NEWS CLIPPINGSCotton Yarn Prices in Pakistan Pakistan : Exports surge by 7.2 percent in 2012-13 Pakistan's exports have increased by 7.2 percent in 2012-13 (July-January) as compared

IBTEX No. 040 of 2013 MARCH 08, 2013

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NEWS CLIPPINGS

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INTERNATIONAL NEWS

1 Pakistan : Exports surge by 7.2 percent in 2012-13 2

2 Hong Kong Fair expects strong turnout 4

3 Australian cotton output & exports to decline next fiscal 5

4 USA: Brentano introduces high performance textiles 6

5 USA: Cordura fabric receives Materials Excellence certificates

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6 German long staple cotton demand rises last week 9

7 Switzerland: Oerlikon textile sales surge 21.3% in 2012 10

8 Yarn Prices on the International Market Statistical Report 13

NATIONAL NEWS

1 Textile units shifting base 16

2 Textile buyer-seller meet in Madurai 18

3 Textile companies want government to release cotton 19

4 Panipat exporters seek higher MSP for cotton 20

5 Brand development is need of hour: TxC 22

6 Panabaaka Lakshmi Assumes Additional Charge as Union Minister of State for Textiles

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7 Cotton growers hit by irregularities in Warangal market yard

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8 China's retreat from textiles helps India, B'desh 26

9 Indian textile sector agitated over rising cotton prices 28

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INTERNATIONAL NEWS

Cotton Yarn Prices in Pakistan

Pakistan : Exports surge by 7.2 percent in 2012-13

Pakistan's exports have increased by 7.2 percent in 2012-13 (July-January) as compared to 2011-12 (July-January), while the rate of growth in export which has been 4.5 percent will increase to 15 percent per annum to the European Union (EU) due to duty free access arrangement. The export of Pakistan in 2012-13 (July-January) was registered at $14.068 billion as compared to $13.118 billion in 2011-12 (July-January).

In order to ensure a long-term enhanced market access for Pakistani products, the EU as a result of consistent efforts by the government, has agreed to raise its import vulnerability threshold from 1 percent to 2 percent which would enable Pakistan to become eligible for EU's GSP+ Scheme from 1st January, 2014 onwards.

The Ministry of Commerce is presently in the process of filing an application with EU to benefit from the scheme. It is estimated that growth rate of exports which has been 4.5 percent per annum to EU will rise to about 15 percent due to the duty free access arrangement by EU, Minister for Commerce Makhdoom Muhammad Amin Fahim told the National Assembly in written replies to questions on Wednesday.

He said that through the efforts of Ministry of Commerce supported by Ministry of Foreign Affairs, the European Union has granted duty-free access to 75 percent products being exported from Pakistan under a special arrangement named "Autonomous Trade Preferences". "The package includes 64 percent textiles (31 products of value-added textiles including home textiles and clothing and 33 products of non value-added textiles).

The package also includes six products of leather, three of footwear, ethyl alcohol and dried mushrooms, he said. This package was operational from 15th November, 2012 and would be available up to 31st December, 2013, Makhdoom said.

He said that the main thrust of Ministry of Commerce policy for United States is to get maximum Market Access for Pakistani exports, especially

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textile items. For this purpose, Ministry of Commerce has effectively been using the forum of Trade and Investment Framework Agreement (TIFA) signed between Pakistan and USA in 2003. The TIFA Council meeting is held regularly every year.

The minister said that Pakistan would increase trade and exports relations with Central Asian countries, including Kazakhstan, Tajikistan, Uzbekistan, Turkmenistan and Kyrgyzstan. He said that Pakistan would also increase its exports and trade with China, Iran, Russia, Turkey, Malaysia, Indonesia, Australia, Ukraine, Canada, Chile and other countries.

He said that Pakistan would sign Preferential Trade Agreement (PTA) with Kazakhstan, Tajikistan, Uzbekistan, Turkmenistan and Kyrgyzstan. In this regard, a draft PTA has been sent to these countries through diplomatic channels for consideration.

The minister said that a five-year strategic plan to expand Pak-Iran bilateral trade has also been signed. He said, "the strategic plan aims at:

(i) Annual target of 25 percent increase in bilateral trade,

(ii) Improvement of infrastructure, ie, roads, railways etc and

(iii) Removal of non-tariff barriers to increase bilateral trade and reduce, tariff and non tariff barriers.

He said that ministry of commerce has proposed Free Trade Agreement (FTA) with Iran and in this regard a draft text of FTA has also been provided to Iranian side for consideration, he said. About China, the minister said that Ministry of Commerce is currently in the process of preparation for the 2nd meeting of the 2nd phase of Pakistan-China Free Trade Agreement (PC-FTA). The consultations with stakeholders will be completed shortly. The Chinese side has indicated that the 2nd meeting of 2nd phase of PC-FTA would be held in April, 2013.

