The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 23 April, 2015

NATIONAL

 

INTERNATIONAL

 

Textile Raw Material Price 2015-04-22

Item

Price

Unit

Fluctuation

PSF

1290.62

USD/Ton

2.60%

VSF

2009.45

USD/Ton

0.82%

ASF

2450.55

USD/Ton

0%

Polyester POY

1413.15

USD/Ton

1.76%

Nylon FDY

3071.36

USD/Ton

0%

40D Spandex

6567.47

USD/Ton

0%

Nylon DTY

5856.81

USD/Ton

0.14%

Viscose Long Filament

1650.04

USD/Ton

1%

Polyester DTY

2891.65

USD/Ton

0.57%

Nylon POY

2597.58

USD/Ton

0%

Acrylic Top 3D

1601.03

USD/Ton

2.08%

Polyester FDY

3381.76

USD/Ton

0%

30S Spun Rayon Yarn

2662.93

USD/Ton

0%

32S Polyester Yarn

1960.44

USD/Ton

0.84%

45S T/C Yarn

2940.66

USD/Ton

1.12%

45S Polyester Yarn

2826.30

USD/Ton

0%

T/C Yarn 65/35 32S

2679.27

USD/Ton

0%

40S Rayon Yarn

2058.46

USD/Ton

0.80%

T/R Yarn 65/35 32S

2532.24

USD/Ton

1.31%

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 = 0.16337 USD dtd. 22/04/2015)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

 

Exporters urge PM Modi to review Foreign Trade Policy 2015-2020

The Federation of Indian Export Organisations (FIEO) has urged Prime Minister Narendra Modi to review the new Foreign Trade Policy (FTP), as exports might contract again this financial year. The FTP, released on April 1, has consolidated all incentive schemes under the Merchandise Export From India Scheme (MEIS). The rates of incentives were reduced to 2-5 per cent from 2-7 per cent. “We have written to the PM and the commerce department,” said S C Ralhan, president of FIEO, during a press conference here on Wednesday. “We would like to apprise him of the situation. Exporters need oxygen to live. The way things are moving, it will be a miracle if we reach even $310 billion this financial year.”

Ralhan said this was because the order bookings were 40-50 per cent lower this year against last year. He added with exports dwindling and the rupee gradually strengthening, a massive job loss in the export-oriented sectors was expected. “Earlier, the order bookings for some of the traditional sectors such as engineering, textile and agricultural products used to be done four-five months in advance. Now we cannot even book an order a month in advance, due to instability in policy,” he said. He said FIEO would ask the government to restore the MEIS benefit under the earlier rate for at least two years. “While we appreciate the move to take exporters gradually away from subsidy, the timing of the move probably is not correct. The MEIS benefit should be restored at the same level as earlier at least for 2015-2016,” he said.

In 2014-2015, total shipments from India contracted 1.23 per cent to $310.5 billion against $314.4 billion in the previous year. FIEO demanded that 70 more sectors be added under MEIS with revised rates for rewards. It asked the government to classify the countries according to the incentives announced. According to Ralhan, although containerised exports at major ports in each quarter of 2014-2015 was growing over 2013-2014, the gap had narrowed. “This clearly shows that volume of exports is also under threat now. This is very worrying and we need to reverse this trend.” He urged the government to immediately re-introduce the three per cent interest subvention on a retrospective basis from April 2014. He said the delay in re-introducing the scheme was causing problem for the micro and small firms. The contraction in India’s exports in 2014-15 was the third in the past six years. In 2012-13, exports had fallen 1.85 per cent to $300 billion from $306 billion in 2011-12. In 2009-10, exports fell 3.4 per cent year-on-year. Shipments contracted a steep 21.06 per cent in March, the most in 67 months.

SOURCE: The Business Standard

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Plea to bring textile sector under interest subvention scheme

Members of the Texpreneurs Forum on Wednesday met Union Ministers, and officials seeking extension of the interest subvention scheme to entire textile sector. The Union Government had stated that the eligible sectors for the scheme would be announced shortly. “We have briefed the Ministers and officials about the need to give the coverage of the scheme to spinning mills sector too,” said Prabhu Damodaran, secretary of the Forum, who led the delegation.

