|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1155.35 |
USD/Ton |
0% |
|
VSF |
1918.78 |
USD/Ton |
0.17% |
|
ASF |
2449.50 |
USD/Ton |
0% |
|
Polyester POY |
1249.25 |
USD/Ton |
0% |
|
Nylon FDY |
3053.71 |
USD/Ton |
0% |
|
40D Spandex |
6613.65 |
USD/Ton |
0% |
|
Nylon DTY |
2857.75 |
USD/Ton |
0.57% |
|
Viscose Long Filament |
2596.47 |
USD/Ton |
0% |
|
Polyester DTY |
1461.54 |
USD/Ton |
0% |
|
Nylon POY |
3347.65 |
USD/Ton |
0% |
|
Acrylic Top 3D |
5813.48 |
USD/Ton |
0.28% |
|
Polyester FDY |
1510.53 |
USD/Ton |
0% |
|
30S Spun Rayon Yarn |
2620.97 |
USD/Ton |
0.31% |
|
32S Polyester Yarn |
1894.28 |
USD/Ton |
0.87% |
|
45S T/C Yarn |
2890.41 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2776.10 |
USD/Ton |
0.59% |
|
T/C Yarn 65/35 32S |
2612.80 |
USD/Ton |
0% |
|
40S Rayon Yarn |
2024.92 |
USD/Ton |
0.81% |
|
T/R Yarn 65/35 32S |
2482.16 |
USD/Ton |
0% |
|
10S Denim Fabric |
1.14 |
USD/Meter |
0% |
|
32S Twill Fabric |
1.00 |
USD/Meter |
0% |
|
40S Combed Poplin |
1.36 |
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 = 0.16330 USD dtd. 12/04/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The Union Ministry of Textiles, Santosh Kumar Gangwar at the inauguration of 4th edition of Technotex, organized jointly by Ministry of Textile, Federation of India Chambers of Commerce and Induatry (Ficci), said that the textile industry is the second largest sector after agriculture to create employment opportunities in the country. He called upon textile industry barons to invest in the technical textile business, by calling it a sunrise sector.
Technical textiles are an important part of the textile industry and its potential still largely untapped in India. With increase in disposable income, the consumption of technical textile is expected to increase. He added that there was potential in the technical textile sector as the international market in this space stands at Rs 17 lakh crore. This year, India’s technical textile business is close to Rs 1 crore and could be improved to great extent with investments from global players.
He further said that Prime Minister Narendra Modi was keen on improving the textile industry as well, particularly in the North eastern states, where the government has invested Rs 427 crore in technical textiles. The plan is expected to boost the apparel and garment industry in the region. The scheme for growth and development of technical textiles (SGDTP) has also been designed to promote indigenous manufacture of technical textile to exploit to global opportunities and cater to the domestic demand.
SOURCE: Yarns&Fibers
The Surat-based textile industry has been witnessing rise in inventories by 20-30 percent at textile units as the demand for textile products is more or less stagnant since last six months. Due to economic slowdown coupled with liquidity crisis in the market has led to subdued demand for textile products from the city. Moreover, reduced demand has resulted in buyers keeping less stock with themselves leading to higher inventory for textile makers in Surat, according to industry sources. Devkishan Manghani of Federation of Surat Textile Traders Association (FOSTTA) said that Surat based textile industry's turnover is pegged at roughly Rs 90,000 crore, of which Rs 40,000 crore alone comes from finished goods such as apparel and sarees, while rest is distributed into other verticals such as spinning, weaving, processing and fabric sales, among others.
Surat is a buyer’s market, the textile makers having produced more than the demand from buyers. While the orders are declining and becoming more sporadic, the subdued demand has led to buyers keeping less stock with them, resulting in increased inventory. On an average day, around 50-60 trucks would ply to AP from Surat carrying readymade sarees, dress materials and other textile products worth roughly around Rs 10-12 crore. However, with subdued demand, much of the produce is lying with textile units and traders in Surat, leading to a rise in inventory by 20-30 per cent. Moreover, fluctuating fuel costs have added to their woes too.
Earlier, almost all the units were running in natural gas. However, with continual price rise, the fuel was becoming unviable, thereby forcing textile units in Surat to turn to imported coal and lignite. However, there have been supply as well as cost issues with the current fuel arrangement which have aggravated under the oversupply situation, said Jitu Vakharia of South Gujarat Textile Processors Association (SGPA).
SOURCE: Yarns&Fibers
The Centre on Saturday assured the textile industry that it will soon resolve the issue of pending claims under its technology upgradation scheme. The Textile Upgradation Fund Scheme (TUFS) is an interest subsidy scheme for upgradation of technology as part of measures to boost textile and jute sectors. "The textile industry has been facing issues like non-allocation of around Rs 3,000 crore to meet pending cases under TUFS, which include committed liability, left out cases and blackout period. "I had a talk with the Finance Minister and the Prime Minister about this issue and I can assure you that the issue will be resolved soon," Textiles Minister Santosh Gangwar told textile traders here.
Gangwar also suggested the industry to take up the issue with the Prime Minister. "I will request Gujarat to give some suggestions to Prime Minister Narendra Modi. I met him (Modi) four days ago and spoke on the issue... He listened to me but did not give an answer. If you people will write to him, he will surely offer a solution," he said. He was replying to textile traders on TUFS issues including non-allocation of subsidy and delayed reimbursement at Gujarat Chamber of Commerce and Industries (GCCI) here.
