Textile Raw Material Price 2015-05-06
|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1296.08 |
USD/Ton |
0% |
|
VSF |
2036.46 |
USD/Ton |
0.08% |
|
ASF |
2480.20 |
USD/Ton |
1.17% |
|
Polyester POY |
1397.41 |
USD/Ton |
-0.58% |
|
Nylon FDY |
3121.70 |
USD/Ton |
0% |
|
40D Spandex |
6537.60 |
USD/Ton |
0% |
|
Nylon DTY |
2925.58 |
USD/Ton |
0% |
|
Viscose Long Filament |
2675.51 |
USD/Ton |
2.96% |
|
Polyester DTY |
1609.88 |
USD/Ton |
-1.01% |
|
Nylon POY |
3383.21 |
USD/Ton |
0% |
|
Acrylic Top 3D |
5900.18 |
USD/Ton |
0% |
|
Polyester FDY |
1650.74 |
USD/Ton |
-0.49% |
|
30S Spun Rayon Yarn |
2696.76 |
USD/Ton |
0% |
|
32S Polyester Yarn |
2075.69 |
USD/Ton |
0% |
|
45S T/C Yarn |
2990.95 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2860.20 |
USD/Ton |
0% |
|
T/C Yarn 65/35 32S |
2745.79 |
USD/Ton |
0% |
|
40S Rayon Yarn |
2206.44 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2566.01 |
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 = 0.16344 USD dtd. 06/05/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
India’s overall textile and garment exports grew just 1.7% during the April-February period of the last fiscal from a year before, while imports have risen by 14.2% during the period, according to the latest official data. The overall textile and garment exports — which also include those of jute, coir, handicrafts and handloom items — will not just miss the initial official growth target of 15% for 2014-15 but also fall short of the 5% expansion rate expected until recently. According to the provisional data, the overall textile and garment exports touched $35.29 billion during the April-February, compared with $34.72 billion a year before. The government had initially set the export target at $45 billion for 2014-15, compared with the actual exports of $39.3 billion in the previous fiscal.
Exports of fibres crashed over 36% up to February last fiscal, while some other textile items witnessed just a 0.4% rise, thanks primarily to a slowdown in top buyer China, according to industry executives. The communist neighbour usually accounts for over 70% of India’s cotton and 40% of yarn supplies. Consequently, exports of raw cotton, including waste, dropped almost 47% during the April-February period from a year before (See table). The only major growth driver has been the garment segment, with a 13.4% rise between April and February from a year earlier.
“The textile industry needs some incentives to export products to countries such as Bangladesh, Vietnam and Cambodia. These countries import textile items in large volumes for converting them into finished products such as garments for subsequent exports, so we can capture these markets more effectively with some government help,” said DK Nair, the secretary-general of the Confederation of the Indian Textile Industry. He added that currently domestic textile exporters are given a 2% export incentive for outbound shipments only to the US, the EU, Canada and Japan — the markets where the apetite is far more for garments than for textiles.
Imports of textiles, however, went up to $5.57 billion between April and February, compared with $4.87 billion a year before. However, Nair said since most of the items imported are used as inputs for finished goods, the situation isn’t alarming yet. However, despite the recognition of the textile sector’s role in the Make in India concept as well as in jobs creation, with the Ajay Shankar-led panel envisaging annual outbound shipments worth $300 billion by 2024-25, a lack of adequate focus and proper planning in boosting exports have also taken a toll, textile industry executives had said earlier. The government is yet to come up with the textile vision document, which was to be based on the recommendations of the Ajay Shankar panel, even ten months after the report was first submitted with the textile ministry.
Subdued textile export demand has reflected in the industrial production data as well. According to the index of industrial production data, the textile segment grew just 2.4% from the April-February period from a year Higher textile exports augur well for the economy as they accounted for 12.6% of the overall exports last fiscal and the sector employs 35 million people, having become the largest employer after agriculture. The country’s textile and apparel exports have expanded at an average of 11% over 10 years through 2013-14, still lagging the growth rates achieved by some much smaller nations. Even Vietnam could achieve a peak export growth rate of 30% while Bangladesh could achieve a growth rate of 18% during this period.
SOURCE: The Financial Express
Surat's textile markets seem to have become the most lucrative target for gangs of cheats from states like Madhya Pradesh, Rajasthan, Uttar Pradesh and Bihar. Defaults worth over Rs 700 crore have been reported from these markets in the last five months. Industry leaders said that 20 to 25 cases of defaults are being reported every month. The accused rent shops at the textile markets furnishing fake names, identity proofs and residential addresses. Then the hunt begins for gullible targets. For the first three transactions, they make timely payments. They later place huge orders, seek credit of four months and disappear from the market. When the victims lodge police complaints or approach Federation of Surat Textile Traders' Association (FOSTTA), there is not much to expect.
