NEWS CLIPPINGS - Export · Bangladesh (ICAB), Md. Syful Islam said the auditors must give their opinions if they find variation in the maturity point of asset re-valuation. "Otherwise,

IBTEX-190 of 2012 DECEMBER 24, 2012

I n f o r m a t i o n B u r e a u T E X P R O C I L | Page 1 of 29

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NEWS CLIPPINGS

No Topics Page Nos

INTERNATIONAL NEWS

1 Bangladesh: Textile cos on the move to raise Tk 17.0b from capital market

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2 Bangladesh: Textiles and clothing trade in the next decade 6

3 Pakistan: Textile millers concerned over tariff gap 13

4 28 new projects to boost Uzbek textile industry 14

5 Shanghai to host first Asian version of SURTEX in 2013 16

6 USA: Weekly Cotton Market Review 17

NATIONAL NEWS

1 Textiles Ministry to conduct one-day workshop in Indore 23

2 Textiles industry seeks easier imports of cotton yarn, fabric

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3 Indian textile exporters seek incentives from govt 25

4 CAI estimates cotton prodn. At over 355 lakh bales in 2012-13

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5 Govt to announce incentives for exports soon: Anand Sharma, Commerce and Industry Minister

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INTERNATIONAL NEWS

Textile cos on the move to raise Tk 17.0b from capital market

Textile companies are making all-out efforts to go public sooner rather than later to raise capital from the primary capital market as banks are maintaining a cautious policy about disbursing industrial credits, following some loan scams amid their mounting burden of classified loans.

This correspondent found it while talking to top executives of different banks, bourses, some company owners in textile sector and market experts.

They said the companies in the textile sector which contributes significantly to the country's gross domestic product (GDP), have no bar to raising their capital but it is urgent to ensure proper enforcement of IPO (initial public offering) rules and regulations, particularly about the uses of funds.

Among the 50 companies which recently submitted IPO proposals to go public, 32 per cent of them has come from the textile sector to raise fund of over Tk 17.0 billion.

Some of the companies have asked for a premium up to Tk 40 for each ten taka share.

The issue managers said 20 other companies in the textile sector have also planned to go public.

The officials of the Securities and Exchange Commission (SEC) and Dhaka Stock Exchange (DSE) said the textile companies are the majority ones in the line of pending IPOs.

Presently, among 242 listed companies of 18 sectors with the country's bourses, 28 are from textile sector, securing the third majority position. At least, one IPO of the sector is being approved by the regulator every two months' period.

Managing director of NCC Bank Mohammed Nurul Amin, said presently the banks are very watchful over the disbursement of industrial loans and it may be the main reason for the textile companies to go public.



"First of all, the companies are to pay high interest charges on bank loans. Secondly, the banks are also reluctant about disbursing loans. That's why a bank will not disburse credits without considering the payback capacity of a company," Mr Amin told the FE.

He said the companies in the textile sector are trying to move to the capital market for raising funds through a comparatively easier way, as there is no tension of paying high interest charges on such funds.

Echoing Amin, deputy managing director of Prime Bank and former SEC member Muhammad Yasin Ali said presently, the banks are less interested to provide industrial loans because of their growing burden of classified loans.

"It is not easy to get back the loans from the companies which are not fully compliant. Secondly, some recent loan scams, including that of Hall-Mark Group, have made the banks more cautious about disbursing loans. That's why the companies of the textile sector are going to the capital market for raising fund," Mr Ali told the FE.

He said at the same time, the textile companies are getting comparatively better prices, despite the bearish condition of the stock market. This has also inspired others to go public, he added.

Executive director of think-tank Centre for Policy Dialogue (CPD) Professor Mustafizur Rahman took a positive note of the move of the textile companies to raise their equity capital from the primary market, thus easing the pressure on banks.

"I want to consider the move positively. It will create an opportunity for the banks to provide loan facilities to other sectors if the textile companies are able to raise capital through IPOs," Rahman told the FE.

At the same time, he also stressed the need for using funds under proper monitoring arrangements by the concerned authorities.

"The SEC, the bourses, the company boards and the auditors have a responsibility to ensure proper utilisation of IPO funds for ensuring a strong capital base of this important sector," Mr Rahman added.



DSE senior vice-president Ahmad Rashid Lali said it is the time to be more cautious before giving approvals to the IPOs of companies, including those in the textile sector, for protecting investors' interest as many companies are coming to obtain funds easily.

"We will not raise any objection to any company -- whether it is in the textile sector or not -- if it goes public on the basis of proper books of accounts," Mr Lali said.

Citing one case of deception by a company which also submitted its IPO proposal, Mr Lali said the company showed its earning per share (EPS) at Tk 1.70 and Tk .3.72 in 2011 and 2012 respectively.

"The EPS, however, can reach Tk 3.72 from Tk 1.72. But how is it possible that the company will show its asset re-valuation of Tk 440 million in cash flow without selling any asset?" he asked.

Mr Lali said the textile companies are trying to go public, as it is easier to raise funds from the primary capital market without paying any interest charges.

