|
Item |
Price |
Unit |
Fluctuation |
|
PSF |
1154.32 |
USD/Ton |
-0.42% |
|
VSF |
2138.84 |
USD/Ton |
0% |
|
ASF |
2510.28 |
USD/Ton |
0% |
|
Polyester POY |
1151.05 |
USD/Ton |
-0.42% |
|
Nylon FDY |
2955.19 |
USD/Ton |
-0.55% |
|
40D Spandex |
6204.26 |
USD/Ton |
0% |
|
Nylon DTY |
3249.07 |
USD/Ton |
0% |
|
Viscose Long Filament |
6032.83 |
USD/Ton |
0% |
|
Polyester DTY |
1423.71 |
USD/Ton |
0% |
|
Nylon POY |
2775.59 |
USD/Ton |
0% |
|
Acrylic Top 3D |
2706.20 |
USD/Ton |
0% |
|
Polyester FDY |
1366.57 |
USD/Ton |
0% |
|
30S Spun Rayon Yarn |
2734.77 |
USD/Ton |
0% |
|
32S Polyester Yarn |
1877.61 |
USD/Ton |
0% |
|
45S T/C Yarn |
2938.86 |
USD/Ton |
0% |
|
45S Polyester Yarn |
2057.20 |
USD/Ton |
-0.79% |
|
T/C Yarn 65/35 32S |
2481.70 |
USD/Ton |
0% |
|
40S Rayon Yarn |
2906.21 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2677.63 |
USD/Ton |
0% |
|
10S Denim Fabric |
1.14 |
USD/Meter |
0% |
|
32S Twill Fabric |
0.96 |
USD/Meter |
0% |
|
40S Combed Poplin |
1.06 |
USD/Meter |
0% |
|
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 = 0.16327 USD dtd. 19/07/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Powerloom weavers from Sachin GIDC and Hojiwala Estate have unanimously decided not to enter into any business deal with merchants who do not provide valid references of traders from respective markets in the city as there is rising number of defaults in the textile market. This has forced at least 2000 powerloom weavers to devise a new way of doing business in the market. Now, fabric merchants and traders will have to furnish valid references of prominent traders from the market to purchase unfinished fabrics from the weavers. Moreover, the weavers will collect bio-data of traders operating from rented premises in the textile markets. The traders operating from rented shops will have to provide references of shop owners as well as two other traders having shops in the same market. The final verification of the details submitted by the traders will be cross-verified by a committee of Sachin Weavers' Welfare Association (SWWA).
The Sachin weavers have adopted strict business practices after over 136 weavers from Sachin GIDC and Hojiwala Estate were cheated by a gang of fly-by-night operators in the textile markets for over Rs 4.5 crore last week. SWWA president Mahendra Ramoliya said that the weavers are an easy bait for fly-by-night operators. It is high time the weaver community implemented strict measures to curb defaults in the market. Each and every weaver in Sachin has taken an oath for not doing business without reference. They don't mind losing business, but can't suffer losses anymore. Unfinished fabrics are sold to the textile traders. The traders in turn send the grey fabrics to the textile dyeing and printing mills for final finishing of the fabrics and later to the embroidery units, digital printing units etc. for designing exquisite saris and dress material fabric. The city houses country's largest man-made fabric (MMF) industry. There are 50,000 weaving units housing around 6.5 lakh powerloom machines. These units weave around 3.75 crore meters of fabric every day worth over Rs 75 crore.
SOURCE: Yarns&Fibers
Textile and apparel major Raymond plans to market its bed and bath range of home furnishing products as 'Raymond Home' at its overseas composite stores. "We will market the products at the 60 Raymond stores located in the neighboring countries like Sri Lanka and Bangladesh and also in the whole of West Asia. In this year, we will go to one or two stores for marketing the products. By FY 17, this range of products will be available at all our overseas Raymond stores", said S K Gupta, President, Raymond Ltd. Gupta was in Cuttack to open the fifth exclusive store for Raymond Home.
SOURCE: The Business Standard
Concerned over a continuous decline in exports, the government today said it will soon announce an interest subsidy scheme for exporters. "The interest subvention scheme is to be announced soon, which will give encouragement to sectors that have high potential," Commerce and Industry Minister Nirmala Sitharaman said here at a function. She said that exports are largely suffering because international demand is not picking up and currencies, particularly euro, are depreciating. "So, the triggers for improving the export performance are not really happening," she said, adding that the ministry is discussing the matter with industry groups to find ways to push exports and explore new markets.