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Published in Brecorder– March 07, 2013

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Hong Kong Fair expects strong turnout

Hong Kong - The fourth edition of the HKTDC Hong Kong International Home Textiles and Furnishings Fair will take place here April 20-23 with more than 220 exhibitors from seven countries and regions.

At the Hong Kong Convention and Exhibition Centre manufacturers will be sorted into several zones, including: window fashion and accessories; bedroom and baby textiles; bathroom & kitchen textiles; carpet & floor coverings; and upholstery & furnishings products. In addition, the Hall of Glamour will feature an array of branded towels, bedding, curtains and carpets. Key exhibitors include A-Fontane from Hong Kong, Disney (US) and Hallmark (US).

Product Demo and Launch Pad sessions will provide suppliers with extra opportunities to announce their newest products in an interactive setting with buyers. The show, which runs in tandem with the HKTDC Hong Kong Houseware Fair, will also present forums and seminars on a variety of issues, including European trends and overall home textiles trends. The fair's "Small Order Zone" will highlight products from more than 300 exhibitors across both the home textiles and housewares shows that can handle small minimums.

The voting game "My Favourite Homeware" will return this year to spotlight creativity and innovation in the market. International buyers will be invited to vote for their favourite products online in eight categories.

For additional information, visit www.hktdc.com/hkhometextilesfair.

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Published in hometextilestoday.com– March 06, 2013

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http://www.hometextilestoday.com/jumplink.php?target=http%3A%2F%2Fwww.hktdc.com%2Fhkhometextilesfair.

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Australian cotton output & exports to decline next fiscal

The production of cotton in Australia is likely to witness a decline for second successive season next fiscal year beginning July 1, 2013, the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) has said.

According to the Canberra-based government body, Australia’s cotton production is likely to decline to 905,000 tons next fiscal year from 945,000 tons produced a year earlier.

The decrease in cotton output would lead to a dip in exports, which are likely to fall to 924,000 tons, compared to record exports of 1.1 million tons achieved a year earlier, ABARES said.

According to the report, cotton is estimated to be sown on about 434,000 hectares in 2013-14.

In its recent statement, the International Cotton Advisory Committee (ICAC) has forecasted global cotton production to decline 14 percent year-on-year to 22 million tons, while consumption would remain stable at 23 million tons in 2013/14.

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Published in Fibre2fashion– March 07, 2013

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Brentano introduces high performance textiles

True to their motto, all Brentano fabrics strive to strike the perfect balance of beauty + performance, and with their spring 2013 Symphonic collection, Brentano introduces high-performance textiles that are suitable for contract, healthcare, and institutional environments that also offer dynamic patterns, fresh colors, and a residential hand.

Woven from 100% high energy-dyed polyester, Polka is a small-scale, geometric pattern that is well-priced, bleach cleanable, and has both a Nano-Tex and DuraBlock finish. This 54” upholstery comes in 8 energetic colors and will add liveliness to contract areas or high-traffic residential applications. Passes 50,000 double rubs (Wyzenbeek).

Like the conductor in an orchestra, Maestro gets the job done no matter how high the stakes. This 100% polyester chenille comes in 9 practical colors and has a Teflon finish while maintaining a soft hand. Light bounces off the matte texture to create 3D, suede-like effect, but for an exceptional price. Maestro measures 56” and has an outstanding wearability of over 75,000 double rubs (Wyzenbeek). Teflon finish increases stain resistance.

About Brentano:

Founded in 1990 by Design Director Iris Wang and her husband, President E-Kwan Chen, Brentano has grown from a modest beginning of eight patterns to an internationally represented textile house. Brentano's fabrics stem from Wang's philosophy of balancing beauty + performance. Their growing collection of eco-fabrics expands this ideology by demanding

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textiles meet thoroughly researched standards of environmental consciousness while maintaining their beauty.

Having celebrated their 20th anniversary in 2010, Brentano continues to offer a variety of innovative and interesting textiles, including eco-friendly faux leather, high performance upholstery, and fire-resistant, outdoor, Crypton, Nano-Tex and GreenShield fabrics.

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Cordura fabric receives Materials Excellence certificates

INVISTA’S CORDURA Denim, Duck and Naturalle fabrics were recently voted into the world’s largest innovative materials library, Material ConneXion. Through a majority vote by a creative and materials professional panel, CORDURA fabric was awarded three Certificates of Materials Excellence.

