The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 6 AUGUST, 2015

NATIONAL

 

INTERNATIONAL

Textile Raw Material Price 2015-08-05

Item

Price

Unit

Fluctuation

PSF

1122.24

USD/Ton

-0.29%

VSF

2125.51

USD/Ton

0%

ASF

2471.99

USD/Ton

0%

Polyester POY

1069.19

USD/Ton

-0.75%

Nylon FDY

2813.65

USD/Ton

0%

40D Spandex

5948.86

USD/Ton

0%

Nylon DTY

5940.82

USD/Ton

0%

Viscose Long Filament

1350.55

USD/Ton

-0.59%

Polyester DTY

2620.71

USD/Ton

0%

Nylon POY

2664.93

USD/Ton

0%

Acrylic Top 3D

1294.28

USD/Ton

-0.62%

Polyester FDY

3022.66

USD/Ton

0%

30S Spun Rayon Yarn

2717.18

USD/Ton

0%

32S Polyester Yarn

1800.74

USD/Ton

0%

45S T/C Yarn

2877.96

USD/Ton

0%

45S Polyester Yarn

2877.96

USD/Ton

0.56%

T/C Yarn 65/35 32S

2620.71

USD/Ton

0%

40S Rayon Yarn

1977.59

USD/Ton

0%

T/R Yarn 65/35 32S

2427.78

USD/Ton

0%

10S Denim Fabric

1.13

USD/Meter

0%

32S Twill Fabric

0.95

USD/Meter

0%

40S Combed Poplin

1.05

USD/Meter

0%

30S Rayon Fabric

0.76

USD/Meter

0%

45S T/C Fabric

0.77

USD/Meter

0%

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.16078 USD dtd. 5/08/2015)

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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PM Narendra Modi to unveil 'India Handloom' brand on August 7

Prime Minister Narendra Modi will launch the first National Handloom Day on August 7 at an event in Chennai and will also unveil the 'India Handloom' brand for better market positioning of quality products. "The date August 7 has been chosen due to its special significance in India's history. It was on this day that the Swadeshi Movement was launched in 1905. The movement involved revival of domestic products and production processes. "The observance of National Handloom Day and honouring of handloom weavers will not only provide an impetus to the handloom industry of India but would also serve to promote handloom as a genuine international product of good quality," the Textiles Ministry said. The programme will be held in the Centenary hall of Madras University, it said. The Prime Minister will also launch India Handloom Brand. An exhibition showcasing master creations of the awardees is also being inaugurated on the occasion in the adjacent senate building of Madras University. Besides, Modi will confer the Sant Kabir awards and National Awards for the years 2012, 2013 and 2014 to distinguished handloom personalities. The Handloom Day will be celebrated all over the country in cooperation with the state governments.

SOURCE: The Economic Times

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Textile mills to meet and discuss industry crisis

To discuss various problems being faced by spinning sector and decide on future course of action to mitigate the crisis, Southern India Mills' Association (SIMA), apex body of spinners in this region, has convened a meeting of its member mills here on 8th August 2015. The predominantly cotton based textile industry has been facing several challenges in the recent period owing to higher tariff rates imposed on Indian textile products in all the major international markets when compared to the competing Nations, Sima Chairman T Rajkumar said. Undue delay in disbursing the Technology Upgradation Fund scheme subsidies, volatility and uncertainty in cotton prices, sudden glut in the synthetic yarn market, closure of dyeing units in Northern States resulting in accumulation of fabric stock in different power loom clusters added to the crisis of the sector, he claimed. At present, the spinning sector is having 10 per cent excess capacity, due to poor demand for yarn exports though there are improvements in the recent months resulting in accumulation of yarn stock and liquidity problems, Rajkumar said. Considering the situation, the association has convened the meeting of the Managing Directors of the member mills to discuss the issues and arrive at a solution to tide over the crises, Rajkumar said.

