manufacturing sector, which provides 70% of total cargo, did not show any signs of revival. But at the same time the cost of operating truck fleets decreased over a period of time, so truck owners passed on the benefit to consumers,” explained Singh. Fleet owners also appear to be gearing up to replace older trucks with new ones as the economic activity is expected to pick up going forward.
According to Umesh Revankar, CEO, Shriram Transport Finance, truck fleet owners are buying vehicles in an anticipation of a pick-up in mining activity following the completion of an auction whereby coal blocks are being allocated metals, mining and power companies afresh. The mining of iron ore in the country, which had come to a virtual halt over the last couple of years, is also slated to pick-up with the government working towards framing a clear policy governing all mining activities in the country.
“Our truck finance business has gone up 7-8% quarter-on-quarter in the October-December period. There has been some improvement in fleet utilisation as bulk goods transportation has gone up. Growth in heavy vehicle sales will continue in the next year as well,” Revankar said. Though the sale of medium and heavy commercial vehicles has increased, fleet operators say that are certain roadblocks like toll tax and entry taxes in different states, which are impeding optimum utilisation of trucks, according to Navin Kumar Gupta, general secretary, All India Motor Transport Congress. Though benign in February, a substantial hike of R3.70 per litre in diesel prices on March 1 is expected to increase truck rentals by 4.5% to 5.5% for the current month, which can potentially push up prices of essential commodities.
SOURCE: The Financial Express
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$ 55.01 per barrel (bbl) on 11.03.2015. This was lower than the price of US$ 55.93 per bbl on previous publishing day of 10.03.2015.
In rupee terms, the price of Indian Basket decreased to Rs 3451.88 per bbl on 11.03.2015 as compared to Rs 3506.81 per bbl on 10.03.2015. Rupee closed weaker at Rs 62.75 per US$ on 11.03.2015 as against Rs 62.70 per US$ on 10.03.2015.
The table below gives details in this regard:
|
Particulars |
Unit |
Price on March 11, 2015 (Previous trading Day 10.03.2015) |
Pricing Fortnight for 01.03.2015 (Feb 12 to Feb 25, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
55.01 (55.93) |
57.84 |
|
(Rs/bbl |
3451.88 (3506.81) |
3598.80 |
|
|
Exchange Rate |
(Rs/$) |
62.75 (62.70) |
62.22 |
RC/Rk/Daily Crude oil price- 12.03.2015
SOURCE: PIB
The government-set review committee has started its review on three more garment factories where the International Labour Organisation-appointed inspection teams found structural faults and recommended the committee for next course of action immediately. The review committee comprised of representatives from the government, Accord, Alliance, BUET, BGMEA and BKMEA on Friday reviewed a factory located in Chittagong and asked the factory authorities for load management immediately. At the same time the review panel asked the factory owner to conduct Detailed Engineering Assessment within the next six weeks.
The inspection teams have sent their critical findings on the three garment factories — Fashion Export International in Chittagong, Eraf Composite at Fatullah and Mujib Fashion at Siddhirganj in Narayanganj — to the review committee. Syed Ahmed, inspector general of the Department of Inspection of Factories and Establishments, told New Age on Sunday that the review committee had asked the Fashion Export International owner to remove unauthorised structure from the factory rooftop.
After conducting DEA the necessary corrective action plan will be provide to the factory, he said. According to Syed, the two other factories will be reviewed on March 12. The two companies namely TUV-SUD Bangladesh Pvt Ltd and Veritas Engineering and Consultant hired by the ILO have recently started safety assessment in the garment factories that are not included on the list of the EU and North American retailers’ assessment programmes. Earlier, Bangladesh University of Engineering and Technology signed an agreement with the ILO to asses the factories that remains out of preview of the retailers programmes. Since November 2013, the BUET team had inspected about 500 garment factories and referred two factory names to the review panel.
SOURCE: Yarns&Fibers
The Bangladesh Denim Expo is returning to Dhaka and will be held on May 11-12, 2015 shocasing the best denim and resources from Bangladesh and beyond. “This show features denim mills, laundries, finishers and the entire denim supply chain, with the previous expo in November drawing more than 2,500 visitors,” a press release from the organisers informs.