Later while talking to businessmen at Maskati Market area, the minister faced similar queries. "The textile industry is not getting subsidy under the scheme and there is also a delay in reimbursement as nodal agencies like banks take time in completing the process and due to non-clearance of the case, our subsidy is not sanctioned and many of the units of the industry are struggling to survive," Ahmedabad Textile Process Association President Nitin Thakkar said.
Talking about technical textile sector, the Minister said the business of the sector is estimated at about Rs 17 lakh crore, while India's contribution is just around one lakh crore. "The Prime Minister keeps a tab on this sector and therefore projects of Rs 425 crore have been approved especially for the north-east states. Gujarat has the ability and the state has been making good efforts to become the hub of technical textile," Gangwar said. He also said China has a monopoly over textile industry and now people think that only India can counter the neighbouring country in this sector.
SOURCE: The Business Standard
Surat's textile entrepreneurs are weaving a success story with the setting up of integrated textile parks and achieving the production value of over Rs 2,500 crore in the last few years. At the first ever National workshop on Scheme for Integrated Textile Park (SITP) organised by the Ministry of Textiles in the city on Friday, the Minister of State for Textile, Santosh Kumar Gangwar exhorted the textile entrepreneurs in other states to following the rich experience of the entrepreneurs in Surat and strive to replicate their success stories.
Gangwar said, "Surat is the hub for MMF fabrics and now it has become the hub for the textile parks as well. We have brought the representative from different states to witness the progress made by the Surti entrepreneurs in the textile park development". In the last six years, around eight textile parks have become operational, majority of which are located in and around Surat, and that the yearly production of yarn, fabrics and garments is pegged at Rs 3,364 crore. These textile parks have generated direct and indirect employment opportunities for more than 21,000 people, majority of who are from Surat and surrounding areas.
As per the Ministry of Textile, around 70 textile parks spread across 16 states have been approved as on March-2015 with the total cost of Rs 7,100 crore, of which Rs 2,586 crore is grant assistance from the ministry. Out of the 70 parks, 30 parks are functional-- majority of which are Gujarat, Maharashtra and Tamilnadu. The Gujarat Eco Textile Park Limited at Palsana, some 20 kilometers away from the city, is on the top with the production value of fabrics, shirting, sarees, denim synthetic textile at is 33 units pegged at Rs 1,396 crore per annum.
Eight textile parks are operational in Gujarat and five new parks have been sanctioned by the Ministry of Textile. In Surat alone, out of the nine parks sanctioned by the ministry, five textile parks are operational with the annual production of fabrics, yarn, grey fabrics, knitted fabrics, garments etc. pegged at Rs 2,768 crore. The other two textile parks located at Mundra and Kheda has the annual production worth Rs 600 crore. SK Panda, secretary, Ministry of Textiles said, "The textile entrepreneurs in Surat have done exceeding well by successfully setting up the textile parks under SITP. We have brought the representatives of other textile parks from across the country to witness the growth in the city's textile park and replicate the same model in their own states".
Panda added, "Out of the 70 parks approved under the scheme, 30 have started commercial operations. On completion of the other parks, it is estimated to attract investment of Rs 30,000 crore and generate direct and indirect employment for Rs 11 lakh people". According to Panda, the Textile Ministry has sanctioned 20 more textile parks under the SITP, with the focus on the North-Eastern states like Manipur, Meghalaya and Assam. The Ministry provides a grant to the extent of 40 per cent of the cost of basic infrastructure, common facilities and factory buildings subject to a ceiling of Rs 40 crore for each park. The balance project cost is to be mobilized by the Special Purpose Vehicle (SPV) through equity and debt funding.
SOURCE: The Times of India
India's exports may again miss the target in 2014-15 and be in the range of $ 308-310 billion as against the target of $ 340 billion, a senior Commerce Ministry official has said. In 2013-14, the country's total merchandise shipments stood at $ 312.35 billion as against the target of $ 325 billion. During April-February 2014-15, it grew by a merger 0.88 per cent at $ 286.58 billion as against $ 284.07 billion over the same period previous year. "Export target will be missed. It will be in the range of $ 308 billion to $ 310 billion," the official told PTI. The reasons for decline in exports include slowdown in manufacturing, softening of metal and commodity prices and declining competitiveness of domestic goods in international markets, an industry expert said. "There is an urgent need to nurture India's exports. Lakhs of jobs are at stake. During the last four years, India's exports are hovering at around $ 300 billion, we need to come out from that," former FIEO ( Federation of Indian Export Organisations) president Rafeeq Ahmed said.
In 2012-13 too, India's exports aggregated at $ 300.6 billion as against the target of $ 360 billion. The government is taking several steps to boost the country's exports. Recently, it had announced incentives in the new five-year Foreign Trade Policy. With an aim to nearly double the country's goods and services exports to $ 900 billion by 2019-2020, the Commerce Ministry has incorporated various incentive schemes such as Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS) to boost outward shipments. The new FTP provides higher level of incentives for export of agriculture products besides announcing setting up of an Export Promotion Mission to provide an institutional framework to work with state governments to boost exports.