“The Material ConneXion library contains some of the most advanced and innovative materials in the world,” said Dr. Andrew H. Dent of Material ConneXion. “Our monthly jury comprised of experts from diverse fields selects the materials providing an impartial choice. The panel of experts recognizes high quality materials and we are pleased to have CORDURA fabrics in our innovative collection.”

Material ConneXion will display the accredited CORDURA brand fabrics in ten locations: New York, Bangkok, Beijing, Cologne, Daegu, Istanbul, Milan, Seoul, Shanghai and Skövde. In addition, a corresponding entry will be available via Material ConneXion’s online database providing a description of the materials. Fortune 500 companies, architects, designers and other textile-focused clientele rely on Material ConneXion’s library and consulting services.

“We are honored to be selected by such a prestigious materials library, Material ConneXion,” said Cindy McNaull, global CORDURA brand

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marketing director. “Our fabrics are consistently chosen by outdoor, military, workwear, footwear, and performance apparel customers when durability counts. We are eager to expand our horizons and introduce our innovative, performance-driven CORDURA fabrics to the design community through Material ConneXion’s extensive Library of Innovative Materials.”

The three CORDURA brand fabrics selected for the Materials Library are:

CORDURA Naturalle fabric

Made with high-tenacity, full-dull nylon 6,6 fiber technology, CORDURA Naturalle fabrics provide a natural, cotton-like hand and appearance with durable, long-lasting performance. CORDURA Naturalle fabrics offer enhanced tear and abrasion resistance and are available in woven and knit constructions, including moisture management, DWR, laminates, as well as two and four way stretch technologies.

CORDURA Duck fabric

CORDURA Duck fabrics are designed for clothing that requires an extremely comfortable yet durable and wearable fabric solution. CORDURA Duck fabric can take the punishment inflicted at work or on the weekend, while also providing long lasting comfort.

CORDURA Denim fabric

Based on an intimate blend of cotton and INVISTA’S T420 nylon 6.6 fiber, CORDURA Denim fabric helps hard-working jeans last longer. Jeans made with CORDURA Denim fabric are exceptionally durable without compromising on comfort and style.

About Material ConneXion:

Material ConneXion is a global materials and innovation consultancy that helps companies create the products and services of tomorrow through smart materials and design thinking. Focused on delivering Innovation That Matters, Material ConneXion is the trusted advisor to Fortune 500s, and any forward-thinking company or government agency seeking a creative, competitive, or sustainable edge.

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With offices in New York, Milan, Cologne, Bangkok, Seoul, Daegu, Istanbul, Beijing, Shanghai and Skövde, Material ConneXion's international network of specialists provides a global, cross-industry perspective on materials, design, new product development, sustainability and innovation. Material ConneXion maintains the world's largest subscription-based Materials Library of over 7,000 innovative materials and processes-an indispensable asset to a wide audience of users.

About CORDURA brand

INVISTA’s CORDURA brand essence celebrates individual durability: As Long As The World Is Full Of Durable People, We’ll Keep Making Durable Fabrics. Known for its resistance to abrasions, tears and scuffs, CORDURA fabric is a primary ingredient in many of the world’s leading high-performance gear and apparel products ranging from luggage, upholstery and backpacks to footwear, military equipment, tactical wear, workwear and performance apparel.

Cordura Brand

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German long staple cotton demand rises last week

Prices for Upland as well as long staple cotton remained firm with a rising tendency at the ICE during the reported week leading to uncertainties on the part of the spinning industries.

This resulted once again in a wait-and-see attitude – especially in the Upland range – hoping this price development might have only been provoked by temporary speculative influences.

Just like last week, upper qualities were sometimes only to a limited extend available, so that the spinning industry had to make compromises

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on price and quality. The demand for long staple descriptions, on the other hand, rose a little during the last week. Purchases at long sight were not done.

Medium staple cotton: Cotton from Greece, Spain and West Africa were ordered for prompt delivery. Spanish and Central Asian descriptions as well USA E.M.O.T. were traded for the 2nd quarter 2013.

Long- and extra-long staple cotton: Sudan Barakat and US Pima were sold for prompt delivery.

Bremen Cotton Market

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Oerlikon textile sales surge 21.3% in 2012

Oerlikon Group reports full year and fourth quarter 2012 results.

-Oerlikon increased profitability to EBIT margin of 14.5 %

-EBIT up by 32.4 % to CHF 421 million; EBIT margin at 14.5 %

-Strong margin improvement in Textile, Drive Systems and Coating Segments

-Sales up by 6.4 % to CHF 2 906 million

-Net income up 71.9 % to CHF 385 million

-Oerlikon reports a net liquidity position of CHF 339 million; equity ratio of 45 %

-The Board of Directors proposes a 25 % increase in dividend to CHF 0.25 per share for FY 2012

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Outlook for 2013: order intake and sales at the previous year’s level; underlying operational profitability to be around the previous year’s level, temporary impacted by the divestments in the Textile Segment

In the fiscal year 2012, the Oerlikon Group delivered strong operational performance during its strategic transformation and shaping of the portfolio. The company generated EBIT of CHF 421 million representing an EBIT margin of 14.5 % (excluding the one-time effect from the sale of the property in Arbon EBIT amounted to CHF 382 million or 13.2 %).

