news clippings · bangladesh textile mills association (btma) president jahangir al-amin said this...

NOVEMBER 27, 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 | of 19

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INTERNATIONAL NEWS

1 Pakistan: Lacklustre activity on cotton market 2

2 Pakistan: Textile Policy initiatives in jeopardy: no amount released to MoTI during current fiscal year

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3 Bangladeshi textile workers rally over fire deaths 4

4 Bangladesh: Energy price hike will hit country’s textile sector

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5 Leading brand manufacturers to participate in Heimtextil 8

NATIONAL NEWS

1 Textile business potential stalled by ignorance’ 11

2 No losses in textile industry after debt restructuring 12

3 Rajasthan govt to release textiles policy by March 2013 13

4 Malwa set to become textiles hub of South-East Asia: Minister

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5 India has trade deficit with 48 countries: Sharma 16

6 Jaya allocates funds to revive closed spinning mills 17

7 Cotton seen low as mills reduce purchases 18

8 Cotton production put at 334 lakh bales for 2012-13 season

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NOVEMBER 27, 2012


INTERNATIONAL NEWS

Lacklustre activity on cotton market

No normal business activity was seen on the cotton market on Monday as both buyers and sellers adopted wait-and-see policy owing to tight supply of seedcotton amid post-holiday session, dealers said. Official spot rate was unchanged at Rs 5,800, they said. Not a single deal finalised due to lack of buying interest among leading participants, they said.

Prices of seedcotton (phutti) in Sindh were unchanged at Rs 2200-2550, in Punjab, rates were inert at Rs 2500-2700, they said. According to the market sources, cotton arrivals from the new crop in India, the world's second-largest producer of the fibre, have fallen 29 percent in the current season that began in October, the Cotton Corp of India said on Monday.

commenting on the short fall of crop, cotton analyst, Naseem Usman said that demand is not so high due to world recession and supply position is smooth, so locally we will not see any anxiety, unhappiness or excitement among the cotton traders. How we can assume that local prices to lift from current levels as more than 30 percent textile industry is lying closed in the Punjab due to energy and gas shortage. We have good cotton crop for the current season but not able to make yarn owing to closure of industries, as a result shipment are delayed, which means country may lose huge amount of foreign exchange in days to come, they Arrivals until November 18 fell to 2.26 million bales of 170 kg each, down from 3.2 million bales a year earlier, the state-run procurement agency said in a statement. Not a single deal reported till our going to the Press, they said.

Brecorder – Nov 27, 2012

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NOVEMBER 27, 2012


Textile Policy initiatives in jeopardy: no amount released to MoTI during current fiscal year

The government has not released any amount to the Ministry of Textile Industry (MoTI) during the current fiscal year, which may result in jeopardizing the key initiatives of the Textile Policy (2009-14), official sources revealed here on Monday.

The government's failure to implement textile policy in letter and spirit and lack of power/gas utilities has negatively affected textile exports. Due to financial constraints, textile sector's pending liabilities against the government under different schemes announced in the textile policy have swelled to over Rs 16 billion. This includes Rs 12 billion, as Drawback on Local Taxes and Levies (DLTL). Some textile millers have already moved the court against the government for outstanding liabilities, sources maintained.

Lack of utilities, certified cotton seeds and bad perception in the world about production capacity of the industry are the main reasons behind the current deterioration and decline of the textile industry. Availability of utilities and subsidies provided by competitor governments are putting the textile exports at a disadvantage in international market, said different stakeholders.

The government earmarked Rs 7.5 billion in budget 2012-13 for implementation of textile policy, however in the first quarter, not a single penny was released to the ministry, senior officials revealed. Due to inadequate funds, some key policy initiatives have yet to be launched, which are not only causing resentment among the industry following huge pending liabilities under operationalised schemes, but is also hampering projects' execution and their timely completion.

The ministry demanded Rs 30 billion for different initiatives that were integral components of the textile policy in the budget 2012-13, however the ministry later committed that the same amount released last year would be released during the current fiscal year ie Rs 7.5 billion.

