Archive for December, 2009

Telangana crisis affecting Textile Industry of Surat

Thursday, December 31st, 2009

Prevailing agitation of Andhra Pradesh for distinct Telangana state, has badly affected Surat’s textile industry.
Textile industry, worth Rs 40,000crores is facing heavy loses up to Rs 5-7crores on daily basis. Moreover, transporters of the textile have suffered losses amounting to Rs 20crores.

Around 50 loaded trucks filled with textile parcels leave for Andhra Pradesh cities and also other areas of Southern India on daily basis from Surat. Due to the agitation prevailing in the city, not more than 10 trucks are heading to other cities from Surat since some time. Moreover, even the Andhra buyers are not approaching the city’s textile traders. Festival sale too has suffered huge losses this time.

According to the president of Federation of Surat Textile Trader Association, Krishan Banka, Around 10% of city’s business of synthetic fiber worth Rs. 110crores comes from the city Andhra. This is has been reduced by 50 % almost.

Textile industry is at loss of business amounting Rs 5crore on daily basis. Even the Pongal sale is down by 15-20% during the first 3 weeks of the month of December, he added.

President of Surat Weaver association, Ashok Jirawala said: Industry is going through crucial stages. Because of few marriages during the season, units had to be stopped for 2-3 days in a week’s time and now again the Andhra Pradesh situation has adversely affected the units production. Process for production has been reduced for cutting costs of staff payments etc.

Meanwhile, President, Surat Textile Transports Association explained: In Andhra Pradesh agitators have torched our vehicles. Alternative routes are being by us, but it is raising our costs. Members of our association have borne loss up to the amount of Rs 20crores.

Mills Cotton Consumption lowers 2.4% on textile demand

Wednesday, December 30th, 2009

Domestic mill’s consumption of cotton from the year 2008 to 2009 (October-September) has degenerated up to 2.4 % year after year up to 19.09 million bales (1 bale=170 kg), because of the slowdown in global and domestic demand for textile, explained India’s Cotton Association.

Since last few years, cotton consumption by mills has been on the rising stages and has reached on a height as 19.57 million bales during 2007-2008, that was approx 30% raise over previous 5 years, association said in its house journal Cotton Statistics and News.

Economic slowdown around the globe, in addition with increase in prices for domestic cotton and low price support by the government, had affected the demand for cotton in the textile industry during 2008-2009, it was explained.

Cotton consumption for the same was lower down by the small scale units during the season at around 2.02 million bales in comparison with the 2.21 million bales in the year 2007-2008.

Imports and Exports at Revival in Ahmedabad

Tuesday, December 29th, 2009

Ahmedabad: Due to the fluctuating economic downturn around the globe since more than a year, economy of Gujarat looks like casting off the imprints of recession. Recovery signs are evident from the figures that are indicating rise in both imports and exports of textile.

Growth has been witnessed in the exports of Ahmedabad, figures given by Container Corporation of India’s inland container depot at the city explains. Revival at the foreign markets is indicated through the data and it also expresses the economic strength of the state.

Ahmedabad has been leading the stat’s rally of exports. Textile, gems, jewelry, chemicals, food stuff, pharmaceuticals and engineering goods have been majorly exported items from city of Gujarat along with US and Europe being the important destinations for export. Though there have not been any exact figures as such but as per the experts of the textile industry n Surat, the city’s textile exports have been greatly raised up in comparison to that of the previous year.

Textile exporter and manufacturer from Surat, Ravindra Arya said,Completely dried up situation was surrounding the city previous year due to the meltdown around the globe especially from Europe and US. But the situation has improved to greater extent and the textile exports are now on the rising stages.

Gems and Jewel’s export are showing improved growth. Diamond cutting industry is recovered from downturn due to the improvement in demands at important markets that is US. We are expecting developments in the upcoming weeks and months, Chandrakant Sanghavi said, Chairman of the regional Gems and Jewels export Promotional Council. Even the Vadodara industries reported a rise in export orders and enquiries.

Engineering products along with pharmaceutical industries of Vadodra have been successfully defended from the challenge by the manufactures of China. It requires highly skilled labor and raised production standards. Evident explains Chinese have been still not been able to match up with the industries of Vadodara at least in the two sectors.

