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NEWS CLIPPINGS

No Topics Page Nos

INTERNATIONAL NEWS

1 Pakistan: Textile sector in a quandary: power shortages in Punjab become more formidable

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2 Pakistan: Power supply to textile mills restored 6

3 Ethiopia: Cotton Production Falls Below Textile Industry Need

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4 USA: Trendylinens offers luxury Egyptian bed linens 9

5 USA: Cotton declines 17%; uncertainty remains over stockpiles in China

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6 UAE textile market grows at CAGR of 9.9% - Report 11

7 Korea: Faltering Textile Output Extends Losses; Mill Use Outlook Questioned

14

NATIONAL NEWS

1 Textile majors Vardhman, Oswal to foray into state 16

2 Cotton yarn prices up on better local demand 17

3 Steps to revive handloom sector sought 18

4 Tufs gets lukewarm response, again 20

5 Gujrat cotton seed crushing units cut operation by 40% 22

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INTERNATIONAL NEWS

Textile sector in a quandary: power shortages in Punjab become more formidable

Power shortage in Punjab entered a critical phase, making it extremely hard for the local manufacturers to cater for the global textile demand of over $2 billion for 2013, exporters said on Monday. "For around last two weeks, export-oriented industries are not receiving electricity in Punjab's top industrials cities including Multan, Sialkot, Faisalabad, Gujranwala, Lahore etc," they said.

Exporters said the continued suspension of industrial production is feared to force the manufacturers to downsize workers. "The downsizing fear has also created discontent among labourers who have started violent protests in different areas of the province," they added.

The textile industry fears diversion of country's share of at least $2.5 billion in global orders towards India, Bangladesh and China for 2013. "Other nations are looking for Pakistan share of at least $2.5 billion for 2013 as the country's 70 percent textile exporting industry is facing power shortage," they said

By singling out Punjab for load shedding, they said, the PPP-led government has adopted "revenge" path against the country's largest province. "Despite the fact that industries in Punjab generate huge employment, besides having share of 70 percent of the country's total exports, the province has been the victim of federal government's biased policies," they said.

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Knitwear, home textile, readymade garments are largely exported from Punjab, where electricity is suspended for last two weeks, Chief Co-ordinator, Pakistan Readymade Garments and Exporters Association (Prgmea), Ijaz A Khokhar told Business Recorder on phone from Sialkot.

"Federal Secretary Water and Power Ministry is responsible for creating the mire for Punjab's industries and has deliberately switched off electricity for antagonistic politics," he said. Appealing to the Chief Justice of Pakistan for suo motu action, the Sialkot based industrialist said "situation in Punjab is getting critical" with each passing day...there's been electricity shutdown for nearly two weeks, he added.

"The EU and US buyers, who generally place orders for textile products with Pakistani exporters, are closely monitoring the situation in Pakistan," he said, adding that "the country may lose its bigger chunk of export by around $2.5 billion this fiscal year, if situation did not improve."

The power cuts have badly hit the entire textile chain, he said, adding that the outages have caused a virtual blow to the spinning, weaving, dying and finishing units and their ancillary industries. Khokhar, who is also key garments exporter, showed concerns over the "possible" diversion of billions of dollars international orders from Pakistan to India, Sri Lanka, Bangladesh, Vietnam and China as there are no signs of improvement in power supplies to industries.

"The winter power load shedding is untimely in Punjab," he said, adding that like other three provinces are having ample supplies of electricity for their industries, the government should ensure the basic utility to manufacturers in the country's largest province.

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"Patoki and Bhaipheru industrial units of weaving, dying and spinning are altogether closed on Multan Road, Lahore, Gujranwala, Faisalabad, etc, because of no power supplies to operate," he said. Estimating the negative impact on the country's fiscal textile exports, the chief co-ordinator of Prgmea said there are indications that the industrial productions will not be higher this fiscal year, compared to last fiscal year.

"The country's exports are feared to plunge by $3 billion to $11 billion this fiscal year because of a number of issues top of it are power and gas shortage," he said. He said exporters are unable to chalk out their plans for 2013 because of uncertainties in the country, adding that the foreign buyers, keeping in view these problems, are reluctant to place orders with local exporters. "International buyers are unwilling to finalize deals with local exporters," he added.

