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To compete with China-made goods, the State budget has proposed to establish a unique programme. The budget states that spare parts will be manufactured at the village-level, assembled at Taluk level and malls be will be opened to market these goods. For this purpose, plug and play industrial sheds will be constructed.
A manufacturing industry of household LED lights will be developed in Chitradurga district under this scheme. At present, LED lights are imported from China.
The State government will be developing Hassan district as bathroom floor tiles and sanitary goods manufacturing district to compete with China-made bathroom, floor tiles and sanitary goods.
To compete with Chinese toys, a manufucturing cluster will be established in Koppal district. The budget states that toys operated with battery and electricity have entered the market and ICB, chip, micro DC motor are incorporated in these toys. “There is a world market for such toys. In China these mechanized toys are manufactured and supplied to the entire world. In this background, a challenge to Chinese toys, it is proposed to establish a cluster for manufacture of toys in Koppal district,” the budget document read.
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India’s apparel exports downturn may continue and is expected to decline by overall 10 per cent in FY19, a senior industry official said here.
In 2017-18 exports declined by 4 per cent to USD 16.7 billion. “Country’s apparel exports have taken a beating from October 2017 onwards. The introduction of GST has resulted in non-refund of several embedded taxes. Consequently exports for the financial year 2017-18 declined by 4 per cent to USD 16.7 billion from 17.38 billion in the previous year,” the Clothing Manufacturers Association of India (CMAI) president Rahul Mehta told reporters here.
The downturn continued in FY 2018-19 with a month on month decline of 8-10 per cent and it is expected to witness overall decline by 10 per cent in FY19, Mehta said.
The country exports nearly 70 per cent of cotton garments and 20 per cent jump in cotton prices in last few months has also hit exports severly, he said.
The industry is having talks with the textile ministry and the government has assured that embedded taxes will be refunded through the drawback route.
Commenting on domestic apparel market, Mehta said, country’s domestic apparel market is estimated at USD 67 billion, which has grown at a CAGR of 10 per cent since 2005. Indian domestic market has performed better than the largest consumption regions like US, EU and Japan, where depressed economic conditions led to lower demand and growth. Due to presence of strong fundamentals, the domestic apparel market size of India is expected to grow at 11-12 per cent CAGR and reach about USD 160 billion by 2025.
The domestic market size is dominated by ready-to-wear category, market size USD 56 billion, with 84 per cent share which is further growing at a CAGR of 10-11 per cent. The ready-to-stitch market currently at USD 11 billion is expected to grow at a CAGR of 7 per cent and reach about USD 20 billion in 2025.
In order to boost domestic trade, CMAI is organising a 67th national garment fair between July 16-19 this year in Mumbai. Nearly 916 exhibitors in 986 stalls are displaying 1,087 brands
The apparel trade show is expected to transact business worth Rs 700-800 crore, Mehta added.
Sustained growth in cotton production reached 10.685 million bales during the last fortnight (Dec 1-15), according to an article on Dawn.com. A 5.30 per cent increase has been witnessed over the corresponding period last year when production stood at 10.147m bales.
The latest cotton production figures issued by Pakistan Cotton Ginners Association on Monday showed higher growth in Sindh’s cotton production at 4.136 million bales, an increase of 11.70pc over the same period last year when production stood at 3.703m bales. The province produced around 433,275 more cotton bales so far over last year.
Against this, cotton production in Punjab during the period under review recorded a modest increase at 6.549m bales or 1.63pc higher over the corresponding period last year when production was at 6.444m bales. Overall, the province produced 104,765 more bales over the last year.
President Donald Trump said on Thursday tariffs on $34 billion worth of Chinese goods will kick-in at 12:01 a.m. EST on Friday morning. Another $16 billion are expected to go into effect in two weeks, he said.
Trump’s statements reinforce earlier threats that he would escalate the trade conflict if Beijing retaliates
President Donald Trump speaks to supporters during a campaign rally at Scheels Arena on June 27, 2018 in Fargo, North Dakota. President Trump held a campaign style ‘Make America Great Again’ rally in Fargo, North Dakota with thousands in attendance.
President Donald Trump said on Thursday tariffs on $34 billion worth of Chinese goods will kick-in at 12:01 a.m. EST on Friday morning. Another $16 billion are expected to go into effect in two weeks, he said.
Aboard Air Force One on his way to a rally in Montana, Trump told reporters he would also consider imposing additional tariffs on $500 billion in Chinese goods, should Beijing retaliate.
First “34, and then you have another 16 in two weeks and then as you know we have 200 billion in abeyance and then after the 200 billion we have 300 billion in abeyance. Ok? So we have 50 plus 200 plus almost 300,” Trump said.
“It’s only on China,” he added.