"A company in the textile sector will have to pay interest charges to the tune of Tk 18 million per year if it takes a bank loan of Tk 100 million. In that case, the company in order to maintain its viable operations, will have to make a profit at around 40 per cent which is very difficult to earn under the prevailing circumstances," he observed.

For ensuring proper utilisation of IPO funds, the DSE made a proposal that was submitted to the securities regulator, about submission of the compliance report by the banks on the utilisation of the IPO money.

"Under the DSE's proposal, the respective bank will require to inform the regulator and the bourses submitting the compliance report on the withdrawal of IPO fund for the purpose of company expansion. India introduced this provision long ago," Mr Lali added.

When asked, a senior official of the SEC said the regulator will try to clear the IPO proposals of the companies after their proper examination and scrutiny.



"But the auditors have a big responsibility while giving certificates at the time of submission of financial statements. Their proper and factual certificates can help the companies utilise the IPO funds properly for their expansion," the SEC official said.

When asked, president of the Institute of Chartered Accountants of Bangladesh (ICAB), Md. Syful Islam said the auditors must give their opinions if they find variation in the maturity point of asset re-valuation.

"Otherwise, the SEC and the concerned authorities can go for actions against the auditors," Mr Islam said.

Secretary of Bangladesh Textile Mills Association (BTMA), Md. Monsoor Ahmed said the banks are less interested about project financing and that is why the companies in the textile sector are going to the capital market for raising fund.

"Secondly, it is easier for the companies to re-pay the loans, taken earlier, by raising capital through IPOs or offloading shares after going public," Mr Ahmed said.

He said the IPOs are more lucrative to the companies than bank credits that carry interest charges at 18 per cent.

The owners of textile companies which have submitted IPO proposals, have also admitted that they are trying to go public for their expansion to relieve themselves of the burden of costly bank loans.

"A significant portion of our company's profits goes for meeting the interest charges by the banks. That is why we are trying to go for expanding our capital base to lessen the burden of bank loans, taken earlier, by raising funds through the IPO," said managing director of Mozaffar Hossain Spinning Mills, Mozaffar Hossain.

He, however, stated his company has duly considered the interest of investors without demanding any premium at the time of floatation of IPOs.

Managing director of Envoy Group Abdus Salam Murshedi said the textile companies, with good fundamentals, should go public to strengthen the operational base of the stock market.



"Our company Envoy Textiles, which recently went public, is in a good position, although it went public at a critical time. The concerned authorities should be alert so that the bad incidents do not occur again in the country's stock market," said Mr Salam.

The companies whose IPO proposals are under the scrutiny of the SEC are: Far East Knitting and Dying, Keya Cotton, Paramount Textiles, Hamid Fabrics, MP Spinning, Matin Spinning, Keya Spinning, Familytex (BD), Dragon Sweater and Spinning, Mozaffar Hossain Spinning, Tung Hai Knitting and Dying, Fiber Shine, Hwa Well Textiles (BD), Royal Denims, Shasha Denims and Aman Cotton Fibrous.

www.thefinancialexpress-bd.com – Dec 24, 2012

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Textiles and clothing trade in the next decade

Over the years textile trade has become a centre of discussion due to its globalisation integrating developing countries and LDCs (least developed countries) and its impact on the global environment. The trade has been a centre of controversy, as it has contributed to economic growth, job creation, poverty alleviation, while at the same time has negatively impacted environment, especially global warming, destruction of bio-diversity and ecological balance.

Today consumers have become more aware of the need to protect the environment and companies use the terms eco-friendly to promote their goods and services with eco-labels. Establishment of Effluent Treatment Plant (ETP) and avoidance of hazardous chemicals in the textile processing have been discussed so much in workshops and seminars that stakeholders are aware of these issues. Therefore, these issues have been set aside in this article. Rather issues that have not been much discussed shall be dealt with here which also have had profound impact on the environment while trading in textiles and clothing.



We know that the term environment-friendly generally refers to eco-friendly, nature-friendly and at time green to refer to goods and services claiming no harm to environment. Clothing is not only an integral part of our lives but also one of our physiological needs that has a direct relationship with environment. Environmental concerns started to draw more attention in the textiles and clothing sector owing to global warming and destruction of bio-diversity. Global pollution supported by increased awareness is prompting consumers to seek healthier living choice. So what we see is more emphasis in getting momentum in green supply chains. Studies conducted by Moore and Ausley stated that productivity could be increased through greener production induced by cooperative stakeholders' actions, i.e. green supply chain and management drivers such as organisational support, social capital and government involvement including cooperation with customers, eco-design and investment recovery.

Besides recovery of energy from cotton ginning waste with greenhouse gas emissions reduction could be a step for competitiveness and eco- friendly production process. This has been revealed by a study conducted by Zabaniotou and Andreou in Greece. Textile industry globally produces around 60 billion Kg of fabrics per year and contribute significantly to international trade, employment generation, GDP growth and economic development. At the same time this production process contributes significantly toward industrial carbon foot prints generally known as "an elephant in the house" responsible for global warming. It is estimated that through the production of fibres, both natural and synthetic, dyeing, bleaching and finishing around 132 million metric tons of coal are burnt every year and around six to nine trillion litres of water are consumed. Every year about 120 million tonnes of sulphur dioxide and around 40 million tonnes of nitrogen oxides are released by industrialised nations. In 2011 around 38.2 billion tonnes of carbon dioxide has been released into the environment by industrial units globally.



