|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1278.765 |
USD/Ton |
0.64% |
|
VSF |
2029.734 |
USD/Ton |
0% |
|
ASF |
2488.2975 |
USD/Ton |
0% |
|
Polyester POY |
1233.9675 |
USD/Ton |
1% |
|
Nylon FDY |
3095.1 |
USD/Ton |
0% |
|
40D Spandex |
6385.68 |
USD/Ton |
0% |
|
Nylon DTY |
5937.705 |
USD/Ton |
0% |
|
Viscose Long Filament |
1493.793 |
USD/Ton |
0% |
|
Polyester DTY |
2932.2 |
USD/Ton |
0% |
|
Nylon POY |
2682.963 |
USD/Ton |
0% |
|
Acrylic Top 3D |
1441.665 |
USD/Ton |
0% |
|
Polyester FDY |
3372.03 |
USD/Ton |
0% |
|
30S Spun Rayon Yarn |
2720.43 |
USD/Ton |
0% |
|
32S Polyester Yarn |
2003.67 |
USD/Ton |
0% |
|
45S T/C Yarn |
2981.07 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2883.33 |
USD/Ton |
0% |
|
T/C Yarn 65/35 32S |
2736.72 |
USD/Ton |
-0.59% |
|
40S Rayon Yarn |
2182.86 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2508.66 |
USD/Ton |
-0.65% |
|
10S Denim Fabric |
1.1403 |
USD/Meter |
0% |
|
32S Twill Fabric |
0.99369 |
USD/Meter |
0% |
|
40S Combed Poplin |
1.35207 |
USD/Meter |
0% |
|
30S Rayon Fabric |
0.773775 |
USD/Meter |
0% |
|
45S T/C Fabric |
0.78192 |
USD/Meter |
0% |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16290 USD dtd. 03/06/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The Tamil Nadu government has assured the Tirupur Exporters Association (TEA) that it would soon announce a new textile policy, the exporters’ body has said in a statement. The statement was issued after TEA president Dr A Sakthivel met handlooms and textiles minister S.Gokula Indira , industries minister P.Thangamani and Tamil Nadu chief secretary K.Gnanadesikan and other top bureaucrats recently to discuss the issue. He also handed over a letter addressed to chief minister J. Jayalalithaa requesting her to announce Tamil Nadu’s new textile policy immediately. The letter also suggested setting up the textile board under the chairmanship of the chief minister textiles minister wherein the textile secretary will be the coordinator and representatives from the textile Industry association as members and meet periodically for a single window clearance. The TEA’s letter also asked the government bring out a separate State Export Policy in line with Foreign Trade Policy of the central government for a focused approach for export development of the state. TEA also demanded the construction of working women’s hostels with grant of at least 50 per cent. In its statement, the TEA claimed that the government has assured it of the announcement of textile policy in near future and address its other demands.
SOURCE: Fibre2fashion
The empowered committee of state finance ministers, headed by K.M. Mani, will meet in New Delhi on Thursday to deliberate on the revenue neutral rate, besides other issues, for smooth roll out of goods and services tax (GST). The Centre proposes to roll out GST by April 2016. The Constitutional Amendment Bill for rolling out of GST has been referred to a Rajya Sabha select committee, while the Lok Sabha has already cleared the bill. Sources said the empowered committee, which comprises state finance ministers, is scheduled to discuss the revenue neutral rate, in addition to some other issues. Touted as the single biggest indirect tax reform since independence, the GST will subsume various levies such as excise duty, service tax, entry tax and octroi. Finance Minister Arun Jaitley has said the GST would be a “win-win” for both Centre and states. The Constitutional Amendment Bill also provides for levy of 1% additional tax for two years by the manufacturing states for inter-state transfer of goods. Under the provisions of the bill, petroleum goods will be part of the GST but they will be levied at zero rate, implying that the states will continue to levy VAT while Centre will levy excise duty for initial few years. Thereafter, the levy on petroleum products will be fully subsumed in the GST on a date to be decided by the GST council. The council will have two-third members from the states and the remaining from the Centre. The states, however, will continue to levy taxes on alcohol as is the practice now.
