Textile Raw Material Price 2015-05-12
|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1315.93 |
RMB/Ton |
-0.25% |
|
VSF |
2041.74 |
RMB/Ton |
0% |
|
ASF |
2497.00 |
RMB/Ton |
0% |
|
Polyester POY |
1389.50 |
RMB/Ton |
-0.93% |
|
Nylon FDY |
3138.62 |
RMB/Ton |
0% |
|
40D Spandex |
6538.80 |
RMB/Ton |
0% |
|
Nylon DTY |
3383.83 |
RMB/Ton |
0% |
|
Viscose Long Filament |
5925.79 |
RMB/Ton |
0% |
|
Polyester DTY |
1651.05 |
RMB/Ton |
-0.49% |
|
Nylon POY |
2942.46 |
RMB/Ton |
0% |
|
Acrylic Top 3D |
2692.35 |
RMB/Ton |
0% |
|
Polyester FDY |
1602.01 |
RMB/Ton |
-0.51% |
|
30S Spun Rayon Yarn |
2729.95 |
RMB/Ton |
0% |
|
32S Polyester Yarn |
2059.72 |
RMB/Ton |
0% |
|
45S T/C Yarn |
2991.50 |
RMB/Ton |
0% |
|
45S Polyester Yarn |
2206.85 |
RMB/Ton |
0% |
|
T/C Yarn 65/35 32S |
2566.48 |
RMB/Ton |
0% |
|
40S Rayon Yarn |
2893.42 |
RMB/Ton |
0% |
|
T/R Yarn 65/35 32S |
2762.64 |
RMB/Ton |
0% |
|
10S Denim Fabric |
1.14 |
RMB/Meter |
0% |
|
32S Twill Fabric |
1.00 |
RMB/Meter |
0% |
|
40S Combed Poplin |
1.36 |
RMB/Meter |
0% |
|
30S Rayon Fabric |
0.78 |
RMB/Meter |
0% |
|
45S T/C Fabric |
0.79 |
RMB/Meter |
0% |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16347 USD dtd. 12/05/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Indian textile industry has made a major contribution to the national economy in terms of direct and indirect employment generation and net foreign exchange earnings. The sector contributes about 14% to industrial production, 4% to the gross domestic product (GDP), and 27% to the country's foreign exchange inflows. It provides direct employment to over 45 million people. The textiles sector is the second largest provider of employment after agriculture. Thus, the growth and all round development of this industry has a direct bearing on the improvement of India's economy.
Notably, India is the one of the world's second largest producers of textiles and garments. The sector accounts for about 24% of the world’s spindle capacity and 8% of global rotor capacity. Enjoying a comparative advantage in terms of skilled manpower and cost of production over major textile producers, the sector has strong production base of wide range of fibre/ yarn from natural fibres like cotton/ jute, silk and wool to synthetic/ man-made fibres like polyster, viscose, nylon and acrylic. Though, India has fundamental advantages of growth of textile industry over others including availability of wide variety of raw materials, skilled manpower, committed local entrepreneurs and presence of large domestic and export markets, it has missed the third wave of global relocation of textile industry.
Detailed Performance of the Industry:
The industry’s total cloth production has increased by 2.5% during April-February, 2015 as compared to the similar period the previous year, with all the sub-sectors recording growth in production in the range of 0.5% to 5.5%. While, all the sub-segment recorded growth, production in mill sector showed de-growth of 1.5%. On the flip side, strong production growth of 4.3% and 2.9% was witnessed in Hosiery, Cotton Yarn and Total Spun Yarn segments.
Textile Exports:
On the back of weaker rupee and firm overseas demand, textile exports summed up to the worth of $27699.9million in April-December, 2014, up from $26431.54 million in the corresponding period of the previous year, which translated into a growth of 4.80%.
Majority of the segments in the sector registered growth in the range of 7-35%. Readymade garments (RMG), which accounts for nearly half of all textile exports, grew by 21.81% at $395.47million, while made ups grew by 3.27% at $385.32 million. Also, Fabric Waste segment recorded 34.38% growth at $24.82 million.
Textile Imports:
Textile imports summed up to the worth of $4688.87 million in April-December, 2014, up from $4090.64million in the corresponding period of the previous year, which translated into a growth of 14.62%. Most of segments in the sector registered growth in the range of 7-25%. However, much of imports belonged to Readymade Garments which registered growth of 14.95%. Meanwhile, de-growth of 27.62%, 43.11% and 8.59% was witnessed in Fibre, Fibre Waste and Yarn segment respectively.
Strengths:
Tailwinds favoring India: The country has the potential to double itself in size over the next 6-7 years. Among the major competing nations, China is losing its competitive advantage in textile mainly so on account of increasing labor costs, appreciating Yuan, rising power costs, focus on domestic market and also due to conscious strategy to move towards higher value additions industries. Other major exporting countries like Pakistan and Bangladesh are facing geo-political issues. In this scenario all major export markets vis-a-vis US, Europe, Japan, Australia, etc are increasingly looking to shift a large portion of their sourcing pie. The country is also well placed to fill this gap since its entire major costs, be it cotton; yarn, power, wages, dyes and chemicals etc. are globally competitive now. Further, the government also has been supportive for the industry and in order to unlock the complete potential of India, more efforts are needed from the industry as well as the government.
