The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 6 MAY, 2015

NATIONAL

INTERNATIONAL

 

Textile Raw Material Price 2015-05-05

Item

Price

Unit

Fluctuation

PSF

1295.92

USD/Ton

0%

VSF

2036.21

USD/Ton

0.08%

ASF

2479.90

USD/Ton

1.17%

Polyester POY

1397.24

USD/Ton

-0.58%

Nylon FDY

3121.32

USD/Ton

0%

40D Spandex

6536.80

USD/Ton

0%

Nylon DTY

2925.22

USD/Ton

0%

Viscose Long Filament

2675.19

USD/Ton

2.96%

Polyester DTY

1609.69

USD/Ton

-1.01%

Nylon POY

3382.79

USD/Ton

0%

Acrylic Top 3D

5899.46

USD/Ton

0%

Polyester FDY

1650.54

USD/Ton

-0.49%

30S Spun Rayon Yarn

2696.43

USD/Ton

0%

32S Polyester Yarn

2075.43

USD/Ton

0%

45S T/C Yarn

2990.59

USD/Ton

0%

45S Polyester Yarn

2859.85

USD/Ton

0%

T/C Yarn 65/35 32S

2745.46

USD/Ton

0%

40S Rayon Yarn

2206.17

USD/Ton

0%

T/R Yarn 65/35 32S

2565.69

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

0.78

USD/Meter

0%

45S T/C Fabric

0.79

USD/Meter

0%

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.16342 USD dtd. 05/05/2015)

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

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Big boost to textile industry as weavers warm up to e-tailer idea

Weavers from different parts of India are warming up to the idea of e-tailers, much in line with PM Narendra Modi's growth and development plan for the textile industry, with many of them using such portals to sell their wares.  While some portals like Jaypore that stocks premium designer wear is also keeping the weaver's line, few like Gaatha, heart2hand are selling products right out of the weaver's yarn. Sensing an opportunity, e-commerce majors like ebay too have stepped into the weaver's market.  "We work with close to 250 weavers and our acquisition team visits them regularly to procure products. We run campaigns on our site like a Banarasi sari campaign which we ran for a couple of months and got huge response from across the world. The best part of this is that weavers can make their products available to any part of the world," said Navin Mistry, head, retail experts, ebay India.  ..

Ebay has a tie-up with the Gujarat and Odisha government, supplying them with the state's handcrafted products and is also in talks with the Ministry of Textiles for similar ventures with other states.  "Indigenously produced fabric has caught the fancy of people and the growing popularity of such textile indicates a huge potential yet to be tapped. While designers too have been attracted to the handloom revolution, we decided to get people these products straight from the weaver's yarn," said Nitin Pamnani, co-founder of Gwalior-based itokri.  The site stocks products from weavers across Rajasthan, Andhra Pradesh, Karnataka and the Kutch area of Gujarat alongside a couple of other states.Working directly with 20 weavers, the site even sells fabrics like khun from Maharashtra.  "Though we sell the products at a margin of 8%-10%, sometimes there's a mark-up of 70% to 80% and even then they are inexpensive compared to similar products premium brands would sell," Pamnani explained.  While in 2012-2013, itokri sold products worth Rs 5 crore, they sold Rs 12 crore in the last fiscal. "Thanks to Modi's make in India campaign, people have started taking weavers seriously," he said.

While weavers' cooperatives have always depended on state emporiums and private distributors, few like Andhra Pradesh State Handloom Weavers Cooperative Society have chosen the smart path by launching their own e-commerce portals.  The sites that dedicate themselves to sell only indigenous textile also make sure that weavers get credit for their work. For instance, Ahmadabad-based Gatha started by three National Institute of Design students has a story to tell with every product they sell.

SOURCE: The Economic Times

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Textile sector gears up for mass training activity

Textile Sector Skill Council (TSC) has begun collating data from the mill sector to understand the industry’s job role training requirement, for submission to the National Skill Development Corporation (NSDC). TSC Chief Executive JV Rao, who was in the city recently, told BusinessLine that with the skill training syllabus (for 56 job roles) in place, training providers could start their activities from next month (the syllabus was prepared by consultants in consultation with 400-odd technical people from 180 mills, Rao said). The Council, in the meantime, is in the process of creating awareness among the mills regarding the need to enrol themselves to become training providers, and thereby avail the benefit of government schemes. Rao held discussions with the Managing Directors of 98 mills in the Western region of Tamil Nadu and apprised them about the enrolment and affiliation process.

On the sidelines of this event, he said that every mill has a training department, but the objective of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), the flagship skill development scheme, is to encourage standardisation in the certification process and create a registry of skills. TSC has developed a protocol for a training development mechanism. “The efforts are aimed at increasing the productivity of the existing workforce and aligning the training and certification to the needs of the industry. But the challenge for the Council at this juncture is in getting the mills to enrol as training providers with specific data projections. The skill training is expected to be kick started across 500 centres in the country on May 25. The pilot launch of activities is to happen in 250 districts,” Rao said. Meanwhile Texpreneurs Forum, which is a body of like-minded textile entrepreneurs, is acting as a facilitator in this drive. The Forum’s Secretary Prabhu Damodharan said that 98 mills in this part of Tamil Nadu had submitted their application to the TSC through the Forum to be training providers in this drive.