Trump’s statements reinforce earlier threats that he would escalate the trade conflict. The dispute with China has roiled financial markets worldwide, including stocks, currencies and the global trade of commodities from soybeans to coal.
China has said it will not “fire the first shot”, but its customs agency made clear on Thursday that Chinese tariffs on U.S. goods would take effect immediately after U.S. duties on Chinese goods kick in.
More than 1,000 textile workers from a footwear factory in Daun Keo City yesterday rallied at the Takeo Provincial Hall to demand officials intervene on their behalf to get their unpaid severance packages.
The workers said that the factory was supposed to pay them a severance package upon the conclusion of their six-year contracts.
Protests began on Monday when the workers first descended upon their former place of employment, a factory operated by Takeo Shoes Cambodia. On Tuesday, the workers protested in front of the provincial labour department and yesterday they hit the provincial hall.
Worker Meas Srey Oun said yesterday at the provincial hall that Takeo Shoes Cambodia was not upholding its obligations.
Ms Srey Oun said that workers initially filed a complaint at the provincial labour department ten days ago.
“We worked there for many years, we need our severance pay and we will return and return again,” she said. “We are afraid that our former employer will not pay our severance.”
Takeo provincial Governor Ocuh Phea said that he met with the workers to find a solution for them and noted that the complaint has been received and that provincial officials are handling the case.
First, we want them to go back home without any protest and we will meet with their employer for a solution,” Mr Phea said.
Yi Sokhorn, another worker, said that they were not coerced to rally. Instead, Mr Sokhorn said that they took it upon themselves to fight for their missing pay.
“Unions didn’t help us to rally, we all came together to demand our severance pay,” he said.
In March, the government said it was prepared to pay out $4.6 million to about 4,100 workers whose bosses fled without paying their wages.
Since then, thousands of workers who were abandoned by their employers have received compensation from the government.
The government also moved to amend article 89 of the labour law regulating severance pay for workers.
Following the amendment, the Garment Manufacturers Association in Cambodia said the move could financially burden employers by forcing them to pay out severance all at once rather than in instalments.
In a statement after the amendment, GMAC said amending article 89 protects workers, but “will create a new degree of financial burden for the employer and possibly other human resource management challenges”.
“We would like to express our concern and ask the government to please carefully consider the issue,” the statement added. “We strongly suggest that employers pay the compensation in phases.”
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U.S. President Donald Trump fired the biggest shot yet in the global trade war by imposing tariffs on $34 billion of Chinese imports. China immediately said it would be forced to retaliate.
The duties on Chinese goods started at 12:01 a.m. Friday in Washington, which is just after midday in China. Another $16 billion of goods could follow in two weeks, Trump earlier told reporters, before suggesting the final total could eventually reach $550 billion, a figure that exceeds all of U.S. goods imports from China in 2017.
U.S. customs officials will begin collecting an additional 25 percent tariff on imports from China of goods ranging from farming plows to semiconductors and airplane parts. China’s officials have previously said they would respond by imposing higher levies on goods ranging from American soybeans to pork, which may in turn prompt Trump to raise trade barriers even higher.
It’s the first time the U.S. has imposed tariffs directly aimed at Chinese goods following months in which Trump accused Beijing of stealing American intellectual property and unfairly swelling America’s trade deficit.
The riskiest economic gamble of Trump’s presidency could spread as it enters a new and dangerous phase by imposing direct costs on companies and consumers globally.
“Once these tariffs start going into effect, it’s pretty clear the conflict is real,” said Robert Holleyman, former deputy U.S. trade representative under President Barack Obama and now a partner at law firm Crowell and Moring LLP. “If we don’t find an exit ramp, this will accelerate like a snowball going down a hill.”
Recent U.S. tariffs on steel and aluminum antagonized fellow developed nations and drew return fire from countries including the European Union and Canada.
Prices up by 8% in June and another hike is in the offing
The knitwear industry in Tirupur, which does business worth Rs 500 billion of which half is exports, has urged the mills not to increase cotton price further, as exporters are already struggling to survive. The falling rupee has given no respite to the industry as the price of yarn, its key raw material, has zoomed. Competing countries’ currencies also falling, taking away the low rupee advantage.
Raja M Shanmugham, President, Tirupur Exporters Association, said cotton yarn price has risen by Rs 20 a kg this month to Rs 240 per kg for 40 count yarn. Going by strengthening cotton prices, industry fears another hike of Rs 5 per kg in July.
The price hike has put the knitwear garment export sector in a difficult situation, hard to sustain in the competitive global environment.
Shanmugham said the beleaguered knitwear export sector has been passing through a challenging business environment following the implementation of GST. This was evident from the continuous decline of knitwear exports month after month since October 2017, after three months transition period was over. He added that exports declined as much as 21 per cent during the second half of 2017-18.
