Texprocil News1 - Handloom Export Promotion Council

2 

IBTEX No. 059 of 2013 APRIL 08, 2013 

NEWS CLIPPINGS 

INTERNATIONAL NEWS 

No 

Topics 

1 USA: Signs of Factory Revival Hard to Spot 

2 NY futures continued to move sideways this week 

3 Weekly US Cotton Market Review 

4 Africa indaba on textiles unpacked 

5 China: Local textile firms see gains from Beijing expo 

6 ’Pakistan, Algeria should strengthen economic relations’ 

7 Pakistan: PHMA urges govt to rollback 2% sales tax on textiles 

8 German delegation discusses energy issue with APTMA 

9 South Africa’s Industrial Plan to support textile sector 

10 Peru exporters want more efforts to ensure textile growth 

NATIONAL NEWS 

1 Fibres & Yarns expo opens this week 

2 Indore: Proposed Textile Park expected to be a hit among 

manufactureres 

3 Textile Ministry urged to allow duty free import of yarn 

4 Indian textile sector keen to explore emerging markets 

5 Cotton continues winning spree 

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Export Promotion Council. Page 1

News Clippings 

INTERNATIONAL NEWS 

Signs of Factory Revival Hard to Spot 

The idea that American manufacturing is on the cusp of a renaissance is everywhere 

these days—except in the hard numbers. 

It's true that industrial production has grown twice as fast as the economy as a 

whole in this recovery, and manufacturers are adding jobs again. But economists 

see those gains as too small relative to what was lost in previous years to suggest 

a full-blown revival. Factories fell so hard, the logic goes, some gains are a given. 

"There's simply no statistical evidence of a broader renaissance at this point," 

says Daniel Meckstroth, chief economist with the Manufacturers Alliance for 

Productivity and Innovation, an Arlington, Va., group that represents mostly 

large U.S. producers. 

Mr. Meckstroth says measures that look deeper inside the sector continue to 

flash warning signs. Take factory closings. For the past 13 years, the rate 

factories have been closing has been declining. That's good. The trouble is the 

rate of openings has been falling even faster. Simply put, America's factories are 

dying faster than they're being born. 

To be sure, many U.S. manufacturers are doing better than they have in some 

time. That's visible in hiring. Manufacturers have added more than 500,000 jobs 

since early 2010, and Monday's report from the Institute for Supply 

Management showed manufacturers continued expanding in March. But those 

gains pale compared with the deep hole created during the recession and just 

before it: U.S. factories lost nearly 5.7 million jobs from 2000 to 2010. 

www.texprocil.org.in Page 2


There are many reasons to shutter a plant. Companies sometimes close 

operations as they streamline and modernize—allowing them to consolidate in 

fewer locations, often increasing overall output in the deal. That's good for the 

economy because it reflects growing productivity, the ability to produce more 

with less, which is crucial for lifting living standards over time. But it still can 

cost jobs in the short run and suggests manufacturers are far from vibrant. 

Tracking the birth and death of factories "isn't a perfect indicator," says Mr. 

Meckstroth. "But it's the one thing we have that's most current—and it doesn't 

show any revival." 

The nation's stubbornly wide trade deficit in manufactured goods is another 

trouble sign. If American factories have regained their competitive edge, it would 

make sense for them to be selling more abroad as well as at home—trimming the 

imbalance. But that hasn't happened. 

Another way to gauge competitiveness is to look at the share of manufactured 

goods purchased in the U.S. that are imported. This includes everything from 

finished products, like a blender, to car parts that are then used in a U.S. factory 

to build a vehicle. A revived U.S. factory sector ought to be grabbing more of its 

home market, but that also isn't happening, at least not yet. 

Mr. Meckstroth estimates that in 2012, imports accounted for nearly 40% of the 

manufacturing goods consumed in the U.S.—slightly more than the year before. 

Indeed, after dropping a bit during the recession, the share of imports has been 

rising for years. It was a mere 9% in 1967, when the government began tracking 

this measure. 

Many say falling energy costs, driven by the nation's natural-gas boom, will help 

fuel a manufacturing revival. But the price of natural gas is only one factor 

companies consider when they're deciding where to build. 