SOURCE: The Economic Times

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Cambridge Technology Enterprises to provide IT services to Indian textile companies

Cambridge Technology Enterprises (CTE), an IT services leader focused on the convergence of big data and cloud, has entered into a partnership with two Indian companies leading the textile machinery and shipping industries. CTE has laid out Enterprise Resource Planning (ERP) applications development and enhancement contracts with the textiles company. As a platinum member in the Oracle Partner Network (OPN), CTE will leverage Oracle solutions to provide the customer with custom ERP solutions, enhancing their applications and transforming them from 2-tier to web-tier. CTE is one of the preferred vendors for Oracle in the US and offers the most comprehensive suite of Oracle based services, especially in the mid-west region of the US. CTE's multi-year engagement with the Indian shipping leader entails database & middleware support and maintenance on Oracle platforms. Such engagements assist companies in reducing their operational costs and the company can focus itself on its core expertise rather than technology, according to a press release.

Aashish Kalra, chairman of Cambridge Technology Enterprises said, “Our partnership with Oracle is an important element of our business plan along with our focus on the convergence of big data and cloud. As an Oracle platinum partner, we have been working to expand our industry coverage; we are also delivering specialized solutions to provide the same level of expertise in India, as we provide to our global clients.” Recognised as a thought leader and innovator of enterprise solutions, CTE focuses on cloud application development and management, data warehousing, business intelligence (BI), and analytics on the cloud.

SOURCE: Fibre2fashion

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Raymond to cut out Makers brand

Textile major Raymond is planning to put its mass market brand Makers on the back burner. In a bid to trim its losses over the past few quarters, the company has decided to let go of Makers in favour of premium offerings in its portfolio to drive margins and profitability. Sanjay Behl, CEO, Lifestyle, Raymond, said: “We have decided to focus on the higher end of the fabric business to derive better realisations and margins to focus on profitability. There would be de-focus on brands like Makers, which is under Rs. 300 per metre.”

Launched in 2011, Makers was targeted at smaller towns and rural areas. There were also plans to make it a pan India offering, pitted against the mass textile fabrics from players like Siyaram and Grasim. While Makers suiting material were priced at Rs. 250 per metre and above, the entry price for suiting was Rs. 149 per metre. Analysts say Raymond introduced the brand at a time when there was slow-off take in its premium portfolio. During the first quarter, Raymond managed to reduce its losses by 58 per cent at Rs. 14 crore. “We now want to drive maximum profitability at the cost of volumes by having higher margins,” said Behl. The company is looking to reap the benefits of its heavy investments in store renovations and advertising (it was associate sponsor in the IPL). “Our textiles growth was at 6 per cent while apparels grew at 10 per cent. We expect a 7-10 per cent increase in consumer spending as a result of our ad expenditure,” said Behl. This quarter, Raymond increased its advertising budget by Rs. 17 crore compared to the previous year period.

High-margin segments

It high-margin segments — like the ‘Made to Measure’ personalised clothing stores — which witnessed 48 per cent growth are also expected to shore up the company’s bottomline. “We see an effective opportunity in the top eight cities with our Made to Measure stores and have been expanding aggressively to include made-to-fit clothing, leather shoes and denim in its portfolio,” said Behl. Raymond has also entered the e-commerce space under Made to Measure. “Consumers can now book an appointment on the net for our concierge services, which will be delivered at their doorstep,” added Behl.

SOURCE: The Hindu Business Line

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Narendra Modi’s ‘port-led’ export drive leaves India’s hinterland stranded

Mumbai’s commercial seaport, which handles over half the container traffic through India’s major ports, is doubling capacity as Prime Minister Narendra Modi seeks to build an export powerhouse. The expansion, due to be completed in seven years, can’t come quickly enough for Avinash Gupta, whose family business supplies steel forgings to Europe and the United States from the industrial hub of Ludhiana in northern India. Yet the greatest challenge his $30 million business faces is getting his production to port. Gupta pays nearly $800 to a state-run rail cargo company to transport a 20-foot container to Mumbai – as much as 40 times the cost of shipping it onward to the Gulf commercial hub of Dubai. It is exporters like Gupta that Modi had in mind when he launched his ‘Make in India’ drive last September, laying out a model of “port-led” development that would support industrial growth and help create manufacturing jobs.

