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IBTEX No. 072 of 2013 MAY 03, 2013

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NEWS CLIPPINGS

INTERNATIONAL NEWS

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1 Pakistan: ICAC forecasts 5pc decline in world cotton production

2 Pakistan: Cotton spot rate declines

3 Pakistan: Mauritius to open consulate in Pakistan’s textile hub

4 Bangladesh: SPECIAL REPORT - How textile kings weave a hold on Bangladesh

5 Bangladesh textile factories resume production after post-accident strike

6 Taiwan: APEC meet proposes low-carbon solutions for textile sector

7 Switzerland: Global yarn output plummets in Q4 - ITMF

8 Sri Lanka exports of garments and textiles up, trade deficit down in February

9 Germany: Bremen witnesses steady inquiries for ELS cotton

10 Canada may extend no-tariff provision to LDCs by 10 years

NATIONAL NEWS

1 TEA urges centre to remove drawback for cotton yarn

2 Fabrics & Accessories show and HOMTEX-2013 set to open from May 23

3 Cotton production in Gujarat dips by 30 lakh bales

4 Indian govt may not relax sourcing norms for IKEA

5 Anand Sharma asks for more market access to exporters in China

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www.texprocil.org.in Page 2

INTERNATIONAL NEWS ICAC forecasts 5pc decline in world cotton production

ISLAMABAD: The International Cotton Advisory Committee (ICAC) has forecast five percent decrease in world cotton production during the crop season 2013-14.

According to ICAC report released on Thursday, an estimated 34.1 million hectares of cotton is being harvested during 2012-13, which is five percent below the previous season.

While another five percent drop to 32.2 million hectares is expected in 2013-14 and world production to drop by another six percent to 24.6 million tons during 2013-14.

The global cotton production is estimated to go down by five percent from 27.8 million tons to 26.3 million tons during this season, the report said.

From 2012-13 to 2013-14, cotton production in China and the United States each has been forecast to fall by 700,000 tons to 6.7 million tons and three million tons, respectively.

Meanwhile, cotton production in India is forecast to decline by 170,000 tons to 5.7 million tons as farmers continue to switch out cotton for more profitable alternatives, it said.

China’s production decline is also attributed to labour shortages as farm workers migrate to cities searching for urban employment.

Global cotton mill use is rising at an estimated seven percent from 22.1 million tons last season to 23.7 million tons in 2012-13 and mill use is projected to rise by another two percent to 24.3 million tons in 2013-14.

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Mill use in China is falling to an estimated 8.3 million tons in 2012-13 as the national cotton policy remains unclear and another drop of 300,000 tons to eight million tons in 2013-14 is expected, the lowest in 10 years.

Imports by China are estimated at 3.7 million tons in 2012-13 and three million tons in 2013-14 and because of the Chinese national cotton reserve policy, a seismic shift in the location of world cotton use is underway. Decreased mill use in China will be partially offset by increases in India, Bangladesh, Turkey and Pakistan, it added.

The world cotton stocks are forecast to rise to 18 million tons by July 2014, which will represent approximately nine months of world mill use, the report said.

However, the ending stocks-to-use ratio in the world minus the Chinese reserve will drop to 37 percent in 2012-13 and to an estimated 30 percent in 2013-14, posing a potential challenge to the global supply of cotton next season, it added.

Assuming the Chinese government adheres to the current reserve policy, the Cotlook A Index is projected to average 88 cents and 122 cents per pound in 2012-13 and 2013-14, respectively.

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Published in thenews.com.pk/- May 03, 2013

***************** Cotton spot rate declines

The Karachi Cotton Exchange (KCE) pushed down its cotton spot (average) rate by Rs100 per maund (37.324 kilograms) to Rs6,500 per maund on Thursday in line with the falling commodity prices at the local markets. “The KCE decreased its spot rate in line with the downward trend at the local markets,” Naseem Usman, a broker at the KCE, said.

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The demand for cotton and cotton yarn was declining continuously across the world, including Pakistan, he said.

Meanwhile, traders exchanged 3,300 bales (155 kilograms each) at Rs6,000 to Rs6,600 per maund as compared to 1,600 bales traded at Rs6,300 to Rs6,600 per maund a day ago, the KCE reported.

Accordingly, Sadiqabad traded 1,800 bales at Rs6,000 to Rs6,600 per maund; Hasilpur traded 600 bales at Rs6,000 per maund; Sui traded 400 bales at Rs6,500 per maund; Saleh Pat traded 300 bales at Rs6,300 per maund; and Shahdadpur traded 200 bales at Rs6,000 per maund, it said.