Mr. Prabhu Damodaran said that the spinning sector was going through a tough period with the EBITA (earnings before interest, taxes, depreciation and amortisation) coming down, and a majority of mills were registering huge losses. “This has been because of various factors like China reducing the imports of yarn from India, and the investments made on capacity expansion before 2010 in mills gone waste,” he said. The forum has asked for making cotton and fabric eligible for Merchandise Exports from India Scheme under Foreign Trade Policy at least for exports to China and Bangladesh, and making the use of yarns and fabrics of Indian origin mandatory for permitting duty free imports of apparels from Bangladesh.

SOURCE: The Hindu

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GST meet: new hurdle on 1% additional levy

A number of state governments on Wednesday asked for an increase in the time period of the one per cent additional tax on the proposed national goods and services tax (GST) from the currently accepted two years. The constitutional amendment Bill on GST has this: “An additional tax on the supply of goods, not exceeding one per cent, in the course of inter-state trade or commerce shall be levied and collected by the Government of India for a period of two years or such other period as the Goods and Services Tax Council may recommend.”

Business Standard has learnt from government sources privy to discussion in the empowered committee meeting on Wednesday that the time period for the additional tax could be extended, if a two-thirds majority of the empowered committee agrees. It is learnt a number of states want an increase in the timeline to a yet undecided number of years and some are willing to push for voting in the committee.

Separately, in a press briefing, Kerala’s finance minister, K M Mani, who is chairman of the empowered committee, said at the meeting, some states had expressed concern over the Central Sales Tax compensation and asked they be compensated for 10 years or beyond that for the revenue loss from a GST. He added that manufacturing states such as Maharashtra and Gujarat have demanded they be allowed to levy two per cent additional tax over and above the state GST rate, though no decision had been taken on this. For a decision, this provision also requires a two-third majority in the committee.

If the Centre and the states do not agree on the rate or schedule of the additional tax, it is likely to disrupt the planned rollout date of GST, sources said. After the meeting in the morning, Union finance minister Arun Jaitley said the constitution amendment Bill, introduced in Parliament's winter session, would be passed in the current session. And, that he remained optimistic on introduction of GST, creating a nationally unified market and removing trade barriers in the form of cascading effects of taxation, from April 1, 2016. “In view of the near-unanimous support of states, that it is going to be a win-win situation for all, we will go ahead with the amendment in the current session of Parliament. I will be giving notice, so that it can be taken up for discussion in the Lok Sabha in the next couple of days.” Jaitley also said some states had asked for minor tweaks to the language of the constitutional amendment. Sources later said these pertained to replacing the word ‘may’ with ‘shall’ in the phrase, “The Centre may compensate the states…”. “The finance minister explained that in legal language, ‘may’ is as good as ‘shall’,” said a government official.

The Centre and states are also working on a new revenue-neutral Rate, currently pegged at 27 per cent. RNR is one at which there will be no revenue loss to states after GST implementation. The recalculation is necessary as at present it does not take into account the taxation of petroleum products, as also the one per cent additional tax which states can levy as part of the GST Bill. Jaitley said the empowered committee did not discuss RNR. The Delhi-based National Institute of Public Finance and Policy (NIPFP) has been asked to rework the previously proposed RNR of 27 per cent, as this was based on the figures of 2010. NIPFP is expected to give another report on the GST rate by May 7-8, when the empowered committee is scheduled to meet in Thiruvananthapuram.  The new RNR would be based on the data available for 2014-15. Among the states, Tamil Nadu voiced reservation over a Bill being introduced in Parliament before a consensus on actual rates and tax bands is evolved through the empowered committee. "(This) is not acceptable to us,” said its minister for commercial taxes and registration, M C Sampath. Haryana's finance minister, Abhimanyu, urged the Centre to increase the compensation period from five years to 10 years to make good the losses to manufacturing and surplus producing states. West Bengal objected to the mechanism of taxation of tobacco in the amendment Bill. While tobacco and its products have been included in the GST, the Centre is allowed to levy excise duty, States would not be able to levy higher tax than the GST on these goods.

SOURCE: The Business Standard

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GST Bill to be taken up in Parliament in few days: Arun Jaitley

With most states on board, the government plans to take up the Constitution Amendment Bill on GST for consideration and passage within a few days during the ongoing session of Parliament to ensure roll out of the new indirect tax regime from April 1, 2016.  "In view of the near unanimous support of states, that it is going to be a win win situation for all, we will go ahead with the Constitution Amendment in the current session of Parliament," Finance Minister Arun Jaitley told reporters after a meeting with the members of the empowered committee of state FMs.