Modi’s vision includes creating a tax union to slash costs and transport times, and a network of industrial corridors connecting the interior to ports. But political opposition to both the new tax and a law making it easier to buy land for development mean those may be years away. For now, the inefficiencies are exacerbating the pain of weak global demand and a 15 percent drop in exports between December and June from a year ago. Exporting a standard container requires seven documents, takes 17 days and costs $1,332 in India, according to the World Bank’s Doing Business 2015 report. India ranked 126th of 189 economies on the ease of trading across borders, well behind Mexico (44th) and China (98th). All of India’s ports together handle less trade than Shanghai alone.

RISING COSTS

Gupta runs one of the thousands of small companies that contribute about half of India’s $300 billion in annual goods exports. Despite falling global prices, his costs have gone up, and his overseas sales are down more than 60 percent. While shipping lines have slashed freight rates in search of business, state-run Container Corp of India actually raised rail rates by up to 15 percent in April – even though its fuel costs have fallen. “The hike in freight costs has made our life difficult. Since exports are already down 60-70 percent in the last three months, we will soon have to cut production,” said Gupta.

Unless Modi’s government makes faster progress on stalled rail and road corridors, like one that would link Mumbai port to New Delhi and lower costs, India’s exporters will find it hard to compete on price and speed during the global trade downturn. Nowhere is this more evident than at state-owned Jawaharlal Nehru Port Trust (JNPT), which last year signed a $1.26 billion deal with Singapore’s PSA International to build a fourth terminal in Mumbai on reclaimed land. Modi has also acted to simplify export procedures, launching electronic clearance by customs, trade and port officials. “Ports are the gateway to trade growth,” said Neeraj Bansal, the head of JNPT. “The government is expanding port capacity and building railway freight corridors and roads to reduce logistics costs for exporters. Trade is dynamic, we cannot wait till the end of global recession.”

The two-stage expansion by PSA International would boost capacity to around 11 million twenty-foot equivalent units (TEU). That would speed turnaround times and cut costs – it can take up to 12 hours for a truck to enter the port due to narrow approach roads, limited parking and customs delays. More than 10,000 trucks enter every day. Imports, too, are hobbled by the poor infrastructure, with several container shippers imposing congestion surcharges of up to $200 per TEU to cover the cost of delays in unloading. “Congestion at major ports is predominantly caused by an inability to clear cargo from the quayside, and that manifests itself mostly on the bulk handling terminals on the east coast,” said Ian Claxton, managing director of Thoresen Shipping.

PRIVATE PORTS ARE FASTER

Analysts estimate it takes up to four times as long to fill or unload a cargo ship at JNPT than at private rival the Adani Port and Special Economic Zone Ltd up the coast in Gujarat, Modi’s home state. “Land connectivity plays a major role,” said Deven Choksey, managing director at KR Choksey Securities, a brokerage, adding that even after the expansion “the inherent disadvantages of JNPT will continue.” India added 71 TEU of capacity at major ports in the fiscal year to March 31. Modi wants to double total capacity to 1,600 million tonnes at major ports over the next five years. But businesses hit by the worst slide in exports since the global crisis of 2008 say Modi’s approach to easing rules for trade and expanding state-run ports fails adequately to tackle competitive barriers. “Even a delay of a few hours results in missing the vessel and sometimes cancellation of an order,” said Khalid Khan, a Mumbai-based exporter of engineering goods and regional president of the Federation of Indian Export Organisations.

