|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1121.99 |
USD/Ton |
-1.43% |
|
VSF |
1872.16 |
USD/Ton |
0.09% |
|
ASF |
2446.20 |
USD/Ton |
0% |
|
Polyester POY |
1174.18 |
USD/Ton |
0% |
|
Nylon FDY |
3049.60 |
USD/Ton |
0% |
|
40D Spandex |
6930.90 |
USD/Ton |
0% |
|
Nylon DTY |
3294.22 |
USD/Ton |
0% |
|
Viscose Long Filament |
5764.88 |
USD/Ton |
0.08% |
|
Polyester DTY |
1443.26 |
USD/Ton |
0% |
|
Nylon POY |
2837.59 |
USD/Ton |
0% |
|
Acrylic Top 3D |
2592.97 |
USD/Ton |
0% |
|
Polyester FDY |
1378.03 |
USD/Ton |
0% |
|
30S Spun Rayon Yarn |
2576.66 |
USD/Ton |
0% |
|
32S Polyester Yarn |
1859.11 |
USD/Ton |
0% |
|
45S T/C Yarn |
2886.52 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2005.88 |
USD/Ton |
0% |
|
T/C Yarn 65/35 32S |
2478.82 |
USD/Ton |
0% |
|
40S Rayon Yarn |
2707.13 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2609.28 |
USD/Ton |
0% |
|
10S Denim Fabric |
1.14 |
USD/Meter |
0% |
|
32S Twill Fabric |
1.00 |
USD/Meter |
0% |
|
40S Combed Poplin |
1.35 |
USD/Meter |
0% |
|
30S Rayon Fabric |
0.77 |
USD/Meter |
0% |
|
45S T/C Fabric |
0.79 |
USD/Meter |
0% |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16308 USD dtd.31/03/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The Modi government’s first foreign trade policy (FTP) to be announced on Wednesday will outline a comprehensive five-year (FY16-20) export strategy with incentives for exporters, including interest subventions and catalysts for domestic sourcing in sync with the ‘Make in India ‘drive. The policy comes at a time when export growth contracted 15% in February, reporting a negative growth for the third consecutive month, and the WTO revised the global trade growth for 2015 to 4% from 5.3% earlier.
Of the R5,092 crore Budgeted grants for the commerce ministry for FY16, R4,135 crore is earmarked for “foreign trade and export promotion,” up 8% y-o-y. Of this, sources said, R1,650 crore is meant for interest subvention (of 3%) on export credit for all sectors. Cost of credit for exporters, at an interest of around 12-15%, is very high compared with around 5% in South East Asia, making it a case for continuation of the interest subsidy scheme. Since the interest subvention scheme had lapsed on March 31, 2014, the expectation is that the interest subsidy will be with effect from April 1, 2014. Many banks have already passed on the interest subsidy amount to exporters expecting RBI will pass on to them the interest subsidy given by the government once it is announced in the FTP.
Total shipment in April-February 2014-15 was $286.58 billion, an increase of a mere 0.88% from $284.07 billion in the same period last fiscal. Though the year-end target is $340 billion, exporters say shipments are likely to reach only around $325 billion. Due to the worsening global situation, the cycle from procurement of raw material till realisation of payment is increasing from the earlier 3-6 month to 9-12 months resulting in higher costs (including those incurred in the form of interest on export credit) for exporters.
Exports of services, including the IT/ITeS sector, may also get a boost from the FTP to be unveiled by commerce minister Nirmala Sitharaman. Duty credit scrips in the Served From India Scheme may be made transferable. Under SFIS, service providers are entitled to duty credit scrips at 10% of free foreign exchange earned in a financial year, and the entitlement is calculated on the basis of net free foreign exchange earned. These scrips can be used to offset the duty on items the exporter imports. Currently, due to non-transferability of these duty credit scrips, most service exporters are neither able to use them nor able to sell them to any merchandise importer.
SOURCE: The Financial Express
With Tamil Nadu Pollution Control Board issuing notices to the scattered textile processing unit for polluting groundwater in the process of bleaching and dyeing due to which they are facing closure. Madurai District Tiny and Small Scale Industries Association (MADITSSIA) is going to facilitate a textile processing cluster near Kariyapatti in Virudhunagar district. It will be the biggest cluster in Tamil Nadu at a cost of Rs. 250 crore.
Southern districts textile processing cluster private limited, promoted by around 400 family-run textile manufacturers of Madurai, Sivaganga and Virudhunagar, will have 36 state-of-the art bleaching and dyeing units, at Pottakulam and Thamaraikulam villages, off Kariyapatti. According to MADITSSIA panel chairman for cluster development KR. Gnanasambandan that the scattered units which are facing closures need to move out and adopt better technology to run the show.