Goldman Sachs GS +0.49% economist Jan Hatzius, in a recent note to investors, 

said "rising productivity, subdued labor costs, low energy prices, and cost 

increases abroad have made the United States a much more attractive place to 

produce, especially on a relative basis." But he also sees no evidence that a 

broader revival is under way. 

"Measured productivity growth has been strong," he wrote, "but U.S. export 

performance—arguably a more reliable indicator of competitiveness—remains 

middling at best." 

Some experts insist the renaissance is simply too new to show up in the 

numbers. Others point to high-profile cases of companies returning jobs from 

overseas as evidence that the tide has turned. 

Examples of such "reshoring" range from tiny companies like Sleek Audio, which 

moved production of its high-end earphones to Florida from China, to General 

Electric Co., GE -0.65% which moved appliance production back to Kentucky 



from Mexico and China. But even advocates of reshoring admit it's still only a 

trickle, not a tidal wave. The Reshoring Initiative, a Chicago-based group that 

tracks examples, estimates that only about 50,000 jobs have been created in the 

U.S. as a result of reshoring since 2010. 

Meanwhile, many U.S. producers say some of the biggest barriers to a revival are 

factors like health-care costs and mounting regulations that make it costly to 

expand domestic operations. 

(Source Wall Street Journal, Apr 08, 2013) 

***************** 

HOME 

NY futures continued to move sideways this week, as May gave up just 13 

points to close at 88.33 cents, while December advanced 57 points to close at 

87.94 cents. 

The market has been forming another flagging pattern, which either signals a 

pause in a prevailing trend or a potential reversal in the making. For the last 

eleven sessions, the May contract has settled in a very tight range of just 263 

points, between 86.59 and 89.22 cents, and it is quite likely that we will soon see 

a breakout from this triangle formation. The question is in what direction? 

Typically these patterns are resolved in the direction of the trend, which in this 

case would be up, and there are still several factors acting in support of higher 

prices. The most important in our view remains the unusually large open interest 

in May and July, which as of this morning still amounted to a combined 166’424 

contracts or 16.6 million bales. This is just 1’868 contracts less than last week, 

which tells us that instead of getting out of current crop futures, traders prefer to 

roll their May positions into July, hoping for a better outcome down the road. In 

doing so they increase the likelihood for some fireworks over the next couple of 

months, since the July contract will mark the end of the line as far as current 

crop is concerned. 

Another element of support is the continuous strong demand for US cotton. 

Today’s US export sales report revealed that last week a combined 232’300 

running bales of Upland and Pima cotton were sold for both marketing years. 

Total commitments for this season now add up to 12.0 million statistical bales, 

whereof 8.5 million bales have already been exported. Unshipped commitments 

are down to just 3.5 million bales, which is 1.2 million bales less than a year ago, 

and at the current pace of shipments it would take just nine weeks to get these 

remaining commitments shipped. 



When we look at the current US balance sheet, we started with total supply of 

20.36 million bales, of which 12.0 million have so far been sold for export and 

3.4 million go to domestic mills. However, existing stocks will also have to supply 

about 0.9 million bales for domestic mill use and an estimated 0.8 million bales 

for export commitments between August and October, before new crop cotton 

becomes available. This leaves just around 3.5 million bales available for sale at 

this point, which at the current sales pace of 150’000 bales a week would all be 

gone within five months, or by the end of August. We therefore expect a 

slowdown in export sales from here on forward, not because mills are no longer 

interested, but because the US can’t possibly continue to sell at the current pace. 

There were some interesting developments on the macroeconomic front this 

week, which may have an impact on our market. Potentially bullish, especially in 

the longer run, is Japan’s decision to unleash US$ 1.4 trillion in quantitative 

easing, effectively doubling its monetary base by 2015. This is by far the most 

aggressive move by any central bank so far when compared to the size of the 

GDP. 

Whether this is just another chapter in an ongoing currency war or whether it is 

part of a concerted effort by central banks to keep their economies from 

imploding, the outcome is going to be the same! Running the printing press is 

tantamount to confiscation by eroding the purchasing power of the currency! 

Investors are starting to realize that having money in a bank or in a low-yielding 

government bond is probably not the wisest decision in the long run, because 

their money is at risk of being confiscated either directly, as in the case of 

Cyprus, or by debasement of the currency. Investors are therefore increasingly 

seeking diversification into tangible assets, such as real estate, stocks and 

commodities. 

