|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1324.03 |
USD/Ton |
2.53% |
|
VSF |
2031.81 |
USD/Ton |
1.06% |
|
ASF |
2451.90 |
USD/Ton |
0% |
|
Polyester POY |
1430.28 |
USD/Ton |
1.16% |
|
Nylon FDY |
3073.05 |
USD/Ton |
0% |
|
40D Spandex |
6571.09 |
USD/Ton |
0% |
|
Nylon DTY |
1618.25 |
USD/Ton |
1.02% |
|
Viscose Long Filament |
3383.62 |
USD/Ton |
0% |
|
Polyester DTY |
5868.21 |
USD/Ton |
0.14% |
|
Nylon POY |
1667.29 |
USD/Ton |
0.99% |
|
Acrylic Top 3D |
2893.24 |
USD/Ton |
0% |
|
Polyester FDY |
2599.01 |
USD/Ton |
0% |
|
30S Spun Rayon Yarn |
2664.40 |
USD/Ton |
0% |
|
32S Polyester Yarn |
2043.25 |
USD/Ton |
4.17% |
|
45S T/C Yarn |
2991.32 |
USD/Ton |
1.67% |
|
45S Polyester Yarn |
2157.67 |
USD/Ton |
4.76% |
|
T/C Yarn 65/35 32S |
2566.32 |
USD/Ton |
1.29% |
|
40S Rayon Yarn |
2827.86 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2713.44 |
USD/Ton |
1.22% |
|
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 = 0.16346 USD dtd. 26/04/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Textile industry stakeholders in Tamil Nadu have impressed upon the Government the need for setting up a Textile Board in the State and a separate export policy in line with the Foreign Trade Policy of the Centre for the State. These were among the 10-point suggestions put forth by knitwear garment exporters in Tirupur for possible incorporation in the new Textile Policy of Tamil Nadu. Sharing details of a textile stakeholders’ meeting organised by the State Government to discuss issues related to the textile sector ahead of unveiling the new textile policy, B Shanmugasundaram, who represented TEA, said establishment of a Textile Board with government and industry association representatives would strengthen the focus towards development of the textile industry in the State.
A separate export policy in line with the FTP of the Centre would help boost TN’s exports, he said adding “the garment sector in Tirupur contributed to 11 per cent of the State’s export turnover. There is huge potential to double this with friendly-policy interventions”. A Technology Upgradation Fund (TUF) scheme providing 5 per cent interest subsidy/ 10 per cent capital subsidy towards expansion or modernisation as in the Gujarat Textile Policy 2012 or a special package for the textile sector as in other states, capital subsidy for investment in Effluent Treatment Plants (ETPs), power subsidy to reduce the cost of treatment and processing charges and incentives for setting up technical textile units in TN would go a long way in boosting the textile industry in the state. As skill requirement is much needed in the garment sector, training subsidy of Rs. 2,000 per month per trainee has to be provided for a maximum period of three months irrespective of the unit’s capacity, TEA suggests, appealing for strengthening of infrastructure amenities as well.
SOURCE: The Hindu Business Line
Sardar Vallabhbhai Patel International School of Textiles and Management here is working to get its post graduate diploma programmes in apparels, retail management and textiles recognised as equivalent to Master of Business Administration. Director of the institute C. Rameshkumar told The Hindu on Friday that the institute offers three courses – post graduate diploma in apparels, retail management and textiles. Though there were issues related to approval for these courses in 2011-12 and 2012-13, these have been sorted out and the institute has received approval from the All India Council for Technical Education for these programmes. The institute can admit 60 students for each of these two-year courses. “The current total strength is 70 and we plan to increase it to about 150 this year,” he said.
Students who complete the course can become entrepreneurs or join a textile unit. The institute has written to the Union Ministry of Textiles and is trying to get these courses recognised as equivalent to MBA so that the students get more opportunities when they complete the programme. Admission process has started and the response is better this year, he said.
SOURCE: The Hindu
The Bill to amend the Constitution to pave the way for a Goods and Services Tax (GST) was moved in the Lok Sabha on Friday for consideration amid stiff resistance from several opposition parties, including the Congress, which first proposed the indirect tax reform. Finance minister Arun Jaitley said GST would provide a “win-win” for the Centre and states. The tax reform is expected to add 1-2 percentage point to the economic growth rate.
Members of the Congress, led by Sonia Gandhi, along with those of TMC, Left and NCP, staged a walkout after their plea for referring the Constitution amendment Bill to the standing committee was not accepted. AIADMK and BJD also opposed its consideration but did not walk out. Seeking the support of the Congress before its members walked out, Jaitley said, “Nobody has the monopoly in trying to stop the growth of this country. UPA must start supporting legislations which it brought in. This is a kind of contradiction I am not able to understand.”