According to the organisers, the event is an opportunity for international fashion professionals to visit Dhaka and experience the value, quality and fashion available in Bangladesh. Exhibitors include Absolute Denim from Thailand, Raymond Uco from India, A&E from USA, Garmon from Italy and Bangladesh mills like Partex and manufacturer-laundries such as Denim Expert. The Expo also features a trend seminar from leading forecaster WGSN, a dedicated Trend Zone and an invitation-only fashion show and dinner.
Mostafiz Uddin, founder of Bangladesh Denim Expo, says: “Bangladesh is the second largest supplier of denim goods to Europe, and the third largest to the USA and this expo showcases our passion for denim.” “By pulling together at this professional event, we can lift up standards in Bangladesh and upgrade the international perception of our apparel industry,” he added. The Bangladesh Denim Expo not only aims to grow the denim trade in Bangladesh, but also to encourage better business practices and raise living standards of Bangladeshi people. Surplus funds from the show will be channeled into a seed fund for a Denim University in the country to train workers and promote knowledge about the jeans business.
SOURCE: Yarns&Fibers
Worries of the Punjab based textile industry are increasing due to merely four to six hours a day gas supply to the captive power plants (CPPs) despite a clear-cut instruction of uninterrupted supply by the Prime Minister Nawaz Sharif. The industry circles have criticised the Sui Northern Gas Pipelines Ltd (SNGPL) for not following the government's decision regarding gas supply to textile units, which constitute 70 percent of the total capacity in the country.
Meanwhile, the press reports regarding 64 percent increase in gas tariff by early April has further panicked the millers at large, fearing a negative impact on textile industry. Chairman APTMA S M Tanveer said the Punjab based textile industry is not only being deprived of gas supply but also the power supply. The industrial units in other parts of the country are not facing situation like this, therefore, the energy cost is lower there against the cost accrued by the textile units in Punjab. He urged the government to ensure uninterrupted gas supply to the captive power plants in Punjab and also avoid any further increase in gas tariff for the industry.
SOURCE: The Global Textiles
Aksa the world’s leading producer of acrylic fibre will implement new health and safety standards at its plant in Yalova, in north-western Turkey, which will go beyond the requirements of national regulations. It will become the country’s first chemical company committing itself to the best international practices in the industry. The European Bank for Reconstruction and Development (EBRD) will promote higher standards and greater efficiency in Turkey’s fast-growing chemical industry, with a €50 million loan to Aksa.
The loan will finance the company’s far-reaching 2015-17 capital expenditure programme, which includes a series of environmental, health and safety, and resource efficiency improvements as well as investments in the research and development of new high-value-added products, according to EBRD. In addition, the EBRD loan will finance the construction of a wastewater treatment facility. The facility, which will also be used by other companies nearby, will reduce wastewater discharge in the region and increase the amount of recycled water. This is particularly important given the firm’s proximity to the Sea of Marmara and the issue of water stress in the area.
Frederic Lucenet, EBRD Director for Manufacturing and Services, said that the EBRD’s investment will help the company pioneer the highest international health and safety practices, raising the bar for Turkish industry.” With the new standards and greater efficiency, Aksa will use less energy and fewer resources while recycling more water. EBRD are pleased to be able to support this leading producer in its commitment to developing and sharing innovative solutions which can make Turkish acrylic fibre production more efficient, more environmentally friendly and even more competitive on the global market.
Cengiz Taş, General Manager of Aksa Akrilik, said that this significant investment demonstrates Aksa’s high corporate social-responsibility values and is a historic step for the entire Turkish chemical sector. They will upgrade health and safety standards at theirr plant in Yalova, the largest acrylic production facility in the world, and will build the biggest communal wastewater treatment plant in the region to increase water efficiency.
The EBRD’s technical and financial support is critical for the process:
Established in 1968 by Turkish textile manufacturers to meet the growing demand for acrylic fibre from the country’s textile industry, Aksa grew to become the global leader in the sector. The acrylic fibre it produces is used in textile industries worldwide. Akkök Holding A.Ş. has 39.6 per cent stake in the company, while 37.2 per cent of shares are publicly traded on Borsa Istanbul. The EBRD has previously provided a US$ 50 million loan to Aksa to finance energy efficiency improvements and product development aimed at boosting its operational efficiency. The Bank started investing in Turkey in 2009 and currently operates from offices in Istanbul, Ankara and Gaziantep. In 2014, Turkey became the Bank’s largest single recipient with new investments worth €1.4 billion. To date, the EBRD has invested over €5 billion in the country across more than 140 projects in infrastructure, energy, agribusiness, industry and finance. Improving the competiveness of Turkish firms by investing in higher standards and innovation is one of the EBRD’s priorities in the country.