SOURCE: The Live Mint
Owners of the power loom job working units in the district have decided to close down their units on June 13 as mark of protest against the sudden cut in job work charges given by the textile units for the production of fabrics. R. Velusamy, president of the Tirupur District Power loom Job Working Units Owners Association, told The Hindu that the job working charges were raised by 27 per cent in 2014 as per the agreement reached upon between the job working units and the textile units that give job works for production of fabrics. “But, the job work charges have been suddenly slashed recently by the textile units to the tune of 20 per cent, which has affected the viability of our member units,” he said. The strike would be held from 6 a.m. to 6 p.m. on June 13
SOURCE: The Hindu
Ahead of Prime Minister Narendra Modi's visit to Bangladesh, the Commerce Ministry today permitted trading of locally-produced goods in border haats at Kamalasagar in Tripura and Tarapur Kasba in the neighbouring country. For this, the Director General of Foreign Trade (DGFT) has made arrangements under a Memorandum of Understanding signed between India and Bangladesh in November 2010. It has enlisted commodities which will be allowed to be traded in the border haats at Kamalasagar in Tripura and Tarapur Kasba in Bangladesh.The commodities include locally produced vegetables, food items, fruits, spices; minor local forest produce -- bamboo, bamboo grass and broom stick but excluding timber; products of local cottage industries like gamcha and lungi; locally produced small agricultural household implements -- plough, axe, spade and chisel. Besides, garments, melamine products, processed food items and fruit juice was also permitted. "Vendors who are allowed to sell their products in the Border Haats shall be the residents of the area within 5 km radius from the location of Border Haats," DGFT said in a public notice. India and Bangladesh in October 2010 signed an MoU to promote border trade through two new haats at Kamalasagar, Tripura and Tarapur Kasba on Bangladesh side. The Prime Minister will embark on a two-day visit to Bangladesh beginning June 6 with an aim to inject new momentum in the bilateral relationship by enhancing cooperation in connectivity, economic and other areas.
SOURCE: The Economic Times
India today conveyed to Belarus its decision to extend a USD 100 million line of credit for joint ventures with the east European country which has shown interest in the flagship 'Make In India' initiative. The Indian government's decision was conveyed by President Pranab Mukherjee to his counterpart President A G Lukashenko as the two countries decided to work together on defence and security issues and agreed on a 17-point roadmap aimed at strengthening mutual trust and confidence. Briefing reporters after the meeting, Secretary (West) in the Ministry of External Affairs Navtej Sarna said President Mukherjee conveyed to Lukashenko the decision to give status of market economy to Belarus besides extending a line of credit of USD 100 million for projects that will be jointly identified. Mukherjee, who arrived here late last night on a two-day visit, was accorded a ceremonial welcome at the majestic Palace of Independence by Lukashenko. After the ceremony, Mukherjee had a one-to-one meeting with Lukashenko.
During the talks with Lukashenko, the President discussed a host of issues which included increasing trade ties between the two countries besides boosting cooperation in the field of mining, education and heavy machinery. Later, the two Presidents witnessed the signing ceremony of several agreements and Memorandum of Understandings, including agreements between Securities and Exchange Board of India ( SEBI) and Ministry of Finance, Bureau of Indian Standards as well as between Prasar Bharti and National State Television. The agreements signed included the 17-point roadmap which is aimed at strengthening mutual trust and confidence between the two countries and having a strong commitment to develop multi-faceted and long term cooperation. The two countries vowed to work together to ensure full implementation of MoU on defence related technical cooperation and develop a legal framework for bilateral cooperation in the field of security. Sarna said Belarus has shown interest in joining the 'Make in India' programme and use India as a hub to export products to ASEAN countries. He said Belarus is known for its expertise in optical fibre, heavy machinery and defence equipment. He said during the discussion with the Belarusian President, Mukherjee told him that foreign direct investment norms have been relaxed thus giving opportunities to global companies to come and manufacture their products. He said Mukherjee informed the Belarusian President that the defence sector has also been opened up where Belarus can identify key sectors in which it wants to invest. The President also conveyed that Belarus was among 25 countries which have been shortlisted by India for cooperation in defence sector, Sarna said.
SOURCE: The Economic Times
The US has said it is encouraged by the economic reforms being pursued by the Indian government, and appealed to it to consider taking additional steps towards facilitating trade. "We have seen a positive recognition from the Indian Government that it can do more to attract foreign investment. We are encouraged by a number of reforms being pursued with respect to taxes, land acquisition and labour," said US Deputy Chief of Mission Christopher Wilson at the WTO Trade Policy Review of India in Geneva. "There are encouraging signs that positive trade-specific reforms may be contemplated, including the drafting of the National Intellectual Property Rights Policy and recent public statements by Prime Minister Narendra Modi calling for a stronger IPR regime," a statement by the Office of the US Trade Representatives quoted Wilson as saying.
