NATIONAL

• Govt to seek cabinet’s approval for amendments to GST Bill
• India might not ratify WTO trade facilitation pact
• Global crude oil price of Indian Basket was US$ 52.93 per bbl on 28.07.2015

INTERNATIONAL

• Thailand, Vietnam to enhance cooperation in textile sector
• Intertek Expands Southeast Asia Footprint Into Myanmar With Garment Inspection Services
• Ethiopia: Textiles Exports Fail GTP (Growth & Transformation Plan), Targets By More Than Half
• Brent crude slips into bear territory over rising Iraq exports, growing supply glut

Textile Raw Material Price 2015-07-28

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.16327 USD dtd. 28/07/2015)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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Govt to seek cabinet’s approval for amendments to GST Bill

The government is ready with amendments to the Constitution (122nd Amendment) Bill on Goods and Service Tax (GST) incorporating the suggestions of a Rajya Sabha select panel, which endorsed most of the clauses in the Bill verbatim and a few with some changes. Sources said the finance ministry will soon seek cabinet approval for making amendments to the Bill, which was passed in the Lok Sabha during the Budget session and is pending in the Rajya Sabha. The government would propose a few amendments and try to get the Bill passed in the Rajya Sabha as soon as it starts functioning without disruption from the opposition, sources said. The government is in agreement with the select panel’s recommendations about giving full five-year compensation to states for any revenue loss due to introduction of GST as well as to exempt stock transfers within group companies from the 1% origin based tax on inter-state supplies.

The Rajya Sabha panel turned down a series of substantive demands made by the Congress party and Jayalalithaa’s AIADMK. The Congress’ demand for dropping the 1% tax on inter-state supply of items, which would benefit the exporting state, was not accepted. Instead, the panel recommended a practical solution to reduce its cascading impact by excluding stock transfers within a company from this levy. According to industry sources, about 80-85% of any large factory’s output goes out of the state where it is located and a bulk of this is stock transfers. The Congress party’s demand for a constitutional provision mandating the GST council to bring petroleum products within the GST in five years of the new regime’s beginning, as well as the AIADMK demand for their constitutional exclusion from the GST, were not accepted. The panel also did not propose any change in the voting pattern of the GST council, a decision-making body to be set up, as demanded by the Congress and AIADMK. Also, calls from parties for extra taxation rights for states on tobacco as well as the Congress’ demand for a dispute-settlement body were not accepted.

SOURCE: The Financial Express

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India might not ratify WTO trade facilitation pact

In a repeat of events a year ago, India is unlikely to ratify the World Trade Organization (WTO)'s trade facilitation agreement (TFA), even as it has decided to seek a permanent solution on the food stockholding issue at the coming 10th ministerial meeting in Nairobi, Kenya, in December. The government is believed to be again taking a tough stance, as it did last year when it decided to veto the protocol of amendment of the TFA that made it a legal agreement under WTO. It is learnt the government has decided to not ratify the pact, as there has been no progress in negotiations on a permanent solution on food security for stockholding purposes. Besides, India was also miffed with the fact that there had been no positive discussion on other issues of the Doha round, the most important being a 'substantial reduction' in the overall trade distorting subsidies (OTDS) of developed countries in their farm sector, officials told Business Standard.

At a meeting of the WTO's General Council on Tuesday, director general Roberto Azevêdo said it remains very unlikely that a clearly defined work programme on the remaining Doha issues could be agreed by the mandated deadline of July 31. However, he said that this did not in any way mean that members could not reach a successful outcome at the 10th ministerial conference in Nairobi this December. Legally, India cannot be taken to the WTO dispute settlement body for not ratifying the TFA. However, rich WTO members such as the US, the European Union, Canada and Australia want India to implement the TFA, which will boost seamless movement of goods, due to the sheer size of its market. Once ratified, the TFA will come into effect. However, according to WTO norms, for the TFA to come into force, two-thirds of the entire WTO membership must ratify the agreement by submitting its 'instrument of acceptance' to the multilateral trade body. So far nine countries have ratified the deal. China and EU is expected to do it soon. The TFA has to be ratified by the 10th ministerial. The TFA seeks to relax customs rules, allowing seamless flow of goods across international borders. Once implemented, it is expected to infuse $1 trillion into the global economy and add 21 million jobs, according to Organisation for Economic Cooperation and Development estimates.