The State and the Centre have also given the in-principle consent for the park under the Integrated Processing Development Scheme of the Union Ministry of Textiles. The special purpose vehicle formed for setting up the private industrial park, has bought 100 acres of land. MADITSSIA established in 1974 caters to the needs of the District wide Tiny & Small Scale Industries. It arranges buyer seller interface through exhibitions and fairs, and also by effective liaisoning among industrial associations, industrial houses and goverment departments and agencies.
SOURCE: Yarns&Fibers
The Foreign Trade Policy, scheduled to be unveiled tomorrow, should safeguard special economic zones, re-introduce interest subvention, promote value-added products and expand the scope of coverage of the present schemes, CII said today. Sharing its wish-list for the much-awaited policy, the industry body said the focus must be on promoting value-added products and strengthening India's foothold in bigger economies like US and EU where India has relatively low share in total trade in comparison to China and other smaller emerging economies.
"Interest rates in India are among the highest in comparison to major economies, which acts as a big roadblock for Indian exporters. The government should reintroduce interest subvention scheme of at least 3 per cent which lapsed last April," CII said. Pitching for broadening the coverage of schemes, CII said infrastructural bottlenecks are making exports to prominent trade markets uncompetitive and it is advisable to extend FMS benefits to prominent trading partners like the US. "Special Economic Zones, where over Rs 2 lakh crore have been invested, contribute around 30 per cent of the country's total exports and provide sizeable employment, need attention on immediate basis. It is ironical that instead of Industry going to SEZ, they are looking at getting denotified and moving out from SEZs," the industry body said.
Contending that imposition of Minimum Alternate Tax (MAT) on book profits of units operating in SEZs has made the units unviable and unattractive, CII suggested that MAT should be abolished on such units. Moreover, it said, duty drawback on exports to SEZ should be credited to exporter's bank account similarly as exports through ICES (Indian Custom EDI System) without the need to submit physical documents.
CII further said that most of the duty drawback rates are currently low and do not adequately support and compensate exporters for taxes and duties paid by them, therefore, the Government should announce one time increase of 1 per cent on the new drawback rates. Moreover, it said the Government should extend Focus Product Scheme (FPS) to cover engineering products which are primarily labour intensive.
The new Foreign Trade Policy, scheduled to be unveiled tomorrow, will focus on promoting service exports and giving fillip to the manufacturing sector as part of the government's 'Make in India' campaign. The FTP, which is being announced at a time when India's exports are declining, may extend interest subsidy scheme and other incentives for labour intensive sectors such as leather and handicrafts. Besides services sector, it would focus on standards and branding of products and also take care of World Trade Organisations's rule and free trade agreements of India.
SOURCE: The Economic Times
Most states may be struggling to get special economic zones, or SEZs, off the ground, but in Tamil Nadu they are thriving. Of the 199 operational SEZs in the country, 39 are located in the state, making it the top SEZ destination in the country. Tamil Nadu's ranking got a boost after Andhra Pradesh, which earlier had the most number of SEZs, was divided into two last year. Now the new state of Telangana, along with Maharashtra and Karnataka, occupies the second spot, each with 25 SEZs, while Andhra Pradesh has been relegated to the third spot with 19 SEZs.
What is more, Tamil Nadu has also overtaken Karnataka in the volume of exports from these economic zones to take the second spot after Gujarat in 2014-15. While Gujarat exported goods worth Rs 1,07,602 crore, Tamil Nadu sent Rs 35,847 crore worth of merchandise abroad. What has given the southern state a head-start when it comes to SEZs is its foresight in introducing a policy for SEZs way back in 2003, much before the Centre came up with its own SEZ Act and Rules in 2005. The state government, through its organisations like the State Industries Promotion Corporation of Tamil Nadu and the Electronics Corporation of Tamil Nadu, played an active role in setting up SEZs in Chennai, Trichy, Madurai, Salem, Tirunelveli, Hosur and Coimbatore, among other cities. Tamil Nadu's proactive steps came at a time when the IT boom was still in a nascent stage, and this paid off with the state managing to attract big companies like Infosys, Cognizant and others to its SEZs. Among other benefits, land leases were offered for 99 years, signaling to industry that the state was keen on creating long-term value, says Bargavi Natesan, partner, SPR & Co Chartered Accountants. Natesan, along with SEZ expert NR Sharavanan, played an active role in bringing companies like Infosys, Cognizant and Syntel to Tamil Nadu.