Container imports from Ahmedabad’s inland container depot are also witnessed on the rising levels. Till the month of March, negative growth was noticed which turned into development since the month of April. According to the experts, rising imports express dynamism of the economy of the state that indicates sound recovery. Gujarat’s economy is recovering swiftly. Imports are self explanatory of rising demand in the domestic companies, explained Jyotindra Kothari, Exim Club’s President at Ahmedabad. Growing imports at companies of Gujarat show that they are willing to raise the production for meeting rising demands. During the first few months of the year, demands were bit week.

Grey Fabric’s output from Surat stroked by 30%

Monday, December 28th, 2009

Weaving units at Surat have been compelled to cut short the production and manufacturing of synthetic grey fabric up to 20 to 30 percent. This is due to the reduced demand arising because of the raised raw material prices.

Reductions in the sales turnover explain the impact of the prevailing downturn of the industry which has gone up to half of the existing amount.

Textile industry of Surat that weaves around 30-40 million meters of grey cloth on daily basis are sent for processing to their respective destination. The level of this production has been reduced to an extent of around 10-15million meters a day.

According to the general secretary of FOSTTA, Federation of Surat’s Textile Trader Association, Devkishan Manghani, Approx 40,000 big and small textile merchants are generating volume of Rs 110crores per day, that has been reduced to Rs 50-60crore per day resulting from the sluggish demand. Manufactures of grey cloth are affected by the rising cost of raw material that is the texturized yarn.

Around 8lakh estimated power looms are located in and the city, Surat. Many of the looms from them have already shut down night shifts, others have been keeping the units shut of a day of two. Most of the weaving houses have been unable to bear the trouble of boost in price of the raw material. Due to this the demand has also reduced, explained Mahendra Kajiwal, FOSTTA’s former president.

Godowns have been piled up with Inventories. Around a month ago, stock in the form of finished goods was up to 15,000unites which is now more than 22,000, Kajiwal added.

Around Rs 15-20 per meters revenue is earned by the weaving units through the selling of grey fabric to the processing houses. With the reduction in sales up to the amount of 30%, units are undergoing revenue loss amounting Rs 15-20crores.

Turnover of synthetic ready goods of the textile industry amounts to more than Rs 30,000crores Per Annum.

Textile Export target up to $25bn at risk

Thursday, December 24th, 2009

Karachi: Exports being targeted work $25 billion by the textile policy in five year are likely to fail due to the raised yarn export, top exporter says.
Ministry of textile is making delays in implementing its promises. How can be the targets achieved when raw material is not available in adequate amount? said the Chairman of Pakistan Apparel Forum, M Jawed Bilwani.

Policy reported on 12th of August 2009 explained that RS 40 billion have been set aside for the growth and development of the textile sector.

Level of Implementation of the policy is still resting on zero. Value added textile product Chairman FPCCI standing Committee and Acting Chairman of PRGMEA (Pakistan Readymade Garment Manufacturers and Exporters Association), Bilal Mulla said, Payments for funds of research and development and drawbacks have not yet been able to reach the exporters pockets.

Rs 5 billion has already reached the State Bank of Pakistan as package for textile sector still no such instructions have be given for its utilization. State Bank’s letter to PRGMEA explained that the Textile Ministry had not yet specified that correctly measured area too where the amount is required to be utilized.
Rs 87 billion amount of cash is offered according to the policy as subsidy in order to boost the exports. Rather, due to the shortage of yarn and rise in utility rates, exports too are getting reduced which is still not addressed by the government.

Duty-free yarn import was allowed, though yarn exports were not mentioned anywhere in the meeting held at Islamabad this Wednesday by the Cabinet Committee over Textile Industry. Bilwani mentioned that expect for Pakistan, yarn was not being sold in International market so how can they buy them. Rather, yarn imports were already duty-free.

Financial problems are surrounding the textile industry nowadays which is still in the wait for R&D claims. Sixty percent of the R&D dues are still not paid.

Government has set aside R&D claims amounting to Rs.5.6 billion. R&D claims for approx 10,000 exporters are still pending, among whom 298 are found to be registered with Textile Ministry’s R&D cell and have been given an assurance for reimbursement. Due to this, objections against 434 exporter applicants are raised, among whom applications for around 4,000 are pending for the registration by ministry.

