Archive for the ‘Textile news and updates’ Category

Indigenous industry needed to boost technical textile market

Monday, May 10th, 2010

COIMBATORE: India needed to give a push to indigenous industry in technical textile market for boosting the domestic consumption of the products, a US-based expert in the sector has said.

For boosting the domestic consumption of technical textile products, India needed indigenous industry, which can manufacture products such as diaper, feminine hygiene products, Dr Ramkumar Seshadri, Professor at Texas Tech University, USA, said in an article.

These products were still dominated by major international brands such as Pampers, Huggies and SCA-Godrej, he said adding their cost was unaffordable for common man in India.

The cost of branded diapers was around Rs.nine and this should be brought down to Rs.five for the industry to boom in India, he said.

For this to happen, India urgently needed converting sector which would take fabrics and make useful end-use products such as filters and diapers. Moreover, due to the growing domestic consumption and increase in wages, the need for consumer products at affordable rates will rise, he said.

International non-woven technical textile industry machinery makers and trade bodies should look for win-win opportunities in the creation of converting clusters, he said.

Though India has adequate good manufacturers although not of high quality, the industry at present was reluctant to invest in high-end machinery. Marketing know-how and coordinated approach towards marketing was another major factor, to boost the sector, he said.

News source is http://economictimes.indiatimes.com

Indian ban on cotton export affects Pak importers

Wednesday, May 5th, 2010

Wednesday, May 05, 2010
KARACHI: The Indian government has not only banned the export of cotton but also imposed Rs2,500 per ton export surcharge on the export of Indian cotton to save their local textile industry. This ban has seriously affected Pakistani importers of cotton from India, who had booked about 200,000 bales, says a press release issued here Monday.

Federal Adviser on Textile Dr Mirza Ikhtiar Baig today talked to the Pakistani High Commissioner in India, Shahid Malik, and requested to take up this matter with the Indian authorities to allow shipment of cotton for which sales contracts have been already executed. The Indian government has asked exporters to re-register their valid contracts to allow export of cotton on monthly pro data basis.Dr Baig requested the Pakistan high commissioner to arrange to expedite the process of re-validation of contract as there is a serious shortage of cotton for the textile industry in Pakistan.

News printed in http://www.thenews.com.pk/

Center withdraws duty drawback, cotton yarn exporters cry foul

Wednesday, May 5th, 2010

Raakhi Jagga
Posted: Wednesday, May 05, 2010 at 0214 hrs

Ludhiana:
Union Textile ministry’s order withdrawing the four to five per cent duty drawback provided to cotton yarn exporters is the second shock for the exporters in the past one month. Last month, duty entitlement passbook (DEPB) worth 7.67 per cent on the total sales was also withdrawn on cotton yarn exports. Ashish Bagrodia, president of Northern India Textile Mills Association (NITMA), said this is an effort to curb exports.

The smaller players — the end users of the cotton yarn have, however, welcomed the move. They had earlier presented their problem before the Union Textile ministry that yarn manufacturers are increasing the prices of cotton yarn in the domestic market in an arbitrary manner.

In the past three months, the prices had increased from Rs 140 per kg to Rs 175 per kg, however, from May 1 Rs 5 per kg was reduced from the cost of yarn. Bagrodia said the government’s decision to withdraw duty drawback for cotton yarn is very unfortunate and unfair. The move is also inequitable as all other export products are eligible for the refund of duties and the sudden withdrawal will have long-term implications for the healthy development of the sector in future, he claimed.

News source is http://www.indianexpress.com/news/

Brandix Apparel City to attract Rs 5400 Cr

Tuesday, May 4th, 2010

BS Reporter / Chennai/ Visakhapatnam May 04, 2010, 0:37 IST

CM Rosaiah inaugurates the park in AP Special Economic Zone

Andhra Pradesh chief minister K Rosaiah on Monday inaugurated the Brandix India Apparel City (BIAC) located in the Andhra Pradesh Special Economic Zone here.

The state government has allotted 1,000 acres of land for the project while the Centre has provided Rs 36 crore under the Union textile policy.

Speaking on the occasion, Rosaiah asked BIAC, promoted by Sri Lanka-based Brandix group, to fulfil its promise of providing employment to 60,000 people at the earliest.

He said the government was providing training to youth under Rajiv Udhyogsree to make skilled manpower available and had, so far, trained 1 million youth.