However, that selling point is now exhibiting its flip side. Long -term leases have meant that many of these establishments are sitting on the land allotted to them without creating any infrastructure. As a result, many SEZs in Tiruneveli, Naguneri and Hosur are struggling to take off. Then, there are other issues related to obtaining clearances and sanctions. An official, who does not want to be named, says, "This is a major roadblock because of which rapid growth is not taking place in SEZs." The smaller companies have been hit hard as a result. Large IT companies can develop their own infrastructure and mid-size companies can lease expensive rented spaces inside a privately developed SEZ, but the smaller ones - those with fewer than 250 employees - are left with little choice as they can neither afford costly rentals nor build their own infrastructure.
Analysts says one way out of this mess is to rope in private players to develop SEZs in Tier II and III cities. This would require the state to offer a helping hand in the form of fast-track and single-window clearance, and empowering the development commissioners of SEZs to act as labour commissioners so that labour-related issues can be resolved at the SEZ level itself. The demand for SEZ remains high in the IT business, say Anita Arjundas, managing director & CEO of Mahindra Lifespace Developers, which set up Mahindra World City across 1,500 acres near Chennai. Almost half of these have been taken up by IT-related companies. Due to continued growth in software exports, Nasscom, the trade association of the Indian IT industry, predicts Tamil Nadu will be one of the key hubs for the business. But the tax benefits that IT industry enjoyed earlier have now been diluted. Many believe it is simpler to set up offices outside SEZs, where there is more flexibility, than inside an SEZ. As far as manufacturing is concerned, the demand for exports is not strong, and there are little or no tax advantages of being in an SEZ, says Arjundas.
SOURCE: The Business Standard
As the removal of MAT and DDT is unlikely, the Commerce Ministry has initiated the exercise to facilitate ease of doing business for special economic zones (SEZs) to revive the interest of investors. As part of the initiative, the ministry is considering steps to further improve the ease of doing business for the developers and units of SEZs. Among several measures, it is considering to empower the Development Commissioners (DCs) of such zones to reduce paper work.
The Commerce Ministry's request to remove minimum alternate tax (MAT) and dividend distribution tax (DDT) was not entertained by the Finance Ministry in the Budget. "Now it is difficult that the Finance Ministry would remove MAT and DDT. So the ministry would have to work on improving the ease of doing business for these SEZs," a senior government official told PTI. It is also mulling to empower the unit approval committees (UACs) so that a developer or unit won't have to come every time to the Board of Approval (BoA) for permissions and approvals.
Currently, a unit in SEZs has to approach the BoA, chaired by the Commerce Secretary, for small things like constructing additional gates or bringing a new co-developer. The efforts would help in further strengthening the single window clearance mechanism of UACs headed by DCs. "The ministry would soon convene a meeting of senior officials of the states including Maharashtra, Gujarat and Tamil Nadu where the numbers of SEZs are more, to discuss the matter. DCs will also attend the meeting," the official added. So far 491 proposals for SEZs have been formally approved by the government. Presently, 199 zones are operational.
The maximum of 36 SEZs are operational in Tamil Nadu, followed by 25 each in Karnataka, Maharashtra and Telangana, 19 in Andhra Pradesh and 18 in Gujarat. The industry has been complaining that MAT and DDT on SEZs have dented the investor sentiment and also implementation of the scheme. In 2012, government had imposed 18.5 per cent MAT on the book profits of SEZ developers and units. SEZs, which are major export hubs, contribute about one-third to the country's total exports. They provide employment to about 15 lakh persons.
SOURCE: The Business Standard
With the Modi Government hoping to pass the Goods and Services Tax (GST) bill in Parliament’s budget session, transportation and logistics companies are preparing for changes in their operations. Industry experts feel GST will not only make them more efficient, but also reduce their actual requirement for commercial vehicles. The GST is expected to be implemented by fiscal 2016-17 and is aimed at reducing multiple taxes. Inter-state sales transaction will become tax neutral and the whole country become one single common market without any state borders.
Logistics companies will, therefore, see a major change in transportation of goods and location of warehouses. In the past, the warehouses were set up for avoiding state taxes at the cost of operational efficiencies. Vivek Ganguly, Director (Investments), Nine River Capital, an investment banking firm, said that because of trade barriers such as entry taxes, local body taxes, octroi and other hurdles, trucks are sitting idle 30 to 40 per cent during their delivery schedule. “When you remove these barriers, you will have 30 to 40 per cent, less downtime for vehicles, which effectively would mean companies would need lesser number of vehicles for carrying out the same business. Post-GST implementation, there would be a dip in the replacement demand for vehicles, at least for a period of 12 to 18 months,” Ganguly said.