Chairman of All Pakistan Textile Mills Association, Yasin Siddik of the Sindh Balochistan Zone expressed that the policy was good and very much effective but the implementation was not anywhere in progress.
Textile Industry Minister, Rana Muhammad Farooq Saeed Khan, explained in a program that entire policy will be implemented. But now the people of industry who at the time of policy release were optimistic have become pessimistic due to the slow implementation process.

FDI supporting Textile Sector with 25,000cr

Wednesday, December 23rd, 2009

Chennai: Dayanidhi Maran, Union Textile Minister said on Tuesday that Textile sector of India will be getting direct foreign investment up to the amount of Rs 25,000crores for the coming five years. He explained to the reporter at Quiad-e-Milath College of Women after the inauguration of National Handloom Expo there. Government is stepping ahead with strong initiatives in this direction, he added.

Handloom week is being celebrated by the Textile Ministry since 21st December for the promotion of handlooms and improvement of livelihood of the textile weavers, he said.

Handloom Expos have been arranged at more than 22 cities around the country with the expectation of 3 to 4crores revenue from each exhibition. At Kancheepuram, proposal for integrated textile park is being formulated as another step towards progress, he said. The minister added that, ‘Chief Minister Mr. M Karunandihi is likely to give dates to lay foundation, we are waiting for them’.

Expo is organized for featuring handloom products that includes everything from Chettinad Sarees to Pochampally Silk Sarees and West Bengal’s famous handloom material. Around 30% discount is offered by government at the expo that is likely to continue till 4th January.

Textile Ministry willing to raise Indian Handloom Clusters

Tuesday, December 22nd, 2009

Marketing linkage is being given to the handloom clusters by the government. Textile ministry is approaching the planning commission to persuade for enhancing allocation of the textile sector, says Dayanidhi Maran.

According to Maran, the government is working for the sustainability of the handloom sector in order to assist the cultural vibrancy of the country as it is offering grounds for more and more employment opportunities especially for the weaker sections of the society.

National Handloom Expo is being launched in New Delhi by the ministry as an important part of the first one ‘Handloom Week’ that is already organized by the textile ministry from December 21st to 28th 2009 all around the country.

Maran added that the textile ministry has been emphasizing over the promotional needs in the handloom sector since long time basically for the reason that the sector is supporting thousands of lives in comparison to many other industries.

Sops are promised for the sectors like handicraft, leather and handloom sector as they are supporting labor intensive needs to much extent, said Anand Sharma, Minister of Commerce and Industry.

Maran further explained that expos for handloom are being organized at Kolkata, Chennai, Jaipur, Coimbatore, Guwahati, Hyderabad, Kannur, Dehradun, Puri, Jaipur, Bhilai, Mumbai, Chandigarh, Dimapur, Tirupati, Sibsagar, Patna, Lucknow, Bhopal and Kanpur along with series of exclusive fashion shows known as ‘Symphony in Weaves: The Handloom ensemble’.

Udenwa Takes Initiative Towards Renewal of Textile Industry

Friday, December 18th, 2009

Chief Achike Udenwa, Commerce and Industry Minister expressed keen determination of the administration for the revival of industrial sector especially the textile industry that has be worst affected.

He said this at official launch of Campaign Patronage of Made in- Nigeria Products held at River state. According to him, Nigeria, International community member, cannot be isolated from the severe consequences of the economic crisis going around the world. Consequences like this are visible openly in the stock market along with government revenue that are arising from fall of prices of crude oil and in the manufacturing sector. This is evidenced from millions of job losses going around.

He added that the Ministry took strategic initiative through the campaign with the aim of boosting up industrial production with the view of reviving industries, hence creating grounds for millions of jobs and wealth maximization for the growing population. As per the minister, this measure could counter most of the negativity of globalization and economic crisis going on in the manufacturing sector.

Udenwa also added that economy’s most vibrant sector that is the textile industry had been employing more than 500,000 people single time. According to him cotton earlier was available in abundance within the country with the capacity of 320,000 metric tons annual production or 111,000 metric tons lint and more than 125 companies operating in textile market along with 72 ginneries. In a sense of dissatisfaction, he expressed that nowadays the sector is only reflecting its shadow. Due to loss of massive jobs, level of poverty is rising along with rising gap between the poor and rich communities, he added further.
With the view of reversing the trend, the government took up the initiative by offering revival fund of N70 billion for textiles and cotton which has now been raised up to N100 billion, administered and sourced by BOI, Bank of Industry.

