|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1155.70125 |
USD/Ton |
1.43% |
|
VSF |
1916.0955 |
USD/Ton |
0.77% |
|
ASF |
2450.25 |
USD/Ton |
0% |
|
Polyester POY |
1216.9575 |
USD/Ton |
0% |
|
Nylon FDY |
3054.645 |
USD/Ton |
0% |
|
40D Spandex |
6615.675 |
USD/Ton |
0% |
|
Nylon DTY |
3332.34 |
USD/Ton |
0% |
|
Viscose Long Filament |
5782.59 |
USD/Ton |
0% |
|
Polyester DTY |
1461.9825 |
USD/Ton |
0% |
|
Nylon POY |
2842.29 |
USD/Ton |
0% |
|
Acrylic Top 3D |
2597.265 |
USD/Ton |
0% |
|
Polyester FDY |
1421.145 |
USD/Ton |
0% |
|
30S Spun Rayon Yarn |
2597.265 |
USD/Ton |
0% |
|
32S Polyester Yarn |
1878.525 |
USD/Ton |
0.88% |
|
45S T/C Yarn |
2891.295 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2009.205 |
USD/Ton |
0% |
|
T/C Yarn 65/35 32S |
2482.92 |
USD/Ton |
0% |
|
40S Rayon Yarn |
2760.615 |
USD/Ton |
0.60% |
|
T/R Yarn 65/35 32S |
2613.6 |
USD/Ton |
0% |
|
10S Denim Fabric |
1.14345 |
USD/Meter |
0% |
|
32S Twill Fabric |
0.999702 |
USD/Meter |
0% |
|
40S Combed Poplin |
1.355805 |
USD/Meter |
0% |
|
30S Rayon Fabric |
0.767745 |
USD/Meter |
0% |
|
45S T/C Fabric |
0.790614 |
USD/Meter |
0% |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16335 USD dtd.08/04/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The new long term Textile Policy which is on the anvil is likely to address the critical concerns of the textiles and textile machinery manufactures in a bid to make them globally competitive through measures such as focus on labour intensive manufacturing, skill upgradation, rationalization of labour cost, speeding up customs clearance and reduction in the cost of capital. An indication to this effect was given by Shri Santosh Kumar Gangwar, Minister of State for Textiles (Independent Charge) while inaugurating FICCI conference on 'Strategy for Making India a Global Leader in Textiles and Apparels' organized jointly by FICCI and the Textiles Committee, Ministry of Textiles, Government of India.
Shri Gangwar said that the textile ministry was seized of the urgent need to create jobs and upgrading the skills of workers employed in the textiles industry as Unfortunately, in this country we have more engineers but there is woeful shortage of skilled people. He said that the Ministry was ensuring that work on 20 textile parks is expedited and the technology upgradation plan given a fillip through an investment of Rs. 4000 crore. He said that recently the Ministry had announced the scheme for setting up of Apparel and Garment Centre for North Eastern states that will augment the capacity in the region for unleashing entrepreneurship and creating a pool of skilled workforce for the apparel sector. The Centre is being set up as part of a landmark initiative announced by the Prime Minister, Shri Narendra Modi, in Nagaland on December 1, 2014. The Prime Minister has announced that an Apparel and Garment Making Centre shall be constructed in all North Eastern states.
Similarly, Shri Gangwar said that the Scheme of Integrated Textile Parks which is one of the flagship schemes of the Ministry of Textiles was held up during the last one year due to administrative bottlenecks and no sanction was given for new parks. The government has moved swiftly to resolve the administrative issues and 13 new textiles parks were approved by the Project Approval Committee (PAC) chaired by him.
In his special address Mr. Sanjay Kumar Panda, Secretary, Ministry of Textiles, said that the Ministry was working relentlessly to resolve issues of the sector and had initiated measures such as setting up of apparel and garment making centres in North East, where people would also be trained to overcome shortage of skilled manpower in the sector, revival of Integrated Skill Development scheme. He invited suggestions from industry to enhance its effectiveness and focus on ease of doing business to provide a hassle free market environment to industry. He added that after the Prime Minister Modi's Japan visit, the Ministry was working towards setting up a Textile Manufacturing Unit with FDI from Japan.