The training will include soft skills, personal grooming, behavioural change for cleanliness and good work ethic as part of the curricula, the TSC CEO explained, and said that to ensure that the system does not get exploited biometric authentication has been introduced. “There will be three types of training such as for freshers, multi-skilling and Recognition of Prior Learning (RPL) concept, wherein, a worker’s skill, which was hitherto not recognised, will be assessed for getting monetary award.”

SOURCE: The Hindu Business Line

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Andhra Pradesh government to strike an agreement with online retailers for handloom marketing

The Andhra Pradesh Government is holding discussions with these plugged-in retailers to sell handloom products on their website. This will help in introducing an online platform to the workmanship of the handloom weavers as well as recognition to the ancient tradition, which is one of the prime reasons of the Union Government backing these weavers. Weavers can promote products like Venkatagiri, Mangalagiri, Pedana, Dharmavaram, Uppada and Bandar cotton sarees and dress materials online. Men’s wear includes readymade cotton shirts, lungis, and dhotis. This apart, house furnishing products such as bedsheets, towels, and pillow covers have also good demand in the country and abroad, he said.

The Andhra Pradesh State Handloom Weavers Cooperative Society Ltd., (APCO) will enter into an agreement with the online retailers. Handlooms Minister Kollu Ravindra said that the initiative was an endeavour to empower weavers and give a boost to the sector as well. He commented that the retailers are seeking margin on sales, which may not be beneficial to them. There is a great demand for handloom products with natural dyes in European countries. The online majors are also aware of these facts. But they will keep the talk going and make online sales a reality soon.

SOURCE: Yarns&Fibers

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Textile Sector Skill Council to produce skilled and efficient workers

The Textile Sector Skill Council supported by the Union Government has standardized the training syllabus for 56 jobs in spinning, weaving, knitting and processing. The syllabus has been prepared with inputs from the industry and it will be reviewed every year. According to J.V. Rao is the Chief Executive Officer of the Textile Sector Skill Council though there are several State and Union Government schemes that support skill development in the manufacturing sector and the units have in-house training programmes, the skill council ensures that the worker will be trained to get maximum efficiency in their job. Thus , several textile mills in Coimbatore region have agreed to train workers through the Textile Sector Skill Council with a view to standardize training in the textile units.

The CEO of the skill council said that they are now requesting all the textile research associations to enhance the skill training capabilities. The 56 jobs cover 80 per cent of the workers in the industry. Most of them have undergone training on an ad-hoc basis. But, the initiative needs to be standardized. Workers also need training in soft skills, safety and health issues. The proposal is to have approved agencies to train the trainers and they will in turn train the employees. The council’s immediate focus in on textile units in Tamil Nadu and Madhya Pradesh as the number of spinning units is high in these States. The textile industry is transforming with units investing huge amounts in automation. The focus now is on skills, knowledge and performance. The Centre provides Rs. 2 crore annually for the two years and Rs. 1 crore to the council for the third year. The industry contributes Rs. 20 lakh a year for two years and Rs. 10 lakh in the third year. Prabhu Damodaran, secretary of Texpreneurs Forum, added that new recruits constitute almost 30 per cent of the workforce in the spinning sector.

The CEO of the skill council comments that the objective is to involve the private sector to develop the skills of workers. Each worker who undergoes training will have to go through biometric registration and if a worker is already trained at a unit and moves to another one, there will be recognition for prior learning. The units can have in-house trainers or employ trainers from outside. Each unit that is willing to take part in this project will have to be affiliated with the council. The trained workers will get a certificate and the units can avail of assistance under different schemes of the Union Government.

SOURCE: Yarns&Fibers

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Demands flow from textile sector to mentor on road

Leaders of man-made fabric (MMF) sector in Surat on Monday submitted a slew of suggestions to leading trade and management consultant Jagat Shah, who has begun a road journey to 27 cities across India to encourage nearly 6,000 MSMEs and budding entrepreneurs to join the Make in India' drive. Starting his mentor-on-road business yatra , along with his family, on May 3 in Ahmedabad, Shah will crisscross 18 states, covering 9,400 km in 65 days and return here on July 7. After completion of this journey, Shah will submit a report to Prime Minister Narendra Modi on the challenges faced by rural enterprises, MSMEs and startups.

In a meeting on Monday, textile stakeholders demanded development of Surat airport for facilitating the growth of textile and the diamond sectors and other allied sectors, tax exemption on the garments priced upto Rs 450, extending small loans without collateral etc. Jagat Shah told TOI, "Surat is country's largest MMF hub but lacks railway and airport infrastructure. I am going to suggest to the Prime Minister in my report to privatize Surat airport. This will allow more airline companies to start operation from Surat and benefit the textile and diamond sectors."

SOURCE: The Times of India

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Constrained growth exhibited by India in the apparel and textile sector

India misses the clothing cut in consequence of inadequate incentives, excessive emphasis on cotton fibre and handlooms by the government, flip-flop in raw material policy, faulty duty structure in the man-made fibre segment where imports of certain raw materials (like PTA) are taxed higher than those of finished products and inflexible labour laws. An analysis of export trends of key nations shows that while the average annual growth rate of Chinese textile and clothing (T&C) exports slowed to 6.1% since 2012 (it was as high as 20.1% in 2011), India has managed to perform only a tad better, with an average expansion rate of 8.2% in the last three years. With China gradually shifting from labour-intensive industries (like garments) to capital-intensive ones due to soaring wage costs, India is unlikely to capitalize on that opportunity if it fails to address the structural issues plaguing the sector at the earliest.