Make in India’ campaign: A ‘Make in India’ campaign covering 25 sectors, including the textile and garment industry, has been unveiled by the Prime Minister in the presence of big names from the corporate world of India and abroad at a ceremony in New Delhi. The ‘Make in India’ scheme also puts in place the logistics and systems to address in a timely manner queries of potential investors. At Present, the Government of India allows 100% foreign direct investment (FDI) under the automatic route in the textile sector, subject to all applicable regulations and laws, which effectively backs the Make in India program for the textile and garment industry. Under the ‘Make in India’ initiative, investment opportunities for foreign companies and entrepreneurs are available across the entire value chain of synthetics, value-added and specialty fabrics, fabric processing set-ups for all kinds of natural and synthetic textiles, technical textiles, garments, and retail brands.
Technology Up-gradation Fund Scheme (TUFS): This scheme, which was launched by the Ministry of Textiles on April 1, 1999 has given major thrust for the sector. SIDBI is the nodal agency for the SSI in the textile and cotton ginning and pressing sector. This Scheme aims at making available funds to the domestic textile industry for technology up-gradation of existing units as well as to set up new units with state-of-the-art technology so that its viability and competitiveness in the domestic as well as international markets may enhance. The Cabinet Committee on Economic Affairs late in August 2014 gave its approval for continuing the TUFS during the 12th Plan period with a major focus on power looms in accordance with the Budget announcement for the financial year 2013-14. The total budget outlay for continuation of the scheme will be about Rs 11,900 crore, out of which Rs 2,400 crore have been allocated for the financial year 2013-14. The scheme is one of the flagship schemes of the Ministry of Textiles and has helped the industry to garner investments of Rs 2430 crore. The scheme is expected to generate 11.5 % annual growth in volume terms in cloth production and 15% in value exports by increasing domestic value addition and technological depth and by enhancing the global competitiveness of textile products to generate an additional employment to 15.81 million workers.
Major Investments into the Sector:
Some of the major investments in the Indian textiles industry are as follows
Concerns of the sector:
Preferential tax regime: The textile sector has not got its due under the new Foreign Trade Policy (FTP) despite it being one of the largest employment providers in country. According to cotton textiles export promotion council or (TEXPROCIL) the industry faces the challenges of high tariffs barriers on account of preferential tariff arrangements. Duty sops of 2% only were granted to the mainstream cotton textile products, while higher rates were given for handlooms, carpets, coir products under the merchandise exports from India scheme (MEIS). Further, man-made textile industry which is highly capital intensive and the only sector capable of attracting FDI has been discriminated against vis-à-vis the cotton industry. The sector which can help the government achieve its ambitious target has not been mentioned in the list of items granted liberal MEI’S benefits under the FTP announced on the first of April.
MMF textiles that contributes Rs 7000 crore as taxes and holds high potential has been given lower reward in the FTP’s new scheme. For Europe and the US, MMF products have been given lower incentives as compared to cotton textiles. Further, the benefits for promoting exports to major emerging markets for MMF textiles such as Latin America, Far East and African countries have been completely stopped in the new FTP without giving the sector’s exporters any scope for adjustment.
Import of second hand machinery: Import of second-hand textile machineries is hitting the local textile industry. Many old machines are imported, into the country, which are more than 10 years old, particularly in the weaving segment. With the global textile industry moving out of the Western world, mills are looking to dump machinery into markets like India.
Rigid and archaic labour laws: The current labour laws have been a major reason behind the inability of the sector to expand and acquire global scale. This is specifically valid for ‘cut and sew’ operations, where the labour involvement is maximum compared to other steps of the manufacturing value chain. Hence, in order to attract large-scale investments, acquire global scale and bring the Indian sector at par with other competing countries, there is an immediate need to review the labour laws to make them investor and labour friendly. Ideally the 44 labour laws, most of which were drafted in the earlier part of the last century, need to be repealed and replaced by one, or at best a few, user‐friendly law(s) suited to the conditions of the 21st century.
Lack of economies of scale: Lack of economies of scale is a major issue in Indian textile and apparel manufacturing sector. Countries like China and Bangladesh have developed large production set‐ups, whereas smaller units, which lack economies of scale and have a low level of technology, dominate the Indian textile sector. Due to lack of large manufacturing capacities Indian manufacturers are unable to cater to large orders and become globally competitive.