Under the interest subvention scheme, exporters get loans at affordable rates. Loans at subsidised rates will help exporters boost shipments as the country's exports were in the negative zone during the past seven months. The interest subvention scheme of 3 per cent ended on March 31 last year. For the seventh month in a row, India's exports fell 15.82 per cent in June to US$ 22.28 billion due to global slowdown and decline in crude oil prices that impacted shipments of petroleum products.
SOURCE: The Economic Times
Even as political support for the Constitutional Amendment Bill for the goods and services tax (GST) seemed to grow, the Rajya Sabha select committee has mostly concurred with the Bill as proposed by the Modi government, sources privy to the matter told FE. The House panel, which is to finalise its report on Monday, is learnt to have endorsed the 1% tax on interstate trade proposed for the initial two years of the GST regime to give relief to manufacturing states. The ruling coalition partners and many others including the Trinamool Congress largely supported the current version of the Bill as passed by the Lok Sabha and did not agree with the Congress party’s proposals to include petroleum products in the GST from the start itself and cap the tax rate at 18% in the Constitution itself. The Congress may give a dissent note.
In parallel, the Centre has sought to give a sense of urgency to the executive processes to meet the April 1, 2016, deadline to launch the new tax. The finance ministry, sources said, has mooted a converged list of items to be exempted from GST for the ventral and state components of GST to keep administration simple. As far as area-based exemptions are concerned, they would be retained until the end dates already announced, while these, being incompatible with the GST, won’t be extended. The central government is also set to choose an IT company for building the necessary infrastructure. Navin Kumar, chairman of GST Network, a joint venture between the federal and state governments, said that five bids for building the necessary IT infrastructure for GST have been received and that the partner would be identified by end of next month. While Kumar did not specify the names of the bidders, sources said TCS, Wipro, Infosys, Tech Mahindra and Microsoft have expressed interest in the project. The Centre and the empowered committee of state finance ministers will work together to expedite the preparation of the draft central and state level GST statutes.
VS Krishnan, member, service tax and GST, said here at an interaction organised by industry chamber Ficci that there was a general consensus that the list of exemptions at the central and state levels needed to converge. At present, about 99 items are exempted by states from levy of VAT, while 219 items are exempted from central excise duty. “When the lists of products that are exempted from central excise duty and state level VAT are converged, fewer items in the current list of excise exemptions would get the duty benefit,” said R. Muralidharan, senior director, Deloitte. Krishnan said the broad policy of the central government was to phase out area-based tax exemptions, but in cases where incentives are committed in order to attract investments, the benefit would be “grandfathered”, implying that these would be allowed for the full promised extent. “Wherever sunset clauses (end dates for benefits) are mentioned in law, we will have to honour them,” he said. These would include the area-based tax exemptions given to businesses in the northeast and in hill states. The official also said that states could determine their exemptions within the flexibility the new indirect tax regime would offer.
Senior officials said that the central government was fully prepared to meet the April 1, 2016, deadline for GST, but political observers remain sceptical about getting the Constitution (122nd Amendment) Bill passed in the Rajya Sabha in the forthcoming session of Parliament beginning July 21. The Bill was passed earlier in Lok Sabha but was referred to a select panel of the Rajya Sabha led by the BJP’s Bhupender Yadav. The panel has to present the report by July 24. Congress, the main opposition party in the Upper House, is learned to be preparing a dissent note on the Bill, saying it cannot support a Bill that was not “simple and comprehensive”. Trinamool Congress has in the meantime offered to support the Bill. The Congress wants an 18% ceiling for GST to be specified in the Constitution itself, besides dropping the provision for 1% tax that states could levy on exports for two years. Registration of new traders on the IT network of GST would commence from January 31 and traders currently registered with state tax departments would be migrated to the new system.
SOURCE: The Financial Express
The Centre remains committed to roll out the Goods and Services Tax (GST) regime from April 1 next year, a top Finance Ministry official has said. There is also no plan to rethink on the one percentage point origin-based additional tax sought to be imposed on inter-State sales under the proposed GST framework, said VS Krishnan, Member — Service Tax and GST, Central Board of Excise and Customs (CBEC). “No rethink is planned”, he told BusinessLine on the sidelines of a FICCI interactive event on GST held here.