At New York cotton market, May futures contract declined by 3.44 cents per pound to 82.09 cents, while July futures contract fell by 3.60 cents per pound to 83.87 cents, the KCE reported.

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Published in thenews.com.pk/- May 03, 2013

***************** Mauritius to open consulate in Pakistan’s textile hub

Viewing Pakistan’s Faisalabad as a vibrant textile city with great business opportunities, Mauritius Government has decided to set up its consulate in the city, just like it has in Karachi and Lahore, High Commissioner of Mauritius Mohammad Rashad Daureeawo has said.

Speaking to the Faisalabad Chamber of Commerce and Industry (FCCI) members, Mr. Daureeawo said they eye great prospects for trade and joint ventures between the two nations, and hence Mauritius has decided to launch a consulate in Faisalabad too.

Calling on the FICCI members to send a delegation to Mauritius to explore trade opportunities by holding trade talks between entrepreneurs of the two countries, he said Mauritius even has an access to and a strong hold in the dynamic African market, with several pro-business policies in place.

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He invited Pakistani industrialists to enter into joint ventures with their counterparts in the Mauritius Exclusive Economic Zones, which would earn them an open access to export their goods to African countries.

FCCI acting president Muhammad Boota said Pakistan shipped around US$ 37 million worth of goods to Mauritius in 2011, and imported goods worth US$ 3.5 million from there.

He noted that according to a trade analysis, in spite of good opportunities and potential of both the countries, bilateral trade between the two economies has weakened over the past few years. Hence, it is expected of both the Governments to make efforts to once again boost the bilateral trade, he added.

He said Pakistani products, especially textiles, well-match the global quality norms and has good potential for further making inroads in the Mauritius market.

Recently, negotiations have been launched by the Mauritius-Pakistan Joint Working Group to expedite inking of a free trade agreement (FTA) aimed at boosting trade between the two nations.

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Published in Fibre2fashion - May 02, 2013

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SPECIAL REPORT - How textile kings weave a hold on Bangladesh

Bangladesh's garment boom has made Mohammad Fazlul Azim a wealthy man. Over three decades his empire has grown from a single factory to a string of plants that employ 26,000 workers and clock up an annual turnover of about $200 million.

Azim, who is also a member of parliament, has benefited from government policies to grow the industry into a global powerhouse. His elegant home here in

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Dhaka is a haven of luxury with an outdoor swimming pool, walled off from the chaos of the capital's streets.

But he has a complaint: His costs have almost doubled over the past several years. It's now time for the big Western brands he supplies to pay more for their clothes, and stop squeezing his margins, he declares.

"The buyers have not given anything. They just say 'increase your productivity'," Azim said in an interview.

In workshops across this South Asian country of 160 million people, however, few are sympathizing with the textile tycoons and their bottom lines. Western retailers are powerful, but so too are the garment moguls.

Thanks to their political clout and now a new Industrial Police force that crushes dissension at their plants, labor activists say, it is the factory owners themselves who keep garment workers' wages lower than anywhere else in the world - and all too often get away with lax safety standards.

The collapse on April 24 of an eight-story building near Dhaka that housed several garment factories was a harrowing reminder of the collective failure - by the authorities, owners and buyers - to ensure that cheap doesn't mean dangerous. The Rana Plaza tower fell like a pack of cards. More than 430 workers were killed and scores remain missing. It was the third deadly incident in six months to raise questions about worker safety and labor conditions in the poor South Asian country, which relies on garments for 80 percent of its exports.

Until now, there has been little pressure here to improve safety conditions and wages for the 4.5 million Bangladeshis working in the industry. That inertia stems, in part, from how deeply the industry has woven itself into the power structure. More than 30 garment industry bosses are members of parliament, accounting for about 10 percent of its lawmakers. Other owners, like Mohammed Sohel Rana, the owner of the building that collapsed, have strong political ties: He was a local leader of the youth wing of the ruling party, the Awami League.

Rana was arrested trying to escape across the border to India and faces charges of unlawful construction causing deaths. Bangladesh officials say his eight-storey complex was built on swampy ground without the correct permits.

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"At least 50 percent of the members of parliament have business links of some sort," says Babul Akhter, a leader of the Bangladesh Center for Workers Solidarity, an organization that works with labor unions. He alleges that many of these politically connected garment makers take advantage of their their clout to disregard the minimum wage levels stipulated under the law.

Activists such as Akhter who campaign for safer factories and better wages are often treated as enemies of the state in a country whose economy would be devastated if Western brands pulled out.

One prominent campaigner, Aminul Islam, paid the price last year: Bearing signs of torture, his body was found one day many miles from where he was last seen. The government dismisses allegations it had a hand in the killing of Islam, but he had been detained and tortured by security forces in the past. His killing is still under investigation, and no arrests have been made in the case.