He addressed all associated authorities with an appeal for assisting the ministry in successful implementation of the initiative.

Threat of Restriction on Yarn Export

Thursday, December 17th, 2009

Lahore: Cotton yarn exporters and manufactures are worried about the quantitative restrictions that the government might impose over the commodity export due to the pressure of downstream apparel industry and power-loom owners from Faisalabad.

Rana Farooq, Federal Textile Minister gave an indication about it during a meeting with the apparel industry and yarn producers held during initial days of this week.

Textile minister asked spinners to cut short the yarn export up to its past 3 years on an average of 50,000 tons. A yarn producer from Lahore gave the statement that the proposal for restriction was given by Rana Farroq, textile minister himself.

According to him, the textile ministry, under value added textile sector and power-loom owner’s political pressure could forward a proposal for due consideration of federal cabinet for imposing restriction on yarn export.
Loom owners pressure pushed the textile ministry in the previous month to monitor movement of the yarn export contracts outside the country by ordering its registration.

Demand is being opposed by Aptma(All-Pakistan Textile Mills Association, Aptma-Punjab) after considering the prices of yarn that have been raised due to the upraised domestic cotton and yarn prices globally.
Gohar Ejaz, Chairman at Aptma-Punjab explained that curbs over yarn export would be leading to 200 spinning unit’s closure in the country that might result in loss of massive jobs and defaults at the banks.
Spinners explain that rising prices of the global yarn have resulted in helping closed units to activate their production which are found to be raised from 210,000 tons to 230,000 tons in November.

Gohar added that yarn export will be implemented only when international prices will not be given to the producer through value added manufactures.

He also said that government’s alteration with free trade might not result in good interest of spinners, cotton growers and others of the textile industry and even for the national economy.

According to him, the demand for restricting yarn export was encouraged by those who didn’t wish to give yarn producers international prices to their own products.

Tirupur textile sector choked by agitation in Andhra

Wednesday, December 16th, 2009

Chennai: Telangana issue is creating problems for Tirupur’s apparel makers for the movement of goods by Andhra Pradesh roads. Trucks with textile material are stuck in the middle of their way and are not being able to reach their final destination at different locations of the country. This has lead to pilling of knitwear stock because the fresh bookings for consignments are stopped by the transporters.
Tamarind merchants from Erode too are suffering from similar situation that is blocked road reason being the prices of the tamarind have dropped badly somewhere by Rs 2,500/tonne. This was after the transporters did not made an attempt to take them to areas like Madhya Pradesh, Uttar Pradesh and Maharashtra where there is good market space for them.

Due to the agitations and losses, truckers are trying to fix problems by following other directions connecting one place to another.

According to a witness, somewhere around 100 trucks with readymade apparels loaded in them travel towards the northern portion of the country from Tirupur, Palladam and Somanur almost every day. Goods weight of each truck is between 8-16 tonnes.

President of Tirupur Lorry Owners Association, CN Ramasamy said that trucks neither entered nor moved through the Hyderabad highway. Reason behind the grinding halt existing in different areas of Andhra Pradesh is the development process going in Telangana.

R Sugamaran, spokesman at All India Motor Congress explained that in the interior portions of Nellore, Chittor, Ananthapur, Cuddapah and few other places the traffic has been disrupted and even the vehicle movements are delayed by few hours again due to the road blockage and agitations.

According to Ramasamy, the apparel prices would get affected in Andhra Pradesh during the Christmas and New Year festive time and a hike of around 25% is expected if the situation continues for long.

Nalthambi, President of State Lorry Owner Federation of Tamil Nadu expressed another fear that the trucks might have to pay more in order to get permits for crossing states. Amount payment might get raised from Rs5, 000 to 10,000 every year, said Nalathambi. He also explained that Erode farmers are very much worried about the prices of tamarind that has been declined in weight from Rs 13,460 per tonne around 2 weeks back to Rs 11,000 as a result of agitation in Andhra Pradesh.