India Inc has been opposed to the Centre’s plan to introduce the additional one per cent origin-based tax as it was inconsistent with the destination-based dual GST system proposed for the country. The plan to introduce one percentage point additional tax would have a cascading effect and could erode margins for industry, they contended. However, the Centre is keen on this levy as it would help placate the big manufacturing States, such as Gujarat and Maharashtra in supporting the GST implementation in the country. Meanwhile, Krishnan said the draft legislation on Central GST, State GST and IGST will be put up in public domain for comments once the Constitutional (Amendment) Bill is passed. Krishnan said the issues under discussions were rates of CGST, IGST and SGST, threshold limits of exemptions and compounding, list of exempted goods and services, transitional provisions for treatment of accumulated CENVAT credit, dispute resolution mechanism among others. S Madhavan, co-Chairman of FICCI’s Task Force on GST, said the industry body was keen that GST rates to be decided in the coming days are as moderate as possible.
SOURCE: The Hindu Business Line
To help local manufacturers, the Finance Ministry has issued notifications that restrict low duty benefit only for them. The three new notifications by the Central Board of Excise and Custom (CBEC), dated July 17, aim to strengthen the differential duty regime. This will protect domestic manufacturing, as imported items will attract 12.5 per cent duty, while domestic manufacturers will be required to pay 2 per cent duty if they do not avail CENVAT (Central Value Added Tax) credit on taxes paid on inputs. This will mainly benefit the domestic textile industry and mobile phones, beside others.
Arun Goyal, Director of Academy of Business Studies (ABS), said the challenge to the differential duty regime arose from the Supreme Court judgement of March 26, 2015 in the SRF case. A two member Bench of Justice AK Sikri and Rohington Nariman held that imported goods will be deemed to be manufactured in India and thus be eligible to a concession duty applicable on goods manufactured in India which do not avail of Cenvat credit. Now, the new notifications say only manufacturers can benefit from the “CENVAT not availed” condition. Mere buyers are specifically excluded.
Cash payment
Further, the excise on inputs going into manufacturing must be paid in cash. This will override the concept of ‘deeming fiction’ which underlies the Supreme Court ruling. Experts believe the apex court verdict disturbed the system which used to give protection up to 11.5 per cent to goods manufactured in India who could easily forego low incidence of input tax to get the benefit of virtual zero excise on the final goods. At the same time, duty collection was also affected despite higher imports of HR coils, fertilisers and mobile phones. A study by ABS revealed that 144 items in excise notifications will be covered by the differential duty strengthening measure. The entire textile industry is in the differential duty regime where imports are charged 12.5 per cent CVD of excise while domestically produced goods move in a parallel zero excise duty stream. Other major items include mobile phones, tablets, coal, fertilisers, HR and CR steel coils, jewellery articles, aluminium plates and sheets, and copper for handicrafts. Similarly, 132 items from the small and medium industry sector are also in the differential duty regime.
SOURCE: The Hindu Business Line
Concerned over continuous decline in exports, the government has constituted council comprising members of the Centre and states to promote India's overseas shipments. The Union Commerce and Industry Minister will be the chairperson of 'Council for Trade Development and Promotion', while trade/commerce ministers in states and Union Territories will be the members. Besides, 14 secretaries of the central government including commerce, revenue, shipping, civil aviation, agriculture, food processing and economic affairs will also be the members the council, according to an official.
Contracting for the seventh month in a row, India's exports dipped by 15.82 per cent in June to $22.28 billion. The move is also aimed at achieving the $900 billion exports target by 2019-20. The council will provide a platform to state governments and UTs for articulating their perspective on trade policy to help them develop and pursue export strategies in line with national foreign trade policy. Besides, it will help the Centre apprise states and UTs about international developments affecting India's trade potential and opportunities and prepare them to deal with evolving situation.
The Centre and state governments would also deliberate in the council on the relevant infrastructure to promote trade and identify impediments and infrastructure gaps that are adversely affecting India's exports. The council will be "recommendatory" in nature and will meet at least once every year, the official said. The other members of the council include Chairman Railway Board, Niti Ayog Secretary and CEO, Director General of Foreign Trade, Director General of Federation of Indian Export Organisations, representatives of CII and FICCI and concerned Joint Secretary of Department of Commerce. The whole idea behind the council is to increase involvement of states/UTs to promote exports, the official said, adding that the Commerce Ministry has also asked them to appoint commissioners and prepare export strategies. As many as 21 states have appointed export commissioners while 14 states including Madhya Pradesh and Gujarat have framed strategies for outward shipments. In a meeting on July 15, the ministry had asked states to expedite infrastructure development process and to formulate a trade policy in order to boost exports.
