The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 2 APRIL, 2015

NATIONAL:

 

INTERNATIONAL:

 

Textile Raw Material Price 2015-04-01

Item

Price

Unit

Fluctuation

Date

PSF

1122.13

USD/Ton

0%

4/1/2015

VSF

1878.91

USD/Ton

0.35%

4/1/2015

ASF

2446.50

USD/Ton

0%

4/1/2015

Polyester POY

1174.32

USD/Ton

0%

4/1/2015

Nylon FDY

3049.97

USD/Ton

0%

4/1/2015

40D Spandex

6687.10

USD/Ton

-3.53%

4/1/2015

Nylon DTY

2593.29

USD/Ton

0%

4/1/2015

Viscose Long Filament

1378.20

USD/Ton

0%

4/1/2015

Polyester DTY

3294.62

USD/Ton

0%

4/1/2015

Nylon POY

5765.59

USD/Ton

0%

4/1/2015

Acrylic Top 3D

1443.44

USD/Ton

0%

4/1/2015

Polyester FDY

2837.94

USD/Ton

0%

4/1/2015

30S Spun Rayon Yarn

2593.29

USD/Ton

0.63%

4/1/2015

32S Polyester Yarn

1859.34

USD/Ton

0%

4/1/2015

45S T/C Yarn

2886.87

USD/Ton

0%

4/1/2015

45S Polyester Yarn

2006.13

USD/Ton

0%

4/1/2015

T/C Yarn 65/35 32S

2479.12

USD/Ton

0%

4/1/2015

40S Rayon Yarn

2723.77

USD/Ton

0.60%

4/1/2015

T/R Yarn 65/35 32S

2609.60

USD/Ton

0%

4/1/2015

10S Denim Fabric

1.14

USD/Meter

0%

4/1/2015

32S Twill Fabric

1.00

USD/Meter

0%

4/1/2015

40S Combed Poplin

1.35

USD/Meter

0%

4/1/2015

30S Rayon Fabric

0.77

USD/Meter

0%

4/1/2015

45S T/C Fabric

0.79

USD/Meter

0%

4/1/2015

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.16310 USD dtd. 1/04/2015). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

 

 

Simpler sops to help hit $900-bn export target

The government on Wednesday unveiled a forward-looking and contemporary Foreign Trade Policy (FTP) for 2015-2020, seeking to strengthen merchandise and services exports with a targeted value of $900 billion by 2020. In a drastic change of stance in keeping with global trading norms under the World Trade Organization (WTO), the new FTP sought to consolidate all previous export incentive schemes under two: Merchandise Exports From India Scheme (MEIS) and Services Exports From India Scheme (SEIS).

“The current WTO rules as well as those under negotiations envisage the eventual phasing out of export subsidies,” Nirmala Sitharaman, minister of state (independent charge) for commerce and industry, said while releasing the FTP. “Export-promotion measures have to move towards a more fundamental systemic measure rather than incentivising and depending on subsidies alone. There is, therefore, a need to ensure that our exports and services are internationally competitive. We must focus on quality and standards and produce zero-defect products. Brand India must be synonymous with reliability and quality,” she said.

The MEIS will be targeted for export of specified goods to specified markets and SEIS is meant for export of notified services in place of a plethora of schemes earlier. The MEIS has replaced five existing schemes: Focus Products Scheme, Market-linked Focus Products Scheme, Focus Market Scheme, Agriculture Infrastrucutre Incentive Scrips and Vishesh Krishi Grameen Udyog Yojana (VKGUY).

On the other hand, SEIS has replaced the existing Served From India Scheme (SFIS). The rates of rewards under MEIS will now range from 2 per cent to 5 per cent, from the 2-7 per cent range earlier. On the other hand, under SEIS these will be from 3 per cent to 5 per cent, from the 5-10 per cent range earlier, according to commerce secretary Rajeev Kher. In a big relief for exporters, all scrips issued under MEIS and SEIS and the goods imported against these scrips will be fully transferable. This means that scrips issued under export from India schemes can now be used for payment of customs duty for import of goods, payment of excise duty on domestic procurement of inputs or goods, and payment of service tax.

The minister said, “We must now aim higher. India must assume a position of leadership in the international trade discourse.” “Our biggest challenge is to address constraints not so much externally but internally such as infrastructure bottlenecks, high transaction costs, complex procedures and constraints in manufacturing. This policy is a framework for increasing export of goods and services as well as generation of employment in keeping with the vision of Make in India."

In an effort to push the domestic content requirement, measures have been adopted to encourage procurement of capital goods from indigenous manufacturers under the EPCG scheme by reducing specific export obligation to 75 per cent of the normal export obligation. "The Agreement on Subsidies and the Countervailing Measures of the WTO envisages the eventual phasing out of export subsidies. In the case of India, some sectors may be affected and require rationalisation of support over a period of time. The phasing out and eventual elimination of agricultural subsidies is also one of the key elements of the Doha Development Agenda," underscored the FTP statement.

As far as the coverage of the 3 per cent interest subvention scheme is concerned, which was a long-pending demand of exporters, the government has said it is in the process of identifying the sectors to which the same will be given during the current financial year, for which the Budget has allocated Rs 1,625 crore. "The Budget has allocated Rs 1,625 crore. It will be given to specific sectors at a rate of 3 per cent. We are yet to identify the sectors," commerce secretary Rajeev Kher told reporters.

