Textile Raw Material Price 2015-07-05
|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1208.05 |
USD/Ton |
0.27% |
|
VSF |
2060.22 |
USD/Ton |
0.16% |
|
ASF |
2481.40 |
USD/Ton |
0% |
|
Polyester POY |
1178.67 |
USD/Ton |
0% |
|
Nylon FDY |
3036.45 |
USD/Ton |
-0.27% |
|
40D Spandex |
6285.13 |
USD/Ton |
0% |
|
Nylon DTY |
5999.44 |
USD/Ton |
0.14% |
|
Viscose Long Filament |
1457.82 |
USD/Ton |
0% |
|
Polyester DTY |
2856.88 |
USD/Ton |
0% |
|
Nylon POY |
2628.33 |
USD/Ton |
0% |
|
Acrylic Top 3D |
1387.63 |
USD/Ton |
0% |
|
Polyester FDY |
3281.33 |
USD/Ton |
0% |
|
30S Spun Rayon Yarn |
2726.28 |
USD/Ton |
0% |
|
32S Polyester Yarn |
1926.35 |
USD/Ton |
0% |
|
45S T/C Yarn |
2971.15 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2122.25 |
USD/Ton |
-0.76% |
|
T/C Yarn 65/35 32S |
2497.73 |
USD/Ton |
0% |
|
40S Rayon Yarn |
2889.53 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2693.63 |
USD/Ton |
0% |
|
10S Denim Fabric |
1.14 |
USD/Meter |
0% |
|
32S Twill Fabric |
0.96 |
USD/Meter |
0% |
|
40S Combed Poplin |
1.34 |
USD/Meter |
-1.20% |
|
30S Rayon Fabric |
0.77 |
USD/Meter |
0% |
|
45S T/C Fabric |
0.78 |
USD/Meter |
0% |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.16325 USD dtd. 05/07/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The government has said it has approved the first integrated national policy for developing skills and promoting entrepreneurship at a large scale with speed and quality. “The policy aims to align supply with demand, bridging existing skill gaps, promoting industry engagement, operationalise a quality assurance framework, leveraging technology and promoting apprenticeship to tackle the identified issues,” finance minister Arun Jaitley told the media in New Delhi. The government has also approved common norms for Skill Development Schemes being implemented by the Centre as well as an institutional framework for the National Skill Development Mission. The National Policy for Skill Development and Entrepreneurship 2015 acknowledges the need for an effective roadmap for promotion of entrepreneurship as the key to a successful skills strategy.
The vision of the policy is to create an ecosystem of empowerment by skilling on a large scale at speed with high standards and to promote a culture of innovation-based entrepreneurship which can generate wealth and employment so as to ensure sustainable livelihoods for all citizens.The policy has four thrust areas, an official statement said. It also addresses key obstacles to skilling, including low aspirational value, lack of integration with formal education, lack of focus on outcomes, low quality of training infrastructure and trainers. Further, it said the policy seeks to align supply and demand for skills by bridging existing skill gaps, promoting industry engagement, operationalising a quality assurance framework, leverage technology and promoting greater opportunities for apprenticeship training. “Equity is also a focus of the policy, which targets skilling opportunities for socially/geographically marginalised and disadvantaged groups. Skill development and entrepreneurship programmes for women are a specific focus of the policy,” the statement said. In the entrepreneurship domain, the policy seeks to educate and equip potential entrepreneurs, both within and outside the formal education system. It also seeks to connect entrepreneurs to mentors, incubators and credit markets, foster innovation and entrepreneurial culture, improve ease of doing business and promote a focus on social entrepreneurship.