On a permanent solution for the food stockpiling programme, India believes developed countries aren't working cohesively towards changing the reference price from 1986-88 for calculating farm subsidies. The deadline to find a permanent solution, which entails offering those subsidies to farmers who are otherwise prohibited under global trading rules, is December 31. If this deadline isn't met, countries that run food stockpiling programmes can continue using the 'peace clause', which allows them to keep giving subsidies to poor and marginal farmers. India follows the mechanism of minimum support price (MSP). Meanwhile, the US and a couple of other developed countries have raised questions with the ministry of commerce and industry on the methodology followed and the quantum of MSP given to farmers. Additionally, India wants a clear work programme on all the pending issues of the Doha round, which started in 2001, such as non-agriculture market access and a reduction in OTDS at the ministerial meeting, the WTO's highest decision-making body, scheduled for December 15-18. In a written reply to the Rajya Sabha last week, Commerce and Industry Minister Nirmala Sitharaman said, "India is working with WTO members to ensure a permanent solution at the earliest."

SOURCE: The Business Standard

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Global crude oil price of Indian Basket was US$ 52.93 per bbl on 28.07.2015

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$ 52.93 per barrel (bbl) on 28.07.2015. This was lower than the price of US$ 53.71 per bbl on previous publishing day of 27.07.2015.

In rupee terms, the price of Indian Basket decreased to Rs 3389.11 per bbl on 28.07.2015 as compared to Rs 3437.44 per bbl on 27.07.2015. Rupee closed weaker at Rs 64.03 per US$ on 28.07.2015 as against Rs 64.00 per US$ on 27.07.2015. The table below gives details in this regard:

SOURCE: PIB

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Thailand, Vietnam to enhance cooperation in textile sector

During their recent joint Cabinet meeting in Bangkok, Vietnamese Prime Minister Nguyen Tan Dung and his Thai counterpart Prayut Chan-o-cha agreed to intensify cooperation between the two countries in various sectors, including the textile sector. At the meeting, Dung urged Thailand to increase its investments in Vietnam, especially in areas of mutual interest including in the textile-garment and footwear sector. Both nations agreed to increase their bilateral trade to $20 billion by 2020. Thailand is already among the top 10 foreign direct investors in Vietnam. It is also the leading trade partner of Vietnam among the ASEAN members. The two sides also agreed to expand people-to-people exchanges through the Vietnam-Thailand and Thailand-Vietnam friendship associations. Both leaders pledged to continue working closely with other Asean nations to support the formation of the Asean Economic Community later this year. Speaking separately at the Vietnam-Thailand business forum, Dung said Vietnam highly values Thai funded projects and assured investors that his country would create all favourable conditions for them to establish and develop stable businesses.

SOURCE: Fibre2fashion

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Intertek Expands Southeast Asia Footprint Into Myanmar With Garment Inspection Services

Intertek, a leading provider of quality solutions to industries worldwide, has expanded its Southeast Asia presence into Myanmar with the launch of its Garment Inspection Services in the country. Intertek’s expansion into Myanmar supplements its textile and apparel testing and inspection services throughout Southeast Asia, in countries including Cambodia, Indonesia, the Philippines, Singapore, Thailand and Vietnam. “In 2014, Myanmar saw substantial growth in its apparel industry, with a new factory opening every week. As a result, there is a critical need for inspection services to support the industry as it continues on this upward trajectory,” said Calvin Yam, Senior Vice President for Global Softlines at Intertek. “As more North American and European retailers and brands commit to sourcing from Myanmar, the country’s apparel industry is primed to continue its rapid growth, making it a key area for Intertek expansion as well.” Panyos Tohtong, Intertek Country Managing Director for Thailand added, "Myanmar is truly a new frontier for industrial growth in Asia and the world. Intertek offers perfect combination of geographical location and expertise to support this rapidly growing client base from Thailand."

According to the Myanmar Garment Manufacturers Association, the country’s garment industry exports doubled in only three years, reaching $1.5 billion USD in 2014. Today, the country’s industry employs 200,000 workers across 275 apparel factories, making it the largest industrial sector in Myanmar. With around 1,200 highly specialized inspectors around the globe, Intertek offers a full range of garment inspection services across the supply chain, from pre-inspection of raw materials and fabrics at the factories, to during production inspections of finished and semi-finished goods to identify faults and defects and finally a pre-shipment final random inspection to ensure the required product specifications are met. Additionally, Intertek works with fabric and apparel retailers, brands and manufacturers to help ensure their products comply with the relevant standards and regulations throughout the production process.