SOURCE: The Financial Express

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GST could push GDP by 1-2 per cent, regret delay in rollout: Arun Jaitley

Citing slowdown in China, Finance Minister Arun Jaitley today said India has a chance to become a global manufacturing hub but regretted that Congress was not allowing GST rollout which alone could push GDP by 1 to 2 per cent. The minister said in Lok Sabha that India can see 8 per cent growth as the government is taking a host of steps to boost investment besides reviving stalled projects and pumping in more funds into PSU banks. In addition, “rain Gods have been kinder this year which is expected result in a good harvest,” he said. Jaitley, who was replying to a debate on Supplementary Demand for Grants amid a boycott by Congress and a number of other opposition parties, said the government will infuse Rs 70,000 crore in PSU banks in the four years and they will raise another Rs 1.10 lakh crore from the market, making them healthier to finance economic growth. “If my friends (Congress), who are not present in House today, allow implementation of GST, which was introduced by Congress, you will have an uniform tax rate, one market and it is capable of boosting economy by 1-2 per cent. “In adverse situation we can touch 8 per cent if banks are recapitalised, GST implemented, stalled projects revived and infrastructure spending improves,” he said.The GST bill, which proposes to usher in a uniform indirect taxation system throughout the country, is stuck in Rajya Sabha which is unable to function because of opposition protests over various issues.

Turning to China, which has been the world’s fastest growing economy, Jaitley said it has slowed down and its wage bills have gone up, pushing up the cost of its products. In this context, Jaitley said, “It is for us to become a manufacturing hub. It is then the Indian economy will achieve full potential”. The Finance Minister said India, which is targeting to grow by over 8 per cent in a sustained manner, is a “bright spot” among the global economies. India grew at 7.3 per cent last year and RBI has projected this year’s growth to be 7.6 per cent. “In this global environment where global winds are not favourable .. In past few years, we have come down to reasonably bottom pit… Under Prime Minister Narendra Modi’s leadership, we are reviving the economy and it is responsibility of all of us to cooperate to enhance growth rate,” Jaitley said. He said global economies are facing challenges and even for a high growth economy like China, the new normal is 7 per cent or below.

SOURCE: The Financial Express

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GST: The 1% conundrum for India Inc

For Corporate India, the Rajya Sabha’s Select Panel report on the GST Bill (Constitutional amendment) has come as a mixed bag. The Panel has provided only partial relief on the 1 per cent additional tax, which India Inc considered as “retrograde” and preferred not to be introduced at all. Though corporate entities are not worse off after the Select Panel report, there is no big relief on the 1 per cent additional tax, say experts. This is because the non-VATable 1 per cent tax is proposed to be applied only on inter-State sales and not on all inter-State supplies, including branch transfers (as proposed in the Bill passed by the Lok Sabha). Rather than recommending its (1 per cent additional tax) removal from the GST Bill, the Panel has instead pitched for a definition of ‘supply’ that would only bring inter-State sales — and not branch transfers — to the 1 per cent additional tax levy, they said.

Cascading effect

The Select Panel has highlighted that the 1 per cent additional tax is likely to have a cascading effect. It has “strongly recommended” that ‘supply’ be defined in such a manner that only inter-State sales are subjected to this additional tax. For Corporate India, this is only a partial relief as it was totally opposed to the introduction of the 1 per cent additional tax. India Inc says this tax will have a cascading effect given that the current GST framework does not provide for setting it off with CGST, SGST or even IGST. In the absence of VATability (set off), the 1 per cent additional tax would end up adding to the cost of the product on every inter-State sale, say industry representatives. Finished goods manufacturers who source raw materials/inputs from other States could face a cost push. In such a situation, the much talked about GST regime benefits of providing seamless credit and reduced transaction costs will not materialise, they pointed out. “This (not being able to set-off) is only going to add to the cost of the product during inter-State sales. “Any subsequent sale into other States would only add to the cost of the product,” said a representative from the FMCG sector. It is quite common in the FMCG industry for both inputs and finished products to move through multiple States (as branch transfers as well as sale transactions) before reaching the end customer.

Benefits only on paper?