Speaking on 'Make in India Perspective' in relation to textiles sector Mr. Amitabh Kant, Secretary, DIPP, said that to remain competitive in the global market and penetrate new markets it was necessary for the government to completely remove service tax for the textiles sector for five years, enter into a FTA with the EU, restore interest rate subvention, identify new ports for expediting the process of customs clearance and derive at a competitive labour cost to stay relevant in the market. He cautioned that the sector was bound to lose out markets to countries such as Bangladesh and Taiwan if it fails to bring about a concentrated and integrated approach in its outlook.
Mr. Yash Birla, Chairman, Textiles Committee, said In the world of highly competitive world market, the low priced quality product always remained the key to success of any exporting economy. A zero defect approach to manufacturing of the RMGs - the highest value added product in the production chain ensures a defect free product with low cost. Hence, Zero Defect Approach is desirable to inculcate fully in our industry. Further efforts to reduce transaction cost is another essential element of cost reduction and I am happy that the government of India has been engaged to simplify the export procedures and forms so as to reduce transaction cost for efficiently doing business. Textiles Committee will ensure doing its part in the specified time frame.
Mr. Shishir Jaipuria, Chairman, FICCI Textiles Committee, said that FICCI has been proposing a fibre neutral policy by rationalizing the duty structure on manmade sector. In order to have a double digit growth in export, we have to expand our product basket to include products where we have insignificant presence viz. winter clothing, sportswear, formal clothing etc. In addition to this, the Central Government should provide incentive to encourage domestic machinery manufacturing in India as much of it is presently being imported from the European Union and China.
Mr. R C M Reddy, Co-Chairman, FICCI Textiles Committee, said, Textile industry has potential to contribute to Make in India in view of employment intensity and export potential. It is also a very powerful tool for inclusive growth since most of the workforce is women, below poverty line and rural. A holistic approach is needed to consolidate and strengthen the industry covering its entire value chain.
SOURCE: The Business Standard
Textiles Minister Santosh Kumar Gangwar Tuesday said that the issue of scarcity of skilled workers will be taken up in the upcoming textile policy aimed to address critical concerns of the sector while plans for textile parks are going ahead. "Unfortunately, in this country we have more engineers but there is woeful shortage of skilled people," Gangwar said on the sidelines of an event organised by FICCI in New Delhi.
He said that his ministry is ensuring that work on 20 textile parks is expedited and the technology upgradation plan given a fillip through an investment of Rs.4,000 crore. Gangwar said his ministry has approved a scheme to set-up an apparel and garment centre for northeast India in Nagaland which will augment entrepreneurship and create a pool of skilled workers in the region. He noted that Prime Minister Narendra Modi has announced creation of an apparel and garment centre for all the states in the north-east. Further, post Modi's return from his Japan trip last year, a textile manufacturing unit with Japanese investment is under consideration.
SOURCE: The SME Times
Wilfried Aulbur, Managing Partner of consultancy firm Roland Berger Strategy Consultants in India, is no stranger to the country. As former Managing Director and CEO of Mercedes-Benz India, he was responsible for production, sales and after-sales of passenger cars, buses and trucks from 2006 to 2010. Now, as a consultant, he advises companies on entering as well as exiting India. In an interview with BusinessLine , Aulbur spoke about a wide range of issues such as logistics, ‘Make in India’, Goods and Services Tax (GST) and manufacturing. Edited excerpts:
What is crucial for the success of the Make-in-India programme?
It can succeed only if logistics is put in order. If I want to produce for the market, I need to have a way to distribute it. To export, there should be adequate capacity and deep draughts at ports to ensure faster turnaround of vessels. Vessel turnaround time at ports should be in line with global practice. It can’t be four days, but a day-and-a-half maximum.
Can Make in India label succeed like Made in Germany or Japan labels?
Yes, but you need to have consistency in the entire ecosystem and across companies. It’s not enough that Hyundai or Nissan only do wonderful work in India. How do we ensure that every major production company, Indian or multinational, knows that if they build a product in India, it will be cost-competitive and best in quality? That’s the challenge. This will not happen overnight, but may take 10 or 20 years. However, it’s possible, as auto and wind energy sectors have shown the success for others to replicate. India should take advantage of its lower manufacturing labour costs when compared with China.
How much cheaper?