Exporter said Punjab Chief Minister Mian Shahbaz Sharif is 'toothless' before the 'strong' federal government to solve problems for the residential and industrial users of electricity. "No one in the federal corridors of power is willing to pay attention to the problems of Punjab," he maintained. The loss to exporters will have negative impact on the federal revenues as well, he warned, adding that there was need for taking quick decisions to improve the situation in the province.

Copyright Business Rec

Brecorder – January 01, 2013

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Pakistan: Power supply to textile mills restored

FAISALABAD: Electricity supply to textile industry has been restored following the directives of the prime minister after its 11-day suspension.

Meanwhile, the labours are also expecting the restoration of gas supply.

The power supply to textile industry was suspended for unidentified period due to the increase in shortfall due to which production process in factories remained halted.

On the other hand, the labours working on daily wages also suffered due to the power supply suspension.

A nine-member delegation of textile industry met Prime Minister Raja Pervez Ashraf to discuss issues relating to power outages affecting the textile industry.

During the meeting, the prime minister assured provision of electricity to textile mills.

The news.com.pk – January 01, 2013

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Ethiopia: Cotton Production Falls Below Textile Industry Need

Cotton supply falls short by tens of thousands of tonnes, as a result of market problems faced during the previous fiscal year.

The decrease in supply was disclosed during the general assembly of the Ethiopian Cotton Producers, Ginners and Exporters Association (ECPGEA), at the Sheraton Addis Hotel, on December 25, 2012. The meeting was attended by government officials, including; Tadesse Haile, state minister for the Ministry of Industry (MoI) and Wondirad Mandefro, state minister for the Ministry of Agriculture (MoA).

Demand for the textile industry, in the 2012/13 fiscal year, is 60,000tn. Supply, however, is short by 23,000tn, according to government estimates. The Cotton Association, on the other hand, says that the shortfall is actually larger than the government estimated.

Growers produced a surplus of 11,741tn, in 2011/12, in addition to the expected demand of 68,000tn. The textile sector, however, didn't buy what they had produced, as had been expected.

Textile factories complained about financial problems and only purchased 22pc of the cotton produced, as of March 2012. The government, thus, lifted the export ban on cotton which had been in place since 2010. The lifting of the export ban did not help the growers much, as the international market was in financial crisis.

In March 2012, a kilogramme of cotton was sold at 2.2 dollars, in the international market, down from 3.95 dollars for the same time the previous year, according to the United States Department of Agriculture (USDA). However, growers managed to export only 1,971tn of cotton, for 3.1 million dollars, in the first quarter of 2011/12.

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The growers complained, at the time, to both the MoA and the MoI, that they did not have the working capital to proceed with plantation, between March and May.

The government also established a committee, in which the MoI, MoA, Ethiopian Textile & Garment Manufacturing Association (ETGMA) and Cotton Association were involved, in order to put pressure on the textile factories to buy cotton. This, however, did not ease the growers' frustration, hence, most growers switched to other crops. There is still around 1,200ql of cotton that has not yet been sold, according to the Cotton Association.

On top of this, around 1,600ha of land in Gewane, in theAfarRegionalState, which was planted with cotton worth 60 million Br, was damaged by floods in August, 2012.

This has shifted the concern to textile factories.

Kombolcha Textile S.C, which exports bed sheets, towels and pillowcases, has a stock of cotton that can be used for up to three months.

"The growers should give priority to the local market in selling the limited cotton," said Mustefa Jemal, managing director of Kombolcha.

The MoI agrees that, although the export ban is lifted, the local demand must be served first. A grower should also get approval from the MoA and the Textile Industry Development Institute (TIDI), in order to export their cotton. Even if growers were able to export cotton without meeting the local demand the international market forecast for cotton is not looking good.

A kilogramme of cotton might be sold at an average price of 1.8 dollars, in the international market, which is less than the 1.95 dollars in 2011, according to the Global Cotton Growers Association forecast. The price reduction is forecasted, because cotton production is estimated to increase by 16pc.

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The growers say that an intermittent ban could lead to international buyers relying less on Ethiopian cotton. Some even suggested that the government was better off leaving the sector alone.

allafrica.com– January 01, 2013

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Trendylinens offers luxury Egyptian bed linens

When it comes to getting a good night’s sleep, why cut corners? With quality Egyptian linens and Egyptian cotton comforter sets, everyone can feel pampered at home thanks to these luxury bedding items.