Akhter himself was arrested for inciting mob violence and beaten in jail three years ago after a bout of labor unrest; today, he says he still has charges pending against him from that time, and is followed by unknown men who, he suspects, are intelligence agents.

"There is no reason to follow him," said Mainuddin Khandaker, the second-ranking bureaucrat in the home ministry. "We don't have any such reports."

LAST OUTPOST OF CHEAP

As pay levels rise in traditional factory-floor nations, Bangladesh stands as a last outpost of cheap labor, an advantage that has helped lift it to number two in the global ranking of garment exporters, behind China.

Bangladesh ranked last in minimum wages for factory workers in 2010, according to World Bank data, behind Cambodia, the last country added to the global supply chain in 2000.

"It's the lowest of the low in terms of wages," says Malte Luebker, the International labor Organization's senior wage specialist for Asia-Pacific. "Wages are the key drawing point."

How Bangladesh remains so competitive is, in part, the story of powerful First

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World retailers playing factory owners, such as Azim, off each other to secure the lowest price.

It is also the story of a government that stifles labor activism both to protect the country's economic lifeline and to please business magnates who have become part of the political and social establishment.

It's a set-up that suits everyone, including customers in the troubled economies of Europe and North America who want discounted T-shirts and trousers from big brands such as Wal-Mart (WMT.N), Target (TGT.N), H&M (HMb.ST) and Loblaw (L.TO).

What makes it all possible is the Bangladeshis who make the clothes, many working in hazardous conditions and some earning less than $2 a day.

'NEXT ELEVEN' ECONOMY

The garment industry is emblematic of Bangladesh's rise as an emerging economy in recent years. Once the eastern wing of Pakistan, Bangladesh won independence after a bloody war in 1971 that left its economy shattered. The disaster-prone country became a byword for desperate poverty in the years that followed, dependent on foreign aid as it struggled with political instability, corruption and over-population.

Today, thanks in large part to the explosive growth of its garment industry, Bangladesh is included in the so-called "Next Eleven" economies, a term Goldman Sachs coined to describe countries such as Indonesia and Iran, Mexico and South Korea that have the potential to become some of the world's biggest emerging economies this century.

Until 2004, the Multi-Fibre Agreement (MFA) imposed quotas on developing nations' textile and garment exports to rich nations. It gave Dhaka and its rivals fixed market shares; when it expired at the end of 2004, Bangladesh braced for ruinous competition, particularly from China.

Instead, its apparel exports leapt, tripling after the expiry of the MFA to $19 billion in financial year 2011-12. That has narrowed the export gap with China. Labor shortages, wage inflation and a shift to higher-value manufactured products have made China less attractive as a source for garments.

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The dismantling of quotas led to a "fast-money culture" that spawned a new class of garment moguls who found their way into politics and the media, said the representative of a big American retailer in Dhaka.

Western chains can retail clothes from Bangladesh for up to 10 times factory-gate prices. They began piling into the country in their never-ending quest for rock-bottom costs. Directly or indirectly, they have been sometimes doing business with Sohel Rana and the garment moguls.

WAGES BEGIN TO RISE

The big retail chains, offering big-volume orders, are spoiled for choice. Bangladesh has more than 3,500 garment factories. Trade pacts offering favourable access to Bangladeshi goods also help: Europe takes 60 percent of the country's apparel exports, the United States 23 percent.

Set against those advantages are the congested roads, the lack of a deep-sea harbour and crippling power shortages. Grinding political unrest regularly leads to general strikes that paralyze the economy and add pressure on factory owners. Weeks before the Rana Plaza collapse, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said strikes and unrest may have cost the country $3 billion worth of potential new business.

Garment workers won a victory of sorts in 2010 after months of violent protests over pay and conditions. The government raised the monthly minimum wage by 80 percent to 3,000 takas. Only a small fraction of workers are actually paid the minimum, however: Several factory owners said the average wage in their factories is around 5,000 takas.

That's still much lower than in China, where the minimum wage for garment workers ranges from $154 to $230 per month, and in Cambodia, where the monthly base is $80, according to the International labor Organization.

Drawn by the lower costs, even Chinese garment businesses are moving to Bangladesh. Cherry Body Fashions, a lingerie and swimwear factory in an export-processing zone outside Dhaka, is a stark illustration of the shift. General Manager Wallace

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Chu says 10 years ago, the company's owner, a Hong Kong firm, had 3,500 workers in China. Now it employs just 200 there - and 2,500 in Bangladesh.

"My boss will be moving more and more business here to survive," Chu said.