SOURCE: The Economic Times
Textile parks set up under the Scheme for Integrate Textile Park (SITP) will attract investment of Rs 30,000 crore and will generate employment for nearly 1.1 million people in India, said Santosh Gangwar, Union minister of state for textile, at a national workshop for textiles in Surat on Friday. A two-day workshop was organised by ministry of textile in Surat to showcase the textile parks development. SITP aims to provide infrastructure support, which is critical for making textile manufacturing industry globally competitive. Gangwar said, “Once the park is operational, it is expected to attract investment of Rs 30,000 crore and generate employment for 1.1 million people. Government would set up 8 to 10 more parks in the 12th five year plan. These parks will be catalytic in realising ‘Make in India’ vision of Prime Minister.”
He announced approval of 20 new parks during previous seven months, bringing the total number of parks approved under the scheme of 70. The minister urged state governments and the industry to work in unison to make India a global leader in textile manufacturing.
SOURCE: The Business Standard
Addressing a two-day National Workshop, held to strengthen Make in India in Textiles, Minister of State for Textiles (Independent Charge), Santosh Kumar Gangwar has announced that his government approved 20 new parks during previous seven months under the Scheme for Integrated Textile Park (SITP). The Minister also informed that the Government would set up 8 to 10 more parks in the 12th Five Year Plan. These parks will be catalytic in realising Make in India vision of the Hon'ble Prime Minister. He said that textile parks can play an important role in this regard by attracting huge investment and generating employment.
Addressing the gathering, Minister announced approval of 20 new parks during previous seven months, bringing the total number of parks approved under the scheme to 70. Once operational, these parks are expected to attract investment of Rs. 30,000 crores and generate employment for 11, 00,000 persons. He urged the state governments and the industry to work in unison to make India a global leader in textile manufacturing. A two-day National Workshop has been conducted by the Ministry of Textiles, Government of India on 9th and 10th April, 2015 in Surat to showcase progress of the Textile Parks set up under the Scheme for Integrated Textile Park (SITP), a flagship scheme of the Ministry.
Earlier, Gangwar inaugurated a photo exhibition on SITP. He also released a short film on SITP and a report on textile parks approved under the scheme. The Minister of Commerce and Industry of Manipur informed that a road corridor is proposed from Moreh in Manipur to Mandalay in Myanmar and then to Thailand which will provide better access to the South East Asian market for Indian textile industry. He reassured the industry that the state government would provide all necessary support and peaceful and secure conditions for textile investors in the state.
The conference was attended by the Minister of Commerce and Industry, Manipur, Govindas Konthoujam; Darshana Vikram Jardosh, MP, Surat and MLAs from Surat, Harsh Sanghvi and Rajabhai. Industry representatives and representatives from 13 States across the country were present as well. Field visits were organized as part of the workshop, for prospective investors and state government officials to give them a first-hand experience of successful parks, informed a official press release.
SOURCE: The SME Times
The Maharashtra state government will soon start the process of de-notifying land that reserved for phase II and III of the Khed SEZ, being developed by Khed Economic Infrastructure Private Limited (KEIPL) in Pune, a 74:26 JV between the Kalyani Group and the Maharashtra Industrial Development corporation (MIDC). The phase I of the SEZ across 1,705 hectares is operational while Phase II and III acquisition was held up due to protest from farmers over land acquisition. Swabhimani Shetkari MP Raju Shetti led a delegation of farmers to meet Maharashtra chief minster Devendra Fadnavis in Mumbai on Friday. The CM assured farmers the denotification process would be completed soon.
Though phase II and III acquisition was yet to be made, MIDC had got its name on the land records in these proposed areas which prevented farmers from buying, selling or mortgaging their land. Shetti had lead the protest against this after which the CM intervened and called for a meeting in Mumbai on Friday night. MIDC has said the denotification would taken around two months to complete. MIDC had sent out a report recommending denotification of the 1,657 hectares in phase II and 1,836 in phase III. KEIPL had in an earlier release said the company was not interested in acquiring more land for their project and it was an issue for MIDC to deal with.
SOURCE: The Financial Express
Manipur is wooing investors for its upcoming textile park in the suburbs of state capital Imphal, highlighting its strategic location advantage as a gateway to South East Asia. Although the state has faced law and order issues, the Manipur government is assuring investors safety and security as it tries to create much-needed jobs for the unemployed. The state's efforts to woo investors come amid the Centre's increasing focus on the country's eastern region. Besides, Prime Minister Narendra Modi has been emphasising that Indian businesses should focus on increasing trade with the South East Asian nations. "We have been asking investors to come and see for themselves the opportunities at the textile park in Imphal. Manipur is India's gateway to South East Asia," Manipur Minister of Commerce and Industry Govindas Konthoujam told PTI in an interview here. "Considering how India has intensified its focus on the neighbouring countries with a change from 'Look East' to 'Act East' policy, it is the right time to invest there," he said.