Outlook:
The outlook for Indian textile industry remains bleak, however recovery could be around the corner for the sector as domestic demand is expected to pick up this year on account of improving economic sentiments. Further, increasing labour cost in China, which is likely to witness slow down, also offers an opportunity for Indian mills to increase their market share. Besides, geo-political woes in other exporting countries like Pakistan and Bangladesh keep aiding India to achieve its stated goal of $300 billion of exports by 2024-25. Moreover, government’s initiatives to revive manufacturing industry with textile as key segment in its ‘Make in India’ program also adds to the positive for the sector. Notably, Capital investments in the textile sector is witnessing a revival with projects worth hundreds of crore of rupees being announced in the past six months. Several of these projects are scheduled to come online over the next couple of years, adding capacity in the sector when consumer demand is expected to fully revive from the current slump.
SOURCE: Live Mint
India is negotiating seven free trade agreements (FTAs) with countries such as Russia, Australia and Peru that could help it deal with possible loss of share in traditional markets such as the US and the EU that are negotiating mega regional trade pacts. “We need to look at FTAs with countries in South-East Asia, Latin America, CIS and Africa that will provide us with export destinations to compensate for erosion of preferences in traditional markets,” Additional Secretary in Commerce Ministry JS Deepak said at a seminar on changing global economic scenario organised by industry body FICCI.
Two proposed mega regional trading agreements – a Trans-Atlantic Partnership between the EU and the US (TTIP) and a Trans-Pacific Partnership between countries such as the US, Canada, Japan, Malaysia, Australia, Mexico and Vietnam (TPP) – are expected to pose stiff challenges for India which is not part of the two pacts. “Transatlantic partnerships will throw challenges to countries like India and China. We need to make Indian products more competitive and develop more FTAs,” Commerce Secretary Rajeev Kher pointed out.
A successful FTA with the 10-member ASEAN and its six free trade partners under the proposed Regional Comprehensive Economic Partnership (RCEP), could help India be part of the global value chain. “As part of RCEP, India could be part of the global value chain at the lower end to begin with that would give a boost to employment generating manufacturing and exports,” Deepak said. Although RCEP is not as ambitious as the TPP or the TTIP, it accounts for 50 per cent of the world’s population, 30 per cent of world trade and 30 per cent of world’s GDP, he added.
WTO concerns
Kher expressed concern over slow progress in finalising the agenda for the Nairobi ministerial meeting of WTO members in December, which is to include a number of important issues such as food security which is of primary concern to India. “What is happening essentially (at the WTO) is a debate on the agenda for the ministerial meeting. The deadline of July is approaching fast, but we seem to be going nowhere. This is a clear indication that in the multilateral fora, we will continue to show that we are busy without producing much,” Kher said.
SOURCE: The Hindu Business Line
India’s exports have been stagnant for the past few years—they have stayed close to $300 billion per year. During 2013-14, exports were at $314.4 billion, against a target of $325 billion. During 2014-15 also, exports are valued at $310.5 billion, against a target of $340 billion. During the past few months of 2015, there has been a decline in exports. The main reason attributed to this is sluggish external demand. The industry, therefore, has been demanding liberal fiscal incentives to boost exports.
The much-awaited Foreign Trade Policy (FTP) was announced on April 1, 2015. The reason for the delay, apparently, was the prolonged discussions between the ministry of commerce and the ministry of finance with regard to the fiscal incentives suggested by the former. Recently, an official of the Directorate General of Foreign Trade (DGFT) is reported to have said that, with India’s CAD narrowing to 1.6% of GDP in the October-December 2014 quarter, boosting exports with fiscal incentives is not a priority of the government right now.
Both the viewpoints of the industry and the government need to be modified. The private sector has long been emphasising incentives whereas the more important factors are export mindset and infrastructure.
Export mindset
Many Indian exporters used to have the mindset that the government needs to give incentives and attend to all the issues relating to exports, minimising or ignoring their own role. One example is the exports of shrimps. In a recent study which this author supervised, it was found that because of Early Mortality Syndrome (EMS) in major exporting countries such as Thailand and Vietnam, their exports fell and Indian exporters gained. As sea catch has come down, cultured (farmed) shrimp account for more than 70% of India’s exports of frozen shrimp. Because of huge demand, malpractices such as using inbred and spurious seeds and multiple cropping have been reported. In the pursuit of profits, some hatcheries and farmers resort to excessive use of antibiotics and some exporters take a chance of exporting without proper inspection. The expectation of the stakeholders is that the concerned government departments or organisations should ensure quality throughout the supply chain. The efforts made by the stakeholders are not spelt out. Serious efforts are being made at the international level to solve the EMS problem. When enquired about what steps are being taken to meet the competition when the major exporting countries are back in the market, some exporters said that their profitability may go down, but they expect to make comfortable profits even after that. Therefore, exporters and government agencies jointly need to look into such issues.