This profitability level set a new record in the company’s history and was driven by the strong performance of the Textile and Coating Segments and significant improvement in the Drive Systems Segment. Despite a challenging global economic environment, Oerlikon was able to increase sales from continuing operations by 6.4 % to CHF 2.9 billion. While securing high quality orders, Oerlikon’s order intake totaled CHF 2.8 billion, close to the same level as in the previous year (–2.6 %). The strong operational performance and the cash proceeds from divestments resulted in a positive liquidity position for the Oerlikon Group of CHF 339 million after a net debt position of CHF 86 million a year ago.

The continued strengthening of the company’s financial position is also reflected in the equity ratio, which increased from 35 % to 45 %. Net income increased by 71.9 % to CHF 385 million, representing earnings per share of CHF 1.18. Consequently, the Board of Directors will propose a dividend of CHF 0.25 per share, an increase of 25 % compared to fiscal year 2011, to the Annual General Meeting of Shareholders.

This is the second successive dividend recommendation. Oerlikon CEO Michael Buscher said: “2012 was a transformational year for Oerlikon. Due to strong underlying performance, we achieved a record EBIT margin and propose an increased dividend. In parallel we also successfully shaped our business portfolio and fully refinanced the company. At Group level we

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made significant strides in our effort to gain a Best-in-Class position against our peers.”

Solid sales growth and normalized order intake

For 2012, the Oerlikon Group reported an increase in sales in continuing operations of 6.4 % to CHF 2 906 million (2011: CHF 2 731 million). Textile achieved the highest sales growth rate, reporting an increase in sales of 21.3 % compared to the previous year, benefitting from ongoing demand for innovative products in the manmade fiber business.

The Coating Segment also contributed to the increased Group sales driven by new, innovative products, expansion of the coating center network and new coating solutions which counterbalanced the market slowdown, particular in the automotive industry, over the course of the year.

While the Drive Systems Segment increased sales in 2012, the Vacuum Segment saw a sales decline of 8.8 %. Sales in the Advanced Technologies Segment slightly declined. Currency impact for the full financial year 2012 was minor. Adjusted for currency effects, sales would have reached CHF 2 875 million, reflecting a growth rate of 5.3 %.

Order intake for the Group normalized at a high level, closing the year at CHF 2 802 million (FY 2011: CHF 2 878 million). The challenging environment affected the order intake in the Vacuum and Drive Systems Segments which was not fully compensated by increasing orders in the Textile, Coating and Advanced Technologies Segments. Order backlog fell as expected, with CHF 834 million on the books as of year-end (FY 2011: CHF 971 million).

Q4 summary – strong profitability

The Oerlikon Group reported a strong profitability in the fourth quarter 2012 with an EBIT of CHF 89 million, up 23.6 % compared to CHF 72 million a year ago. EBIT margin of 12.8 % was significantly above prior year’s level of 10.1 %. This result was driven by a strong performance in

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the Textile, Coating and Advanced Technologies Segments, whereas Drive Systems and Vacuum Segments reported lower margins compared to Q4 2011.

Group sales in the fourth quarter 2012 of CHF 693 million were slightly below CHF 713 million reported in the fourth quarter 2011. Sales growth in the Textile, Coating and Advanced Technologies Segments was not able to fully compensate the decline in the Drive Systems and Vacuum Segments.

In light of the challenging economic environment in the fourth quarter, Group order intake declined by 9.6 % to CHF 634 million (Q4 2011: CHF 701 million) mainly driven by the Drive Systems and Vacuum Segments, whereas the Textile, Coating and Advanced Technologies Segments were able to increase order intake.

Oerlikon Group

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Yarn Prices on the International Market Statistical Report

Spun yarn prices surged on the international market in February, reflecting strong demand from China but also from other importing countries, as reflected by our exclusive data below available. Our statistical tables cover cotton, polyester, viscose and blended yarn prices, with effective price deals after negotiations on the international market, for end-user segment.

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Spun yarn prices are now rapidly rising on the international market, being boosted by stronger demand from China, but also from other countries.

Rising cotton prices

Effective average deals being below released suggest that 40s cotton yarn was up 60 cents per kilo by end of February, from end of January, at 4.75 US$ per kilo.

