Mumbai: Cargo traffic across 12 major ports in the country increased by 3.75 per cent year-on-year in May to 72.04 million tones (MT) from 69.43 MT handled in the corresponding month of 2023 with nine such ports showing positive growth. Visakhapatnam Port registered the maximum cargo growth in cargo handling at 22.05 per cent during the reporting month followed by Chennai Port with 9.10 per cent, Cochin Port with 7.78 per cent and Mumbai Port with 5.89 per cent, according to data released by the major ports' apex body, Indian Ports Association (IPA). The 12 major ports are Deendayal (Kandla), Mumbai, Mormugao, New Mangalore, Cochin, Chennai, Ennore (Kamarajar), Tuticorin (V O Chidambaranar), Visakhapatnam, Paradip and Kolkata (including Haldia) and Jawaharlal Nehru Port. According to the IPA, VO Chidambaranar Port saw a 5.59 per cent increase in its cargo handling during the previous month while Paradip Port 4.27 per cent, Deendayal Port with 3.49 per cent, New Mangalore Port with 1.87 per cent and JNPA with 1.78 per cent. The ports, which saw a decline in cargo handling during May this year include SMP, Kolkata Port with 15.70 drop followed by Kamarajar Port and Mormugao Port, which witnessed 3.58 per cent and 10.55 decline, as per the IPA. At Kolkata's Syama Prasad Mookerjee Port, the overall traffic decreased by 15.70 per cent during the previous month, it said, adding Kolkata Dock System. (KDS) traffic declined by 7.71 per cent and at Haldia Dock Complex (HDC) by 18.32 per cent. IPA attributed the fall in cargo handling traffic at KDS to reduction in coking and other coal by -71.75 per cent and finished fertilizers by 43.53 per cent, among others. The major ports' operators body also said that during May 2024, Deendayal Port handled the highest traffic volume at 12.71 MT and commanded a 17.64 per cent share of the total cargo handled across 12 ports. This was followed by Paradip Port with 12.64 MT and 17.55 per cent share, Visakhapatnam Port at 8.57 MT with 11.90 per cent share, JNPA at 7.45 MT with 10.34 per cent share and Mumbai Port at 5.79 MT with 8.04 per cent share.
Source: The Economic Times
India plans to set up a new shipping company to expand its fleet by at least 1,000 ships in the next decade, as Asia's third-largest economy seeks a bigger chunk of revenue from surging trade, two government officials said. The South Asian nation is spending billions of dollars to refurbish infrastructure in its race to become a world-class manufacturer with Prime Minister Narendra Modi, who won a third term this week, aiming for it to be a developed nation by 2047. The yet-to-be-named firm will be jointly owned by state-run companies in the oil, gas and fertiliser industries, which would provide it with business, along with the state-run Shipping Corp of India and foreign companies. India's oil and shipping ministries did not respond to requests for comment. The aim is to reduce freight outgoings to foreign firms by at least a third by 2047, said the sources, who sought anonymity as they were not authorised to speak to the media. "Current estimates show freight costs will rise to $400 billion as we boost our exports and imports by 2047," said one of the sources, who has direct knowledge of the matter. Indian companies paid freight costs of $85 billion in the financial year 2019/20, of which $75 billion was paid for use of foreign vessels, the source added. The turn to foreign carriers comes as India's shipping fleet has not kept pace with its surge in trade, including imports of energy and exports of refined oil products. India has a fleet of about 1,500 large vessels including tankers, gas carriers container ships and dry bulk carriers, the sources said. In January India's oil and shipping ministries agreed that all state-run oil companies and the planned company work together, a government document seen by Reuters showed. They would draw on the expertise of the Shipping Corp of India in "tanker acquisition and ownership, operations and other areas of shipping", it added. On May 16, the two ministries formed a joint working group of government and industry officials to devise a roadmap, the document showed. The new firm will be based at GIFT IFSC, a financial centre in Modi's western home state of Gujarat that aims to compete with hubs such as Singapore by offering fiscal incentives and a more streamlined regulatory environment. It would draw seed capital from a maritime development fund of roughly 300 billion rupees ($3.6 billion) the government plans to set up in a tie-up with major port authorities, the first source said. To secure low-cost, long-term loans for financing ship-building, the two ministries want state-run companies to sign 15-year charter deals with the new firm. That represents a shift from the current practice of booking specific voyages or one- or two-year charters. "In return the state-run companies can also become stakeholders in the new ship owning and leasing entity," the source added. "The plan is to consolidate the government-side cargo demand from other ministries, mainly the energy and fertiliser cargoes."