FTP 2015-2020
The new FTP proposes to adopt a ‘whole-of-government’ approach, i.e. combining initiatives such as Make-in-India, Digital India and Skill India to create an export mission. This is a good approach. Initiatives of this type were undertaken in earlier FTPs, too. But their impact on exports has not been satisfactory, as can be seen from the fact that India’s merchandise exports were only around $300 billion a year for the past few years. Also, as pointed out earlier, exports during 2013-14 at $314.4 billion were below the target of $325 billion, and during 2014-15 they stood at $310.5 billion, below the target of $340 billion. Earlier FTPs used to fix targets for the share of India in world merchandise exports. The current FTP has set a target for raising India’s share in world exports of merchandise and services from 2% in 2013-14 to 3.5% by 2019-20. Since we are doing better in services exports, combining the two gives a better picture, but setting targets separately is more useful. It is commendable that the commerce secretary in his interaction with the industry on the FTP advised them to become competitive not through subsidies and doles but by improving quality, standards and pricing. But the reason, as reported, given by the DGFT official mentioned above that incentives are not the priority since the CAD-GDP ratio is low is not valid. The deficit came down because of lower price of oil, fall in gold imports due to the 10% duty on gold imports and fall in non-oil imports due to slow economic growth. International oil prices fluctuate depending on the ever-changing geopolitical situation. Although India’s services exports have been stable, there was not a big rise, from $145.7 billion in 2012-13 to $151.5 billion in 2013-14. Therefore, a proper way to deal with CAD is through merchandise exports.
SOURCE: The Financial Express
India today expressed concern over slow progress in finalising the agenda for the Nairobi ministerial meeting of WTO members in December to resolve pending issues of Doha round. At the meeting, India wants to bring back issues related to the long-stalled Doha round including agriculture (export subsidies, cotton and fishery subsidies), intellectual property rights, market access and services. "What is happening essentially (in the WTO) is a debate going on for setting an agenda for the ministerial meeting. The date which is...July for setting up an agenda seems to be approaching fast but we seem to be going nowhere. This is a clear indication that in the multi-lateral fora, we will continue to show being busy without producing much," Commerce Secretary Rajeev Kher today said at a FICCI event.
The next Ministerial Conference, which is the highest decision making body of the World Trade Organization, is scheduled from December 15-18 in Nairobi, Kenya. The Doha Round of negotiations launched in 2001 have remained stalled since July 2008 due to differences between the rich and the developing nations mainly over the subsidies given to farmers. Besides this, the members have to discuss issues which were not deliberated upon in the Bali meeting in 2013 and that include matters related with least developed countries. WTO members are unable to finalise the agenda because of differences on the priority order of the issues at the Nairobi Ministerial meeting. "We are at a point where WTO's mechanism has not kept pace with the need of the hour...we are also at a point where the world is going through a transformational phase and therefore it is natural that in this phase it will be very difficult for the WTO to come out with results," he said. However, Kher added that despite the slow pace of negotiations, WTO have not lost its relevance. And it is an institution of hope for large number of countries and that cannot be undermined. "It is important for India that it maintains its position in the WTO," he said. Speaking on the free trade agreements, the Commerce secretary said that Indian industry still have reservations over these pacts. "India has conventional set of FTAs and therefore the new breed of FTAs have to be much more aggressive and much more strategically and technically evolved," he said.
Chief Economic Advisor Arvind Subramanian said increasing exports would also lead to rise in imports and the country should be prepared for that. "Trade reform is going to involve political costs domestically. It's great you are going to export, but you are also going to import a lot. There are going to be dislocation cost, political cost, economic costs. Maybe they will be transitory, hopefully, may be they will be overwhelmed by the benefits of this," Subramanian added.
SOURCE: The Economic Times
Prominent trade and industry bodies have urged Chief Minister Oommen Chandy to take the steps needed to make the Vizhinjam international port project a reality. In a memorandum submitted to the Chief Minister, they said that prolonged delay would jeopardise its prospects and potential. “We request you to take a speedy decision by approving the recommendation of the empowered committee headed by the Chief Secretary,” the memorandum said.
Signatories
Signatories include P Ganesh, President, and Thomas John Muthoot, Chairman, CII, Thiruvananthapuram; BS Basanth Kumar, President, Trivandrum Management Association; VK Mathews, Chairman, Thiruvananthapuram Agenda Task Force; EM Najeeb, President, Confederation of Kerala Tourism Association; SN Raghuchandran Nair, President, Credai; R Rajesh, State Chairman, Builders Association of India; MS Venugopal, General Secretary, Federation of Residents Associations; Ramkumar Rajan, President, Thiruvananthapuram Development Front; and N Appukkuttan Pillai, working president, Janapaksham. Development of Vizhinjam seaport is of great national importance considering the fact that the majority of Indian transshipment is currently being handled by foreign ports of Colombo, Singapore, and Dubai.
Growth booster
The project would help shift these operations to India and thereby generate considerable savings in foreign exchange, the memorandum said. The proposed port has the potential to become the transhipment hub serving the entire Indian coast. The port and allied facilities would significantly contribute to the large-scale growth of industry and economy in Kerala, particularly Thiruvananthapuram and south Kerala, besides generating employment opportunities locally. “We understand that the empowered committee has recommended the current tender and the bid for the project (by Adani Ports and SEZ). Adani Ports, India’s biggest private port operating firm, as the implementing agency will indeed prove to be a success specifically taking into account its expertise in port development and operation,” the memorandum said. It is very much in the interest of the state and its economy that the project gets implemented at the earliest, it added.