The bill on GST, considered the biggest tax reform after 1947, was introduced in the Lok Sabha in December last year. 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. While liquor has been completely kept out of the GST, petroleum products like petrol and diesel will be part of the new regime from a date to be decided at a future date by the GST Council, which will have two-third of its members from states.
The consideration of the Bill was also opposed by AIADMK, whose leader and deputy Speaker M Thambidurai contended that it should be scrutinised by the standing committee as his state Tamil Nadu would stand to lose to the tune of Rs 16,000 crore. Jaitley said, “You will not lose even one rupee”. The Opposition members, which alleged that the government was “bull-dozing” and bringing the bill in a “hush hush” manner, wanted more time to study the “new” legislation and meanwhile finish the financial business. The Bill was earlier vetted by the standing committee but the Modi government made some changes to it to give more comfort to states fearing loss of tax freedom, including guaranteed compensation for any revenue loss. After hour-long wrangling over procedures between the ruling and Opposition sides, the Bill was taken up when Speaker Sumitra Mahajan ruled that it is an important legislation on which the finance minister can make introductory comments and a discussion can be taken up at a later date.
SOURCE: The Financial Express
India is planning to establish a US$300 million industrial park specializing in garment and textile material production near the southern Vietnamese economic hub of Ho Chi Minh City, local media quoted a senior leader of the Synthetic and Rayon Textiles Export Promotion Council of India (SRTEPC) as saying earlier this month. "It is the efforts of Indian companies to take the initiative of the Trans-Pacific Partnership [TPP] trade deal which will offer a boost to the local garment and textile industry,” Vinod K. Ladia, chairman of the SRTEPC, said at the Indian Textile Exhibition 2015 (Intexpo) at the Tan Binh Exhibition and Convention Center in Tan Binh District, Ho Chi Minh City.
According to Ladia, the new industrial park will focus on producing products related to textile and fabric materials. It will also accommodate manufacturers making products for large orders for Indian exports to Vietnam in the fields of healthcare, household appliances, and furniture. "These high value-added products cannot be manufactured in Vietnam now. As a result, instead of importing from India with high taxes, now we will open our production bases in Vietnam to reduce costs," Ladia told Nhip Cau Dau Tu (Investment Bridge) newspaper on the occasion of the exhibition that lasted from April 9 to 12.
Although Vietnam is one of the leading countries in exporting garments, it is dependent on other nations – mostly China – for its textile input. The Southeast Asian country imported more than $440 million worth of textile products from India during the financial year ending March 2014, with the main items being polyester viscose and synthetic fabric, polyester wool fabric, and polyester filament yarn. India’s exports of synthetic fiber to Vietnam went up from $36 million in 2009 to $89.09 million last year, an increase of 146 percent. Meanwhile, India has a sufficient supply of materials for the Vietnamese textile industry, Ladia said, adding that the cooperation between India and Vietnam will bring mutual benefits: a new export market for India and an ample material supply for Vietnam.
Vietnam also imports cotton from India. In 2014, cotton imports from India were valued at $266.170 million, accounting for 18.5 per cent of $1.443 billion worth of cotton imports into the Southeast Asian nation. With its large population, India is a potential export market for the Vietnamese garment industry, the SRTEPC chairman added. India is the world’s second largest manufacturer of cotton, silk, cotton cellulose, and fibers with approximately $100 billion in revenue a year, of which $40 billion was from exports, he said. However, the shipment of such high quality textile materials to Vietnam has faced a lot of hurdles due to the complicated payment mechanism and time-consuming shipping process, Ladia complained. But this will change soon with the coming TPP, he added.
Indirect benefit from TPP
"Though India is not participating in the TPP, we have cogent reason to invest more in Vietnam to indirectly benefit from the deal because Vietnam imports fabrics from India," Nhip Cau Dau Tu quoted Srijib Roy, director of the SRTEPC, as saying. Last year, the Indian government approved a credit program for collaborative projects between India’s textile industry and Vietnam’s worth $300 million. "The preferential credit package is for Indian businesses to engage in exporting to and investing in Vietnam’s market, or for Vietnamese businesses to cooperate with Indian firms in the garment and textile field or to plan on importing raw materials from India," said Nguyen The Hung, deputy director of the Ho Chi Minh City branch of the Chamber of Commerce and Industry of Vietnam.
According to Ladia, if the industrial park in the south of Vietnam is established and developed effectively, the SRTEPC will consider another one with the same operational model in the north. "We have sent information to the Vietnam National Textile and Garment Group and the Vietnam Textile and Apparel Association to promote investment in the project," he said. Manoj Kumar, a representative of the Indian Consulate General in Ho Chi Minh City, said that there is a bright prospect for Vietnam-India cooperation as the southern region is very proactive in international economic integration. Vietnam is the main market in India’s “Look East” policy with promising opportunities for garment industries of the two countries, he added.