Already some companies, including Mumbai-based Etco Denim, Triveni Rayons, Narmada Polyfab and Fairdeal Textile Park (all from Surat), have expressed interest to set up units in the upcoming textile park at Lamboikhongnangkhong in Imphal. "They will soon come to Manipur to do a feasibility study and we will provide support to them to invest there," said Konthoujam. Acknowledging the problems in the state, he said: "Some key concerns among the investors are safety and security of their investments and availability of power supply. We have assured them that we will take care of these issues." He said special purpose vehicle would be formed for setting up units at the textile park with Centre providing support of 80 per cent of the investment required and the private investor contributing 10 per cent, while the state's share of 10 per cent would come in the form of land provided for setting up manufacturing unit at the park.
Expressing confidence that the state's textile park will be a success, the Minister said: "Already we have acquired 70 acres of land and we are trying to get another 60 acres more so that the park has a size of at least 130 acres." Konthoujam said already the union Ministry of Textiles has launched an apparel and garment making centre in Manipur with a project cost of Rs 18.18 crore as well as a Power-loom Estate with a project cost of Rs 13.05 crore. He said investing in the state was necessary "not only from the economic point of view to provide jobs to the unemployed educated youths of the state but also on a wider perspective of national integration".
SOURCE: The Economic Times
Reserve Bank of India (RBI) Governor Raghuram Rajan on Friday said the rupee might become fully convertible in the next few years. "My hope is we will get to full capital account convertibility in a short number of years," he said, addressing the convocation at the Gokhale Institute of Politics and Economics here. Full capital convertibility means a foreign investor can repatriate his money into his local currency at will; this isn't allowed in India. Rajan said RBI was fairly open to the inflow of foreign funds into the country but there were a few areas such as debt (short-term flows) in which the central bank preferred to keep tight control.
On Friday, Finance Minister Arun Jaitley launched India's first international finance centre in Gujarat. Full rupee convertibility could go a long way in effective functioning of this financial services hub. Many analysts have credited RBI for its policy of partial capital control, which helped it tide over the impact of the currency meltdown, which had hit many South Asian economies with full capital convertibility in 1997-98. In May-August 2013, capital control helped the country withstand the effects of speculation of the US Federal Reserve tapering its monetary stimulus programme, despite India seeing as much as $20 billion being pulled out by foreign investors.
Following India, economy being liberalised in 1991, the government and RBI have been progressively lifting curbs on capital flows, as a result of which foreign institutional investment into domestic has risen to $31 billion now. When asked whether the Federal Reserve's plan to end the zero-interest rate regime soon would have an impact on India, Rajan said: "The global liquidity glut will eventually come to an end, when the Federal Reserve starts to increase interest rates." He came out strongly against international organisations that sided with industrialised countries. "In emerging markets, we have been too quiet, saying what the industrial world does is the best for global economies. Sometimes, it is but we need better discussion, better policies," he said. Also, there was a need to avoid spillover of the monetary policies of various countries, he said.
SOURCE: The Business Standard
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 55.54 per barrel (bbl) on 10.04.2015. This was higher than the price of US$ 55.21 per bbl on previous publishing day of 09.04.2015.
In rupee terms, the price of Indian Basket increased to Rs 3464.03 per bbl on 10.04.2015 as compared to Rs 3437.37 per bbl on 09.04.2015. Rupee closed weaker at Rs 62.37 per US$ on 10.04.2015 as against Rs 62.26 per US$ on 09.04.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on April 10, 2015 (Previous trading day i.e. 09.04.2015) |
Pricing Fortnight for 01.04.2015 (Mar 12 to Mar 27, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
55.54 (55.21) |
53.61 |
|
(Rs/bbl |
3464.03 (3437.37) |
3352.77 |
|
|
Exchange Rate |
(Rs/$) |
62.37 (62.26) |
62.54 |
SOURCE: PIB
After a hiatus of over two years, India and the European Union (EU) are likely to discuss the proposed Broad-Based Trade and Investment Agreement (BTIA) on April 13. This will be the first meeting between the new leadership in both India and the EU. The talks are scheduled between Commerce Minister Nirmala Sitharaman and EU Trade Commissioner Cecilia Malmström, on the sidelines of the Hannover Messe, the world’s largest industrial fair. India is the fair’s partner country for the first time. The EU has insisted on a higher level of environmental standards under the BTIA or Free Trade Agreement (FTA) with India. EU had said while talks on slashing of tariffs across agriculture and industrial goods can continue, it was of vital importance for the EU to adhere to global standards.
According to commerce department officials, the matter might be discussed when both ministers meet next week. Sitharaman is accompanying Prime Minister Narendra Modi to the fair in Germany. The meeting between the ministers, being touted as the first attempt to break the ice, is taking place in the wake of a letter written by Malmström to Sitharaman last month urging her to restart and expedite the negotiations. This was the first official communication from Brussels to New Delhi on the pending FTA. EU ambassador to India João Cravinho had told Business Standard in an interview: “Standards are something that will make a lot of sense. You can call it something else, change the names, if you want. That’s fine. It doesn’t have to be called Euro IV or Euro V for car emissions. You can call it Bharat IV, Bharat V, no issues. The important point is that there should be convergence on standards and we are willing to engage with the bureau of standards that we have been doing but we want to do more.”