Rajnish Lilha, an embroidery unit owner at Khatodra is among those cheated by two persons identified as Arvind Purohit and Ranjit Singh Rajput from Rajasthan. The duo who was operating from Kuberji Empire in the city defaulted on the payments worth. "I did embroidery job work for the duo worth Rs 32 lakh on saris and dress material. They paid on time during the first three trasanctions. In the last transaction, they promised me to pay after four month. When I went to their shop, I was shocked to find many creditors standing outside. They told me that the duo had disappeared from the market," said Lilha.
Chairman of textile committee of Southern Gujarat Chamber of Commerce and Industry (SGCCI), Devkishan Manghani said, "There are over 165 textile markets housing more than 65,000 textile shops. Each market has been given the printed forms to be filled by those taking shops on rent. It is the responsibility of the textile markets and the shop owners to verify the details." Inspector S M Patel of Salabatpura, where most of the textiles are located, said, "The traders are not maintaining proper records. Secondly, the business is run on faith and trust. Thus, there is no transaction in cash."
SOURCE: The Times of India
The local civic body has ordered a survey of cottage textile dyeing units also known as 'tapela' units in the city's industrial areas of Pandesara, Udhna and Limbayat. The survey follows complaints of untreated water being illegally released in the drainage lines. Sources said that Surat Municipal Corporation (SMC) has sealed 34 such units in Limbayat after the residents in Subhash Nagar locality complained of receiving blue water in their taps on Tuesday. The untreated water got mixed with the underground water pipelines due to leakage and resulted in coloured tap water. The survey is being carried out by the four different wings of hydraulic, drainage, health and town planning departments in areas having 'tapela' dyeing units at residential plots and industrial estates.
Sources said that the residents in areas like Subhashnagar, Madanpura and Mahaprabhunagar in Limbayat zone were getting contaminated water for the last one month. They had taken up the issue with SMC's Limbayat zone officials who found that release of untreated chemical water by the dyeing units into the drainage lines was causing the problem. City engineer Jatin Shah said, "Most of the 'tapela' dyeing units operate illegally and do not follow the pollution norms. We have given the orders to seal all the dyeing units found flouting the norms of proper disposal of untreated water."
SOURCE: The Times of India
The government has denied that there is a move to amend the provisions under the Handlooms (Reservation of Articles for Production) Act, 1985, in order to give advantages to power looms. In a statement has clarified that it had received some requests for review of items reserved for production by handlooms. After a due examination of the matter, the it has decided not to make any change in the Reservation Order issued under the 1985 Act, thereby protecting the interests of handloom weavers. On receipt of the requests, the matter was referred to a committee under the chairmanship of Development Commissioner (Handlooms). The committee was formed with the mandate of looking into all relevant issues on the subject and giving its considered views, without hurting the interests of handloom weavers. The committee met twice this year – once in March and once in April, the statement said. The textiles ministry decided to maintain status quo after examining the views of the committee as well as those of state governments. The government decided to put an end to speculations after some sections of the media reported that the Centre was going to amend the provisions under the Handlooms (Reservation of Articles for Production) Act, 1985, in order to give advantages to power looms.
SOURCE: Fibre2fashion
The trade defict between the United States and India stood at $2 billion in March, according to figures released today. The US Census Bureau and the US Bureau of Economic Analysis, through the Department of Commerce, announced that the goods and services deficit was $51.4 billion in March, up $15.5 billion from February. March exports stood at $187.8 billion, $1.6 billion more than the February exports. Imports in that month were $239.2 billion. The March increase in the goods and services deficit reflected an increase in the goods deficit of $14.9 billion to $70.6 billion and a decrease in the services surplus of $0.6 billion to $19.2 billion, the report said. In the same month the United States' trade deficit with China increased $10.5 billion to $37.8 billion, the data showed. Exports increased $0.4 billion to $9.3 billion and imports increased $10.9 billion to $47.1 billion. The deficit with Japan increased $2.0 billion to $6.3 billion in March.
SOURCE: The Economic Times
Ahead of Prime Minister Narendra Modi's visit to South Korea this month, the Cabinet today approved revising the double tax avoidance pact with Seoul to provide tax stability and facilitate flow of investment and technology between the countries. The Cabinet headed by the Prime Minister gave its approval for revising the Double Taxation Avoidance Convention between India and South Korea, an official release said. The agreement was signed in 1985. "The revised DTAA will provide tax stability to the residents of India and Korea and facilitate mutual economic cooperation as well as stimulate the flow of investment, technology and services between the two countries," it said. The revised pact provides for source-based taxation of capital gains and provisions for making adjustments to profits of associated enterprises on arm's length principle.
It also provides for residence-based taxation of shipping income, provisions for service of permanent establishment, rationalises tax rates in the Articles on Dividends, Interest and Royalties and Fees for Technical Services. "The Agreement further incorporates provisions for effective exchange of information and assistance in collection of taxes between tax authorities and also incorporates limitation of benefits provisions, to ensure that the benefits of the Agreement are availed of by genuine residents of both countries," the release said. On a three-nation tour beginning May 14, Modi will visit China, Mongolia and South Korea. He will visit South Korea on May 18-19. "We look forward to harnessing Korean capabilities and investments in infrastructure, manufacturing, ship building, energy, defence production," the PMO said in a release.