SOURCE: The Hindu Business Line
Tajikistan today welcomed India's interest in becoming the fourth partner in Pakistan- Afghanistan-Tajikistan trade and transit agreement, and said Prime Minister Narendra Modi's visit to the landlocked central Asian country will lend "new impetus" to the bilateral ties. The remarks by visiting Tajikistan Foreign Minister Aslov Sirojidin Muhridinovich came days within Modi conveying India's readiness to join the pact to Afghanistan President Ashraf Ghani during his recent visit here. "We are very happy that Ashraf Ghani discussed this with the authorities in India during his visit here, the implementation or signing of this trade agreement... We have the draft of this trade agreement ready but unfortunately we did not sign...However, in all of these levels, the agreements were discussed and considered, and there is some small issue on the trade agreement between Pakistan and Afghanistan. "And, we hope soon they will find the decision and then this trade will work fully for the three countries and we will be very happy if India also in future will be part of this trade agreement, which will make trade cooperation easy among the three countries and India," the visiting minister said.
The Tajikistan leader is currently in India on a five-day visit, his first to the country, after assuming the charge, during which he will hold talks with his Indian counterpart Sushma Swaraj and Defence Minister Manohar Parrikar. "Our diplomatic relations began in 1992 and India and Tajikistan have signed 59 bilateral documents in various areas so far... We believe that Modi's visit to our country will lend new impetus and enhance our bilateral relationships, and will make India's presence in Tajikistan more active," he said while delivering the 17th Sapru House Lecture at the Indian Council of World Affairs here.
The visiting dignitary also said that Tajikistan by virtue of its geography was an "intersection of various geo-political interests" and that the landlocked nation "appreciates India's role" in maintaining security in the central Asian region. "We have bilateral cooperation with India on various security issues. And, India support some of our military and security activities," he said. Muhridinovich said that Tajikistan was interested in "raising our relation in trade and economy to strategic level." "Presence of India in Tajikistan is seen positive, however in terms of investment our co-operation is not as it could be...One of our important economic foreign policies is developing trade with India...We indeed are interested in raising our relation in trade and economy to strategic level like positive co-operation in pharmaceutical industries."
SOURCE: The Economic Times
A Constitution Amendment Bill providing for roll out of the Goods and Services Tax (GST) was on Tuesday referred to a select committee after the Opposition insisted on its legislative scrutiny of the proposed legislation in Rajya Sabha where the government faces the numbers crunch. The 21-member panel will give its report by the last day of the first week of the Monsoon session. Finance Minister Arun Jaitley moved the motion for referring the Bill (The Constitution One Hundred and Twenty-second Amendment Bill, 2014 to the Select Committee. The Committee constitutes of Bhupender Yadav, Chandan Mitra and Ajay Sancheti (of BJP), Madhusudan Mistry, Mani Shankar Aiyar and Bhalchandra Mungekar (of Congress), Naresh Agrawal (SP), K C Tyagi (JD-U), Derek O'Brien (Trinamool Congress), Satish Chandra Misra (BSP), A Navaneethakrishnan (AIADMK), K N Balagopal (CPI-M), Dilip Kumar Tirkey (BJD), C M Ramesh (TDP), Praful Patel (NCP), Kanimozhi (DMK), Anil Desai (Shiv Sena), Naresh Gujral (SAD), Mohammad Fayaz (PDP), D Raja (CPI), Rajeev Chandrasekhar (Independent). The GST Bill was approved by Lok Sabha on Wednesday last after a walkout by Congress. Congress floor managers in the Rajya Sabha had made it clear to the government that it will not be possible for them to back the bill in the Upper House without referring it to a Select Committee. While AIADMK was the only party to have declared its opposition to the economic reform measure, the Congress was adamant that it should be sent to a Select Committee for examining the changes that were brought into it by the NDA dispensation.
SOURCE: The Business Standard
India growth story received an impetus today when rating agency Moody’s said it will grow at a strong pace of 7.5 per cent in 2015-16, the highest among G20 economies, helped by the reforms drive and lower oil prices.“We forecast strong growth in India at 7.5 per cent in 2015-16, the highest among the G20 economies. Lower oil prices will reinforce gradual growth-enhancing reforms to support robust economic activity over the forecast period,” Moody’s Investors Service said, in a report. At a time of shifting global investment flows, India benefits from reduced external imbalances, it said. “We expect a broadly balanced current account, for the first time in 10 years, thanks to lower energy import bill and restrictions in gold imports,” Moody’s said. It said India would be a major beneficiary of softer oil prices among the G20 economies as the country is a major crude importer.