This is a monthly rise of 14.5%, while 30S gained 11% over the same period, if considering yarns produced in India.

Cotton prices are everywhere rising, over large imports from China and other Asian nations, while domestic cotton prices are being boosted by a rebound of yarn production in Pakistan and India.

Everything currently rising

Other product prices also surged in February, including polyester-cotton or polyester-viscose.

Only 100% viscose open end (OE) did not move. All other yarn prices were up between 5% and 10% in a single month.

Prices are therefore back to their level a year earlier for a majority of counts.

China's demand is pushing up prices in coarse counts but also for finest categories of yarns (60s and 80s).

Turkey and Brazil are back

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Demand is also rebounding from other markets, like Turkey, after safeguard measures were removed by Ankara.

With the real in sharp increase over the first two months of the year, Brazilian yarn processors are back on the international market, ordering large quantities from leading suppliers, like India.

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Published in Emerging Textiles– March 07, 2013

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NATIONAL NEWS

Textile units shifting base

Space constraints and the absence of modern infrastructure have prompted 35 textile manufacturing and processing units in Madurai to shift base to Kariapatti in neighbouring Virudhunagar district.

A textile unit in Madurai

he units manufacture yarn and process them into fabrics before exporting them to various places. The units in Madurai generate an annual revenue of Rs. 100 crore by direct export and Rs. 350 crore by indirect export within India and to the US and the UK.Ritan N. Thakker, Chairman and Managing Director of Southern District Textile Processing Cluster, told The Hindu that 35 of the 70 units in Madurai would form a cluster at Kariapatti where 104 acres of land had been purchased. The industrial units had registered their names at the District Industries Centre in Virudhunagar and once the formalities were over, the construction of industrial units will begin. “We are planning to move our base to the new industrial cluster by

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the end of 2013. It will have a common effluent treatment plant with a processing capacity of 35 lakh litres a day. There will be a green belt of 30 acres in the industrial area,” he said.

The textile units in Madurai are scattered in and around the city and nearly 40 per cent of them are in Sellur, north of the Vaigai.

According to the industrialists, there is no scope for expansion of their units in Madurai owing to lack of space, strict norms of the Pollution Control Board and the lack of any opportunity to upgrade their technologies.

“We need more space to upgrade the technology of our units and to establish effluent treatment plants. Our units in Madurai are on the verge of dying due to lack of encouragement by the government. We cannot afford to buy large tracts of land in Madurai, which is the reason why we are relocating to Virudhunagar,” said Mr. Ritan.

“Our cluster is expected to provide direct employment to at least 2,500 people. In the second phase, more industrial units from Madurai are expected to relocate to the cluster and an additional effluent treatment plant with a capacity to process 35 lakh litres a day will be erected,” Mr. Ritan added. M. Elango, Director of the cluster, said that there were at least 250 textile units in Madurai, but their number has shrunk to 70 in the past five years, mainly owing to strict implementation of environment norms. By upgrading their technology, the industries can reduce consumption of water to a large extent, he added.

“To manufacture one kilogram of fabric, we use 50 litres of water. With the latest machinery, we can reduce consumption of water to 30 litres. And with effective effluent treatment, 25 litres of water could be recycled,” he said. Mr. Ritan further said that a textile testing centre and training institute had been planned in the industrial cluster. “We will request the government to lay roads inside the cluster and to support us financially in setting up the effluent treatment plant.”

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Published in The Hindu– March 07, 2013

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Textile buyer-seller meet in Madurai

Buyers at the textile exhibition in the city on Wednesday

A five-day buyer-seller meet for textiles ‘Texpo 2013,’ organised by Powerloom Development and Export Promotion Council (PDEXCIL), was inaugurated at Lakshmi Sundaram Hall here on Wednesday.

The expo-cum-sale is organised for the fifth time in Madurai and manufacturers from all over Tamil Nadu and various North Indian States have put up stalls. Apparels, textiles, towels, dhotis, saris, churidhars and several other products have been exhibited.

S. Thanabal, Assistant Commissioner of Police, Tallakulam range, inaugurated the exhibition.

Speaking at the inauguration, V.T. Karunanithi, Vice-Chairman (South Region) of PDEXCIL, urged the weavers and powerloom workers to make use of schemes of PDEXCIL.

G. Kummaravel, Assistant Director at the regional office of the textile commissioner, said, “It is a great opportunity for the consumers to interact

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with the manufacturers and the retailers at the expo. The public can also avail themselves of the benefits by purchasing products at a lesser price.”

Elaborating on the various schemes of PDEXCIL Mr. Kummaravel said the council provides Rs.1,200 annually as educational incentives for the children (from IX standard to XII standard) of weavers and powerloom workers.