SOURCE: The Economic Times
The constitutional amendment bill for rolling out the long-pending goods and services tax cleared the first hurdle with the legislation receiving Lok Sabha approval on Wednesday. Now, the bill faces a sterner test in the upper House, where the NDA is in a minority, and opposition parties led by the Congress are demanding that it should be sent to the standing committee. Congress lodged its protest by walking out of Lok Sabha even as the bill, first introduced by Pranab Mukherjee in 2011, was passed. The bill was passed by 352 votes to 37. Finance minister Arun Jaitley, who approached the opposition benches and thanked them after the bill was passed, had earlier assured jittery states that the Centre would compensate them for any revenue loss and assured that the new uniform indirect tax rate would be much less than 27% recommended by an expert panel.
The Narendra Modi government has set April 1, 2016 as the latest deadline for implementing GST, which will subsume excise, service tax, state VAT, entry tax, octroi and other state levies. But for that to happen, the constitution amendment bill needs to be cleared by Rajya Sabha and has to be endorsed by state legislatures. Subsequently, the Centre and states will decide on the tax rate and a GST Bill will have to be approved by Parliament. With the BJP and its allies in minority in Rajya Sabha, the bill is expected to face some stiff opposition as the Congress is determined to send it to a parliamentary standing committee. With most parties having made their stand clear, AIADMK, which has remained ambivalent on the issue, is key to the bill's passage.
Congress is also likely to rally parties from manufacturing states such as Tamil Nadu and Maharashtra as they have raised concerns of losing revenue. Conversely, BJP is hoping for support of parties from consuming states such as UP and Odisha as they are likely to be gainers from the new tax regime. The government would need at least 122 votes in the 243-member Rajya Sabha as the bill is required to be passed by two-third of the total members present and voting, which cannot be less than the simple majority of the actual strength of the House. Sources said Congress, with its likely supporters including the Left, could muster anywhere between 90 to 100 votes. BJP, which has 47 seats, would be hoping that JD(U), SP and BSP with 37 votes between them will vote in favour of the bill and that it will be able to swing AIADMK, which has 11 seats, to its side.
In Lok Sabha, replying to the debate on the bill before Congress walked out, Jaitley said the proposal to reform indirect taxes was pending for the last 12 years and his predecessor P Chidambaram had also mooted it during UPA rule. Rejecting the opposition demand for referring the bill to the standing committee, he said the panel had already examined various provisions of the new legislation and several of its suggestions had been incorporated. "A bill is not a dancing instrument that it will be jumping from standing committee to standing committee," he said. Commending the bill, he said this was a "very important moment" because the whole process of indirect taxation in India would change once the GST was implemented. With regard to a recommendation of an expert panel for revenue-neutral GST rate of 27%, Jaitley said it was "too high" and would be "much diluted". He said GST would ensure seamless and uniform indirect tax regime besides lowering inflation and promoting growth in the long run as he sought to allay concerns of the states that they would be hurt by its implementation.
SOURCE: The Times of India
India Inc and tax experts are hopeful of implementation of Goods & Services Tax from April 1 next year. However, they are slightly worried over possible developments in the Rajya Sabha, where the Government is in minority. Terming the new taxation as a ‘milestone reform,’ Chandrajit Banerjee, Director-General of industry chamber CII, expressed the hope that the Bill will get Rajya Sabha’s nod in the current session of Parliament. He said the provision of an Integrated Goods and Services Tax (IGST) system, where only the Centre may levy and collect GST on supplies in the course of inter-state trade or commerce, which would then be divided between the Centre and states, will provide much needed clarity and transparency to the indirect tax system.
A Didar Singh of industry chamber FICCI said this extremely important reform measure is needed to bring about efficiency and transparency in the indirect tax system and to enhance competitiveness of industry. “A unified common national market which the GST will help bring in long-term benefits to all — government, industry, traders as well as consumers,” he said. DS Rawat, Secretary-General of Assocham, felt that GST will also push up GDP by 1.5 per cent. Besides, passage of the Bill will send a strong signal to global investors. “There will be lot of vibrancy in the tax which will get the benefit of a common market within the country, which has been missing so far,” he said. Harishanker Subramaniam of EY India said the acid test would be the Bill’s passage in the Rajya Sabha. “Any reference to the Select Committee, as some political parties want, will only defer the passage to the monsoon session, which can delay the April 2016 implementation,” he said, adding that the Finance Minister’s statement that one per cent origin tax will not be cascading, though welcome, needs to be reflected in fine print.