The most worrying factor is that the negative growth trend in exports is continuing in the current financial year and the average decline of knitwear exports in the month of April and May was 34 per cent.
Though the Met Department pronounced the official onset of monsoon in Gujarat a week ago, kharif sowing is yet to kick off as the State is yet to receive sufficient rains.
Delayed rains have shrunk the sowing window for cotton by about a fortnight for the largest producer of the fibre crop. However, the trade and growers are optimistic that the targetted acreage will be achieved during the remaining sowing period till July 15, if it rains adequately.
Kharif sowing for cotton normally commences in the first week of June and goes on till July-end. However, this year, due to the delayed monsoon, the pace of cotton sowing has been sluggish at 241,578 hectares as of June 25, down 64 per cent from last year’s 675,600 hectares from same time.
The rainfall deficit till June 30 has been pegged at 91 per cent with 68 mm as against 831 mm State average. Even the forecast for the week till July 6 shows bleak chances of widespread rains in the State.
Favourable scenario
“Farmers are upbeat about cotton crop as it is fetching good prices. Secondly, this year, due to government directive they have delayed sowing. This is proving to be a favourable scenario for farmers because in a shorter crop cycle, there are less chances of pest attack, especially the pink bollworm. Longer the plantation cycle, higher are the chances of pest attack. Hence, we see not much impact on sowing due to delay in monsoon,” said Nayan Mirani, a cotton expert and former president of Cotton Association of India (CAI).
Pan India, cotton has been planted in about 32.2 lakh hectares as on June 29, as against 46.10 lakh hectares in the corresponding period last year. Sowing in Haryana has increased a bit, while that in Punjab and Rajasthan has fallen. Maharashtra, however, is likely to witness some rise in the cotton acreage as farmers prefer cotton.
“This year the possibility of pest attack is less because of the climate. Also, there is positive sentiment about cotton prices. We will continue with cotton this year,” said a cotton grower from Junagadh district in Gujarat.
Notably, prices have moved up on concerns of a possible decline in acreage and bullish sentiment due to US-China trade war, where India has an opportunity to sell its cotton to China.
As per a latest report by ICRA, international cotton prices reached four-year highs during the six-month period ended May 2018 due to the global scenario and speculative buying in the backdrop of anticipated tightening of demand-supply situation. While the prices stabilised in the last week of June after surging 5-6 per cent in the first few weeks, prices are still up 10 per cent year-on-year.
In India, cotton prices touched ?47,000 per candy (of 356 kg) for 29 mm variety.
Crude oil is turning into a hot commodity as prices are soaring on falling inventories and the Trump administration’s warning to companies to cease buying Iranian oil.
Oil prices traded lower in the first half of June, which was followed by huge gains in the second half. This month was a period of erratic global politics that injected a considerable amount of volatility and the stage is set for further geopolitical confrontation.
That decrease eliminated inventories in developed countries by about 340 million barrels and returned total inventories to around their five-year average.
The Saudis appear to have emerged as the winners from last week’s meeting of OPEC, and the subsequent talks between OPEC and its allies in the deal to restrict output. The outcome of meetings seems to indicate that crude oil supply should rise by as much as 1 million bpd.
Last month, OPEC oil ministers reached a deal to raise production quotas to add 600,000–800,000 barrels a day, effectively returning a third of the barrels that have been withheld since January 2017. OPEC ministers have agreed to a nominal production increase of a million barrels a day to be divided between cartel members and non-OPEC partners, including Russia, which together cut production last year by about That’s based on the assumption that OPEC and allies will return to 100 per cent compliance with the November 2016 cut of 1.8 million bpd from a current situation of over-compliance. However, the reality on the ground is that many OPEC countries lack the ability to pump their full quotas.
Saudi Arabia is the only producer that can ramp up output significantly within a short period of time. The market consensus after the OPEC meeting in Vienna on June 22 and the talks with non-OPEC allies the following day was that the agreements reached wouldn’t actually result in an extra 1 million bpd reaching global markets.
While there is some debate on the likely increase in supply, the upper end of the range is around 600,000-800,000 bpd. The markets were also dealing with the outage at Syncrude Canada’s 360,000 bpd oil sands facility near Fort McMurray, Alberta, which a spokeswoman confirmed will remain offline through July. Traders expect this to reduce crude flows to Cushing, Oklahoma, the delivery point of the US crude futures contract.
In addition, a power struggle among the two parallel Libyan national oil companies created uncertainty on the country’s export ability. Meanwhile, Venezuela is mostly enduring supply risk. Its production has already plunged by about 40 per cent since 2015 due to a gruelling recession, civil unrest and an exodus of workers from the country’s state-owned oil firm, Petroleos de Venezuela. The supply increase agreed by OPEC and its allies last week was primarily intended to offset these losses.