One new store currently celebrating its grand opening is the must-visit store for a wide variety of linens, including Egyptian bed-in-a-bag and duvet sets, at impressively low prices. Trendy Linens, recently established by entrepreneur Karen Wallen, is an Internet store that features a great selection of the very best linens on the market, like Egyptian beach and bath towels.

Trendy Linens is now available to shoppers at any time via the web at http://www.trendylinens.com. That’s where shoppers will find a user-friendly online store that makes it easy to purchase quality, luxurious Egyptian linens. Even for those people who aren’t as familiar with making purchases on the Internet, this new store works hard to provide a simple and safe shopping experience.

Trendy Linens offers a large selection of Egyptian cotton comforter sets in many different colors and designs so shoppers can find the perfect luxury bedding for their home. With quality Egyptian bed-in-a-bag and duvet sets, along with Egyptian beach and bath towels, everyone can fill their homes with these incredibly soft and comforting linens.

Fibre2fashion– Dec 31, 2012

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USA: Cotton declines 17%; uncertainty remains over stockpiles in China

NEW YORK: Cotton edged slightly higher on Monday but finished 17% down in 2012, posting the third-biggest annual decline among commodities, as the market struggled with oversupply and sluggish demand.

Even so, the commodity rose 8.6% in the fourth quarter in a late year-end rally as speculative investors bet on higher prices amid hopes for more buying in 2013 from China, the world's largest consumer and producer, and expectations that farmers will plant less cotton in the spring in favour of higher-priced grains. It was the biggest quarterly gain for cotton prices since the first quarter of 2011.

On Monday, benchmark US cotton futures rose 0.48 cent, or 0.64%, to settle at 75.14 cents per lb. Cotton's 17% annual decline was the third-steepest slide among the 19 commodities tracked by the Thomson Reuters-Jefferies CRB index, after arabica coffee futures and US orange juice futures.

Cotton also fell more than 36% in 2011. An earlier rally to lofty price levels had boosted sowing and decimated demand, while a shaky global economy scared off investors. This year, the US government forecast a record surplus of just under 80 million 480-lb bales by the end of the 2012-13 season to end-July 2013.

Cotton enters the New Year with questions over China's policy towards stockpiling and forecasts that farmers will grow more wheat and soya beans, which posted the biggest price gains among commodities in 2012 as the worst drought in more than half a century hit the US corn belt.

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Analysts said many farmers will find it profitable to switch to grains from cotton. With only US cotton deliverable on the ICE exchange, a severe cut in sowing by farmers in the world's third-largest producer could have a significant impact on futures even if there is an excess in the rest of the world.

cottonyarnmarket– Jan 02, 2013

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UAE textile market grows at CAGR of 9.9% - Report

The report titled “The UAE Apparel and Textile Industry Outlook 2016 – Focus on Re-Exports and Emerging High-End Retail Sector” provides a comprehensive analysis of the various aspects such as market size of the UAE apparel and textile industry on the basis of gross output along with the overview of imports, exports and re-exports of textiles and textile articles. The report also covers the competitive landscape of the leading players of the Outerwear market in UAE.

The textile industry in UAE encompasses several categories such as woven, knitted and non-woven fabrics. The UAE textile market in 2011 was valued at USD 13 billion which has grown at CAGR of 9.9% during the period 2006-2011. UAE is one of the major textile markets of the world which includes fibers, fabrics, cloth, apparels, outerwear and several others.

The output of the textile market in UAE has increased from USD 778.1 million in 2007 to USD million in 2011, at a CAGR of 4.7%. In wake of favorable economic and business conditions in the country, the textile manufacturing market in UAE has been experiencing intense competition from the textile manufacturing countries in South East Asia such as China, India and Thailand.

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In 2010, there were signs of recovery and the revenue increased by 6.2%. This upward shift can be attributed to demand for textile and textile articles from countries like Iran, Russia, China, India and the other GCC states.

The UAE textile industry is diverse in its products. In 2011, the knitted fabric was the most demanded textile material in UAE which accounted for around 49.7% followed by Woven fabrics with about % of the overall market demand in the country.