Krupa Venkatesh of Deloitte felt the most heartening aspect from the Lok Sabha debate was the Finance Minister’s acknowledgement that 27 per cent (revenue neutral rate or GST rate) was way too high and merits reconsideration. “The assurance on CST compensation payout would help boost States’ confidence that the shortfall in revenue, if any, would be made good,” she said. Nihal Kothari of Khaitan & Co said GST will change the way people do business. “If properly administered, it will increase GDP rate by 1-1.5 per cent, the tax-GDP ratio by up to 2 per cent and reduce the cost of indigenous goods by up to 10 per cent. Hence, it is a win-win for all stakeholders,” he said.
SOURCE: The Hindu Business Line
Finance Minister Arun Jaitley cleared the air on the GST (Goods and Services Tax) rate. While replying to the debate on the Constitution Amendment Bill, which was subsequently passed by the Lok Sabha, he said the GST rate will be much lower than the speculated 27 per cent. Jaitley said neither the Centre nor the GST Council has given this figure. RNR (Revenue Neutral Rate) is the rate of tax at which States will not have any revenue loss. However, 27 per cent RNR would mean that both goods and services will attract 27 per cent GST. The average GST rate globally is 16.4 per cent.
The rates will be decided by the GST Council itself, he said. When TMC leader Saugata Roy asked for a specific rate, the Minister said that he would not commit as that would lead to speculation. “The 13th Finance Commission had suggested 18 per cent as a possible figure. Therefore, people suggest that these are large figures. “This figure will include the entire kitty of taxation. That is something which goes to our natural advantage. This will have to be worked out,” he said.
The House approved the Bill with over two-thirds majority despite the largest opposition Congress staging a walk out. Now the bigger challenge before the Government is to get it passed in the Rajya Sabha where the Government is in minority. Rules require each House to pass the Bill by the third-thirds majority. If the Bill fails to get Rajya Sabha nod then the Government cannot take it to the joint session and will remain pending. The Government aims to implement GST from April 1, 2016. Seeking to address States’ concerns, the Finance Minister said they will be compensated by the Centre for five years. “Our clear understanding with the States is, in a tapering manner the losses incurred by the States will be fully compensated for five years,” he said.
As per the GST structure, 100 per cent compensation would be provided for the first three years, 75 per cent for fourth year and 50 per cent for the fifth year. AIADMK leader M Thambidurai, questioned what will happen if states lose revenue even after five years and wanted a guarantee in the proposed Act to compensate. To this, Jaitley said GST Council will consider all such issues and the Centre will underwrite the loss. He said concerns of both manufacturing States (such as Maharashtra, Tamil Nadu and Gujarat) and consuming States have been taken into account and states would stand to gain by implementation of GST. The new measure will also benefit mineral-producing states as well, Jaitley said after members from Odisha questioned about the fate of their states.
SOURCE: The Hindi Business Line
Notwithstanding US objections, India on Wednesday went ahead with the signing of an agreement with Iran for the development of the strategically important Chabahar port which will give India sea-land access route to Afghanistan bypassing Pakistan. The pact was signed after comprehensive talks between visiting Road Transport and Highways Minister Nitin Gadkari with the Iranian leadership here. "The MoU (memorandum of understanding) was signed after the talks between the two sides," a source said.
Iranian President Hassan Rouhani, in his meeting with Gadkari, said, "Resumption of Iran-India cooperation in the southeastern Iranian port city of Chabahar would lead to a new chapter in relations of two countries." Noting the importance of North-South Transport Corridor and development of Iranian ports, Rouhani stressed that Iran fully welcomes the Indian investors to make investment in construction of roads, railways and development of Chabahar port and other southern ports in Iran.
Chabahar port is located in Sistan-Balochistan Province on Iran's southeastern coast and is of great strategic utility for India which will get sea-land access route to Afghanistan bypassing Pakistan. The US has been asking India and other countries not to "rush" into doing business with Iran as Washington was yet to work out a deal with Tehran on the latter's contentious nuclear programme. The port will be used to ship crude oil and urea, saving India transportation costs. India intends to lease two berths at Chabahar for 10 years. The port will be developed through a special purpose vehicle which will invest $85.21 million to convert the berths into a container terminal and a multi-purpose cargo terminal.
The agreement was signed by Gadkari and Iran's Minister for Transport and Urban Development Dr Abbas Ahmad Akhoundi. "With the signing of this MoU, Indian and Iranian commercial entities would now be in a position to commence negotiations towards finalisation of a commercial contract under which Indian firms will lease two existing berths at the Port and operationalise them as container and multi-purpose cargo terminals," a Ministry of External Affairs statement said. "The availability of a functional container and multi-purpose cargo terminal at Chabahar Port would provide Afghanistan's garland road network system alternate access to a sea port, significantly enhancing Afghanistan's overall connectivity to regional and global markets, and providing a fillip to the ongoing reconstruction and humanitarian efforts in the country," it said. Touching upon Iran and India's ancient and historical relations, Rouhani, in his meeting with Gadkari, underscored that undoubtedly the level of mutual cooperation could be expanded day by day. Pointing to Iran's transit position for connecting east to west and north to south, he stressed that the Islamic Republic could play a pivotal role in connecting India to Central Asia, the Caucasus and Eastern Europe via railway.
