NEWS [ TEXTILES ]

APTMA laments high cost of doing business

  • Some 140 textile mills have closed their operations, while another 75 to 80 mills are on the verge of closure due to high cost of doing business. According to All Pakistan Textile Mills Association (APTMA), with the closure of 140 textile mills, about one million workers have lost their jobs and further closures will add to the unemployment figure by another 0.5 million. Due to the closure of about 140 mills with various mills operating below capacity, textile exports are suffering a loss of over $4 billion per annum, he added.
  • Zahid Mazhar, Senior Vice Chairman, All Pakistan Textile Mills Association (APTMA), has said in a statement that the country has already entered an era of de-industrialisation where industries are closing. "In 2005 the share of manufacturing in the GDP stood at 19 percent which has fallen to 13 percent. Large scale closures of textile spinning mills has already taken place resulting in drastic increase in unemployment as well as reduction in consumption of locally produced cotton. This will hurt both manufacturing as well as the agriculture sectors of the economy," he maintained.
  • Pakistan''s textile exports have declined during the last four years because of the cost of doing business which is the highest in the region, he said and added that the textile industry has been hit hard due to high cost of energy, both gas and electricity, leaving Pakistan''s exports uncompetitive in the global market as the cost of production of both gas and electricity is about 30 percent higher than the regionally competitors - Bangladesh, India and Vietnam.
  • Mazhar said both spinning and weaving sectors are the backbone of textile value chain. Both have faced the brunt of high cost of doing business, hence left unviable throughout the country. Today, spinning industry is incurring heavy losses by selling yarn below cost. The production of yarn and fabric is substantially more than the local consumption; therefore, their exports must be encouraged, he added.
  • He said Regional countries are following export-friendly policies to increase their exports. In the last 10 years, Bangladesh textile exports rose from $9.8 billion in 2006 to $35.2 billion in 2016, ie, about 260 percent and China $144 billion to $255 billion, up 77 percent. In addition, India''s textile exports surged from $18.4 billion to $35.4 billion, Vietnam''s $ 6.6 billion to $30.5 billion, while Pakistan''s textile exports have gone down from $ 14 billion to $12 billion. The share of these countries in the global textile trade is increasing while the share of Pakistan has reduced from 2.2 percent to 1.5 percent.
  • He demanded of the government to remove the levy of Gas Infrastructure Development Cess (GIDC) on gas. He further demanded that the government should provide gas at the regionally competitive rate of Rs 400/MMBTU as was earlier announced by the ECC in November 2016 but the decision could not be implemented.
  • Senior Vice Chairman APTMA further requested that the following measures be taken on an urgent basis to improve the efficiency and viability of textile industry: Expeditious payment of outstanding sales tax refunds and other refunds to address the liquidity issue and a check on large scale influx of imported yarn and fabrics in the country to save the domestic industry. He added that Free Trade Agreements and Preferential Trade Agreements must be reviewed and revisited in such a way that the exports to those countries be increased, he maintained.
  • He also demanded of the government to encourage investment in spinning, weaving and finishing sectors in such a manner that maximum cotton be converted into yarn and further downstream value added products because it will not only facilitate farmers and the spinning industry but would also help whole textile chain and the economy.
  • He said that due to the lucrative investment policy in the above referred period the total installed capacity of the textile industry and the production of basic textile products rose by more than 40 percent. The Senior Vice Chairman APTMA said the textile industry of Pakistan is capable enough to bring the economy out of morass. He hoped that the new Prime Minister Shahid Khaqan Abbasi and his cabinet would take immediate steps to arrest the drastic decline in exports during last four years, as any further negligence or delay will take the economy to a point of no return.
  • He urged Prime Minister Shahid Khaqan Abbasi to issue instructions to the authorities concerned to implement textile package of Rs 180 billion, announced earlier this year for the support of exports and the textile industry. Mazhar also demanded that the notification for release of refund under Drawback of Duties and Taxes Order from July 01, 2017 to June 30, 2018 be issued without the precondition of growth in exports of 10 percent in 2017-18 as compared to 2016-17. Payments under this package must also be released without further delay, he maintained.