There would also be a move for procuring higher tonnage trucks due to the new efficiencies brought about by the GST. Companies will consolidate small warehouses, which were set up for avoiding taxes. Trucks with load capacity up to 20 tonnes would be replaced by larger trucks for carrying additional cargo, Gangulay said. Logistics costs in the country are about 14 per cent of GDP, while in developed countries they are 9 per cent. In the logistics sector, only 10 to 20 per cent of the companies are organised. Rest of the space is taken by small fleet and warehouse operators, which leads to tremendous inefficiencies in operations.
Bal Malkit Singh, former president of All India Motor Transport Congress, said on an average, a truck runs about 220 km a day. After GST is implemented, it could run up to 315 km, efficiencies of the logistics companies will also increase, leading to a reduction in demand for new trucks. Managing Director of DHL Supply Chain, Vikas Anand, said in the post GST scenario, location of the warehouse would be more driven by the market forces of demand and supply. In the coming years, the smaller warehouses of 15,000 to 20,000 sq ft would be merged and larger ones of over 2 lakh sq feet would be set up. GST will transform the way goods are transported within the country. Today, because of sizes of warehouses are very small, corresponding smaller inefficient trucks with a carrying capacity of nine to 20 tones are being used. In the near future, trucks with 40 tonnes plus carrying capacity will run on the highways, which will service large warehouses, he said.
SOURCE: The Hindu Business Line
Decline in output of crude oil and natural gas pulled down the growth of eight core industries to 17-month low of 1.4 percent in February. Barring coal, cement and electricity, other 5 core sectors - crude oil, natural gas, refinery products, fertilizer and steel - recorded negative growth during February this year. The output had expanded by 6.1 percent in February 2014. The growth was 1.8 percent in January 2015. The previous low logged by the core industries was in October 2013 at (-) 0.6.
The eight sectors contribute 38 percent to the overall industrial production, a parameter that the Reserve Bank takes into account while framing its monetary policy. Production of crude oil and natural gas contracted by 1.9 percent and 8.1 percent respectively in February this year, according to the data released by the Commerce and Industry Ministry. Refinery products, fertiliser and steel expansion declined by 1 percent, 0.4 percent and 4.4 percent respectively. However, coal, cement and electricity output grew by 11.6 percent, 2.7 percent and 5.2 percent respectively.
For the 11-month period (April-February) of 2014-15, the eight sectors have grown by 3.8 percent as against 4.2 percent in the same period of the previous fiscal. "The slide in core sector growth for the second month in a row...Is disappointing. Lead indicators for IIP growth for February 2015 remain bleak," rating agency ICRA said. Since November last year, the growth rate of the core sector industries is declining. It was 6.7 percent in November 2014, which fell to 2.4 percent in December 2014 and then to 1.8 percent in January.
SOURCE: Zee News
The price of domestic natural gas, which was hiked in November after a gap of more than five years, will be cut 7.6% to $5.18 per million British thermal units (mBtu) effective April 1, as the relevant global benchmark prices remained subdued in the second half of 2014. The revised price, on a net calorific value basis, will be effective for a period of six months.
FE first reported the new price on January 18. The price reduction, the first in history, is despite Indian prices already being among the lowest in the Asia-Pacific and amid the delays in announcing the premium cleared by the Cabinet for gas produced from post-November 2014 discoveries in difficult geographies. A lowering of the gas price, analysts said, would hit state-run ONGC (which produces three-fourth of domestic gas), Reliance Industries and public-sector Oil India.
India’s gas price of $5.18/mBtu is far lower than $11.90 China pays for its gas producers; Indonesia and the Philippines price the fuel at $11 and $10.50, respectively. The revised price from Wednesday is arrived at by applying the Cabinet-approved formula on the select average global prices for the fuel between January and December 2014. The CCEA on October 18 last year approved the formula, after tweaking the Rangarajan formula approved by the UPA government in June 2013. The price is to be revised every six months.
The price and volume data used to calculate the price is of the trailing four quarters’ data with one quarter lag. Apart from cheaper global rates, the drop in gas price is also due to low trading volumes and currency volatility. According to sources, the Directorate General of Hydrocarbons recently submitted its report on the quantum of premium for ultra-deepwater and other difficult-area blocks. The finance and petroleum ministers are expected to take a decision on this soon.