Wilson said the US is pleased that in March, the Indian Parliament passed a bill increasing the limit on foreign investment in the insurance sector. And in April, India published its new 5-year foreign trade policy, announcing new programs aimed specifically at implementing the WTO Trade Facilitation Agreement. "In light of India's very direct role in shaping the TFA, we look forward to hearing India's plans to complete timely ratification of the TFA and also to submit its Category A notifications," he said. "The US invites India to consider how additional steps to open the country's trading regime can help India harness the benefits of trade to drive up investment and create jobs," Wilson said. These steps would include significant, long-term reductions in agricultural tariffs and removal of unjustifiable SPS and TBT impediments on agricultural imports, both of which can help address food price inflation," he said. "This would also open the retail and the e-commerce sectors to increased foreign participation which can contribute to improving supply chains and greatly reducing food wastage and avoiding recourse to export restrictions," he said. A strong and effective IPR regime is a critical component of attracting and retaining investment and achieving India's ambitious economic goals, the US trade official said. "As the Indian Government reviews the recommendations of the IPR Think Tank, we recommend providing a new round of solicitation of public comments before the Policy is made final," he said.
SOURCE: The Economic Times
The bi-lateral trade between India and the United States is poised to grow five-fold from the current $100 billion to $500 billion, a Indo-US business body has said. "Trade between the United States and India is poised to grow from $100 billion to the $500 billion in the next few years," said Mukesh Aghi, president of the US-India Business Council (USIBC) yesterday. USIBC member companies are united in their efforts and actions to build both the Indian and US economies as attractive destinations for investment and to create jobs and opportunities for citizens to grow and prosper, he said. "To turn this vision into reality, we need a strong foundational relationship between governments and businesses," Aghi said. Meanwhile, USIBC had hosted a executive committee briefing for the US Ambassador to India Richard Verma.
SOURCE: The Economic Times
Boosting trade and connectivity, as well as inking of agreements on power, road transport and shipping, is set to be the focus of Prime Minister Narendra Modi’s visit to Bangladesh on June 6 and7, as both neighbours prepare to put into operation the long-awaited land-swap agreement. Also on the agenda is the Bangladesh-Bhutan-India-Nepal (BBIN) Motor Vehicle Agreement.During the visit, connectivity between north-eastern states to Kolkata, via Bangaladesh, will be on the table for discussions and Modi is likely to flag off a bus service between Kolkata, Dhaka and Agartala. This service is expected to give an impetus to people-to-people connectivity between both the countries.New Delhi and Dhaka have already been discussing Kolkata-Chittagong, Shillong-Chittagong, Khulna-Kolkata and Jeshore-Kolkata bus services, and a survey for the construction of a bridge across the Feni River had already been completed. Bangladesh is expected to start construction soon with a land port on their side.While both countries already have the Kolkata to Dhaka train service, both would examine the possibility of a train service between Khulna and Kolkata, sources said. However, an accord on sharing the Teesta river waters will not be on the agenda as “much distance is to be travelled” yet by both sides on arriving at an agreement. It is understood that while the West Bengal government has been kept on board on consultations regarding sharing of the Teesta, which runs through lower riparian neighbour Bangladesh, the necessary support from the state has not been forthcoming. With India and Bangladesh sharing a 4,096-km border, of which over 1,000 km is riverine, there is a great potential to boost waterways connectivity. Both sides are negotiating a coastal shipping agreement, which would allow smaller vessels to go to Bangladesh. The two countries also have an inland waterways agreement signed in 1972. Indian companies are being invited to set up ports in Bangladesh. Opening up of more border haats is also set to get a boost. In 2012, India opened a border haat in Meghalaya to boost trade in local produce. Sources say seven more border haats are also on the anvil. The two sides are also planning to set up Special Economic Zones in Bangladesh to boost Indian investment. Bangladesh has offered land for setting up SEZs.
SOURCE: The Financial Express
India has signed a multilateral agreement that specifies the details of what financial account information will be exchanged and when, as set out in the internationally approved single standard for automatic exchange of information (AEOI). This agreement is called the multilateral competent authority agreement (MCAA) on automatic exchange of financial account information, which implements the internationally approved standard for automatic exchange. While the agreement is multilateral, the actual exchanges are bilateral. It would be instrumental in getting information about assets of Indians held abroad, including through entities in which Indians are beneficial owners. “This will help the government to curb tax evasion and deal with the problem of black money,” an official release said. The declaration to comply with the MCAA provisions was signed by Mohan Kumar, Ambassador of India to France, in Paris on June 3, with as many as six countries, including India, joining the MCAA. The other five countries are Australia, Canada, Costa Rica, Indonesia and New Zealand. With this, the total number of countries agreeing to exchange information automatically in accordance with MCAA has gone up to 60. So far, 94 countries have committed to exchange information on an automatic basis 2017 onward, as per the new global standards, known as ‘Common Reporting Standards (CRS) on AEOI’. The new global standards are very wide in scope and oblige the treaty partners to exchange a wide range of financial information after collecting the same from financial institutions in their country/jurisdictions, including information about the ultimate controlling persons and beneficial owners of entities.
