Posts Tagged ‘Cotton yarn exporters and manufactures’

Indian ban pushes Bangladeshi spinners to Australian cotton

Tuesday, June 8th, 2010

Submitted by Saurav Shukla

Dhaka, June 8 : Spinners in Bangladesh are switching to expensive cotton from Australia due to “uncertainties” caused by India’s export restrictions, the New Age newspaper said Tuesday.

Although India last month eased the restrictions partially, the newspaper said the spinners, awaiting arrival of 150,000 tonnes of Indian cotton contracted before a April 21 ban, found the suppliers “prevaricating”.

It quoted Syed Ishtiaq Ahmed, a director of Bangladesh Textile Mills Association (BTMA), as saying that Indian suppliers were not delivering the negotiated consignments, citing many pretexts.

“Bangladeshi spinners are even ready to pay cotton duty imposed by the Indian authorities but the suppliers are saying that they are unable to arrange stocks,” Ahmed said.

He said due to high costs, Australian cotton earlier did not attract them. But “global supply shortage and restriction on cotton exports by India this year have pushed Bangladeshi spinners to turn to Australian cotton”.

The Indian government had clamped the ban on export of cotton in a bid to control rising prices in the domestic market. It withdrew on May 21 the ban on Bangladesh and Pakistan bound consignments but on condition that export consignments would have to be licensed and contracted before the ban.

Shawkot Aziz Russel, managing director of the Partex Group, which has several spinning units, said no local spinner was sure about delivery of cotton consignments that had been contracted before the ban.

“Indian suppliers are telling us that they are yet to get clearance for shipping cotton to Bangladesh,” said Russel, whose company’s annual cotton procurement from India amounts to around $15 million.

Industry insiders estimate more than 150,000 tonnes of Australian cotton have been booked by Bangladeshi spinners.

“Nearly 30,000 tonnes of Australian cotton have been booked in the last few weeks by the Bangladeshi importers,” said Deepok K. Baral, managing director of DSM Commodities, a leading cotton merchant.(IANS)

Singapore-based Olam, a top global commodity trading house, alone has dealt more than 20,000 tonnes cotton contracts, said Baral, who represents Olam in Bangladesh.

China, Indonesia and Vietnam are major buyers of Australian cotton, but Bangladesh’s annual procurements from Australia remain at 5,000 tonnes or less.

News Source is http://www.topnews.in/

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Cotton under restricted list

Tuesday, May 25th, 2010

M. Soundariya Preetha

The Union Ministry of Commerce and Industry has brought cotton and cotton waste under the restricted list for exports through a notification dated May 21, 2010.

Thus, export license is now needed to export cotton or cotton waste. During the cotton season (October 2009 to September 2010), 85.26 lakh bales of raw cotton were registered for exports from October 2009 to April 15, 2010, and of this, 73.58 lakh bales were shipped. On April 19, the Union Ministry of Textiles suspended registration of cotton and cotton waste for exports.

According to Secretary General of the Confederation of Indian Textile Industry D. K. Nair, only a negligible quantity is expected to be permitted for further export from the current crop as the Group of Ministers had decided last month that a closing stock of 50 lakh bales should be maintained.

Cotton availability is likely to go up in the domestic market and prices will come down. This will, however, not affect farmers as most of the cotton production had already come to the market this season, he said.

News Source is http://beta.thehindu.com

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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/

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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.

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