ONGC has decided to put on the back burner the development of its two deepwater blocks where it found natural gas, in the Mahanadi Basin — MN-DWN-98/3 and MN-OSN-2000/2. The firm discovered less than 1 trillion cubic feet of natural gas that is economical only at gas price of around $10.72 to $12.63/mmBtu, more than double the prevailing prices for the hydrocarbon.
SOURCE: The Financial Express
From Wednesday, private sector bank customers will now have to shell out more for financial services, especially for non-maintenance of minimum balance in accounts, as banks including ICICI Bank and HDFC Bank have hiked service charges and penalties. The revised charges, among others, are for non-maintenance of average monthly balance, cash deposit at branches, internet or phone banking pin, and issuance of cheque books.
Increased charges
Major private lenders – ICICI Bank, HDFC Bank, Axis Bank and Kotak Mahindra Bank – have increased charges and penalties. ICICI Bank will charge ₹100 more for non-maintenance of average monthly balance in metros and ₹50 more in semi-urban areas. The average monthly balance requirement for urban and semi-urban customers is ₹10,000 and ₹5,000, respectively. ICICI Bank said it will notify customers by SMS, e-mail, letter, etc that in the event of the minimum balance not being restored in the subsequent month, non-maintenance of MAB charges will be applicable. Kotak Mahindra Bank has increased those charges to ₹300-500 per month from ₹250-400.
In case of HDFC Bank, non-maintenance of minimum MAB customers will be charged anywhere between ₹150 and ₹600 depending on the type of account and the amount maintained. Also, customers will be charged ₹75 for an additional cheque book of 25 leaves. HDFC Bank has also initiated new charges. Any deliverable returned by courier will be charged ₹50 per instance; TIN/IPIN regeneration (requests received at the branch for physical dispatch) will also incur ₹50. RBI has asked banks to inform account holders through email, SMS or letter of the imminent charges when the minimum balance requirement is breached. Further, banks must also give customers a grace period of a month from the date of shortfall before penalizing for the same and the charges must be reasonable.
SOURCE: The Hindu Business Line
Ahead of Prime Minister Narendra Modi's visit to Canada next month, negotiators from the two sides have prepared a road map for a comprehensive bilateral free trade agreement between the two countries which could facilitate Indian textile and pharmaceutical products greater access to the Canadian market besides free movement for Indian professionals. The latest round of talks on a comprehensive economic partnership agreement (CEPA) held last week in Delhi after a gap of nearly two years saw Canada agreeing to put aside contentious issues related to services for later.
Canada, which has a high interest in financial services and telecom, was pushing for a deal to get advantage of all future policy liberalization by removal of market access barriers, the so-called 'ratchet approach'. It also wanted to benefit from the bilateral services agreements signed by India in future. India had earlier sternly opposed these demands since they were beyond the WTO's General Agreement on Trade in Services (GATS), leading to a halt in talks last year.
"The two sides agreed to a road map to conclude CEPA as early as possible. Canada showed some flexibility this time, agreeing to keep the contentious demands related to services on the back-burner for the time being and discuss it, maybe at a later stage," a government official said, adding that the two sides exchanged areas of interests for both goods and services during the meeting. India will push for zero duty or tariff reduction for textiles, leather, pharmaceuticals etc, besides easier movement of Indian professionals from IT and ITES sectors. Canada is keen to get greater access for processed food, hydrocarbons related products, minerals, auto components and wine. The next round of talks has been tentatively scheduled for June.
The proposed agreement will look at various aspects including rules of origin, trade facilitation, technical barriers to trade, sanitary and phytosanitary measures, and trade in services. "The proposed CEPA will help ease a lot of regulatory and bureaucratic hurdles and help ramp up business ties between the two nations besides giving a boost to bilateral trade," said Rakesh Nangia, managing partner, Nangia & Co, an advisory firm specializing in international regulations. This is among the first FTAs being negotiated by the Modi government, which took over in May last year. EU-India free trade pact talks are also expected to restart in a few months. CEPA is aimed at cutting or eliminating duties on a large number of products traded between the countries, besides opening up the services sector and facilitating investment proposals. The negotiations were launched in 2010. The two sides had eight rounds of negotiations till 2013, with India seeking movement on services, before progressing on goods.
"Canada does not have a globally competitive manufacturing sector, but has strength in agro-processing, mineral processing, etc, which they would like India to open up for them. In services, it must be keen on construction services. In services India should look beyond Mode 4, movement of professionals and look at audio visual, education, research collaboration, etc," said Arpita Mukherjee, professor, ICRIER. Canada has invested just $550 million in India in the last 15 years against over $3.5 billion by India in the North American nation. Bilateral trade posted a 7.2% growth in 2013-14 over the previous year to reach $5.1 billion.