“Tamil Nadu has the maximum number of beneficiaries under the scheme. Last year 34,000 beneficiaries availed the benefits of the scheme in the State and this year we are vying to reach out to more people,” he said.

More than 50 texpos have been conducted in places such as Madurai, Chennai, Nagercoil, Pondicherry and Coimbatore in the last five years.

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Published in The Hindu– March 07, 2013

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Textile companies want government to release cotton

COIMBATORE: With cotton prices ruling firm, the textile industry has requested the government to immediately release cotton procured by various government agencies through minimum support price (MSP) operations. Cotton prices had increased steeply because of an artificial shortage in the market created due to hoarding by traders and non-release of procured cotton by the Cotton Corporation of India (CCI) and other procurement agencies, Confederation of Indian Textile Industry (CITI) chairman S V Arumugam said.

"Huge quantities of cotton have been purchased by the procurement agencies and these are not being released to the market," he said in a letter to textiles minister Anand Sharma.

http://timesofindia.indiatimes.com/topic/cotton-prices

http://timesofindia.indiatimes.com/topic/Confederation-of-Indian-Textile-Industry

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Pointing out that cotton prices increased 12%-15% after a stock of nearly 25 lakh bales (a bale is 170 kgs) were procured through MSP operations, the CITI chairman said that releasing these quantities in the market now can fetch impressive profits for procurement agencies.

The stock held by agencies is much more than the quantity held by all the traders taken together, he said. "Thus, the procurement agencies have a major role at present in pushing up cotton prices in the market," Arumugam said.

"Holding on to the procured cotton does not support the farmers, but harm the industry and the consumers," he said. The procurement agencies should be directed to augment cotton availability in the market by releasing the stocks held by them to the market immediately, Arumugam said. "This will also force traders to release whatever quantities are held by them," he said. Procurement agencies should not be allowed to export cotton as it would create an "avoidable shortage" in the domestic market, he said.

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Published in Times of India– March 07, 2013

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Panipat exporters seek higher MSP for cotton

PANIPAT: FEW months ago, Panipat-based textile exporters were beaming with the lower prices of cotton citing their input cost going down by around 5 percent to 6 percent. However, the scenario has changed as the exporters are receiving complaints for using fibre yarn in their textile products. The exporters are under pressure of lowering their order book and asking the government to intervene into the matter by increasing the minimum support price (MSP) of cotton.

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REASON FOR WORRY

Prem Sagar Vij, president of Panipat Exporters Association said, "We switched to fibre yarn as cotton yarn was not available in the market. Fibre yarn has been gaining popularity among textile manufacturers not just in Panipat but also in other textile hubs of India. Demand-supply constraint worked and the cotton prices went down drastically this year from around Rs 4,800 per quintal to around Rs 4,000 per quintal." Due to this, farmers started shifting their focus from cotton to sugarcane causing further non-availability of raw cotton for textile industries.

UNDER SCANNER

Vij added, "Textile manufacturers dealing in the domestic markets can afford to continue with fibre yarn, however, for exporters, their USP in global merchandise is cotton yarn-made products like bath mat, carpet, etc." He said that majority of the exporters receive complains that the quality of the product has gone down and cotton farming is going through such a phase where farmers cannot foresee any profit in cotton farming.

He said that the textile export is already feeling pressure due to the Euro zone crisis and their annual sales has gone down by around Rs1,000 crore in the past fiscal. "We had a sigh of relief when cotton prices crashed to around Rs 4,000 per quintal levels on lower demand by the industries because it increased our profit margin which we passed to our overseas clients by lowering our prices. This move paid lots of dividend as we could tap new markets in the Middle East by denting the Pakistani market share." But, the cheer was short lived as the textile manufacturers met the demand-supply constraint by using fibre yarn to meet deadlines.

THE SOLUTION

Asked about the solution to this problem; Lalit Goel, vice president of the

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Panipat Exporters Association said, "We need to increase cotton production by providing a level playing field for cotton farmers. And, this can be done by increasing cotton Minimum Support Price (MSP)."

On farmers shifting to sugarcane, Goel said, "It is happening because they are not getting proper return to their yield. Once they start getting proper returns, I won't be astonished if some cane farmers decide to embrace cotton." He said that both are commercial crops and are driven by industrial demand. If the government comes forward with reasonable MSP announcement, then the problem can be sorted out with quite ease.

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Published in Economic Times– March 07, 2013

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Brand development is need of hour: TxC

The US and EU markets are entirely dominated by various global brands and Indian exporters are merely suppliers to such brands. Therefore, brand development is need of the hour which deepens the market share and acceptability of Indian clothing thereby leading to increased export earnings, opined Mr. A. B. Joshi, Textile Commissioner, here today.