NOVEMBER 27, 2012


Different schemes under the textile policy including Textile Investment Support Fund, Drawback of Local Taxes, Refund of Past Research and Development (R&D) Claims and Magnetisation of Purified Terephthalic Acid (PTA) have been initiated, but due to paucity of funds, all the schemes are in doldrums. The officials maintained that under these circumstances, it is impossible that textile policy would achieve the desired results. A total of Rs 24.75 billion have been released against the approved financial plan of Rs 123 billion for 2009-12 ie around 20 percent only, while projects worth more than Rs 6 billion are pending with the planning commission for the last two years.

Brecorder – Nov 27, 2012

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Bangladeshi textile workers rally over fire deaths

Working conditions at Bangladeshi factories are poor, with little enforcement of safety laws Police say narrow exits in the nine-storey building trapped workers inside, killing 111 people and injuring more than 150

NOVEMBER 27, 2012


Thousands of angry textile workers demonstrated in the outskirts of Dhaka after a fire swept through a garment workshop at the weekend, killing more than 100 people in Bangladesh's worst-ever factory blaze.

Another fire broke out in a multi-storey garment factory in a Dhaka suburb today.

A fire brigade official said the blaze was under control and there were no immediate reports of any fatalities.

Workers of Tazreen Fashions and residents blocked roads and forced the closure of other factories in the industrial suburb of Ashulia, demanding that those responsible for the disaster be punished.

Police and officials said narrow exits in the nine-storey building trapped workers inside, killing 111 people and injuring more than 150.

President of Bangladesh's National Garment Workers Federation Amril Haque said: "This disastrous fire incident was a result of continuing neglect of workers' safety and their welfare,"

He said: "Whenever a fire or accident occurs, the government sets up an investigation and the authorities, including factory owners, pay out some money and hold out assurances to improve safety standards and working conditions. But they never do it."

Working conditions at Bangladeshi factories are notoriously poor, with little enforcement of safety laws, and overcrowding and locked fire doors are common.

More than 300 factories near the capital shut for almost a week this year as workers demanded higher wages and better conditions.

At least 500 people have died in clothing factory accidents in Bangladesh since 2006, according to fire brigade officials.

Bangladesh has about 4,500 garment factories and is the world's biggest exporter of clothing after China, with garments making up 80% of its $24bn annual exports.

Hong Kong-listed Li & Fung said in a statement that it had placed orders for garments from Tazreen Fashions which were being manufactured on the premises where the fire broke out.

NOVEMBER 27, 2012


It said it would provide relief to victims' families, and carry out its own investigation into what caused the blaze.

A spokesperson for US retail chain Wal-Mart Stories Inc. India said the company was "trying to determine if the factory has a current relationship with Walmart or one of our suppliers".

http://www.rte.ie/news – Nov 26, 2012

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Energy price hike will hit country8s textile sector

The irrational energy price hike will invite disaster for the country's textiles sector, which has been identified as one of the prime movers of the national economy. Bangladesh Textile Mills Association (BTMA) President Jahangir Al-Amin said this November 24 while addressing a press conference at BTMA headquarters at Panthapath on the eve of TEXBANGLA-2021 schedule to take place on November 27 next. Prime Minister Sheikh Hasina would inaugurate the same.

Jahangir Al-Amin said Bangladesh textiles sector could attract a huge investment from China, where 50 per cent production has declined due to high rate of wages. Chinese investors are ready to re-locate their industries to Bangladesh. But higher energy price and high interest rate on bank loan have created roadblock in this regard.

He said weaving sub-sector of the textiles sector requires a huge investment to meet the growing demand of the garment sector, but irrational energy price and high bank rates have been discouraging investment in the weaving sub-sector.

NOVEMBER 27, 2012


He said that in the year 2009 investment volume increased to Tk 10.7 billion, which was reduced to Tk.99 billion in 2010 and 2011 because of energy price and high rate of interest on bank loan. According to the BTMA President, effective interest rate has been more than 18 per cent.

The government is planning to increase energy price by 104 per cent and the BTMA president termed it irrational and illogical. He said that the textiles sector is running with 1200 m.w. captive generation, the irrational energy price increase would call disaster for the whole textiles sector. He urged the government to take rational steps in re-adjusting the energy price.