SOURCE: Yarns&Fibers
Growth in China’s investment, retail sales and factory output, missed forecasts in January and February and fell to multi-year lows, leaving investors with little doubt that the economy is still losing steam and in need of further support measures. The figures came a day after data showed deflationary pressures intensified in the factory sector in February, reinforcing expectations of more interest rate cuts and other policy loosening to avert a sharper slowdown in the world’s second-largest economy.
Industrial output grew 6.8 per cent in the first two months of the year compared with the same period a year ago, the National Bureau of Statistics said on Wednesday, the weakest expansion since the global financial crisis in late 2008. Retail sales rose 10.7 per cent, the lowest pace in a decade and missing expectations for a 11.7 per cent rise. Fixed-asset investment, a crucial driver of the Chinese economy, rose 13.9 per cent, the weakest expansion since 2001 and compared with estimates for a 15 per cent gain.
“Activity data surprised the market on the downside by a large margin, suggesting that China’s first quarter GDP growth could likely fall to below 7 per cent,” ANZ economist Li-Gang Liu said in a research note. “In our view, the extremely weak data at the beginning of the year suggest that China needs to engage in more aggressive policy easing, and we see that a reserve requirement ratio (RRR) cut will be imminent,” he said, adding that stimulus measures rolled out since last year seem to have had limited effect. “Fixed asset investment will likely face even more challenges,” economists at Credit Suisse said in a note this week, adding that crackdowns on corruption and shadow banking have heavily squeezed spending by local governments.
Sluggish factory activity reinforces expectations that China’s economic growth will slow to a quarter-century low of around 7 per cent this year from 7.4 per cent in 2014, even with expected additional stimulus measures. “Local officials and executives at state owned enterprises are more worried about their jobs than investment ... The central government is pushing out more investment projects, but with the aim of partially offsetting losses in local investment, rather than accelerating growth.”
China combines its January and February data releases for investment, retail sales and factory output to minimize distortions from the Lunar New Year holiday, which fell in late January last year but in mid-February this year. Sluggish factory activity reinforces expectations that China’s economic growth will slow to a quarter-century low of around 7 percent this year from 7.4 percent in 2014, even with expected additional stimulus measures. Power generation rose 1.9 percent in January and February from a year earlier, well below 3.2 percent seen in all of 2014. Yin Weimin, minister of human resources and social security, cautioned this week that China’s labor market also faces greater pressure. Employment fell more in January and February than in the same period last year, he said, while adding that he was confident China can still create more than 10 million jobs this year.
BUCKLE SEAT BELTS
The Chinese economy has had a rough ride in the last 15 months as a property downturn compounded slackening growth in foreign and domestic demand and persistent industrial overcapacity. A widening corruption crackdown also has weighed on everything from investment to retail sales. Policymakers have cut interest rates twice since November, and in early February reduced the amount of cash that banks must hold as reserves (RRR), freeing up fresh liquidity to flow into the economy to offset rising outflows of capital. But because those adjustments so far have been largely defensive in nature, economists say, they haven’t translated into lower real interest rates or increased investment. Chinese companies are cautious about expanding in the face of weak business prospects, and bankers are wary of a spike in non-performing loans.
With consumer inflation hovering near the government’s "vigilance level" of around 1 percent, analysts expect the central bank to lower reserve requirements and interest rates again to head off a potential deflationary cycle, in what would be its biggest easing campaign since the global crisis. The central bank has singled out the rise in real interest rates on the back of cooling inflation as a further drag on the economy, especially as many companies are struggling with heavy debt levels and end-user demand remains weak. "Double-digit industrial production levels will be a thing of the past," said Chester Liaw, an economist at Forecast Pte in Singapore. "It is highly unlikely that retail sales will hold out for long above the 10 percent mark as well."
SOURCE: The Business Standard