The bill on Goods and Services Tax was introduced in the Lok Sabha in December. A single rate of GST will replace central excise, state VAT, entertainment tax, octroi, entry tax, luxury tax and purchase tax on goods and services to ensure seamless transfer of goods and services. "I will be giving notice (so that it can be) taken up for discussion in the Lok Sabha...in next couple of days," Jaitley said.  Although most of the states are on board, Tamil Nadu voiced reservation over a bill being introduced in Parliament before a consensus on actual rates and tax bands is evolved through the empowered committee. The GST legislation, being a Constitution Amendment, will require support of the two-third members of Parliament and thereafter ratification by half of the states.

"Today the positive is (that) states are quite determined and they see the obvious benefits of the GST. The concerns cut across party lines and it is a genuine relationship between the centre and states. Broadly, the approach of the states and centre is converging in the same direction," he said. Minister of State for Finance Jayant Sinha said: "We see no obstacles that will interfere with the April 1, 2016 timeline for GST."

SOURCE: The Times

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Exports likely to remain below $300bn in FY16: FIEO

Goods exports in 2015-16 may be even lower than the previous year as preliminary data for April from some parts of the country indicate a drop in both volume and value, exporters’ body Federation of Indian Export Organisations (FIEO) has said. “The figures that are coming in are very worrying, as they show that even volumes are under threat now. We don’t see exports reaching even last year’s figures of $310 billion, unless some miracle happens,” FIEO President SC Ralhan said at a media interaction on Wednesday. The main reason for the decline in exports continues to be low demand from key markets such as the EU, China and Japan and low global commodity and crude oil prices. “We want to meet both the Prime Minister and the Finance Minister to explain our situation and request that our demands for support be considered sympathetically,” Ralhan added.

Government support sought

The exporters’ body has called for an immediate re-introduction of the interest subvention scheme for exporters, timely reimbursement of input taxes and restoration of the higher rates of export incentives for both merchandise and services. Exports declined 21 per cent in March 2015, pulling down total exports in fiscal year 2014-15 by 1.23 per cent to $310.53 billion. Latest data from CONCOR show that in Ludhiana, container exports between April 1 and April 15, 2015 dropped 26.83 per cent compared to the same period in the previous month. “There has been a drop of about 50 per cent in the orders that we are receiving now,” Ralhan pointed out. The slowdown in China’s economy is a big worry for exporters, as it has both regional and global ramifications. Exporters also want a special package for the European Union market which is going through turmoil. “Interest subvention at 3 per cent should be extended immediately to exporters, preferably from April 2014. The high cost of credit is hurting micro and small companies,” Ralhan said.

‘Restore incentives’

The exporters’ federation has also asked the Commerce Ministry to restore the earlier rates of incentives for both goods and service exporters, which were brought down for most items in the new Foreign Trade Policy announced early this month. “While we appreciate the government’s move to take exporters gradually away from subsidies, the timing of the move probably is not correct,” the FIEO chief said.

SOURCE: The Hindu Business Line

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Entrepreneurs can apply online for 26 services from June

Starting June, entrepreneurs would be able to apply online for 26 services, including PAN and DIN numbers, through an e-Biz portal, a move to improve ease of doing business.  Secretary in the Department of Industrial Policy and Promotion (DIPP) Amitabh Kant said, adding that there is an urgent need for labour reforms in the country. With the integration of these services on eBiz portal, an entrepreneur can avail of all these services 24x7 online -- submission of forms, attachments, payments, tracking of status and obtaining the licence/permit from the portal. “We have already done that for 14 services and by the end of June we will have 26 central government services (integrated with the e-Biz portal),” Kant said here at a function. He added that by the end of the year 10 states would be integrated with the portal, which was launched in February.

SOURCE: The Millennium Post

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World's confidence in India growing due to reform agenda: Andrew Robb, Minister of Trade and Investment, Australia

India and Australia have put the negotiations on the comprehensive economic cooperation agreement (CECA), or free trade agreement (FTA), on a fast-track. However, both the countries are struggling to reach a consensus on issues relating to tariff, market access and preservation of competitive positions. In an interview with Sanjay Jog, visiting Australian minister for trade and investment Andrew Robb explains how there is a confidence globally in India.

India and Australia just concluded seventh round of talks on CCEA. What is the present status?