Jahangir Al-Amin lauded the government steps for supporting the textiles sector development. He specially mentioned about the five per cent cash incentive during time of abnormal increase of the cotton price in the international market. He said that country's textiles sector although could meet the yarn demand of the knit sector, it could hardly meet 30-35 per cent weaving demand. High energy price and high bank rate would not encourage the local and foreign investors to invest in the weaving sector. He also said that one stage GSP facilities have also discouraged the fresh investment in the weaving sector.

The investment volume in the textiles sector stood at 3.15 billion Euro and direct and indirect work force in this sector is around 2 million. The BTMA leader urged the government to keep it in mind while re-fixing the energy

http://www.rte.ie/news – Nov 26, 2012

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NOVEMBER 27, 2012


Leading brand manufacturers to participate in Heimtextil

Heimtextil is heading into the homestretch of its preparations with a high-calibre roster of exhibitors already on board. From 9 to 12 January 2013, the industry’s top players will be coming to Frankfurt from all over the world for the international trade fair for home and contract textiles. Every product group has already received registrations from new and returning exhibitors, including leading brand manufacturers from Germany and abroad.

Olaf Schmidt, Vice President of Textiles & Textile Technologies at Messe Frankfurt: “Heimtextil’s outstanding programme once again confirms its exceptional position as the key business platform for interior textiles.”

The list of new and returning exhibitors includes countless wellknown companies. In Hall 3.0 for example, the Inhouse Group from Denmark will be showing off its high-quality carpets for the first time.

Renowned returning exhibitors include Brunswick (France), Pintail International (Netherlands) and Gefora Forster, Joop!Living and JAB Anstoetz (Germany), who will be unveiling their latest collections of curtains, furniture fabrics and decorative fabrics. Lars Puschmann, Sales Director at JAB Anstoetz:

NOVEMBER 27, 2012


“The JAB Anstoetz Group will be presenting its stylish Gardisette spring collection, which features numerous highlights for the occasion of the brand's 60th anniversary, as well as the full range of interior sun protection products offered by the company.”

New textile distributors at Heimtextil

The UK’s Clarke & Clarke and Italy’s Gross are among the exclusive textile distributors who are making their debut as exhibitors in Hall 3.1. The top players in the international wallpaper industry will be presenting their new collections in the same area, including Muresco from Argentina and Italy’s Dedar and Jannelli & Volpi. Hall 4.1 features a large number of exhibitors from Belgium, the UK, Italy and Spain, including De Poortere Frères, Flanders' Trimmings and Tissat Deslee (Belgium), Abraham Moon & Sons, Ena Shaw and Premier Voile (UK) and Triade (Italy). Other high-calibre new and returning exhibitors include J.A. Raymakers (Netherlands), Gierlings Velpor (Portugal), Vanico (Spain), Flokser Tekstil (Turkey) and Karim Rashid Arben, represented by A.T.Overseas (USA).

“Design live”: a new concept for Hall 4.2

The new concept for the “Design live” area in Hall 4.2 has drawn a tremendous response from international studios, including some new participants from the USA. More than 180 exhibitors in all will be presenting their creative designs here, together with products and services for CAD/CAM and ink-jet applications. Next year will see the debut of a special Newcomer Area for which numerous young designers have already registered. “Design live” is the world’s largest platform for textile design.

Sun protection has a strong presence

Visitors to Hall 5.1 will be able to look forward to the biggest presentation of sun protection, guide rail and decoration systems in a number of years. Junkers & Müllers and H. Büsche are two of the renowned returnees from Germany. Coulisse, Eisenkolb and Thomas Regout from the Netherlands, Spain’s Sistemas Delfin and Almedahl-Kinna from Sweden will be among the highlights in the “sun” segment.

NOVEMBER 27, 2012


Mattresses and more in Hall 8

Hall 8 is nearly booked out, with an outstanding array of prominent exhibitors of bedware and mattresses. Heinrich Häussling will be exhibiting here once again, as will Prolana and Tempur (all from Germany). In the “Sleep Factory”, which is also located in Hall 8, a series of international bedware manufacturers will be showcasing their innovative products.