RACE TO BOTTOM

The Western brands regularly press the Bangladeshi government and the garment manufacturers association to ensure factories are safe and workers are paid decent wages. But, says Mikail Shipar, the top bureaucrat in the Ministry of Labor and Employment: "They say we should raise the minimum wage, but they are not very eager to raise their purchase rates."

Several plant owners, factory managers and representatives of retailers in Dhaka, none of whom would speak on record about the subject, said the brands are paying less and less. One said a buyer paid him $5.00 per piece for a particular make of shirt in 2011 and then offered $4.50 for the same thing a year later. Another estimated that overall prices have fallen by 40 percent over the past two years.

"They pay you like a beggar and take quality like a king," said Abdul Mannan, who helped open up the industry when he was textiles minister in the early 1990s and now owns more than two dozen factories at home and abroad.

Sometimes buyers refuse to negotiate because they know competition among factory owners for high-volume orders is intense.

"It's not so much the fault of the brands as the employers who are under-cutting each other," said a representative of a large American brand in Bangladesh. "If people are under-cutting each other, of course we take advantage of that - so prices are going down and down and down."

LABOR SUPPRESSION

Labor activists say that just as the brands squeeze their suppliers, factory owners scrimp on the wages they pay - and enjoy the political backing to get away with it. A study by the Fair Wear Foundation, a non-profit lobby group, found that some

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workers were receiving less than the new minimum, nearly a quarter were reassigned to lower pay grades and bonuses were reduced.

Many factory workers live in the squalid back streets of the capital. Among them is Minara, who declined to give her full name. She is one of more than 3.5 million women who work in the apparel industry.

Home for her is a single windowless room she shares with her husband and a 15-year-old daughter. The girl, like her mother, is a helper in a factory measuring collar sizes and arranging bundles of cloth. Together, even with overtime, Minara and her daughter barely earn more than $90 a month, half of which pays for rent. Standing in her doorway and looking out at a toilet and kitchen area that she shares with neighbours, Minara says that the price of a shirt in Europe or the United States is about what she earns in a month. "But if the government took the situation seriously, and gave orders to the owners, then it would all work better," she said.

The government has helped keep a cork on labor activism. In 2010, in the midst of the labor violence that year, it set up a 2,990-strong Industrial Police force to collect intelligence and prevent unrest in factory zones.

"If any unions demonstrate or raise their voice, the industrial police will come and tell them to stop protesting," said Akhter, the labor activist. "If they don't stop, they are attacked and beaten with sticks."

The government denies that unions are suppressed. It says many activists are politically motivated and, backed by non-governmental organizations in the West, deliberately stir up social unrest.

"We support the unions and want them to play a greater role," said H.T. Imam, a cabinet member and adviser to the prime minister, told Reuters. "We are quite pro-labor." NO PROSECUTIONS

Azim, the factory owner and lone independent member of parliament, said garment business leaders are "socially connected," but he denied reports they grease the wheels through donations to the main political parties.

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Said one industry official in defence of the owners who are members of parliament: "It's true that many of these people are really big and hold enough power to lobby the government, but I haven't seen them put up one bill or discussion (about the industry) in parliament."

The apparel industry body, the BGMEA, is routinely criticised in the media for protecting its members when accidents happen at factories. Human-rights groups say there has never been a case in which a factory owner was prosecuted over the deaths of workers.

The BGMEA said it discussed safety issues this week with representatives of more than 40 brands, including H&M (HMb.ST), JC Penney (JCP.N), Gap Inc (GPS.N), Inditex (ITX.MC), Levi's, Marks & Spencer (MKS.L), Tesco TES.O, Target (TGT.N), Nike Inc Nike.N, and Primark. The group said in a statement on Thursday the buyers set up a committee "to look at all safety-related issues of apparel units, including their building structure."

In November, scores died in a garment-factory fire, many of them because supervisors ordered workers back to their stations even as an alarm rang and smoke rose through an internal staircase.

The owner of the plant was absolved of blame in the BGMEA's report on the incident. The government said it suspected the fire was an act of sabotage - though that was never proved. Calls for the factory owner to go on trial went unheeded. (Additional reporting by Serajul Quadir in DHAKA; Editing by Bill Tarrant and Michael Williams)

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Published in cottonyarnmarket - May 03, 2013

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Bangladesh textile factories resume production after post-accident strike

Textile production has resumed in Bangladesh after an eight-day shutdown following the collapse of a building housing a clothes factory.

Thousands of workers have gone back to work after the tragedy in a Dhaka suburb prompted a mass strike.

Emergency workers have continued pulling bodies from the debris. At the last count at least 429 people were known to have died in the country’s worst

http://www.euronews.com/2013/05/02/bangladesh-textile-factories-resume-production-after-post-accident-strike/

http://www.euronews.com/2013/05/02/bangladesh-textile-factories-resume-production-after-post-accident-strike/

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industrial accident. Some have been buried unidentified and people are still looking for missing relatives.