Vietnam, however, clocked an impressive 15.8% growth rate in its T&C exports since 2012. Even Bangladesh, despite facing an international backlash for poor labour standards following a number of tragedies at its garments units that claimed hundreds of lives in recent years and resulted in some global retailers cutting down on their garment orders, managed to perform decently with a 7.8% growth rate since 2012. India has failed to take advantage of a slowdown in China’s textile and garment exports as also persisting global concerns about violations of labour norms in Bangladesh in recent years, while tiny Vietnam seems to have emerged as the largest beneficiary, reports Banikinkar Pattanayak in New Delhi.

A vision document, aimed at raising the country’s textile and clothing exports, including handicrafts, to $300 billion by 2024-25 from the current $41 billion, is still waiting to be taken up by the Cabinet, even 10 months after the Ajay Shankar panel had submitted it. The withdrawal of certain export incentives in the recently-announced foreign trade policy 2015-20 is going to make it even more difficult for domestic exporters.

SOURCE: Yarns&Fibers

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Export orders down 35 pct

Even as India’s merchandise exports have contracted in value terms since December 2014, a survey by the apex exporter body has clearly indicated that shipments would decline in volume terms as well in the coming months, reports Arun S in New Delhi. Up to 75% of the 410 exporting companies from across sectors that took part in the Federation of Indian Export Organisations (FIEO) study showed orders from importers in hand in April 2015 was less than that in the same month a year earlier. The decline was in the range of 18-80%, or around 35% on average. The survey, submitted last week to the commerce ministry, also showed that only 17% of respondents saw a rise in their order booking position in April from a year ago, while over 8% said there was no significant change in the position.“Normally, exporting firms do not retrench skilled workers even if there is a temporary fall in order bookings. But if the trend continues for the next six months, it will lead to shedding of the workforce,” FIEO president SC Ralhan said.

The factors impacting Indian exports include rupee appreciation against the euro and yen as well as weakening of demand in Latin America, West Asia, Russia, CIS, parts of Africa (South Africa and Nigeria) as well as Indonesia and Malaysia (due to a fall in oil /commodity /metal prices), according to Ajay Sahai, director general and CEO at FIEO. With Europe being a traditional market for Indian exports (accounting for over a fifth of India’s total exports), exporters have sought a “euro-specific package” from the government to tide over the crisis. Exports in March had shrunk by 21.06%, a 67-month low, mainly due to a 60% fall in petroleum exports (which comprise nearly a fifth of the total exports) and weak demand overseas. Barring textiles, most major items including engineering goods, gems and jewellery, chemicals and pharmaceuticals contracted in March.

SOURCE: The Financial Express

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Assocham cautions government against signing FTA with China

Time is not yet ripe for India to go ahead and sign a Free Trade Agreement (FTA) with China even though such an arrangement with world's second largest economy is a key issue of economic cooperation in order to face Chinese competitiveness in the international markets, an Assocham study has noted. While the potential of Sino-Indian economic cooperation is huge and the opportunity cost of non-cooperation is substantial, "at this juncture, a free-trade agreement with China would bring gains skewed in favour of China and will reinforce the existing trade asymmetries between the two countries", the Assocham Paper on 'Should India sign a Free Trade Agreement with China?', pointed out. It said China's substantial edge in the manufacturing sector is in a large measure rooted in its better and extensive infrastructure (a non traded input), labour laws, productivity and an import tariff regime conducive for efficient manufacturing.

"Given the different tariff rates and structural features of the economy between India and China, the benefit of FTA would not be equally shared. India will face some challenges in reducing and eliminating tariffs over a short time horizon. India China FTA cannot afford accelerated elimination of tariffs. It has to be gradual with reduction in tariffs in a phased manner covering commonly agreed, selected, and manufactures, services and agricultural products. Negotiations should take into account interests, sensitivities and specific differences between the two economies. The ultimate goal should be an FTA with a free flow of goods, services, investment, labour, and capital," it said.

Commenting on the findings, Assocham spokesman said, "In view of the comparative advantage China enjoys in manufacturing any form of trade agreement between the two has to tread cautiously. India's opening up of the trade sector has to be carefully calibrated to balance the interests of domestic manufacturing over the medium term." The opening up of the India's trade sector will have to be complemented with greater openings for India's commercial services market so that overall bilateral trade and services balance with China is sustainable notwithstanding large trade deficit. This will also make trade negotiations smooth and easy and will not be viewed as a negative sum game where one partner loses and the other gains, he said.

Under an FTA or PTA gain or loss of the sector depends on its trade structure and initial import tariff rate. Commodities being exported to China facing tariffs will gain. On the contrary, those industries with more imports from China and protected by tariffs may face challenges. An FTA between the PRC and India certainly goes in favour of the PRC and is disadvantageous to India at least in the short run. This is because of the high tariff regime in India and the low tariff regime in the PRC. FTA negotiations pose serious challenges on import tariff issues. The six main categories of goods receiving duty-free status are computers, telecommunications equipment, semiconductors, semiconductor manufacturing equipment, software, and scientific equipment. India's import tariff regime continues to be beset with a large number of anomalies with higher tariff rates for intermediates and lower for the final products leading to negative protection to the latter. This needs to be rectified as early as possible to strengthen India's negotiating stand in any FTA negotiations.