Another development that needs to be watched is the recent temper tantrum by 

North Korea, which has the potential to grow into a full-blown conflict. So far 

most observers believe that North Korea is more bark than bite, but any 

escalation of the situation could prompt hedge funds to move to a “risk off” 

position, which would have a negative impact on commodity markets, as we have 

seen on previous occasions. 

So where do we go from here? The tug-of-war continues, as neither the spec 

longs nor the trade shorts are willing to part with their position. The shorts seem 

to have the weaker hand though, because they don’t really have much cotton left 

to back up their bets. An estimated 3.5 million bales of uncommitted US cotton, 

some of which is not going to be tenderable, against 16.6 million bales of open 

interest in May and July futures. And with every decent export sales report this 

pool of available US cotton shrinks further. Physical demand for US cotton 

shows no signs of slowing down yet, as mills still have a lot of holes to fill 

between now and new crop, and there aren’t that many cheap alternatives to US 

cotton at the moment. We therefore feel that as the trade procrastinates, it sets 



itself up for a short squeeze in the next couple of months! The trade of course 

hopes that speculators will blink first and somehow get spooked out of their 

longs, but this is just wishful thinking at this point. 

Best Regards 

(Source Plexus cotton, Apr 04, 2013) 

Weekly US Cotton Market Review 

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HOME 

Spot cotton quotations averaged 89 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 83.57 cents per pound for the week ended Thursday, April 4, 

2013. 

The weekly average was up from 82.68 cents last week, but down 84.41 cents 

reported the corresponding period a year ago. Daily average quotations ranged 

from a low of 82.39 cents on Monday, April 1 to a high of 84.34 cents on 

Wednesday, April 3. Spot transactions reported in the Daily Spot Cotton 

Quotations for the week ended April 4 totaled 9,662 bales. This compares to 

5,082 bales last week and 6,699 bales reported a year ago. Total spot 

transactions for the season were 1,563,638 bales, compared to 818,108 bales the 

corresponding week a year ago. The ICE May settlement prices ended the week 

at 88.33 cents, compared to 88.46 cents last week. 

SOUTHEASTERN MARKETS 

Spot cotton trading was moderate. Supplies were moderate. Demand was good. 

Producer offerings were moderate. Average local spot prices were higher. 

Trading of CCC-loan equities was inactive. Producers took advantage of higher 

ICE futures during the period to forward contract and fixed prices on a moderate 

volume of 2013-crop cotton. Cool, mostly clear weather prevailed through parts 

of Virginia and the Carolinas during the week. Nighttime temperatures were in 

the low 30s. Warm, moist air from the Gulf of Mexico collided with cooler air 

over parts of Alabama, northern Florida, and Georgia, which resulted in tornado 

warnings throughout the region. 



No damage was reported. Daytime highs were in the mid-50s, with overnight 

lows in the low 40s. Many areas remained too wet to support equipment. 

Reports indicated that weather delays in planting grain crops due to cold, wet 

ground could shift additional acres to cotton. 

SOUTH CENTRAL MARKETS 

North Delta 

Spot cotton trading was inactive. Supplies were light. Demand was light. Average 

local spot prices were higher. Trading of CCCloan equities was inactive. A light 

volume of forward contracting was reported. Scattered showers, strong winds, 

and cold temperatures dominated the weather pattern during the week. Fields 

remained saturated due to prolonged wet weather. About one inch of rain was 

reported in most areas. Daytime temperatures ranged from the low 50s to the 

upper 60s. Overnight lows were in the low 40s. According to the National 

Agricultural Statistics Service, both topsoil and subsoil moisture was rated at 

mostly adequate to surplus throughout the region. Cold, wet conditions halted all 

fieldwork. 

South Delta 

Spot cotton trading was inactive. Supplies were light. Demand was light. Average 

local spot prices were higher. Trading of CCCloan equities was inactive. A light 

volume of forward contracting was reported. Cool, damp conditions dominated 

the weather pattern during the week. Less than one inch of rain was reported, 

but fields remained too soft to support equipment. Daytime high temperatures 

were in the 50s, while overnight lows were in the mid-40s. According to the 

National Agricultural Statistics Service, both topsoil and subsoil moisture was 

rated at mostly adequate to surplus throughout the region. Cold, wet conditions 

brought fieldwork to a standstill. 