President Rouhani reiterated that Iran is fully ready to lure foreign investors. Noting the importance of North-South Transport Corridor and development of Iranian ports, Rouhani stressed that Iran fully welcomes the Indian investors to make investment in construction of roads, railways and development of Chabahar port and other southern ports in Iran. Referring to the cordial relations between the two countries, Gadkari said New Delhi is fully ready to cooperate with Tehran on development of Chabahar port. Last year in October, India had approved the framework of an inter-governmental Memorandum of Understanding (MoU) for setting up an USD 85.21 million joint venture firm for equipping two fully-constructed berths at Chahbahar port. As per the framework, approved in the Cabinet last year, an Indian joint venture company would lease two fully constructed berths in Chahbahar port's Phase-I project for a period of ten years, which could be renewed by "mutual agreement". The Indian side will transfer ownership of the equipment to be provided through the investment to Iran's port and Maritime Organisation (P&MO) without any payment at the end of the tenth year.
SOURCE: The Business Standard
After tough competition from cotton last year, the manmade yarn and fabric industry is expected to grow at a higher rate of five to seven per cent in 2015-16, on the back of stable crude oil prices. However, it is the domestic market that will see the larger growth, as Indian synthetic yarn and fabric performance has not been one of the best internationally. So, while companies in the segment are not expecting much from exports, the domestic market might bring back some sheen, they say. “While normal growth of five to seven per cent is anticipated, if the economy does well, this could go up to double-digit growth,” said O P Lohia, chairman, Indo Rama Synthetics (India) Ltd.
In 2014-15, demand for most manmade filament & fibre was subdued due to a decline in prices of cotton yarn. Also, says a report, the levy in July 2014 of anti-dumping duty on import of purified terephthalic acid (PTA), a major input, further hit domestic production of polyester filament yarn. Unlike the seasonality for cotton, synthetic textile products can be produced through the year. Also, there is expected to be more consumer demand for woven and non-woven synthetic textiles, and the industry anticipates equal growth in the synthetic yarn and fabric market in both segments, said Sanjay Jain, managing director of TT Ltd and vice-president, Federation of Hosiery Manufacturers Association of India.
Demand recovery for manmade filament, fibre, yarn and fabric in 2015-16 is likely to be backed by an increase in offtake by apparel manufacturers, says a CMIE report. The apparel segment consumes a little more than half of the total synthetic fibre produced by the industry. Manufacturers of home textiles and technical textiles are also expected to increase the usage of synthetic fibres during the year. Also, with crude oil prices expected to remain stable, PTA and mono-ethylene glycol prices are likely to come down, too, leading to a decline in polyester prices by eight to 12 per cent this year. Domestic and international prices of both the polyester raw materials had plunged in the latter half of 2014-15, led by a steep decline in crude oil prices. So, polyester prices had corrected sharply during the period. "This year, however, crude oil prices are expected to remain stable at $60-70 a barrel. Also, market demand for polyester is likely to rise by five to seven per cent," said Jyotiprasad Chiripal, director at Chiripal Group, which has a polyester yarn manufacturing capacity of 200 tonnes a day.
But, exports could play spoilsport this year. “With markets like Brazil, Turkey and Egypt under pressure for several reasons, demand for polyester yarn and fabric will be under pressure this year. Also, under the government's new import/export policy, while there is a push for polyester exports, almost all forms of exemptions have been removed, making polyester exports uncompetitive,” Lohia added.
SOURCE: The Business Standard
It may not be at escape velocity yet, but the European economy is definitely picking up steam, an official forecast showed on Tuesday, as low oil prices, favourable foreign-exchange rates and central bank stimulus added momentum to a modest recovery. The European Commission said it was revising upward its forecast for euro zone economic growth this year to 1.5 per cent, from 1.3 per cent, accelerating from the 0.9 per cent growth posted last year. For 2016, the commission predicted that the euro zone economy, composed of the 19 member nations that share the euro, would grow by 1.9 per cent. "Euro zone G.D.P. is likely to beat both the US and the UK in the first quarter, the first time since 2011," Christian Schulz, an economist with Berenberg Bank in London, said before the commission's new forecasts were announced. "It shows that Europe is becoming normal again." He predicted that the euro zone would show first-quarter expansion of 1.6 percent.
The United States' economy expanded a meager 0.2 percent at an annualized rate in the first three months of the year, while Britain's grew 1.2 percent. But for the full year, Mr. Schulz said, it was probable that the American economy would still grow faster. Valdis Dombrovskis, the European Commission's vice president for the euro and social dialogue, said in a statement announcing the revised spring forecasts that European nations needed to carry out additional structural changes, spur investment and encourage "fiscal responsibility." The commission said domestic demand was driving growth in gross domestic product, while investment was expected to rebound in 2016. The fall in energy prices that began in June, which appears to have ended, has had the effect of a stimulus for households, enabling them to spend more of their income on other goods and services.