SOURCE: The Tuoitrenews
India failed to meet the exports target of USD 340 billion set for 2014-15 due to economic slowdown in many countries, Commerce and Industry Minister Nirmala Sitaraman said today. The Minister also said that Finance Minister Arun Jaitely has agreed to review the new 14-page Income Tax return form. "We were unable to meet the exports target of last year due to the slowdown in targetted markets across the world," the minister said, adding these markets are yet to recover from the financial crisis of 2007-08. "We are ready to meet the future demand by improving the capacity building and by taking many initiatives. One or two new markets would provide more demand for our exports," she said.
To a query, Sitaraman conceded the new Trade Policy has been delayed by a year. On new Income Tax return form, which has been put on hold, the minister said Finance Minister Arun Jaitely has agreed to review it, to make it taxpayer-friendly. Tax authorities had made several additions to the form for the assessment year 2015-16 seeking details about foreign travel, foreign assets and income from any source outside the country, details of all bank accounts held in India at any time during the previous year. Sitaraman also reiterated that the Centre is committed to provide special status to Andhra Pradesh.
The Union government has already allocated Rs 6,701.39 crore as grant for the state to meet its revenue deficit, as promised in the AP Re-organisation Act, she said, adding that Centre is making all efforts for comprehensive development of the state before granting special status. Creation of infrastructure is more important to attract the industries before granting the special status and in view of that the government has announced Visakhapatnam and Bhimavaram as centres of excellence for marine food exports, the minister said. She said the Commerce Ministry would take up the infrastructural development to transform the two centres as international marine food exports markets.
Sitaraman also said the Asian Development Bank has submitted its report on Visakhapatnam-Chennai industrial corridor, the work on which would commence soon. As a part of the expansion of rail network in AP, the Railway ministry has allocated funds for 10 new projects in the latest budget, she said. Sitaraman said Shipping ministry has proposed three new ports at Narsapur, Ramayapatnam and Duggarajupatnam.
SOURCE: The Economic Times
Ajit Lakha, who runs a mid-sized garment export business in the textile hub of Ludhiana, prays daily before leaving for work that the rupee will weaken and the euro recover to cut the losses he is taking on his overseas sales. "Perhaps God is not listening," he says. "Only a year ago, I was getting 80 rupees for each euro on garment exports to France. Now, I am getting just 67 or 68 rupees." Thousands of garment, leather, handicraft, and gems and jewellery exporters have watched helplessly as the rupee has appreciated by a quarter against Europe's common currency over the past 12 months. The result has been India's worst export performance since the global slump of 2009, an early setback to Prime Minister Narendra Modi's 'Make in India' campaign to launch an export-led boom as he approaches a year in power.
To counter slack external demand, Modi's government plans higher infrastructure spending in the budget now before parliament, but lacks the fiscal firepower for a China-style stimulus. Short of alternatives, New Delhi is starting to lean on the Reserve Bank of India to do more on the currency side to restore India's international competitiveness. "A case is building for rupee depreciation. Otherwise, all indicators show we are entering another difficult year," a senior trade ministry official told Reuters, adding the government expected help from the central bank besides taking other measures.
Merchandise exports, which make up around 16 per cent of India's $2 trillion economy, shrank for the fourth month in March, with the 21 per cent annual decline the steepest since 2009. In part, that reflects the collapse in oil prices - India's main import is crude but its refiners also export petroleum products. Exports to Europe shrank by near 2 per cent in the 11 months to February, reducing its share of total exports to 18 per cent and cancelling out gains to the Americas and Africa. Sales of textiles - a major export to Europe - for instance, have slowed in the current fiscal year after growing 15 per cent in 2013/14 year to $6.38 billion.
NEED OXYGEN
To be sure, a stronger rupee is not all gloom for Asia's third-biggest economy which imports nearly $450 billion worth of goods a year. But the upshot for Modi is that his goal of doubling shipments to $900 billion in four years now looks very ambitious. "India has become uncompetitive in some markets," said Gaurav Poddar, director at Limtex India, which exports tea to the oil-dependent economies of the Middle East and former Soviet Union. "The rouble has really hit us," said Poddar, referring to the Russian currency's collapse last year.
Trade officials say exporters need a helping hand as they are fast losing competitiveness after the rupee appreciated by 11 percent in real terms against a six-currency basket over the year to March. "Indian exports are in intensive care and immediately need oxygen," said SC Ralhan, president, of the Federation of Indian Exporters Organisation (FIEO). Yet economists say that the RBI already faces a tough task curbing the rupee, as enthusiasm over Modi's business-friendly policies sucks investment dollars into Indian financial markets.