SOUTHWESTERN MARKETS 

East Texas-Oklahoma 

Spot cotton trading was slow. Supplies were light. Demand was moderate. 

Average local spot prices were higher. Producer offerings were light. Trading of 

CCC-loan equities was inactive. Foreign mill inquiries were moderate. Interest 

was best from Indonesia, Taiwan, and Turkey. Producer interest in forward 

contracting was good. 

Widespread thunderstorms brought beneficial precipitation ahead of planting in 

some areas of Texas. Inclement weather interrupted planting activities in the 

Brazos Bottom. Although parts of southern Texas received rain and hail damage, 

much of the cotton-growing areas remained parched and need more moisture for 



germination. Beneficial precipitation was received that measured around one to 

one and one-half inches of rainfall in Kansas. 

Recent rain events improved subsoil moisture in southern counties, resulting in 

some traditional dryland cotton fields to be planted to corn and beans. Acreage 

planted to cotton in Kansas is expected to be reduced 16,000 acres from last year 

to 40,000 acres, according to the 2013 Prospective Plantings released by the 

National Agricultural Statistics Service (NASS). 

In Oklahoma, some southeastern wheat fields that failed, were plowed and 

prepared for cotton planting. A band of severe weather swept across the region, 

but droughty conditions continued. According to NASS, producers expect to 

plant 160,000 acres, down 48 percent from the previous year. 

West Texas 

Spot cotton trading was slow. Supplies were light. Demand was moderate. 

Average local spot prices were higher. Producer offerings were light. Trading of 

CCC-loan equities was inactive. Foreign mill inquiries were moderate. Interest 

was best from Indonesia, Taiwan, and Turkey. Producer interest in forward 

contracting was good. 

Thunderstorms brought up to three-quarters of an inch of beneficial rainfall to 

some areas that helped fortify subsoil moisture ahead of planting. Some parts of 

the Northern High Plains received a mixture of rain and snow. The cottongrowing 

areas of the Rolling Plains received around one to two inches of 

precipitation. Irrigated fields were watered ahead of planting before and after the 

winter storms. Fertilizer was applied to the fields. Meetings and trade shows 

were well attended. 

WESTERN MARKETS 

Desert Southwest (DSW) 

Spot cotton trading was slow. Supplies and demand were light. Average local 

spot prices were higher. No forward contracting or domestic mill activity was 

reported. Foreign mill inquiries were light. The crop made good progress in 

Yuma, Arizona. Planting expanded into western and central Arizona. According 

to the National Agricultural Statistics Services’ (NASS) Prospective Plantings 

released on March 28, Arizona cotton acreage is anticipated to be around 

160,000 acres, down 40,000 from the previous season. Local experts were in 

general agreement with the figure. Dry conditions persisted in New Mexico and 

El Paso, Texas. 



A few producers were irrigating with well water if available. Water allocations 

from irrigation districts would not be available until June. Local experts 

indicated that NASS Prospective Plantings acreage for New Mexico and El Paso, 

Texas was too optimistic and that acreage would be significantly lower, due to 

the on-going drought and limited irrigation water supplies. 

San Joaquin Valley (SJV) 

Spot cotton trading was inactive. Supplies were light. Demand was moderate. 

Average local spot prices were higher. No forward contracting or domestic mill 

activity was reported. Foreign mill inquiries were slow. Thunderstorms with 

rainfall were received early in the reporting period. Approximately one-third of 

an inch of rain was deposited in the central and northern SJV. 

Unusually, warm temperatures in the high 70s to low 80s advanced planting 

activities. According to the National Agricultural Statistics Services’ Prospective 

Plantings released on March 28, SJV growers intend to plant 90,000 acres, 

down 37 percent from the previous year. The decline is attributed to competitive 

crops and limited irrigation water supplies. 

AMERICAN PIMA (AP) 

Spot cotton trading was slow. Supplies were moderate. Demand was good. 

Average local prices were steady. Forward contracts for2013-crop were offered, 

but no contracts were signed. No domestic mill activity was reported. 

Foreign mill inquiries were steady for current crop. New-cropinquiries were 

mostly for the purpose of price discovery. Some shippers limited new-crop 

offerings. Industry representatives reported that there was a possibility that no 

organic AP would be planted in California and limited in Arizona. 