The restructuring of the manufacturing industry will take time and, therefore, in the short run the costs will be borne by Indian industry. Indian exports to China will need to expand beyond primary goods. Resource exports have weak linkages and neither benefit local communities if the process of resource extraction is low labor intensive. One should not overlook the fact that China is a huge market. To tap these markets Indian exporters should: (a) target China's demand for consumer goods which it cannot produce; and (b) plug into China’s supply chain networks, adds the Assocham study.

One needs to keep in view the disparity in size of the economy and production capacity between India and China. India needs to negotiate receiving similar (or higher) concessions that have been offered to other similarly placed partner countries which enjoy preferential treatment in accessing China. The negotiations on preferential market access to China must enable Indian exports to be as competitive as those from China or its other FTA partners. Secondly, rather than agreeing on a general rules of origin criterion, the negotiations should focus on achievable product-specific rules of origin requirements, as the requirements differ from product to product. Thirdly, the vulnerabilities of domestic industries to imports from China also need attention when formulating and negotiating India's negative list.

SOURCE: IRIS

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Customs revenue stagnant at 1.6% of GDP in last 5 years

Despite an increase in the share of the indirect taxes, customs revenue was stagnant at around 1.6% of GDP for five years ended in FY14, the Comptroller and Auditor General (CAG) said in a report on Tuesday. “Customs revenue as a ratio of GDP has been stagnant at an average of 1.6% over the last five years,” according to the report tabled in Parliament. The revenue from customs as a percentage of indirect taxes rose from 34% in FY10 to to 38% in FY12, but it declined to 34% in FY14. Customs revenue as a percentage of gross tax (at 15% in FY14) was also at the lowest level after FY11, it said. “The customs revenue collected has not grown in tandem with the value of imports,” the CAG report said. Exports have recorded a growth of 17%, while imports registered a growth of 2% in FY14. Customs receipts grew at 4% in the same period.

SOURCE: The Financial Express

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Government seeks US data before deciding on trade secrets law

Facing pressure from the US for separate legislation on protecting trade secrets, India has asked Washington to provide data to ascertain the feasibility of such a law before deciding on the matter. The Indian government wants to know the number of cases filed in each US state since an American law on trade secrets was enacted, in order to figure out if it would be practical to have a separate legislation here to check misappropriation of trade secrets. The matter was discussed at a bilateral video conference of the Intellectual Property Rights Working Group last week. "If they have dealt with just 100 cases so far, does it make sense to have a separate legislation without any cases under it? We need to examine it thoroughly," said a government official who is part of the working group. While India doesn't have a separate law regulating the protection of trade secrets, it has a law of contracts that local courts have relied upon to protect confidential information. "We will exchange our papers on the legal regime to better understand each other's laws," the official said. India wants to see the type of cases under the American law and whether India's legal system could deal with those. In the US, the Uniform Trade Secrets Act is a state law enacted by 47 of its 50 states so far - New York, North Carolina and Massachusetts are the states that haven't adopted it.

The US also expanded the jurisdiction of federal courts over cases related to misappropriation of trade secrets by enacting the Theft of Trade Secrets Clarification Act in 2013. "Only 47 states in the US have adopted the model Act. We need to see why the rest three states have not adopted it yet," said the official. "It will be unfair to bind ourselves at this stage."  A report released by the US government's chief trade negotiator last week raised concern over the difficulty in obtaining remedies and damages for trade secret violations in India, citing what it said lax laws. An American lobby of technology giants, including Microsoft and Intel, has also in the past pitched for strengthening of trade secret laws in India to encourage investments in research and development. The lobby demanded criminal sanction to discourage theft of data and trade secrets, especially as India grows in IT and innovation. It argued that unlike patent rights, which eventually expire, trade secrets can be protected for an unlimited duration. US Trade Representative Michael Froman raised the issue of trade secrets with his Indian counterpart, Nirmala Sitharaman, at a bilateral trade and investment dialogue in last November.

The US is the sixth largest investor in India for the last 14 years, bringing in close to $13 billion since April 2000. In 2013-14, US companies invested close to $1.1 billion. Prime Minister Narendra Modi had in April said about the need for aligning Indian IPR regime with "international standards". In a recent interview to ET, Commerce Minister Sitharaman clarified that all that the PM had said was that "while India was compliant with global standards, it must remain so". She said India would continue to engage with the US while safeguarding its interests. The draft IPR policy report by a think tank set up by the government had listed out the need to enact laws "to fill gaps in the protective regime of IPRs such as Utility Models and Trade Secrets". The US Trade Representative's report last week pointed out that although Indian law does provide for some remedies, including injunctive relief, in practice damages can be very difficult to obtain.