On the issue of intellectual property rights (IPR), Cravinho said the EU wanted India to only adhere to global trading norms under the World Trade Organization (WTO)’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). “The point about IPR is not that we are asking India to adhere to TRIPS, which is fine, we are not asking for TRIPS plus (provisions) but it is important that it should not be TRIPS minus. So that’s an issue we have with IPR and that’s what the Indian government accepts … We can haggle about tariffs, this is part of the process. But what should not be lost from sight is that due economic logic of developing agreements in a rapidly changing globalised world,” the ambassador added.
Talks for the FTA or BTIA started in 2007 and 13 rounds of talks have been held. However, the talks were stalled for over two years due to the change of guard both in India and the European Commission. Over these years, the proposed FTA was ALSO attacked by civil society groups, non-government organisations and activists mainly on the issue of access to affordable health care and medicines. The FTA seeks to slash tariffs by 90 per cent over 10 years from the implementation of the pact. The EU accounts for almost 17 per cent of the country’s total exports. The region is currently India’s largest trading partner with bilateral trade worth $130 billion in 2013-2014.
SOURCE: The Business Standard
Expecting the removal of trade sanctions imposed on it by western nations, Iran has proposed a free trade agreement with India to boost bilateral trade and investment. The matter came up for discussion during the recent visit of Commerce Secretary Rajeev Kher to Tehran. He was there for the first meeting of the joint working group (JWG) of the two countries. "Iran is very keen to enhance its trade relations with India. It wants to increase its share in the global trade and they said that India can play a very major role in fulfilling that ambition," Kher told PTI.
"Iran has proposed to negotiate a preferential trading agreement with us. I told them that India will consider this proposal very positively and will soon respond after taking the appropriate mandate from the government," he added. Kher said the pact would be beneficial for India as through Iran, it can get market access to some parts of Europe and Africa. He said he met his Iranian counterpart and members of several industry chambers in Tehran and now the JWG would meet every year as it would institutionalise the framework.
Iran is in the process of reaching an understanding with the six world powers on its contentious nuclear programme, which may ultimately lead to lifting of trade sanctions on the Islamic nation. The move would help Iran to enhance its trade ties with its trading partners including India. On discussions over basmati rice exports to Iran, Kher said India raised the issue of high import duty, declining imports of the commodity from India and stringent standards. "We discussed all the issues on basmati rice. Iran has said that they have adopted the Codex plus standard and they expect all their suppliers to comply with them. Indian exporters would have to comply with that. We will see how we can do that," he said.
Codex is an international standard for food trade for safety, quality of products. Iran, however, assured that it would increase imports of basmati rice from India as "New Delhi is a chosen partner for basmati rice for them", he added. India’s basmati rice exports to that country have declined to USD 600 million from USD 1.4 billion annually. Iran has not being issuing fresh import permits since October 2014. India’s overall basmati rice exports declined by over six per cent to 2.57 million tonne during April-December 2014 as compared to 2.74 million tonnes in the same period last year.Iran is the largest basmati rice importer, accounting for around 60-65 per cent of total basmati rice exports from India. Basmati rice was India’s second largest export commodity after buffalo meat to Iran.
SOURCE: The Bilaterals
As major markets like the US are showing positive signs, apparel exports of Bangladesh have been on the rise, but they need to grow by 10 percent every month in order to achieve their target of $27 billion in the current fiscal year, said Shahidullah Azim, vice-president of Bangladesh Garment Manufacturers and Exporters Association, the garment makers' platform. Garment exports to non-traditional markets have growth by 7 percent year-on-year in the July-March period.
According to Export Promotion Bureau, garment exports surged by 3.16 percent year-on-year to $18.62 billion in the first nine months (July-March) of the current fiscal year. Exports of other major products like jute increased 6.62 percent to $652.84 million and home textiles 3.47 percent to $592.45 million. While exports of leather goods declined 1.14 percent to $828.36 million. The impact of political unrest would be seen three to four months later when exporters will get their payments, as garment makers bagged fewer than normal orders from retailers between January and March.
Exports rose 7.43 percent year-on-year to $2.59 billion in March, a development which acted as a ray of sunshine amid the gloomy economy. The figure takes the total export earnings so far in fiscal 2014-15 to $22.90 billion, up 2.98 percent year-on-year.
SOURCE: Yarns&Fibers
Bangladesh exporters yearn for tax at source on export earnings and tax on cash incentives to be waived or cut down in the budget for fiscal year 2015-16 to make it uniform for all exporters, as it is not a profit of the exporters. The exporters, textile mills, jute and plastic sectors proposed to the National Board of Revenue (NBR) to cut tax at source on export to 0.30 per cent from existing 0.60 per cent.
Currently, apparel exporters are enjoying 0.30 percent tax rates on export bill while others are paying 0.60 per cent Bangladesh Textile Mills Association (BTMA) leaders urged the NBR to continue special income tax rate at 15 per cent for primary textile sectors including spinning, weaving, dying, printing and finishing mills. The reduced tax rate is scheduled to expire in June, 2015. The BTMA also sought tax holiday facility for new investment in spinning, weaving and other factories under primary textile sector to encourage investment in the sector.