Sources cited lack of demand, over-supply from previous year, and mills offered 

no contracts to growers at this time. Temperatures were in the 80s for most of 

the region. The crop made good progress in Yuma, Arizona. Planting activities 

expanded in the San Joaquin Valley. Some seedling emergence was reported in 

the south Valley. 

According to the National Agricultural Statistics Services’ Prospective Plantings 

released on March 28, AP planted acreage is expected to be 206,000 acres, down 

14 percent from the previous year. However, local experts reported that acreage 



would be significantly lower than projected for New Mexico and Texas, due to 

the on-going drought. 

TEXTILE MILL REPORT 

Domestic mill buyers inquired for a moderate volume of 2013-crop cotton, color 

42 and better, leaf 4 and better, and staple 34 and longer for first quarter 2014 

delivery. Reports indicated most mills had covered all of their immediate-tonearby 

raw cotton needs. No sales were reported. Demand for all styles of yarn 

remained good and most mills were operating at capacity. 

Demand through export channels was light. Turkish mill buyers purchased a 

moderate volume of USDA Green Card Class, color 41, leaf 3 and 4, and staple 36 

for May/June shipment. Indonesian mill buyers inquired for a light volume of 

USDA Green Card Class, color 31, leaf 3, and staple 36 for May/June shipment. 

Representatives for mills in Vietnam inquired for a moderatevolume of color 41, 

leaf 4, and staple 35 for May through July shipment. 

USDA ANNOUNCES SPECIAL IMPORT QUOTA #8 FOR 

UPLAND COTTON - APRIL 4, 2013 

The Department of Agriculture’s Commodity Credit Corporation announced a 

special import quota for upland cotton that permits importation of a quantity of 

upland cotton equal to one week’s domestic mill use. The quota will be 

established on April 11, 2013 allowing importation of 14,776,787 kilograms 

(67,869 bales) of upland cotton. 

Quota number 8 will be established as of April 11, 2013, and will apply to upland 

cotton purchased not later than July 9, 2013, and entered into the U.S. not later 

than October 7, 2013. The quota is equivalent to one week’s consumption of 

cotton by domestic mills at the seasonally-adjusted average rate for the period 

August 2012 through October 2012, the most recent three months for which data 

are available. 

Future quotas, in addition to the quantity announced, will be established if price 

conditions warrant. 

(Source www.ams.usda.gov, Apr 05, 2013) 

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HOME 



Africa indaba on textiles unpacked 

Africa as an alternative source for textiles, the practicalities of getting a product 

to consumers and work-related social issues within factories in the region will be 

unpacked at a textile industries gathering in Cape Town this week. 

This gathering called Source Africa, a four-day meeting of business leaders from 

the textile and apparel industry, will be held at the Cape Town International 

Convention Centre starting Tuesday 

Rob Davies, Minister of Trade and Industry, will speak at the event opener next 

Tuesday. Steve Lamar, executive vice president of the American Apparel & 

Footwear Association, will join him. 

A series of business seminars will run until Friday. The first seminar will focus 

on the practicalities of getting a product to consumers once it is manufactured. 

Organisers said it would also focus on how to get raw materials to factories. 

“Speakers will discuss obstacles related to infrastructure and transportation and 

the best practices for brands in dealing with these issues. Other key points for 

this seminar will be speed-to-market realities and opportunities and how to deal 

with customs clearance,” organisers said. 

The African Cotton & Textile Industry Federation (ACTIF) will also host a 

session looking at “Africa as an alternative sourcing destination.” 

(Source www.thenewage.co.za, Apr 07, 2013) 

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Local textile firms see gains from Beijing expo 

HOME 

TAIPEI--Taiwanese firms have reaped benefits from their presence in the March 

27-29 Intertextile Beijing Apparel Fabrics, an annual textile trade show in China, 

The Taiwan Textile Federation (TTF) said Saturday. 

The 26 Taiwanese exhibitors secured about US$480,000 (NT$14.35 million) in 

orders from foreign buyers during the event, the local textile business grouping 

said. 



Moreover, the 26 firms are expected to receive no less than US$2.5 million in 

total orders in the near future as potential buyers had paid close attention to 

these local exhibitors, the federation said. 