SOURCE: The Economic Times

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Russia's Tomsk region seeks investments from India

Seeking investments into the Tomsk region, a business delegation from Russia today expressed interest to participate in the development of smart cities in India.  During a business-to-business meeting with Gujarat-based companies here, both the sides deliberated upon ways to increase investments.  The Russian delegation of around 10 companies of Tomsk region was led by Ildar Batkaev, Advisor, Trade Representation of Russia in India and Aleksander Beliaev, Director, Tomsk Chamber of Commerce.  Batkaev expressed hope to see more business between India and Russia, he told reporters here.  "Looking at the growth of Gujarat in manufacturing sector, there is huge possibility that Russian firms invest here in future.  "Likewise, Russia too offers huge potential for Gujarat-based medium and small firms, which can expand their operations by collaborating with Russian firms," Batkaev said.

He added that Russian firms can play a major role in various government initiated projects, such as development of 100 smart cities.  "There is a need to increase bilateral trade between India and Russia. We are confident that the new government at the Centre will play a crucial role in it.  "Russian firms are keen to participate in the project of 100 smart cities. We can help these cities to be more energy efficient," Batkaev added.  Smart cities will have self-sustainable habitats with minimal pollution levels, maximum recycling, optimised energy supplies and efficient public transportation.

On the occasion, Cadila Pharmaceuticals's Senior Vice President Bhaswat Chakraborty expressed concerns over low-paced trade between the countries.  "Bilateral trade between the two countries is still far below potential. Major reason behind the sluggish growth is lack of knowledge about business potential and lack of understanding between private firms of both the countries," Chakraborty said.  According to a report, Russia's Tomsk region is known for its pharmaceuticals and chemical industries.  The bilateral trade between the countries stood at USD 6.01 billion in 2013-14. India has received only USD 1 billion during April 2000 and February 2015 from that nation. Russia's Tomsk region seeks investments from India

SOURCE: The Economic Times

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Investments on agenda in Narendra Modi’s South Korea, China & Mongolia visits

Prime Minister Narendra Modi’s forthcoming visit to China starting May 14, 2015, will come in handy for India to discuss with Beijing the issue of India’s huge trade deficit and ways to enhance co-operation and coordination in different fields. Modi will visit Xian, Beijing and Shanghai. He will hold meetings with the Chinese leadership and will participate in cultural and business events. Modi will also attend an event organised by the Indian community in China. Modi’s visit is followed by a visit of Chinese president Xi Jinping in September to India. His engagement in Mongolia on May 17 marks the first visit by an Indian prime minister to the region. He will then visit South Korea during May 18-19 to hold bilateral discussions with President Park Geun-hye and meet important business leaders in Seoul. During his visit to Seoul, Modi will be hoping to attract investments of $10 billion for the infrastructure projects here. In Beijing, Modi would discuss ways to raise presence of domestic products, including automobiles and pharmaceuticals, in China. India’s trade deficit with China climbed to a whopping $37.8 billion last year whereas trade stood at $65.85 billion in 2013-14.

SOURCE: The Financial Express

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Government hopeful of breaking opposition unity on GST bill

The Biju Janata Dal (BJD) on Tuesday joined the Trinamool Congress in dropping its demand that the constitutional amendment Bill for a goods and services tax (GST) be referred to a parliamentary standing committee on finance. This could pave the way for the Bill to overcome the Rajya Sabha hurdle and be passed in the current session of Parliament. The Lok Sabha resumed discussion on the Bill on Tuesday, with the Speaker rejecting the demand that it be referred to a parliamentary standing committee. Only the All India Anna Dravida Munnetra Kazhagham (AIADMK) opposed the Bill, saying as a manufacturing state, Tamil Nadu would lose revenue from the new tax structure. The Congress, the Left parties and the BJD said they supported the Bill, but wanted it to be referred to a standing committee. They argued the Bill introduced by Finance Minister Arun Jaitley had seen several modifications compared to that studied earlier by a parliamentary standing committee. Later, however, the BJD dropped its demand.

The Lower House is likely to conclude its discussion on the Bill on Wednesday, and it is expected it will be passed by the requisite two-thirds majority of at least half the strength of the House. The National Democratic Alliance (NDA), along with the Trinamool Congress and the BJD, will be able to muster a two-thirds majority in the House. Parliamentary Affairs Minister M Venkaiah Naidu on Tuesday held a meeting with floor leaders of NDA allies to ensure all treasury bench MPs are present at the time of voting on the Bill in the Lok Sabha. The Congress could stage a walkout at the time of voting to protest the government “bypassing the parliamentary standing committee”, party leaders said.

Subsequently, the Bill will be sent to the Rajya Sabha, where the NDA is in minority. Prospects of the Bill being passed in the Upper House without it being sent to a select committee will brighten if the Trinamool Congress (12 MPs) and the BJD (seven MPs) continue to support the government. The government is also trying to persuade the Janata parivar parties (30 MPs), Bahujan Samaj Party (10 MPs), 'independent' and nominated members to support it on 'procedural issues' related to the key economic reform legislation. The Congress (68 MPs), the Nationalist Congress Party (6 MPs), left parties (11 MPs) and Tamil Nadu parties (AIADMK 11 and DMK 4 MPs) are likely to maintain in the Upper House that the Bill be sent to a House select committee. The decision on whether a bill be referred to a parliamentary committee is settled by a majority of votes of those present in the House. The government also has the option of agreeing to a time bound select committee, which the House can direct to give its report before the Rajya Sabha session ends on May 13.