Source: Money Control
The bonafide grievances of traders related to the highly-complicated GST system must be addressed by the new government to be formed at the Centre, said Agro Food Chamber of Commerce and Industry. In a statement, its president S. Rethinavelu said that despite several representations by various trade bodies throughout the country, the previous government did not take steps to address the GST issues. “The GST system, which was brought in to do away with ‘tax terrorism,’ had itself become one, driving away thousands of traders from their livelihood, especially in Micro Small and Medium Enterprises (MSME) sector,” he said. while taking care of big corporate entities, the interests of MSMEs, which generate 40% of the employment, were brushed off. This led to many MSME units downing shutters, thereby resulting in unemployment, he said. Commenting on the drawbacks of single party rule in the Centre, he said that most of the time step-motherly treatment was meted out to the States where opposition parties ruled. “For instance, some of the long-pending demands such as upgrading of Madurai airport to international status and expediting the construction of Madurai AIIMS were not listened to by the previous government,” he said. Besides, the new government should also address issues of farmers. Immediate steps should be taken to rejuvenate tanks, lakes and ‘kanmois’ by desilting them as low water storage was the main reason for the low yield experienced by farmers, Mr. Rethinavelu said.
Source: The Hindu
In an effort to facilitate trade, Central Board of Indirect Taxes and Customs (CBIC) will electronically disburse duty drawback amount directly to exporter’s bank account in a transparent and efficient manner with effect from today, 5th June, 2024. The payment of duty drawback amounts into the exporters' accounts will be facilitated through the Public Finance Management System (PFMS) automatically. This is another initiative of the CBIC towards paperless Customs and enhanced trade facilitation. This new functionality is expected to reduce time taken for payment of drawback amount by eliminating manual intervention in the drawback disbursal mechanism and increase transparency. Duty Drawback under section 75 of the Customs Act, 1962 rebates customs duty chargeable on any imported materials or excisable materials used in the manufacture of export goods. Duty Drawback claims are processed through the Customs Automated System (CAS), enumerated in a scroll, Computerised Customs Drawback Advice (CCDA) is printed and sent to the Authorised Bank branch along with supporting single cheque of consolidated amount for payment of duty drawback amounts into the exporters' accounts. This contributes to the delay in the disbursal of duty drawback. The CBIC continues to play a key role in India's efforts to improve ease of doing business through trade facilitation and having fully implemented the WTO Trade Facilitation Agreement (TFA), CBIC now aims to undertake next generational Trade Facilitation reforms adopting the TFA plus approach.
Source: PIB
India, a widely diverse country of over 1.4 billion people and a self-proclaimed fast-growing major economy, has multiple challenges confronting it. Even as the new government prepares to assume office, its economic agenda is cut out. The period immediately after a national election is perfect for tough policy decisions, and vital momentum can be generated early on in the electoral cycle. That is the good news. On the flip side, imminent coalition politics will render such action a little harder. On balance, I imagine change will occur, but more slowly. India is set to overtake Germany and Japan shortly in aggregate GDP to emerge as the third largest global economy after US and China, a feat already accomplished in 2011 if GDP is measured in Purchasing Power Parity (PPP) dollars. With more than 7.5 percent real GDP growth in the last three financial years, India is now the fifth largest economy in the World GDP ranking list along with endless bragging rights (See Table 1) Projections are also optimistic about the future. The International Monetary Fund (IMF) in April 2024, raised India’s GDP growth projection for FY25 by 30 basis points to 6.8 percent on the back of strong domestic demand, rising public infrastructure spending, and a swelling of the working-age population. The World Bank too forecast growth at 6.6 percent for FY25.