Addressing the Home Textile India Week organised by Texzone, Mr. Joshi informed that home textiles have emerged as one of the most dynamic product segment in textile industry due to the growing demand for comfort and functional performances by customers on fibre combinations, fabric, designs, textures and colours.

As a result, manufacturers are now adopting the performance apparel technologies for use in home textile products, Textile Commissioner said and informed that the typical performance requirements for hospitality textile industry included abrasion resistance, light fastness, wash fastness,

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stain resistance, flame resistance, odour control, anti microbial / mite function among others.T he development of functional textile technologies, Mr. Joshi said, can be undoubtedly applied onto home textile products to meet above requirements and gave an example of fabric incorporating a moisture management technology which has traditionally been used in active wear which is now being integrated into bed sheets.

Home textile can also be made from various functional materials such as stretchable fabric, thermally adaptive bedding, environmentally friendly textile, anti-microbial fabrics, stain protective treatments, flame retardant material, fragrance encapsulating technologies, coolmax and thermolite fabrics etc, Mr. Joshi said.

Dwelling upon global competition, Textile Commissioner said that Indian textile industry should not underestimate the magnitude of the challenge posed by international competition. Still too much work focusing on quality, design, innovation and technology and high value-added products is required to be done to maintain a competitive advantage in the textile and clothing sectors, he stressed.

Mr. Joshi said that it was high time that Indian manufacturers have to further add the values by way of adopting the performance apparel technologies for use in textile and clothing products to address the growing demands of comfort and functional performances by customers on fibre combinations, fabric, designs, textures and colours.

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Published in Tecoya Trend– March 08, 2013

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Panabaaka Lakshmi Assumes Additional Charge as Union Minister of State for Textiles

Smt. Panabaaka Lakshmi, Union Minister of State for Petroleum and Natural Gas has assumed the additional charge as Union Minister of State for Textiles here today.

Speaking on the occasion Smt. Panabaaka Lakshmi said that her first priority after assuming the charge would be for the handloom weavers.

In the last budget session, the Finance Minister announced two mega clusters one for Andhra Pradesh and another one for Jharkhand. First of all I want to see immediately to ensure to start the project work. On the issue of cotton, she said that after discussion with the senior officers, I definitely want to do justice to Andhra cotton growers and remaining parts of India also.

Immediately after assuming the additional charge, she held a meeting with the Senior Officials and reviewed the recent development in the Ministry. Smt. Panabaaka Lakshmi hails from Nellore District in Andhra Pradesh and got elected three times from Nellore Lok Sabha Constituency, Nellore District and 4th time from Bapatla Lok Sabha Constituency, Guntur District. Earlier, she had served as Union Minister of State for Health and Family Welfare from 2004-09 in UPA-I and Union Minister of State for Textiles from May, 2009 to October, 2012 in UPA-II.

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Published in cottonyarnmarket– March 08, 2013

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Cotton growers hit by irregularities in Warangal market yard

An independent fact-finding committee has noted several irregularities and inadequate facilities at the Agriculture Market Committee at Warangal in Andhra Pradesh, leading to cotton farmers getting a price much less than the MSP.

The fact-finding committee, headed by Justice G. Bikshapathi, former Judge, AP High Court, was instituted by the Consortium of Indian farmers Associations and other local farmers bodies, following complaints from farmers in the district.

The committee observed that although the Cotton Corporation of India had issued notification for the establishment of 11 cotton purchasing centres in the district to help farmers save on transportation, there was still a lone centre serving the farmers.

Stocks are thus exposed to rain and fire. Further, farmers are supposed to get Rs 25 by CCI per gunny bag, but for the last two years they are not paid anything for the bags, Bikshapathi told newspersons here today.

Farmers had supplied 80 lakh empty bags to CCI for the last two years, for which they had not received any money.

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Farmers got a particularly low price for their produce in the first week of February when the district was lashed by heavy rains. To make matters worse, the market yard has no proper moisture testing meters and officials just slash the cotton bags in the middle and judge the moisture content by feeling the cotton with their hands. Prices are thus fixed on the basis of whatever moisture content the officials claim in the cotton, he said. As per the AMPC Act, commission agents are entitled only for one per cent commission, but we were told that they are collecting 4-5 per cent from farmers, said Jaipal Reddy, President of Prataparudra Farmers Federation, Warangal

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Published in cottonyarnmarket– March 08, 2013

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China's retreat from textiles helps India, B'desh

However, Bangladesh expected to remain well ahead in apparel export

China, a major textile producer for about two decades, is now focusing on other sectors. It is expected this would change the fortunes of other textile producers such as India and Bangladesh.