According to the TTF, the local exhibitors had showcased innovations such as 

eco-friendly fabrics, sportswear, lace fabrics and embroidery items, which were 

seen by about 850 potential foreign buyers who visited their booths. The 

interested international brands included Burberry, Polo Ralph Lauren, GAP, and 

H&M. 

In the fair held at the China International Exhibition Centre in Beijing, 

Taiwanese firms occupied a display area of 303 square meters, which grew 10 

percent from a year earlier. 

The Intertextile Beijing is seen as the most important textile exhibition in 

northern China and has drawn buyers from other Asian countries and Europe. 

In the 2013 event, a total of 1,330 textile suppliers from 16 countries displayed 

their works in an area of 50,000 square meters, and trade show organizer held 17 

seminars on subjects ranging from fashion trends, manufacturing technology 

and environmental protection to marketing and legal affairs. 

In addition to Taiwan, exhibitors came from Italy, Germany, South Korea, 

Japan, Pakistan, Austria, India, Switzerland, Hong Kong, Thailand, Portugal, the 

United Kingdom, Turkey and the United States. 

The TTF said as more and more foreign buyers set store by Intertextile Beijing, 

the federation is determined to organize another delegation to attend the event 

next year, with preparatory work kicking off in late October. 

(Source www.chinapost.com.tw, Apr 07, 2013) 

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’Pakistan, Algeria should strengthen economic relations’ 

HOME 

FAISALABAD: Pakistan and Algeria enjoy excellent political relations but the 

economic relations are not satisfactory, we are here to strengthen bilateral trade 

ties by establishing direct contact with the business community of Pakistan, said 

Dr. Ahmed Benflis, Ambassador of Algeria in Pakistan. 

Addressing the members of Faisalabad Chamber of Commerce and Industry 

(FCCI) here on Saturday, he said that Algeria is basically oil exporting country 

and most of their imports are from EU and France. Some of these countries are 

indirectly exporting textile products to Algeria also. He said that Pakistan is in 

deep energy crisis and we could help our brotherly country by increasing exports 

of Liquefied Natural Gas (LNG). Similarly, Pakistani businessmen should 



explore the opportunities and export of rice and textile products directly to 

Algeria. 

He said that there are only two Pakistan businessmen hailing from Karachi and 

we need to expand our business to business ties by exploiting all our available 

channels. He invited Pakistani businessmen to visit Algeria and have face to face 

meetings with the counterparts of this brotherly country. 

Regarding a question about visa, he said that three-month visa is issued within 

four days which could be further extended very easily on recommendation of 

FCCI. 

He said that an international exhibition would be held in June this year in 

Algeria and hoped that Pakistani businessmen would avail this opportunity by 

taking part in this exhibition and introducing their products there. 

He said that a number of agreements were signed between trade bodies of both 

the countries in the past but these were not really implemented. 

Earlier in his welcome address to the Algerian Ambassador, President Faisalabad 

Chamber of Commerce & Industry (FCCI), Mian Zahid Aslam, said that Pakistan 

and Algeria have always enjoyed extremely cordial and friendly relations. There 

is tremendous trade potential between the two brotherly Islamic countries. 

There is an excellent opportunity for Pakistani entrepreneurs to collaborate in 

different sectors in Algeria. 

He said that Algeria is Pakistan's important trading partner but still trade 

volume between both the countries is negligible if taking account of trade volume 

of Algeria as US $124 billion in 2012. He continued that in 2011 bilateral trade 

between Algeria and Pakistan stood at US $27 million. Algeria exported US $1.15 

million worth of goods to our country while Pakistan's exports stood at US $26 

million. 

He stated that there are vast prospects of expansion of bilateral trade including 

joint venture in textile, agro-based industry, leather goods, oil and gas and IT. 

Algeria has a great potential market for Pakistani products especially Pakistani 

textile and textile products having great demand in Algeria. However, due to 

prolonged energy deficit in Pakistan, power sector offers great investment 

potential in hydro projects and alternative energy sources. Government of 

Pakistan policies are also relaxed for remittance of whole profit in foreign 

currency, he added. 