Eco-labelling: Eco-labelling systems for textile products have been studied and a simple structure was developed as a base for labelling. They are energy consumption levels during fibre production, spinning, weaving, knitting, wet processing, determining transportation in Kilo miles, investigating raw materials in Kg according to renewable or non-renewable, investigating water consumption, controlling industrial emissions, to water, analyzing use of harmful substances, evaluating working environment in the aspect of noise level and temperature.

Here are some interesting aspects of the magnitude of the negative impact on the environment by industrial units. A study undertaken by University of Copenhagen in 2008 revealed that by simply reusing the second-hand unused 1.0 kg of clothing rather than going for producing a new one, we can reduce 3.6 kg of CO2 emissions, save 6000 liters of water consumption, 0.3 kg of fertiliser use and 0.2 kg of pesticide. In many African countries over 80 per cent of the population dress themselves in unused second-hand clothing.

WHO findings: According to the World Health Organisation (WHO), a significant number of deaths occur annually in developing countries from use of poisons pesticides used in crops. Cotton alone uses about one fourth of the world's insecticides. It has now been observed that synthetic fabrics and clothing fibres processed with heavy chemical agents are facing declining popularity because of the harmful effects on our planet and on our health.

More than a million tons of textiles are thrown away each year, most of which by households rather than industry. Today many recycling centres, charities and collection projects accept textile goods. Clothing, blankets, curtains and other items made of fabric can be reused if they are in good condition or converted into new products. Presently 50 per cent of all textiles collected are reused and 50 per cent are recycled.

Vast amount of fibres produced are synthetic which are actually by-product of petro- chemicals (nylon, polyester, rayon). They consume huge energy to create.



In addition to that chemicals used in manufacturing end up as toxins, polluting air, soil, water. Besides cotton fibre production requires huge use of pesticides, chemical fertiliser and water. Dyeing and bleaching of fabrics involves chemicals, energy and water. It is estimated that every year around 1.0 million metric tons of chemicals and dyes are used for bleaching and dyeing. All these issues will be significant factors all over the world including Bangladesh in the next decade. This may be a wake up call for our textile and clothing producers now. Without properly addressing these issues it would be difficult to have buyers' acceptance and remain competitive and sustain.

The global apparel market has been changing under the influence of many factors. For example, developed economies have been shifting textile and apparel production to developing economies and four major production blocks have emerged as contenders. They are China, India, Bangladesh and Pan European and Mediterranean region.

Eco-friendly clothing: One thing textiles producers here should remember that eco-friendly clothing is created from resources that are environment-friendly and sustainable and efficient management of obtaining them requires to consider all stages starting from designing for the environment, obtaining raw materials, producing garments, distributing them to the channels, stores and considering their reverse logistics and waste management and disposal. Future customers in the big chain shall emphasise on those and also at the same time like to see as to how the vendors handle issues listed below that impact environment negatively. However, organisations do not have to consider each product and component or raw material input individually. They may select categories of activities to relate to their environmental aspects. They are:

* Carbon emission to air

* Release of chemicals & dyes to water

* Release of contaminated water to land

* Quantum of use of raw materials and natural resources

* Amount of energy used

* Amount of energy emitted

* Waste and by-product disposal



* Other physical attribute

Consideration shall also be given to aspects related to organisational activities such as:

* Design and development of product & factory layout

* Manufacturing process

* Workplace safety

* Packaging and transportation

* Environmental performance

* Waste management

* Extraction and distribution of raw materials & natural resources

* Distribution to consumers/ buyers

* Wildlife and bio-diversity protection.

Many textile experts and environmentalists believe that current production process in many textile producing countries is not sustainable in the long run due to significant rise in environmental awareness. They felt that there is a strong need to go for energy efficiency production process. Many new inventions in the field of technology have taken place to have environmentally acceptable production process. At the same time new generation chemicals and dyes are available in the market which could be used for eco-friendly production. This may increase cost of production and lead to higher prices of the products, but the final consumers probably would not hesitate to pay as long as the produce is eco-friendly. Big retailers also would be agreeable to pay higher price for clean production process. Even small changes as outlined below may save money, resources as well as environment. They are:

* A need to raise awareness for eco-friendly product and production process

* Choose organic cotton over conventional cotton and avoid synthetic fibres

* Go for innovative processing system



* Restructure and redesign production process to integrate environment and competitiveness.