SOURCE: Fibre2fashion
Indian textile exports, especially apparels and denim, may be hit with the signing of largest free trade agreements, the Trans Pacific Partnership (TPP) agreement which the United States is in advanced stage of signing with 11 countires, including Japan, Australia, Vietnam, Singapore and Cananda to enhance trade and investment among the TPP-member countries, promote innovation, economic growth and development, and support the creation and retention of jobs, apart from providing comprehensive market access by eliminating tariffs and other barriers to goods and services. TPP is the initiative of the US with an aim to protect its domestic industry by gaining duty-free access to markets. The negotiations to enter into TPP began in 2005 and are reaching final stages in 2015. As per a report by IndiaNivesh Securities Private Limited, Asia Pacific is an important zone with respect to trade and all non-member countries are likely to be impacted by TPP. Quoting industry experts from Textile Export Promotion Council and Wazir Advisors, the IndiaNivesh Securities Private Limited report says that India, along with other textile-producing countries like China, Pakistan, Bangladesh and Sri Lanka, is likely to be negatively impacted from TPP. Due to duty-free access to Vietnam exports, competitiveness of India can be impacted to a great extent.
India has become an isolated country and such a country can't flourish. All such isolated countries don't get free trade benefit. Now, in this TPP, one country will manufacture fibre and another garment all under one pact and no customs duty will be charged. Vietnam's growth is phenomenal and is still one of the lowest wage countries will make it quite competitive. India will have a clear disadvantage, especially in exports of commodities like T-shirts, men's wear, denim, pullovers and sweaters, among other things, said a senior AEPC official. The impact seen will be in terms of fresh opportunities that had begun to divert to India, which might now again turn in favour of the TPP-member nations. The industry also anticipates a marginal slowing of Indian apparel exports, which was otherwise anticipated to grow at 12-15 per cent per annum for the next few years. Vietnam is a significant player in the textiles and apparel industry. Vietnam exports of textiles to the US has increased from $2.88 billion in 2005 to $9.96 billion in 2014, signifying 14.8 per cent CAGR over the period, making it the fastest growth for any country with a sizeable market share. Moreover, Vietnam's share in the US import of textile and clothing has increased from 3.2 percent in 2005 to 9.3 percent in 2014, according to the IndiaNivesh report.
But according to Anil Rajvanshi, chairman of Synthetic Rayon Textiles Export Promotion Council, the TPP will not affect Indian textile exports but rather open a window of opportunity for Indian textile companies to invest in Vietnam, which neither grows cotton nor has enough fabric units. Also, Prime Minister Narendra Modi has recently extended credit line of $300 million dollars to Vietnam, strengthening relationship between both countries. However, both IndiaNivesh report and Rajvanshi are of the view that the yarn forward rule of origin requires textile and apparel products be made using yarns and fabrics from a TPP country to qualify for the benefits of the agreement, Vietnam will require investment from other countries such as India and China, which the former can take benefit from. With Vietnamese government providing tax holidays, import duty exemption, concession on land lease charges, electricity, among other things for Indian investors, India plans to set up capacities in Vietnam to take advantage of TPP, which would adhere to the yarn forward rule.
SOURCE: Yarns&Fibers
The rupee is likely to weaken this week if the Reserve Bank of India (RBI) continues to mop up dollars through state-run banks. Another important event that could have an impact on the Indian currency is the Greek bailout though currency experts believe it might not cause major jitters in the market. Last month, RBI Governor Raghuram Rajan had said in Stockholm the Indian economy would withstand any impact of the crisis in Greece. According to Rajan, one factor helping India is its strong foreign exchange reserves. After rising for four weeks, RBI's foreign exchange reserves fell $237.5 million for the week ended June 26 to $355.22 billion, data released on Friday showed. "The broad range for the rupee is seen at 63.40 to 63.80 a dollar this week. Further rise of the rupee is not expected much, as RBI might start buying dollars through public sector banks (PSBs)," said Ashutosh Khajuria, president (treasury) at Federal Bank. On Friday, the rupee ended at a two-month high at 63.44 compared with the previous close of 63.51 a dollar. The currency had opened at 63.43 and, during intra-day trades, it touched a high of 63.35 a dollar. The rupee had ended at 63.44 a dollar on May 5. The rise in the rupee was due to capital flows attracted by domestic markets and dollar sale by exporters. The situation in Greece will also have some impact on government bond yields. "The trading range would be between 7.72 per cent and 7.85 per cent for the new 10-year bond and between 7.90 per cent and 8.10 per cent for the 10-year benchmark bond." said Badrish Kulhalli, head of fixed income at HDFC Life. "There is a lot of dependency on the outcome of the Greek referendum (being held on Sunday) and how the market behaves after that," Kuhali added. On Friday, the yield on the 10-year benchmark bond ended stable at 7.98 per cent. The yield on the new 10-year bond ended at 7.80 per cent compared to the previous close of 7.81 per cent.