The FTP also introduced a concept of import appraisal mechanism which will be done on a quarterly basis by the commerce department. In a view to boost exports from Special Economic Zones (SEZs) the government also expanded the benefits under MEIS and SEIS to the units located inside the tax-free zones. "It is now proposed to extend the Chapter 3 incentives (MEIS & SEIS) to units located in SEZs also," said director general of foreign trade (DGFT) Pravir Kumar.

On the issue of imposition of MAT and DDT, Sitharaman said the proposal to remove those was still lying with the finance ministry. Breaking away from tradition, the Modi-led government did away with annual revisions of the policy. The FTP from now on will have a mid-term review after two and a half years, except for exigencies. In an attempt to achieve greater policy coherence and mainstreaming of all export incentive schemes, the commerce department will now direct state governments to prepare their own export strategies based on the new FTP.

SIGNIFICANT ANNOUNCEMENTS

  • Merchandise Export from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) launched. MEIS & SEIS incentives to be available to SEZs, too
  • FTP to be aligned to Make in India, Digital India and Skills India initiatives
  • Duty credit scrips to be freely transferable and usable for payment of custom duty, excise duty and service tax
  • Trade facilitation and ease of doing business by way of online filing of documents and emphasis on paperless trade

WHAT THE GOVT IS LOOKING AT

  • Employment creation in both manufacturing and services
  • Zero-defect products with a focus on quality and standards
  • A stable agriculture trade policy
  • A focus on higher value-addition and technology infusion
  • Investment in agriculture overseas to produce raw material for Indian industry
  • Lower tariffs on inputs and raw materials
  • Development of trade infrastructure and provision of production and export incentive documents

SOURCE: The Business Standard

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25 salient features from new Foreign Trade Policy to push up India's exports

With an aim to make India a significant partner in global trade by 2020, the government on Wednesday unveiled a new Foreign Trade Policy (FTP). Talking about the new policy, which aims at boosting India's exports, Commerce Minister Nirmala Sitharaman said that PM Narendra Modi's pet projects, 'Make in India' and 'Digital India' will be integrated with the new Foreign Trade Policy. The government is pitching India as a friendly destination for manufacturing and exporting goods, and the new policy is being seen as an important step towards realising that goal.

We take a look at some key features of the new Foreign Trade Policy:

  • India to be made a significant participant in world trade by 2020
  • Merchandize exports from India (MEIS) to promote specific services for specific Markets Foreign Trade Policy
  • FTP would reduce export obligations by 25% and give boost to domestic manufacturing
  • FTP benefits from both MEIS & SEIS will be extended to units located in SEZs
  • FTP 2015-20 introduces two new schemes, namely "Merchandise Exports from India Scheme (MEIS)" and "Services Exports from India Scheme (SEIS)". The 'Services Exports from India Scheme' (SEIS) is for increasing exports of notified services. These schemes (MEIS and SEIS) replace multiple schemes earlier in place, each with different conditions for eligibility and usage. Incentives (MEIS & SEIS) to be available for SEZs also. e-Commerce of handicrafts, handlooms, books etc., eligible for benefits of MEIS.
  • Agricultural and village industry products to be supported across the globe at rates of 3% and 5% under MEIS. Higher level of support to be provided to processed and packaged agricultural and food items under MEIS.
  • Industrial products to be supported in major markets at rates ranging from 2% to 3%.
  • Served from India Scheme (SFIS) will be replaced with Service Export from India Scheme (SEIS).
  • Branding campaigns planned to promote exports in sectors where India has traditional Strength.
  • SEIS shall apply to 'Service Providers located in India' instead of 'Indian Service Providers'.
  • Business services, hotel and restaurants to get rewards scrips under SEIS at 3% and other specified services at 5%.
  • Duty credit scrips to be freely transferable and usable for payment of customs duty, excise duty and service tax.
  • Debits against scrips would be eligible for CENVAT credit or drawback also.
  • Nomenclature of Export House, Star Export House, Trading House, Premier Trading House certificate changed to 1,2,3,4,5 Star Export House.
  • The criteria for export performance for recognition of status holder have been changed from Rupees to US dollar earnings.
  • Manufacturers who are also status holders will be enabled to self-certify their manufactured goods as originating from India.
  • Reduced Export Obligation (EO) (75%) for domestic procurement under EPCG scheme.
  • Online procedure to upload digitally signed document by Chartered Accountant/Company Secretary/Cost Accountant to be developed.
  • Inter-ministerial consultations to be held online for issue of various licences.
  • No need to repeatedly submit physical copies of documents available on Exporter Importer Profile.
  • Validity period of SCOMET export authorisation extended from present 12 months to 24 months.
  • Export obligation period for export items related to defence, military store, aerospace and nuclear energy to be 24 months instead of 18 months
  • Calicut Airport, Kerala and Arakonam ICDS, Tamil Nadu notified as registered ports for import and export.
  • Vishakhapatnam and Bhimavarm added as Towns of Export Excellence.
  • Certificate from independent chartered engineer for redemption of EPCG authorisation no longer required.