OECD data says India is cheaper by 48 per cent on manufacturing labour cost. Then you have efficiency and productivity factors. There is an advantage for India now. India has an attractive labour cost. If you invest in training the labour, then India has a strong case for manufacturing in India and export out of India. It’s now a race for employment that will be only won if you create an environment that is conducive.
Can India replace China as low-cost manufacturing hub?
As China moves out of low-cost manufacturing, it’s important that India captures this space even as Indonesia, Vietnam, Myanmar and Morocco are emerging as strong contenders. China is trying to automate manufacturing and there is a drive towards cyber manufacturing system and relatively cost-efficient general purpose machines to work with humans. This means they will gain 18 per cent in efficiency. India’s cost advantage of making products is 20-30 per cent depending on the currency, which is unfavourable today. The business case of low-cost manufacturing out of India may not be valid 10 years down the line. You have an opportunity today. The question is how long you have to wait.
Should there be change in policy to be more competitive?
Policy has never been an issue. It’s only about execution. The government would do tremendous jobs if the allocation on sectors like infrastructure is spent for it is meant. If that happens, it will boost economic growth. Governments in the past have communicated quite a bit, but have not always delivered. That’s an approach that may not be tenable going forward. The new government has said it clearly is different. So, this will be measured going forward. For instance, there was a plan to make 20 km road a day, but only 2 km was achieved. The challenge is to get those committed things done.
Will GST help companies?
There is a need to implement GST quickly to reduce logistics cost and get rid of the complexity in moving goods within the country. Companies dependent on logistics lose 2 per cent on return on sales due to higher logistics cost. GST will give an opportunity to plan the location of the warehouse not based on tax consideration but on logistics flow. Currently, warehouses are located in different states because it’s tax optimal. It should be driven by the needs of the business not taxation. Getting it done on the ground is a big step forward to indicate to local and global investors that things are moving in the right direction.
SOURCE: The Hindu Business Line
The Indian and Vietnamese textile and apparel industries are more complementary than competing in nature, and so co-operation would result in a win-win situation, the Synthetic and Rayon Textiles Export Promotion Council of India has said. Srijib Roy, the SRTEPC's director, said: "India is the second largest producer of polyester and viscose filament yarn and cotton in the world. It is also the fourth largest producer of viscose staple fibre and stands sixth in acrylic staple fiber globally."
On the other hand, despite achieving impressive growth in garment and textile export, Vietnam relied heavily on imported raw materials. Vietnam had imported more than US$440 million worth of textile products from India during the financial year ending March 2014, with the main items being polyester viscose and synthetic fabric, polyester wool fabric, and polyester filament yarn. India's exports of manmade fibre to Vietnam went up from US$36 million in 2009 to US$89.09 million last year, an increase of 146%.
Vietnam is dependent on other countries, mostly China, for its textile inputs, both India and Vietnam could benefit by co-operation – the former would get a new market and the latter could diversify its source of materials. Vinod K. Ladia, the SRTEPC's former chairman, said India also provided a huge market for Vietnamese garments with its population of more than 1.2 billion. Besides, India had a massive young population that is looking for good designs and modern fashion, he said. India was considering building its first textile industrial park near HCM City to manufacture feedstock for Vietnamese garment producers as well as textile products that Vietnam did not produce, he added.
India exhibition
As part of its efforts to promote co-operation with Vietnamese firms, the SRTEPC planned to organise the Indian Textile Exhibition at the Tan Binh Exhibition and Convention Centre from April 9 to 12, Roy said. The event would provide Vietnamese manufacturers an opportunity to see Indian synthetic, rayon, and blended textile items made by 21 leading Indian textile companies like Raymond Ltd, RSWM Ltd, and Sutlej Textile & Industries Ltd under one roof.
"India is capable of supplying textiles in both small and big lots, with the quality of products as desired by the buyers, and our prices are competitive. "India is not a competitor to Vietnam but a collaborator, [and] optimising the synergies will create a win-win situation for both countries." The Indian textile industry's annual output was worth around US$100 billion and exports, around US$40 billion. Indian manmade fibre and textiles were exported to more than 140 countries. The highly sophisticated and quality-conscious European Union was the largest destination for Indian MMF textiles, accounting for 28% of total exports.