The European Central Bank's recent policy of large-scale bond buying, known as quantitative easing, has helped by driving down interest rates, and the weaker euro has benefited exporters. "The euro zone is a large, diversified economy that had been held back by the euro crisis and the E.C.B.'s reluctance to undertake aggressive easing," Mr. Schulz of Berenberg said. "Now that the E.C.B. has started quantitative easing, the euro zone economy is reacting just like the U.S. and U.K. economies responded when their central banks employed Q.E." Mr. Schulz said that with the market on edge over Greece's lengthy bailout talks, the central bank action has also helped "by acting as an insurance policy, helping confidence." That is because the central bank could step in to buy the bonds of some of the bloc's more exposed members if Greece abandoned the euro in messy fashion.
No one is yet ready to declare the European economy out of the woods. Europe formally climbed out of recession about two years ago, but has since oscillated between stagnation and low growth without yet attaining the levels of output it had before the start of the crisis in 2008. Unemployment remains at a punishing 11.3 percent in the euro zone, official data showed last week, and economists say it is probable that the labor market improvement, when it comes, will be slow. The commission forecast that the euro zone jobless rate would still be high, at 10.5 percent, in 2016. The E.C.B. started its bond-buying program after inflation began falling to levels that many economists warned were too low for safety and that were far below its target of slightly less than 2 percent. Inflation turned negative across the bloc late last year, raising fears of deflation, a self-reinforcing cycle of falling prices and poor growth that could have dire effects on banks and borrowers.
The commission said on Tuesday that inflation would "remain close to zero in the first half of 2015," picking up as the year wore on, as "domestic demand strengthens, output gaps narrow, the effects of lower commodity prices fade and the depreciation of the euro triggers higher import prices." For the year, it predicted inflation in the euro zone of just 0.1 percent, accelerating to 1.5 percent in 2016. Mr. Schulz said that some of the most encouraging signs were coming from crisis-battered nations like Spain and Italy, where manufacturing appeared to be bouncing back faster than in many other countries. The two nations have taken tough measures to overhaul their labor markets, and are reaping the benefits now, he said. "The problems in Europe now are limited to Greece, of course, and among the more normal economies, to France, because of a lack of reform there," he said.
SOURCE: The Business Standard
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 66.54 per barrel (bbl) on 06.05.2015. This was higher than the price of US$ 65.03 per bbl on previous publishing day of 05.05.2015.
In rupee terms, the price of Indian Basket increased to Rs 4234.61 per bbl on 06.05.2015 as compared to Rs 4130.71 per bbl on 05.05.2015. Rupee closed weaker at Rs 63.64 per US$ on 06.05.2015 as against Rs 63.52 per US$ on 05.05.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on May 06, 2015 (Previous trading day i.e. 05.05.2015) |
Pricing Fortnight for 01.05.2015 (April 11 to April 28, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
66.54 (65.03) |
60.30 |
|
(Rs/bbl |
4234.61 (4130.71) |
3789.86 |
|
|
Exchange Rate |
(Rs/$) |
63.64 (63.52) |
62.85 |
SOURCE: PIB
Global buyers of Bangladeshi apparel products have recently expressed concern over the outflow of brand items to the local market and sought cooperation from the garment exporters to protect the image of the brands. Buyers raised the issue repeatedly at the Buyers’ Forum meeting in the capital as the products made for international buyers are being sold in the local market with the labels of the noted brands. At a meeting of the Buyers’ Forum on Monday buyers alleged that the image of their brands were being hampered as leakage is taking place from some factories and left-over products are being made available in the local market in Bangladesh, meeting sources said. They also alleged that some of the manufacturers which are not involved with the export business were using fabricated tags in low quality products and selling those in the local market.
According to the sources, the leakage of brand items from the factory and fabricated tags were the prime concern for the buyers and they thought the issues should be resolved to protect the image of the global brands. Responding the call from the buyers, Bangladesh Garment Manufacturers and Exporters Association has recently issued a circular to its members asking for better disposal of the left-overs so that no leakage takes place. To maintain good business relationship with the buyers, it is very important that all factory owners extend support to the buyers to resolve the issue, the BGMEA circular said. ‘We strongly feel that the precautionary measures which we follow to dispose of the left-overs have to be more closely monitored to ensure that no leakage takes place,’ the BGMEA vice president Shahidullah Azim told new Age on Tuesday.