SOURCE: The Economic Times

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Ease of doing business gets priority in the new FTP

The Centre on Wednesday said that the ease of doing business and digitisation were among the key focus areas in the new Foreign Trade Policy. It said one of its major initiatives is moving towards paperless working in a 24x7 environment. Trade facilitation and ease of doing business is a priority to cut down transaction costs and time, and to make Indian exports more competitive. Recently the number of mandatory documents required for exports and imports was reduced to three, which, the Centre said, was comparable to international benchmarks.

“The focus of the new policy is to support both the manufacturing and services sectors, with a special emphasis on improving the ‘ease of doing business’. I believe, this policy would prove to be a catalyst in upscaling India’s position in global exports,” said Chandrajit Banerjee, Director-General, CII. “Attention has also been paid to simplify various ‘Aayat Niryat’ Forms, bringing in clarity in different provisions, removing ambiguities and enhancing electronic governance,” said a statement by the Commerce Ministry.

Global access

The Centre also said that it has launched an “Approved Exporter System”, to speed up access of manufacturer exporters to international markets. “Manufacturers, who are also status holders, will now be enabled to self-certify their manufactured goods in phases, as originating from India with a view to qualifying for preferential treatment under various forms of bilateral and regional trade agreements,” the official statement said. Some of the other initiatives include setting up of an online complaint registration and monitoring system to assist exporters filing online applications on the DGFT portal or resolving other issues.

DGFT has also recently started the issue of Importer Exporter Code in electronic form (e-IEC). Applicants can upload documents and pay the required fee through net banking and get a digitally signed e-IEC. In addition, it has also started an e-BRC (Electronic Bank Realisation Certificate) project, which will help capture details of realisation of export proceeds directly from the banks. This has facilitated the implementation of various export promotion schemes without any physical interface with the stakeholders. “So far more than one crore e-BRCs have been captured by this system,” the statement said. The Centre has also signed MoUs with State governments for sharing of e-BRC data to facilitate refund of VAT to exporters.

SOURCE: The Hindu Business Line

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New trade policy’s focus is on systemic changes: Sitharaman

Exporters had to wait for six-seven months for the five-year Foreign Trade Policy, but the final blueprint had the “confident support’’ of the Finance Ministry, said Commerce Ministry Nirmala Sitharaman. Addressing the media after announcing the policy on Wednesday, the Minister and Commerce Secretary Rajeev Kher spelled out the finer details.

Edited excerpts:

You have talked about a mid-term review of the policy. Why the shift?

Sitharaman: We are going to have a review after two and a half years because we want to have a consistency in policy. This policy is for five years. We do not want periodic changes or unpredictable changes affecting the overall tenor of the policy. We have now committed to having a mid-course evaluation.

You have set a combined export target of $900 billion for goods and services for 2020. What is the break-up?

Kher: We have deliberately not distributed the returns expected from merchandise and services sectors for the five-year target because we are hoping that with the changes in the services architecture and incentives, services should do better. Therefore, we don’t want to constrain it by putting a target. So, let the merchandise and services compete with each other.

Have the beneficiaries of the replaced schemes been covered under the two new incentive schemes?

Kher: Since the whole exercise was scientifically done, products which may not require the incentives and were given have been ignored. Only those that have qualified have been identified.

Sitharaman: To add to that, the larger guiding principle has been that, to meet the requirement of the World Trade Organisation, all of us agree that changes will take place. The route of facilitation through subsidies and interest subvention alone cannot be a sustainable route for improving trade systems. The focus is to look at systemic changes.

What about the popular interest subvention scheme for exporters?

Kher: The interest subvention scheme has been approved for a period of three years in the Budget for 2015-16 with a provision of Rs. 1,625 crore. Now we have to decide about sectors and get approvals. Selection will have to be timed with the policies. Interest subvention is operating at 3 per cent.

Can SEZs expect more sops?

Sitharaman: Although the request of Minimum Alternate Tax and Dividend Distribution Tax are still with the Finance Ministry, we have extended them the benefits of the new and very comprehensive export incentive schemes. I believe this will revive special economic zones to a large extent.

SOURCE: The Hindu Business Line

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New Foreign Trade Policy proposes new institutions to boost global trade

The new Foreign Trade Policy unveiled today proposed setting up of a host of institutions, including Trade Council and National Committee on Trade Facilitation, to improve India's share in global trade and implement of WTO obligations.  The country aims at increasing its share in world exports from 2 per cent to 3.5 per cent by 2020.  Pursuant to the WTO agreement on trade facilitation, the policy has proposed setting up National Committee on Trade Facilitation. That pact is aimed at easing customs procedure to reduce transactions cost for traders.

The policy said several initiatives are under way for the simplification of procedures and digitization of various processes involved in trade transactions.  Steps are being taken by various ministries and departments to simplify administrative procedures and reduce transaction costs based on the recommendations of two task forces constituted by the Directorate General of Foreign Trade.  The implementation of these recommendations is being actively pursued, the policy said. Commerce Secretary Rajeev Kher said that India is committed to implement the WTO's Trade Facilitation Agreement (TFA).  A National Committee on Trade Facilitation is being constituted for domestic coordination and implementation of the TFA, he said.  The Secretary also said an important consideration while framing the policy was aligning FTP with both India's interests as well its obligations and commitments under various WTO agreements.