SOURCE: The Vietnam Net
The feeble state of domestic businesses during 2014-15 was clearly visible in the traffic movement at country’s largest major port, Kandla, as exports dipped by over 31 per cent during the year, while imports grew by 33 per cent. As per the annual performance data shared by the port trust, imports at Kandla port increased from 219 lakh tonnes to 292 lakh tonnes, up 73 lakh tonnes. But exports during the year had dipped by 44 lakh tonnes to 96 lakh tonnes in 2014-15 from 140 lakh tonnes in 2013-14. The data showed that dry cargo imports had shown a sharp jump of 43 per cent at 214 lakh tonnes against 150 lakh tonnes a year ago. Also fertiliser imports increased by 45 per cent to 38 lakh tonnes against 26 lakh tonnes a year ago. On the other hand, oil extraction exports from Kandla had declined by 45 per cent in 2014-15 to 18 lakh tonnes against 33 lakh tonnes last year. Apart from decline in dry cargo exports, food grain and salt exports were significantly lower during 2014-15 against 2013-14. While exports from Vadinar were almost stable at 131 lakh tonnes for the year 2014-15, imports had reported a surge of 28 lakh tonnes to 404 lakh tonnes in 2014-15 against 376 lakh tonnes a year ago.
Cargo throughput
Meanwhile, KPT authorities mentioned that despite several challenges affecting the overall businesses, Kandla port had retained its number 1 position among major ports for the sixth year in a row and attained 92.5 million tonnes mark in 2014-15.
SOURCE: The Hindu Business line
Ahead of Prime Minister Narendra Modi’s visit to France and Germany from April 9 to 14, João Cravinho, ambassador of the European Union (EU), hopes this would be an opportune moment to pave the way to re-energise the stalled negotiations for an India-EU bilateral trade and investment agreement (BTIA). EU is keen to get the deal sealed at the earliest for the benefit of both sides, he tells Nayanima Basu. Edited excerpts:
What issues will the EU take up, now that PM Modi is visiting some of the key countries there and meeting their leaders?
We are looking forward to the India-EU Summit, which is expected to take place before the end of the year. There is much enthusiasm in the government now. We will see if we can give a new energy to the trade talks. Besides, we have been following the Modi government’s flagship programmes — ‘Make in India’, smart cities, Digital India and Ganges cleaning — with a lot of interest. In relation to all these, we have a lot of potential to contribute to the success of these ambitions. So, we are working on developing on an EU platform to respond to these initiatives.
The Modi government will next month be completing a year in office, and there has not been any formal engagement on the FTA so far. When you meet the negotiators there, do you get a sense that India would like to start the talks from the beginning?
Not really. A lot of work has already happened on this. And this is considered to be a valid one. So, I do not see a question of restarting. We did not have a very clear idea of the level of enthusiasm of the Indian government; we had positive signals but not much follow-up in terms of meetings. That probably is because the government is still reviewing all the FTAs it signed.
The review should be done on those FTAs that have already been signed. Ours is still under negotiation, so you cannot assess the impact. It is not for us to determine what India’s interests are; the government is quite competent to do that. What we were told is that there is an interest in restarting the negotiations but this does not seem to be followed up with concrete proposals for meetings. Now we hope there will be some movement. Meetings are expected to take place.
But do you sense this government will be slightly more flexible than the previous one when it comes to slashing tariffs on the automobile and wines & spirits sectors?
With this government, we have not had any formal round of talks yet. So I don’t think we can assess this. Both India and the EU are not part of the Trans-pacific Partnership Agreement. Is that why you are so keen to sign the FTA with India? There is a concern here that EU will push for high-level WTO-plus standards under this deal.
We are seeing significant changes in the world trading patterns. In India, there is now a realisation that these changes are happening. And it is important for them to be engaged. Our engagement with India stands on its own merits. One of the merits of signing the FTA is that it gives us opportunity to adjust our standards. In the Intellectual Property Rights, we are not asking India to maintain WTO standards — not plus but definitely not WTO minus.
How keen is the European business community on the ‘Make in India’ concept. Do you find a dichotomy here, with the government pushing for investments on the one hand, and incidents like the Cairn India tax dispute taking place on the other?
