Archive for May, 2010

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Cotton under restricted list

Tuesday, May 25th, 2010

M. Soundariya Preetha

The Union Ministry of Commerce and Industry has brought cotton and cotton waste under the restricted list for exports through a notification dated May 21, 2010.

Thus, export license is now needed to export cotton or cotton waste. During the cotton season (October 2009 to September 2010), 85.26 lakh bales of raw cotton were registered for exports from October 2009 to April 15, 2010, and of this, 73.58 lakh bales were shipped. On April 19, the Union Ministry of Textiles suspended registration of cotton and cotton waste for exports.

According to Secretary General of the Confederation of Indian Textile Industry D. K. Nair, only a negligible quantity is expected to be permitted for further export from the current crop as the Group of Ministers had decided last month that a closing stock of 50 lakh bales should be maintained.

Cotton availability is likely to go up in the domestic market and prices will come down. This will, however, not affect farmers as most of the cotton production had already come to the market this season, he said.

News Source is http://beta.thehindu.com

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Textiles exports may touch $24 billion in 2010-11

Monday, May 24th, 2010

SME Times News Bureau
With the revival of demand in Western markets, India’s textile exports may grow up to $24 billion in 2010-11 from an estimated $20 billion in the previous fiscal, industry and government officials have said in New Delhi.

“In 2009-10, our textiles exports are estimated at $20 billion due to the global economic crisis. We expect exports to be $24 billion for the current fiscal,” an official in the Textile Ministry said.

The textile exports are set to move in sync with the country’s overall exports, which have been growing for six months since November, 2009.

Federation of Indian Export Organisations (FIEO) President A Sakthivel said textile exports can reach $24 billion if the government extends a helping hand to the industry, which is facing problems.

There has been a steep rise in cotton prices, which shot up by over 20 per cent in the past six months, resulting in higher fabric costs.

“The target can be met provided the government continues some regulations on cotton and cotton yarn exports,” he said.

The government has brought cotton exports under the restricted category, with overseas shipments subject to licensing.

US and European markets, which account for 30-35 per cent of textile exports from India, have seen revival of demand across different sectors, exporters said.

The exporters are also exploring new markets like Africa, Latin America and Oceania.

“Orders are improving. Demand for fabric has also gone up,” said Confederation of Indian Textile Industry (CITI) Secretary General D K Nair.

News Source is http://smetimes.tradeindia.com

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Removing mistrust through bis coopn

Thursday, May 20th, 2010

United News of India

Setting aside political differences, India and Pakistan have decided to change public perception and remove the existing mistrust between the two countries through promotion of trade and business ties.

A two-day meeting of top Indian and Pakistani CEOs and entrepreneurs here, which concluded today, proposed several steps to aggressively pursue the benefits of economic cooperation and identified several sectors having the highest potential for bilateral cooperation.

These include energy, agriculture, health-care, information technology and education.

The conference which was inaugurated by Finance Minister Pranab Mukherjee yesterday, also urged the governments in both the countries to take all steps necessary to realize the tremendous potential of trade and commerce between the two countries. The meeting noted with concern that South Asia is the world’s least economically integrated region.

Mr Mukherjee, who was the External Affairs Minister when the 26/11, 2008, terror attacks on Mumbai took place, stressed the strong linkage and inter-dependence between peace and sustained economic growth and development of the two countries.

After the two-day deliberations, industry leaders of both the countries agreed that economic cooperation was crucial to peace and progress in a region that has the highest concentration of people living below the poverty line.

The participants said potential existed for the export of home textiles from Pakistan to India while a huge market existed in Pakistan for India’s polyester textiles.

In the field of IT, the fastest growing sector in both countries and the easiest area to cooperate in, India could collaborate with Pakistan by providing skilled resources at competitive rates.

Considerable potential existed for trade in agriculture through streamlining logistics and storage facilities.

The Joint Declaration said India and Pakistan could also collaborate on research for improved yields in, and greater export for, both the countries. In health-care, opportunity for collaboration existed in research and combating the three major diseases in both the countries–heart, diabetes and cancer.

For energy cooperation, the conference said both the countries had huge untapped reserves of energy and collaboration could lend impetus to accelerated growth and development.

In education, given the low average age in both countries (18.2 years in Pakistan and 22.5 years in India), education and skill development was an area of immediate concern and potential.

Cooperation and sharing of strategies in education is the best investment that both the countries can make, the Joint Declaration said.

Committees comprising business leaders from both the countries were established for IT and textile sectors while similar committees for other sectors were in the process of being set up, it added.