In the ongoing Doha Round of trade negotiations, he said, India will continue to work towards fulfilling its objectives and to work with like-minded members to remove any asymmetries in the multilateral trade rules which place a developing country at a disadvantage, such as the rules relating to public stock-holding for food security purposes.  "The current WTO rules as well as those under negotiation envisage the eventual phasing out of export subsidies. This is a pointer to the direction that export promotion efforts will have to take in future, i.e. towards more fundamental systemic measures rather than incentives and subsidies alone," he said.  He also said that specific measures will be taken to facilitate the entry of new entrepreneurs and manufacturers in global trade through extensive training programmes.

"The Niryat Bandhu scheme will be revamped to achieve these objectives and also further dovetailed with the ongoing outreach programmes," Kher said, adding capacity development efforts will focus on export promotion councils and commercial missions. Further, a new institution - Centre for Research in International Trade - is being established not only to strengthen India's research capabilities in the area of international trade, but also to enable developing countries to articulate their views and concerns from a well-informed position of strength. The policy also said that two institutional mechanisms are being put in place for regular communication with stakeholders - the Board of Trade and the Council for Trade Development (CTD) and Promotion. While the Board of Trade will have an advisory role, the CTD would have representation from State and UT governments. "The CTD will be an institution between the Centre and the states with the objective of internalising the thinking and the processes and the participation of state government into central government policy making, implementation and monitoring," Kher said.

SOURCE: The Economic Times

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A bold initiative and an inclusive policy, says India Inc

India Inc has lauded the new Foreign Trade Policy and believes it could achieve the stated export target of $900 billion by 2020. “The policy is inclusive, having spoken about job creation, agriculture, and even mobilising waste for exports. It’s the first time a trade policy has included subjects like the ease of doing business, transaction simplification, speed of approvals etc. so it’s a positive,” said Ajay Shriram, President, Confederation of Indian Industry (CII). He added that the five-year programme focusing on the ease of doing business, labour-orientation and highlighting the importance of special economic zones (SEZs) would bolster the ‘Make In India’ initiative. “Concerted and partnership-based efforts of Government and business would certainly be able to raise India’s share in world exports from the present level of 2 per cent to 3.5 per cent by 2019-20,” said A Didar Singh, Secretary General, FICCI.

Difficult environment

“Against the backdrop of a difficult global trade environment, the new policy is a bold initiative to increase competitiveness of Indian products. The boost to e-commerce and services exports is well-timed and takes into account the shift in the business paradigm,” said Rana Kapoor, President, Assocham. Kapoor noted the significance of States being involved in devising export strategies given their role in increasing or reducing transaction costs. “An incentive to the capital goods sector by bringing flexibility in the export obligation is also a welcome step,” he added.

Meeting targets

“Reaching the $900 billion target will require coordination with Customs and Excise Departments since exporters have a problem with tax refunds. If ease of doing business is taken care of, we can touch at least $700 billion,” said SC Ralhan, President, Federation of Indian Export Organisations (FIEO). India’s total exports amounted to $465.9 billion in 2013-14. Exports slid by over 15 per cent last month year-on-year to $21.54 billion. “We should see a net 1 per cent growth overall, it depends on the March numbers. If the Centre effects these changes, exports can rise by as much as 20 per cent next year,” added Ralhan.

SOURCE: The Hindu Business line

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Industry lauds focus on MSME sector

The Indian Merchants Chamber (IMC) has lauded the government’s emphasis on developing a framework for facilitating exports of goods and services, as well as promoting employment generation. Commenting on the five-year Foreign Trade Policy, IMC President Prabodh Thakker said the introduction of two new schemes: Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS) were steps in the right direction. However, he hoped that the government would continue to have regular interactions with all stakeholders to meet their objectives. “The strategically important MSME sector has been given due recognition. Clusters have been identified based on the export potential of the product for improving the country’s trade balance,”' he said in a statement. He added that the Chamber endorsed the fact that the Directorate General of Foreign Trade would be implementing the Niryat Bandhu Scheme for mentoring new and potential exporters on the intricacies of foreign trade.

EEPC India Chairman Anupam Shah noted that the foreign trade policy would improve ease of doing business, and make Indian products competitive. He added that engineering exports, the biggest contributors to India’s merchandise exports, would get a boost with a host of bold initiatives unveiled in the policy. However, Shah has noted some downsides of the new policy. He said, “Though export benefits for the engineering tariff lines have been reduced, no transition period has been given. Six months of transition period is necessary so that exporters can adjust to the new framework. Further, the interest subvention scheme has also not materialised, which will adversely impact the exports of engineering goods to some extent.” With global trade being buffeted by the rough weather, the policy has given a focus on improving domestic competitiveness, Shah added, like reducing the export obligation to 75 per cent from 90 per cent for the import of duty free capital goods. “The focus is clearly on ease of doing business by initiatives like e-governance and reduction in the transaction costs. Besides, involvement of the states more actively would make a big difference in infrastructure support to the exporting sector,” he said in a statement.