SOURCE: The Economic Times
The India-Pakistan trade dialogue, stalled for over two years following brutal killing of soldiers at the Line of Control in January 2013, could start immediately if the national security advisers of the two countries hold their planned meeting. “The negotiating teams from both sides are ready to re-start our talks as soon as we get the green signal. Trade officials have been informally meeting from time to time to go over the remaining work programme on trade liberalisation and we know exactly where to pick up the threads from,” a Commerce Ministry official told BusinessLine . In fact, even earlier this month, Commerce Ministry officials from both countries had met informally on the sidelines of a SAARC meeting in Pakistan to discuss pending trade issues. However, there is no certainty yet on when the national security advisers meeting will actually happen.
Border tension
Despite Prime Minister Narendra Modi and his Pakistani counterpart Nawaz Sharief agreeing to re-start talks on bilateral issues during their meeting in Ufa earlier this month, the recent ceasefire violations have increased border tension between the two countries, signalling a rough road ahead. “The impasse that was created after the cancellation of the Foreign Secretary level talks in August last year is perhaps over, but things are still fluid,” the official said. When talks re-start, Pakistan will have to extend the non-discriminatory market access (NDMA) status to India (the earlier term ‘most favoured nation’ has been discarded because of political reasons), which basically means that it will treat India the same as its other trading partners by allowing all goods to be imported.
NDMA status
Since Pakistan has already removed import ban on more than 6,800 items since the trade normalisation process began in 2011, it will need to import just the 1,203 remaining banned items to grant the NDMA status to India. Since some of the banned items are sensitive like automobiles, textiles and chemicals, India is ready to give Pakistan additional concession in textiles by bringing down duties to below 5 per cent, once it gets the NDMA status. India exported goods worth $1.9 billion to Pakistan in 2014-15 while its imports were to the tune of $500 million. According to estimates made by research body ICRIER, bilateral trade has the potential of increasing several times if trade relations are normalised.
SOURCE: The Hindu Business Line
With bilateral trade extremely low, India and Russia have initiated steps to remove the hindrances and boost commerce by signing an agreement in the area of customs and moving to liberalise business visas. The bilateral trade during the last year was just USD 9.51 billion and Prime Minister Narendra Modi and Russian President Vladimir Putin discussed ways to increase it when they met in Ufa on July 8. The two countries have fixed a target of USD 30 billion to be achieved by 2025. "The fact that trade and investment is not upto expectations was widely accepted by the leaders of the two countries," Indian Ambassador to Russia P S Raghavan told PTI here while referring to the Ufa meeting. He said the trade has remained low because of various factors, like inadequate connectivity, language barriers, visa barriers and regulations. "Distances are long. Shipping route at present is far too long and expensive. There is no land connectivity because of political reasons and security considerations," he said. While talking about the barriers, Raghavan said, "We are working to clear each of them... We have made progress... We are systematically working to expand trade." He said the proposed North-South freight corridor, on which India and Russia are working together, will help in reducing the distance and expenses by almost half. "With Russia, we are working on opening up of North South Corridor, for trade from India to Russia to central Asia through Iran. We made some progress with all stakeholders in this. It will reduce freight by roughly half, reduce time by roughly half and make Indian goods competitive," he said.
Among other steps being taken to address the non-tariff barriers, the Ambassador said, was an agreement reached very recently on customs which provides for rapid clearances of imported goods at the land and sea ports. "We will identify entities to be covered under this. It will significantly address one of the non-tariff barriers," he said. With regard to visas, which is encountering problems from the Russian side, the two countries are also "close" to an agreement on further liberalisation. "Hope that will take place in the near future," Raghavan said. Raghavan said the two countries also recently concluded an agreement on setting up a Joint Study Group that will recommend contours of a Free Trade Agreement between India and the Eurasian Economic Union comprising Russia, Kazakhstan, Belarus and Armenia. "It is a grouping with which India sees a lot of promise in expansion of trade and investment," he said. The Study Group will identify the goods with preferential access, which will help promote trade, Raghavan said. The two countries are also very close to an agreement on dairy exports from India to Russia. The Ambassador said Indian companies are looking at investments in Russia, particularly in the fertiliser, coal and pharmaceutical sectors.