The EU has warned Bangladesh, which has duty-free access to its markets, to improve safety standards or face trade sanctions.

Sixty percent of clothes made in the country are sold to Europe. Exports are worth over 14 billion euros a year.

But the accident has highlighted poor conditions and low pay. Most workers are paid barely 30 euros a month.

Britain’s Primark and Canadian retailer Loblaw, whose Joe Fresh clothing was made at the collapsed building, have promised to compensate victims’ families.

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Published in www.euronews.com - May 02, 2013

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APEC meet proposes low-carbon solutions for textile sector

The two-day international conference on low-carbon solutions for the textile industry in Asia-Pacific Economic Cooperation (APEC) economies held in Taipei, Taiwan, saw several consensus being reached by the APEC members for green solutions in the region.

The programme focusing on intelligent low-carbon operations for textile firms in APEC region is Taiwan’s only APEC-funded project that the organization approved last year, The China Post reported.

Around 60 experts from public and private sector of Taiwan, and 20 other representatives from 11 member countries shared their views on diverse topics at the APEC-funded conference with motto “innovating for sustainability”.

The global event began with sharing of ideas and experiences with regards to the Low Carbon Inventory Questionnaire (LCIQ). Several participants shared their success stories on institutional investors risk assessment of investment targets and supply chain and sustainable policies.

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The next session hosted discussions over future of the industry in the wake of low-carbon economy and sustainable development. The session also proposed innovative business models for the textile industry.

After pondering on several issues, the participants agreed on several matters like simplifying computation of LCIQ and other tools used for determining carbon emissions of textile firms, and applying uniform norms for various countries.

They also agreed that the environmental and social equity and corporate governance assessment report of a textile firm shall be considered as one of the determining factors, while taking institutional investment decision.

The participants also agreed on adherence of a systematic manner for evolving new solutions for low-carbon textile items.

They also agreed that the industry should focus more on finding solutions to boost the profitability of business, while not compromising on environmental safety.

Lastly, the conference also arrived at a consensus for allocating more resources towards research and development for developing a low-carbon economy, and that APEC shall serve as a base for integrating industrial innovations in the region.

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Published in Fibre2fashion- May 02, 2013

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Global yarn output plummets in Q4 - ITMF

Output of global yarn production plummeted in Q4/2012 in comparison to the previous one due to lower output in Asia, North and South America, while production in Europe increased.

Also year-on-year global yarn production dropped as a consequence of lower production in Asia and North America and despite higher output in Europe and South America. Global yarn stocks rose in Q4/2012 in comparison to the previous quarter mainly due to higher stocks in Asia and Europe while inventories in South America fell.

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On an annual basis global yarn inventories were down due to lower stocks in all regions. Yarn orders in Q4/2012 were down both in Europe and Brazil in comparison to Q3/2012. Also on an annual basis yarn orders dropped both in Europe Brazil.

World fabric production increased in Q4/2012 inspite of lower output in South America due to increased production levels in Asia and Europe. Also year-on-year global fabric production was up with contributions from all regions.

Global fabric stocks fell slightly in in comparison to the previous quarter as a consequence of lower inventories in South and North America and despite slightly higher ones in Europe and Asia. Year-on-year fabric stocks decreased due to a reduction of stocks in all regions with the exception of Asia. Fabric orders decreased both in Europe and Brazil in Q4/2012 and also year-on-year.

The estimates for global yarn and fabric production in the 1st quarter 2013 compared to the 4th quarter of 2012 are positive in Asia and South America and stable in Europe (estimates for China were not available).

The outlook for global yarn and fabric production in Q2/2013 is also positive. Regional-wise Asia is expecting higher yarn and fabric production levels, while the outlook in Europe is slightly negative for yarn and fabric production. In South America the outlook for both yarn and fabric production is stable.

In comparison with the previous quarter, world yarn output dropped in Q4/2012 by -20.2% as a result of lower production in Asia (-21.7%). This decline was a consequence of lower output in China alone (-26.4%), whereas output in Japan, (+7.9%), Taiwan, China (+3.1%), Pakistan (+2.1%) and India (+0.8%) rose.

Yarn production fell in North America (-7.0%) as well as in South America but increased in Europe (+7.2%). Year-on-year global yarn production decreased by -15.2% with output down in Asia (-16.6%) and North America (-7.6%) and despite higher production in South America (+10.6%) and Europe (+3.0%).