SOURCE: The Business Standard
Riding on the stellar performance of its textile division, Raymond reported decent numbers in 2014-15. The contribution of the textile division, which reported a good volume growth in both the domestic and the export markets, to the company's earnings before interest, tax, depreciation and amortisation (EBITDA) increased to 89 per cent in 2014-15 from 67 per cent in 2013-14. The management's initiatives on keeping raw material costs low by improving productivity and reducing wastage have also started working in its favour. Lower inventory to reduce working capital requirement is also a step in the right direction. Reduced global commodity prices, especially that of wool, polyester staple fibre, viscose staple fibre and polymers and a reasonably stable rupee should help Raymond further improve its textile business's margins in the coming quarters. The synchronisation of textile and retail is also on a fastrack and the management is focusing more on shirting fabric in its textile segment to leverage its extensive retail network.
However, Raymond's future growth is going to come from the apparels and retail segment. Based on the management strategy of pivoting the company around branded apparel, Raymond is concentrating on brand building initiatives through increased ad spends, showroom revamps and new store rollouts. As of March 2015, Raymond had 960 Indian retail stores and 43 overseas stores. Its new initiative, 'made to fit', where semi-finished clothes are tailored to fit the customers, is generating a good response. Though costs on these new initiatives may pressure margins in this segment in the short term, improved performance could boost sales and profitability in the long-term. Adoption of enterprise resource planning as a common business platform should help Raymond reduce working capital in the apparel segment in the coming quarters.
Raymond is a perfect fit to ride the growth opportunities in the Indian branded apparel segment. Though it is one of the premier consumer brands in India, the counter is still trading at a discount to some of its branded peers like Arvind and, therefore, should provide a healthy upside from current levels. Though the management has no immediate plan for monetising Raymond's 125-acre plot in Thane, Maharashtra, but whenever it does so, it will be a trigger for the stock.
SOURCE: The Economic Times
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 60.04 per barrel (bbl) on 03.07.2015. This was lower than the price of US$ 61.18 per bbl on previous publishing day of 02.07.2015.
In rupee terms, the price of Indian Basket decreased to Rs 3806.54 per bbl on 03.07.2015 as compared to Rs 3889.21 per bbl on 02.07.2015. Rupee closed stronger at Rs 63.40 per US$ on 03.07.2015 as against Rs 63.57 per US$ on 02.07.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on July 03, 2015 (Previous trading day i.e. 02.07.2015) |
Pricing Fortnight for 01.07.2015 (June 12 to June 26, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
60.04 (61.18) |
61.66 |
|
(Rs/bbl |
3806.54 (3889.21) |
3935.76 |
|
|
Exchange Rate |
(Rs/$) |
63.40 (63.57) |
63.83 |
SOURCE: PIB
The government is set to rework the way it does free trade agreements (FTAs), moving to a more liberal regime on routing of third-country goods, as it revives its push for bilateral deals to corner a greater share of the export market. Rules of origin are at the heart of these agreements as they are meant to check routing of third-party goods via countries with which an agreement is signed. Over the years, India has insisted on a system where at least 30-35% value addition takes place in a country with which it signs a trade agreement. In addition, there has to be a change of heading, which means steel sheets should be finished into a product. Easier rules of origin are a key element of the two trade agreements — the one with Australia and the Regional Comprehensive Economic Partnership (RCEP), which includes China and will create the world's largest free trade area. Under the two treaties, the government is expected to move to a product-specific approach covering each category separately, a source told TOI. The change in stance comes at a time when the government is under pressure from several countries that are part of the RCEP negotiations to tweak the rules in a way that it insists on lower value addition or a change in heading. A senior official acknowledged that the move would be meaningful for Indian products to be part of the Asian and global value chain but would mean a radical shift, which the government may not be prepared for immediately. But a revamped strategy is seen to be crucial as the government is ready for the next wave of trade agreements — from Australia to RCEP on the east, and the European Union and Peru on the West.