While India's exports were nearly flat, imports from Canada grew 12.43% during the fiscal, leaving a trade gap of $1.1 billion in Canada's favour. Prime Minister Modi is scheduled to visit Canada in the third and last leg of an eight-day tour beginning in France on April 9. Commerce and industry minister Nirmala Sitharaman met her Canadian counterpart Ed Fast in November last year.
SOURCE: The Economic Times
Globally, depreciation of the euro and the crisis in the euro zone, as well as plummet in international cotton prices has adversely affected export of home textiles and finished fabrics put a majority of home textile producers from Faisalabad in trouble. This is the second time in seven years that home textiles manufacturers from Faisalabad are in the midst of a crisis. As overseas shipments of most home textiles has continued to slump over the last one year, a majority of home textiles producers are compelled to significantly cut their production and some to shut their shop. Domestically, the exporters have run up large losses owing to the rupee’s revaluation and the higher-than-regional energy prices and their shortage.
According to Sheikh Ilyas Mahmood, the chief executive officer of Dawood Exports, the trouble began a year ago when the government forced the rupee to appreciate and cotton prices fell, causing massive inventory losses for the manufacturers. The crisis in the Baltic region on the back of the Russia-Ukraine face-off and the decline in the value of major currencies, particularly the euro, has further compounded the industry’s woes. Exports of home textiles are expected to further decline this year in terms of both their dollar value and quantity, said Mahmood, a manufacturer and exporter of textile fabrics and made-ups.
At least half of the home textile production capacity in Faisalabad has closed down and the other half is in soup. In 2008, several large, debt-laden producers went bankrupt and thousands of jobs were lost because of weakened demand, especially of high-end products, following the global financial crisis. The former chairman of the Pakistan Textile Exporters Association (PTEA) warned that if the crisis in Europe lingers and they don’t get enough business in the next couple of months for their winter requirements, many more factories could face bankruptcies.
The industry cannot come out of the current situation without cooperation from the government. There are many ways that the government can help the industry. One of the ways is by removing the domestic impediments to production and force down production costs. The government should cut power prices to the regional average of Rs8 per unit from the present Rs12 and provide cash subsidy to exporters to keep their cost of production down and help them stay competitive in the international markets. The textile industry cannot survive anywhere without help from the government.
Ever since Pakistan received GSP Plus-related trade concessions from the European Union, India has announced several incentives and cash subsidies for its textile manufacturers to undercut Pakistan’s exports to the EU market. Almost every textile producing country is incentivizing its industry because of the sector’s potential to create jobs and earn foreign exchange. No government uses this industry to collect taxes or generate revenues. PTEA chairman Sohail Pasha concurred with his predecessor’s view and pointed out that instead of helping the industry survive through the current difficult times, the government is creating difficulties for the exporters by withholding their tax and other refunds.
Pasha, whose own overseas shipments have dropped to one-third of their peak, warned of further decline in textile exports if the government did not take action to help it reduce its cost of doing business by reducing energy prices, providing cash export rebates and paying their refund claims. An uncertain energy outlook and the liquidity crunch caused by the delay in the release of their refunds do not let manufacturers make any commitment with their customers even with orders. This makes it difficult to survive and compete with their rivals in the global markets.
The government owes the textile industry Rs67bn: almost Rs45bn in tax refunds and Rs22bn on account of unpaid cash subsidies announced in the previous textile policy. This amount is almost one-quarter of their working capital. Pakistan likely to strike business deals worth $700 million at Textile Asia expo. Textiles technical institute set up provide training for workers
SOURCE: Yarns&Fibers
Propylene prices rose in Europe in the last week ended March 27 from gain in upstream energy prices in the region. However, they stayed stable in the US. In Europe, average prices climbed up by € 20/ton or 2.26 per cent and were quoted at € 905/ton in the last week, as compared to its previous week. In US, due to dull buying sentiments, average prices stayed stable and were quoted at 40 cents/pound in the last week, as against its previous week.
SOURCE: Fibre2fashion
The UK's economy grew at a faster pace than initially estimated last year, revised official figures show. The economy grew by 0.6% in the final three months of 2014, up from the previous estimate of 0.5%, the Office for National Statistics said. The unexpected increase meant growth for the year was 2.8%, higher than the earlier estimate of 2.6%. The revised rate marks the highest pace of annual growth since 2006, when the economy grew by 3%. An expansion in production and services as well as household spending helped to drive the increase, the official data suggested. But the biggest contribution to the revised figure was a strong performance of exports, the ONS said. The revised figure was revealed alongside data showing that the UK's current account deficit - the gap between the income paid to, and received from, the rest of the world - narrowed in the final quarter of last year.