CCI Opens 83 Cotton Purchase Centres In State

 Minister for Irrigation, Marketing and Legislative Affairs T Harish Rao on Saturday inaugurated a cotton purchase centre in the Agricultural Market at Gajwel.

Speaking on the occasion, Harish said the Cotton Corporation of India (CCI) had opened 83 cotton purchase centres in Telangana State. 

He informed that the unique programme of cotton purchase through cards had been launched in the State in order to put an end to the malicious practice of middlemen purchasing cotton directly from hapless farmers at throwaway prices and make hay. 

Referring to the crop loan waiver issue, the Minister pointed out that the neighbouring Andhra Pradesh had waived only Rs 7,000 crore crop loan out of Rs 28,000 crore, whereas the Telangana government had cleared Rs 8,400 crore crop loan out of a total loan of Rs 17,000 crore. 

Alleging that TDP chief and AP Chief Minister N Chandrababu Naidu was trying to sabotage Telangana’s Dindi and Palamur irrigation projects, Harish said TPCC chief Uttam Kumar Reddy and CLP leader K Jana Reddy owed an explanation to the toiling farmers over their unholy alliance with the anti-Telangana TDP.

The Minister also pointed out that the TRS government had taken up construction of a warehouse to store 17,000 tonnes of food grains at a cost of Rs 1,024 crore after formation of Telangana State.

Indian start-ups can now raise 100% funds from an FVCI

The ministry’s department of industrial policy and promotion (DIPP) has for the first time included start-ups in its FDI policy document.

Ho Chi Minh City to host Cotton Day in September

Ho Chi Minh City will host the Cotton Day 2017 on September 12, which aims to strengthen connection between garment-textile firms and partners, suppliers and experts in the cotton sector.

The event, to be held by the Cotton Council International (CCI) and the Vietnam Textile and Garment Association (VITAS), will be a chance for enterprises to learn about global cotton demand and brands’ consumption trends.

Within the event, a conference and fashion show will be held, introducing the COTTON USA collections of Canifa and John Henry brands, including those designed by five winners of the COTTON USA-Fashion Design contest.

Vu Duc Giang, VITAS President, said that Vietnam has to import a large amount of cotton as the domestic sector meets only 0.04 percent of demand. Among supply sources, cotton from the US is considered the highest quality, accounting for up to 60 percent of total cotton imports.

Giang said that the Cotton Day is expected to enable Vietnamese firm to use the COTTON USA label on their products. Since 2017, the CCI has helped Vietnamese fashion brands use US cotton to enhance their products’ quality.

According to the VITAS, despite challenges facing Vietnam’s garment and textile sector, including pressure from anti-dumping tax on fibre in Turkey and India, the sector still earned 19.8 billion USD from export in the first eight months of 2017, up 9.9 percent year on year.

The Cotton Day is one of the CCI’s biggest events in Asia. The event began in Japan in the early 1990s and has been held in the Republic of Korea, Taiwan (China), China, Thailand, and Bangladesh.

This year, it is held for the first time in Vietnam and Indonesia.-VNA

Textile mills cut cotton purchases from Gujarat by 40%

Faced with contamination in cotton from Gujarat, the largest producer of the crop in the country, textile mills in the south have cut procurement by about 40% or nearly 15 lakh bales (a bale is 170 kgs) from the state during the 2016-17 season (October-September). Textile mills in the south buy around 40 lakh bales of cotton from Gujarat, which produces nearly 95 lakh bales per season. "Some mills have totally stopped buying Gujarat cotton," said P Nataraj, vice president, ICF and MD, KPR Mill, one of the largest integrated textile mills in the country. The contamination results in a fall in the quality of yarn. It also leads to a 5% drop in yarn output. Cotton accounts for about 60% of the total costs in a textile mill. With the increase in textile mills in Gujarat, ginners in the state have started mixing comber waste, ICF officials said. "It is very difficult to identify the contamination as comber waste looks cleaner than cotton,"
 

Lower GST on job work of textile yarn to help SMEs

Reduction in GST rates on job work of textile yarn and fabric manufacturing to 5 per cent from 18 per cent will give a leg-up to SMEs in power loom, knitting and processing sectors, said CITI. 