In January and February, the Reserve Bank of India (RBI) bought a net $20 billion in the spot forex market. Any acceleration in dollar-buying intervention would force the RBI to absorb, or 'sterilise,' more of the rupees that it prints lest they leak into the economy and undermine hard-won gains in cooling inflation. "India can choose to join the global currency war by cutting interest rates - but that is not an option we have, given we are still fighting inflation," said Sonal Varma, an economist at Nomura in Mumbai.
SOURCE: The Economic Times
Grasim Industries Ltd, a maker of viscose staple fibre announced on Friday that due to water shortage at its staple fibre plant in Madhya Pradesh would suspend operations. The company has started reducing production of staple fibre at its plant located at Nagda (in Madhya Pradesh) in a phased manner due to water shortage caused by deficient rain last year, the company said in a statement to the BSE. Production at the Nagda plant is likely to be fully suspended by 30 April and would be resumed once water becomes available. Grasim’s Nagda plant can produce 162 kilo tonnes of viscose stable fibre a year.
The company expects its operations at its Chlor Alkali plant in the same location also to be affected due to unavailability of water. But, it plans to continue supply to its customers from its other plants in Gujarat and Karnataka. On Friday, Grasim Industries closed at Rs3,666.15 a share, flat from its previous close of Rs3,639.10.
SOURCE: Yarns&Fibers
Extending losses for the third consecutive day, the Indian rupee shed 21 paise to hit a four-month low of 63.77 against the US dollar in early trade today at the Interbank Foreign Exchange due to continued demand for the American currency from importers. Forex dealers said sustained demand for the dollar from importers mainly weighed on the local currency but a higher opening in the domestic equity market and easing dollar against other currencies overseas, limited the rupee’s losses. The rupee had lost 24 paise to close at a fresh three-and-half month low of 63.56 against the US dollar in the previous session on Friday. Meanwhile, the benchmark BSE Sensex rose by 129.34 points, or 0.47 per cent, at 27,567.28 in early trade.
SOURCE: The Financial Express
The rupee is expected to weaken further this week, while bond yields are biased towards being elevated. The weakness might be due to the month-end dollar demand from importers while bond yields could get impacted due to poor monsoon outlook for this year. The rupee weakened to an over three-month low against the dollar on Friday, as foreign funds pulled out from domestic debt after the trade deficit widened and the government said overseas investors would have to pay a retrospective tax. Currency dealers say the next resistance for the rupee might be at 63.80 and if that breaks, the rupee can even touch 64 this week. "The overall bias for the rupee is towards weakness. Sometime this year, the rupee might even breach 65 to a dollar due to outflows from domestic markets on account of US Fed's rate increases," said a currency dealer. On Friday, the rupee ended at 63.56, compared with the previous close of 63.32 to a dollar. On January 6, the rupee had ended at 63.57. Badrish Kulhalli, head of fixed income at HDFC Life, said, "The yield on the 10-year bond might trade in the range of 7.72 to 7.80 per cent this week. Sentiments are still a downbeat." The yield on the 10-year benchmark bond ended at 7.79 per cent on Friday, compared with the previous close of 7.76 per cent.
SOURCE: The Business Standard
The actual tax liability of foreign investors towards MAT may be much lower than Rs 603 crore, estimated by the revenue department, as many of them would get the benefit of double taxation avoidance pacts. "The number of FIIs and the amount involved would come down substantially as many of them would be eligible for treaty benefits," a Finance Ministry source told PTI. Following a ruling by the AAR, the revenue department has sent notices to 68 foreign institutional investors (FIIs) for payment of dues totalling Rs 602.83 crore towards Minimum Alternate Tax (MAT). These, according to sources, also include FIIs which are eligible for benefits under the Double Taxation Avoidance Agreements (DTAA) which many countries have with India. They say FPIs based in jurisdictions like Cayman Islands, Hong Kong and British Virgin Islands will have to pay 20 per cent MAT as there is no DTAA.
"FIIs from Cayman Island, Hong Kong and BVI may however continue to be hit by the MAT provisions as India does not have a tax treaty with these countries. The actual tax liability may be much lower in view of treaty relief that is now sought to be provided," PwC Partner (Tax and Regulatory Services) Suresh Swamy said. The actual tax liability may be much lower as Mauritius, Singapore and the Netherlands based Foreign Portfolio Investors (FPI) would also be exempted from payment of MAT, industry experts said. Further, those FPIs based out of other countries, including Australia, UK and the US, which have DTAA with India would also be eligible for treaty benefits once they provide the tax authorities with residency proof. "Domestic tax law applies only to the extent it is beneficial over the Treaty. MAT should therefore not apply to FIIs based in treaty countries," Swamy added.