BIAC would have 20 apparel manufacturing plants, three fabric mills, eight accessories factories and one finishing plant. The apparel city would attract an investment of $1.2 billion (around Rs 5,400 crore), said Brandix group chief executive officer Ashroff Omar.

While two manufacturing units Brandix Apparel India and Ocean India (US) have already commenced exports, four others are at different stages of completion. These six companies, on completion, would cumulatively invest about $70 million (Rs 315 crore) for factory infrastructure development, he said.

Fabric companies like Fountain Set Holdings of Hong Kong, Pioneer Elastic India Quantum Clothing Indi (UK), DEB Fashion India and Seeds Intimate Apparel India have come forward to set up joint ventures in the BIAC.

Visakhapatnam would attract investments worth about Rs 68,000 crore over the next five years and see 71,000 new jobs being created. During the last three years, Vizag district attracted Rs 17,000 crore in different sectors, said K Lakshmi Narayana, major industries minister.

The Centre has sanctioned six integrated textile parks for Andhra Pradesh, including in Visakhapatnam, said Panabaaka Lakshmi, Union minister of state for textiles, adding this was the biggest textile park in Southeast Asia. This year, the textile Budget is Rs 4,500 crore. The government has allotted Rs 397 crore to promote the integrated textile parks in the country, she said.

Source of this news is http://www.business-standard.com/india/

Mills requesting restoration of duty drawback

Saturday, May 1st, 2010

An appeal for reconsidering the withdrawal of duty drawback on exports of cotton yarn has been submitted by textile mills to the Union Government. A notification has been issued by the government in this regard on 29th April 2010.
V.S Velayutham, Chairman, Cotton Textiles Export Promotion Council explained in a release that withdrawal of duty drawback was basically a timely tested scheme initiated for reimbursing the incidence of excise and customs duties levied at the product’s input stages.

Agreement of WTO on countervailing measures and subsidies permitted remission or exemption of prior stage cumulative indirect import charges and taxes levied over inputs which are used for the development of export products

Mr. Velayutham told that the government had already handled a blow to trade of exports and had also moved against their own principle of goods exporting without taxes.

J. Thulasidharan, Chairman of Southern India Mills Association explained that duty drawback was actually not an incentive.

It was simply a duties refund and was levied on most export commodities. Prices of yarn were determined by market experts depending upon demand and supply and any kind of moves made for getting artificial control over the intermediary products definitely would bring an effect on the functioning of the whole textile value chain.

Govt. taking steps for domestic availability of cotton, yarn

Thursday, April 29th, 2010

SME Times News Bureau | 29 Apr, 2010
The government has initiated different measures to ensure adequate domestic availability of yarn and raw cotton, Minister of State for Textiles, Panabaaka Lakshmi said on Wednesday in a written reply in the Rajya Sabha.

In a bid to ensure yarn availability for the domestic textile industry, the government has initiated a range measures including registration of yarn exports, removal of DEPB incentive on yarn exports and test check of fulfilling the hank yarn obligations to ensure adequate yarn supply to handloom weavers, said Lakshmi answering a question raised by T.T.V.Dhinakaran in the Rajya Sabha.

She further stated that Textiles Ministry has received a number of representations from garment and handloom sector regarding supply line distortions and steep increases in yarn prices.

Answering to another question, the minister added that the government has also taken a slew of measures to ensure adequate domestic availability of raw cotton, including imposition of export duty on raw cotton and cotton waste, suspension of Registration of Cotton Exports to ensure a carry forward stock of 50 lakh bales from the cotton season 2009-10.

The government has also intensified monitoring of the cotton situation through the Cotton Advisory Board, Lakshmi said.

An abrupt and abnormal increase in prices of the cotton yarn has hit the domestic textile industry. The government has decided to halt cotton exports from April 19 to ensure adequate availability of raw cotton for the domestic industry.

This is printed here http://smetimes.tradeindia.com/smetimes/news/top-stories/2010/Apr/29/

RPT-OUTLOOK-India cotton seen down on export ban

Tuesday, April 27th, 2010

Tue Apr 27, 2010 8:27am IST

MUMBAI, April 26 (Reuters) – India’s cotton prices may fall sharply after India stopped exports of the commodity last week, analysts and traders said.

India has stopped cotton exports to control soaring local prices, tightening global supplies and raising prospects of a further rise in New York futures that rose to a two-year high last month.