The Narendra Modi administration, which had ordered a review of all treaties entered into by the UPA government, is of the view that FTAs are the way forward for Indian exports to grow as the US and EU are showing no signs of movement at the World Trade Organization. The Americans are pursuing an ambitious opening up of agenda through the Trans-Pacific Partnership (TPP) with Australia, Canada, Japan, Malaysia, Mexico, Peru and Singapore as well as the Transatlantic Trade and Investment Partnership (TTIP) with EU. As a result, there is a renewed thrust to work out a deal under RCEP, which includes the Asean countries, Australia and New Zealand, apart from China. While India was seen to be holding up talks, sources underlined that the government is keen to move forward to ensure that Indian exports in areas such as textiles and leather are not adversely impacted by the TPP.
SOURCE: The Times of India
Vietnam’s textile and garment industry attracted a majority of the biggest foreign direct investment (FDI) projects approved in the first six months of this year though many provinces had earlier announced they would keep away from such projects as they need lots of labour and pose risks of environmental pollution, a leading Vietnamese newspaper has reported. Last week, the government of Binh Duong Province awarded an investment certificate to Polytex Far Eastern Co. Ltd. under Taiwan’s Far Eastern Group to develop a $274-million clothing project. The biggest FDI project in the southern province in the year to date will come up on 99 hectares at Bau Bang Industrial Zone and produce supporting items for the apparel sector. It is designed to have an annual capacity of 43,200 tons of polyester, 127 million square meters of knitted fabric and 96 million square meters of cotton fabric, the newspaper said. The investor wanted to build the factory in Vietnam to capitalize on the opportunities from the Trans-Pacific Partnership (TPP). The group plans to invest an additional $700 million to $1 billion in the second phase of the project.
Earlier this year, three large-scale projects were approved for the textile and garment sector with two in HCMC and Dong Nai Province, according to statistics of the Foreign Investment Agency under the ministry of planning and investment. Dong Nai Province approved a $660-million project of Hyosung Istanbul Tekstil Ltd. The largest project in January-June will make industrial fibre at Nhon Trach 5 Industrial Zone. This is a Turkish-registered project but the actual investor is South Korea’s Hyosung Group. Hyosung Vietnam Co. Ltd. has been a familiar face in the textile and garment sector in the province with total registered capital of over $995 million. Hyosung decided to expand its investment in Vietnam to enjoy tax incentives and benefit from the US-led TPP, according to industry watchers. Owing to the project, Dong Nai beat its FDI target for the whole year and ranked second for FDI approvals in Vietnam in the first half of 2015 with a total of $1.03 billion registered for new and operational projects.
Hong Kong’s Worldon Vietnam Co. Ltd. also got approval to carry out a $300-million project in the apparel sector in HCMC. The project covers over 50 hectares at Dong Nam Industrial Zone in Cu Chi District. With huge textile and garment projects, the nation’s manufacturing and processing sector received the biggest fresh FDI commitment of $4.18 billion in the first six months of this year, making up 76.2 per cent of the total FDI approvals in the period. The TPP has encouraged many foreign textile and garment firms to boost investments in Vietnam. The yarn-forward rule under the TPP requires that the yarns, fabrics and final garments to be exported within the TPP should be produced in the TPP member countries. So, apparel producers in Vietnam will have to use domestic material or import it from the TPP members instead of China if they want to benefit from the multilateral trade pact.