Today, Jaitley argued that the GST Bill, if sent to a parliamentary panel, would deny the benefits to the states by another financial year as the deadline of April 1, 2016 will be "missed". At least half the state legislatures need to pass a constitutional amendment after the two Houses of Parliament pass it. This is likely to happen during the monsoon sessions of state legislatures. Once the constitutional amendment is passed, the government plans to introduce the GST Act during the winter session. Jaitley said a "broad consensus" already existed between the Centre and states on the Bill. He said Trinamool ruled Bengal and BJD ruled Odisha will be the biggest beneficiaries once the GST is implemented. Congress MP Adhir Ranjan Chowdhury reminded Jaitley that as the opposition leader he had termed the UPA's GST bill as "tax terrorism".

SOURCE: The Business Standard

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Global crude oil price of Indian Basket was US$ 65.03 per bbl on 05.05.2015 

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$ 65.03 per barrel (bbl) on 05.05.2015. This was higher than the price of US$ 63.61 per bbl on previous publishing day of 30.04.2015.

In rupee terms, the price of Indian Basket increased to Rs 4130.71 per bbl on 05.05.2015 as compared to Rs 4044.32 per bbl on 30.04.2015. Rupee closed stronger at Rs 63.52 per US$ on 05.05.2015 as against Rs 63.58 per US$ on 30.04.2015. The table below gives details in this regard:

Particulars

Unit

Price on May 05,2015(Previous trading day i.e. 30.04.2015)

Pricing Fortnight for 01.05.2015

(April 11 to April 28, 2015)

Crude Oil (Indian Basket)

($/bbl)

65.03              (63.61)

60.30

(Rs/bbl

4130.71          (4044.32)

3789.86

Exchange Rate

(Rs/$)

63.52              (63.58)

62.85

 

SOURCE: PIB

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Vietnam Will Be the Next Textile and Garment Hotspot

Vietnam’s textile industry has been witnessing a steady growth over the recent years and pushing the country into one of the top textile exporters in the world. Now the textile and garment industry in Vietnam is one of the largest economic sectors in the country, consisting 4,000 enterprises with a turnover of US$20 billion a year, accounting for 15% of. Vietnamese textile and garment products have been exported to 180 countries and territories in the world, according to the Vietnam Textile and Apparel Association. In 2013, Vietnam joined China, India, Turkey and Bangladesh to become the world’s top 5 textile export countries with total textile and garment export value surpassing $22 billion. The export growth continued in 2014 with nearly 16% increase reaching $24.5 billion. Now, Vietnam’s textile and garment industry is aiming at total exports of $28.5 billion in 2015, according to the Vietnam Textile and Apparel Association.

Benefited from several free trade agreements (FTAs), such as the 12-nation Trans-Pacific Partnership (TPP) agreement, ASEAN China Free Trade Area (ACFTA), FTAs with Australia and New Zealand, India, Japan and South Korea, and Trans Pacific Partnership (TPP), which aims to establish a free trade area for the Asia Pacific region. Vietnam’s garment exports achieved impressive growth in major markets last year – registering a growth of 17% in Europe, 12.5% in the US, and 9% in Japan. In value terms, Vietnam’s textile and garment sector is expected to double the size of production in next ten years. While the industry has set a long term export target in the range US$20 billion-US$22 billion for 2020, and $55 billion by 2030. It aims to achieve this leap forward by concentration on a strategy of specialisation and modernisation and an increase in added value. So far U.S. is the largest market for Vietnam’s textile and garment exports, and Vietnam is the second largest textile and garment exporter for the US market behind China. The EU is the second-largest importer of Vietnam’s textile and garment exports, and the Vietnam Textile and Garment Association (VITAS) is optimistic that a pending FTA with the European Union will be a boost for Vietnam’s industry. Other major importers include Japan, South Korea and Russia.

SOURCE: The Business2Community

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US trade data points to Q1 contraction

A surge in imports lifted the US trade deficit in March to its highest level in nearly 6-1/2 years, suggesting the economy contracted in the first quarter. Growth, however, is regaining momentum as other data on Tuesday showed activity in the services sector, which accounts for more than two-thirds of the economy, accelerated to a five-month high in April. "It looks like we are going to have negative GDP (gross domestic product) for the first quarter, just based on trade, but we expect a robust rebound in the second quarter. A lot of the headwinds we saw in the first quarter have unwound," said Jacob Oubina, senior US economist at RBC Capital Markets in New York. The commerce department said the trade deficit jumped 43.1 per cent to $51.4 billion in March, the largest since October 2008. The per cent rise was the biggest since December 1996. The surge came as imports snapped back after being held down by a now-settled labour dispute at key West Coast ports. Economists had forecast the trade deficit rising to only $41.2 billion. When adjusted for inflation, the gap widened to $67.2 billion in March, the largest in eight years, from $51.2 billion in February. US stocks and Treasury debt prices were trading lower. The dollar fell against a basket of currencies. March's trade gap was far larger than the $45.2 billion deficit the government assumed in its snapshot of first-quarter gross domestic product last week.