Bangladesh perspective: So far our discussion and analysis was confined to global production process and its impact on the environment. Now let us look into Bangladesh perspective. Bangladesh textile sector as a whole has very little negative impact on environment. It is only the Dyeing, Printing, Finishing sub-sector which has some impact as they are the only sub-sector that go for the use of chemical and dyes use. Beside that textiles raw materials are mostly imported where anti-pollution actions are beyond the realm of Bangladeshi textile producers. What they can do is try to convince the buyers and ultimate consumers that to have environment-friendly clothing, they shall have to pay slightly higher price. Developed countries applied environmentally improvement programme for cost saving, especially in textile sectors, through reduction of chemical waste and water use by 95 per cent and 85 per cent respectively. This achievement has been possible due to introduction of environment protection production programme and improved technology action plan.

Environmental degradation has historically occurred due to ignoring pollution, diluting waste water into water bodies, and land/soil, rampant use of chemicals and dyes. So textile dyes, printing and finishing should continue in an integrated manner using preventive environmental strategy in processes, products and services to augment eco-efficiency and to reduce risks for humans and the environment. For manufacturing processes, environment preventive production should include:

* Conserving raw materials, water and energy

* Eliminating toxic raw materials, chemicals and dyes( New generation dyes & chemicals )

* Reducing the quantity and toxicity of all emissions

* Reducing waste at source



All these could be a powerful combination of higher efficiency, increased competitiveness, huge financial cost savings, greater customers' acceptability including improvement in environment. While going for textile dyeing and printing we need to take into account textile wet processing. In most of the cases textiles effluents are coloured and saline, so they contain non-bio-degradable compound and are high in BOD and COD (Biological & Chemical Oxygen Demand). When combined together, they entail serious complex problems to treatment work and add to extra costs. In the next decade heavy pressure will come all over the world from government regulators, consumers and multinational buying houses and corporations for the introduction of waste and pollution management practices. At present some companies are focusing on reducing pollution or wastage or recycle wastage for some other purposes globally.

Here in Bangladesh we should strive to go for prevention rather than developing expensive treatment schemes. In addition to that a plan may be drawn up with measurable reduction in water, energy, chemical inputs and effluent discharge, Also we should go for transfer knowledge on environment protection production plan and build local capacity to sustain the process. Further we need to create awareness on environmental problem s and the possibilities of solving them through effective plan. We shall have to introduce environment audit at least to satisfy our customer that we are aware of the issue and trying to go green and have clean production. The competitive environment forces industries throughout the textile producing world to redesign and restructure their existing production process. In such a situation we cannot sit idle. The wakeup call has been sounded, and we need to rise to the sound for a better tomorrow.

The author is a part-time faculty at BUFT, Primeasia and South East University & an adviser to BTMA. Views expressed are that of the author's and they have no link to the organisations he represents. He was a former Director General (Textile) at EPB. hassan. youngconsultants @ gmail.com

www.thefinancialexpress-bd.com – Dec 23, 2012

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Pakistan: Textile millers concerned over tariff gap

Sunday, December 23, 2012 - Lahore—Tariff gap is a cause of concern for the power-reliant textile mills, paying Rs12 per unit in a situation when the cost of each unit is around Rs6 for the mills busy in self-generation of electricity through gas supply from the system.

But the problem is that the power-reliant mills are note more than 20 percent of the total and rest of the 80 percent mills have switched over to self-generation of electricity through gas supply from the system after investing millions of rupees in the installation of Captive Power Plants (CPPs) since 2002 and around.

The power-reliant mills, however, are having a strong feeling that they are paying through their nose until the government ensures an equal opportunity to grow by equalizing the tariff both for them and gas-fed mills. If not possible, they add, the government should divert gas supply of CPPs to the government-owned Generation Companies (GENCOs) and supply electricity to the whole of industry without tariff discrimination.

Majority of the power-reliant mills are closed at present due to tariff problems coupled with unprecedented loadshedding, haunting the industrial growth since November 2007. Not only this, these mills are also defaulting on bank payments one after another, remaining clueless as how they can get out of this quagmire.

Unfortunately, these 20 percent of the total industry are financially weak to the extent that they are not able to lobby fortheir rights. The APTMA sources, on the other hand, have informed that the APTMA had invited all the power-reliant textile millers a few months back to take suggestions as how the APTMA should proceed further on the issue.



The APTMA leadership had urged these millers to remain active on the platform of the association to exert required pressure on the government. The APTMA leadership had also agitated before the Prime Minister Raja Pervez Ashraf against withdrawal of exemption from loadshedding to textile mills on independent feeders.

The Prime Minister had constituted a committee then and there to solve the issue. The committee considered a special industry tariff against guarantee of uninterrupted power supply, which disapproved by the millers fearing that it would become permanent tariff when there is not power shortfall in the country.

/pakobserver.net/ – Dec 23, 2012

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28 new projects to boost Uzbek textile industry

"O'zbekyengilsanoat" State Joint Stock Company will complete 28 investment projects until the end of 2012. The announcement was made during a press conference at the National Press Center of Uzbekistan in Tashkent.

Cotton yarn, fabrics, sewing, sewing and knitting products, hosiery –this is not a complete list of the products range of 290 companies under the O'zbekyengilsanoat umbrella. Many of them are joint ventures that have been created due to conducive and favourable legal framework for protecting foreign investment in Uzbekistan, and effective system of incentives and preferences, which became the basis for effective cooperation with foreign investors.