Compared with the previous quarter global fabric production rose by +7.4% in Q4/2012 as a consequence of higher output in Asia (+9.4%) and Europe (+7.7%), while South America recorded a reduction of -15.0%. In comparison to Q4/2011 world fabric production was up by +1.1% with all regions contributing to this increase (Europe: +3.6%, South America: +1.3% and Asia: +0.7%).

Global yarn inventories rose by +1.2% in Q4/2012 compared to the previous quarter with both South America (+5.6%) and Asia (+0.8%) recording higher yarn inventories, while stocks fell in Europe by -0.6%. On an annual basis global yarn stocks dropped by -9.1%, a consequence of lower stocks in Asia (-15.4%), Europe (-7.1%) and South America (-3.0%).

Global fabric stocks were down by -1.8% due to lower inventories in South America (-6.3%), and North America (-1.3%), while inventories in both Europe and North America were practically unchanged (+0.2% and +0.1%, respectively).

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Year-on-year, global fabric inventories decreased by -2.2%. This was due to lower fabric stocks in North America (-11.3%), Europe (-7.2%) and South America (-5.3%) and despite higher fabric stocks in Asia (+0.7%).

Yarn orders in both Europe and Brazil were down in Q4/2012 compared to the previous one by -6.5% and -14.1%, respectively. Also year-on-year yarn orders declined both in Brazil and Europe by -14.1% and -6.7%, respectively.

In Brazil and Europe fabric orders decreased in Q4/2012 by -26.4% and -1.2%, respectively. On an annual basis fabric orders fell with Brazil recording a reduction of -13.4% and Europe a drop of -6.5%.

International Textile Manufacturers Federation HOME


***************** Sri Lanka exports of garments and textiles up, trade deficit down in February

May 02, Colombo: Sri Lanka's exports of garments and textiles, which have a significant share of around 40 per cent in total exports, increased on an year-on-year basis, by 8.8 percent, in February 2013, the Central Bank said today.

Although overall export earnings declined by 2.9 percent to US$ 798 million in February this year, the earnings from exports of garments and textiles rose to US$ 371.6 million, according to the External Sector Performance released Thursday for February 2013.

Expenditure on imports also declined by 9.3 percent, year-on-year, to US$ 1.433 billion in February 2013.

Accordingly, the trade deficit for the first two months of 2013 declined by 20.3 percent, year-on-year, to US$ 1.424 billion.

Earnings from exports declined as earnings from both agricultural exports and industrial exports declined while earnings from exports of agricultural commodities declined mainly as a result of lower earnings from rubber and coconut exports, the Central Bank said.

Decline in imports of refined petroleum products, transport equipment, wheat, vehicles as well as dairy products have made a significant contribution towards the decline in import expenditure in February.

The multi-pronged policy strategy implemented by the government and the Central Bank during the first half of 2012 to curb the widening trade deficit has continued to help reduce the deficit in the current account, the Bank said.

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Meanwhile, tourist arrivals to the country increased by 11.6 per cent in the first two months of 2013 while earnings from tourism grew by 20.7 percent to US$ 103 million.

Workers' remittances grew 4.2 percent amounting to US$ 490 million in February 2013.

Total international reserves which include gross official reserves and foreign assets of commercial banks, amounted to US$ 8.144 billion by end February 2013.

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Published in www.colombopage.com- May 02, 2013

***************** Bremen witnesses steady inquiries for ELS cotton

Following the ICE, the down trend of the quotations of the CIF Bremen Index in the middle of last week was compensated again by an increase until Tuesday this week.

For a short time the falling prices encouraged spinners to cover nearby needs especially for medium staple cotton before they generally returned to a more wait-and-see attitude.

More steady inquiries were reported for extra long staple cotton and limited available qualities, which were purchased also for delivery in the second half of the year.

The following contracts were closed:

- Medium staple cotton: Cotton from Central Asia for prompt delivery, West Africa for prompt and the 3rd quarter, Israel Acala for the 3rd and 4th quarter 2013.

- Long- and extra-long staple cotton: Egyptian Giza 88 and Israel Pima for prompt delivery, Sudan Barakat for prompt and the 3rd quarter as well as US Pima for the 3rd and 4th quarter 2013.

Bremen Cotton Market

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Canada may extend no-tariff provision to LDCs by 10 years

The Government of Canada is planning to extend the no-tariff provision for another 10 years to the Least Developed Countries (LDC) identified by the United Nations, which includes leading textile and garment manufacturing countries such as Bangladesh, Nepal, Cambodia and Myanmar.

A decade ago, Canadian Government dropped the then existing duty on textiles and clothing made in LDCs. The Government had also removed restrictions on the volume of goods that can be imported from these countries.