In that report, the government estimated trade sliced off 1.25 per centage points from GDP, helping to pull down growth to a 0.2 per cent annual pace. The economy expanded at a 2.2 per cent rate in the fourth quarter. Economists said growth could be lowered by at least six-tenths of a percentage point when the government publishes its second GDP estimate later this month. The West Coast ports labour dispute, a strong dollar, deep spending cuts by energy companies reeling from lower oil prices, and bad weather hampered growth in the first quarter. But some of that drag on growth is fading. In a separate report, the Institute for Supply Management said its services sector index rose to 57.8 last month, the highest since November, from 56.5 in March. A reading above 50 indicates expansion in the vast services sector. "There is little reason to believe that the potential contraction in first-quarter GDP is the start of a serious downturn in the U.S. economy," said Paul Ashworth, chief US economist at Capital Economics in Toronto.

Companies reported an increase in new orders and order backlogs. Export orders, however, contracted sharply, reflecting the dollar's impact. The greenback has gained about 12 per cent against the currencies of the United States' main trading partners since last June, making American goods and services less competitive on the international market. The trade report showed imports jumping 7.7 per cent in March, the largest increase on record. Some of the imported goods likely ended up as inventories, which in the first quarter recorded their biggest increase since the third quarter of 2010. That inventory overhang could spell bad news for second-quarter GDP. Imports of capital and consumer goods were the highest on record in March, while imports of industrial supplies and materials slumped to an all-time low. Imports of petroleum products hit a record low, highlighting lower crude oil prices and increased energy production in the United States, which has reduced its dependence on foreign oil. The average import price for crude oil was $46.47 a barrel in March, the lowest in six years.

Exports increased 0.9 per cent in March. Petroleum exports were the lowest since February 2011. Exports to the European Union rose 8.6 per cent, with those to Germany reaching their highest level since October 2008. The United States sold the fewest amount of goods and services to Brazil since April 2010. Exports to Canada and Mexico, the main US trading partners, were up in March. Exports to China increased 13.6 percent, while imports from that country jumped 31.6 per cent. That left the politically sensitive US-China trade deficit at $31.2 billion, up 38.6 per cent from February. The US trade deficit with Japan was the largest in two years.

SOURCE: The Business Standard

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Pay more for Bangladeshi garments

The German consumers should change their attitude of paying low prices for garment items from Bangladesh, said Thomas Prinz, the newly appointed German ambassador to the country.  “It is also necessary to influence discussions at home in Germany,” he said at a reception hosted by the Bangladesh German Chamber of Commerce and Industry (BGCCI) yesterday to welcome him.  “We are asking Bangladeshi companies to invest in safety and security standards, in fire doors and sprinklers. We are pressing the government to increase minimum wages and to allow trade unions. But what have our consumers and purchasers done?” He said the prices for garment products in Europe are decreasing. “Why can we still buy a T-shirt for 3 euros in Berlin or a pair of trousers for 9 euros?

The retailers have founded “powerful” organisations like Accord and Alliance to dictate the standards in global garment trade. “Where are the Accords and Alliances to stop that?”  Prinz, who arrived two months ago, said he will focus on economic possibilities and development cooperation between the two countries during his time in Bangladesh.  Trade between the two countries has developed exceedingly well in recent years, and now stands at 4.5 billion euros, according to the diplomat. While the bilateral trade volume increased by more than 12 percent last year, it is not balanced at present, he said.

Last year, Bangladesh exported goods worth 3.8 billion euros to Germany and imported goods worth 0.6 billion. Garment products accounted for 92 percent of the exports to Germany, followed by seafood at 2.5 percent and leather and leather goods at 2 percent. “I see huge potential for further development. Not only by scaling up but also by diversification,” he said, while highlighting the potential of the country's shipbuilding and IT sectors. German exports to Bangladesh mainly consist of machinery (46 percent), electro-technical items (16 percent) and chemicals and related products (15 percent), according to Prinz.  “Here as well there is potential for development,” he said, while calling for reduction of tariff and non-tariff barriers. “New services and new German products can increase Bangladesh's productivity. For modernisation of Bangladesh's economy new instruments are needed.”

On investment, Prinz said German investment in Bangladesh has for years remained at a modest level, owing to problems such as bureaucracy, corruption, energy shortage, land scarcity, political turmoil, among others. The ambassador hopes that BGCCI will soon be a part of the main German Chamber of Network, as the trade body has already clocked up over 650 members. BGCCI President Sakhawat Abu Khair and Executive Director Daniel Seidl also spoke. In another programme, Sarazeen Bratzler, managing director of SS Solutions and gold partner of SAP, a business management software, said they will set up a training academy in the country soon to train the youth on information technology. Commerce Minister Tofail Ahmed and Prinz were also present at the SAP programme at the same hotel.

SOURCE: The Global Textiles

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South Korea Signs Free Trade Agreement with Vietnam

Minister of Trade, Industry & Energy Yoon Sang-jik and Vietnamese Industry & Trade Minister Vu Huy Hoang signed the Korea-Vietnam FTA in Hanoi on May 5 in the presence of Vietnamese Prime Minister Nguyễn Tấn Dũng. According to the agreement, Korea and Vietnam will eliminate 94.7 percent and 92.4 percent of their tariffs based on the amounts of imports, respectively. The 10 percent to 15 percent tariffs imposed on auto parts exported from Korea are scheduled to be eliminated in steps, along with a 12 percent tariff on textile goods. In addition, the 25 percent tariff on electric rice cookers and the 20 percent one on mixer and vegetable juice machines will be removed, so small firms in Korea can increase their exports.