Seeking to quickly resolve the controversial tax issue facing FPIs, the tax department has directed top officials that all claims coming under the ambit of DTAAs will be settled within a month of being filed. "It has been decided that in all cases of foreign institutional investors (FIIs) seeking treaty benefits under the provisions of respective DTAAs, decision may be taken on such claims within one month from the date such claim is filed," the Central Board of Direct Taxes (CBDT) said.
SOURCE: The Economic Times
The long-drawn India-Iran deal on the Chabahar port could soon take shape through a memorandum of understanding (MoU) between the two nations. Union Shipping Minister Nitin Gadkari is set to visit Iran in the next few days, where he could formalise the deal by signing the inter-governmental MoU. India is also likely to engage in discussion with the US to secure a waiver of sanctions on activities at Chabahar. Talks about the proposed speed and manner in which the US government plans to free up the sanctions might also be on the cards, so that India does not run the risk of attracting punitive sanctions.
Gadkari's visit comes after Commerce Secretary Rajeev Kher visited Iran earlier this month. Coming in the wake of the potential Iran-P5+1 deal, after which the current financial sanctions on Iran can be partially or completely lifted, the deal assumes strategic significance for the access it provides India to Afghanistan. The P5+1 group refers to the five permanent members of the United Nations Security Council, along with Germany.
Once the deal is signed, the Indian government will invest $85 million for the purchase of equipment needed to set up and run a container terminal and a multi-purpose berth at the Chabahar port. Further, an annual expenditure of $22.95 million will be incurred by the government for operating the port. The Union government had in October 2014 approved formation of joint venture by the Kandla Port Trust and the Jawaharlal Nehru Port Trust for the development of Chabahar port.
Iran was India's second-largest supplier of crude oil up until 2006 but it dropped to number seven by the end of 2013-14. Although India has reduced its oil imports from Iran, it has continued to maintain good relations with the West Asian nation, which has been reeling under US and EU sanctions for over three years now. Located on the confluence of the Indian Ocean and the Sea of Oman in southeastern Iran, Chabahar is India's first foreign port project. While the port is outside the Persian Gulf, it is strategically significant, providing access to Afghanistan, Central Asia and beyond. Originally floated in 2003 by the Atal Bihari Vajpayee-led government, the project has been consistently delayed due to various reasons.
Despite issues of viability, India wants to take up the Chabahar port as a strategic project, aimed at satisfying the immediate security interests of establishing a sea-land route into Afghanistan. New Delhi has plans to build a road-railroad network from Chabahar to Milak in Iran in order to link it with the India-built 223-km Zaranj-Delaram road in Afghanistan so that aid could be pushed to Kabul and beyond. Chinese President Xi Jinping's two-day visit to Pakistan this week has further highlighted China's influence in infrastructure development growing in the neighbourhood. Pakistan's Gwadar Port - around 70 km east of Chabahar - was developed by the China Harbour Engineering Company Ltd (CHECL), with the Port of Singapore Authority being the minority partner. CHECL had displayed an interest in developing the Chabahar port as well.
SOURCE: The Business Standard
Prime Minister Narendra Modi will make a strong pitch to narrow India’s trade deficit with China — it crossed the $40 billion mark in 2014-15 — during his visit to the country next month. “If there is to be a future for an India-China bilateral trade relationship, then the worrying issue of the trade deficit has to be addressed. We are confident of the PM making a very strong pitch for the whole issue of the deficit,” Commerce Secretary Rajeev Kher told the media on the sidelines of a seminar on India-China economic relations, at the Global Exhibition on Services (GES), on Friday. The GES is jointly organised by the Commerce Ministry and CII.
Widening deficit
India’s trade deficit with China, at $44 billion in the April-February 2014-15 period, is more than a third of the country’s total trade deficit, according to official figures. In the 11-month period, imports from China increased 18.18 per cent to $55.77 billion, while exports declined 18.88 per cent to $11.01 billion. Kher said that the government was working on a three-pronged strategy to narrow the trade gap with China. The first is to identify the areas where India is strong and can contribute to the Chinese economy, and to then seek effective market access from China in these areas. Such areas include pharmaceuticals, IT/ITES, food products and agriculture, and auto components.
“We are identifying obstacles to market access in these areas and are taking it up at the Government-to-Government level, asking China to be more rational and facilitative,” Kher said. He added that India had become more aggressive in its approach and had asked the Government to also be more transparent in its procedures. India is also trying to see how to channelise Chinese investments into India in order to reduce imports from the country, and tap Chinese technology and capacity.