What has irked India Inc is that the GST benefits of seamless credit and reduced transaction costs are not being realised. These benefits will not be achieved if the 1 per cent additional tax were to be introduced without providing a set-off, it was pointed out. R Muralidharan, Senior Director, Deloitte in India, said that the larger issue to be considered was whether India should have the 1 per cent origin-based tax at all under a consumption-based Goods and Services Tax (GST) regime. Many tax experts also question the need to have the 1 per cent additional tax when the Centre has agreed to compensate the States for revenue loss from GST for five years.

SOURCE: The Hindu Business Line

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'Disappointed' India defers EU FTA talks

A firm India on Wednesday put off its negotiations for a free trade agreement (FTA) with the European Union (EU), scheduled for this month, following an import ban imposed by the latter on 700 drugs tested by Hyderabad-based GVK Biosciences. “This decision has been taken as the Government of India is disappointed and concerned over the action of the EU in imposing a legally binding ban on the sale of around 700 pharma products clinically tested by GVK Biosciences,” read an official communiqué from the commerce & industry ministry. Chief trade negotiators from both sides were expected to meet here on August 28 to resume the talks for the Broad-based Trade and Investment Agreement (BTIA), stalled since 2013. The statement also said the government had been trying to pursue the matter across various regulatory bodies in the European Union (EU), and added the pharmaceutical industry was one of the country’s flagship sectors with a commendable reputation for sound research and safety protocols over the years. “It is pertinent to mention that most of these drugs are already in the EU market for many years, without any adverse pharmaco-vigilance report from any member state,” the statement said. Therefore, the ministry added, the government would exercise all options on the matter. When contacted, the delegation of the European Union in New Delhi said it had not received any formal communication on this matter from the commerce & industry ministry. “As of now, we have not received any formal communication from the government or from the commerce ministry. For the time being, we have no further comments. The EU remains committed to continuing working towards conclusion of an agreement between India and the EU that will be acceptable to both sides,” it said.

STICKY TALKS

  • India has put off negotiation, following a ban imposed by the EU on sale of 700 drugs tested by GVK Biosciences
  • The government has said it is disappointed and concerned over the EU’s action
  • India has reiterated that these drugs have been in use in the EU for many years and have had no adverse impact
  • The government has said it will exercise all options
  • Chief trade negotiators from the two sides were expected to meet on August 20 in Delhi
  • The talks that started in 2007 have missed several deadlines to reach an agreement

Apparently, it was India that had nudged the EU to complete the pending deal. The meeting of negotiators from both sides was expected to revive the talks, according to a top official in the commerce & industry ministry. The official also said, for talks to proceed, India was even ready to take on from where the previous government had left. Incidentally, EU Trade Commissioner Cecilia Malmstrom had on Tuesday said the meeting of the chief negotiators would focus on taking stock of negotiations and not resumption of the dialogue. However, India had always maintained the August 28 talks would restart the stalled process. Negotiations for the FTA have failed to reach an agreement over issues pertaining to lowering of tariff on Indian automobiles and wines & spirits. India, on the other hand, is unhappy with the offer it got on one of its main demands — increasing the EU’s immigration quota. Also, the EU has not given proper assurance to India on its demand to recognise the country as a ‘data secure’ nation. The EU-wide ban on over 700 drugs was imposed last month and accepted by the European Medicines Agency (EMA). The ban is expected to be effective from August 21. The medicines on the list of EMA will lose their validity for use in the EU from that date and will no longer be distributed or sold by pharmaceutical companies, wholesale dealers, drug stores and other outlets, according to German drug regulator Federal Institute for Medicines and Medical Products.

SOURCE: The Business Standard

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India's exports to Greece fall 15% on debt crisis: Government

The financial crisis in Greece has led to a 15.45 per cent fall in India's exports to the European nation during the first quarter of this fiscal, Parliament was informed today.  Total bilateral trade between both the countries during this period fell 8.33 per cent to $124.11 million, Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Rajya Sabha. "The Greek Debt crisis has impacted India's bilateral trade with Greece," she said. She further said that no trickle-down effect of the crisis in India is anticipated at this stage; however, institutional mechanism is in place with Greece where steps can be discussed. The bilateral trade between both the countries was $488.59 million in 2014-15, an increase of about 10 per cent over the previous fiscal. Replying to a separate question, she said exports to countries including Afghanistan, Pakistan, Indonesia, and Singapore are showing declining trend in the last three years. "Exports to some Asian countries during the last three years have declined. The sluggishness in export depends on several factors including economic scenario in the importing countries, world economic recession, currency fluctuation and fluctuation of oil/petroleum prices," she said.