Subsequently, as part of the 2010 Federal Budget, the Canadian Government announced the elimination of duties on imported raw materials, which includes substantial reductions in duties on textiles, from the Least-Developed-Countries.

Speaking to fibre2fashion, executive director of Canadian Apparel Federation, Mr. Bob Kirke said, “Canadian Government has indicated its intention to extend the customs duty reduction to the LDCs for another 10 years. However, the regulation needs to be passed by the Parliament before it can come into effect.”

“The LDCs need to sign a memorandum of understanding with Canada in order to avail the duty-free export benefits to the country,” he informs.

As of today, the regulation is yet to be tabled in the house. If the extension is passed, it will result in maintaining the status quo, according to Mr. Kirke.

"The LDCs identified by the UN will benefit from the Canadian no-tariff provisions. However, in view of the recent events in Bangladesh, the politics of the issue may change," he mentions.

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NATIONAL NEWS

TEA urges centre to remove drawback for cotton yarn

At the 167th Executive Committee Meeting of Tirupur Exporters Association (TEA) held in Tirupur today, the committee has “Resolved to urge the Central Government to remove the Duty Drawback Rate given to cotton yarn export and also other export benefits given for export of cotton yarn as the southern based Spinning Mills have not made any efforts to reduce the cotton yarn prices despite the intervention of the Government to protect the employment oriented value added sectors and reduction of cotton prices.”

Dr.A.Sakthivel, President, TEA in a press communiqué received here informed that the above Resolution has been sent to Mr. Anand Sharma, Union Minister of Commerce, Industry and Textiles and Ms. Zohra Chatterji, Textile Secretary with a requisition to take necessary steps for reduction of cotton yarn prices to protect the the value added sectors.

The communiqué noted that Tirupur knitwear units were expecting the downward revision of yarn prices further to Government intervention and also reduction of cotton prices.

In contrary to the expectations, the southern based Spinning Mills have not made any efforts to reduce the cotton yarn prices today, and have not shown any inclination for reduction of yarn prices, despite the reminders from value added sector end.

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Published in tecoya trend - May 03, 2013

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Fabrics & Accessories show and HOMTEX-2013 set to open from May 23

Two mega shows on home textile, fabrics & accessories set to open its doors at one venue in Bangalore from 23 to 25 May at Gayatri Vihar, Palace Ground, Bangalore, informed organizer in a press statement.

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Fabrics & Accessories (F&A) Trade Show and HOMTEX 2013 - India International Home Textile Exhibition - as two high profile trade exhibitions will showcase a wide range of products and services for the benefit of the textile value chain, it said.

Fabrics & Accessories Show, celebrating 10 years of its existence, will bring together manufacturers and suppliers of apparel fabrics, trimmings, embellishments and textile related services, while India International Home Textile Exhibition will provide buyers access to the latest products in home decor. "Fabrics & Accessories Show has grown steadily over the last decade is a true reflection of the trust and confidence imposed in us by both the exhibitors and the visitors. For exhibitors, they are able to meet new customers and generate new business every year, and for visitors, they are able to identify new products and suppliers year after year," said P. Krishnamurthy, CEO, S S Textile Media Pvt Ltd, Bangalore, organizers of the show.

This premier sourcing event has grown year-on-year to emerge as a strong brand in the value chain. Exhibitors at the show comprise large and medium suppliers from India and overseas, who will be showcasing their contemporary range of fashion fabrics and accessories. 15 China companies will be presenting their products alongside their Indian counterparts.

The major highlight at this edition of the F&A Show will be the diverse product range from old suppliers and many of whom are participating for the first time. Thus, trade visitors can expect to make new contacts and access new products.

Overall, the F&A Show promises to be high on deliverables, meeting the exacting standards of the textile and fashion industry.

Another high value show - the India International Home Textiles Exhibition (HOMTEX) has attracted quality companies from across India, which includes small, medium and large players.

The exhibition will provide trade buyers, comprising wholesalers, retailers, buying houses, buying agents, single and chain store retailers an opportunity to network with suppliers and gain access to products under Bed, Bath, Kitchen, Upholstery, Made-ups & Flooring segments.

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Still in its nascent stage, HOMTEX holds great promise considering the growing Indian economy and the demand for home decor products. The fact that this show is held alongside the F&A Show, presents strong synergies

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Published in SME Times - May 03, 2013

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Cotton production in Gujarat dips by 30 lakh bales

AHMEDABAD: Cotton production in Gujarat is estimated to dip by around 30 lakh bales during the 2012-13 season following deficient rains.

As per Cotton Advisory Board (CAB) estimates, the production is expected to be at around 87 lakh bales (one bale equals 170 kg) in Gujarat during the 2012-13 season (Oct-Sep) against 120 lakh bales in the last cotton season.