SOURCE: Fibre2fashion
The Laleli quarter of İstanbul known as Turkey’s textile hub with hundreds of shops sell clothing products at the retail and wholesale level mainly to Russian buyers. In the past year and a half having been experiencing a serious Russian-based crisis. They have confronted the economic difficulties that have arisen from this crisis, and in the last few months they have been diminished. Despite a major drop in the Russian business integral to Turkey's textile industry, the sector is hopeful that it will make up for its losses in the coming season, according to statements from industry leaders. The Turkish textile hub has a decades-long history of customers from Russia and from other former Soviet states purchasing textile products to sell in their home countries. Laleli Industrialists and Businessmen's Association (LASİAD) Chairman Giyasettin Eyyüpkoca, speaking at an iftar dinner arranged by the association late last month said that in the upcoming season they anticipate at the very least, the compensation of a large portion of their losses as Russia is bouncing back. Eyyüpkoca also added that the fourth annual Laleli Fashion Shopping Festival is slated to kick off in August, last year's festival was attended by buyers from 27 countries. Speaking after Eyyüpkoca, the chairman of the İstanbul Textile and Raw Materials Exporters' Union (İTHİB), İsmail Gülle, shared similar sentiments. They are noticing improvements relating to Russia. Their biggest exporting problem is when prices fall as sales increase. In the second half of this year they believe that this situation will improve. It's not easy: In around one year they have gone through three elections, with the new government, they can move forward with new projects prioritizing growth in exports, employment and industry, Gülle said.
According to the Turkish Exporters Assembly (TİM) figures, from earlier this year, exports bound for Russia declined 43 percent between January and April, compared to the same period in 2014. The biggest factor contributing to the major drop stemmed from losses in the ready-made clothing sector. Economic sanctions imposed on Russia after its annexation of Crimea, in conjunction with the devaluation of the ruble, have created a major crisis for the Russian economy. The Russian crisis has spilled over into Turkey, particularly affecting the textile and tourism sectors, as large numbers of Russians on vacation are known to flock to Turkey's southern provinces. But Istanbul continues to attracts a number of international buying offices, trading houses and major retailers and department stores. Since Istanbul is becoming a fashion and shopping center. The World’s largest shopping centers are opening in Istanbul. Many tourist have started added Istanbu to their itinerary for shopping as a global sourcing hub for both Asia and Europe. Also most of the companies have shifted their production facilities to the inner provinces. Izmir, Bursa, Ankara, Denizli, Gaziantep, Kayseri, Tekirdag, Adiyaman, Kahramanmaras and Adana are now major cities for textile and clothing production.
SOURCE: Yarns&Fibers
After conquering the global apparel market, the country's garment makers have now turned their attention to the domestic market, hoping to repeat their success. Over the last one year, at least five export-oriented garment makers -- who have been supplying clothing items to Western brands like Walmart, Hugo Boss, JC Penney, H&M, Marks & Spencer and so on for decades -- have opened plush stores in Dhaka. The size of the domestic fashion market will cross $5 billion a year, according to industry insiders. At present, the majority of the demand is met by local manufacturers, with some items being imported mainly from India, China and Pakistan. “This is the high time to grab the fashion business in Bangladesh as people are becoming fashion conscious with their rising income,” said Shah Rayeed Chowdhury, director of Noir, a local brand of export-oriented Evince Group.
Noir, which opened its first store in Dhaka eight months ago, has two stores running in the capital. The company plans to open two new branches in Dhaka by the end of this year and a few more outside the capital after that. “The response from customers has been amazing,” Chowdhury said, adding the youth are Noir's target. Another successful brand name is Yellow by Beximco. Yellow is not only performing well in the domestic market but also in Pakistan, where it has four stores, said Shehryar Burney, executive director of Yellow. Yellow was started in 2004 because Beximco noticed that the global growth was shifting from the Western economies to Asia, he said. “China and India have had seen a transformation where local markets became a strong source of growth and profits for the brands that were able to capture market-share.”
Bangladesh, with its strong economy, is poised to follow the same path, Burney added. With higher incomes and more prosperity, young consumers are more likely to emulate global trends and focus their consumption on items that enhance their social status, rather than on basic necessities, according to Burney. Yellow now has eleven stores in Bangladesh, and plans to expand the brand footprint to other countries. The company also has distribution partnerships in Algeria and India, and is negotiating to get a brand presence in Thailand and Singapore, Burney said. Yellow has a design team led by top designers who have experience at renowned brands such as Pepe Jeans and Massimo Dutti. Epyllion Group, which supplies garment items to western consumers, has opened five stores in Dhaka in the last five months under brand name 'Sailor'. “Bangladesh has a very big market as the country has a big young population, and income is also increasing every year. So, we started the business in the local market mainly targeting the middle-income customers,” said Rezaul Kabir, assistant general manager for business development of the group. Kabir, without giving his company's turnover, said the sales growth has been above expectations, as the rush of customers is very high, especially during the Eid season. The majority of the fabrics are from the group's own factories and some are imported. The watches, shoes, belts and other accessories for both males and females are imported from China and Singapore.