According to Chairman of the Confederation of Indian Textile Industry (CITI) J Thulasidharan, reduction of service tax on job work would bring relief to the textile industry from the extra burden as bulk of the work is with SMEs and carried on through job works. 
 

Textile mills want to improve efficiency and get cleaner. Working closely with key customers in India and China, Novozymes launched BioPrep® Fusion for cleaner pre-treatment – with big success.

Textile mills have long required solutions that improve their manufacturing processes, decrease water consumption, and reduce the pollutants they release as wastewater. It’s now an urgent need as consumers demand clothes produced in a sustainable way and environmental regulations get tougher.

For example, Tirupur, one of India’s biggest textile hubs, was close to collapse in the year 2011, after a High Court order had shut down over 750 dyeing units over environmental concerns.

A particularly tough challenge for these mills is the textile scouring process, which requires high process temperatures, harsh chemicals and plenty of water to remove impurities from the fabric and prepare it for further processing.

Listen closely
In December 2014, Novozymes organized a workshop in Tirupur with more than 140 key professionals from India’s textile sector to identify industry challenges and raise awareness about the benefits of bioscouring.

The learnings from that event and from close interaction with key textile customers led to development of BioPrep Fusion, a new multi-enzyme solution which removes pectin and other impurities from raw cotton, and prepares textiles for the wet-processing stages to ensure excellent dyeing results. The product was first launched in Tirupur and the Guangzhou province in China in mid-2016.

“When BioPrep Fusion was introduced in Tirupur, it was the answer to textile customers’ request for new technology that would help them continue their journey towards more sustainable processing,” says Peter Faaborg-Andersen, Global Marketing Director at Novozymes.

More performance, lower footprint
Bioprep Fusion enables textile mills to reach desired performance and reliability, while working in neutral pH and at lower temperature. A growing number of mills in India, China, Pakistan and Bangladesh are using the technology. They are realizing improved fabric quality, less weight loss, and substantial savings in water (67% reduction), time (50%), energy (50%) and chemicals discharge (30 % less COD/BOD in waste water) compared to conventional pre-treatment.

“BioPrep Fusion has been designed to make it compatible with textile knits manufacturing processes, which are prevalent,” says Peter Faaborg-Andersen. “Recent results show that BioPrep Fusion technology can also work well for yarn and towel manufacturing.”

 

China significantly reduces spun yarns import from India

 

India’s spun yarn exports in March 2017 declined 47.6 per cent in volume terms and fell 39.3 per cent in value terms. Spun yarn (all kinds) shipments were at 64.55 million kg worth US$198.6 million, implying per unit realization of US$3.08 per kg which rose US cents 13 from previous month and were up US cents 42 as compared to March 2016.

 

With Indian yarn imports declining significantly in China, Bangladesh emerged as the largest importer of spun yarns in terms of value in March. Bangladesh imported spun yarns worth US$40.19 million while China imports were worth US$34.40 million during the month.

 

In March 2017, 83 countries imported spun yarn from India, with Bangladesh at the top accounting for 20.24 per cent of the total value with imports plunging 41 per cent in terms of volume YoY and declining 32 per cent in value YoY. China was the second largest importer of spun yarns in March and accounted for around 17 per cent of all spun yarn exported from India. Export to China were down 65 per cent in volumes and 59 per cent lower in value.

 

Pakistan was the third largest importer of spun yarns, which saw volume rising 3.1 per cent while it was up 4.6 per cent in value. These three top importers together accounted for around 44 per cent of all spun yarns exported from India in March.