The deficit in the three months to December was £25.3bn, down from the record-high of £27.7bn recorded in the previous quarter. But for the year as a whole, the deficit widened to 5.5% of GDP, marking the largest annual deficit since records began in 1948. UBS economist David Tinsley said the large deficit largely reflected weakness in UK overseas earnings "which may turn around if the eurozone recovery heats up". "Still, regardless of the cause, funding a deficit of this size makes the UK vulnerable in a year when political uncertainty is relatively high," he added. Separately, UK consumer confidence rose to its highest level in more than 12 years in March, a survey from researchers GfK showed. And separate figures from the ONS showed that the financial well-being of UK households improved last year. Overall, economists suggested the figures boded well for the UK economy this year. The UK's economic performance, in the round and as it touches people, is definitely improving - and looks good compared with competitor nations, especially those across the Channel.
GDP or national income per capita is 4.8% above where it was at the election - although it is still 1.2% below its peak at the start of 2008, before the Great Recession and financial crisis. And if we measure our well-being by how much we spend, then things are definitely better - since household consumption per head is 3% higher than it was in the middle of 2010. That said, many would argue that our recovery remains unbalanced and far too dependent on consumer spending: that we are experiencing "same-as-it-ever-was" growth, of the boom-and-bust variety. "Given the outlook for consumer spending, the Office for Budgetary Responsibility's forecast of 2.5% for 2015 looks a touch pessimistic, and could come under some upward pressure in the coming months," said Ben Brettell, senior economist at Hargreaves Lansdown.
SOURCE: The BBC
With the prospect of a default looming in Greece, Prime Minister Alexis Tsipras is preparing to meet next week with President Vladimir V. Putin of Russia as a European deal to give more aid to Athens falters. The timing has raised questions of whether the visit is an ordinary component of the New Greek government’s multipronged foreign policy, or a pivot toward Russia for financial aid in the event that Greece’s talks with European officials collapse. Negotiations between the struggling Greek government and its creditors stumbled anew on Monday after European leaders said that a reform plan submitted over the weekend to unlock a fresh lifeline of 7.2 billion Euros, or about $7.8 billion, fell short. Greece has warned that it may run out of money soon after Mr. Tsipras meets with Mr. Putin on April 8.
Mr. Tsipras’s visit to Moscow is being billed by Athens as a routine meeting to strengthen the relationship between the countries, which have longstanding political and religious ties. But some Greek officials have suggested that Athens might be tempted to assess whether Russia, which is itself squaring off with Europe over the conflict in Ukraine, could be willing to ride in as a white knight if Europe steps back. “This is an attempt to ratchet up the pressure on the rest of the euro zone to make concessions to Greece,” said Simon Tilford, the deputy director of the Center for European Reform in London. If so, he added, it is a gamble that could backfire. “Flirting with Russia is guaranteed to antagonize the rest of the euro zone,” Mr. Tilford said. “It will make it harder for those in Germany who were arguing for a more conciliatory line toward Greece to keep it.”
Relations between the New Greek government and other European countries have been strained almost since Mr. Tsipras took office. He has vowed to do away with the harsh austerity terms attached to Greece’s €240 billion international bailout. The government struck a deal on Feb. 20 with European officials to extend the bailout and unlock a further €7.2 billion in aid for Athens, provided Mr. Tsipras’s government made the required structural reforms. But creditors said the plans that Greece has submitted so far were inadequate, including a new proposal put forward over the weekend.
In an address to Parliament on Monday night, Mr. Tsipras said that Greece’s list of “short-term measures” to creditors included curbing fuel and tobacco smuggling, checks on bank transfers and fighting sales tax fraud. “It’s time for the ‘haves’ to start paying and for the looting of the middle class and salaried workers to stop,” he said. In the negotiations with the creditors, he said, “We are seeking an honorable compromise with our partners, but do not expect an unconditional surrender.”
Mr. Tsipras noted that a new law making it easier to pay back taxes raised €100 million in a week, but he reiterated that Greece’s debt needs to be restructured for Athens to be able to repay it. With tax revenues falling quickly, Greece will be hard pressed to pay €450 million owed to the International Monetary Fund on April 9, the day after Mr. Tsipras’s visit to Moscow. Most top Greek government officials have rejected suggestions in recent weeks that they might turn to Russia for aid. But others have courted the idea publicly, including Panos Kammenos, Greece’s defense minister. Greece could seek financial help from Russia, China or the United States as a “Plan B” if Germany “remains rigid and wants to blow Europe apart,” he declared last month.