On the Russian side, the country's Investment Fund is keen to invest in India, including in hi-tech projects. It is looking for partners in this regard, he said. Russian Railways has also expressed interest in working with its counterpart in India on upgradation and modernisation, particularly in the areas of high-speed trains and electronic security systems, Raghavan said, citing a communication received by him from them recently. When pointed out that Russia is under sanctions slapped by the West, the Ambassador said India does not "subscribe to" sanctions which have not been imposed by the United Nations. The US and other countries of the West which have imposed sanctions on Russia over the Ukraine crisis. The West imposed sanctions on Moscow after Crimea joined Russia in March 2014. The standoff between them have been escalated because of Russia's role in the conflict in Ukraine.
SOURCE: The Economic Times
Iranian President Hassan Rouhani has asked India to invest in infrastructure projects worth $8 billion, including an expanded role in developing a strategic port that will open up access to Central Asia, Iran's envoy to New Delhi said on Friday.The port of Chabahar in southeast Iran is central to India's efforts to circumvent arch-rival Pakistan and open up a route to landlocked Afghanistan where it has developed close security ties and economic interests. Rouhani suggested the larger role for India during a meeting with Prime Minister Narendra Modi on the sidelines of a summit in Russia days before the historic nuclear deal between Iran and world powers, Iran's ambassador to India told Reuters."The potential between Iran and India is great but we were just facing such a wall of sanctions, wall of American pressure," ambassador Gholamreza Ansari said.
Ansari said that with sanctions likely to be lifted soon, it was a "golden time" for India to seize investment opportunities because of the two countries' close trade ties and shared interest in improving Central Asian transport links."Connectivity is the main policy of Modi that coincides with Iran's government policy," Ansari said. "We have offered them, in connectivy, $8 billion of projects."Modi's meeting with Rouhani was part of a tour of Central Asia focused on increasing India's role in the region. It was not immediately clear how Modi responded to Rouhani's offer.Country's foreign ministry did not respond to a request for comment.
Iran and six world powers reached a nuclear deal on Tuesday, clearing the way for an easing of sanctions on Tehran.India and Iran agreed in 2003 to develop Chabahar on the Gulf of Oman, near Iran's border with Pakistan, but the venture has moved slowly because of the sanctions over Iran's atomic programme.The two countries maintained a close relationship despite the US-led trade restrictions that halved their oil trade to 220,000 barrels per day last year.In May, India's Shipping Minister Nitin Gadkari and his Iranian counterpart, Abbas Ahmad Akhoundi, signed an $85 million deal for India to lease two existing berths at the port and use them as multi-purpose cargo terminals.Under the new proposal India could help build second and third terminals at the port, as well as railway connections into the rest of Iran, Ansari said.India has moved slowly on opportunities in Iran in the past, including the giant Farzad B gas field. Ansari said India was the "first priority" to develop Farzad B, but urged New Delhi to move fast: "If they drag their feet, the market will not wait."
SOURCE: The Economic Times
With $18 billion line of credit extended to 65 countries, India’s Exim Bank is eyeing a bigger role in the global financial architecture. Further, with the closing down of the US Exim Bank, Yaduvendra Mathur , chairman and managing director of Export-Import Bank of India feels that it opens up more market for the bank. Talking to Sohini Das , Mathur outlines how Exim Bank is encouraging companies to set up manufacturing facilities in countries like Cambodia, Laos, Vietnam and Myanmar.
Excerpts:
Exports have been contracting for the past six months. What strategy has Exim Bank adopted to counter the problem?
We are not directly managing the exports and imports; we are only into project exports. We have not noted any slippage in project exports; they continue to grow. Overall exports may have reduced, and my sense is that it might be because of the pricing of petroleum. I think the slippage in the figures is not indicative of any slippage in the economy. There is a global slippage in demand, but India’s slippage is much lower in comparison to the other developing economies. Other economies have slipped by five or six per cent, while our slippage is by two to three per cent.
You recently extended the line of credit to Tanzania. Now with Prime Minister Modi visiting many countries across the globe, what is the plan on the line of credit?