The BGMEA suggested its members that if necessary, they may consult with buyers’ agent for better disposal of the left-overs, he said. At the meeting, Azim called upon the buyers to take back the excess products on payment and arrange destruction of the defective items by burning those after paying for the cost of production. If the buyers take back the left-overs, no leakage of brand products would take place in the local market, he said. The BGMEA leader admitted that some of the brand products were being leaked from the factories and being sold in local market with the tags of renowned global brands. On the other hand, a section of dishonest business people were using fabricated tags of the global brands and marketing low quality products in the local market but BGMEA has nothing to do as they were not members of the association, Azim said.
SOURCE: The Global Textiles
Vietnam, which has so far allowed duty free import of polyester staple fibre (PSF) could charge a 2 per cent import tax following a proposal by the ministry of industry and trade to encourage domestic production, a Vietnamese newspaper has reported. Aiming to rescue domestic fibre manufacturers facing harsh competition from imported fibre, the ministry plans to raise tax on staple fibre, coded 55.01, 55.02, 55.03, 55.04, 55.06 and 55.07, which are currently enjoying a zero tax rate. According to the ministry, Vietnam imports around 150,000 tonnes of polyester fibre every year, while domestic producers do not run at full capacity. One of the leading producers, PetroVietnam Petrochemical and Textile Fiber Joint Stock Company (PVTEX), runs only 50 per cent of its design capacity due to difficulties in selling owing to competition from imported products.
With plunging oil prices, the global price of the PSF has dropped sharply, forcing the PVTEX to lower the price of its fibre from $1,340 per tonne in August 2014 to $970. However, this has not improved its chance against importers. The current price cannot make up for production costs. According to the ministry, it is important to encourage the use of domestic fibre to enhance the competitiveness of Vietnam's garment and textile industry, given that the country has been carrying out negotiations to join the Trans-Pacific Partnership (TPP), which requires a yarn-forward rule of origin for textiles and apparel.
SOURCE: Fibre2fashion
A new official report has highlighted China's mounting economic challenges, including how to boost exports, amid the slow recovery of the global economy and some countries resorting to currency depreciation. The world economy is growing at an anemic pace, and consumption and investment is lackluster in many economies. Global trade growth lacks momentum," the Ministry of Commerce (MOC) said in a report released on Tuesday. China's export competitiveness is facing headwinds on two fronts: high-end products from advanced economies like the United States are opening up new foreign markets; and exports of cheap products from developing countries like India have grown fast over the past five years, noted the report.
Some countries have used currency depreciation to bolster exports and economic growth, resulting in the forced appreciation of RMB, dimming the competitiveness of Chinese products, said the ministry. China's total foreign trade posted a 6-percent decrease in the the first three months of 2015, falling to 5.54 trillion yuan (905.5 billion U.S. dollars), with exports rising 4.9 percent and imports dropping 17.3 percent, official data showed. The figures came after China lowered its annual target for foreign trade growth to around 6 percent for 2015, from the 7.5-percent goal for 2014. Despite the challenges, China's exports still enjoys some favorable conditions including a solid industrial foundation, a good industrial chain, fast expansion of equipment manufacturing and high-tech industries, said the ministry. Without any big negative external factors, China's foreign trade volume is projected to stage a "relatively steady" growth this year, said the MOC.
SOURCE: The Global Textiles
A delegation of representatives from 18 companies from China’s Fujian province met officials of Vietnam’s Binh Duong province this week to learn about the local investment climate and seek business opportunities, Vietnamese media has reported. Vice Chairman of the Binh Duong People’s Committee Tran Thanh Liem said the southern province is one of the top foreign investment destinations in Vietnam with 2,460 projects worth nearly $21 billion. China specifically is running 204 projects with a registered capital of $1.4 billion. Binh Duong is committed to providing the best possible conditions for business activities, he said, adding that it prioritises projects that are environmentally friendly, highly competitive, and use cutting-edge technology.
Leading the Chinese group, Head of the Business News section at the Haixia Metropolis Daily Chen Xiaogang said the delegation included representatives from footwear and apparel firms that want to learn about local investment policies. They hoped to receive more information about tax and land incentives given to investors, he noted. At the working session, Binh Duong agencies introduced the local business environment and central Government incentives, especially those regarding enterprise income tax and import-export tariffs.
SOURCE: Fibre2fashion
Chairman All Pakistan Textile Mills Association (APTMA) S M Tanveer has feared 50% closure of the textile industry in case the government alters the Reduced Rate Regime, fails to release stuck up refunds and ensures liquidity supply from banks to the textile industry immediately. He said the textile industry in Pakistan is facing a crisis like situation due to the highest cost of doing business oozing out of the energy constraints, high cost of finance and labour wages as against the regional competitors.
Chairman APTMA said refund claims worth Rs100 billion of across the board textile industry have been stuck up with the Federal Board of Revenue with no clue as when these would be released. It has choked the textile industry and causing colossal losses due to the constraints beyond its control, he added. Tanveer further said rumors are circulating fast that the government is mulling over imposition of 5% sales tax on all inputs and utilities across the value chain under the Reduced Rate Regime. A rough estimate suggests that it may lead to stuck up of further refunds worth Rs250 billion on major inputs. This figure may even move up further in case minor inputs and utilities are added to this levy.