SOURCE: The Economic Times

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India will be third largest economy: G P Hinduja

India is on its way to become the world’s third largest economy, leading NRI industrialist G P Hinduja said today, crediting the growth momentum to a number of initiatives taken by Prime Minister Narendra Modi. “India is already fourth-largest in public-private partnerships. If things go the way Modi is planning, India will be the third largest economy,” he told BBC in an interview. The London-based co-chairman of the Hinduja Group attributed the growth momentum in the economy to a number of steps taken by Prime Minister Modi. “He (Modi) has been brilliant in building up international relationships. He has lot of energy. Every day he announces new concepts and ideas. On the business angle, what we need for growth is tax, labour, land, power and infrastructure. “On all these five he has taken initiatives to move forward. Unfortunately, because of the old legacy and culture, it’s not that easy. He has to follow democracy and that takes time,” he said.

In reference to neighbouring China’s growth trajectory, he said: “I am an entrepreneur. I have businesses in India and China. I don’t compare the two.” “The Chinese economy grew very fast because it was not going on democratic basis. It is difficult for them to sustain that growth,” Hinduja said, refering to the growth prospects in the world’s second biggest economy. Closer to home, the industrialist called for Britain to hold a referendum on its membership of the European Union “as soon as possible”. “Uncertainties must be removed. In any business, common sense is the most important factor. I am a firm believer that any successful business needs talent,” he said.

SOURCE: The Financial Express

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Global crude oil price of Indian Basket was US$ 50.03 per bbl on 05.08.2015

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$ 50.03 per barrel (bbl) on 05.08.2015. This was higher than the price of US$ 49.97 per bbl on previous publishing day of 04.08.2015.

In rupee terms, the price of Indian Basket decreased to Rs 3192.91 per bbl on 05.08.2015 as compared to Rs 3194.58 per bbl on 04.08.2015. Rupee closed stronger at Rs 63.82 per US$ on 05.08.2015 as against Rs 63.93 per US$ on 04.08.2015. The table below gives details in this regard: 

Particulars

Unit

Price on August 05, 2015 (Previous trading day i.e. 04.08.2015)

Pricing Fortnight for 01.08.2015

(July 14 to July 29, 2015)

Crude Oil (Indian Basket)

($/bbl)

50.03            (49.97)

55.15

(Rs/bbl

3192.91        (3194.58)

3511.95

Exchange Rate

(Rs/$)

63.82            (63.93)

63.68

SOURCE: PIB

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‘Nigeria needs N137b to revive textile industry’

The committee on resuscitation of cotton, textile and garments set up by the Federal Ministry of Agriculture and Rural Development (FMARD) yesterday said Nigeria needs N137.2billion to revive the textile industry. The Ministry had on 13th July set up four committees on the operationalisation of Federal Government’s Storage and Agro Processing Facilities; Resuscitation of Cotton, Textile and Garments; Strategic Action Plan for the Development of Grazing Reserves and Stock Routes Nationwide and Revitalisation of Agricultural Extension Services in Nigeria with terms of references. The committee in a document presented to the Permanent Secretary of the Ministry, Sonny Echono, in Abuja, advised the Federal Government to inject N137.2 billion into the sector between next year and 2019. It stated that N100 billion meant for cotton, textile and garment sector was domiciled with the Bank of Industry (BoI), urging the government to make the funds available for use.