SOURCE: The Hindu Business line

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Make in India: Government launches new campaign to scout for Chinese investments

India today launched a new campaign to scout for Chinese investments under the 'Make in India' initiative with an investor's meeting in Hong Kong, ahead of Prime Minister Narendra Modi's expected visit to China next month. Several top global and Chinese investors, based in Hong Kong, attended the seminar, said Prashant Agrawal Consul General of the Indian Consulate in Shanghai.  The seminar was addressed by the Secretary Department of Industrial Policy and Promotion (DIPP) Amitabh Kant, and officials of the Confederation of Indian Industry (CII).

The investors' seminar is significant as Hong Kong is the gateway for Chinese investments, Farhad Forbes, Vice President of the CII, who led the Indian business delegation at the meet told. Hong Kong has played a major role in routing Foreign Direct Investment ( FDI) into China in the past and it could play the similar role for directing investments to India, he said. Because of its historical background as a former British colony, Hong Kong could make it easy for India to get investments, just as it played a centre for global investments for China, he said.

Forbes said there was very positive response to 'Make in India' campaign as there is lot optimism about the positive change of investment environment in India. He also said India could access big investments for infrastructure development as it is a member of China-backed Asian Infrastructure Investment Bank(AIIB) and the BRICS Bank. Kant will address a similar meeting in Beijing tomorrow, followed by another one in Shanghai on Friday. The meetings comes ahead of Modi's visit planned for May this year which is expected to give a major thrust to China's proposed investments in India.

Ajith Ranade, member of the CII core group on China, said India's youth population and implementation of economic reforms by the Modi government with special focus on manufacturing provide a fertile ground for China to investments. As China has nearly $45 billion trade surplus with India it could invest the same amount of money in India which could also fetch better returns.

SOURCE: The Economic Times

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Tirupur exporters want trade pact with Canada speeded up

Knitwear exporters have appealed to the Prime Minister Narendra Modi to conclude the Comprehensive Economic Partnership Agreement (CEPA) during his visit to Canada later this month. “Canada is a promising market for knitwear exports. The total knitwear garments exports to Canada stood at Rs. 680 crore in 2013-14 and in knitwear exports ranking Canada stands in the 11{+t}{+h}position. The same ranking has been witnessed in the first nine months of the current financial year with a record value of Rs. 502 crore.”

“Competition though has become intense. With competing countries such as Bangladesh and Cambodia, in view of their classification as least developed countries, enjoying preferential treatment in tariff, India is losing the race. “Vietnam’s export to Canada for instance, was far below our volumes in 2009. It has now doubled and growing steadily. Our exports to Canada, on the other hand, have slipped by 31 per cent between 2009 and now.” “It is expected to fall further with withdrawal of the GPT (General Preferential Tariff) entitlement to 72 countries, including India, effective from January 2015,” A Sakthivel, President, Tirupur Exporters’ Association said.

High income zones

“The decision was taken by Canada after these countries were classified as “high income” or “upper middle income” countries by the World Bank for two consecutive years considering that they have had a share of equal to or greater than one percent of world exports for two consecutive years”. Voicing doubt about India’s survival in the huge Canada market, Sakthivel said “expediting CEPA will help enhance knitwear exports to Canada.”

SOURCE: The Hindu Business Line

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India & Jordan to strengthen trade ties

Minister of state for commerce and industry Nirmala Sitharaman and her Jordanian counterpart Maha Ali discussed about increasing cooperation in the areas of trade, industry, standards and specifications, tourism and transport at the 9th Joint Jordanian-Indian Committee session, which met after a gap of almost nine years.

Sitharaman, who was in Jordan earlier this week, added that the 15 % growth in bilateral trade in the past year to around $2 billion is positive and should be built on. The Indian minister, calling for maximising the cooperation between the countries, said that there are possibilities of increasing Jordan’s exports to India and expanding India’s business activities and investments in the Kingdom as well as establishing interaction between small and medium scale enterprises.

SOURCE: The Financial Express

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ATF trade unions sternly oppose move to lease out mill by government

 The trade union of the mills has sternly opposed the government’s move to lease out the State-run Anglo French Textile (ATF) mills to private players. Instead, the trade union has suggested that the government develop a textile park by combining all the three Textile mills -- AFT Mills, Swadeshi Cotton Mills (SCM) and the Bharathi Textile Mills (BTM) -- and produce garments.

AITUC submitted a memorandum to Chief Minister N Rangasamy seeking his intervention for dropping it. V S Abisegham, AITUC general secretary, stated that two-member private party from Northern India visited the mill on Monday and held a four-hour discussion with the management for leasing out the mill. He urged the government to avail funds from the Central government for the purpose. It will also provide employment opportunities to nearly 10,000 women. Abisegam pointed out that the CM just before the elections in 2011, promised modernisation of AFT Mill. When the NTC-run mills - SCM and BTM - were set for closure in 2005, after agitation by trade unions, the government took over.

SOURCE: Yarns&Fibers

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BARC to provide cost effective and lasting solution to treat textile effluents

Perundurai Textile Processors Association is keen to explore scope for use of super absorbents application advocated by technical expertise of Bhabha Atomic Research Centre (BARC) to treat effluent discharged in a cost effective way by tanning and textile units in SIPCOT Industrial Estate. This super absorbent application could provide a lasting solution. The need of the hour is technological intervention with less capital and operating costs, said Association Secretary Suresh Manoharan.