 

Cotton yarn was exported to 71 countries with Bangladesh as the largest importer from India in March, followed by China and Pakistan. The top three together accounted for more than 49.35 per cent of cotton yarn exported from India.

 

Brazil, Dominican Republic, United Arab Emirates, Jordan and Madagascar were among the fastest growing markets for cotton yarn, and accounted for 3.47 per cent of total cotton yarn export value. Eleven new destinations were added for cotton yarn export, of which, North Korea, Chile, Oman and Austria were the major ones.

 

Eight countries did not import any cotton yarn from India, including Venezuela, France, Norway and Sudan. They had imported yarns worth US$1.25 million in March 2016. In March 2017, significant deceleration was seen in export to Bahrain, New Zealand, United Kingdom, Romania and Greece.

Xinao to launch new yarns range to combine fashion and performance

Zhejiang Xinao Textiles Inc (Xinao), a leading worsted spinner of wool, producing machine knitting yarns for the sweater, sports, outdoor, underwear and sock industry, will launch a series of newly developed yarns in its Autumn/Winter 2018/19 collection during the Spinexpo exhibition to be held in Paris.

Xinao’s new range of “fashion meets performance” yarns include built in moisture management, UV-blocking, enhanced wear performance, water resistance, anti-bacterial, stretch-recovery, and yarns designed for production of compression garments, the company reports.

The new yarns have been designed and engineered to meet the rapid growth in active and fitness wear, as well as the athleisure market, which has been identified by some not just as a fashion trend but as a cultural change, particularly in the womenswear sector.

The new yarns also aim to address the growing crossover interest and demand from the fashion sector to incorporate functionality into fashion, and vice versa.

The sports and outdoor sectors are now looking into ways to introduce a sense of fashion into already functional products, so that the products not only perform well, but also look and feel good.

Spinexpo exhibition is the only international creative offer for fibers, yarns, knitwear and knitted fabrics will be held from 3-5 July at 34, Quai d’Austerlitz 75013 in Paris.

China significantly reduces spun yarns import from India

India’s spun yarn exports in March 2017 declined 47.6 per cent in volume terms and fell 39.3 per cent in value terms. Spun yarn (all kinds) shipments were at 64.55 million kg worth US$198.6 million, implying per unit realization of US$3.08 per kg which rose US cents 13 from previous month and were up US cents 42 as compared to March 2016.

With Indian yarn imports declining significantly in China, Bangladesh emerged as the largest importer of spun yarns in terms of value in March. Bangladesh imported spun yarns worth US$40.19 million while China imports were worth US$34.40 million during the month.

In March 2017, 83 countries imported spun yarn from India, with Bangladesh at the top accounting for 20.24 per cent of the total value with imports plunging 41 per cent in terms of volume YoY and declining 32 per cent in value YoY. China was the second largest importer of spun yarns in March and accounted for around 17 per cent of all spun yarn exported from India. Export to China were down 65 per cent in volumes and 59 per cent lower in value.

Pakistan was the third largest importer of spun yarns, which saw volume rising 3.1 per cent while it was up 4.6 per cent in value. These three top importers together accounted for around 44 per cent of all spun yarns exported from India in March.

Cotton yarn was exported to 71 countries with Bangladesh as the largest importer from India in March, followed by China and Pakistan. The top three together accounted for more than 49.35 per cent of cotton yarn exported from India.

Brazil, Dominican Republic, United Arab Emirates, Jordan and Madagascar were among the fastest growing markets for cotton yarn, and accounted for 3.47 per cent of total cotton yarn export value. Eleven new destinations were added for cotton yarn export, of which, North Korea, Chile, Oman and Austria were the major ones.

Eight countries did not import any cotton yarn from India, including Venezuela, France, Norway and Sudan. They had imported yarns worth US$1.25 million in March 2016. In March 2017, significant deceleration was seen in export to Bahrain, New Zealand, United Kingdom, Romania and Greece.

    Exibitions Dates