Kher said that China has expressed interest in setting up industrial parks in the country. “It has to be ensured that these fructify on time, because the more investments get delayed, the wider the trade deficit will get,” he said. India also needs to work with China in global forums such as the World Trade Organization and in the ongoing negotiations for a Regional Comprehensive Economic Partnership (RCEP) as the two can have a better say jointly.
SOURCE: The Hindu Business Line
Ireland is hopeful that conclusion of the free trade pact between India and the EU would be mutually beneficial and would provide greater market access to Indian firms in the 28-nation bloc. The issue came up for discussion during the meeting of Commerce and Industry Minister Nirmala Sitharaman and Ireland's Minister for Jobs, Enterprise and Innovation Richard Bruton here. Both ministers discussed the "prospects for the resumption of talks on the EU-India free trade agreement", IDA, Ireland's investment promotion agency, said in a statement.
"The Make in India strategy is extremely ambitious and has the potential to develop India into a manufacturing superpower... I was keen to explore prospects for kickstarting talks with the EU. The conclusion of a free trade agreement would provide an enormous boost for both India and Europe," it said, quoting Bruton.Launched in June 2007, negotiations for the Broad-based Trade and Investment Agreement (BTIA) between India and the 28-member European bloc have witnessed many hurdles as both sides have major differences on crucial issues.
In May 2013, both sides failed to bridge gaps on issues, including data security status for the IT sector. Besides demanding significant duty cuts in automobiles, the EU wants tax reduction in wines, spirits and dairy products, and a strong intellectual property regime. On the other hand, India is asking for granting 'data secure nation' status to it by the EU. The country is among nations not considered data secure by the EU. The ministers also deliberated on ways to boost bilateral trade and investment. "We discussed the synergies between our countries in sectors such as ICT, pharmaceuticals and services and the potential for Indian companies to use Ireland as a base while exporting to Europe," Bruton said. The bilateral trade between the two countries stood at USD 972 million in 2013-14.
SOURCE: The Economic Times
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$ 62.61 per barrel (bbl) on 24.04.2015. This was higher than the price of US$ 60.55 per bbl on previous publishing day of 23.04.2015.
In rupee terms, the price of Indian Basket increased to Rs 3969.47 per bbl on 24.04.2015 as compared to Rs 3826.15 per bbl on 23.04.2015. Rupee closed weaker at Rs 63.40 per US$ on 24.04.2015 as against Rs 63.19 per US$ on 23.04.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on April 24, 2015 (Previous trading day i.e. 23.04.2015) |
Pricing Fortnight for 16.04.2015 (March 28 to April 10, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
62.61 (60.55) |
54.92 |
|
(Rs/bbl |
3969.47 (3826.15) |
3425.91 |
|
|
Exchange Rate |
(Rs/$) |
63.40 (63.19) |
62.38 |
SOURCE: PIB
While expressing deep and serious concerns over the alarming fall of 16 per cent in textiles and clothing exports in the month of March due to depreciating Euro, the central body of APTMA has constituted a task force to deliberate upon the gravity of situation, which is squeezing fast the viability of the industry by and large and impacting its exports negatively. The APTMA task force on “sustainability and way forward” has a strong representation of all sub-sectors including spinning, weaving, processing, home textiles, knitwear, woven garments, towels and synthetic textile.
The central body has given mandate to the central chairman APTMA S M Tanveer along with Gohar Ejaz as co-chairman of the task force to hold deliberations on the factors behind the prevailing alarming situation and suggest the way forward in terms of viability and sustainability of the industry. APTMA spokesman said the task force would formulate a strategy document for the restoration of viability of the textile industry and to undertake investment initiatives for achieving double-digit growth of textile industry.
According to him, the economic managers and concerned ministries would be approached to secure enabling environment for sustainability and growth in domestic as well as the global market place. He said the mandate of the task force encompasses immediate reduction in cost of doing business and to devise a methodology for effective zero rating regime for export-oriented industry. Furthermore, he said, the task force would also deliberate on various incidents of taxes, cess, surcharges and inefficiencies and disadvantages of the system burdening the industry at around five to six per cent of the sales value for spinning, weaving and processing mills, making basic textiles unviable for value added exports. All these three sub-sectors are important part of the value chain, energy dependent, operate 24/7 and thus are more exposed to inefficiencies of the system. He said the government has only two options to save the textile industry. It would either have to reduce the cost of doing business of the export-oriented textile industry or to bring rupee at its realistic value. The first meeting of the task force has been scheduled for 28th April, 2015.