News’s Source is http://www.centralchronicle.com/

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Exports in April jump 36%; imports surge 43%

Thursday, May 20th, 2010

The real interesting story here is the huge surge in imports because I have never seen numbers this large. Dr Rahul Khullar New Delhi, May 19

Exports in 2010-11 have kicked off on a positive note with shipments in April the first month of this fiscal posting a 36.2 per cent year-on-year growth to touch $16.9 billion.

However, the robust growth comes over a low base. Last April, exports had fallen by 30 per cent to $12.4 billion due to the financial crisis.

It is not surprising that the Government did not express any great enthusiasm about the export growth in April.

Don’t get carried away by these numbers. You have an increase in percentage terms (in April) because of the low base (of April 2009), the Commerce Secretary, Dr Rahul Khullar, told reporters here on Wednesday.

Dr Khullar expressed concern over the Euro zone debt crisis and the US’ slow economic recovery. The US and the European Union are traditional markets for Indian exports with the EU accounting for a fifth of total exports, while shipments to the US comprise 12 per cent.

Meanwhile, indicating strong industrial recovery and increasing domestic growth, imports in April recorded a huge 43.3 per cent increase to $27.3 billion from $19.1 billion in April 2009. Oil imports rose to $8.1 billion from $4.7 billion in April last year, while gems and jewellery imports rose 118 per cent, chemicals (47 per cent) and iron and steel (141 per cent).

Revival signal The real interesting story here is the huge surge in imports because I have never seen numbers this large. Over $8 billion jump in a month, Dr Khullar said.

Mr A Sakthivel, President, Federation of Indian Export Organisations, said the import growth is an indication of revival of manufacturing sector which in turn will facilitate exports. Industrial production is registering double digit growth and the growth in March was 13.5 per cent. Industrial growth for 2009-10 was 10.4 per cent.

On the future outlook regarding exports, the Commerce Secretary said, Given the current global uncertainties, I won’t say things are fine on the export front. The situation in EU is certainly not normal. Recovery in US is still far from gung-ho. Therefore, to expect that exports (for 2010-11) will grow at 25-30 per cent is a pipedream. But when you get some degree of greater assurance, that is when jobs are back in the US and the employment situation starts picking up in Europe, then all of us will be able to breathe much easier than we are today.

Exports from sectors like textile (30 per cent growth), engineering goods (up 16 per cent), marine, petroleum products (80 per cent growth), gems and jewellery (36 per cent increase) posted a rise while food grains and handicrafts are faring poorly. Trade deficit for April increased to $10.4 billion from $6.7 billion in the same month last year.

The Government has set an export target of $200 billion for 2010-11, a 13 per cent growth over $176.5 billion in 2009-10.

Mr Sakthivel said, We need to regularly review our strategy in view of the set back in Euro zone. We hope the crisis won’t spread.

Mr Aman Chadha, Chairman, Engineering Exports Promotion Council, said, The weak sentiment in Euro zone is impacting our business. But certain markets like Germany and Italy are better, especially for segments like auto and auto parts. However, it is difficult to predict the future outlook.

India’s exports had contracted for 13 consecutive months starting October 2008. It turned positive in November 2009.

Dr Khullar said the Commerce Ministry is doing a stock-taking exercise in consultation with the industry to understand which sectors need to be incentivised in the forthcoming Foreign Trade Policy supplement to boost exports.

Mr Sakthivel demanded concessional credit to exporters as the interest rate in India is higher than what is prevailing in competing countries.

Article’s Source is http://www.thehindubusinessline.com/

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Silver lining: Exports of textiles to US on the rise

Tuesday, May 18th, 2010

M Allirajan, TNN, May 18, 2010, 12.21am IST

COIMBATORE: After declining for several months because of the global financial meltdown, textile exports to the US are finally back on track, recording growth in February and March. Textile and apparel exports to the US, which account for more than a quarter of shipments made by the industry, rose 8.3% year-on-year (y-o-y) in March to $487.8 million. Exports increased 7.7% y-o-y to $443.5 million in February, data with the office of textiles and apparel, US Department of Commerce shows.

Apparel exports to the US, however, posted a modest 2.8% growth in March to $315.1 million. “Demand has started to pick up in the US. The bookings are quite reasonable and (trade) enquiries have also been quite good,” says Premal Udani, chairman, Apparel Export Promotion Council (AEPC).

“We are seeing a real improvement across all segments of the industry. Orders are coming in and after nearly two years of slowdown we are witnessing a recovery,” says P Nataraj, managing director, KPR Mill. “The recovery is slowly taking shape in both domestic and international markets.” “This year (fiscal 2011) would definitely be better,” says A Sakthivel, president, Tirupur Exporters’ Association (TEA).