BTMA president Tapan Chowdhury sought policy support in the budget to recover from losses in businesses due to ongoing political impasse. He proposed waiver of 3.0 per cent tax at source on local letters of credit for supply of raw materials. Bangladesh Jute Mills Association (BJMA) leaders proposed to the NBR to withdraw the provision of imposition of minimum tax on company and allow the sector to enjoy 15 per cent income tax. Jute Goods Exporters Association leader S Ahmed Majumder said that the jute goods exporters are small and medium businesses which are facing difficulties to pay higher licence fees and 15 per cent VAT on it.
Jute Mills Association secretary A Borik Khan proposed to withdraw tax at source for export of jute products and cash incentives as the number of jute goods exporters declined to 323 from 500 due to financial crunch. According to Terry towel and linen manufactures and exporters association director Shahadat Hossain, the sector is facing uneven competition in the export market. Some 48 industries out of 105 have faced closure so far. The sector attained an average growth of 32 percent in the last decade which saw a decline in its export earnings. Addressing the situation, the association leaders proposed to waive tax on cash incentives, local L/Cs and set a reduced income tax rate of 10 per for the sector.
SOURCE: Yarns&Fibers
The Russian Ministry of Industry and Trade has designed a package of measures, aimed at supporting the country’s technical textiles and nonwovens industries that is steadily growing. This is reflected by the number of new investment projects announced for implementation in recent months. The increase in production of technical textiles is part of the ambitious plans of the Russian government for the increase of the share of domestically made technical textiles - up to 80% of the local market by 2020.
Balashov textile mill (Baltex), one of Russia’s leading producers of technical textiles and nonwovens has recently announced one such project which involves investing up to RUB 10 billion (US$200 million) in the expansion of the production of polyamide fibres and fabrics during the next few years. Implementation of the project has already been confirmed by Alexander Melnikov, director of Baltex and vice-president of the Russian Union of Chemists. At present the company is experiencing a shortage of raw materials, which is preventing a further increase in production, but the commissioning of a new factory should help to partially solve this problem.
Currently the level of utilization of the company’s production capacities is estimated at 30%, however there is a possibility that this figure will significantly increase in the coming years. The increase in production of raw materials will create conditions for a significant increase of production of technical textiles by the company by 2017-2018. Apart from Baltex, other leading Russian producers of technical textiles and nonwovens are Kuibyshevazot, Kurskhimvolokno as well as BTK Group, who have also announced their plans for Russian expansion.
According to Arina Slynko, board member at BTK, one of Russia’s leading technical textiles producers, the company continues to increase personnel for its new plant, which is located in the city of Shahty (Rostov region) and will specialize in the production of technical textiles. There is a possibility that the new plant may be already commissioned by the end of the current year. At the same time, implementation of another large-scale industry project has already been started. The project is being executed by the National Investment and Finance Corporation (NIFC), one of Russia’s largest investment corporations, and involves the establishment of a large cluster for the production of textile and technical textile products in the Russian Ryazan region.
At present the Russian technical textiles market is estimated at RUB 70-80 billion (US$2 billion), of which the share of domestic production does not exceed 15% - 17%. The same situation is currently observed with the raw materials base, which is reflected by the fact that the share of imports of synthetic fibres and yarns in the domestic market is estimated at about 71% according to estimates by analysts of the Russian BTK Group. Currently, foreign companies are still dominating the Russian market of technical textiles and nonwovens and many of which are considering further expansion. For example, US headquartered DuPont plans to build several facilities for the production of technical textiles and nonwovens in some cities in Siberia.
There is a possibility that similar plans may soon be announced by the Finland’s Ahlstrom Oyj Corporation, one of the EU’s largest producers of glass fibre, which operates a plant for the production of glass cloth in the Tver region, which was opened in 2008. At the same time US based companies Kimberly-Clark and Proctor & Gamble have been operating plants for the production of diapers in Russia and have also not ruled out the possibility of their expansion during the next few years. So far, Russia has had only two projects, which have involved large-scale production of technical textiles, and in particular those, implemented by the BTK group in the Rostov region and a cluster for the production of polyester fibres in the Ivanovo region, which should be commissioned in 2016-2017.
The latter project is expected to be one of the most ambitious in the Russian technical textiles industry in recent years. According to Andrew Razbrodin, head of the Russian Union of Textile and Light Industry Producers (Soyuzlegprom), this is an extremely promising project and if everything goes ahead the new production will be able to reach its design capacity during the next 3-4 years. In this case, any false move can easily ruin the whole process. According to Paul Konkov, the governor of the Ivanovo Region, local company Ivregionsintez, (which is responsible for the implementation of the project) has already completed investment documentation for the project and has already sent it for the consideration of Vnesheconombank, one of Russia’s largest banks, which is expected to provide the majority of funding for the project.
SOURCE: Yarns&Fibers
Everything in synthetic fibre markets, especially polyester, has been revolving around crude oil price, and hence the US$. The first signs of policy change in US, expectation of a hike in interest rates, have led to a flight to the US$, supported by other currencies being devalued. And with world powers reaching a framework agreement with Iran to curtail its nuclear program, the stage has been set to end the sanctions that have restrained Iran’s exports. The tentative agreement clears the way for discussing detailed settlement that should ease Western fears that Iran is seeking to build an atomic bomb, in exchange for lifting the economic sanctions. Easing sanctions would allow Iran to sharply increase its oil exports, further straining a market that is already grappling with oversupply and hence exert pressure on oil prices. YnFx believes that crude oil prices with rise, both in April and more pronounced in May, but move south later until September 2015. Thus, the polyester chain pricing, beginning from ethylene to filament and spun yarn will follow up.