UAE brought in maximum of its textile and textile articles imports from China valued at USD 2,152.0 million in 2011. It has been witnessed that China and India constituted a major segment of the textile and textile articles imports in the UAE since the cost of manufacturing apparel and other such articles is very low-priced in these countries due to the availability of low cost labor and low input costs.

Iran was the biggest recipient of UAE’s textile and textile articles and re-exports at USD 922.9 million, of which Man-Made Filaments again had the highest share of 59.2%.

Among the main consumer trends, online shopping has become more popular and is well received among UAE population. The current size of UAE’s online retail market was recorded at USD 227 million.

Men’s outerwear volumes grew at CAGR of 0.9% from 16,250.3 thousand units in 2006 from that in 2011. Apparel specialist retailers led the sales of men’s outerwear and continued to steadily gain share till the end of the review period, rising to % value share.

Traditional retailers like baby care specialists struggled to compete with leading brands in children’s wear because of strong branding and their presence in shopping mall locations. Hosiery sales were hit by a % decline in 2010 but recovered by % in 2011. The Nightwear segment greatly supported by the women’s category grew by % in volume terms

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The apparel industry in UAE has converted from conventional markets to large shopping malls and organized retail chains. UAE’s retail industry is expected to grow at a CAGR of 7.6% to a market value of USD million in 2016.The Emiratis are brand conscious people and will continue to spend on luxury brands.

The UAE textile industry is likely to exhibit an encouraging growth with textile trade poised as its main driver. It is expected that the revenue of the industry will grow at a CAGR of 13.3% to USD million in 2016. The industry foresees good profitability in import of textiles and textile articles and then re-exporting them.

Key Topics Covered in the Report

- The market size of the UAE textile industry by output and revenue.

- Segmentation of UAE textile industry by fabric, Dubai and Abu Dhabi.

- The overview of UAE textile trade on the basis of imports exports and re-exports by major countries and products.

- Trends and Development of the UAE apparel and textile industry.

- Overview of outerwear market by categories such as men, women and children.

- Competitive landscape of leading players in the outerwear market of UAE.

- Future outlook and projections of apparel and textile on the basis of revenue and output.

Fibre2fashion– Dec 31, 2012

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Korea: Faltering Textile Output Extends Losses; Mill Use Outlook Questioned

In spite of a surprise jump in overall industrial output last month, Korean textile manufacturers continue to struggle, with output in this sector resigned to another year of contraction. Statistics Korea announced Friday that factory output expanded 2.9% in November from a year earlier, sharply rebounding from a -0.8% year-on-year decline in October. This gain marked the fastest expansion since May, coinciding with the strongest year-over-year growth in exports in months. But not all sectors fared well, as textile manufacturing shrank -4.2% from a year earlier, the twelfth decline in the last thirteen months. Just as export growth buoyed overall industrial production, sinking cotton yarn exports pulled textile output lower, echoing a pattern discussed earlier [1] this year.

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This latest decline in textile output cements prospects that the sector will reverse the gains witnessed over the last two years and shrink to one of the lowest years on record. Over the first eleven months of 2012 output across the sector is 3.8% less versus the corresponding period last year. At this rate, annual output is set to fade for the sixteenth time in the last two decades and rival 2009 as the lowest in well over thirty years. If this trend persists in coming months as we anticipate, it will become increasingly hard to justify the current USDA outlook that 2012/13 cotton mill demand will rise to an eight-year high of 1.2 million bales, a mildly bearish argument for the world balance sheet in the New Year.

Globecot News– Dec 31, 2012

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NATIONAL NEWS

Textile majors Vardhman, Oswal to foray into state

The spinning industry in Gujarat is set to witness foray of major North and South Indian players like Vardhman, Oswal Spinning and Cosmo Group as part of the upcoming Vibrant Gujarat Summit.

At an anticipated investment of over Rs 7,000 crore, the summit will see commitments for close to 3 million spindles, exceeding the state government's target of 2.5 million spindles.

According to a senior state government official, it is not only players from outside the state like Vardhman and Oswal Spinning that have evinced interest for setting up spinning units but also within Gujarat.

"Investment intentions have been coming in already for the textile industry. This year the state government's focus is mainly on the spinning industry and we will see ample memorandums of understanding (MoUs) in this regard during the upcoming Vibrant Gujarat Summit 2013 in January. Well known players from within and outside the state are vying to set up spinning units in the state," the official stated.