In particular, the resolutions of the President Islam Karimov "On the priorities of industrial development of Uzbekistan in 2011-2015" dated December 15, 2010, and "On the investment program of the Republic of Uzbekistan for 2012" dated December 27, 2011 opened broad prospects for the textile industry.

Chairman of the Board of O'zbekyengilsanoat SJSC Ilkhom Khaydarov highlighted in his presentation that in line with these directions, O'zbekyengilsanoat has implemented 28 investment projects in 2012 with a total value of more than 194.8 million USD, which led to the creation of more than 3.7 thousand new jobs.

One of the most notable projects was the establishment of the textile machinery production site in cooperation with the the renowned Swiss engineering company Maschinenfabrik Rieter AG in Tashkent. The project has been implemented within the framework of the agreement between O'zbekyengilsanoat and Maschinenfabrik Rieter AG, which aims at equipping the industry with high-tech equipment at competitive prices in the national currency and in timely manner.

The first phase of the project requires production of tape and carding machines, the second - ring spinning machines, the third phase envisages commissioning workshops for metal processing and powder coating. To date, the launch of the first stage took place, which created 40 new jobs.

Another equally prominent investment project was the organization of spinning production on the basis of "Shovot Textiles" LLC in Khorezm region. The project with an annual production capacity of five thousand tons of cotton costs $25 million. It should be noted that the activity of the company is focused not only on the production of high-quality products, but also has a social component.



Uzbekyengilsanoat management believes that organization of spinning production at "Elite Stars Textil" LLC in the Republic of Karakalpakstan, commissioning of the new "Bukhara energy textiles" LLC in the Bukhara region, expansion of spinning production at "Fargona Turon Textiles" LLC in Ferghana region deserve attention.

In general, full implementation of the 28 projects by the end of 2012 will increase the production of cotton yarn by 60.5 million tons, cotton fabrics by 7.5 million linear meters, knitted fabric by 6.2 million tons, garment and knitwear for 3.7 million units as well as 40 units of tape equipment will be produced.

In 2013 the company will continue technical and technological re-equipment of existing and creation of new high-tech production facilities, which will allow to create new jobs. New capacities for increasing the volume of cotton fiber processing will boost export of finished products abroad.

Government of Uzbekistan

Fibre2fashion – Dec 23, 2012

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Shanghai to host first Asian version of SURTEX in 2013

SURTEX Asia, a unique trade fair that aims to address all the issues related to textile surface designing for Asian manufacturers, will be held in Shanghai, China from 25th to 27th August, 2013.

Based on the lines of highly-regarded SURTEX in New York City, the first Asian version of the fair would feature more than 50 apex textile design studios from the UK, Europe, North America, South America and Japan.



Over 1,500 manufacturers, specializing in decorative fabrics, curtains, upholstery, floor and wall coverings, as well as contract and apparel textiles, from China, Southeast Asia and the Middle East are expected to attend the three-day-long fair.

A special conference giving valuable insights on latest international surface design trends in terms of color, style and pattern, will be organized off the show floor for the Asian community.

Launched by the US-based tradeshow and event production company GLM, SURTEX Asia will also introduce a bilingual, comprehensive website on the day of its launch.

Surface designing, also known as fabric embellishment, is a method with which the designers utilize fabrics as an abundant source of dimensional and structural enhancements, with ample opportunities for experimenting with color, texture and design.


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Weekly Cotton Market Review

Spot cotton quotations averaged 129 points higher than the previous week, according to the USDA, Agricultural Marketing Service’s Cotton Program. Quotations for the base quality of cotton (color 41, leaf 4, staple 34, mike 35-36 and 43-49, strength 27.0-28.9, uniformity 81.0-81.9) in the seven designated markets averaged 71.28 cents per pound for the week ended Thursday, December 20, 2012.



The weekly average was up from 69.99 cents last week, but down from 83.35 cents reported the corresponding period a year ago. Daily average quotations ranged from a low of 70.67 cents on Friday, December 14 to a high of 71.50 cents on Tuesday, December 18. Spot transactions reported in the Daily Spot Cotton Quotations for the week ended December 20 totaled 111,850 bales. This compares to 142,912 bales last week and 23,387 bales reported a year ago. Total spot transactions for the season were 939,952 bales, compared to 354,785 bales the corresponding week a year ago. The ICE March settlement prices ended the week at 75.83 cents, compared to 74.56 cents last week.

Southeastern Markets

Spot cotton trading was active. Supplies were heavy. Demand was good. Producer offerings were heavy. Average local spot prices were higher. Trading of CCC-loan equities was inactive. Unseasonably warm conditions prevailed during the period with daytime highs in the low-to-mid 70s in areas of Alabama and Georgia. Scattered rainfall interrupted fieldwork over the weekend and localized rainfall accumulations totaled one to two inches.

Slightly cooler temperatures were observed in the Carolinas and Virginia and lesser precipitation amounts of around one-inch were recorded. The rainfall helped to recharge subsoil moisture, but droughty conditions expanded in many areas despite wet weather.