New additions to the high-quality section

The organisers also expecting a range of prestigious companies in the premium exhibition area offering high-quality products for the bath, bed and table: Linum will once again be showcasing its designs for the table and kitchen in the premium exhibition area in Halle 11.1., while Siletti is also returning with its high-quality bed linens from Italy. Visitors can look forward to presentations by wellknown fashion labels who are positioning themselves on the market with trendsetting home collections. Spanish fashion label Desigual, which is presenting its home collection in Hall 11.0., is making its Heimtextil debut in 2013.

Start-ups exhibiting as part of “New & Next”

Heimtextil will be featuring new ideas and inspirations for the bath, bed and table as part of “New & Next”, with outstanding young companies presenting their collections and product innovations in Halls 8, 9 and 11. “New & Next” offers start-ups the opportunity to present their products and services to an international audience at Heimtextil. This platform for newcomers focuses on innovative design and product ideas from the field of household textiles. Among next year’s exhibitors will be Divine Marquise from Belgium, The Soft World and Wonderable from the Netherlands, Crishome Tex from Portugal, Aqua Vireo from Sweden, Serra de Llobet from Spain and Lenz & Leif, Peppa Grace and Robespierre Europe from Germany.

NOVEMBER 27, 2012


Messe Frankfurt is Germany’s leading trade fair organiser, with 467.5 million euros in sales and 1,725 employees worldwide. The Messe Frankfurt Group has a global network of 28 subsidiaries and approx. 50 international Sales Partners, giving it a presence for its customers in more than 150 countries.

Messe Frankfurt

Fibre2fashion– Nov 26, 2012

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NATIONAL NEWS

Textile business potential stalled by ignorance’

VARANASI: A cluster-level dissemination workshop on environment, occupational health and safety, social security and market linkage was organised by the Human Welfare Association (HWA) in association with European Commission and All India Artisans and Craftworkers Welfare Association (AIACA), New Delhi on Monday. The workshop was organised under the South Asia programme of Sustainable Production and Sustainable Consumption practices in Textile sector.

Addressing the participants of the workshop, Mayank Trivedi, an expert from New Delhi said that due to lack of a resource-cum-facilitation centre in Varanasi, weavers and artisans in the region are bound to face various problems. He said nine districts of eastern UP have enormous business potential in the field of textile and handicraft.

NOVEMBER 27, 2012


The Banarasi silk industry is doing a business of Rs 400 crore annually while carpet industry of Bhadohi has annual business of Rs 4000 crore, he said, adding that the annual business of metal craft is Rs 100 crore, pink enameling Rs 100 crore, wooden toy industry Rs 20 crore, jari and embroidery Rs 100 crore, and other small and cottage industries are doing business of Rs 2000 crore annually. About 32 lakh weavers and artisans of these districts are associated in these industries, he informed.

However, he said despite the availability of government schemes for the artisans, they face problems due to lack of awareness about matters related to design, technicality, environment, health and safety, credit cards and market linkage.Speaking on the occasion, the assistant director (handloom) KP Verma said as many as 14 clusters of handlooms are functional in Varanasi, Mirzapur and Chandauli districts. These clusters benefit 10,000 weavers right from production to marketing, he said, adding that the weavers could be benefited in a better way with the availability of a resource centre.

Over 100 representatives from various districts including Mirzapur, Bhadohi, Sonbhadra, Chandauli, Jaunpur, Azamgarh, Mau, and Varanasi took part in the workshop. The workshop was also addressed by the general manager of district industry centre UK Singh, assistant director (handicraft) AK Mishra, and HWA president Dr Rajni Kant

SourceTimes of India: Nov 27., 2012

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No losses in textile industry after debt restructuring

Shri Anand Sharma, Minister of Textiles has informed that textile industry suffered a downturn in 2011-12, due mainly to the global economic slowdown and partially the high price volatility in the international and domestic cotton market.