In the service sector, segments such as construction, urban planning, landscaping, and machinery lease will be further opened, so that Korean builders can better participate in urbanization projects in Vietnam. The rice market is excluded from the agreement, and no further market opening is scheduled for sensitive primary industry items like onions, squid, green tea, and chili pepper. The tariffs on tropical fruit, ginger, garlic, and pork will be removed within 10 years, and those on natural honey and sweet potato starch within 15 years.

According to the Korea International Trade Association, exports from Korea to Vietnam reached US$6.58 billion in the first quarter of this year, showing an 18.3 percent increase from a year earlier. In that quarter, only China and the United States recorded more exports to Vietnam than Korea did. The increase in the exports is especially eye-catching in that Korea’s overall exports declined 2.9 percent in Q1 this year, when those to the ASEAN region, Japan and China fell 17.6 percent, 22.0 percent and 1.5 percent as well, respectively.

During the same period, Korea’s imports from Vietnam increased 17.3 percent to US$2.03 billion and the bilateral trade volume went up 18.1 percent to US$8.61 billion. The latter broke the US$30 billion mark last year, when the volume added up to US$30.34 billion by showing a 7.4 percent growth. Last year, Korean companies accounted for 14.7 percent of the imported goods market of Vietnam to be second only to Chine, which took up 29.6 percent of it.

SOURCE: The Business Korea

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Philippines eyes free trade agreement with Canada

The Philippines plans to sign free trade agreements with Canada and Mexico, an official of the Trade Department said Tuesday. Trade Undersecretary for international policy Adrian Cristobal Jr. said the Philippines was keen on having free trade agreements with both countries. Cristobal said he recently visited Canada to explore opportunities with the North American country and ahead of President Benigno Aquino III’s visit. “My trip to Canada was in preparation for the President’s visit. It’s a unique opportunity from our point of view since Canada is a huge new market for us, a source of new investments. We have initial studies that an FTA with Canada will be beneficial to the Philippines,” Cristobal said in an interview.

President Aquino is set to fly to the US and Canada on May 6, with trade issues on top of his agenda. Cristobal said Canada was aware that the Philippines, as an emerging market, is a country of focus in “what they call as development program.” “We both have complementary strategic interests. The FTA and the investment protection agreement are initiatives of both [countries],” Cristobal said. Cristobal said the Philippines would also review the investment promotion and mutual protection agreement it signed with Canada in the 1990s.

The Philippines has over 40 investment promotion and mutual protection agreements with different countries. Cristobal said the Philippines also wanted a free trade deal as well as investment promotion and mutual protection agreement with Mexico. “The purpose of having investment promotion and mutual protection agreements is to provide comfort and confidence to investors of both sides,” Cristobal said. The Trade Department is also working out bilateral trade agreements with Chile, the European Union and the European Free Trade Association. Chile proposed to create an FTA with the Philippines. The Trade Department said it expected to sign the agreement by end-2015 or early 2016.

SOURCE: The Manila Standard

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Global air freight grew 5.3 percent in 2015's first three months

Global air freight grew 5.3 percent year-on-year (YOY) in the first quarter of calendar year 2015, International Air Transport Association (IATA) said on Tuesday. "Freight performance in the first quarter of the year is in line with general economic trends and higher than 4.5 percent YoY growth anticipated in our December outlook," said IATA in a statement from Geneva. IATA represents 260 airlines worldwide and account for 84 percent of global air traffic. The growth in March was, however, a modest 1.6 percent YoY rise in volumes when measured in freight tonne kilometers. "The March performance is in contrast to the exceptionally strong 12.2 percent rise in February when growth was skewed by the combined impact of the Lunar New Year and the labour dispute on the US west coast seaports," the statement said.

Carriers in the Middle East grew rapidly while their counterparts in Europe and Latin America contracted during the quarter under review. "The air cargo industry is on a solid but unspectacular growth trend. There is little evidence that would point towards an acceleration as the year goes on," IATA chief executive Tony Tyler said in the statement. Calling on governments to work in partnership and remove trade barriers, the association said growth in air cargo markets had lowered. "World trade and air cargo are growing but only in line with industrial production. Removing trade barriers in line with the WTO (World Trade Organisation) facilitation agreement (FTA) will deliver a much needed boost to the global economy," Tyler added. The World Economic Forum estimates that the WTO TFA could boost the global economy by as much as $1 trillion.

SOURCE: The Big News Network

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Peru Trade Agreement Key to Increased Trade: US

A recent USDA report shows the United States Peru trade agreement has been key in increasing bilateral trade in food and ag products since it went into effect six years ago. South Dakota Corn Growers President Keith Alverson, who serves on the National Corn Growers Board of Directors, says the Peru FTA has paid big dividends for farmers all across the United States. Alverson credits the work of the U.S. Grain Council in being instrumental in helping build those markets abroad which has helped build demand for U.S. corn. During this marketing year Peru has accumulated exports of more than 75 million bushels of U.S. corn compared to 43 million bushels last year at this time.

SOURCE: The Wnax

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