Archive for May, 2010

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Eurozone crisis may hit exports to EU: Fin Secy

Tuesday, May 11th, 2010

SME Times News Bureau
The Eurozone debt crisis may have some adverse short-term impact on Indian exports to the European Union, said Finance Secretary, Ashok Chawla on Monday.

Inaugurating ASSOCHAM organized Conference on Banking and Financial Regulators in New Delhi, Chawla admitted that India’s exports in short term to the EU and it’s market could face some problem due to it’s ongoing financial crisis.

Chawla, however, added that the financial turmoil will have “minimum effect” on India’s exports in current fiscal.

“In the long run, however, the impact would be negligible as India has faced bigger crisis of larger volumes without letting it’s economy shrink beyond a point and the current crisis of Europe are going to be a temporary affair,” he said.

“Therefore, there is no need to worry on this front,” assured the Finance Secretary.

On the same day, Commerce Minister Anand Sharma told reporters at the sidelines of a conference in the national capital that India has not seen any significant adverse impact from the European debt crisis.

A crisis of confidence in Europe has been triggered by a potential debt default by Greece. The European Union and the International Monetary Fund (IMF) have announced a $1 trillion emergency financial aid package, which is expected to stabilise world financial markets and curb speculative attacks on the Euro.

With the euro gaining USD 1.30 in the late European morning trading on Monday after assurances by European leaders to save the currency from falling apart, Indian firm who export a bulk of their products to the EU heaved a sigh of relief. In many export segments like garments, 50-70 percent of the invoicing is done in euro.

Chawla went on adding that domestic capital market would also absorb the off shoot of crisis, arisen in European markets in the sense that FIIs investments into it would continue and the flight of their capital is unlikely to other destinations.

The domestic economy, according to the Finance Secretary would move on to double digit growth rate but the challenge for policy maker will remain for this growth to be made inclusive.

Source of this news is http://smetimes.tradeindia.com

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Indigenous industry needed to boost technical textile market

Monday, May 10th, 2010

COIMBATORE: India needed to give a push to indigenous industry in technical textile market for boosting the domestic consumption of the products, a US-based expert in the sector has said.

For boosting the domestic consumption of technical textile products, India needed indigenous industry, which can manufacture products such as diaper, feminine hygiene products, Dr Ramkumar Seshadri, Professor at Texas Tech University, USA, said in an article.

These products were still dominated by major international brands such as Pampers, Huggies and SCA-Godrej, he said adding their cost was unaffordable for common man in India.

The cost of branded diapers was around Rs.nine and this should be brought down to Rs.five for the industry to boom in India, he said.

For this to happen, India urgently needed converting sector which would take fabrics and make useful end-use products such as filters and diapers. Moreover, due to the growing domestic consumption and increase in wages, the need for consumer products at affordable rates will rise, he said.

International non-woven technical textile industry machinery makers and trade bodies should look for win-win opportunities in the creation of converting clusters, he said.

Though India has adequate good manufacturers although not of high quality, the industry at present was reluctant to invest in high-end machinery. Marketing know-how and coordinated approach towards marketing was another major factor, to boost the sector, he said.

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

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Indian ban on cotton export affects Pak importers

Wednesday, May 5th, 2010

Wednesday, May 05, 2010
KARACHI: The Indian government has not only banned the export of cotton but also imposed Rs2,500 per ton export surcharge on the export of Indian cotton to save their local textile industry. This ban has seriously affected Pakistani importers of cotton from India, who had booked about 200,000 bales, says a press release issued here Monday.

Federal Adviser on Textile Dr Mirza Ikhtiar Baig today talked to the Pakistani High Commissioner in India, Shahid Malik, and requested to take up this matter with the Indian authorities to allow shipment of cotton for which sales contracts have been already executed. The Indian government has asked exporters to re-register their valid contracts to allow export of cotton on monthly pro data basis.Dr Baig requested the Pakistan high commissioner to arrange to expedite the process of re-validation of contract as there is a serious shortage of cotton for the textile industry in Pakistan.