Spot prices of most popular variety of cotton have come down by 3 percent since the ban imposed last Tuesday. The prices had risen upto 54 percent compared with the same period last year.

The Indian government stopped registering new contracts for exports from April 19 after a panel of ministers discussed steps to arrest the sharp rise in local cotton prices, an official statement said.

This month, the chairman of the government’s Cotton Advisory Board said India’s cotton exports in the year to September 2010 were likely to more than double to 8 million bales on strong demand from China and Bangladesh.

Out of 8.5 million bales of cotton registered with the authorities for exports, 6.01 million bales had already been shipped out, a senior official in the textile ministry told Reuters last week.

“Global prices will rise …but domestically prices may come down,” said Vandana Bharti, head of research at SMC Comrade.

However, the textile industry, which is the primary user of the commodity, believes prices may not come down significantly as already large amount have been exported.

“It’s too late …the cost of production has been very high for large part of the year…now there is not much stock left anyway,” said an official with a textile industry association.

(Editing by Sourav Mishra; Editing by Prem Udayabhanu)

This news from http://in.reuters.com/article/domesticNews/idINSGE63Q02H20100427

Govt willing to withdraw duty sops levied on cotton yarn exports

Saturday, April 24th, 2010

Four percent incentives levied on exports of cotton yarn with the aim of maintaining their prices within the domestic market might be withdraw soon by the government very soon.

Benefit of four percent duty provided to the exporters of yarn under the scheme named Duty Drawback might be withdrawn very soon, told sources, further telling that the government was willing towards imposing export duty over the cotton yarn.

On 21st April, another scheme of export sop on yarn called as DEPB, Duty Entitlement Pass Book was withdrawn.

Alongside, the exporters of yarn are being urged to register their textile dispatches which the Commissioner of Textile.

Incentives can be available by exporters either under Duty Drawback Scheme or DEPB.

On 6th April, Finance Minister discussed and expressed ways of checking yarn and cotton prices in an inter-ministerial meeting.

Prices of cotton yarn have been raised by more than 30per cent during the previous three months time.

Karnataka hosts roadshow in Surat for its investor meet

Thursday, April 22nd, 2010

Posted: Thursday , Apr 22, 2010 at 0304 hrs
Express News Service

The Karnataka government on Wednesday organised roadshows in Surat to attract national players in the textile industry to participate in the global investors’ meet in Karnataka in the first week of June . Goolihatty D Shekhar, Minister of Textile, Youth Services and Sports in Karnataka was present in Surat on Wednesday afternoon with delegates from the textile ministry. Karnataka had recently announced a new policy ‘Suvarna Vastra Neethi’, with the aim to develop the textile industry in the state.

Senior Manager Girish Kamath said: The state government is ready to provide incentives and concessions like capital subsidy, entry tax reimbursement, land acquisition, power subsidy, among others to the investors setting up units in Karnataka. This will be in addition to the incentives provided under the TUF and SITP schemes. The state government has offered small and big textile industries players to avail these opportunities.

Surat Art Silk Cloth Manufacturers Association president Arun Jariwala said the Karnataka government should start educational courses in the state for the benefit of the youth.

This news printed in Indianexpress or view source of this news www.indianexpress.com/news/karnataka-hosts-roadshow-in-surat-for-its-investor-meet/609744/

Minister’s comments upset textile industry

Saturday, April 17th, 2010

Nigeria: Comments given by Senator Jubril Kuye, Commerce and Industry Minister were condemned by the producers of textile, explaining that any kind of financial support is not really required by the Federal Government.

Producers were disturbed with the comments given by Kuye explaining that government shouldn’t really rush to disburse textile revival funds. Stating on behalf of NTMA, Nigerian Textile Manufacturers Association, producers said that revival of the sector was needed for which disbursal of textile sector revival funds was important. This was also confirmed by stakeholders and experts of the industry. More than 30% of the problematic situations faced by the textile sector are mainly because of the lacking in finances.

On his way to a trip abroad, Kuye had explained that, With years of experience with me, I can see where the problem actually lies. Therefore my suggestion is that revival packages should not be paid out by the government.

He had also informed that, It should be more than just giving out finances to the textile industry, alongside with it, it’s necessary to make sure that abundant quantity of cotton in grown and the mills are given regular cotton supply