SOURCE: The Nation
Trade authority of Turkey last week extended higher levies on Indonesian yarn of man-made staple fibers, which are to apply for five years following a recent review. The duties, ranging from 25 cents to 40 cents for each kilogram of yarn, have affected more than 20 local firms, including major textile manufacturers PT Indorama and PT Sri Rejeki Isman (Sritex). Besides Indonesia, the expanded tariffs, particularly at higher levels, are likely to impact other producers, including China and India. Indonesia likely to file a complaint with the World Trade Organization (WTO) over Turkey’s antidumping measures on yarn, which have affected a number of Indonesian textile firms, a trade official said. The Indonesian Trade Ministry’s trade defense director, Oke Nurwan, said that a complaint might be lodged by local producers, who rejected accusations that they were exporting their products at a lower price than usual. Oke further said that he would discuss the planned challenge with a local business group.
Indonesia’s shipment of that type of yarn to Turkey was valued at US$82.01 million in 2011, representing 11.7 percent of overall imports. The figure rose to $122.94 million in 2013, but its share fell to 10.2 percent. Instead of seeking a dispute settlement from the WTO, domestic producers could choose to propose price undertaking to the Turkish authorities. Indonesian Textile Association (API) chairman Adi Sudrajat confirmed that local business players might bring the case to the Dispute Settlement Body of the WTO, as the duties had effectively curbed their expansion into the market of more than 75 million people. The duties have prevented them from growing their share of the Turkish market. They’ve lost their competitive edge against their rivals, such as Vietnam and Bangladesh, he said. Ade argued that this condition could not be allowed to continue in the years to come, and that dispute settlement might be the best solution.
In terms of trade defense, Turkey has been one of Indonesia’s most aggressive trading partners, applying a number of remedy measures over the past few years. The measures comprise antidumping tariffs to counter exported products that are sold at prices lower than those in their home market and safeguard duties, which are used to protect a country’s local market whenever there is an irregular surge in imports. As of April, Turkey has imposed antidumping duties on 10 Indonesian products, including polyester synthetic fiber, zippers and air conditioners, and put safeguard tariffs on matches and polyethylene terephtalate. The two countries are assessing the possibility of a preferential trade agreement (PTA) to boost both-way trade by lowering tariffs on selected products. Bilateral trade between the two countries amounts to $2.48 billion in the past year, with Indonesia exporting $1.45 billion worth of goods and commodities and importing $1.03 billion.
SOURCE: The CCF Group
The sliding euro, while dispiriting for garment exporters, has presented a boon for entrepreneurs looking to set up new factories or expand their existing ones by bringing in machinery from Europe. Since capital machinery in power, textile and other sectors is imported from Europe, a weak euro will significantly reduce investors' capital expenditures, said Alamgir Morshed, head of financial markets of Standard Chartered Bangladesh.
In 2014, the country imported more than €2 billion worth of goods from the European Union, of which over €1.069 billion, or 53 percent, was machinery, according to data from the European Commission. The import of machinery will be at least 20 percent cheaper now than in April last year, according to David Hasanat, chairman of Viyellatex Group, a leading garment exporter. And if the political situation improves, entrepreneurs will surely exploit the option, he said.
If a Bangladeshi importer now wants to buy a machine worth €10,000 from the EU, he/she will have to pay Tk 8.40 lakh, down 22.22 percent year-on-year, Bangladesh Bank data shows. The euro has fallen further against the dollar in the international market. One dollar could have bought 0.721 euro on May 2 last year, but in 12 months later it fetched 0.944 euro, meaning that the dollar has appreciated by nearly 31 percent against the euro. The weak euro though reflects growing concerns about the EU economy, which could hurt the overall consumption patterns of European consumers, Morshed said. The depreciating euro will also increase the import costs for the EU, he said.
Around 58 percent of the country's $25 billion garment exports last fiscal year were destined for the EU, which is the single biggest market for the country's apparel sector. The region is also an important market for other export items like jute, fish and leather. A lower disposal income due to weakening economy, coupled with higher import cost, can impact the overall demand for goods like garments, Morshed said. The European retailers will bargain for lower prices or import less due to lower demand, which can slow down the momentum of the country's garment sector, according to the official. However, since Bangladesh predominantly caters to the lower end of the garment market, it might still end up registering growth, as it did during the global economic crisis of 2008, he said. On the brighter side, the weak euro may boost exports from the EU and help its ailing economy, which, in turn, may help Bangladesh's export growth to the region. Bangladesh maintains single currency pegging -- the US dollar -- to determine the exchange rate for the taka.
If the value of the dollar rises or falls, so does the currency pegged to it. Officially, Bangladesh Bank has a floating or market determined exchange rate. However, the BB trades actively in the dollar/taka currency market to impact the effective exchange rates. Most of the country's exports to the EU are denominated in the dollar, so the exporters were not exposed to the EUR/USD exchange rate fluctuations. And, the slide of the euro did not affect local exporters unless they agreed to do the transaction in the euro. Exporters said 10-15 percent of the country's exports to the EU are done in the euro and this segment is badly hurt by the steep exchange rate fall.