Source: Money Control
India’s Prime Minister Shri Narendra Modi has stated that India’s greatest textile strength is its ability to connect the glorious history of Indian tradition with today’s talent technology with traditions. It’s a thread that brings together style, sustainability, scale, and skill. Julie Holt, global exhibition director for the upcoming Global Sourcing Expo Sydney, who recently attended Bharat Tex in New Delhi, says she couldn’t agree more with the sentiment that India’s textile superpower is that of its strong history of various textile traditions, which includes hand wovens and handlooms, hand dyes and intricate beadwork. “These skills are painstakingly honed and passed down through generations to give Indian textile products a unique look and feel that cannot be recreated with the use of only modern manufacturing techniques.” “Furthermore, at Bharat Tex it was clear that there are some exciting new developments and focus across the entire value-chain in India which are going to further propel India’s growth in the textile sectors in coming years.” Many Indian export councils and trade organisations have historically had a strong presence at the Global Sourcing Expo in Australia Melbourne and Sydney. This year is the second year that the event is held biannually and the upcoming edition to be held at the Sydney International Convention Centre from Wednesday 12 to Friday 14 June 2024 will feature another strong showing by India. “As a truly global event, we welcome the participation of a broad range of Indian companies and participation by The Federation of Indian Export Organisations and Council for Leather Exports India. Prime Minister Modi has further emphasised the importance of the ‘5 Fs’ in India’s textile value chain: Farm to Fibre, Fibre to Factory, Factory to Fashion and Fashion to Foreign, signifying the crucial role that exporting and participation in international exhibitions like the Global Sourcing Expo play in reducing the distance between local manufacturers, artisans and the larger market. The government has also introduced funding and sponsorship schemes that allow smaller companies to participate in the Global Sourcing Expo under the umbrella of the various trade association pavilions, which see dozens of manufacturers and artisans showcasing their products to buyers from New Zealand and Australia. This platform also provides a golden opportunity for exhibitors to foster international networks and explore potential business and creative collaborations with the goal of boosting textile exports from India to global markets.
India has a sustainability advantage
Speaking to the long history between Indian export and trade organisations and the Global Sourcing Expo, Julie shares that the Australian market is attractive for a wide range of reasons. “In many cases, cultural familiarity and strong diaspora networks help encourage trade between our two countries and Australia is seen as a strong and fashion-conscious market with a high spending propensity on fashion. It is also well understood that there is a paradigm shift in sourcing and that the sourcing map is changing rapidly.” “Exporters in India and other countries also understand that Australian consumers are very focused on sustainability and quality, and the demand for ultra-fast fashion is beginning to wane. Instead, consumers are shifting toward quality fabric, materials and production handmade and unique fashion, all elements that have traditionally and proudly been associated with India,” she adds. Sustainability is at the forefront of the 2024 Global Sourcing Expo, recognising the growing calls from consumers for ethical production practices and traceability in the supply chain. Here, Julie believes that India’s wealth of raw materials, particularly natural fibres such as cotton, silk and jute, and preference for traditional manufacturing processes will be a significant advantage. “Sustainability and eco-friendly practices are front and centre for Indian companies, recognising the opportunity to not only help the market, but also capitalise on new marketing opportunities by following sustainable practices.” Finally, Julie shares that while the Global Sourcing Expo can be seen as a gateway to entering the Australian and New Zealand markets, the benefits of attending aren’t limited to unlocking new business opportunities. “Global Sourcing Expo also has an educational aspect, offering a wealth of practical resources and information. Participants will gain valuable market insights into the Australian and New Zealand markets and understand the latest trends, consumer preferences and regulatory requirements,” she concludes. Global Sourcing Melbourne held 19 – 21 November at the Melbourne Convention and Exhibition Centre is also on track to showcase the largest participation by Indian companies since its inception. It is exciting that India is embracing both the Sydney and Melbourne editions understanding the opportunities that the two major markets of Australia confer. It also enables continuity for both exporters and buyers and will further amplify the opportunities for sourcing from India.