Chairman of the committee, Damilola Eniayeju said this would effectively serve as working capital that will assist in the retooling of operational textile mills, as well as resuscitate about 80 closed mills and 23 ginneries that had been shut down across the country. He said: “The proposed N37.2billion should be used to support all sections of the cotton, textile and garments sector.” Eniayeju emphasised the need for improvement of cotton production through financial support for the Institute for Agricultural Research and recommended financial support for the National Biotechnology Development Agency to enable it deploy biotechnologically improved cotton at confined fields at trial levels.

On cotton seed multiplication and seed supply, the committee chair recommended a virile and systematic breeder foundation and certified seed regeneration system, while mandating the National Agricultural seed Council (NASC) to always certify and regulate the cotton seed industry. On seed marketing, it urged the FMARD and Ministry of Trade and Investment (FMITT) to work closely to establish the Cotton Corporation of Nigeria (CCN) to revive Cotton Production and Competitiveness. Also, the committee on Grazing Reserves and Stock Routes Nationwide called for the establishment of a National Programme on Grazing Reserves and Stock Routes development; strengthening of existing conflict resolution and prevention mechanisms.

SOURCE: The Nation

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China says TPP should be transparent, open

China hopes that the Trans-Pacific Partnership (TPP) can be transparent, open and contribute to free trade and investment along with other arrangements in the region.  Shen Danyang, spokesman with the ministry of commerce said China has been closely watching TPP negotiations and assessing the progress, Xinhua reported.  Trade representatives from 12 Pacific Rim countries failed to reach a final deal after a four-day TPP ministerial meeting held in the US that ended on Friday.  The TPP talks involve Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam.  Shen said China noticed the failure and hopes that the TPP will stay transparent and open.  "TPP and other free trade frameworks in the region should promote each other to jointly contribute to the liberalisation and facilitation of trade and investment," he said.  TPP is one of the most important free trade agreements in the Asia-Pacific region. The deal, if reached, will have huge effects on world trade and the investment framework and economic integration in the region.

SOURCE: The Economic Times

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US wants to see India more embedded in global trade structure

The US would like to see India "more deeply embedded" in regional and global trade architecture, a top American diplomat said, stressing that India's membership in Asia-Pacific Economic Cooperation will make the forum a stronger organisation."We would like to see India more deeply embedded in the trade architecture in the region and globally and India's economy is significant enough that it should be part of these different regional and global architectures," said Assistant Secretary of State for South and Central Asian Affairs Nisha Desai Biswal. She underscored that the US and Indian leaders have welcomed India joining the Asia-Pacific Economic Cooperation (APEC) at an "appropriate time" and said India's membership in the forum will make body stronger."We think that India's membership in the APEC will make APEC a stronger organisation since as the third largest economy India has much to contribute," she said during an interactive session held after her talk on India-US relations at the Indian Consulate here yesterday.

India also has to have the "trade posture and policies" that allow the member states of APEC to feel that there is an approach that would benefit the collective, she said. That is something India is working its way towards, she said. On a totalisation pact between India and the US, Biswal informed that the two countries have started conversations on the issue. The totalisation pact would allow citizens from the two countries to repatriate their social security savings when they return to their home country."We have had some initial conversations to see how we can try to address this. We have had some preliminary back and forth between our two governments to see what the different issues are," she said.

Terming totalisation as a "complex issue", Biswal said the US recognises the concerns that have been raised and this is something that was discussed in New Delhi in January this year among officials when US President Barack Obama had visited India for the Republic Day celebrations."We will continue to look and explore how we can address some of these concerns that India has raised on totalisation," she said. On visa issues, Biswal said the legislative branch is working its way through immigration reform in the US.She noted that India has been and continues to be among the largest recipient of H1B and L1 work visas."We understand that there are continuing concerns on the Indian side and this is something we are looking closely at as the legislation works its way through Congress to see at what point we may take up some of these issues," Biswal said. Biswal said the US would welcome India's conclusion of a bilateral investment treaty not only with it but also the different trade agreements that the South Asian country is working on with other countries.