Harvesting continued in some areas throughout the region as weather permitted, and the last remaining fields were picked. Many gins increased revised estimates as exceptional yields continued to be reported. Some gins in North Carolina and Virginia completed pressing operations for the season. However, many gins continued to operate at capacity in order to process backlogs of modules on gin yards. Some gins had scheduled down time for the entire Christmas holiday weekend; a few gins planned to continue pressing operations through Christmas.



South Central Markets

North Delta

Spot cotton trading was inactive. Supplies were moderate. Producer offerings were light. Demand was light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting was reported.

A warm, moist air flow early in the week brought light rain showers to the region, but beneficial precipitation measured less than one inch. Seasonably cool daytime temperatures were in the mid-60s, while overnight lows fluctuated between the mid-30s and the mid-40s. Below freezing temperatures and more rain was forecasted for the Christmas holiday.

According to the U.S. Drought Monitor, soil moisture conditions improved slightly throughout the region. No outdoor activities were reported. Most cotton experts expect the amount of cotton acreage to decrease next year. Current estimates range from 20 percent to 30 percent less compared to this season.

South Delta

Spot cotton trading was slow. Supplies and producer offerings were light. Demand was light. Average local spot prices were higher. Trading of CCC-loan equities was inactive. No forward contracting was reported. The seasonal pattern of alternating warm and cold fronts continued during the week. High temperatures ranged from the mid-60s to the upper 70s, while overnight lows fluctuated from the upper 20s to the upper 50s. A warm front early in the week brought about two inches of welcome moisture to most of the region.

According to the U.S. Drought Monitor, soil moisture conditions improved slightly in the cotton-producing areas of Louisiana, while droughty conditions remained unchanged in the rest of the region. No outside activities were reported.



Most cotton experts expect the amount of cotton acreage to decrease next year. Current estimates range from 20 percent to 30 percent less compared to this season.

Southwestern Markets

East Texas-Oklahoma

Spot cotton trading was active. Supplies and demand were moderate. Producer offerings were light. Average local spot prices were higher. No forward contracting was reported. Trading of CCC-loan equities was slow.

Foreign mill inquiries were good.

In central Texas, one gin continued submitting samples to the Abilene Classing Office. In southern Texas, about five gins continued operations and two gins finished for the season. One gin experienced mechanical delays for most of the week. Harvesting was completed months ago, but the high-yielding crop prolonged the ginning season. In Kansas, harvesting was completed and the remaining gins continued pressing operations. In Oklahoma, most fields were harvested and about five gins continued pressing operations.

Some fields produced less than 60 pounds of lint per acre. Producers were concerned that the soil was dry five feet below the surface, and that the wheat crop critically needed precipitation to progress. Most areas urgently need precipitation to nurture next year’s crops.

West Texas

Spot cotton trading was active. Supplies and demand were heavy. Producer offerings were heavy. Average local spot prices were higher. No forward contracting was reported. Trading of CCC-loan equities was slow.



Foreign mill inquiries were good.

A severe dust storm moved through the region mid-week that caused havoc and disrupted progress. Module trucks were sidelined for about six hours, due to zero visibility on the roadways. Tarps blew off from some modules. The high winds further depleted any stored sub-soil moisture; precipitation is urgently needed. Immediately following the dust storm, frigid temperatures returned to the High Plains with lows in the teens and in the 30s for the Rolling Plains. Harvesting was virtually completed, with a few fields remaining. Some ginning operations had finalized for the season, and the Classing Offices responded by reducing shifts and work crews.

Western Markets

Desert Southwest (DSW)

Spot cotton trading was inactive. Supplies and demand were moderate. Average local spot prices were higher. No forward contracting or domestic mill activity was reported. Approximately three-quarters of an inch of rainfall were received in central Arizona early in the reporting period. The first freeze warning was issued for Thursday, December 20. Daytime highs were in the low to mid-60s, with overnight temperatures in the low-to-high 30s. Harvesting and ginning continued. Five gins were completed for the season. Temperatures were in the mid-to-high 60s under mostly sunny conditions in New Mexico and El Paso, Texas. Dry conditions continued. Rain and snow is desperately needed to replenish subsoil moisture.

Industry representatives reported a bleak outlook for 2013 cotton acreage. Ginning continued uninterrupted.

San Joaquin Valley (SJV)

Spot cotton trading was inactive. Supplies were moderate. Demand was light. Average local spot prices were higher. Producers continued to deliver previously contracted cotton. No forward contracting or domestic mill activity was reported. Snowfall was received in elevations over 5,000 feet in



the Sierra Nevada Mountain range. Traces of rain were received in the Valley early in the period. Freezing temperatures in the high 20s and low 30s were recorded late in the week. Approximately 70 percent of saw-gins were finished for the season. Roller-ginning continued uninterrupted.