We are going to Bangladesh soon to extend a $2 billion dollar line of credit. Currently, we have $18 billion line of credit extended to 65 countries. The prime minister has announced it, and now the final signatures would be done in the first or second week of August. It is for Bangladesh to decide what it wants to import with this money, but 75 per cent of the money has to be plumbed into imports from India. The loan we give comes with a rider.
Will closing down of Exim Bank in the US have any repercussions on operations of Exim Bank in India? Will it make it tough for Indian companies to expand in US markets?
Exim Bank in the US has closed down because there are groups in the US which think that the support that US Exim Bank is giving to some companies, is crony capitalism. But we think that the role of ECAs (export credit agencies) in countries like India and in Asia is immense. In fact, seeing our pattern, many other countries are opening up exim banks. With the US Exim Bank closing down, we would now have more market. Now that competition will go away. Indian companies are going to the US, and we are encouraging them to set up units and factories in the global value chain, so that they can access more developed markets.
Instead of exporting raw materials, we want them to upgrade first in India, and then prepare the final finished good in another country, if they can take advantage of the regional trade treaties that exist, like the Trans-Pacific partnership. One initiative that Exim Bank is supporting is Cambodia, Laos, Vietnam and Myanmar, where we are encouraging Indian companies to go and set up their factories there. From there, they can export to the US and Europe markets.
You recently signed a multilateral agreement with New Development Bank (NDB) along with other development banks of BRICS nations. Will it help India diversify more to these nations, as it faces subdued demand conditions from the advanced world?
We are very enthused with the BRICS and the new initiative, including the New Development Bank. This is a major development in the international financial architecture. With leadership being provided by India through its president K V Kamath — the way he had transformed retail banking in India — we look at the same transformation in the global financial architecture.
Exim Bank, in collaboration with AfDB, is setting up a project development company in Africa to identify and develop infrastructure projects there. How do you envisage India’s private sector role in building infrastructure in Africa? It had burnt it fingers in the PPP model in India. Do you see similar problems in Africa?
We have set up a project development company that would be registered on July 20. The shareholders’ agreement would be signed in Mauritius. It is called the Kukuza Project Development Company (KPDC). The equity holders are Exim Bank, African Development Bank (AfDB), State Bank and ILFS. KPDC would do early stage project development. It would spend money on a PPP model, then bid out and recover its costs. The PPP model is being questioned because tariffs are not clear and there should be more flexibility in the mid-term.
Which level of rupee against the dollar you see an ideal for making Indian exports competitive?
The target by the Reserve Bank of India (RBI) is around Rs 63-64 against the dollar. I don’t think that a genuine exporter actually plays on the currency game; he plays on the quality of the products. More quality and more complex products should be made. We should go up the value chain.
SOURCE: The Business Standard
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 56.29 per barrel (bbl) on 16.07.2015.
In rupee terms, the price of Indian Basket decreased to Rs 3573.85 per bbl on 17.07.2015 as compared to Rs 3574.42 per bbl on 16.07.2015. Rupee closed stronger at Rs 63.49 per US$ on 17.07.2015 as against Rs 63.50 per US$ on 16.07.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on July 17, 2015 (Previous trading day i.e. 16.07.2015) |
Pricing Fortnight for 16.07.2015 (June 27 to July 13, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
56.29 |
58.69 |
|
(Rs/bbl |
3573.85 (3574.42) |
3730.34 |
|
|
Exchange Rate |
(Rs/$) |
63.49 (63.50) |
63.56 |
* Since Oman & Dubai prices are not available due to holiday in Singapore on 17.07.2015, the price of Indian Basket Crude oil cannot be derived. Therefore, price of Indian Basket as of 16.07.2015 has been considered.
SOURCE: PIB
The Ministry of Commerce (MoC) on Tuesday began looking into allegations of the dumping of acrylic fiber imported from Japan, the Republic of Korea and Turkey. The MoC will try to determine whether the imports have damaged domestic producers' interests and if their interests have been affected, the ministry said in a statement. The investigation started on July 14, the statement said. Acrylic fibers are widely used in the clothes manufacturing sector.