NOVEMBER 27, 2012


To ease the resultant financial distress, recognizing the Handloom sector as the most vulnerable segment of the Textile industry, Government announced a Handloom Revival, Reform & Restructuring Package under which Rs.3884 crore was allocated for waiver of loans of handloom cooperatives, individual weavers, etc. and for interest subsidy, margin money and credit guarantee for fresh loans.

Government also approved a debt restructuring package to help loss making textile mills, to be administered on a case by case basis by the banks within the prudential norms of the Reserve Bank of India.

Following the debt restructuring of the mills, there are no losses reported by the industry. Meantime, production indicators have also turned positive for yarn and fabric, showing a 7.9% growth in total spun yarn and a 4.7% growth in total fabric production in April-September 2012 in comparison with the same period in the previous year.

Source: Fibre2fashion: Nov 26., 2012

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Rajasthan govt to release textiles policy by March 2013

To enhance the domestic as well as global competitiveness of the textile industry, the Rajasthan government would unveil a textiles policy by March 2013, state Chief Minister Ashok Gehlot said while talking to media after opening the textiles fair ‘Vastra 2012’.

The policy would focus on manufacturing, developing skills and enhancing exports of the textile sector of the state, Rajasthan Minister for Industries Rajendra Pareek said.

NOVEMBER 27, 2012


Sunil Arora, Principal Secretary in the Rajasthan Government said the state presently lacks a separate policy for textile industry, and a specific policy is needed to promote the industry.

The state government is emphasizing on developing the textile industry, which each year exports goods worth Rs.35 billion and provides employment to several people.The State Department of Industries has formulated a draft policy, which would soon be forwarded to the concerned departments to invite their comments. The Chief Secretary would then further the same to the state Cabinet for its approval, after organizing a couple of meetings with some of the stakeholders, Mr. Arora said.

About the global textiles event ‘Vastra 2012’ organized in the city of Jaipur, Mr. Gehlot said in the wake of slowing demand in local as well as foreign markets, they are trying to further bolster and upgrade the domestic textile industry through such fairs.

The business-to-business exhibition is aimed at furthering upcoming entrepreneurs with market access and networking facilities and upgrading them on present-day technologies and drawing more investment in the sector.

The fair would be organized on an annual basis by the Rajasthan State Industrial Development and Investment Corporation (RIICO), in association with Federation of Indian Chambers of Commerce and Industry (FICCI), he added.

More than 175 exhibitors showcased a wide range of textile and apparel products at the fair.

Source: Fibre2fashion: Nov 26., 2012

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NOVEMBER 27, 2012


Malwa set to become textiles hub of South-East Asia: Minister

He made the observation while reviewing the progress of 1,485 crore textile unit that is coming up on 350 acres in district Muktsar.

Joshi said that under the new textiles policy of Punjab, a Textile Park having composite Textile Processing units from Cotton to Garment would be setup with minimum Fixed Capital Investment of Rs 250 crore. The districts of Bathinda, Mansa, Faridkot, Ferozepur, Mukatsar, Sangrur, Barnala, Taran Taran and Amritsar are covered under the policy.

Joshi said that with the operationalisation of the unit in Malwa area all international denim units would procure the fabric from this company. He said the textiles industry was labour intensive and with the completion of Textile Park in the Malwa area there was a possibility of generation of one lakh jobs.

Joshi said that 100 per cent power at doorstep with the facility of Power Grid at the cost of the unit in the textile park was the main attraction of the policy. He said that, however, setting up of their own power plant would be allowed for self consumption.

Joshi said that courses for the skills required by the Park would be allowed to be introduced in the nearest Industrial Training Institutes.

Source: Economic Times: Nov 26., 2012

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NOVEMBER 27, 2012


India has trade deficit with 48 countries: Sharma

NEW DELHI: India has been running a trade deficit with 48 countries including China, Australia and Iran during the last three years, Parliament was informed today.

"India has a trade deficit with 48 countries both during last three years as well as during 2012-13 (April-September). Out of these the names of top 10 countries are China, Switzerland, Saudi Arabia, Australia, Nigeria, Kuwait, Iran, Iraq, Korea and Qatar," Commerce and Industry Minister Anand Sharma said in a written reply to the Lok Sabha.