The big problem with taxation is when there is uncertainty. There is absolutely no doubt that there are European companies, Indian companies and companies from anywhere in the world; the problem is when these companies do a transaction and then laws get retrospectively changed. That gives rise to massive uncertainty.
Do you feel uncertainty on taxation is still there in the present government?
The government has made certain positive announcements on what its taxation strategy is going to be. But that has to be shown in action. This we saw happening in Vodafone and Shell cases on the transfer-pricing issue. The government dropped the case. That was wise, because there was no case there. Retroactive amendment is still an issue but we are encouraged by the government’s statements. We will be more encouraged if the government says there is no retroactivity. They need to re-pristine the law. The European business community believes in the long-term future of India.
So you do not see any conflict between ‘Make in India’ and the taxation issue?
The taxation issue, I believe, has more to do with the ease of doing business. The simplicity of the tax regime is one factor.
SOURCE: The Business Standard
Illicit trade in seven major manufacturing sectors has increased industry losses by 44 per cent in two years, said a study. Government tax (direct and indirect) losses have also increased almost 50 per cent to Rs 39,239 crore in 2014, from Rs 26,190 crore in 2012 due to this.
Federation of Indian Chambers of Commerce and Industry (FICCI) and the Committee Against Smuggling And Counterfeiting Activities Destroying the Economy (Cascade) commissioned the study, which focused on seven prime manufacturing sectors — auto components, alcoholic beverages, computer hardware, fast moving consumer goods (personal), FMCG packaged foods, mobile phones, tobacco and media and broadcasting.
“Despite the existence of requisite laws in India and arrests of suspected criminals by the police, the scale of illicit markets is huge and the criminal networks and illicit markets organisations continue to thrive,” FICCI stated. However, the study was also not able to link the illicit markets to terror funding due to lack of adequate data based on search and seizure in India. According to the study, establishment and determination of the extent of such a link calls for strategic intelligence gathering and preparation of robust databases, which are clearly missing at present. “Given the security implications, if not outright financial considerations, there is little to argue against carrying out such exercises. This would be the first step to contain counterfeiting and its corollary, terror and ensure that genuine business interests do not suffer,” said the study.
The estimated loss in sales in these sectors has increased from Rs 72,969 crore in 2011-12 to Rs 1,05,381 crore in 2013-14 (increase of 44 per cent). “These numbers establish that despite best efforts undertaken to curb smuggling and counterfeiting, the illicit markets continue to thrive across all industry segments, posing a serious challenge to various stakeholders,” FICCI said. The largest increase is seen in the alcoholic beverages and mobile phones industries where losses have risen by 151 per cent and 111 per cent, respectively.
It was observed that there is a net excess of 31 per cent of alcohol consumption in 2012 vis-à-vis production in the entire country even after factoring in the possibility of legitimate inter-state sales and closing stock. The corresponding number for 2008 and 2010 are 27 per cent and 17 per cent respectively. “Excess consumption raises questions on the source of this consumption and possible losses to the exchequer as well as the harmful effects on consumers,” said the study. According to FICCI, due to such illicit markets, industries lose sales revenues, governments lose tax revenues and customers knowingly or unknowingly lose out due to low quality products which could often lead to hazardous health and safety consequences.
SOURCE: The Business Standard
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 56.27 per barrel (bbl) on 08.04.2015. This was higher than the price of US$ 56.04 per bbl on previous publishing day of 07.04.2015.
In rupee terms, the price of Indian Basket increased to Rs 3507.31 per bbl on 08.04.2015 as compared to Rs 3492.97 per bbl on 07.04.2015. Rupee-dollar exchange rate remained unchanged at Rs 62.33 per US$ on 08.04.2015 as compared to 07.04.2015.
The table below gives details in this regard:
|
Particulars |
Unit |
Price on April 08, 2015 (Previous trading day i.e. 07.04.2015) |
Pricing Fortnight for 01.04.2015 (Mar 12 to Mar 27, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
56.27 (56.04) |
53.61 |
|
(Rs/bbl |
3507.31 (3492.97) |
3352.77 |
|
|
Exchange Rate |
(Rs/$) |
62.33 (62.33) |
62.54 |
SOURCE: PIB
All Pakistan Textile Mills Association (APTMA) Chairman S. M. Tanveer has said that the textile industry of Pakistan could not compete with the regional players in international market due to the lake of facilities to the textile sector. He said a latest study by the GHERZI/IBA has revealed that the manufacturing of 20s and 30s single cotton yarn is around 15 percent cheaper in India due to availability of raw material of better quality and cultivation. According to report India industrialist can replace their old machinery with latest machines at almost zero interest rate under the TUFS scheme that cause high production, he added.