News printed in http://www.thenews.com.pk/

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Center withdraws duty drawback, cotton yarn exporters cry foul

Wednesday, May 5th, 2010

Raakhi Jagga
Posted: Wednesday, May 05, 2010 at 0214 hrs

Ludhiana:
Union Textile ministry’s order withdrawing the four to five per cent duty drawback provided to cotton yarn exporters is the second shock for the exporters in the past one month. Last month, duty entitlement passbook (DEPB) worth 7.67 per cent on the total sales was also withdrawn on cotton yarn exports. Ashish Bagrodia, president of Northern India Textile Mills Association (NITMA), said this is an effort to curb exports.

The smaller players — the end users of the cotton yarn have, however, welcomed the move. They had earlier presented their problem before the Union Textile ministry that yarn manufacturers are increasing the prices of cotton yarn in the domestic market in an arbitrary manner.

In the past three months, the prices had increased from Rs 140 per kg to Rs 175 per kg, however, from May 1 Rs 5 per kg was reduced from the cost of yarn. Bagrodia said the government’s decision to withdraw duty drawback for cotton yarn is very unfortunate and unfair. The move is also inequitable as all other export products are eligible for the refund of duties and the sudden withdrawal will have long-term implications for the healthy development of the sector in future, he claimed.

News source is http://www.indianexpress.com/news/

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Brandix Apparel City to attract Rs 5400 Cr

Tuesday, May 4th, 2010

BS Reporter / Chennai/ Visakhapatnam May 04, 2010, 0:37 IST

CM Rosaiah inaugurates the park in AP Special Economic Zone

Andhra Pradesh chief minister K Rosaiah on Monday inaugurated the Brandix India Apparel City (BIAC) located in the Andhra Pradesh Special Economic Zone here.

The state government has allotted 1,000 acres of land for the project while the Centre has provided Rs 36 crore under the Union textile policy.

Speaking on the occasion, Rosaiah asked BIAC, promoted by Sri Lanka-based Brandix group, to fulfil its promise of providing employment to 60,000 people at the earliest.

He said the government was providing training to youth under Rajiv Udhyogsree to make skilled manpower available and had, so far, trained 1 million youth.

BIAC would have 20 apparel manufacturing plants, three fabric mills, eight accessories factories and one finishing plant. The apparel city would attract an investment of $1.2 billion (around Rs 5,400 crore), said Brandix group chief executive officer Ashroff Omar.

While two manufacturing units Brandix Apparel India and Ocean India (US) have already commenced exports, four others are at different stages of completion. These six companies, on completion, would cumulatively invest about $70 million (Rs 315 crore) for factory infrastructure development, he said.

Fabric companies like Fountain Set Holdings of Hong Kong, Pioneer Elastic India Quantum Clothing Indi (UK), DEB Fashion India and Seeds Intimate Apparel India have come forward to set up joint ventures in the BIAC.

Visakhapatnam would attract investments worth about Rs 68,000 crore over the next five years and see 71,000 new jobs being created. During the last three years, Vizag district attracted Rs 17,000 crore in different sectors, said K Lakshmi Narayana, major industries minister.

The Centre has sanctioned six integrated textile parks for Andhra Pradesh, including in Visakhapatnam, said Panabaaka Lakshmi, Union minister of state for textiles, adding this was the biggest textile park in Southeast Asia. This year, the textile Budget is Rs 4,500 crore. The government has allotted Rs 397 crore to promote the integrated textile parks in the country, she said.

Source of this news is http://www.business-standard.com/india/

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Mills requesting restoration of duty drawback

Saturday, May 1st, 2010

An appeal for reconsidering the withdrawal of duty drawback on exports of cotton yarn has been submitted by textile mills to the Union Government. A notification has been issued by the government in this regard on 29th April 2010.
V.S Velayutham, Chairman, Cotton Textiles Export Promotion Council explained in a release that withdrawal of duty drawback was basically a timely tested scheme initiated for reimbursing the incidence of excise and customs duties levied at the product’s input stages.

Agreement of WTO on countervailing measures and subsidies permitted remission or exemption of prior stage cumulative indirect import charges and taxes levied over inputs which are used for the development of export products

Mr. Velayutham told that the government had already handled a blow to trade of exports and had also moved against their own principle of goods exporting without taxes.

J. Thulasidharan, Chairman of Southern India Mills Association explained that duty drawback was actually not an incentive.

It was simply a duties refund and was levied on most export commodities. Prices of yarn were determined by market experts depending upon demand and supply and any kind of moves made for getting artificial control over the intermediary products definitely would bring an effect on the functioning of the whole textile value chain.

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