He said that the combined share of these 10 countries to the total exports during April-September period of this fiscal is 13.5 per cent. During the first six months of the financial year, the country's exports dipped by 6.79 per cent to USD 143.6 billion from USD 154.1 billion in the same period last year. India had the highest trade deficit of about $40 billion with China in 2011-12. Declining exports and increasing imports have pushed the country's trade gap to a record high of USD 21 billion in October.

Sharma also said the country had favourable balance of trade with 105 countries during the last three years. These include top 10 nations such as the US, Netherlands, Singapore and UK.

"The combined share of these 10 countries to the total exports during April-September period of this fiscal is 35 per cent," he added.

In reply to another query, Sharma, who is also holding additional charge of Textile Ministry, said Cotton Yarn Advisory Board has estimated the yarn production at 3,500 million kg for 2012-13 against consumption of 2,670 million kg with an exportable surplus of 920 million kg and a closing stock of 90 million kg.

NOVEMBER 27, 2012


Further, he said there is no reported dip in demand of cotton apparels due to change in fashion preference of middle class consumer. On a query on NTC, he said 78 unviable sick mills of the National Textile Corporation have been closed till date.

Out of 23 working units, 15 have generated cash profit for the period April-September 2012.

Source: COTTONYARNMARKET.NET: Nov 27., 2012

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Jaya allocates funds to revive closed spinning mills

Tamil Nadu Chief Minister J Jayalalithaa today announced a slew of measures to modernize and revive sick and closed spinning mills in the State.

According to reports she sanctioned a revival plan worth Rs 104.41 crore to bail out five cooperative spinning mills.

She has also ordered moratorium of loan due of these spinning mills, worth Rs 52.87 crore, by eight years, and Rs 5.32 crore sales tax also by eight years.

Also, Jayalalithaa alloted Rs 9.21 crore to take necessary steps to reopen the Ramanathapuram Cooperative Spinning Mills. This is as part of Rs 18.43 crore worth action plan devised after Jayalalithaa ordered to open the mill again.


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NOVEMBER 27, 2012


Cotton seen low as mills reduce purchases

Cotton remained under pressure, as demand fell and arrivals increased on Monday. Kapas or raw cotton also declined.

The Sankar-6 variety declined by Rs 200 to Rs 32,900-33,200 a candy of 356 kg in Saurashtra. The V-797 variety was offered at Rs 28,000-28,200 a candy. Mills are buying less as demand for yarn has dropped and export offtake is also low, said a Rajkot-based cotton broker. Prices may remain low this week, he added

Kapas declined by Rs 5-7 to Rs 830-860 for a maund 20 kg in Rajkot, while Maharashtra kapas was traded at Rs 800-850 for a maund in Gujarat. About 35,000 bales of 170 kg each arrived in Gujarat, including around 12,000 from Maharashtra. Overall, about 1 lakh bales arrived in the country.

Arrivals till November 18 in the season that started on October 1 stood at 2.26 million bales, 29 per cent less than in the same period last year. In the last two weeks, 964,000 million bales arrived. So far, 5.6 lakh bales have arrived in


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NOVEMBER 27, 2012


Cotton production put at 334 lakh bales for 2012-13 season

Cotton export registrations for the 2012-13 season stood at 4.5 lakh bales as of November 5, Commerce Minister Anand Sharma said on Monday.

The corresponding figure for last year was not available. However, the country’s total cotton exports for the 2011-12 season stood at a record 129 lakh bales.

For cotton season 2012-13, the Cotton Advisory Board has estimated a production of 334 lakh bales and pegged the exportable surplus of 70 lakh bales. There is a decline in international cotton prices due to overstocking and lower global mills demand during the last cotton season. Domestic cotton prices have followed the global price decline trend, but less steeply, so that the differential between international and domestic prices has narrowed considerably and at times become negative, Sharma told the Lok Sabha in a written reply.

The Commerce Minister said there is no ban on cotton exports category for 2012-13 season. Cotton exports are currently on open general licence subject to a prescribed procedure of registration


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news clippings · bangladesh textile mills association (btma) president jahangir al-amin said this...

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