Russia’s foreign minister, Sergei Lavrov, has said that Moscow would consider a Greek request for aid if one is made — an offer that the Russian ambassador to Greece repeated in an interview with Greek newspaper Kathimerini over the weekend. On Monday, the Greek energy minister, Panagiotis Lafazanis, traveled to Moscow to meet with his Russian counterpart and the chief executive of the Russian energy giant Gazprom. As he prepared to leave for Moscow, Mr. Lafazanis lashed out at the European Union and Germany for “tightening the noose” around the Greek economy.
Last month, Donald Tusk, the president of the European Council, said in an interview that Mr. Tsipras had assured him he would not be a “troublemaker” over European policy toward Russia. But few people have forgotten how the new Syriza-led government in Greece, just days after it was elected in January, denounced European Union sanctions against Russia over Ukraine. The move took European Union leaders by surprise and threatened to upend Europe’s policy toward Moscow. Facing pressure, Athens quickly reversed its position and joined other countries in a unanimous vote to continue sanctions for Russia.
Still, some officials in Brussels saw Greece’s flip-flop as a bargaining ploy to win concessions from European Union creditors over the terms of Greece’s bailout package. Athens has also talked of turning to China for help if need be. On Friday, Deputy Prime Minister Yiannis Dragasakis met with Vice Premier Ma Kai in Beijing, where both men pledged to strengthen ties between the countries. Mr. Dragasakis also assured Beijing that the Chinese state-run shipping company Cosco could move ahead with a tender for a 67.7 percent stake in Greece’s Piraeus Port Authority, one of the most strategic ports in southern Europe.
Even if Greece were eventually to seek financial assistance from Moscow, Russia’s economy is under pressure amid a collapse in oil prices and the lengthy conflict in Ukraine. It is expected to contract by at least 4 percent this year. While the ruble has been rising in recent days — and the sense that the Kremlin may be getting things under control is increasing — Russia may think twice if Mr. Tsipras were to seek large sums of financial aid, especially if loans risked not being repaid any time in the foreseeable future.
“Moscow could provide a little bit of funding to tide over the Greeks,” Mr. Tilford said. “But it is not in a position to provide the kind of money that Greece would need to stay in the euro zone.” Greece’s European partners have suggested Athens may need to apply for a third bailout this summer, before an additional €7 billion worth of debts to the I.M.F. and the European Central Bank come due. Any new package could be in the tens of billions of Euros, and would most certainly hinge on a string of harsh conditions that Greece would rather avoid. In the meantime, the haggling between Athens and Brussels continues. Greece and its creditors were expected to discuss the latest reforms on Wednesday, although no conclusion is expected during the Easter holiday on whether they will be sufficient to unlock cash.
SOURCE: The New York Times
China’s Yuan has dropped to seventh place among the world’s payments currencies, global transactions organisation SWIFT said on Monday, even as Beijing tries to push greater international use of the unit. The Yuan — also known as the Renminbi — held a 1.81 per cent share in world payments based on value in February, SWIFT said in a statement, down from 2.06pc in January, when it stood in fifth place.
The Swiss franc and the Canadian dollar overtook the Chinese currency last month, SWIFT data showed. It attributed the weaker showing to the “seasonal effect” of the Chinese New Year, when business slows because of a week-long holiday. But the demotion also comes amid mounting worries over China’s slowing economy, though officials have denied strong capital outflows. China keeps a tight grip on the value of the Yuan out of concerns that unpredictable currency inflows and outflows could harm the economy and weaken its financial control. Beijing is seeking to make the Yuan used more internationally in line with its standing as the world’s second-largest economy. Some analysts predict the unit will one day rival the US dollar.
Although the Yuan is not freely convertible, China is in talks with the International Monetary Fund (IMF) for the Washington-based institution to add the Yuan to its basket of reserve currencies. Hong Kong, a special administrative region of China which is considered the business gateway to the mainland, handles more than 70pc of global payments in Yuan, SWIFT said, but the share of other countries is growing. “Broader support by more countries beyond Hong Kong, underlining its international use, suggests the potential for future clearing centres and further development of the currency,” Michael Moon, head of payments for Asia-Pacific at SWIFT, said in the statement.
SOURCE: The Global Textiles