For the next five years, the state government has set a target of installing 2.5 million spindles, commitments for which it believes will exceed during the summit.

"We have set a target of 2.5 million spindles to be set up in the state in next five years. But we are anticipating MoUs for over 3 million spindles worth over Rs 7,000 crore. Major players from North India like Vardhman, Oswal Spinning and a consortium of 50 spinners from South India under the Cosmo Group have also evinced interest among these," he added.

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The state government has also come up with a textile policy with a five 'F' focus including 'Farm to Fibre to Fabric to Fashion to Foreign'.

Earlier in September 2012, Gujarat Chief Minister Narendra Modi had announced Gujarat Textile Policy 2012.

Titled as 'Navi Gujarat Vastraniti', the policy looks to attract investment of over Rs 20,000 crore as well as creating new employment opportunities for over 2.5 million people in next five years.

Gujarat is keen to see at least one lakh spindles being develop every year. With the given resources, it will take, on an average, around Rs 20-25 crore of investment in Gujarat for setting up a spinning unit of minimum 12,000 spindles.

Business Standard - January 02, 2013

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Cotton yarn prices up on better local demand

Mumbai. Cotton yarn traded higher in the major markets Tuesday on good domestic demand. Although export demand was weak due to holiday in many importing countries. Polyester manufactures hiked PSF prices by Rs 2 per kg on higher raw material cost.

Export offer of 30 count combed cotton yarn were placed at USD 3.60 per kg CNF.

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Offers for 30 count combed cotton yarn placed at Rs 205 per kg, 30 count carded cotton yarn knitting at Rs 188 per kg and 30 single PC at Rs 200 per kg in Ludhiana.

Offers for 60 count carded weft yarn placed at Rs 1,100-1,110 per 5 kg, for 40 carded warp at Rs 193-200 per kg, for 60 combed at Rs 260-270 per kg, for 54 count combed at Rs 270 per kg and for 64 combed at Rs 290-300 per kg (ex mill) in Coimbatore.

Offers for 32 single carded yarn placed at Rs 920-950 per 5 kg , for 34 single carded at Rs 900-920 per 5 kg, for 40 combed at Rs 225-229 per kg, for 42 single carded at Rs 1060-1080 per 5 kg, for 44 single carded at Rs 1100-1120 per 5 kg and for 60 single carded at Rs 1,160-1,190 per 5 kg Ichalkaranji delivery. Prices of comber stood at Rs 74 per kg in North India.

Cottonyarnmarket.net - January 02, 2013

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Steps to revive handloom sector sought

Members of the Andhra Pradesh Weavers Welfare Association, Epurupalem, hold the World Trade Agreement (WTA) signed by the Union Government, responsible for most of their existing woes and demand a string of measures to save the handloom industry which is in a doldrums.

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In a representation made to the President of the country, they said modern textile industries were being promoted at the cost of handloom industry, a cottage industry which provided employment to nearly three crore rural population. They pointed out that their counterparts in other countries enjoyed the privilege of buying raw material at a subsidy ranging from 30 per cent to 70 per cent. They said immediate remedial measures were needed to revive the industry and prevent its extinction.

Their demands include: Announcement of a National Handloom Policy, the draft for which was prepared by in 2006 by the Ministry of Textiles but the approval of the Parliament was awaited.

A separate financial bank with an investment of Rs. 15,000 crore to meet the working capital needs of 38.9 lakh looms, revival of the CSS schemes to ensure its benefits to the ground-level weavers and immediate steps for effective implementation of the Unorganised Sector Workers Social Security Bill, 2007. The bill was passed long back but the labour department had not started registration of workers.

They also demanded rehabilitation package to the 10 lakh-odd weavers who had lost livelihood due to the WTA and allocation of a Rs. 10,000 crore budget for handloom sector in 2013-14 to serve the cause of the weavers. A provision of Rs. 200 crore may be earmarked for welfare of women workers who comprised 64 per cent of the employers in the rural sector, they said.

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With regard to losses incurred due to natural calamities, the association members pointed out that the handloom workers in the coastal belt of Andhra Pradesh had been incurring annual losses due to cyclones and heavy rains. This was in addition to the loss of 90 working days every year in the extreme hot summer days or rainy season.