SOURCE: The Nation
In a move that has irked the textile industry; the Federal Board of Revenue (FBR) has proposed to increase the sales tax on five-export oriented sectors from 2% to 5%. “The government has already held up about Rs240 billion of these sectors. Any increase in sales tax rate will aggravate cash flow problems for the factories,” representatives of the associations said at a press conference here at Pakistan Hosiery Manufacturers Association (PHMA) office. They said that the government is unable to refund the amount of sales tax collected from the export sectors, therefore, it should stop levying sales tax on exports. The current 2% sales tax should be withdrawn and the “No payment no refund regime” be revived because globally there is no tax on export sectors, they added. They said that value-added textile exporters are already burdened due to rising tariff of electricity, gas and other essential raw materials which is leading to high costs of doing business in Pakistan compared to competing countries.
Huge amount of the exporters’ liquidity is blocked in sales tax refund claims amounting to Rs70 billion, customs rebate claims of Rs10 billion and Rs160 billion in other such claims. Despite having the Generalised System of Preferences (GSP) Plus status, Pakistan’s textile exports have gone down by 16.23% in March 2015 compared with the same month of last year. In light of this it is clear that any increase in sales tax would further lead to decline in the exports of Pakistan, which would result in the decline in foreign exchange earnings and inflate the trade deficit. The PHMA added that the FBR should expand the country’s tax net to bring in more taxpayers rather than penalise genuine taxpayers and foreign exchange earners. The “no payment no refund” system was introduced in 2005 in the country, and it continued for more than nine years. Exporters believe that this facility not only generated more revenues but also stopped the incidences of fake refunds and gave huge comfort to the exporters.
SOURCE: The Tribune
Indonesias trade value against Poland shows a positive value in the last five years, with an increase of 9.3 percent each year. Indonesia will open Indonesian Trade Promotion Center (ITPC) in Poland to expand its domestic products market share in the Polish market, where the two countries have potential in terms of trade. Trade Minister Rachmat Gobel after a bilateral meeting with Minister of Economy of Poland Janusz Piechocinski stated that the main target of Indonesia in Poland is to expand its market share for its domestic products to compete with its competitors from the ASEAN countries, whose products already dominate Polands Mariwilska wholesale market center.
Another issue discussed in the meeting was the developments of the 9th WTO Ministerial Conference in Bali, as well as economic partnership through the framework of Indonesia-European Union Comprehensive Economic Partnership Agreement (I-EU CEPA). The minister brought 18 export companies of various sectors, which includes textiles and textile products to enter the Polish market. The business luncheon this year was the biggest in the last five years because some 40 businessmen from Indonesia met with 70 trading partners from Poland. Indonesias one of the main export commodities to Italy in the January-February 2015, t-shirt share 3.8 percent. The trade mission is to achieve the target of a three-fold increase in exports, where for Poland in 2019 the non oil exports are expected to amount to US$ 1.1 billion.
SOURCE: Yarns&Fibers
An intelligent anti-microbial fibre called Amicor promises to protect people from allergens and the diseases caused by these such as asthma. A statement from the Aditya Birla-owned Thai Acrylic Fibre Co. Ltd. said we spend one-third of our lives in our beds which are always infested with millions of microscopic, invisible dust-mites. Preventing the growth of house dust mites in beds and beddings reduces our exposure to these harmful allergens and hence allergy sensitization can be controlled. With allergies like asthma on the rise, the Thai Acrylic Fibre Co. Ltd has stressed on using an intelligent anti-microbial fibre to neutralise the problem.
On World Asthma Day on May 5, Siddhartha Chakrabarti, chief research & technology officer of Thai Acrylic Fibre Co. Ltd. explained how dust-mites in average bed triggers asthma attack over a period of time. “It is extremely important for all of us to sleep on hygienic, dust-mite free mattresses and beds to prevent allergy symptoms,” Chakrabarti said. Asthma is of particular concern in China. Arleen Tian, director of Tianye Jacquard Textiles, the leading knitted fabric manufacturer for mattresses & beddings in China said, “Over 35 million people being affected by asthma in China and the numbers increasing, we must have a hygienic and safe sleep solution for a long-term healthy future ahead of all…”
Specifically in view of the growing health and allergy concerns in China, Tianye Jacquard Textiles has introduced their latest collection of Anti-Dust-Mite, Anti-Allergy, Fresh fabric range made with intelligent fiber Amicor (a Birla group company poduct) which is the only tested and proven dual functionality fibre (both anti-bacterial and anti-fungal) which prevents the growth of house dust mites and keeps allergen level under control. This new knitted fabric collection from Tianye Jacquard with Amicor fibres is anti-dust-mite, anti-allergic, anti-odor and gives a long-lasting fresh feel, the statement said.
SOURCE: Fibre2fashion