Presently, tanning and textile industries have been facing difficulty in complying with ZLD (Zero Liquid Discharge) norms specified by the Tamil Nadu Pollution Control Board. Earlier this year, all the eight tanning units in the complex had to stop operations due to inadequacy of evaporator in the ZLD system. In the recent past, the TNPCB made it mandatory for the industries to replace their existing solar evaporators with more expensive elevated solar evaporator pans.

Over the years, 20 out of 50 dyeing units had to close down due to high operating costs. Many among the remaining units are also struggling to sustain their operations. According to J. Daniel Chellappa, Senior Scientist, Technical Coordination Wing, Senior Scientist, BARC, with the latest technology to be made available under BARC’s social initiative program, the viability of the industries could be ensured alongside environmental safeguard. Cost-effective intervention was possible at the level of individual industries as well as on a cluster basis. The cost incurred on existing technologies was a main reason for the industries losing out in a competitive scenario. For instance, elevated solar evaporator pans were not only expensive, but also cannot be relied upon during rainy season.

SOURCE: Yarns&Fibers

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International Oil and benzene prices supporting nylon chain, nylon yarn trends up

 Benzene prices have gained 14-16 per cent across regions in March, pushed by an uptick in demand and stronger crude as players in US wanting to open the arbitrage window from Europe amid tighter supply expectations. However, benzene prices were seen easing end March as upstream toluene cooled down while arbitrage window to US remained closed. The week also witnessed a rare reverse arbitrage move. An estimated 20,000 ton cargo was set to arrive in China from the US in March-end. In US, spot benzene moved higher ahead of April contract price while Latin benzene prices tracked regional gains amid thin shipping activity. In Europe benzene jumped amid April contract price negotiations.

Crude oil markets opened the month on the high with US Futures closing the first week at US$50.40 per barrel. It fell to US$47.67 in second week and further to US$44.34 in the third. Prices jumped 5 per cent in the last week on fears that a conflict in Yemen could disrupt cargoes on the neighboring Bab el-Mandeb Strait, where 3.8 million bpd of crude and oil products flow. Houthi rebels made broad gains in south and east Yemen despite a two-day strike led by Saudi to check the Iranian-backed militia's efforts to overthrow President Abd-Rabbu Mansour Hadi. The sluggish price trend added uncertainty to the benzene markets.

For March, Asian benzene marker, the FOB Korea gained 14 per cent to average US$667-668 a ton while North West European benzene barges for delivery 5-30 days forward averaged US$706-707 a ton CIF ARA, up 16 per cent. In US, spot prices were up 15 per cent to average US cents 246.20-246.30 per pound. Caprolactum prices firmed up on the back of tight supply, passable demand and range-bound benzene prices. Asian markers, the SE and FE were up 6-7 per cent in March averaging US$1,632-1,677 a ton. In China, offers for liquid goods were at US$2,245-2,280 a ton and solid goods at US$2,310-2,410 a ton. Sinopec settlement for March was up US$35 from offers at US$2,230 a ton, for liquid, AA-grade. In Europe, a majority of caprolactum contracts were settled at an average increase of Euro 15, compared with an underlying benzene increase of Euro19. Deals which were concluded at the beginning of the month were marginally lower. In US, caprolactum price inched up US$20-30, to US$1,420-1,430 a ton.

Run rates in nylon chip market stabilized and polymerization units were running at around 80 per cent with inventory at around 2 days’ worth. Nylon chip prices inched up as raw material cost held firm on support of firm benzene cost. In non-textile-yarn, cord fabric, fishing net yarn and staple fiber sectors, buying interest for chips was mild, with prices underpinned. Offers for Taiwan-origin nylon chips from major producers were at US$1,968-1,995 a ton for March, up 6-7 per cent from previous month. High end monofilament/engineering plastics grade chips were at US$2,360-2,475 a ton.

In China, the market for nylon textile filament was not yet fully emerged from the holiday, but the general view was that nothing much has changed. Nylon yarn makers were running at 69 per cent capacity, with inventory at around 29 days’ worth, and industrial yarn producers were running at 65 per cent capacity. Filament yarn prices turned upward on rising costs while prices of staple fiber and cord fabric rose cautiously. Overall demand was slow to follow up, with most orders made on demand-basis, lending limited support to yarn makers. In China, semi-dull FDY70D/24F prices were at US$3.00-3.03 a kg while FDY40D were at US$3.34-3.50 a kg, both up US cents 2-4 from February. Monofilament 30D was priced at US$3.09-3.34 a kg, up US cents 9 on the month.

SOURCE: Yarns&Fibers

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LT Textile Cooperatief begins construction of large textile complex in UZbekistan

 A large textile complex to be constructed in Kashkadarya region of Uzbekistan by LT Textile Cooperatief UA, a Dutch textile firm for which the Ministry of Foreign Economic Relations, Investments and Trade of Uzbekistan and LT Textile Cooperatief signed an investment agreement in October 2014. A land area of 30 hectares has been allotted for the construction of textile complex, as well as a number of privileges and preferences have been granted.