Source: Fibre2fashion
Surat: The largest man-made fabric (MMF) hub in the country is grappling with increasing competition from China, as fabric exports from the Chinese textile industry to India surged by 8.79% in the first quarter of 2024. Industry leaders attribute this rise to the Quality Control Orders (QCO) imposed on raw materials, including yarns, which have inadvertently favored Chinese exporters.
Surge in Chinese Textile Exports
In the first quarter of this year, China exported textiles worth $684 million to India, with fabric exports constituting 64.75% of the total, amounting to $442.863 million. This marks an 8.79% increase compared to the $407.090 million exported in the same period last year. Yarn exports from China to India, valued at $198.331 million, represented 29% of the total textile exports, while fibre shipments stood at $42.805 million, making up 6.26% of the total.
Impact of Quality Control Orders
Ashish Gujarat, former president of the Southern Gujarat Chamber of Commerce and Industry (SGCCI), pointed to the QCO on raw materials in India as a key factor driving the surge in fabric imports from China. "The QCO on raw material in India has resulted in the increase of fabric export from China to India. We are strongly demanding that the Central Government impose QCO on fabric as well to prevent China from destroying the indigenous textile sector in India," said Gujarat
Industry experts believe that the QCOs have given Chinese manufacturers an edge, allowing them to export fabric to India at competitive prices, thereby undermining the domestic textile industry.
Decline in Yarn and Fibre Imports
While fabric imports have risen, yarn and fibre imports from China have seen significant declines. Yarn shipments to India dropped by 43.23% in the first quarter of 2024, falling from $349.329 million in the same period last year to $198.331 million. Similarly, fibre exports decreased by 23.63%, down from $56.052 million in January-March 2023 to $42.805 million this year.
Comparative Export Data
In 2023, China's total textile exports to India were valued at $3,594.384 million, a slight decrease from $3,761.854 million in 2022. Fabric exports accounted for $1,973.938 million, representing 54.92% of the total exports. Yarn shipments were valued at $1,409.318 million (39.21%), and fibre exports stood at $211.128 million (5.87%). Despite the overall decrease, fabric exports to India saw a notable 6.21% decline compared to the $2,104.681 million exported in 2022. This trend underscores the shifting dynamics within the textile trade between the two countries.
Challenges for Indian Textile Industry
The rise in Chinese fabric exports highlights a broader challenge for India's textile sector, which is struggling to compete on a global scale. Indian fabric and apparel exports lag behind smaller countries like Cambodia and Vietnam, further emphasizing the need for strategic interventions. Industry leaders are urging the Central Government to extend QCOs to finished fabrics to safeguard the domestic textile industry. They argue that such measures are essential to prevent market disruption caused by low-cost Chinese imports and to support the growth of indigenous manufacturers.