SOURCE: The Hindu Business Line
The Paris-based Organisation for Economic Cooperation and Development (OECD), said on Wednesday that India’s economic growth would remain “strong and stable” but scaled down earlier projections for the economic expansion to 7.3 per cent from the previous estimate of 7.7 per cent. The projection for 2016 was cut to 7.4 per cent from the earlier forecast of eight per cent. The grouping had in its Interim Economic Assessment report, issued in March, given the earlier estimates. India's economic growth was 7.5 per cent in the first quarter of 2015. This implies that 7.3 per cent economic expansion in 2015 would mean lower growth in the next nine months. Also, the government’s Economic Survey had projected India’s expansion in gross domestic product in the range of 8.1-8.5 per cent in 2015-16, much of which would fall in calendar year 2015. OECD has projected 7.4 per cent growth even in 2016.
India’s economic growth is projected to remain “strong and stable” on the back of revival in investments, even as more reforms are needed to reduce uncertainties over taxation norms, OECD said. It felt the decline in oil prices would reduce pressures on the current account deficit, inflation and subsidies. Their projection came a day after the Reserve Bank of India (RBI) flagged concerns about monsoon and inflation that would have an impact on economic growth. OECD, a grouping of 34 countries, said investment failed to rebound in 2014, reflecting poor infrastructure and delays in administrative procedures. “To revive corporate investment, further reforms are needed to reduce uncertainties surrounding land acquisition and tax regulations and to improve the quality of electricity and transport systems,” it said.
The 2015-16 fiscal consolidation target has been relaxed to allow for increased infrastructure investment, while structural reforms to improve the ease of doing business and the Make in India initiative should boost corporate investment, OECD added. “The reduction in inflation expectations provides room for monetary easing. Addressing non-performing loans would strengthen monetary policy transmission,” it said. According to OECD, improved public spending efficiency and increased revenue are required to fund needed public investment in physical and social infrastructure in India. Fiscal consolidation would also make room for the authorities to reduce requirements on banks to hold government bonds, which would release funds for private credit. Adding: “Subsidy to food, fertiliser and oil products should be better targeted, and the envisaged sales tax (GST) and corporate tax reforms should be implemented swiftly.”
SOURCE: The Business Standard
A 13-member delegation representing Denim Manufacturers Association (DMA) and Northern India Textile Mills Association (NITMA) recently visited Vietnam to explore the market. Some textile players stirred by the proposed textile park that is likely to come up near the Southern Vietnam economic hub of Ho Chi Minh City are eyeing at investment opportunities there. Vietnam is one of leading source countries for apparel and is dependent on other nations such as China for textile input. According to Siddhartha Rajagopal, executive director, the Cotton Textiles Export Promotion Council, there are opportunities in spinning and fibre segment. Several companies are in fact studying the potential of setting up units in Vietnam. The only issue is that the Vietnam government wants that yarn should be made in their country itself. During his own visit, Prime Minister Narendra Modi had offered $300 million line of credit to Vietnam to buy materials and textile machinery. India is currently looking at the possibility of setting up a textile park in Vietnam, a move that is likely to boost trade and investment in man-made fibres and fabrics between the two countries.
The Synthetic and Rayon Textiles Export Promotion Council of India has also called for feedback from its members to put together a draft proposal on the textile park. Vietnam's textile industry has been witnessing steady growth over the recent years and is poised to become the next textile and garment hotspot as it is likely to benefit hugely from Trans-Pacific Partnership Agreement which is being negotiated among 12 countries including the US and Canada. After China, Vietnam is the second biggest exporter to the US, even ahead of India. Earlier this month a delegation including the heads of companies such as Anubha Industries, Raymond UCO Denim Pvt Ltd, Mafatlal Industries Ltd, Soma Textile & Industries Ltd, Vinod Denim Ltd, Modern Denim Ltd, the secretary general of NITMA, and the company secretary of DMA, among others visited Vietnam.
SOURCE: Yarns&Fibers
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 63.07 per barrel (bbl) on 03.06.2015. This was lower than the price of US$ 63.61 per bbl on previous publishing day of 02.06.2015.
In rupee terms, the price of Indian Basket decreased to Rs 4027.02 per bbl on 03.06.2015 as compared to Rs 4060.23 per bbl on 02.06.2015. Rupee closed weaker at Rs 63.85 per US$ on 03.06.2015 as against Rs 63.83 per US$ on 02.06.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on June 03, 2015 (Previous trading day i.e. 02.06.2015) |
Pricing Fortnight for 01.06.2015 (May 14 to May 27, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
63.07 (63.61) |
63.49 |
|
(Rs/bbl |
4027.02 (4060.23) |
4045.58 |
|
|
Exchange Rate |
(Rs/$) |
63.85 (63.83) |
63.72 |
SOURCE: PIB
Report by the General Customs of Vietnam shows that garment and textile and footwear export turnover posted robust growth in May. Garment and textile exports were estimated at US$1.65 billion in May, an increase of 0.8 percent over the previous month, sending five-month garment and textile exports to above $8.11 billion, up 8.7 percent compared to the same period last year. According to the Vietnam Textile and Apparel Association, nearly 62 percent of garment businesses have seen higher amount of contracts in the second quarter of this year, compared to previous quarter. Footwear exports have been experiencing the same situation. According to the Ministry of Industry and Trade, footwear exports were estimated at $1.1 billion, up 11.8 percent compared to previous month. In the first five months of this year, footwear export turnover reached $4.63 billion, up 19.5 percent over the same period last year.