In March, Asian ethylene (one of the primary feedstock to produce polyester) was dearer on tight supplies and prices hit a 5-month high on unplanned outage in the last week. Prices were up 28% on the month averaging US$1,209-1,211 a ton CFR SE Asia. For April, ethylene spot is likely to remain flat to up as supply tightness will ease with crackers returning from turnarounds. The expected rise in oil price in May will support ethylene pricing move up atleast by US$20 during the month. Paraxylene (another feedstock for polyesters) spot prices declined in March on weak demand and uncertain outlook. Asian marker, the CFR China averaged US$847-848 a ton, down 2% on the month. Prices in April may see partial recovery as the markets will be weak but run in line with upstream and jump in May on oil support.
MEG and PTA, the two polyester intermediates have been following their respective feedstock ethylene and paraxylene markets. MEG prices see-sawed throughout March in Asia but inched up on the month. Bearish sentiment held high opening the month, after retreating from rushing high post Spring Festival holidays. The Asian marker was up 0.4% in March averaging US$825-828 a ton FOB SE Asia. Spot is likely to increase atleast 1% in April, given the surge in ethylene price in March and further by US$25 in May. PTA prices soared opening March but as supply dried and prices kept falling later. However, it ended the month up 4.6%, averaging US$623-625 a ton CFR China. A better performance in polyester sector is likely to support PTA markets in April, which may probably see the first round of bottoming-out and rising in May.
Polyester chip prices edged down in Asia with offers for semi dull chips at US$1,032-1,050 a ton a ton while super bright chip were also at US$1,030-1,060 a ton. April may not be able to recoup this fall but demand emerging from end April will help chip markets to recover most of the losses and move up further in May. Polyester filament prices were mostly stable in March while a few producers raised offers. In China, POY 75/72 were almost flat at US$1.30-1.32 a kg in Shengze market while Indian POY 130/34 prices were steady at US$1.47-1.49 a kg, unchanged from last month. PSF markets saw prices firming and increase in trade volume in end March. In China, 1.4D PSF was pegged at US$1.14-1.19 a kg, down US cents 3-4 from last month. Indian PSF prices were at US$1.26 per kg, up 2.6% from February. April will not see any major change filament and fibre prices, but cost support may help markets stabilize and price rising marginally by US cents 1-2 during May.
SOURCE: Yarns&Fibers
Turkey is expecting the bilateral trade volume with India to jump to over $22 billion in the next seven years from $7.49 billion in 2014, given the favourable business climate prevailing in both the nations. "I expect the trade between India and Turkey to rise three-fold from $7.49 billion in 2014 to over $22 billion in the next 5-7 years, supported by favourable business climate in both countries," Turkey Deputy Minister of Economy Adnan Yildirim said here. He was addressing a gathering at the Turkey-India Business Forum. The recent international developments like sharp fall in crude oil prices and recovery in US economy augur well for the economic growth of the two countries and this would lead to a sustainable bilateral trade, Yildirim added.
According to commerce ministry, the bilateral trade between the countries stood at $5.19 billion in 2013-14. The trade is in the favour of India. The Minister also said that Turkey, which ranks 17 in size among all economies in the world, is aiming to improve its position to 10 by 2023. India's exports to Turkey include petroleum products, vaccines, cotton yarn, organic chemicals, denim, steel, granite and cars, while Turkey's exports to India include poppy seeds, auto components, marble, textile machinery, cumin seeds and copper ores.
SOURCE: The Economic Times
TEXTILE manufacturers have called on President -elect, Major General Mohammadu Buhari to implement the recently formulated policy road map for the development of the sub sector of the economy, saying it would help in reducing the influx of foreign textile products into the Nigerian market. The Director General of the Nigerian Textile, Garment and Tailoring Employers Association (NATGTEA), Jaiyeola Olarewaju told The Guardian in his Ikeja office Thursday that a committee put in place by the government to implement the three months old policy could not perform because of fund paucity. He therefore called on the president-elect to ensure the implementation so as to revive the ailing sector. According to Olarewaju, the policy was the measure needed to reposition the Nigerian Cotton, Textile and Garment industry, adding that the new policy document was a product of extensive consultation among stakeholders, the international investor community, the economic management implementation team, relevant ministries, department and agencies.
The new policy which came into being in January, 2015, made it mandatory for the development of integrated textiles and Garment Parks (ITGPS) near raw materials, markets, and requisite infrastructure. “As done in other countries with thriving textiles sector, as a part of the Nigerian cotton, textiles and Garment (CTG) measures, integrated Textiles and Garment Parks (ITGPS) will be developed with nearness to raw materials, nearness to market, availability of requisite infrastructure and geo-political spread as criteria for determining the locations of these parks.” The parks, according to the policy, will be fully private sector driven initiative or on a Private Public Practice (PPP) basis. While some of the parks are expected, under the policy to be dedicated to exports and will be located within existing special economic zones, others will be entirely new initiatives.
