Posts Tagged ‘textile updates’

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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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Textiles exports may touch $24 billion in 2010-11

Monday, May 24th, 2010

SME Times News Bureau
With the revival of demand in Western markets, India’s textile exports may grow up to $24 billion in 2010-11 from an estimated $20 billion in the previous fiscal, industry and government officials have said in New Delhi.

“In 2009-10, our textiles exports are estimated at $20 billion due to the global economic crisis. We expect exports to be $24 billion for the current fiscal,” an official in the Textile Ministry said.

The textile exports are set to move in sync with the country’s overall exports, which have been growing for six months since November, 2009.

Federation of Indian Export Organisations (FIEO) President A Sakthivel said textile exports can reach $24 billion if the government extends a helping hand to the industry, which is facing problems.

There has been a steep rise in cotton prices, which shot up by over 20 per cent in the past six months, resulting in higher fabric costs.

“The target can be met provided the government continues some regulations on cotton and cotton yarn exports,” he said.

The government has brought cotton exports under the restricted category, with overseas shipments subject to licensing.

US and European markets, which account for 30-35 per cent of textile exports from India, have seen revival of demand across different sectors, exporters said.

The exporters are also exploring new markets like Africa, Latin America and Oceania.

“Orders are improving. Demand for fabric has also gone up,” said Confederation of Indian Textile Industry (CITI) Secretary General D K Nair.

News Source is http://smetimes.tradeindia.com

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Dhaka textile firms lack skilled hands

Saturday, May 15th, 2010

PALPA: The cottage industries in Palpa are facing a shortage of workers after the youths from the district have been lured towards foreign employment. This situation has arisen after increasing number of youths from the district started going for foreign employment due to the low wages and irregular pay at home.

The traditional Dhaka textile industries, a hallmark of Palpa district, have been hit hard by shortage of skilled workers.

The Karki Dhaka Udhyog located in the district headquarters Tansen is facing shortage of manpower at present. This Dhaka textile factory needs approximately 60 skilled and semi-skilled workers. There are only 25 workers at present.

Proprietors of Dhaka textile industries in Palpa district say they are facing shortage of skilled human resources as an increasing number of youths started going abroad for work or those already employed at their factories left their jobs to go on foreign employment. Although more than 400

industries, including the Dhaka textile industries, have been registered in Palpa district, not even 50 per cent of them are in operation due to the shortage of skilled workers, an officer at the District Cottage and Small Industries Office said.

News Source is http://www.thehimalayantimes.com

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Nepali products get zero-tariff in Chinese market

Saturday, May 15th, 2010

Himalayan News Service
KATHMANDU: Nepal got zero-tariff for 4,721 products in Chinese market.

Purusottam Ojha, secretary of Ministry of Commerce and Supplies (MoCS) and Qui Guohong, Chinese Ambassador to Nepal today signed an agreement on Letter of Exchange (LoE) regarding zero-tariff on 4,721 Nepali products to Chinese market.

Before the agreement Nepali exportable products were charged 10 per cent to 35 per cent customs duty.

The agreement on LoE will help decrease trade deficit with China, OJha said adding that amongst 4,721 products, 361 products will get direct benefit. The most essential products like carpet, leather, coffee, Juice and silverware will get zero-tariff in the Chinese market, he added.

Earlier, China has announced top provide zero-tariff to Least Developed Countries (LDCs) gradually. Tariff reduction has been a key issue in global trade, the envoy said adding that China is committed to WTO. China is against the trade protectionism as it hurts the global trade, he added.

During the year 2009 bilateral trade registered $414 million. The trade balance is in favour of China. This agreement will help Nepal balance the trade deficit, Guohong said.

Requesting to take part in the trade expos that are going to be held in China he also urged the entrepreneurs to take advantage from the concession.

Welcoming the Chinese gesture, president of Confederation of Nepalese Industries (CNI) and CA member Binod Chaudhary asked China to open up more. We are hopeful that China will gradually provide zero-tariff to 90 per cent goods, he said. Nepal also looks forward to Mutual Investment Agreement with China, Chaudhary added.