SOURCE: The Textile World

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Ethiopia: Textiles Exports Fail GTP (Growth & Transformation Plan), Targets By More Than Half

The Ethiopian Textile Industry Development Institute (ETIDI) has had an unsuccessful five-year period with its first Growth & Transformation Plan (GTP I) export and production targets failing by more than half. It planned to export a billion dollars worth of products but managed only 456 million dollars. It also targeted 2.5 billion dollars in gross value of products (GVP) but achieved only 1.2 billion dollars. The major challenge is the low production of cotton, according to the Institute. Ethiopia cultivated cotton on 75,000ha of land in 2010/11. It planned to cultivate 265,000ha by the end of 2014/15, but it managed only 125,000ha. The productivity of cotton per hectare reached 1.7tn, growing from the initial 1.5tn in 2010/11. However, the productivity target was to reach 2.5tn per hectare. Because of the shortage of cotton in the country, the demand and the supply could not be matched with 32pc gap seen in the first GTP period.

Local production of cotton in the year 2009/10 was 2,500tn, which was equal to the demand of the textile factories and the production had increased to 52,700tn, while the demand was at 33,300tn, creating surplus in the market in 2010/11. The following year, the production surged to 79,500tn while the demand stood at 39,000tn. In 2012/13 production fell by more than half to 45,200tn, while the demand increased to 65,100tn. The trend continued the following year, with production falling to 33,500tn, 45pc of the 74,200tn demand by factories. "Although the export target was not achieved in the GTP period, there were good sides of the industry that we consider as our successes," said Bantihun Gessese, Communications Director of ETIDI. The export revenue of 100 million dollars from the 23.2 million dollars in 2010/11 and the skill transfer to local workers by working for such employers as Ayka Addis are considered to be "big successes", according to Bantihun. Lack of diversification in products, the quality and limited productivity affected the export performance, according to the report by the Institute. The average productivity capacity usage of the textile factories in the country was 40pc in 2010/11 when the GTP started and the plan was to reach 90pc by the end of the GTP. But it only grew to 60.5pc by 2013/14 and 67pc by 2014/15. Garment factories capacity utilisation stands at 54pc.

A report from the Ministry of Industry (MoI), which reviewed the GTP performance up to the 11th month of the last year of the GTP, attributed the problem to frequent power blackouts. In the fiscal year, the electric cut in the textile industries totalled 945 hours with Ayka Addis leading with the longest cut for 253 hours. Bedesta Industries follows with 140 hours, Adama spinning factory with 106 hours. In addition to the electric power problems, some foreign companies, such as Elsi Addis, E-tour and MNS, were penalised for selling their products to the local markets. The penalty included, according to Bantihun, revoking their duty free incentive and imposing income tax on their foreign employees. The GTP's target of getting 48 new investments in the textile sector and creating 40,000 jobs also had modest success of 27 investments with 27, 806 jobs. The second GTP also plans to create 99,653 jobs in the textile industry with exports reaching 2.5 billion dollars, with production growing to eight billion dollars by 2019/20. "The plan is not ambitious; even achieving this will be very easy as there are nine companies in the pipeline that will start production this year," said Bantihun.

SOURCE: The All Africa

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Brent crude slips into bear territory over rising Iraq exports, growing supply glut

Brent Oil relapsed into a bear market as rising Iraqi exports and a rebound in US drilling signalled that the global supply glut will grow. The European benchmark crude fell 2.1 per cent to a four-month low. It has lost over 20 per cent from this year's highest close, meeting the common definition of a bear market. Iraq's oil exports from the South rose to an all-time high this month. The number of rigs seeking oil rose by 21 to 659, the third weekly gain this month, Baker Hughes data show. Oil's rebound from a six-year low has faltered amid signs that a surplus will persist as the US pumps near the fastest rate in three decades and leading members of OPEC pump at record levels. China's stock index fell the most since 2007, bolstering concern that raw material demand will slip in the world's second-biggest economy.

SOURCE: The Economic Times

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