A survey by the General Statistics Office said that 55.7 percent of footwear businesses have got more export contracts in the second quarter of 2015. Garment and textile and footwear industries are expected to have many advantages when free trade agreements (FTA) take effect. Since the beginning of this year, the number of foreign investors investing in Vietnamese garment and textile industry in order to wait for FTAs, such as TTP, FTA Vietnam – EU, and FTA Vietnam – South Korea in front, has been continually increasing because Vietnam is considered to receive most benefit as many tariffs will be cut to zero percent.
SOURCE: The Saigon GP Daily
The Russian clothing and footwear market has been witnessing negative growth since 2014, forcing many European brands to close their stores and exit the market. This, along with China losing its position as world’s leading garments manufacturer, opens Russia for exports from Vietnam, Bangladesh and other Asian countries. Since the beginning of 2015, the Russian clothing and footwear retail market declined by 25–35 percent in terms of volume. It is, however, expected to grow at about 3.5–4 percent by the end of the year in terms of value to reach 3.21 trillion rubles ($60.9 billion), according to Y-Сonsulting analysts’ estimates. In the first quarter of 2015, sales declined by 42 percent in terms of volume and 19 percent in value terms. The mid-range segment has experienced the most severe drop. Since 2014, many international clothing brands left the Russian market, including Italy’s OVS, British New Look and River Island, and Germany and Hong Kong headquartered Esprit. Experts predict a new wave of exits in September-October.
Import trends shifting
The Asian garment manufacturing industry is undergoing a certain kind of segmentation, according to experts. China’s position as world’s number one destination for cheap textiles has been shaken by emerging Asian counties such as India, Bangladesh, Vietnam, Thailand, and Indonesia. According to the Vietnam Textile & Apparel Association (VITAS), between 2005 and 2011, the country’s garment exports increased by 32 percent, while China's exports increased by 15 percent and exports from India, Turkey, Malaysia and Thailand increased by about 7 percent. “Textile and footwear production gradually leaves China. Countries such as India, Bangladesh, Pakistan and up to lesser extent Vietnam, Cambodia, Indonesia, Laos, Korea have significantly developed their garment manufacturing industries,” Olga Strelnikova, head of textile department at SCS Group, says. There are two major factors that make garment imports to Russia from these counties more competitive than from China, - the prices and the lower import duties imposed by the Russian government.
“Speaking of import growth in 2013-14, one may see an obvious trend. The negative dynamics of China, Italy and Turkey and growing figures for Vietnam, India and Bangladesh,” Anna Lebsak-Kleimans, CEO Fashion Consulting Group, says. Bangladesh and Vietnam are on the list of seven largest apparel exporters to Russia, according to on Consulting Group data. Although their shares are not as big as China’s, the growth is more impressive. In 2012-14, imports from Bangladesh grew at 25.59 percent and Vietnam at 16.96 per cent while imports from China fell by 4.48 percent. Anna Lebsak-Kleimans notes that Asian countries, mainly China, account for about 75-80 percent of counterfeit garment and footwear imports in Russia (the so-called “grey import”). At the same time, the size of this segment has reduced significantly since 2000 when it was estimated at about 80 percent of total sales, Lebsak-Kleimans says. In 2014, it accounted for not more than 25 percent. The segment affected by counterfeit goods is mostly bags and accessories, sportswear and shoes (Adidas, Nike, and others).
Vietnam at the forefront
According to the Vietnam National Textile and Garment Group (Vinatex), the European Union will continue to be Vietnam’s major market in the coming years. However, with Moscow no longer levying high tariffs on Vietnamese apparel products, its exports to Russia will increase. Last week, Vietnam signed a free trade agreement with the Eurasian Economic Union (EAEU) comprising Russia, Belarus, Armenia, Kazakhstan and Kyrgyzstan. This is likely to boost apparel exports from Vietnam to the EAEU. “Implementation of the agreement will boost bilateral trade and promote trade and economic ties between its participants, it will also solve the problem of involving the EAEU in integration processes in the Asia-Pacific region,” a Russian government press statement said. Russian authorities expect this agreement to become a model for Russia’s further integration with other members of ASEAN trade bloc.