G20 is a group of 20 developing and industrialised economies, which accounts for 85 per cent of the world’s economic output. Furthermore, the ‘Make-in-India’ campaign to boost domestic manufacturing and other reforms measures would bring in higher investment and boost growth, the rating agency said. “If implemented as intended, these reforms and the wide support for business-friendly policies will help achieve higher investment growth than in 2013-14,” Moody’s said. It said the targeting of inflation by the Reserve Bank (RBI) would ensure that higher inflation on food products does not spill onto other goods, services and wages. “We forecast that ongoing moderate inflation will enable better planning of investment. Lower inflation will also raise real incomes, profits and overall GDP growth,” it said. According to the road map, RBI intends to lower retail inflation to 6 per cent by January 2016 and 4 per cent (+/- 2 per cent) thereafter.
SOURCE: The Financial Express
Industrial production grew at a five-month low of 2.1 per cent in March even as both manufacturing activity and capital goods’ offtake improved during the month. The factory output, as measured by the Index of Industrial Production (IIP), had contracted by 0.5 per cent in March 2014. For 2014-15 fiscal, industrial production grew at 2.8 per cent as against contraction of 0.1 per cent in 2013-14, the data released by the Central Statistics Office today showed. Meanwhile, the IIP for February has been revised downwards to 4.86 per cent per cent from the provisional estimate of 5 per cent released last month.
The IIP had grown at 2.77 per cent in January, 3.56 per cent in December and 5.2 per cent in November. The factory output contracted by 2.7 per cent in October. Manufacturing output, which constitutes over 75 per cent of the index, grew by 2.2 per cent in March against a contraction of 1.3 per cent in the same month a year ago. The production of capital goods, a barometer of demand, grew by 7.6 per cent in March as against a contraction of 11.5 per cent in same month of last year. Mining sector grew by 0.9 per cent in March 2015 against 0.5 per cent expansion in the same month last year. Overall, 13 out of 22 industry groups in the manufacturing sector showed positive growth during the month of March.
For whole 2014-15, the manufacturing sector expanded by 2.3 per cent, against a contraction of 0.8 per cent in 2013-14. Capital goods output grew by 6.2 per cent in last fiscal as against a dip of 3.6 per cent in 2013-14. Mining output rose by 1.4 per cent last fiscal against a contraction of 0.6 per cent in 2013-14. Power generation grew by 2 per cent in March against 5.4 per cent in the same month last year. During 2014-15, power generation grew at 8.4 per cent compared to a growth of 6.1 per cent in previous fiscal.
The overall consumer goods output contracted 0.7 per cent in March compared to a dip of 2.2 per cent in the same month last year. The output was also contracted by 3.5 per in the entire 2014-15 fiscal compared to a decline in production by 2.8 per cent in the same month last year. The consumer non-durable production grew by 1.9 per cent in March compared to a growth of 5 per cent in same month last year. During 2014-15, the segment grew by 2.8 per cent compared to a growth of 4.8 per cent in previous fiscal. Consumer durable goods output declined by 4.7 per cent in March compared to a contraction of 11.8 per cent in same month a year ago. During 2014-15, the segment’s output dipped by 12.5 per cent compared to a contraction of 12.3 per cent in previous fiscal. However the basic goods grew by 2.3 per cent in March compared to 4.6 per cent growth in same month last year.
During 2014-15 the output grew by 6.9 per cent compared to 2.1 per cent in previous fiscal. The production of intermediate goods grew by 1.9 per cent in March compared to a growth of 1.3 per cent in same month a year ago. During 2014-15, the output of these goods grew by 1.6 per cent compared to a growth of 3.1 per cent in 2013-14.
SOURCE: The Financial Express
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$ 64.00 per barrel (bbl) on 12.05.2015. This was higher than the price of US$ 63.56 per bbl on previous publishing day of 11.05.2015.
In rupee terms, the price of Indian Basket increased to Rs 4108.80 per bbl on 12.05.2015 as compared to Rs 4058.31 per bbl on 11.05.2015. Rupee closed weaker at Rs 64.20 per US$ on 12.05.2015 as against Rs 63.85 per US$ on 11.05.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on May 12, 2015 (Previous trading day i.e. 11.05.2015) |
Pricing Fortnight for 01.05.2015 (April 11 to April 28, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
64.00 (63.56) |
60.30 |
|
(Rs/bbl |
4108.80 (4058.31) |
3789.86 |
|
|
Exchange Rate |
(Rs/$) |
64.20 (63.85) |
62.85 |
SOURCE: PIB
Thousands of Nigerian textile dyers staged a peaceful protest on Tuesday in northwestern Kano, where they accused Chinese businesspeople of engaging in unfair trading activities, which, they claimed, had brought the local textiles industry to its knees. “Chinese activities have compromised the potential of local dyers in the textile industry,” Bashir Dauda Aliyu Dawakin Kudu, chairman of the Local Dyers Association, said as protesters converged on the palace of Kano’s powerful emir, Muhammadu Sanusi. “We source chemicals from Chinese businessmen, but they have transformed from chief suppliers of chemicals to fulltime involvement in the dye industry,” he added.