He further said that energy availability at affordable tariff, cheaper finance, lower wages and workforce were such indicators that strengthen the Indian industries while in Pakistan textile sector was facing various problems. He said the textile industry in Pakistan, on the other hand, is struggling for energy availability without break over the last six years. Also, the industry in Pakistan is being burdened with various types of innovative taxes and inefficiencies which cannot be passed on to the buyers.
According to him, the textile industry is predominantly export-oriented and thus exposed to the international market to lose its substantial market share, consequently our textile and clothing exports are declining or stagnant since February last. Resultantly, the textile mills are converting fast into the category of sick units and closing down one after another. Chairman APTMA has warned that the situation is fast heading towards a serious repercussion on the farm sector, the entire textile value chain and eventually the textile industry workforce.
SOURCE: The Customs Today
The textile industry is the largest manufacturing industry in Ethiopia. There are a number of state-owned and private textile and garment factories. The industry contributes the lion-share of employment in the manufacturing sub-sector. Ethiopia is rightly christened as the ‘Bangladesh of Africa’. Under the Growth and Transformation Plan, “production of textile and garments” besides leather products, cement industry, metal and engineering, chemical, pharmaceuticals and agro-processing are priority areas for investment.
The Ethiopian government has asked the country's Investment Commission to guide prospective investors through every step of the way as a large domestic market and an increasing number of skilled workers are turning Ethiopia into an investment destination. As far as textiles and clothing are concerned, spinning, weaving and finishing of textiles from the raw material to the production of garments are there for the taking for investors.
The manufacture of knitted and crocheted fabrics, carpets and sportswear are also on offer. There has been tangible success already, with Chinese, Turkish and European garment manufacturers seeking to expand their operations. There are also ample manufacturing opportunities for prospective investors in tannery and leather products involving fashion items such as handbags, shoes, jackets and leather garments. The main textile products manufactured are cotton and nylon fabrics, acrylic yarn, wool and waste cotton blankets and sewing thread. The availability of inexpensive labour and the main raw material, cotton, are the major factors for considering this industrial sector as one of the strategic industries for export development.
SOURCE: Yarns&Fibers
With the change in the political scenario, Myanmar is trying to establish itself as a leading manufacturing hub. The ongoing quest for low cost production has drawn manufacturers' attention to the clothing industry in Myanmar. Myanmar will expand its textile and garment industry under the country's new national export strategy as a means to boost economic growth, with the sector's export earning targeted at $2 billion for the 2015-16 fiscal year.
According to the ministry of commerce, the export income from the textile and garment sector made up 40 percent of the country's foreign exchange earnings from around the year 1990. With foreign investment accounting for 90 percent, the sector created 100,000 job opportunities in 2014-15, Xinhua news agency reported citing the Myanmar Garment Manufacturers Association. Official statistics show that foreign investment in the manufacturing sector reached $5.458 billion as of February this year since late 1988 when the country opened to foreign investors. The country has a long history of making yarn, fabric and garment. The five-year national export strategy, which also covers six other sectors and is aimed at tackling trade deficit, focuses on rice, peas and pulses, fishery products, timber and forest products, rubber and tourism.
SOURCE: Yarns&Fibers
APTMA Chairman S M Tanveer has said as many as 100 textile mills are vulnerable to viability issue and seriously considering of closing down operations sooner rather than later. He said some 20 textile mills have already closed down operations in the country due to loss of competitiveness oozing out of real exchange appreciation and high cost of doing business. According to him, majority of the textile mills are considering slashing down work force by reducing mills’ operations to two shifts a day. He said the APTMA has been agitating against declining trend in textiles and clothing exports in the recent past, submitting to the government for an early intervention to arrest the fall. He said a sudden ‘appreciation’ in rupee value has hit hard the textile industry viability across the board.