The Chinese government has told mills in that country that if they import cotton, they would have to buy twice that amount from the state agency. The government has also increased yarn import and is concentrating on manufacturing high-value items.

As a result, India, Bangladesh and Vietnam are receiving more orders. "China is slowly trying to move out of textiles and these orders are now coming to India. China may exit the textiles space in the next 15 years," said D K Nair, secretary general of the Confederation of Indian Textile Industry. While India has managed to secure most yarn export contracts, Bangladesh accounts for most of the apparel and garments market. India

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has managed to capture the home textile market, as well as the cotton yarn spinning market. This could raise 2012-13 cotton yarn exports to an all-time high of 1,000 million kg. This is primarily because to reduce its spinning capacities, China has cut cotton import substantially.

"This decade is the best for the Indian textile industry, as Chinese orders are now coming to India, Indian textile players should now take advantage of this," said the chief financial officer of a Mumbai-based integrated textiles company, on condition of anonymity.

India, earlier the second-largest apparel exporter, has lost its market to Bangladesh, which has managed to capture a large pie of the US and the Euro zone markets. The cost of production in that country is about 20 per cent lower than in India, owing to cheap labour. Currently, India is the third-largest apparel exporter, after China and Bangladesh. In 2011, India's apparel exports stood at $13.4 billion, while Bangladesh's was $19 billion, according to World Trade Organisation data. According to the Apparel Export Promotion Council, India exported apparel worth $13.5 billion 2011-12. Indian apparel exporters have been forced to focus on the domestic market. "The apparel exports market has shifted to Bangladesh in the last few years, causing Indian exporters to rely on the Indian market," said Sanjay Lalbhai, chairman and managing director of Arvind.

Turkey has also emerged as another major apparel exporter. Importing from Turkey suits European buyers, as this reduces the time of delivery, compared to buying from Asian countries. Data compiled by the ministry of commerce showed India's textile exports declined 8.2 per cent to $18,679 million in April-November last year, compared with $20,346 million in the corresponding period of the previous year. In 2011, exports of cotton yarn, fabrics and home textiles stood at $15 billion.

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Published in Business Standard– March 08, 2013

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Indian textile sector agitated over rising cotton prices

Indian cotton prices which began surging from the first week of February 2013 are still gaining momentum and scaled news high’s on March 6, in the new cotton season beginning October 2012.

After being stable and moving in a narrow range since October 2012, Shankar-6 cotton prices have shot up in a matter of 30 days from Rs 34,000 per candy on February 5 to Rs 37,925 per candy on March 7, up 11.54%.

This has led to a furore in the Indian textile sector which had witnessed utmost stability in the last few months, mainly due to steady cotton prices. Most of the experts fibre2fashion spoke to, blame the abnormal surge in cotton export registrations in February.

“The main reason for the surge is that cotton export registrations which stood around 3.5-4 million bales between October and January 2013, touched around 8 million bales by February-end,” Dr Selvaraju – Secretary General of South Indian Mills Association (SIMA) told fibre2fashion.

“Last year also the same thing had happened. Cotton export registrations which had stood at 5.5-6.0 million bales from October 2011 till January 2012, shot up to around 11.5-12 million bales between February and March 2012,” he explained.

Mr Arumugam, Chairman – Confederation of Indian Textile Industry (CITI) blames the artificial shortage of cotton created partly due to hoarding by traders and partly by non-release of cotton by Cotton Corporation of India (CCI) and other procurement agencies.

Mr. Paritosh Agarwal – MD of Hyderabad-based Suryalakshmi Cotton Mills Ltd, says, “Prices have risen even by around 15% for a few other Indian cotton varieties in the course of the last one month. An

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extraordinary increase in cotton exports is the main reason for the hike in cotton prices.”

“Secondly, despite the 10-15 percent hike in cotton prices, the Indian textile industry has still not absorbed it, as we have still not been able to raise the prices of yarns or fabrics in the same proportion,” he informed.

Mr Arumugam points out that, nearly 2.5 million bales have been procured by state agencies in the last few weeks. Releasing these quantities now, can fetch an impressive profit for these agencies.

“CCI should immediately release the stocks. Holding on to the procured cotton would only help traders who have also hoarding cotton, purchased from the farmers earlier at low prices,” he said.

“The events of the past one month have created instability in the Indian textile industry, so CCI should immediately start selling its stocks only to actual users, that too, in a restricted quantity to avoid speculation, by these users,” Dr Selvaraju said.

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NEWS CLIPPINGSCotton Yarn Prices in Pakistan Pakistan : Exports surge by 7.2 percent in 2012-13 Pakistan's exports have increased by 7.2 percent in 2012-13 (July-January) as compared