“Creating a free trade zone will benefit Vietnam whose export-oriented economy has been already showing good growth rates since 2011. It will provide Vietnam with some logistic advantages over its Asian peers, for example Bangladesh,” Anna Lebsak-Kleimans says. At the same time, she adds, the emergence of a new “low-cost” provider of finished garment products will further complicate the task of bringing industrial enterprises back from Asia to Russia. “The share of imports in clothing, footwear and accessories segment is more than 80 percent. The fall in local garment manufacturing has been continuing for the last 20 years and it is very difficult to reverse it,” she says.
Asian vs. Domestic
While fashion industry experts expect Russian manufacturers to compete with imports from Southeast Asian counties, they say, Russian brands could consider these countries as manufacturing partners. Although the Russian government supports expanding domestic manufacturing capacity and improving production efficiency, conditions are still difficult for domestic players. There are 653 large and medium enterprises and about 4,000 small companies in Russia engaged in the garments and textile industry, according to government statistics. The industry has been on a slow but steady path of revival since the crisis of 2009. According to Souzlegprom (Russian Union of Entrepreneurs of Textile and Light Industry), domestic manufacturers benefit from Russia's Light Industry Development Strategy, which provides state support for textile and garments manufacturers, including modernization of technological base and enhancing their competitiveness, among other measures. Last year, the Russian government banned using imported textiles for manufacturing of military uniforms, leisurewear, underwear, bedclothes, hats, socks, pillows and shoes. However, Anna Lebsak-Kleimans says, at present Russian manufacturers have only one advantage –geographic location. The government support reaches only large factories and is limited to placing government orders mostly for defense and industrial uniforms.
BTK Group, one of Russia’s largest producers of men’s apparel and uniforms, has a $1.5 billion contract with the Russian Ministry of Defense for army uniform manufacturing, and has been recently included in the list of 199 enterprises approved by the anti-crisis Commission of the Government of the Russian Federation. BTK Group spokesperson believes that in the current economic environment, Russia can compete with Southeast Asian counties in terms of salaries in the garment sector. “The wages there have been increasing by 20 percent yearly since 2006 and reached $650 a month currently,” he says adding that Russia’s geographic proximity to CIS and Eastern Europe markets gives local manufacturers extra advantages. At the same time, he adds, the high level of local manufacturers’ dependence on imported raw materials and machinery remains a major challenge. Olga Strelnikova adds that although local manufacturers benefited from exchange rates fluctuations that made their prices extremely competitive, the lack of variety of materials and technologies, when compared to what Southeast Asian countries can offer, remains the main problem for Russian manufacturers.
Strelnikova says the ruble’s sharp drop against the dollar last year and the following period of recession and uncertainty caused many Russian brands to revise their manufacturing strategy. “Many companies prefer not taking any risks in binding themselves by external contracts implying payment in dollars because they could not predict the final price of the products since the manufacturing cycle is at least 6 months long, sometimes more.” However, she adds, more Russian brands now opt for combined production. They purchase fabrics and accessories abroad and sew in Russia where the cost of sewing is cheaper. Strelnikova adds that since consumers value not only cheap prices, but also overall impression and quality of the apparel, factors like modern materials and new processing technologies become important. This is the area where Russian manufacturers cannot compete at the moment.
SOURCE: Russia Beyond the Headlines
The exports of textile and clothing from the Southeast Asian nation of Thailand declined by 6.04 per cent to $2.245 billion in the first four months of 2015, compared to $2.290 billion earnings in comparable period last year, data from the Thai Garment Manufacturers Association showed. Segment-wise, textile exports dropped by 5.70 per cent year-on-year to $1.384 billion, while garment exports decreased by 6.59 per cent to $861.75 million during the four-month period, according to the association. In the textile category, woven fabric exports fetched $477.18 million, followed by yarn and man-made filaments with $254.23 million and synthetic filament and staple fibres with $231.72 million. Similarly, among apparel, man-made fibre garment exports were valued at $275.15 million, followed by cotton garments at $225.27 million, and garments of other textile materials at $176.54 million. In terms of major destinations of Thai garment exports, the US led the pack with $294.90 million, whereas the 28-member EU accounted for $188.49 million, Japan $128.42 million, Asean(9) $46.63 million, and China (including Hong Kong) $45.28 million. Thai clothing exports to the EU saw maximum drop of 13.91 per cent during the period under review, mainly due to the country losing import-duty privileges from this year. In 2014, Thai textile exports dropped marginally by 0.14 per cent year-on-year to $4.602 billion, while garment exports decreased by 0.57 per cent to $2.857 billion.