In addition, he said, competing with the subsidy-laden regional competitors has put the upside down the textile industry in Pakistan. S M Tanveer said the IMF has also stated in its “six months review under the extended arrangement and modification of performance criteria” that the Pak rupee has gained 1. 2 per cent over the last quarter against the dollar and the real effective exchange rate has appreciated 10.6 percent since the onset of the program. The lack of downward exchange rate flexibility and a high inflation differential relative to trading partners have caused a further loss of Pakistan’s export competitiveness in world markets, the report added. Chairman APTMA has urged the economic managers of the government to restore viability of the textile industry by taking appropriate steps on emergency basis. Any further delay, he warned, may lead to closure of further mills that will be translated into supply side losses, retrenchment of the textile work force and a heavy decline in exports.
SOURCE: The Nation
The Russian cross-border ecommerce is still growing fast. In 2014, it reached an estimated USD 5 billion, up from USD 3 billion in 2013. While Chinese players capture a growing share of this market, ecommerce flows from western countries, overall, have been stagnating since early 2014, with a variety of situations, however, depending on each segment or player. Operators from all countries face operational challenges to serve this huge territory. Just a few years ago, this was a major hurdle. The standard postal service was highly unreliable, at least from the Russian side, while the tariffs of big global shipment providers were prohibitive to many consumers. Furthermore, the shipping process was subject to unpredictable changes in customs legislation or practice, or changes that were not always understood or anticipated by shipment providers. Thus, in January 2014, DHL Express, DPD and FedEx suspended shipments to Russian consumers. Many foreign internet stores were affected.
In 2013 and 2014, however, the situation improved:
Thus, the shipment and customs processes still undoubtedly require attention, but can no longer be considered as blocking factors. A potential revision of the current tax-free import threshold (EUR 1,000 per person and per month) was much discussed in 2014, but has yet to be confirmed.
To serve Russian customers, international merchants may consider the following options:
Operations may be outsourced to a first-mile operator (such as Borderfree in the US, SalesSupply in the EU, or wnDirect in the UK). However, some of them seek to cover their costs by establishing higher pricing for Russian consumers – which will not stimulate your sales, especially in crisis times.
SOURCE: The Paypers
Crude oil prices rose more than a per cent on Thursday, clawing back a part of the 6 per cent slump in the previous session that was triggered by a shock jump in US crude inventories and record Saudi output, although analysts said sentiment remained bearish. A 10.95 million-barrel surge in US crude stockpiles to 482.4 million last week, the biggest gain in 14 years, and Saudi oil production of 10.3 million barrels a day in March had battered crude futures on Wednesday. "Total US crude stocks continued to fly far above 5-year highs, setting new records every week," Societe Generale analysts said in a note.
Cushing, the delivery point for West Texas Intermediate contracts, is now filled to 85 per cent of its total working capacity of 70.1 million barrels, the bank said. Brent crude was up 62 cents at $56.17 a barrel by 0236 GMT, while US crude rose 64 cents to $51.06 a barrel. Both benchmarks dropped around $3.50 on Wednesday. Oil prices recovered slightly on Thursday in an extension of the recent high market volatility that has seen frequent price reversals as speculators bet on when ballooning supply in the US will start to ease. Close-to-close price volatility for Brent prices is at levels last seen during the height of the global financial crisis of 2008/2009, Reuters data shows.
Overall sentiment remains bearish due to persistent high production and modest demand that has knocked oil prices down around 50 per cent since June last year. "We are seeing little sign of economic acceleration ... and anticipate a meaningful decline in oil production is still a couple of months away," US Bank Wealth Management said in a research note. The United States could add to global supply as it slowly eases a decades-old ban on crude exports. ConocoPhillips became the latest firm to receive U.S. government approval to export ultra-light domestic oil. The lifting of the U.S. export ban and a potential rise in Iran's supply would pressure oil prices in the second half of this year, Nomura's senior political analyst Alastair Newton said in a note.
Iran and western powers may finalise a nuclear deal by end June which could lift sanctions on Iranian oil exports. A stronger greenback also contributed to oil's losses on Wednesday as the dollar-denominated commodity became more expensive to holders of other currencies. The dollar was buoyed after two influential officials with the Federal Reserve said the central bank could still hike interest rates in June despite weak recent U.S. data and investor scepticism, putting the spotlight squarely on the economy's performance in the next two months.
SOURCE: The Hindu Business Line