Two prime ministers have agreed that it should be comprehensive, high quality and should be completed by 2015-end. We are making good progress. Indian businesses want issues to be cleaned up by Australia to do the business. Australian businesses want similar action by the Indian government.  A comprehensive economic cooperation agreement with Australia poses no threat to the Indian domestic market. Australia has shown its commitment to free trade for decades and most recently concluded agreements with Japan, Korea and China.

What are the issues on which both the countries differ?

Origin is a typical issue in every agreement, which can be resolved. It cannot be an obstacle. There is a trade in goods, a lot of tariff. There is investment and services. We will have and had negotiations on tariff issues. There is an absolute priority on how to transfer Australian expertise to India to help unlock great (Indian) potential. That's what Prime Minister Narendra Modi wanted. He wanted an access to Australian expertise in a whole lot of different service areas such as health care, education, engineering, financial, architecture and design because we have got world class services. Australia is not a big economy but we have got wonderful skill training services.

Prime Minister Modi sees us having a role in training. We can try and make a big contribution and add value.  However, it is a matter of concern that there are less than 200 Australian businesses, which are more in trading.  But in Dubai alone, there are 350 Australian companies. We are in every major economy. But we have to create an agreement which removes the roadblocks.

What are those roadblocks and barriers which India needs to remove quickly?

Tendering for major government contracts is one of the major roadblocks. It needs to be fixed. For example, an air construction company cannot tender for highways. Then, there is a taxation issue. Often some tax treaties signed by India with countries put Australia at disadvantage. Therefore, we are looking for getting an equal treatment. This is not only from India alone but Australia will need to give similar treatment to India.

Modi is focusing on Make in India with a thrust on manufacturing. How Australia can be part of this campaign?

We are a high-cost economy and therefore cannot compete, especially in assembly projects. Our three car manufacturing companies will leave Australia by 2017.  However, Australia can contribute in high-end manufacturing services in India as we do it elsewhere. We are in a position to bring them here to share that expertise.  The access to Australian expertise will play a major role to unlock great potential in India.

Against this backdrop, falling two-way trade between two countries is a matter of deep concern?

Australia sells a lot of mining products. The quantity has not come off but the value of trade, especially due to falling prices, is in cyclical downturn. We want to see that two-way trade further grows in the areas of resources, energy, mining, logistics and distribution. After Modi took over, there are a lot of reforms in mining. Our best companies can play a major role in the now-opened mining sector.

How the Modi government's reform agenda will help expedite conclusion of talks on FTA?

There has been a remarkable impact, especially in terms of world confidence in India due to various steps taken by the Modi government. Confidence is a big factor. Things are happening. There have been de-regulations, cost being taken out of system and the red tape is being removed so that proper market is being established. I am  here for the third time in the last seven months. Companies are putting big commercial propositions, as India is on its way.

Can you tell when Australia can commence uranium supply to India?

I cannot give you an exact date. India and Australia have signed government-to-government agreement but there are certain technical requirements. The Australian treaty committee has finished the process as required under the law. One or two tracking issues are there, but we are not far away.

What is the update on Adani project as there is local opposition to the project?

Adani is proposing to develop the North Galilee Basin Rail Project (NGBR) to transport coal from the Galilee Basin to the Port of Abbot Point. It is worth $16 billion. A lot of opposition is from people who are opposed to fossil fuel not just coal but gas also. Adani is looking to develop huge coal deposits, the biggest in the Australian history. People opposing the project are making false and ridiculous claims. The Conservative government at the federal level and state government are fully supporting the Adani project. There is a bipartisan support to that project.

SOURCE: The Business Standard

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FIIs with tax pact shield may be exempt from MAT

Foreign institutional investors (FIIs) from countries with which India has double taxation avoidance agreements (DTAAs) that specifically exempt them from capital gains tax may escape minimum alternate tax (MAT) demands from the income tax department. "Wherever India has a double taxation avoidance agreement, they will get the treaty benefit. The treaty will be applicable," said Shaktikanta Das, revenue secretary, during a conference call with FIIs to address their concerns on MAT. "If there is an FII which has made investments from a country with which India has a tax treaty, it can present the facts while giving its reply to the income tax officer. It can explain the point and the tax officer will certainly take it into consideration. The treaty benefit will be applicable in this case," Das said. FIIs have been at loggerheads from 2007-08 with the tax department on the issue of MAT, and this has affected market sentiment.