Kudu insisted that Chinese business activities had rendered over 32,000 members of the local textile industry jobless. He urged the government – and the emir – to intervene on their behalf. The protest led to traffic gridlock in the commercial city, with dyers displaying placards reading, “Chinese are exploiters,” “Chinese are killing local entrepreneurs” and “Protect us against Chinese invasion.” Kano is reputed to have one of the continent’s largest textile markets. The protest comes one week after four Chinese were detained in Kano for smuggling textile materials worth several billions of naira.
Emir Sanusi, for his part, urged protesters to distance themselves from any action that might trigger xenophobic attacks in Nigeria. “It is unfortunate that we don’t have enabling laws that protect local entrepreneurs. And where we have them, they are not being implemented,” he said. “I’m optimistic the incoming administration will do its best to address the problems confronting local entrepreneurs,” added Sanusi. Muhammadu Buhari, who defeated incumbent President Goodluck Jonathan in March 28 polls, is due to assume office on May 29.
SOURCE: The Videonews
A trade expert says New Zealand should continue to back the Trans-Pacific Partnership deal, despite political opposition in the US. Senate Democrats worried about jobs have blocked Barack Obama from getting the power to fast-track a deal. The failure could put the agreement in jeopardy. New Zealand's Trade Minister Tim Groser says it's not a good sign. He says the American infighting will cause delays, which could prove fatal to the TPP agreement. Mr Groser says the window to complete the deal is now starting to close, as political negotiations need to be completed by July. But Executive Director of the New Zealand International Business Forum, Stephen Jacobi says it's not over yet. He says it's up to the American political system, but an agreement could be made at the end of the year. "So I think it's better just to watch, observe and encourage where we can to get this agreement and particularly the authority in the United State across the line."
SOURCE: The Newstalk ZB
Indonesia is mulling exemptions of import tariffs on raw materials and intermediary goods for trading partners with which it has no free trade agreement (FTA), in a bid to boost its manufacturing industry and attract more investment. The preferential arrangement will be given to both local and foreign companies that operate within the country and source at least 40 percent of their materials for finished goods locally, according to Trade Ministry director general for international trade cooperation Bachrul Chairi. “We hope this will facilitate production here so it will generate big multiplier effects by increasing added value to our manufactured goods and create jobs,” Bachrul told reporters on Tuesday after a meeting at the Office of the Coordinating Economic Minister. The incentives, set to impact manufacturing output both for local use and exports, might be put in place in the third quarter of this year and the government was preparing two government regulations to implement them, he added.
Indonesia has struggled with de-industrialization in the past decade, marked by the low contribution of its manufacturing industry to its gross domestic product (GDP) and stagnation in labor absorption. It has also applied a policy of gradually cutting import duties on a unilateral basis since the 1980s, resulting in lower tariffs compared to other developing countries. Indonesia’s current average import levy is 6.8 percent, much more modest than Brazil (13.7 percent), India (13 percent) and China (9.6 percent). The combination of these factors, in addition to other issues, such as poor infrastructure and insufficient energy supply to feed its industry, has made industrial firms largely reliant on imports of raw materials and intermediary goods, apart from capital goods. Overseas purchases of raw materials and intermediary goods represented 75.45 percent of overall imports in the first quarter of this year with a value of US$27.69 billion, according to the Central Statistics Agency. Imports of capital goods, which support direct investment, account for 17.63 percent with a value of $6.47 billion.
A sizeable amount of these production inputs, such as pharmaceutical, chemical, petrochemical and machinery, also come from non-FTA partners. Indonesia has sealed a number of trade agreements with major partners, either through bilateral plans, such as the Indonesia-Pakistan preferential trade agreement, the Indonesia-Japan Economic Partnership Agreement (IJ-EPA) and regional frameworks, including ASEAN with China, South Korea, Japan, Australia and New Zealand. It is readying itself to begin negotiations with a few partners, such as the EU, and resume talks with several countries, including South Korea and Chile. However, due to the weaknesses of its industrial sector, Indonesia has received less benefit from these agreements as indicated by its lack of integration into the regional as well as global production network.
Investment Coordinating Board (BKPM) chief Franky Sibarani said that as Indonesia was competing with other countries to attract investment, the measure was seen as a way to boost its competitiveness to generate flows of investment. “Basically we want to open bigger spaces for investment by taking into account priority sectors and champion regions,” he said.
SOURCE: The Jakarta Post
Top negotiators from China, South Korea and Japan met in Seoul Tuesday to continue talks on a trilateral free trade agreement. This is the seventh round of talks on the proposed trade deal. The meetings are being led by Chinese Vice Commerce Minister Wang Shouwen, South Korean Assistant Commerce Minister Kim Hak-do, and Japanese Deputy Foreign Minister Yasumasa Nagamine. The two-day meeting focuses on the remaining key issues, including the best ways to achieve market liberalization. The three countries anticipate that a trilateral agreement would bring mutual benefits and prosperity to the region. Wang Shouwen said: "An FTA among three countries will serve as an important vehicle that would strengthen our existing relations not only by expanding trade and investment among us but also by providing a comprehensive and institutional framework in which a wide range of trilateral cooperation would involve. A C-J-K FTA would be regarded as a milestone in regional integration."