Garment exports to the EU, the largest market bloc for Indian markets, however, continues to remain weak. “Europe (demand) is somewhat weak because of the uncertainty faced by some countries (in the region),” says Udani.

“Orders to EU countries have been quite weak but the US has been much better,” says an exporter. Apparel exports to the EU are estimated to have come down by 16.8% to $4.5 billion in fiscal 2010.

While the industry is seeing a silver lining, some officials advise caution. Though inquiries are good, exporters are finding it difficult to convert them into orders as they have been adversely hit by rising raw material prices and the rupee appreciation, says Sakthivel.

News Source is http://timesofindia.indiatimes.com

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Dhaka textile firms lack skilled hands

Saturday, May 15th, 2010

PALPA: The cottage industries in Palpa are facing a shortage of workers after the youths from the district have been lured towards foreign employment. This situation has arisen after increasing number of youths from the district started going for foreign employment due to the low wages and irregular pay at home.

The traditional Dhaka textile industries, a hallmark of Palpa district, have been hit hard by shortage of skilled workers.

The Karki Dhaka Udhyog located in the district headquarters Tansen is facing shortage of manpower at present. This Dhaka textile factory needs approximately 60 skilled and semi-skilled workers. There are only 25 workers at present.

Proprietors of Dhaka textile industries in Palpa district say they are facing shortage of skilled human resources as an increasing number of youths started going abroad for work or those already employed at their factories left their jobs to go on foreign employment. Although more than 400

industries, including the Dhaka textile industries, have been registered in Palpa district, not even 50 per cent of them are in operation due to the shortage of skilled workers, an officer at the District Cottage and Small Industries Office said.

News Source is http://www.thehimalayantimes.com

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Nepali products get zero-tariff in Chinese market

Saturday, May 15th, 2010

Himalayan News Service
KATHMANDU: Nepal got zero-tariff for 4,721 products in Chinese market.

Purusottam Ojha, secretary of Ministry of Commerce and Supplies (MoCS) and Qui Guohong, Chinese Ambassador to Nepal today signed an agreement on Letter of Exchange (LoE) regarding zero-tariff on 4,721 Nepali products to Chinese market.

Before the agreement Nepali exportable products were charged 10 per cent to 35 per cent customs duty.

The agreement on LoE will help decrease trade deficit with China, OJha said adding that amongst 4,721 products, 361 products will get direct benefit. The most essential products like carpet, leather, coffee, Juice and silverware will get zero-tariff in the Chinese market, he added.

Earlier, China has announced top provide zero-tariff to Least Developed Countries (LDCs) gradually. Tariff reduction has been a key issue in global trade, the envoy said adding that China is committed to WTO. China is against the trade protectionism as it hurts the global trade, he added.

During the year 2009 bilateral trade registered $414 million. The trade balance is in favour of China. This agreement will help Nepal balance the trade deficit, Guohong said.

Requesting to take part in the trade expos that are going to be held in China he also urged the entrepreneurs to take advantage from the concession.

Welcoming the Chinese gesture, president of Confederation of Nepalese Industries (CNI) and CA member Binod Chaudhary asked China to open up more. We are hopeful that China will gradually provide zero-tariff to 90 per cent goods, he said. Nepal also looks forward to Mutual Investment Agreement with China, Chaudhary added.

Supporting the envoy on development of Export Promotion Zone (EPZ) at Panchkhal, he also requested China to help in it.

The major Nepali exportable products to China are mushroom, orange, cherry, coffee, carpet, garment, beer, incense-sticks, match sticks, apple, tomato, onion, potato, strawberry, honey, cauliflower, brocauli, biscuit, grapes, soap, shampoo, mineral water, textile cotton clothes, wool, brass, fruit juice, leather products, marble, paints, ceramics, jewellery, copper wire, and cable which has been granted free customs.

News Source is http://www.thehimalayantimes.com

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Nigeria-India trade volume hits $10 billion

Thursday, May 13th, 2010

BY NGOZI SAMS

The trade relationship between Nigeria and India has been robust and relatively balanced, says Mahesh Sachdev, the Indian High Commissioner to Nigeria, when he led a delegation of some Indian businessmen to visit Jibril Martins-Kuye, the minister of Commerce and Industry on Tuesday.

“India is Nigeria’s second largest trading partner with the total volume of trade according to our statistics nearly $10.3 billion,” he said. “On the industrial front, Indian companies in Nigeria are also second largest in terms of employment of Nigerians.