India has DTAAs with 88 nations, of which 85 are in force. DTAAs with Mauritius, Singapore, Cyprus, France and the Netherlands exempt funds from capital gains tax in India, while those with the US, the UK and Luxembourg allow India to impose capital gains tax the way it wants to. FIIs from countries with treaty benefits such as Singapore, Mauritius and the Netherlands have received tax notices making MAT demands. "This clarification comes as good news for investors that treaty benefits override domestic laws," said Suresh Swamy, partner, PwC. "In view of our legal position that our treaties override our domestic law, we have been giving treaty benefits independently," said Anita Kapur chairperson of Central Board of Direct Taxes (CBDT). The top four nations investing in India through the FII route - the US, Singapore, Mauritius and Luxembourg - have DTAAs with India. Till May 2014, according to the Securities and Exchange Board of India (Sebi), of the total FII flow of about Rs 17 lakh crore, that from the US stood at Rs 5.29 lakh crore, Mauritius Rs 3.98 lakh crore and Singapore Rs 2.02 lakh crore.

"It is a well-established principle of tax laws that treaty provisions should override domestic tax provisions if they are more beneficial to the taxpayer. Thus, the relevant treaty provisions should be taken into account while determining the taxability of foreign investors. This will also avoid unnecessary litigation," said Vikas Vasal, partner, KPMG. Foreign brokerage firm CLSA reckons FII flows from the US accounted for 32 per cent of the overall amount till February 2015, Mauritius 22 per cent, Singapore nine per cent, Luxembourg nine per cent and the UK five per cent.

Despite the DTAA exemption, 46 per cent of the flows (from the US, the UK and Luxembourg) will face MAT demands. FIIs are gearing up to approach dispute resolution panels and Commissioner of Income Tax (Appeals) against the tax demand. The income tax department has been citing an Authority for Advance Rulings, Delhi, judgment in the matter of Castleton Investments, which went against the tax assessee, as the reason behind the MAT notices. "The fact that Castleton came from Mauritius did not impact the ruling on the legal issue [of] whether MAT applies to foreign companies," Kapur said. There have been three other rulings on MAT that went in favour of FIIs. In a case related to the Bank of Tokyo-Mitsubishi, a Delhi income tax tribunal ruled MAT was only applicable on domestic companies, not foreign ones. In another ruling related to Platinum Asset Management in 2012, the Mumbai income tax appellate tribunal ruled FIIs were not liable to pay MAT.

According to an analysis by Business Standard, after MAT was imposed, foreign investment in debt, equity and derivatives in India through participatory notes touched a seven-year high of Rs 2.72 lakh crore in March. Participatory notes are offshore derivative instruments used to invest in India by foreign investors not registered with the Sebi. According to current practice, those investing through participatory notes are not subjected to MAT.

SOURCE: The Business Standard

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Australia sees huge trade opportunities in India

Australia today said India provides huge trade opportunities and expects the bilateral trade to rise manifold in coming years as it pushed for early conclusion of an economic cooperation pact with New Delhi.  "We see significant scope to grow the investment relationship between India and Australia. India is Australia's 12th largest trading partner and their two-way trade volume stood at about 15 billion Australian dollar," Australian Minister for Trade and Investment Andrew Robb said.  "We expect trade between the two countries to increase manifold in coming years," Robb said.

By comparison our two-way trade with China, our top trading partner, is worth around A$160 billion. Indian foreign investment into Australia is worth almost A$11 billion, while Australian investment in India is A$6.6 billion, the minister said.  He was speaking at an interaction session 'Australia and India: Building economic value through trade, services and investment liberalisation', organised by CII here.  "Services represent around 70 per cent of Australia's economy, but just 15 per cent of our exports. This is an export we are determined to grow and there are strong prospects with India across a wide range of services, given it is one of the world's most rapidly growing services markets on account of a rising middle class," he said.

Building momentum towards conclusion of an Australia- India Comprehensive Economic Cooperation Agreement (CECA) is a key objective of both sides, the Minister said.  "I am determined to ensure that both services and investment are given real prominence in the CECA negotiations, along with improved levels of market access for goods trade."  During his visit to New Delhi on April 23, Robb will meet with Indian Ministers, senior business leaders, investors and policy experts.  "My aim is to keep building momentum (for CECA). There is enthusiasm on both sides to conclude a quality agreement this year. It won't be easy, but it certainly remains an achievable goal," Robb said.  His visit follows a formal round of CECA negotiations in Canberra last week and `Australia Business Week in India' (ABWI) in January. ABWI was the island country's largest-ever trade and investment promotion event in Indian sub-continent.