Pointing to the fact that insurance facility for raw material was available only till the 10{+t}{+h}Plan while it had been withdrawn from the 11{+t}{+h}Plan, they insisted that the facility be restored from the 12{+t}{+h}Plan period.

Cottonyarnmarket.net - January 02, 2013

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Tufs gets lukewarm response, again

The Technology Upgradation Fund Scheme ( Tufs), the sole subsidy scheme to boost investment in the textiles sector, has received a lukewarm response from investors, owing to uncertainty on the scheme being extended beyond March and the prevailing gloom over the country's economy.

The Planning Commission has given an in-principle approval for the extension of Tufs in the 12th five-year Plan.In the 11 years since it was introduced in 1999, Tufs accounted for investments of Rs 2,08,000 crore. After the first allocation of about Rs 11,200 crore, a second tranche of Rs 1,972 crore was allocated for 2011-13 by the ministry of textiles. However, it saw poor response again, leading to disbursal of merely 13 per cent, or Rs 256 crore, during that financial year.

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The government then extended the scheme for another year, without allocating extra funds, owing to expectations companies would invest aggressively in the textiles sector. However, the scheme again saw poor response.

Industry experts say banks have disbursed just Rs 96 crore in the first eight months of the current financial year due to waning investor confidence in the sector. Without making major fundamental changes in the scheme, we are trying to increase credit flow to the power loom and processing sectors. These sectors would get a little more attention than other sectors, Textile Commissioner A B Joshi had said earlier.

After the scheme was included in the 12th five-year Plan, textile companies are waiting for an extension in the subsidy scheme. However, there is no clarity on the status of the scheme and this has led to many companies delaying decisions on expansion plans.

This year, many expansion projects have taken a back seat. As the US and the Euro zone, the biggest markets for Indian textile exports, were stressed,

garment exporters didn’t increase capacity. Once there is clarity on Tufs being included in the 12th Plan, many companies would come forward to avail of the benefits of the scheme, said Mitesh Shah, vice-president of Mandhana Industries, a Mumbai-based textiles major.

Cottonyarnmarket.net - January 02, 2013

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Gujrat cotton seed crushing units cut operation by 40%

A decrease in cotton production and higher inflow of unprocessed cotton seed oil from other states this season has forced cotton seed crushers in Gujarat to cut down operations by 40 per cent.

As per industry sources, units which were crushing 350-400 tonne cotton seed last year are only able to crush 250-300 tonne this year. This is mainly because of oil millers sourcing unprocessed cotton seed oil from states like Andhra Pradesh and Maharashtra as the prices are lower than Gujarat. Since demand for oil is less the crushers are getting less orders.

This year cotton production in Gujarat is estimated to be lower than last year. Due to this cotton seed availability has decreased in the state and as a result price of cotton seed here has gone up," said Praful Patel, vice president of Gujarat Cottonseed Crushers' Association.

"Compared to Gujarat cotton seed price in other states is lesser by Rs 10-15 per 20 kg so millers are buying unprocessed cotton seed oil from those states mainly Andhra Pradesh," Patel, who is also a vice president of Saurashtra Cottonseed Crushers' Association said.

According to Patel, Gujarat needs around 700,000 tonnes cotton seed for crushing every year. "Against the demand, this year we are expecting only 300,000 tonnes cotton seed output," he added. "At present, around 250 tonne of cotton seeds are crushed per day in Gujarat," he said, adding that last year these same units used to crush 350-400 tonne of seeds everyday.

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As we have a lesser amount of cotton seed and inflow of unprocessed oil from other states has increased this season, most of the crushers have cut down operations by 40 per cent," Patel said.

Since last three years cotton production in Gujarat was more than 10 million bales but this year due to poor monsoon, cotton production in the state is expected to be around 7 million bales.

Cotton oil wash (unprocessed oil) price in Gujarat was ruling at Rs 615-620 per 10 kg while the same oil in other states was trading at Rs 600-605 per 10 kg. Gujarat cotton seed price was around Rs 360-365 per 20 kg while in other states the seed cost Rs 335-340 per 20 kg. There are about 800 cotton crushers in Gujarat.

Cottonyarnmarket.net - January 01, 2013

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