SOURCE: The Global Textiles
Vietnam's textile and garment industry has currently raised its profits and improved its position in the global market. In the first five months of this year, Vietnam’s textile and garment exports to member countries of the Trans-Pacific Partnership (TPP) increased 69, 66 percent in comparison to the same period of 2014. The country's textile and garment exports totaled US$ 4 billion, accounting for 50 percent in the TPP member countries and 50 percent in the same period last year. Besides, the industry’s exports to Japan achieved US$ 1 billion, and US$ 207 million to Canada. From January to June, 2015, the industry’s export turnover continued to profit at US$ 12, 18 billion, an increase of 10, 26 percent, compared to the same period last year. According to the Vietnam Textile and Apparel Association (VITAS), with the sharply growth rate as now, export turnover of Vietnam’s textile and clothing is predicted to reach US$ 28 billion, leading the textile and garment sector to be one of the country's largest industries.
SOURCE: The Saigon GP Daily
Vietnam saw a trade deficit of US$3.07 billion in the first half this year, reported the General Department of Vietnam Customs. Steel trade deficits on the rise in the beginning months of this year.Total export import turnover topped US$158.6 billion, up 13 percent over the same period last year. Of these, exports surged 9.3 percent to hit US$77.77 billion and imports moved up 16.7 percent to touch US$80.84 billion. Foreign Direct Investment (FDI) sector posted a total export import turnover of US$101 billion, a year on year increase of 22 percent and accounting for 63.5 percent of the country’s total turnover. The sector’s export value reached US$52.54 billion, up 20.4 percent while import value was recorded at US$48.17 percent, up 23.8 percent. Domestic firms’ export value was US$25.23 billion, down 8.4 percent while import value went up 7.7 percent to US$32.67 billion.
SOURCE: The Saigon GP Daily
Vietnam will be able to access a huge market of 3.4 billion people when it joins the Regional Comprehensive Economic Partnership (RCEP). Countries in RCEP will have a combined GDP of US$21 trillion, accounting for 29 percent of the world's GDP, said Nguyen Anh Duong, Deputy Director of the Central Institute for Economic Management (CIEM). Speaking during a workshop held in Hanoi on July 17 on the impact of RCEP on Vietnam's economy and the opportunities and challenges it would pose, Duong said regulations on origin in RCEP would be simpler and more liberal than in other economic pacts. In addition, the parties would make more commitments on freedom of trade in goods and services and investment.
Negotiations on RCEP officially began in 2012 with six countries: Australia, China, India, Japan, the Republic of Korea and New Zealand. The pact aims to build a regional free trade area. The RCEP states' total GDP will be higher than the combined GDP of countries in the Trans-Pacific Partnership (TPP), which will account for 26 percent of the world's GDP, and it will have a rapidly growing middle class.
According to Duong, RCEP is expected to offer major opportunities to Vietnam by improving its access to investment and export markets in the member states of the Association of Southeast Asian Nations (ASEAN), as well as partners with demand for diverse goods. At the same time, it could make imports of technology and machinery cheaper, thus creating opportunities for Vietnam to join the region's production value chain, Duong said. The pact could also help Vietnam reduce transaction fees, create a friendly business environment and enhance its role in resolving trade and investment disputes, he said. Sectors such as seafood, agriculture, construction, garments and textiles, as well as leather footwear, would have additional opportunities for growth, he added. For example, the country would have major opportunities in distribution and in the hotel and restaurant business in the countries in RCEP, especially in Japan and the ASEAN states, besides opportunities in providing services to Australia, Duong said. However, Vietnam would also face challenges in banking services as the RCEP countries in the region, such as Singapore, Japan, the RoK and Australia, have highly developed banking sectors. Vo Tri Thanh, CIEM's deputy director, said RCEP and TPP would not clash but support each other to help Vietnam integrate further into the world economy. "The two pacts have a common feature of commitment to freedom in trading goods and services, and in investment. Talks on both RCEP and TPP are expected to end this year," Thanh said.
In RCEP, ASEAN is looking for cooperation and equal development. The TPP is a free trade agreement aimed at resolving the issues of labour standards, a competitive environment, State-owned enterprises, State purchases and intellectual property. "Some people thought that TPP and RCEP will compete with each other and overlap. However, in my view, the two pacts could supplement each other," Thanh added. Vietnam would have more benefits than challenges by joining RCEP, he noted. Earlier, an ANZ Bank report said that Vietnam and Thailand would be the countries to benefit the most from RCEP. Vietnam's GDP is expected to grow 8 percent in five years after signing the RCEP, while Thailand's GDP is expected to grow 13 percent. The RCEP states will account for 85 percent of the world FDI flow. Thanh suggested that Vietnam should take advantage of RCEP by improving the competitiveness of domestically produced items and focusing on some industries that could benefit from the deal.