American Pima (AP)

Spot cotton trading was inactive. Supplies and demand were moderate. Average local prices were steady. No forward contracting or domestic mill activity was reported. Foreign mill inquiries were steady. Interest was best from India and Pakistan. Some mills showed an interest in 2013-crop cotton, but no new sales were reported. A Pacific storm brought approximately three-quarters of an inch of rainfall to central Arizona and California received about one-tenth of an inch early in the period. Freeze warnings were issued for the region late in the period. Harvesting was completed. Ginning continued in Arizona, California, New Mexico, and Texas.

Textile Mill Report

Demand from domestic mill buyers was best for discounted styles of cotton such as color 42 and 51, leaf 5 and better, and staple 32 and longer for first through third quarter 2013 delivery. No sales were reported. Some mills planned two-to-five days of down time for the approaching holidays; other mills planned in excess of two weeks of down time, due to lackluster finished product demand entering 2013. Demand for ring-spun and open-end yarn was moderate.

Inquiries through export channels were moderate. Peruvian mill buyers inquired for a moderate volume of color 31, leaf 3, and staple 36 for nearby shipment. Indonesian mill buyers inquired for a moderate volume of color 41, leaf 4, and staple 36 for nearby shipment. Demand was also good for any discounted or low-grade Even-running lots containing a moderate volume of color 21, leaf 1 and 2, staple 37, mike 35-49, strength 28-31, and uniformity 80-83 sold for around 400 points on ICE March futures, FOB car/ truck (Rule 5, compression charges paid).



• Even-running lots containing color 31, leaf 2 and 3, staple 37, mike 35-49, strength 28-30, and uniformity 81-83 sold for around 275 points on ICE March futures, same terms as above.

• A heavy volume of color 21 and 31, leaf 4 and better, staple 35 and longer, mike 43-49, strength 28-31, and uniformity 80-83 sold for 76.00 to 77.00 cents per pound, same terms as above.

• Mixed lots containing color mostly 31 and 41, leaf 2-4, staple 34-37, mike 37-52, strength 27-29, and uniformity 80-82 sold for 100 to 150 points off ICE March futures, FOB car/truck, Georgia terms (Rule 5, compression charges paid, 30 days free storage).

• Mixed lots containing color 41, leaf 3-5, staple 34-36, mike 50 and higher, strength 30-32, and uniformity 81-83 sold for around 70.00 cents, same terms as above.

http://usda.mannlib.cornell.edu - December 22, 2012

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NATIONAL NEWS

Textiles Ministry to conduct one-day workshop in Indore

The Textiles Committee under the Ministry of Textiles, Government of India, will hold a one-day workshop on December 24 at Indore in Madhya Pradesh.

The workshop will be on ‘Post GI Initiatives for Brand Promotion through Market Linkage and Containment of Infringement of Selected Craft Indications of Madhya Pradesh."

Block prints of Bagh, one of the three products of Madhya Pradesh which has been registered under the Geographical Indications (GI) Act 1999, will be the focus area of the workshop.



The other two products to get GI accreditation are leather toys of Indore and bell metal of Tikamgarh.

The workshop is being organized under a project titled "Facilitating inclusion of Stakeholders in the process of GI Registration for Selected 21 Craft Indications of India", which aims to include the artisans of the selected crafts under GI in the part ‘B’ as authorized users under the GI Act 1999.

The project is jointly implemented by the Textiles Committee and Development Commissioner (Handicrafts), Ministry of Textiles, Government of India.

In addition to the officers of the Central and state governments, representatives of cooperative societies, research institutions, developmental organizations, manufacturing and trading associations and civil society organizations are expected to attend the workshop.

Fibre2fashion - December 24, 2012

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Textiles industry seeks easier imports of cotton yarn, fabric

NEW DELHI: The textiles industry today asked the Commerce Ministry to ease the process of imports of cotton yarn and fabric to help boost exports, which have been hit hard by the global demand slowdown.

"Imports of cotton yarn and fabrics should be permitted without licence at flat fixed customs duty rate," Apparel Export Promotion Council Chairman A Sakthivel said in a proposal to Commerce Secretary S R Rao

Bangladesh, Vietnam and Cambodia have achieved phenomenal growth through easy import policy of yarn and fabrics, he said, adding that the move will boost textile exports at competitive prices and help reduce widening trade deficit.



"The current scheme of advance licence in the foreign trade policy, although allows duty free import but it is a tedious route and is not used extensively by the exporters," Sakthivel said.

India's textiles exports declined 6 per cent year-on-year to USD 14.1 billion during the April-September period because of slowdown in major markets like the US and EU.

In the first six months of the 2012-13 fiscal, textiles exports stood at USD 14.18 billion.

The country's textiles exports stood at USD 30.4 billion in 2011-12. The government is hopeful of achieving the textile export target of USD 40.5 billion for 2012-13.

articles.economictimes.indiatimes.com – Dec 21, 2012

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Indian textile exporters seek incentives from govt

Indian textile exporters are concerned about the decline in demand for Indian clothing in international market and they demand incentives from both the Central and state governments to overcome the existing problems faced by the textile industry.

In a conversation with fibre2fashion, Mr. S Sivananthan, secretary of Textiles and Garments Exporters Association, Erode, said, “We are facing competition from countries like Vietnam, Cambodia, China and Bangladesh in garment exports.”