SOURCE: The Economic Times

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RBI currency swap pact with Lanka

The Union Cabinet on Wednesday gave the Reserve Bank of India the green signal for an agreement with the Central Bank of Sri Lanka, to extend $1.1 billion as a special /ad-hoc swap outside the Framework on Currency Swap Arrangement for SAARC member countries.  “This will help Sri Lanka in availing a safety net against the probable volatility of their currency and provide short-term liquidity that would contribute to Sri Lanka’s economic recovery. This will also strengthen India’s bilateral relations and economic ties with Sri Lanka,” an official statement said.  India has had a Framework Arrangement with SAARC countries since 2012.

The RBI, in a letter dated February 18, had proposed to make $400 million available to Sri Lanka under this Framework and the remaining $1.1 billion as a special/ad-hoc swap facility outside the Framework, but with the same terms and conditions, for six months against the request of the Central Bank of Sri Lanka.

SOURCE: The Hindu Business line

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Global crude oil price of Indian Basket was US$ 59.62 per bbl on 22.04.2015

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$ 59.62 per barrel (bbl) on 22.04.2015. This was lower than the price of US$ 60.49 per bbl on previous publishing day of 21.04.2015.

In rupee terms, the price of Indian Basket decreased to Rs 3745.33 per bbl on 22.04.2015 as compared to Rs 3806.03 per bbl on 21.04.2015. Rupee closed stronger at Rs 62.82 per US$ on 22.04.2015 as against Rs 62.92 per US$ on 21.04.2015. The table below gives details in this regard:

Particulars

Unit

Price on April 22, 2015 (Previous trading day i.e. 21.04.2015)

Pricing Fortnight for 16.04.2015 (March 28 to April 10, 2015)

Crude Oil (Indian Basket)

($/bbl)

59.62              (60.49)

54.92

(Rs/bbl

3745.33          (3806.03)

3425.91

Exchange Rate

(Rs/$)

62.82              (62.92)

62.38

SOURCE: PIB

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Green measures cutting pollution and costs in China's textile mills

Every day seems to bring another in-your-face reminder of China's environmental issues. This month alone, a Shenzhen canal turned blood-red; the Beijing sky appeared as if doomsday had arrived; and 100kg of dead fish inexplicably rose to the surface of a Guangdong fish farm. So, we're always pleased to see that there are some environmentally conscious initiatives in action to combat pollution, before it deforms our bodies and destroys our crops à la a nuclear winter, spelling utter ruin.

In response to the poisonous effect of China's textile industry, US-based non-profit organisation Natural Resources Defense Council (NRDC) launched a campaign called Clean by Design in 2009.The statistics regarding the devastating effect of China's estimated 15,000 textile mills makes for scary reading. According to China’s State Environmental Protection Administration, harmful emissions from textile mills have contributed to nearly a third of the country’s rivers being classified as too polluted for any direct human contact. The NRDC also reports that the textile industry ranks third among all industries in China for its 3 billion tons of annual wastewater discharge and second for its chemical oxygen demand (COD) loading, which accounts for nearly 20 percent of total industrial discharge of this contaminant so lethal to fish and aquatic life.

The Clean by Design initiative reached out to Chinese textile mills to improve their efficiency and reduce waste. The group alluded to the financial rewards of more efficient practices and employed heavyweight global retailers who are some of the biggest consumers of Chinese textiles (Target, H&M, Levis and Gap) to leverage pressure. In 2014, 33 mills in Shaoxing, Zhejiang province and Guangzhou, Guangdong province completed the program by observing 200 new regulations.

The results of the program were encouraging. On average, each mill cut its water use by 9 percent, electricity use by 4 percent, and coal use by 6.5 percent. Total fiscal savings were 14.7 million USD, and the most savings by an individual mill was 3.5 million USD. However, Linda Greer (director of NRDC’s health and environment programs) recognises that it faces difficulties in fixing some of the textile industry's core issues when it comes to pollution. A fundamental problem is the use of hazardous chemicals, which remains entrenched in mills' dying practices as they are wary of losing consistency (and thus, demand for their products) if they are to reform. Nevertheless, this has been a step in the right direction and we remain hopeful of a China where environmental degradation has one day been reversed.