Source: Free Press Journal
New orders returned to growth in the US manufacturing sector in May, supporting a faster expansion in production midway in the second quarter (Q2) of the year, according to S&P Global. Meanwhile, business confidence picked up and positive expectations regarding the future for the sector contributed to the hiring of additional staff, a renewed rise in purchasing activity and a build-up of stocks of finished goods. The rate of input cost inflation quickened to the fastest in the month in just over a year, with firms raising their selling prices in response The seasonally adjusted S&P Global US manufacturing purchasing managers’ index (PMI) rose to 51.3 in May, after having posted in line with the 50 no-change mark in April. The reading signaled a modest improvement in the health of the manufacturing sector, the fourth in the last five months. May saw a renewed expansion in new orders, following a modest reduction in April. While customer demand improved during the month, overall economic conditions remained muted, according to respondents in an S&P Global survey. As such, the rate of expansion in new orders was only marginal. In fact, the rise in total new business was softer than that seen for new export orders, which increased at the fastest pace in two years. Firms reported signs of improving demand in Europe, alongside growth in new orders from Asia, Canada and Mexico. The increase in new orders, alongside better material availability, led manufacturers to expand production at a solid pace in May, with the rate of growth quickening from that seen in April. Firms were also confident that production will rise over the coming year, thanks to optimism that the renewed expansion in new orders will be sustained in the months ahead. Plans to increase capacity also contributed to positive sentiment, S&P Global said in a release. Optimism regarding future new orders and production requirements encouraged manufacturers to take on additional staff, raise purchasing activity and accumulate stocks of finished goods. Employment increased for the fifth consecutive month in May, and at the fastest pace since July 2023. Meanwhile, the rise in purchasing activity in May was the first in three months, but only marginal. Stocks of finished goods on the other hand increased for the second month running, and to a larger extent than in April. Expansions to capacity and recent muted demand conditions meant that manufacturers continued to lower their backlogs of work. The pace of depletion was only slight, however, and the weakest since February.
Source: Fibre2fashion
Operating conditions improved solidly across the manufacturing sector in the Association of Southeast Asian Nations (ASEAN), according to May purchasing managers’ index (PMI) data from S&P Global. Quicker expansions in both output and incoming new orders were recorded. Growth in production requirements supported a stronger uptick in purchasing activity, which in turn led to a greater accumulation of pre-production inventories. However, improving underlying demand trends also resulted in an intensification of inflationary pressures, which hit a three-month high, S&P Global said in a release. The headline S&P Global ASEAN manufacturing PMI printed a 13-month high of 51.7 in May, up from 51 in April, signalling a sustained and stronger improvement in the health of the ASEAN manufacturing sector. A quicker rise in new factory orders was recorded in May, driven by domestic demand. The rate of growth was the fastest in 13 months. However, a notably softer contraction in new export sales was also observed in the latest survey period. Manufacturers across ASEAN further increased their production volumes. In fact, output was raised at a strong rate, which was the most marked since April 2023. Input buying rose at a sharp pace during May. The upturn was the second-strongest since the current run of expansion began in November 2023, and underpinned a stronger rise in pre-production inventories, after growth broadly stalled in April. Holdings of finished items depleted again in the month. The downturn gathered pace and was the strongest in the year to date, indicating that some manufacturers opted to sell directly from their holdings to meet production requirements. Cost burdens and output charges rose at the strongest rates since February. Employment fell for the second straight month in May. The downturn moderated slightly since April and was marginal overall. At the same time, backlogs rose for the third successive month, the latest upturn being the most pronounced in a year. The data was indicative of rising capacity pressures, with ASEAN manufacturers struggling to keep on top of their growing workloads, especially as employment remained in retrenchment mode. Looking ahead, ASEAN manufacturing companies remained optimistic about their overall prospects for higher output in the year ahead. Confidence levels strengthened, after having slipped to a nine-month low in April.
Source: Fibre2fashion
French manufacturing output increased by 0.4 per cent month on month (MoM) in April this year after a 0.4-per cent drop in March, according to the National Institute of Statistics and Economic Studies (INSEE). Output in the whole industry rose by 0.5 per cent MoM in the month after a 0.2-per cent decline in the preceding month. Production bounced back in other manufacturing industries in April, seeing a rise of 0.9 per cent after a 0.4-per cent drop in March. Manufacturing output between February and April was higher than that of the same months of the previous year (plus 0.7 per cent). It increased more moderately in the whole industry (plus 0.3 per cent). Manufacturing output of textiles, apparel, leather and related products increased by 9.1 per cent MoM in April and fell by 0.1 per cent quarter on quarter (QoQ) between February and April this year, an INSEE release said. In the context of high electricity and gas prices invoiced to firms given the contracts agreed in 2022 and 2023 for 2024, energy-intensive industries are particularly exposed to rising production costs, which may affect their output, INSEE noted.
Source: Fibre2fashion