“Exporters who accept euro LCs [letters of credit] from their buyers in the EU have been impacted hugely. Many of them will incur big losses,” Hasanat said. Exports to the EU may also be affected as buyers are negotiating to cut the price further due to the weakening euro, said Anwar-ul Alam Chowdhury Parvez, a former president of Bangladesh Garment Manufacturers and Exporters Association. Monzur Hossain, senior research fellow of Bangladesh Institute of Development Studies, has urged the policymakers to follow the exchange rate keenly and take measures accordingly to reduce the risks. One option could be competitive devaluation of the dollar, Hossain said.
SOURCE: The Daily Star
The central body of APTMA expressing concern over the steep fall in textile and clothing exports of 16 percent in the month of March due to depreciating Euro has constituted a task force to deliberate upon the gravity of situation, which is squeezing fast the viability of the industry by and large and impacting its exports negatively. The APTMA task force on “sustainability and way forward” has a strong representation of all sub-sectors including spinning, weaving, processing, home textiles, knitwear, woven garments, towels and synthetic textile.
The central body has given mandate to the central chairman APTMA S M Tanveer along with Gohar Ejaz as co-chairman of the task force to hold deliberations on the factors behind the prevailing alarming situation and suggest the way forward in terms of viability and sustainability of the industry. The task force would formulate a strategy document for the restoration of viability of the textile industry and to undertake investment initiatives for achieving double-digit growth of textile industry. The economic managers and concerned ministries would be approached to secure enabling environment for sustainability and growth in domestic as well as the global market place.
The mandate of the task force includes immediate reduction in cost of doing business and to devise a methodology for effective zero rating regime for export-oriented industry. The task force would also deliberate on various incidents of taxes, cess, surcharges and inefficiencies and disadvantages of the system burdening the industry at around five to six per cent of the sales value for spinning, weaving and processing mills, making basic textiles unviable for value added exports. All these three sub-sectors are important part of the value chain, energy dependent, operate 24/7 and thus are more exposed to inefficiencies of the system. The government has only two options to save the textile industry. It would either have to reduce the cost of doing business of the export-oriented textile industry or to bring rupee at its realistic value. The first meeting of the task force has been scheduled for 28th April, 2015.
SOURCE: Yarns&Fibers
Vietnam textile and garment sector having witnessed good growth in exports in 2014 up by nearly 16 percent reaching $24.5 billion is now aiming at total exports of US$ 28 billion to $28.5 billion in 2015. The textile and garment sector is expected to benefit from several free trade agreements (FTAs) that are likely to take effect. Owing to advantages accruing from the FTAs, the textile industry could double the size of production in ten years. However, textile enterprises need to be well prepared for the same.
Besides the 12-nation Trans-Pacific Partnership (TPP) agreement, which includes the US and Japan, Vietnam has either signed or in the final stages of negotiations for FTA with the EU, South Korea, and the Customs Union of Belarus, Kazakhstan and Russia. Last year, Vietnam’s garment exports showed good growth in major markets, registering a growth of 17 percent in Europe, 12.5 percent in the US, and 9 percent in Japan. Besides remaining No. 2 in the US market, Vietnam rose to No. 2, just behind China, in the Japanese market in 2014.
SOURCE: Yarns&Fibers
Germany is sending out a message to the global textile industry for fair production. The steering committee of the Partnership for Sustainable Textiles, the German Development Ministry and the textile industry have put in place a roadmap for companies and business federations to join the partnership on a broad basis now, according to a statement by the German ministry of economic cooperation and development. The foundation for broad-based support for the Textiles Partnership is an agreed joint action plan. The partners now have made the action plan more specific and precise on a number of important points, particularly with regard to the way in which partnership members have to pursue and achieve binding objectives and how progress can be monitored in a transparent manner.
Development Minister Gerd Müller said, "The Textiles Partnership has made decisive headway. Two years after the collapse of the Rana Plaza textile factory in Bangladesh, we are sending an important signal in Germany for fair textile production. We all have a responsibility for this – and we need to live up to it together! Many of our partners in Europe and internationally have already voiced interest in our Textiles Partnership, which may become a real hallmark of our effort to achieve social and environmental standards for the textile industry." The Textiles Partnership was set up on 16 October 2014 at the initiative of Müller. It was launched by stakeholders from the private sector, civil society, trade unions and the government. Its purpose is to improve living conditions and environmental conditions for workers in producer countries. At present, the Partnership has a membership of about 70 organisations.
SOURCE: Fibre2fashion