SOURCE: The Shanghaiist

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APTMA concerned over free fall of textile exports

All Pakistan Textile Mills Association (Aptma) Chairman S M Tanveer has expressed concerns over the free fall of textile exports in quantity and value terms during March 2015 against March 2014, a statement said on Tuesday. The overall textile and garment exports have declined by 16.23 percent in March, as compared to the previous year, he added. The exports of cotton yarn has declined 29.36 percent in terms of value and 12.99 percent in quantity, followed by cotton cloth 14.45 percent in value and 37.57 percent in quantity terms, bedwear 16.94 percent in value and 15.15 percent in quantity terms, towels 19.03 percent in value and 23.51 percent in quantity terms, garments 5.20 percent in value and 12.57 percent in quantity terms, synthetic 24.87 percent and 32.99 percent in quantity terms and made-ups 13.62 percent in value terms. Knitwear is the only product having registered 28.53 percent growth in quantity terms, but it has also decline by 7.41 percent in value terms.

Tanveer said Aptma has been advocating for the restoration of viability of the textile industry by lowering down its cost of doing business by keeping the rupee at its realistic value. He also demanded uninterrupted energy supply, both electricity and gas to the export-oriented textile industry at regionally competitive rate and encouragement to the industry to take investment initiatives to create exportable surplus. The textile mills are closing down their operations one after another.

Consequently, he said, around 30 percent capacity across the textile value chain has duly been closed. Potential investors are reluctant to undertake investment decisions under the prevailing situation, he added. Furthermore, he said, an unchecked imports and smuggling of textile clothing products are making inroads into the domestic market. The industry is unable to sustain in both domestic, as well as international markets. A recent study by an international consultant has revealed that Pakistan’s textile industry has lost comparative advantage to the regional competitors on account of high cost of energy, finance and wages, technology and raw materials disadvantages, system inefficiencies, opportunity cost of funds withheld by the government and zero investment incentives, he said.

The loss of market share is also due to the special incentives and market access secured by the governments of competing countries, he added. He stressed on the government to take measures to arrest the declining trend of the textile industry exports. Also, he said, the prime minister should constitute a task force of textile associations and chair regular meetings to review exports and investment performance on a monthly basis.

SOURCE: The News

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Textile industry lack skills in Botswana

The Managing Director of Nortex Textile Mukesh Josh said that there is a serious shortfall of appropriate skills by locals in the textile industry.  Mukesh was speaking at the Nortex long service awards held recently at the Nortex premises in Francistown. He said that as much as they subscribed to the value of citizen empowerment, lack of skills especially in specialised areas continued to be a problem among Batswana.

He said  they had since been engaging the expatriates in those areas but ever since the amendment of labour law on locallisation, it is difficult to have those needed expertise to drive the production. “ Ever since the Ministry of Labour and Home Affairs tightened its screws it is a tussle to get permit for these needed expatriates, we therefore appeal to the government to look into these issues with a view to wave where there is need” he said.

He further said that this law drives away potential investors who wish to invest in the country and a country without investors its economy is doomed.  In response, Minister of Labour and Home Affairs, Edwin Batshu said that the private sector is the engine of growth and the textile industry, such as  Nortex, is one of the alternative sources of economic growth. He said that the government is committed to providing a conducive environment for their growth. Batshu further said that no economy will strive without the expatriates as they always bring the host skills they do not have and irrespective of how fast they want to localise they cannot isolate from the international players in building the economy.

He said that it is good to blend local skills and expatriate skills. However, the law now states that if the skills needed are available locally, permits will not be given to foreigners to do the job. “It is not our intention to frustrate investors in our country, if they think that they are being dealt with harshly my door is always open to receive people,” he said. Furthermore, he explained that the government continues to develop programmes aimed at providing skills to the nation, particularly the youth. He named the Internship, Tirelo Sechaba and the new Graduate Volunteer Scheme as government initiative to facilitate acquisition of skills to make participants employable, or be in a state where they can start their own businesses. He noted that the government remains concerned by the recent global competitiveness index report, which ranks the country badly when it comes to labour market efficiency, employee effectiveness and loyalty. “This is a bad factor for investors confidence and this country is where it is due to the massive contribution of foreign investors like Nortex,” said Batshu. He urged the private sector in Francistown to continue to strive for economic growth by employing Batswana and appreciated the efforts by Nortex to employ Batswana.