The first is federal government in terms of employment while the second is Indian community and Indian-based companies taken together today contribute employment of Nigerian people. Among the companies where India has the top position are steel, power sector and pharmaceuticals.”

Mr. Sachdev said this is significant as there are just about 30,000 Indians in Nigeria, less than 1.5 per cent of the total Nigeria population. India is therefore seeking more ways to boost bilateral and financial ties with Nigeria. He was however silent on the usual accusation of injustice against the Indian employers by most Nigerian employees.

“Initially the visit was to four countries but keeping in view our close ties with Nigeria and the fact that Nigeria’s textile industry deals with the Indian community, it was decided that we include Nigeria in the list,” he said. “We are here to showcase our expertise and offer our experience on the very important task to bring Nigeria’s once mighty textile industry and cotton growing population.”

Ravid Vanger, the leader of the delegation and deputy permanent representative of India at the World Trade Organisation, added that India and Nigeria share long commercial ties.

Source of this news is http://234next.com/csp/cms/sites/Next/Money/5567732-147/nigeria-india_trade_volume_hits_10_billion.csp

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Industry grows 10.4% in ’09-10

Thursday, May 13th, 2010

NEW DELHI: The rate of expansion in industrial production slowed down to 13.5% in March from 15.1% in February as a partial withdrawal of stimulus measures and a rate hike took their toll but enough to ensure over 7% GDP growth rate for 2009-10.

This is the sixth consecutive month when the industrial output has posted a double-digit growth. For the full fiscal, industrial output grew at 10.4% against 2.8% in the previous fiscal when the global slowdown hit the economy.

Finance minister Pranab Mukherjee said the growth in March industrial output may have declined marginally but it was still good enough to ensure a 7.2% economic growth during 2009-10. For Planning Commission deputy chairman Montek Singh Ahluwalia too the marginal dip in March industrial growth figures will not impact th GDP estimates.

Commerce and industry minister Anand Sharma described the drop as “minor fluctuations”. “We will review as to why some slowdown is there and we will go into the reasons at ways of intervention to correct it,” he told reporters.

Analysts expect the factory output to ease a little more in the coming months due to the twin impact of withdrawal of stimulus and uncertainty about the global economic recovery. They also did not see the RBI as tightening policy based on these numbers. The RBI will wait for cues on inflationary pressures, demand in the economy and the overall global economic situation before tightening policy further.

Manufacturing, which makes up nearly 80% of the index for industrial production, grew by 14.3% in March. Mining recorded an increase of 11% and electricity generation 7.7%. Fourteen out of the 17 industrial groups showed positive growth in March. The sectors that witnessed negative growth were jute, textile products and wool, silk and man-made fibre textile.

Consumer durables, which was particularly hit by the global crisis, expanded 32% in the month, while capital goods production rose 27.4%. Consumer non-durables, which include consumer goods like toiletries and cosmetics, however, grew a modest 3.3% during March.

News source is http://timesofindia.indiatimes.com

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Textile mills shut across the country in protest

Wednesday, May 12th, 2010

FAISALABAD/KARACHI All the textile mills remained closed throughout the country on Tuesday in the wake of a strike call given by Value-Added Textile Forum against the yarn and cotton crisis and power load shedding.

Value-Added Textile Forum sources told TheNation that complete strike was observed in Faisalabad as well as in the country by the textile sector while some 10,000 textile mills were totally closed in Faisalabad including 400 stitching, 300 dying, 450 printing, 1,000 hosiery and 350 sizing units.

Rallies were organised in all the four districts of Faisalabad division including Jhang, Chiniot, Toba Tek Singh and Faisalabad districts. Protest were also reported from other major cities including Karachi, Gujranwala, Sialkot and Multan.

Most of the rallies were led by the factory owners. Thousands of textile workers took part in the rallies. The protesters carried banners and placards inscribed with slogans: ‘Save the Textile Industry, Save the Country and Clamp Complete ban on export of cotton and yarn’.

The activists also chanted slogans against Prime Minister Yousuf Raza Gilani and President Asif Zardari. The workers warned the government of dire consequences, asserting they would not allow anyone to play with the livelihood of the laborers.

Thousands of workers and owners of value-added textile sector took out protest processions from various places and blocked the city roads. The main protest procession was taken out from Khurrianwala Industrial Estate, which was led by Chairman Pakistan Textile Exporters Association Khurram Mukhtar and Vice Chairman Sohail Pasha and other leaders of Value-Added Textile Forum. The rally demanded total ban on export of yarn with a view to saving the industry from collapse and the workers jobs.

Read more here http://www.nation.com.pk

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