SOURCE: The English CCTV
A new online dashboard to help Australian exporters get the best out of the three North Asia free-trade agreements will be announced in today’s federal budget, which also includes funding for a free trade roadshow. The Australian understands that Trade Minister Andrew Robb has secured $25 million to build a world-first free-trade dashboard to allow firms to find and calculate tariffs payable on their exports to Japan, China and South Korea. Mr Robb acknowledged that while governments had been skilled at concluding agreements in the past, they haven’t been so good at promoting their benefits and getting business to take them up.
The trade dashboard will be designed to condense the bewildering slabs of documentation that make up FTAs into a digital interface so that an exporter can type in their product and the export destination and the system returns the best possible tariff rate. The dashboard will also contain information on quotas and any other restrictions that apply to the export product. As well as helping exporters get the best out of their existing exports, the dashboard will allow them to road-test the tariffs that would apply to new products they want to research or launch into overseas markets. Crucially, it will allow firms to compare the tariff regime they would face versus competitors from other nations that may or may not have an agreement. Businesses will also be able to search markets by total volume of exports and find out which markets and segments are growing fastest. It is also envisaged that the site could provide maps and information about distribution centres in China, Japan and South Korea for various products, along with contact details for potential buyers and distributors.
A study last year by HSBC found that Australian exporters have been slow to take advantage of the business benefits of FTAs and that, on average, each FTA signed by Australia is used only by 19 per cent of Australian exporters, with the complexity of the agreements cited as a problem. Mr Robb is keen to boost that uptake, particularly for small to medium-sized exporters, who may not have the benefit of professional services firms advising them on how to get the best out of the agreements Australia has brokered with its main trading partners. The dashboard will be tailored to operate on tablets and smart phones, recognising that access should be as easy as possible to help time-poor small business owners compete effectively. The dashboard prototype will be developed by NICTA, the government’s peak information and communications technology research centre, and the final version will be put to tender.
China, Japan and South Korea, home to more than 1.5 billion people, account for over 62 per cent of Australia’s exports. The government hopes the dashboard will be in place on the DFAT website in the second half of this year and there are plans to add in previous FTAs such as the Australia-US free trade agreement down the track. Funding for the roadshow will cater for seminars to be delivered to thousands of business owners throughout Australia.
SOURCE: The Australian
As consumers all around the world and leading brands are placing ever more importance on good factory environments and environmental sustainability, Bangladeshi RMG companies has started making investment to turn their factories more environmentally friendly which will bring long term benefits. It is encouraging seeing such investment which helps reduce carbon emissions as well as saving water being supported by Spain’s Zara-Inditex, one of the world’s largest apparel retailers, with the help of the IFC backed Partnership Agreement on Cleaner Textiles (PACT) program. The new unit is equipped with a full-fledged biological ETP solution that can be used to recycle effluents and convert it to organic fertiliser. The government need to do more to promote the building of such factories by supporting tax incentives and allowing more duty-free import of equipment required to establish eco-friendly factories. The Ginat Group’s latest venture includes state-of-the-art environmentally friendly energy-saving and water-saving technolgies as part of a new fully vertically integrated composite knit unit designed to produce 25 tonnes of fabrics a day. Other large RMG manufacturers, including ABA Group, Envoy Textile and Viyellatex have been undertaking similar initiatives to build greener factories. Although such moves have typically involved higher upfront costs, the companies’ investments in purpose-built green factories are justified by reducing long-term maintenance costs and increasing their attractiveness to global buyers and consumers. Such initiatives likely to help boost the competitiveness of Bangladeshi products in the global marketplace
SOURCE: Yarns&Fibers
The production of man-made fibres (MMF) in Japan stood at 81,726 tons in March 2015, registering a decline of 1 per cent compared to the same month of 2014, according to the Japan Chemical Fibres Association. Continuing downward trend for the fifth consecutive month, the production of synthetic fibres, which constitute a major part of MMF, decreased by 1.4 per cent year-on-year to 67,214 tons in March 2015. All four categories of synthetic fibres showed a fall in their output during the month. The production of nylon filament dipped 7.5 per cent year-on-year to 7,718 tons, while that of acrylic staple fibre by 3.2 per cent to 67,214 tons, polyester filament by 0.8 per cent to 11,071 tons, and polyester staple fibre by 5.3 per cent to 11,857 tons. In fact, the production of all categories of synthetic fibres has been decreasing for the past few months. As on March 31, MMF stock with manufacturers was 88,929 tons, down 3.9 per cent compared to the stock as on February 28 this year. The stock of synthetic fibre declined in March by 5 per cent month-on-month to 71,574 tons.
SOURCE: Fibre2fashion