SOURCE: Fibre2fashion
Highlighting some of the pressing issues of the textile sector, All Pakistan Textile Mills Association (Aptma) Acting Chairman Wisal Monnoo has said that the industry lacks the capability to fully compete in manmade fibre textile and clothing products due to the protection provided to local polyester staple fibre (PSF) manufacturers. “At present, 6% customs duty and 6% import incidental together with local PSF manufacturers’ margin make PSF available at around 20% price differential,” he said. “The textile industry is predominately cotton-based with an odd fibre mix – 80% cotton and 20% manmade fibre against the global average of 70% manmade fibre and 30% cotton.” Monnoo said this prevented the textile industry from diversifying its products and markets, though Pakistan had been granted the GSP Plus market access facility since January 2014. “The textile industry has been unable to produce exportable surplus in particular manmade fibre-based products, therefore, it could not benefit from enormous opportunities under the GSP Plus for the export of synthetic-based textile products.” He said the proposal to increase customs duty on PSF import would not only make textile goods meant for export further unviable but would also render PSF-based textile goods for domestic consumption unaffordable. Already, he said, cheaper import and smuggled synthetic yarn and fabric have made inroads into the domestic market due to present high polyester tariff. The acting chairman of Aptma urged the government to bring the import duty on PSF down to zero. Furthermore, he said, all specialty fibres including acrylic should be allowed to be imported at zero per cent import incidental, enabling the industry to diversify its product base. He said Viscose staple fibre, which was not being manufactured locally, should be allowed to be imported at zero customs duty.
SOURCE: The Tribune
The National Union of Textile Garment & Tailoring Workers of Nigeria (NUTGTWN) has called on President Muhammadu Buhari to reconstitute a Presidential Task Force on destruction of seized textile materials once they are seized by the Nigeria Customs Service or any of the security agencies. In a statement issued on Wednesday by its General Secretary, Issa Aremu, the union explained that such task force, which will include all critical stakeholders including labour, had become necessary to protect and strengthen the nation’s domestic textile industries and save Nigerians’ job. The union also requested for the public destruction of such seized illegal goods to serve as a deterrent to persons who might what to venture into such illegal business. The statement further stress the need for the government to combine the fight against smuggling with uninterrupted supply of electricity, provide long term cheap fund through the Bank of Industry (BOI) and government patronage of locally produced textiles as a way of reviving the moribund textile industry. The union commanded officers and men the Nigeria Customs Service on their recent seizure of contraband textile materials in Kano State worth about 319.9 billion Naira. The textile workers expressed hopes that such renewed war against illegal goods into Nigeria would be sustained in order to protect local producers and ensure sustainable jobs. While it identified the high influx of counterfeit and smuggled goods as well as domination of the Nigerian textile market by such illegal goods as a major threat to the realisation of the great potential of Nigeria in textile production, the union lamented that such an unwholesome practice also denies the Nigerian government the much needed revenue in unpaid custom duties.
SOURCE: The Channels TV
Vietnam and Portugal reached agreements on numerous measures to promote their relations on June 3 during a landmark visit by Prime Minister Nguyen Tan Dung, the first made by a Vietnamese Government leader since the two countries established diplomatic ties 40-year ago. During talks between the two Prime Ministers, PM Pedro Passos Coelho described the two-day official visit of his Vietnamese counterpart as “historic” and a significant milestone in bilateral relationship. He said he was convinced that the success of the visit would increase the friendship and cooperation between the two sides to a new stage of strong, intensive and effective development. The Portuguese PM spoke highly of Vietnam’s increasing position, role and reputation in the region and the world. PM Nguyen Tan Dung congratulated Portugal for its efforts to recover and accelerate economic growth, and appreciated the active role that Portugal has played in addressing global issues. He said Vietnam would like to develop comprehensive ties with Portugal, adding that the two countries should continue to coordinate and support each other at multilateral, regional and inter-national forums such as the United Nations, the Asia-Europe Meeting (ASEM) and the ASEAN-EU cooperation. Speaking about relations between Vietnam and the EU, PM Coelho said that Portugal backs Vietnam’s comprehensive ties with the EU, and supports early conclusion of talks on and signing of the free trade agreement between Vietnam and the EU, as well as EU’s recognition of Vietnam’s market economy.
The two PM agreed that the FTA, together with the framework agreement on Comprehensive Partnership and Cooperation Agreement (PCA) between Vietnam and the EU, will be solid ground for the development of long-standing and in-depth ties between Vietnam and the EU in general, and Vietnam and Portugal in particular. The two leaders expressed their satisfaction at their bilateral economic and trade ties, which continue to grow year by year. Two-way trade increased from 90 million USD in 2008 to 364 million USD in 2014, but was yet to reach its full potential, they said. The PMs agreed that they should push economic and trade cooperation and create favourable conditions for enterprises from both sides to do business in effort to bring bilateral trade to 1 billion USD. “The two sides should make efforts to turn economics, trade and investment ties into an important pillar of our bilateral relationship. We should also establish practical ties in areas suitable with their respective strength and needs, such as the maritime economy, energy, trade and tourism,” said PM Dung.