The ITCIPs are expected to provide the industry with world- class facilities needed for setting up competitive textile units. The different cluster of ITGP world host between 30 and 40 textile and garment plants in a way that all of them would have common user facilities including roads, drainage, water supply, grid connection, capture power supply, common warehouse and factory building. The new policy on textile, garment and cotton also made provision for the supply of power to the industrial parks to be created in the country. Specifically, it said they would have captive power and coal power production since power constitutes more than 30 per cent of manufacturing cost in the sector. “Between 30 and 35 per cent of Textile and garment manufacturing cost are energy related expenses, therefore, without addressing the industry’s energy needs, the sector simply cannot develop, the policy said, even as Olarewaju added that most of the manufacturers have been generating their own power, thus pushing up their production cost. “Most Nigerian Textile plant self generate 80 per cent of the Power they use. Although textile plants in the southern Nigeria have access to natural gas, the energy cost to them is still high when compared to textile mils in Ethiopia, Egypt and Uganda.
The textile plants in the Northern area are using diesel or Low Power Fuel Oil (LPFO). Plans to extend gas supply network from Ajaokuta to Abuja, Kaduna, Kano will eventually deliver gas to the Northern part of the country. The Federal Government Intervention is needed to address the immediate energy need of the industry, he said. The new policy, if implemented, would ensure the collaboration between the relevant government departments and ministries, to ensure capture power and coal power production at each of the zones. Besides, the policy recommended the direct procurement of natural gas, by textile companies, from the Nigeria National Petroleum Corporation (NNPC) at the same cost applied to power generating companies for a period of three years, beginning from the policy implementation date. The policy also called for collaboration between the Federal Ministries of Agriculture, Trade and Investment to ensure that the textile and Garment Manufacturers get imputes from local sources in order to reduce their cost.
“The Nigeira CTG sector has also been designed to secure imputes mostly from local soruces, which requires strong collaboration between the Federal Ministry of Industry, Trade and Investment (MITI), the Federal Ministry of Agriculture and Rural Development. The later should be commended for specific initiatives in cotton production, including the development of supply of BT cotton, supply of certified quality seed to cotton farmers at subsidized rate and the on-going supply of jute bag for cotton harvest in order to reduce contamination.” The policy therefore recommended the establishment of cotton buying centres in areas where cotton are being manufactured, as applicable in developed countries, “where a body is responsible for the development of cotton markets, being buyer of last resort and setting a guaranteed minimum price.”
According to the policy document made available to The Guardian in Lagos Thursday, the government recognized the “extremely week condition of the Nigerian Textile sector,” hence it observed the need to give it a significant and fiscal reprieve to encourage investors. Therefore, the policy recommended a new tariff regime, already approved by the present administration, which placed a tariff of between 20 and 35 per cent, and between 10 and 15 per cent other levy on imported Textile products respectively. This, it said, will discourage importation of the products to reduce the influx of foreign and inferior products into the Nigerian Textile market. Other fiscal measures, recommended in the policy, to protect local textile firms, included the removal of tax on equipment and imputes for a period of four years, beginning from 2015, and application of industry wide Tax holiday for a period of three years.
‘‘All investors who invest on the sector from 2015-2019 will be able to import imputes used in Textile manufacturing (plant and machinery, spare parts, dyes, chemical and packaging material shall be duty and VAT free for a 4 years period and to service the industry, all major textile manufacturers in Nigeria should benefit from a 3 year tax holiday (2015-2017). The new policy also granted textile manufacturers some relief and incentives aimed at developing the sub-sector. It said any manufacturer or investor that invest a minimum of $10 million in Nigerian cotton, Textile and Garment, and employ a minimum of 500 direct Nigerian Staff from their Nigerian manufacturing operations would be given offer to import 50 per cent of their imputes levy free for five years.
SOURCE: The Nigerian Guardian
ITMA 2015, the largest textile and garment manufacturing technology showcase all set to welcome visitors from around the world when it takes place from 12-19 November in Milan. As ITMA 2015 countdown begins, organisers have released the latest edition of the ITMA Sustainability Bulletin – the quarterly report on environmental performance. It is clearer than ever that sustainability remains a topic of vital concern to manufacturers throughout the textile supply chain.
At this ITMA year, everywhere the intensive R&D activity that is always a feature of the run-up to this landmark show to see. Most of this effort is focused on efficiency and productivity – broad terms that often signal the goal of reducing water, energy and material usage and are therefore at the heart of sustainability in the particular conditions of the textile manufacturing industry, said Charles Beauduin, President, CEMATEX.
CEMATEX, the European Committee of Textile Machinery Manufacturers, the owner of ITMA, which has a 64-year history of displaying the latest in machinery and software for every single work process of textile making. Sustainability as applied to the sourcing and application of materials is a topic heard in a great deal in recent years. In the markets for both natural and man-made fibres the origins of fibre have come under scrutiny, leading to the expansion of the organic movement, the establishment of a variety of eco labels and the increasing application of synthetic fibres made from recycled polymers, said Charles Beauduin. In this developing process, textile technologists are also being encouraged to consider what will happen to their products at the end of their lifetime, and recycling of textile materials is one of the topics that will feature in the newly added Hall 8 at ITMA 2015 in November. Textile industry has a long way to go in improving its overall environmental performance.
SOURCE: Yarns&Fibers