SOURCE: The Economic Times

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US Trade deficit widens 7% in June as imports jump

The U.S. trade deficit increased in June as solid consumer spending pulled in more imports, while the strong dollar restrained exports. The Commerce Department said Wednesday the trade gap jumped 7% to $43.8 billion in June, up from $40.9 billion in May. Imports increased 1.2% to $232.4 billion, while exports edged lower to $188.6 billion from $188.7 billion. U.S. manufacturers have been held back this year by the strong dollar, which makes their products more expensive overseas. Exports of large capital equipment, including telecommunications gear and industrial machinery, fell 1.7% in June. Imports of food, auto parts, and consumer goods such as pharmaceuticals and cellphones surged as Americans spent more. Even so, the deficit narrowed in the second quarter compared with the first, boosting the economy. Trade has been volatile this year. Labor disputes at West Coast ports in the first quarter delayed imports and the shipment of U.S. goods overseas. That lowered exports and pushed the deficit to a three-year high in March of $50.6 billion.

International trade subtracted about 2 percentage points from growth in the January-March quarter, when the economy expanded at an anemic annual rate of just 0.6%. It then added 0.1 percentage point in the April-June quarter, when growth picked up to a 2.3% pace. The dollar has risen about 14% in value against overseas currencies in the past year. That also makes foreign products cheaper in the U.S. Greater consumer spending may also be pushing up imports. Steady hiring has given nearly 3 million more Americans paychecks in the past year, boosting their purchasing power. Consumer spending increased 2.9% up in the April-June quarter after rising only 1.8% in the first three months of the year. The politically-sensitive trade gap with China narrowed to $28.9 billion from $30.6 billion in May, though it remains by far the largest with any single country. The deficits with Germany, France and the U.K. widened. The U.S. went from a small trade surplus with Canada in May to a deficit of $3.1 billion in June. Separately, President Barack Obama says a trade deal in the works with 11 other Pacific Rim nations will open more markets for U.S. goods and boost the U.S. economy. Yet trade officials were unable to reach a final agreement on the Trans-Pacific Partnership last week, partly because of differences over the treatment of dairy goods. An agreement could be reached at future meetings, officials said. Obama won a hard-fought battle in Congress in June to secure fast-track negotiating authority, which allows him to submit trade agreements to Congress for an up-or-down vote. Critics of the agreement say that it will cost the U.S. manufacturing jobs and does not appear to hold countries accountable if they weaken their currencies to gain an unfair trade advantage.

SOURCE: The USA Today

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Australian exporters look to US

Two Third of Australian exporters expect their orders to increase over the next year as the falling dollar and new trade agreements have boosted business confidence to the highest levels in five years. But DHL's annual export barometer survey shows an expectation of strong growth in sales to the US, where the economy is recovering, even though the main new market openings are in north Asia following the trade agreements with Japan, China and South Korea. While 56 per cent of exporters expect orders to China to grow over the next year, virtually the same proportion, or 55 per cent, expect orders to rise to North America. The overall upward trend appears to be strengthening with 66 per cent of respondents to the survey saying their orders would increase over a year compared with only 47 per cent who say orders will increase over the next three months. Export confidence fell to the point where only 48 per cent of exporters expected sales to rise over the next year after the global financial crisis but the outlook is now tracking back towards the survey's 15-year high of 69 per cent. The outlook figures come as the latest export figures from the Australian Bureau of Statistics released this week show the value of Australia's total exports in 2014-2015 was $319 billion, a decrease of 4 per cent. But while the value of resource exports declined, there were robust increases in non-resource exports.

The value of services exports was up 9 per cent to $63 billion, rural exports were up 7 per cent to $43 billion and manufacturing exports up 4 per cent to $44 billion. Trade minister Andrew Robb argued that Australian exporters are making a transition from resources exports. University of NSW economist Tim Harcourt said the confidence about business rising in a wide range of countries was the striking feature of the latest export survey. "It's not just China, it shows the take-up in the US, Europe and many other places," he said. The strength of the US market is underlined by the way 53 per cent of companies say they export to the US, which is up 7 per cent, while 39 per cent say they export to China which was up only 2 per cent.

SOURCE: The Land

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