Appreciating Portugal’s initiative to organise the “Sea Week 2015” and expressing thanks for PM Coelho’s invite to the opening of the “Sea Economy Forum”, PM Dung stressed that “cooperation in the sea economy would be an opportunity and a field of great potential for cooperation between the two countries”. In the spirit of mutual trust and and understanding, the PM exchanged views on regional and international matters of mutual interests. They asserted the importance of peace, stability, security, safety and freedom of navigation to marine economic cooperation, and shared their concerns about the recent complex development in the East Sea. The Portuguese PM stressed that disputes should be resolved through peaceful means, without using force or threatening to use force, in line with the UN Charter as well as the basic principles of international law. They also agreed that the two sides should boost exchanges between people, and cultural and sports exchanges, which helped strengthen the friendship, cooperation and mutual understanding between Vietnam and Portugal. They expressed their willingness to expand cooperation in education and training, including the teaching of the Portuguese language in Vietnam. The two PMs jointly chaired an international press briefing following their talks, and witnessed the signing of a bilateral agreement on double tax avoidance and an MoU in tourism cooperation.
Talking to the press, PM Dung affirmed that Vietnam will always create favourable conditions for Portuguese enterprises to develop their business cooperation with their Vietnamese partners. Regarding the prospect of cooperation in the sea economy, the PM told the press that as countries with long coast lines and maritime strategies, Vietnam and Portugal agree on the importance of the sea for mutual development, security and prosperity, and consider it a field of great potential for mutual cooperation. The Portuguese PM also told the media that the two sides has discussed cooperation in trade, investment, and culture, and agreed to take measures to boost cooperation between enterprises from both countries. He reiterated that cooperation in the sea economy will be a priority for mutual cooperation. In response to reporters’ questions about maritime security and safety in the East Sea, PM Coelho said all differences and disputes must be settled via peaceful measures and comfort with international law under the UN’s surveillance. The PMs said they were happy with their friendship and cooperation over the past four decades, however, both said they should increase exchanges at all levels, especially high-ranking delegations. On the occasion, PM Dung invited PM Coelho to visit Vietnam
SOURCE: The Vietnam Plus
The US trade deficit narrowed in April on a drop in imports, which surged in March following the end of a West Coast ports labor dispute, while companies picked up their hiring in May after a pullback the previous month. The data supported the notion the US economy has recovered somewhat from a first-quarter contraction and bolstered expectations the Federal Reserve may consider raising interest rates later this year. Not all the news on Wednesday was as encouraging. Two private reports signalled slower growth in the US services sector, which has propped up the economy as it faced drags from a strong dollar, a recent rise in oil costs and sluggish demand abroad. US stock indexes rose after the data. The dollar and prices of US Treasuries fell, which traders said was due more to the selling of German Bunds and gains in the euro after the European Central Bank upgraded its inflation outlook.
The US Commerce Department on Wednesday said the trade gap narrowed to $40.9 billion from March's revised deficit of $50.6 billion. The 19.2 per cent drop in the April trade deficit was the largest decrease since early 2009, and the deficit was about $3 billion less than forecast. Imports fell 3.3 per cent to $230.8 billion as West Coast ports, a key gateway for goods to and from Asia, cleared a backlog created by a labor dispute that was settled earlier this year. Exports increased 1.0 per cent to $189.9 billion in April with foreign sales of US services edging up to a record high of $60.9 billion. The April petroleum deficit stood at $6.8 billion, the lowest since March 2002. The latest trade data led Morgan Stanley to raise its forecast of US economic growth in the second quarter to 2.7 per cent from 2.2 per cent. Meanwhile, private employers added 201,000 jobs in May, the most since January, payrolls processor ADP said on Wednesday. Financial firm Markit said its final May reading of its PMI for the services industry slipped to 56.2, its lowest since January. That was in line with analyst forecasts and higher than a revised 165,000 jobs in April, which were the fewest since January 2014.
The ADP data came ahead of the U.S. Labor Department's more comprehensive non-farm payrolls report on Friday, which includes both public and private-sector employment. Economists polled by Reuters are looking for total US employment to have grown by 225,000 jobs in May, largely in line with April's 223,000 increase. The unemployment rate is seen holding at a near seven-year low of 5.4 percent. Flying in the face of the better trade and jobs outlook, other data showed services industries booked fewer new orders last month. The Institute for Supply Management's own services sector gauge fell to 55.7 last month, its weakest since April 2014.
SOURCE: The Business Standard