The Dutch company will invest at least $55 million in the textile enterprise in 2015-2016 in accordance with this agreement, including $17 million of its own funds, $38 million from foreign banks. The agreement envisaging the organization of the textile production with the capacity of processing 20,000 metric tons of cotton fiber by producing 15,000 metric tons of cotton and mixed yarn per year, was approved by the government of Uzbekistan.

Under the agreement, the enterprise should be provided with modern high-tech and energy-efficient equipment. Moreover, it is also planned to create a specialized service center for the maintenance of the textile equipment. It is planned to commission the complex in November 2016, while the complex itself is expected to start operating in design capacity in Q1 of 2017. Moreover, it is plans to export 80 percent of the enterprise’s products.

The Department of Justice of Uzbekistan’s Kashkadarya province registered the foreign enterprise LT Textile International with $1 million worth authorized capital in late January 2015. Until 2022, the enterprise is also exempted rom customs duties on technological equipment, spare parts and accessories, imported within the framework of implementation of this project. It was previously reported that Uzbekistan until 2016 plans to bring domestic processing of cotton fiber up to 500,000 metric tons, or about 50 percent of the cotton fiber produced.

Currently, about 300 Uzbek textile enterprises process about 40 percent of cotton fiber. The Uzbek textile is supplied to 40 countries. Annually, in average 3.5-3.7 million metric tons of raw cotton is harvested and 1.2 million metric tons of cotton fiber is produced in the republic. Uzbekistan is the sixth producer and third largest exporter of cotton fiber in the world.

SOURCE: Yarns&Fibers

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China-Jiujiang to Add Two Large Textile Projects

Recently, investors from Fujian Province have signed agreements with De'an County in Jiujiang, Jiangxi Province on setting up a knitting project and a weaving project, which will respectively cost CNY 5.2 billion and CNY 500 million. The two projects will cover a land area of 5.3 hectares. After being put into production, they are expected to turn out annual prime business revenue of CNY 2 billion, pre-tax profit of CNY 1.5 billion and offer 500 jobs. The introduction of these two projects will further extend local textile chain. In the coming years, De'an County will focus on spinning, weaving, dyeing & finishing and branded garment projects and constantly transform the industry with new technologies and equipment, especially compact-siro-spinning, compact-spinning and rotor-spinning technologies.

SOURCE: Global Textiles

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European Textile Technology Platform celebrates 10 years

The 10th conference of the European Technology Platform for the Future of Textiles and Clothing (Textile ETP) took place in Brussels from March 25-26, 2015. Over 150 participants from 20 countries witnessed a very broad overview of key textile technologies which moved from research labs into industrial practice or which are expected to do so. “It was an impressive demonstration of how innovative, high-tech and diversified the EU textile and clothing sector has become,” a press release from the Technology Platform informed.

Paolo Canonico, president of the Technology Platform said, “Few people would have predicted this incredible transformation of our sector back in 2004, the year when the Textile ETP was launched.” “It was also the year when the last textile import quotas were phased out and we lost many companies and industry jobs in the following five-year period,” he also said while giving the inaugural address. “However, the companies that have successfully navigated this phase are more competitive and resilient than before with productivity up by 50 per cent and extra-EU exports rising one-third to €42 billion in the last 10 years,” he noted.

Canonico expressed his conviction that the high-tech transformation of the sector would gather further steam and further reinforce the role of the Technology Platform. Clara Torre, director for Key Enabling Technologies, the industrial research part of the EU’s Horizon 2020 research funding program, highlighted participation of textile and clothing sector in EU programmes. She also stressed on the crucial role that the Technology Platform has played in facilitating access to these funding opportunities especially for SME’s as well as enabling collaboration with other sectors. She admitted difficulties in the start-up of Horizon 2020 mainly due to the massive oversubscription of the funding calls and invited the Technology Platform to help finding better ways of funding research.

Dominique Adolphe and Braz Costa, serving also as vice-presidents of the Technology Platform stressed the important role of the academic and applied textile research institutions. According to them, these institutions have ensured that the technologies for industrial breakthroughs for the next 10 years are explored, developed and successfully transferred to industry. They both confirmed that since the launch of the Textile ETP, collaboration between industry and the textile research community has become closer and more constructive. Throughout the two conference days, 20 presentations shared between industry, technology centres and academia explored the most promising new technologies and innovations. These were in areas like sustainable fibres, nanofibres, smart textiles, technical textile applications, advanced fibre and textile processing technologies, digitalisation and new business models.

SOURCE: Fibre2fashion

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Euro zone Manufacturing Activity Picks Up

Manufacturing activity in the euro zone grew more rapidly during March than first estimated and at the fastest pace in 10 months, according to surveys of purchasing managers, while the weaker euro boosted new orders from overseas buyers. The surveys showed that the weakening currency has also raised costs for manufacturers by lifting import prices, but businesses nevertheless continued to cut the prices they charged, an indication that the European Central Bank faces a long struggle to raise the currency area’s inflation rate back to its target of just under 2.0%.