SOURCE: The Saigon GP Daily
The Foreign direct investment poured into the textile and garment sector has increased sharply in Vietnam anticipation of Trans Pacific Partnership (TPP) in the first six months of this year. At least $1.12 billion out of the $5.58 billion worth of capital registered went into the sector. One of the three largest projects was capitalized at $660 million, the highest ever in the field. Analysts warn that this will put pressure on Vietnamese businesses and the entire economy. The $660 million project, in a yarn factory in Dong Nai province, was registered by an investor from Turkey. The others include a $300 million project registered by a British investor in HCM City and a $160 million project in Tay Ninh province by a Hong Kong investor.
Prior to that, Vietnam licensed three large projects to investors from China, including $400 million textile and garment complex in Nam Dinh province, $300 million in Quang Ninh province and $200 million in Hai Duong. Smaller projects are capitalized at tens of millions of dollars. Forever Glorious, a subsidiary of Sheico Group from Taiwan, has committed to invest $50 million in a project to make underwater sportswear. Gain Lucky Limited belonging to Shenzhou International plans to invest $140 million to develop a fashion design and high-end product development center.
According to the Vietnam Textile and Apparel Association (Vinatas), on Vietnam officially joining the TPP, it would enjoy a zero percent tariff when exporting textile and garment to the US instead of 17-30 percent tariff. But the biggest challenge faced by the Vietnamese textile and garment now is the heavy reliance on imported materials. It needs to import 50 percent of input materials to make finished products, mostly from China. Meanwhile, only the products using input materials from TPP member countries will be able to enjoy the preferential tariff of zero percent. Vinatex is the only Vietnamese textile and garment company which has input material factories. The corporation has developed 51 fiber production, weaving, dyeing and garment projects since 2013 with total investment capital of VND8 trillion. However, the projects would only be able to satisfy 50-60 percent of the group’s demand.
SOURCE: Yarns&Fibers
The European Union and the United States, two of the biggest economies in the world are going far beyond what has been done previously in any agreement except the EU’s single market. They are in the process of negotiating the Trans-Atlantic Trade and Investment Partnership (TTIP), a key bilateral trade agreement intended to further integrate the two economies. The two economic entities, which together account for around a third of world trade and half of world GDP, are already deeply integrated. Though in the long term it will have wider implications for the global macroeconomic dynamics, the agreement concerns bilateral trade between the European Union and the United States. This bilateral trade, which in 2011 accounted for 4.4 per cent of global trade, has declined sharply in this century. Since over half of all goods traded between the European Union and the United States are traded freely with no tariffs, the agreement is likely to have little to no direct impact for many sectors of the economy.
However, the tariffs are higher for some traditional manufacturers, such as clothing. For example, the average tariff on clothing in 2015 amounts to 11.5 per cent in the EU and 11.6 in the US. In addition, the clothing and textile market is one that continues to have minor divergences in technical standards. According to the research carried out by Centre d'Études Prospectives et d'Informations Internationales (CEPII) shows that, on current trends, the European Union and the United States would jointly account for only 22 percent of world trade in 2035, compared to 37 percent for the ASEAN+6 block of countries.
According to Euratex, a European textile and apparel industry trade body, the EU imposes maximum duties of 12% for American made bed linen. Data from the US Association of Importers of Textiles and Apparel, indicates that only 3% of garment imports currently come from Europe. Trade between ASEAN+6 members (17 per cent) would dwarf that between transatlantic partners (2.4 percent). This is perhaps not surprising, given that most apparel currently sold in the United States is manufactured in Asian countries, such as Vietnam or China. If the Trans-Atlantic Trade and Investment Partnership is successful it may go towards creating opportunities for the textile and clothing sector with not just reduced tariffs benefits but a potential harmonization of standards, such as labelling and safety tests. The agreement may bring relaxation of other regulatory burdens. One of the most difficult issues on textiles and apparel in TTIP will be the rule of origin, given that the U.S. and EU have taken vastly different approaches on this issue in their existing.
SOURCE: Yarns&Fibers