The acreage under the crop during 2012-13 season stood at nearly 24 lakh hectares in the state, a dip of 5.62 lakh hectares as compared to last season. In 2011-12, the acreage under cotton stood at 29.62 lakh hectare.

"Two seasons (2010-11) back, farmers got around Rs 7,000 per quintal price for raw cotton and that's why acreage under the crop shot up to over 29 lakh hectares in Gujarat in 2011-12 season...the yield shot up as the weather was also conducive," a Cotton Corporation of India (CCI) official said.

"This season there were drought like conditions in Saurashtra and Kutch region, and cotton prices fell down. Farmers could not get over Rs 5,000 per quintal for raw cotton," he said, adding, falling prices of cotton could further lead to a dip in cotton sowing during this Kharif in Gujarat,".

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Cotton sowing in Gujarat usually commences from mid-May. It is estimated that 20 per cent of irrigated cotton sowing which takes place in North Gujarat including Amreli in May and June may go down by over five per cent.

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Indian govt may not relax sourcing norms for IKEA

The Indian Government is likely to stick to its 30 percent local sourcing clause set for global single-brand retailers seeking to set shops in India through the foreign direct investment (FDI) route, according to an Economic Times report. Since the Indian Government allowed 100 percent FDI in single-brand retail last year, several international retailers have been pushing the Government of India to consider their exports outside India for satisfying the 30 percent domestic sourcing requirement for their single-brand retailing ventures in India. However, the Department of Industrial Policy and Promotion (DIPP), in its note to the Cabinet Committee of Economic Affairs (CCEA), has turned down Swedish

home furnishings retailer IKEA’s proposal of considering sourcing by its entities for exports under the 30 percent clause, the Economic Times report says.

The CCEA is soon likely to decide on IKEA’s Rs. 105 billion investment proposal, which has already been cleared by the Foreign Investment Promotion Board (FIPB). The DIPP, which is the first agency to approach for single brand retailers seeking to invest in India, also mentioned in its note to the CCEA that IKEA has accepted to satisfy the condition of sourcing 30 percent of its Indian stores requirement from domestic market within five years from the date it introduces its first set of investment in the country.

DIPP said that for its India plans, IKEA would have to operate two separate firms one exclusively for retailing, and the other for sourcing goods to be sold only in India.

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Anand Sharma asks for more market access to exporters in China

NEW DELHI: Expressing concern over ballooning trade deficit with China, Commerce and Industry Minister Anand Sharma today said Indian exporters should get greater market access in the neighbouring country.

"We have a huge trade deficit with China and what is a cause of serious worry for us is the composition of trade with China as India remains an exporter of raw-material and importer of finished manufactured goods. This is untenable and we have taken this up at the highest level," he said.

He was speaking at the Golden Jubilee Celebrations function of Indian Institute of Foreign Trade (IIFT) here.

The estimated trade deficit of USD 39.65 billion was in the favour of China.

"Indian exporter deserves a greater market access in China (in sectors like) IT and pharmaceutical...We have taken up this issue at the highest level with the leadership in China," Sharma said.

"We must also remain mindful of the fact that China has emerged as our largest trading partner at USD 69 billion which is a natural phenomena given our geographical proximity with it," he added.

On the proposed India-EU free trade agreement, he said that both the sides are in advance stages of negotiations.

"Much have been commented about it, written about it...I would like to say one thing, some times pure speculative analysis can confuse people and create avoidable concerns and panic. Our negotiators are working within the defined mandate," Sharma said.

He added that the negotiators are taking care of all the sensitivities of the domestic industry and "at the same time we ensure that we get more market access (in sectors such as) IT, pharmaceutical and textiles".

Several rounds of meetings have already been held between the two sides since the negotiations for the Broadbased Trade and Investment Agreement (BTIA)

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were launched in June 2007 but both the sides are still engaged in bridging the gaps on several issues.

EU is pressing for significant duty cuts in auto, wines and spirits and dairy products, besides hike in FDI cap in the insurance sector and a strong intellectual property regime. On the other hand, India wants liberalised visa norms for its professionals, data secure status and market access in services, pharmaceuticals, agriculture and textiles sector.

On exports, he said that situation in Europe remains grim while Japan and the US are facing challenges and parts of North Africa and Middle East which experienced turbulent uprisings are yet to find a stable equilibrium.

Sharma said the ministry's initiative of market diversification of export market has yielded positive results.

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Published in Economic Times - May 03, 2013

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NEWS CLIPPINGS - hepcindia.com · News Clippings Page 3 Mill use in China is falling to an estimated 8.3 million tons in 2012-13 as the national cotton policy remains unclear and