Data firm Markit, which surveys more than 3,000 manufacturers across the eurozone, said on Wednesday that its purchasing managers index rose to 52.2 in March from 51.0 in February. Markit had previously estimated the PMI rose to 51.9. A reading below 50.0 indicates activity is declining, while a reading above that level indicates it is increasing. The pickup in activity wasn’t consistent across the currency area, with France, Austria and Greece registering declines. But it adds to other recent indciations that the eurozone economy has embarked on a modest economic recovery after its faltering return to growth in 2014.

“While it is still far too premature to say “crisis over”—indeed the region still remains several years from returning to equilibrium—we are now seeing a sustainable improvement in the growth outlook,” said Timo del Carpio, an economist at RBC Capital Markets. The ECB on March 9 launched a program of quantitative easing in which it will buy more than €1 trillion ($1.07 trillion) of bonds using newly created money by September 2016. Its main goal is to lift the inflation rate to just under 2%. In March, consumer prices were 0.1% lower than a year earlier.

One effect of the new program has been to hasten the euro’s depreciation against the U.S. dollar and other major currencies, which began in May 2014. Until recently, there have been few signs the weaker euro was boosting output in the currency area. Exports in January were the same as a year earlier, while industrial production fell in the same month. That may be about to change, with the survey of purchasing managers recording the strongest rise in new export orders since April 2014. The rise in new orders has given manufacturers fresh confidence to hire additional workers, which they did at the fastest pace in 43 months. That will help reduce the eurozone’s unemployment rate, which remains near record highs at 11.3%, with a quarter of people out of work in some Southern European countries. “The fact that manufacturers are boosting their payroll numbers at the fastest rate for three-and-a half years indicates optimism that the upturn will be sustained in coming months,” said Chris Williamson, Markit’s chief economist.

Ireland continued to lead the pickup in manufacturing, benefiting from a rise in demand for its exports in the U.S. and the U.K. The Central Bank of Ireland on Wednesday said it expects a recovery in the rest of the eurozone to further boost overseas sales, but added that economic growth will also be supported by stronger consumer spending and investment. The central bank raised its economic growth forecast for 2015 to 3.8% from 3.4%, and said it expects growth to slow only slightly next year, to 3.7%. Separately, figures released by Ireland’s statistics office showed the unemployment rate fell to 10% from 10.1% in March to reach its lowest level since the start of 2009.

The ECB hopes the weaker euro will boost inflation by raising prices of imported goods and services. There were some signs that was beginning to happen, with purchasing managers reporting that the costs their businesses rose for the first time after six months of decline. However, businesses didn’t respond by raising their own prices, instead cutting them for the seventh straight month, albeit at the slowest pace during that period. The euro zone economy’s stronger-than-expected start to 2015 has already led to speculation in financial markets that the ECB may end its bond purchases earlier than planned, or buy smaller amounts of debt.

But in remarks published Wednesday, ECB President Mario Draghi said the goal of the program isn’t just to raise inflation to the target of just under 2.0%, but ensure that it remains there. “We will evaluate the likelihood for inflation not only to converge to levels that are closer to 2%, but also to stabilize around those levels with sufficient confidence thereafter,” he said. His remarks suggest that the ECB will be patient in determining the right time to eventually pull the plug on its bond-buying program.

SOURCE: The Wall Street Journal

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World Bank sees protracted recession in Russia

Russia faces a protracted recession as the impact of Western sanctions lingers and oil prices stay low, the World Bank said in a report published on Wednesday. In its baseline scenario, the bank expected Russia's gross domestic product to contract by 3.8 percent in 2015 and a further 0.3 percent in 2016, describing medium-term growth prospects as dim. The World Bank's lead economist for Russia, Birgit Hansl, said "adjustment to the new oil price reality and the sanctions environment" was a key policy challenge.

"If we look more into the medium term, the main challenge for Russia is the continued dearth in investment," she said, presenting the report. The bank's latest forecasts are more pessimistic than those made in December, when it expected the economy to shrink by 0.7 percent this year and grow by 0.3 percent in 2016. The new baseline forecasts assume that the oil price will recover only marginally over the next two years, averaging $53 per barrel in 2015 and $57 per barrel in 2016, reflecting ample global supplies and moderate demand.

Under a more optimistic scenario, with oil averaging $65.5 per barrel in 2015 and $68.7 per barrel in 2016, the economy would contract by 2.9 percent this year and grow by only 0.1 percent in 2016, the World Bank said. Its latest forecasts assume that sanctions imposed against Russia because of its role in the Ukraine conflict would stay in place in 2015 and 2016. The sanctions could have damaging long-term consequences that may last even after the sanctions are lifted, the bank said, citing the case of South Africa where sanctions imposed in the 1980s caused a major slump in investment.

In Russia's case, sanctions were likely to exacerbate an existing investment shortage. "Low investment demand hints at the deeper structural problems of the Russian economy and has already initiated a new era of potentially small growth," the report said. The bank also warned that a projected 3.8 percent budget deficit this year could "severely deplete" the budget's Reserve Fund, currently equal to around 4.7 percent of GDP. Hansl said, however: "One could argue that it is prudent to use fiscal buffers at these times as a counter-cyclical measure."

The Bank also foresaw a $122 billion capital and financial account deficit this year, reflecting continuing heavy capital outflows, only partially covered by a $74 billion current account surplus.

SOURCE: Reuters

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