“Around 60 percent of garment exporters from Tirupur and 70 percent exporters from Erode, Salem and Coimbatore have closed down their factories in last few years,” he informs.

According to him, there are many problems faced by the apparel exporters in the country and they are seeking help from both the state and Central Governments. “The problems faced by the industry include shortage of power and skilled workers as well as fluctuation in dollar rates and yarn prices,” he says.

“We request the Central Government to appoint a committee to analyze the problems faced by the Indian textile industry,” he continues.



He opines, “The committee should include representatives from both Central and state governments and a representative from the textile industry.”

“The committee must recommend solutions to the Indian Government,” he adds.

He says, “If we do not give a new life to the Indian textile industry then export market will be taken away by countries like Vietnam and Cambodia and domestic market will be occupied by Bangladesh and China.”

Mr. Vijay Ahuja, President of Garment Exporters Association of Rajasthan (GEAR), says, “There is 30 percent decline in garment exports compared to last year.”

“We are getting less orders from the US and European markets,” he informs.

According to Mr. Devendra Baid, owner of Kolkata-based Welfit Garment Mfg co, the manufacturing cost of garments are very high in India as compared to countries like Bangladesh and Vietnam. “We need some incentives from the government that may help us to recover from the existing competition,” he urges.


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CAI estimates cotton prodn. At over 355 lakh bales in 2012-13

Although the acreage under cotton has witnessed a three percent decrease as compared to last year, the crop looks promising due to good rains received in Andhra Pradesh and Maharashtra in the later part of the monsoon. The cotton production this year is expected to be not less than 355 lakh bales while the cotton consumption is likely to be around 265 lakh bales, leaving a sizeable surplus of about 150 lakh bales, stated Mr. Dhiren Sheth, President, Cotton Association of India (CAI), here.



Dwelling upon the way forward for sustained growth of Indian cotton sector, CAI President informed that the growth in production of cotton in India during the last ten years was on account of increase in both acreage and yield. Given the limitations on expansion of acreage under cotton, the main source of long term growth is improvement in yield. The yield level has plateued during the last couple of years and our yield is still way below the world average, Mr. Sheth said. In order to sustain the onward momentum in yield, Mr. Sheth noted that following factors are critical:- * More revolutions like GM Cotton needed for further growth * An analysis of productivity of cotton unequivocally proves that increase in productivity correlates with the expansion of GM cotton in India since 2002.

“I sincerely believe that in order to continue the onward momentum of increase in cotton productivity, more revolutions like introduction of GM cotton are needed,” he asserted. Mr. Sheth informed that CAI has recommended to the Central and State Governments to accord approval to the field trials for Bollgard II Roundup Ready Flex (BGIIRRF), the second stage of GM technology. Several countries have successfully implemented this technology which has shown encouraging results. “However, I am saddened by the fact that several State Governments have not yet given the requisite permission for conducting the field trials from BGIIRRF,” he stressed.

Tecoya Trend – Dec 25, 2012

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Govt to announce incentives for exports soon: Anand Sharma, Commerce and Industry Minister

NEW DELHI: The government today assured industry that it will soon announce incentives for exporters to provide them a cushion in the wake of declining shipments due to global slowdown.



Commerce and Industry Minister Anand Sharma assured the industry that measure to support exporters will be announced as early as Monday", an official release said.

During the April--November this fiscal, the country's exports have shrunk by 5.95 per cent to USD 189.2 billion.

Sharma chaired the 5th meeting of the Government-Industry Joint Task Force, which takes stock of the developments on the economic front.

Talking to reporters after the meeting, the minister said the industry has conveyed its concerns over issues like cost of credit and rising cost of manufacturing.

"Industry has conveyed its concerns about the cost of credit, weak disbursement of credit, rising cost of manufacturing, transaction cost, raw material availability," he said adding there is an urgent need to remove the bottlenecks.

"What was understood as the priority concerns of the industry or for the economic growth, for the government to take some measures, particularly policy decisions, which we had assured the industry that we were clear about the roadmap and the decisions would be made soon," he added.

On the National Manufacturing Policy, Sharma said he would hold the first meeting of the Manufacturing Industry Promotion Board in the near future to review the state of the manufacturing sector.

He informed the industry that the Green Manufacturing Committee under the chairmanship of Secretary, DIPP has held its first meeting and set out the roadmap for implementation of the relevant components of the policy.

"The Ministry of Environment & Forests has completed the action required at central government level and issued the necessary advisory to the state governments. A similar advisory with respect to labour issues is to be brought out in the near future," the release said.

Further, Sharma said that the ministry is expected to announce measures to revive SEZ policy.



"The department is in the process of finalisation of the revised SEZ policy in consultation with the Ministry of Finance and hoped that before the next Budget, the Ministry will be able to announce the changes," he said.

Tecoya Trend – Dec 25, 2012

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Documents

NEWS CLIPPINGS - Export · Bangladesh (ICAB), Md. Syful Islam said the auditors must give their opinions if they find variation in the maturity point of asset re-valuation. "Otherwise,