Partex Group, which is one of the country's leading denim fabrics makers, has also joined the race. Showkat Aziz Russell, managing director of Amber Lifestyle, a venture of Partex, said one day Bangladesh would have one of the leading garment retail brands worldwide. “People never imagined Bangladesh would be the second largest apparel exporter worldwide, but it is a reality now, although we don't produce cotton. We will be one of the leading garment retailers in future.” Amber Lifestyle carries the company's own garment items as well as imported accessories for both men and women at its four stores in Dhaka.
SOURCE: The Daily Star
The BRICS grouping are expected to launch a Common Economic Strategy Document — for an easily trade framework for boosting intra-BRICS trade—during the seventh edition of their summit in Ufa, Russia, on July 9. After the New Development Bank (NDB), which will be operationalised at the Ufa summit, BRICS nations are hoping to release the 30-page strategy document, which will provide a "comprehensive framework for cooperation in trade and economic affairs," according to official aware of the issue. Sources said Russia is keen to have this document in place for the Ufa Summit. The document deals with issues ranging from trade facilitation and cooperation between small and medium-scale industries, to cooperation in agriculture, telecommunications, energy security, tourism and science and tech. They hinted that as Russia was very supportive of India's initiative of launching NDB, it was Delhi's turn to support Moscow's initiative on the Economic Strategy Document. The BRICS leaders would also try to synergise their views on the situation in Syria and Yemen, threats from the ISIS and continuing instability in Afghanistan. Both India and Russia have been worried with continuing scourge of terrorism in Afghanistan.
SOURCE: The Economic Times
During a visit to Israel, Chairman of the Party Central Committee’s Commission for Economic Affairs Vuong Dinh Hue expressed his country’s desire to strengthen ties with Israel. In a meeting with Israeli Minister of Economy Aryeh Deri, Hue expressed his belief that the two countries have a huge potential for cooperation, especially as it pertains to the fields of science-technology, agriculture, security, trade and investment. Israel also agreed to share its experience in building startups and technology incubators. Vuong Dinh Hue, heading high ranking Vietnamese economic delegation to Israel, said that Vietnam and Israel should make more efforts to expand their trade to US$2 billion in 2015, and higher in the following years. At a working session with Israeli Minister of the Economy Aryeh Deri on June 28, the visiting Vietnamese official said his country wishes to intensify multifaceted cooperation with Israel, especially in economics.
Bilateral trade exceeded US$1 billion in 2014 and shot up over 80% in the first quarter of 2015, compared to the same period last year, Hue noted, adding that the two countries hold massive collaboration potential, particularly in science-technology, agriculture, security-defense, trade and investment. To reach the 2015 bilateral trade target, he asked Israel to create optimal conditions to import Vietnamese tea, coffee, rice, seafood, handicrafts and natural rubber. In return, Vietnam is willing to facilitate Israel’s export of hi-tech and quality products, transfer of science-technology, and funding of production activities in the Southeast Asian country, he added. Hue said the two sides should also foster partnerships in other potential fields such as energy, information technology, new material production and consumer goods and food industries. He urged the rapid completion of a joint research report on the feasibility of negotiations on a bilateral free trade agreement (FTA) and asked Israel to recognize Vietnam’s full market economy to enable FTA talks to commence as soon as possible.
For his part, Israeli Economy Minister Aryeh Deri noted the substantial progress seen in bilateral relations since the countries set up diplomatic ties in July 1993 and pledged his utmost efforts to enhance their multifaceted cooperation. He agreed with the Vietnamese side’s proposals and said the two governments should create policies supporting agricultural affiliation, especially in copyright registration, intellectual property and investment funds.