SOURCE: The MMEGI Online

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World Bank projects strong growth for Myanmar

Myanmar could continue growing at around 8 per cent, like other countries in their early stages of transition to a market-based economy, according to the World Bank’s East Asia and Pacific Economic Report April 2015. The World Bank projection is based on the assumption of continued growth in gas sector investment and output, and accelerated service sector growth resulting from the gradual liberalization of the telecom and banking sectors.

Public sector spending is expected to increase from 26.5 per cent of GDP in 2013-14 to roughly 28.7 per cent of GDP in 2014-15. Around 35 per cent of this will be public investment going to fill a major infrastructure gap left by many years of under-investment. Foreign Direct Investment in 2014-15 is expected to reach $5 billion, with some estimating more, bringing cumulative stock of FDI to over $50 billion, the World Bank noted. Around a third of FDI is in the gas sector. The World Bank has cautioned that although growth is expected to remain relatively strong over the medium-term on the back of continued structural reforms, downside risks have also increased. If government spending growth continues along current trends, Myanmar may face fiscal sustainability challenges.

Myanmar’s real exchange rate has appreciated since November, which will dampen export competitiveness. There has been significant progress in anchoring exchange rate and inflation expectations. Continued progress in developing institutional capacity for exchange rate management will be important. According to the World Bank report, the poverty rate in 2010 was estimated at between 25.6 and 37.5 per cent, with the lower rate reflecting the Government’s methodology—which showed a 20 per cent decline since 2005—and the higher rate reflecting a more broad based methodology used by the World Bank. Poverty in Myanmar is largely a rural phenomenon, with at least 70 per cent of the country’s poor living in rural areas.

One of Myanmar’s challenges will be to narrow down the widening trade and current account deficits triggered by rapidly rising demand coupled with removal of trade and foreign exchange restrictions. The current account deficit in 2014-15 is expected to reach 5.3 per cent of GDP. Another challenge will be external public debt which is still within sustainability thresholds. The report warned that overall public debt sustainability is vulnerable to lower real GDP growth and fiscal slippages. This risk is heightened by recent international commodity price developments. Although the effects of these have not yet transmitted through to Myanmar, there is a major risk that natural gas prices will follow the same trend as oil prices. A sustained downturn would adversely impact government revenues and export earnings, and may negatively affect future investments in the oil and gas sectors.

SOURCE: Fibre2fashion

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Russian business slams WTO, seeks government protection

An influential Russian business bloc has asked the government for protectionist measures to support domestic producers, according to media reports in the country. The International Chamber of Commerce (ICC), Russia, in a letter to the presidential administration has proposed that terms of Russia’s WTO membership be reviewed. The most active of the ICC is the Russian Union of Entrepreneurs of Textile and Light Industry (Soyuzlegprom), uniting major textile and footwear companies of Russia. The union has sought protective duties on imports of clothes and footwear. "It takes the World Trade Organisation several years to achieve the abolishment of high duties, and this is enough to strengthen positions of local producers. We must take the same road instead of following all instructions that nobody but us abides by," the president of Soyuzlegprom, Andrei Razbrodin, said.

SOURCE: Fibre2fashion

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CPEC to boost business activities in Central Asia

Turning Pakistan into an economic hub, the $46 billion ‘China-Pakistan Economic Corridor’ (CPEC) would spur huge trade, business and economic activities in the southwest and central Asian regions, said Qaisar Shamas Guccha, Central Chairman of the Pakistan Yarn Merchants Association. The wide scope of the corridor could be reflected in hydroelectric, coal, solar and wind power projects on the one hand and Khunjerab-Gwadar road project and railway line, Karachi-Lahore Motorway, Metro Transit System, Iran gas pipeline and LNG terminal on the other.

He said the importance of economic corridor could be judged from the fact that out of 51 agreements, work on eight had already begun and foundation stones of five had been laid. “Economic corridor projects will also shed positive light on the country’s industrial, trade and business activities, making the economy stronger,” he said. “In addition to this, China is also relocating its industrial units to Pakistan to save import expenses. The Chinese are establishing textile units in Pakistan to manufacture textile goods and export them from Pakistan.” Leaders of the association also demanded that the government effectively control the mismanagement in energy distribution in the country so that productivity could be maximised.

SOURCE: The Tribune

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