The decision by US State Department to encourage all countries to shun energy imports from Iran supported crude prices. The Trump administration has no compunction about making harsh demands to various countries, including US allies, to cut off Iranian oil. The US government is calling on its allies to zero out imports of oil from Iran by November 4, or else face sanctions, and Washington is leaning towards granting no waivers at all.
Some top oil buyers of Iranian crude are already thinking about shunning Iran oil. It is yet to see what will China and India, Iran’s two biggest oil customers, will do. It’s unclear if either has made a decision yet. While Beijing has held strategic talks with the Middle East nation, it hasn’t disclosed whether it might scale back imports in light of renewed US sanctions.
When the restrictions were in place earlier this decade, the Asian nations had persisted with purchases from the Islamic Republic in spite of American criticism. Meanwhile, India plans to seek some exemptions to continue Iranian oil imports, and is looking at alternate payment mechanisms.
Given that the Saudi Arabia looks to provide lion’s share of any increase in output, watching its export numbers and price signals in coming months will be the key. In fact, Saudis are already supplying more crude. Saudi seaborne crude exports were 7.06 million bpd in May, the most in a year, the data showed.
Prior to the November 2016 agreement, Saudi Arabia was regularly exporting more than 7 million bpd. But it’s also worth noting that only in two months, January and February in 2016, did the kingdom ship more than 7.6 million bpd.
What this shows is that the Saudis definitely have the scope to export more crude, but boosting output above 7.6 million bpd on a sustained basis isn’t something they have done in recent years.
The developments mean there are curbs on the outlook for global supply, and it seems as though OPEC and its allies will take a gradual approach in restoring production as the group combats the ongoing rise in US outputs.
Meanwhile, US exports are increasing continuously as rising domestic production of light oil, rising global demand, and the wide discount between the price of US crude and the global Brent benchmark in recent weeks are all helping more US crude find its way offshore.
Elsewhere, the escalating trade war between China and the United States threatens to halt surging US crude oil exports to China, which could destroy a huge source of future demand growth, drive down the cost of US crude and weigh on the balance sheets of America’s shale drillers.
US production is getting vital importance as its US oil rigs were decreasing through month after having touched their highest level since March 2015. US crude oil stocks have come down consistently since the top in March of last year, indicating a continued rise in demand.
Currently, crude stocks are in the middle of the 5-year range and indicate that they may have more room to fall, particularly if the economic growth for Q2 and later quarters touches 4 per cent. The Permian Basin in West Texas is on track to produce more oil within five years than any OPEC nation except Saudi Arabia, positioning the Texas Gulf Coast to rival the Persian Gulf when it comes to oil and gas activity.
By 2023, the shortage of pipelines to move oil, gas and natural gas liquids to Gulf Coast markets and beyond is expected to be alleviated by multibillion-dollar projects now under way or planned. A market structure known as backwardation persisted as WTI for August settlement was about $1.40 higher than the September contract, signalling a shortage after a Syncrude Canada oil-sands outage.
With the recent price moves being news-driven, we’re likely to see volatility and also price pullbacks. However, the medium to long term prospects for oil are very attractive and should be strong. Prices should push higher to at least $75-78 in the short term.
Domestic consumption for the season is estimated at 324 lakh bales, while the exports are estimated to be at 70 lakh bales, a release said today. The Cotton Association of India (CAI) has maintained its June estimate of the cotton crop production for the 2017-18 season (October-September) at 365 lakh bales, same as May.
Domestic consumption for the season is estimated at 324 lakh bales, while the exports are estimated to be at 70 lakh bales, a release said today. The carry-over stock at the end of the season is estimated at 22 lakh bales, it added.
“The CAI has retained its cotton crop estimate for the ongoing crop year 2017-18 at 365 lakh bales, of 170 kg each, at the same level as in its estimate made in the previous month,” it said.
The total supply is estimated at 394.45 lakh bales, which includes arrivals of 348.45 lakh bales up to June 30, imports the committee has estimated at 10 lakh bales and the opening stock at the beginning of the season, which has been revised from 30 lakh bales to 36 lakh bales.
Further, the CAI has estimated cotton consumption for the nine months (October 2017 to June 2018) at 243 lakh bales, which is 27 lakh bales per month, while the shipment of cotton till June 30 , has been estimated at 64 lakh bales.
The stock at the end of June is estimated at 87.45 lakh bales, including 51.85 lakh bales with textile mills, while the remaining 35.60 lakh bales are estimated to be held by the Cotton Corporation of India (CCI) and others including traders, ginners, etc. The estimated total cotton supply up to September 30, 2018, is at 416 lakh bales, which includes opening stock of 36 lakh bales at the beginning of the season.