SOURCE: The Port2port
Government has been cautioned against signing international trade and bilateral agreements without scrutinizing their impact on indigenous business firms. Kyambogo University senior lecturer, Milton Ayoki, said trade agreements seek to favour foreign business firms or multinationals. He said government should only sign agreements as long as it takes interest on the survival of local business firms. Ayoki pointed out that 50 per cent of local enterprises can hardly survive their fifth birthday due to competition driven by foreign firms. He was speaking during an interface meeting between policy makers, civil society organizations, MPs and members of the private sector at Golf Course Hotel in Kampala. The interface meeting organized by Southern and Eastern Africa Trade Information Negotiations Institute (SEATINI) was aimed at addressing the development challenges of Uganda in the context of Economic Partnership Agreements (EPAs), Common Market for Eastern and Southern African (COMESA), East African Community (EAC), South African Development Community Tripartite and other bilateral trade agreements. Responding to the senior lecturer's concern, Dr. Abubaker Moki – an official from the Cabinet secretariat and Office of the President – pointed out that government cannot cancel trade and bilateral agreements it has signed. "Cabinet can't unpack signed agreements; instead we engage and negotiate – that's where we can influence.”
To increase access and understanding of signed agreements which come in the form of multinational, continental, regional and bilateral, the government probes to find out who are the likely beneficiaries, explained Moki. "Once the agreements have been signed, we go ahead to interrogate who the beneficiaries are.” Business firms were pushed to observe international standards which require importation and exportation of quality products. "Substandard goods are critical. Without quality standards, we can't succeed," said the official. Meanwhile, Ambassador Nathan Irumba pointed out that there is need to revisit government's policy on procurement as it favours foreign firms. "We are worried of government’s procurement policy. What chances are there for Ugandan firms to win a contract apart from foreign companies?” On promotion of small and medium enterprises (SMEs), Buikwe Woman MP Dorothy Mpiima (pictured below) rapped government of undermining the latter in preference to foreign companies. She said Nytil – a textile industry – laid off 400 women who are now jobless and yet government continues to buy uniform for Police and the Army from China and India. Nwoya MP Lilly Adong called on SMEs to improve on the quality of their products to attract local buyers or else consumers will continue to eye foreign products.
SOURCE: The New Vision
Crude oil fell in Asia today as investors digested the implications of Greece rejecting tough austerity demands from creditors which could send the debt-strapped nation crashing out of the Euro Zone, analysts said. Greek voters overwhelmingly rejected the bailout terms demanded by international creditors, with official figures from Sunday’s referendum showing 61.31 per cent voting “No” and 38.69 per cent voting “Yes“. “The result of the Greek referendum has thrust the world into uncharted territory,” Singapore’s DBS Bank said in a market commentary. US benchmark West Texas Intermediate for delivery in August plummeted USD 1.88 to USD 55.05 a barrel and Brent crude tumbled 50 cents to USD 59.82 in late—morning Asian trade. “With the No result announced in early Asian trade, we are seeing big mark downs as markets open,” said Nicholas Teo, market analyst at CMC Markets in Singapore. He said the result of the Greek vote could lead to either a watering down of the bailout demands by creditors or to a “full blown” exit by Athens from the eurozone currency union. “From a market point of view, both alternatives carry risks,” he said in a market commentary.
Oil prices are also under pressure from continued high US crude output which is adding to the already oversupplied global market and last—ditch negotiations between Western powers and Iran on curbing Tehran’s nuclear ambitions. “A report by Baker Hughes on the increase in (US) oil rigs added to the woes of the benchmark prices, which are already under pressure from the ongoing Greek crisis and Iran nuclear negotiations,” said Sanjeev Gupta, head of the Asia— Pacific Oil and Gas practice at professional services firm EY. “With the Greek referendum voting against acceptance of the bailout and the new deadline of 7 July for reaching an agreement with Iran, oil markets will continue to remain bearish,” he said.
SOURCE: The Hindu Business Line