Supporting the envoy on development of Export Promotion Zone (EPZ) at Panchkhal, he also requested China to help in it.

The major Nepali exportable products to China are mushroom, orange, cherry, coffee, carpet, garment, beer, incense-sticks, match sticks, apple, tomato, onion, potato, strawberry, honey, cauliflower, brocauli, biscuit, grapes, soap, shampoo, mineral water, textile cotton clothes, wool, brass, fruit juice, leather products, marble, paints, ceramics, jewellery, copper wire, and cable which has been granted free customs.

News Source is http://www.thehimalayantimes.com

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Textile mills shut across the country in protest

Wednesday, May 12th, 2010

FAISALABAD/KARACHI All the textile mills remained closed throughout the country on Tuesday in the wake of a strike call given by Value-Added Textile Forum against the yarn and cotton crisis and power load shedding.

Value-Added Textile Forum sources told TheNation that complete strike was observed in Faisalabad as well as in the country by the textile sector while some 10,000 textile mills were totally closed in Faisalabad including 400 stitching, 300 dying, 450 printing, 1,000 hosiery and 350 sizing units.

Rallies were organised in all the four districts of Faisalabad division including Jhang, Chiniot, Toba Tek Singh and Faisalabad districts. Protest were also reported from other major cities including Karachi, Gujranwala, Sialkot and Multan.

Most of the rallies were led by the factory owners. Thousands of textile workers took part in the rallies. The protesters carried banners and placards inscribed with slogans: ‘Save the Textile Industry, Save the Country and Clamp Complete ban on export of cotton and yarn’.

The activists also chanted slogans against Prime Minister Yousuf Raza Gilani and President Asif Zardari. The workers warned the government of dire consequences, asserting they would not allow anyone to play with the livelihood of the laborers.

Thousands of workers and owners of value-added textile sector took out protest processions from various places and blocked the city roads. The main protest procession was taken out from Khurrianwala Industrial Estate, which was led by Chairman Pakistan Textile Exporters Association Khurram Mukhtar and Vice Chairman Sohail Pasha and other leaders of Value-Added Textile Forum. The rally demanded total ban on export of yarn with a view to saving the industry from collapse and the workers jobs.

Read more here http://www.nation.com.pk

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Eurozone crisis may hit exports to EU: Fin Secy

Tuesday, May 11th, 2010

SME Times News Bureau
The Eurozone debt crisis may have some adverse short-term impact on Indian exports to the European Union, said Finance Secretary, Ashok Chawla on Monday.

Inaugurating ASSOCHAM organized Conference on Banking and Financial Regulators in New Delhi, Chawla admitted that India’s exports in short term to the EU and it’s market could face some problem due to it’s ongoing financial crisis.

Chawla, however, added that the financial turmoil will have “minimum effect” on India’s exports in current fiscal.

“In the long run, however, the impact would be negligible as India has faced bigger crisis of larger volumes without letting it’s economy shrink beyond a point and the current crisis of Europe are going to be a temporary affair,” he said.

“Therefore, there is no need to worry on this front,” assured the Finance Secretary.

On the same day, Commerce Minister Anand Sharma told reporters at the sidelines of a conference in the national capital that India has not seen any significant adverse impact from the European debt crisis.

A crisis of confidence in Europe has been triggered by a potential debt default by Greece. The European Union and the International Monetary Fund (IMF) have announced a $1 trillion emergency financial aid package, which is expected to stabilise world financial markets and curb speculative attacks on the Euro.

With the euro gaining USD 1.30 in the late European morning trading on Monday after assurances by European leaders to save the currency from falling apart, Indian firm who export a bulk of their products to the EU heaved a sigh of relief. In many export segments like garments, 50-70 percent of the invoicing is done in euro.

Chawla went on adding that domestic capital market would also absorb the off shoot of crisis, arisen in European markets in the sense that FIIs investments into it would continue and the flight of their capital is unlikely to other destinations.

The domestic economy, according to the Finance Secretary would move on to double digit growth rate but the challenge for policy maker will remain for this growth to be made inclusive.

Source of this news is http://smetimes.tradeindia.com

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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

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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/

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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.

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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/

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