Chamber chief said that by enhancing direct contacts between private sectors of 

both countries and facilitating them in their efforts, Pakistan and Algeria have 

the potential to take bilateral trade manifold in the near future. FCCI and 

Embassy of Algeria in Pakistan should act as bridge for connecting the business 

communities of both the countries as to exchange of trade delegations on 



reciprocal basis, single country exhibition and signing of Pak-Algeria Trade 

agreement etc. 

Ch. Muhammd Boota, Vice President FCCI, former President, Abdul Qayyum 

Sheikh, Algerian Trade Counsellor, Abdur Rahim, Zeeshan Umer, Ch. 

Muhammad Asghar, Ch. Jamil Ahmed, Shahid Mumtaz Bajwa, Ehsan Malik, 

Sheikh Muhammd Khalid Habib, shared their views on the occasion 

(Source Brecorder - Apr 07, 2013) 

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PHMA urges govt to rollback 2% sales tax on textiles 

HOME 

The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has 

urged the Government to rollback the two percent sales tax imposed on the 

domestic textile sector, which till recently enjoyed zero-tax status, as the 

measure would not benefit the country’s economy. 

Speaking at a meeting, PHMA vice chairman Syed Zia Alamdar Hussain said the 

decision to impose two percent sales tax was taken by the Government without 

taking the industry stakeholders into confidence. 

The statutory regulatory orders (SROs) issued by the Federal Board of Revenue 

(FBR) are totally impractical and unviable and they would not result in increased 

tax collection, he added. 

Mr. Hussain said the present caretaker Government has not initiated any steps 

to aid recovery of the economy, and if it remains reluctant to address the issues, 

it would lead to large scale redundancy. 

Besides the levy of two percent sales tax, the meeting also discussed issues like 

impulsive power and gas outages. 

Mr. Hussain said the preceding Government, which caused the textile units to 

endure 16 hours power outages per day, has caused irreversible damage to the 

domestic industry. 



In spite of its commitment to provide five day per week gas supply during 

summer, the Government directed the authorities to supply gas for just three 

days per week, he said. 

The PHMA members said that in view of the prevailing policies and situation, it 

has become difficult for entrepreneurs to survive in business in Pakistan, which 

is forcing entrepreneurs to consider relocating to other countries. 

(Source Fibre2fashion - Apr 06, 2013) 

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HOME 

German delegation discusses energy issue with APTMA 

A German delegation from Federal Ministry for Economic Cooperation & 

Development, German Embassy, KFW Bank of Germany and GIZ, visited 

APTMA Punjab office. Members Steering Committee on Sustainable Production 

Center (SPC) APTMA Seth Muhammad Akbar, Syed Ahsan Ali and Shahid Faraz 

welcomed the delegation at the APTMA office. 

Secretary APTMA Punjab Anis-ul-Haq made a detailed presentation on the 

APTMA and the SPC to the visiting delegation. He said the image problem and 

the energy shortage are two major challenges of textile industry in Pakistan, 

losing $10 billion opportunity in last seven years while the regional competitors 

were growing during the same. 

Briefing about the SPC, running in collaboration with the GIZ, a German firm, he 

said 42 mills have so far been approached by the SPC, saving 10 MW energy in 

general. The Sustainable Production Centre (SPC) was established in 2008. It 

has a potential to save 268W of energy through implementation of Energy 

Management System (EnMS). Presently the APTMA members are saving Rs395 

million with an implementation cost around Rs65 million. 

The objective of the SPC is to provide technical and management services to the 

APTMA members on energy security, affordability, conservation, Health, Safety 

& Environment (SHE), CSR and renewable energy. He said 90% of the member 

mills are keen for EnMS. 



Majority of them want energy management training with a lot of interest in 

renewable energy, which is an untapped area and the study of a project is 

finalised through the courtesy of GIZ. Further, there is lot of potential for solar 

energy, wind power, small hydro, and bio mass and geothermal energy. On the 

way forward, he said, it is very clear and the APTMA would like to see the 

specialized credit lines on energy efficiency and renewable energy for the 

member mills. 

The visiting delegation appreciated the efforts made by the GIZ in helping out 

the textile industry in energy management. It further hoped that things would be 

streamlined further once the country completes the election process ahead. 


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South Africa’s Industrial Plan to support textile sector 

HOME 

The fifth Industrial Policy Action Plan (IPAP) for 2013-14, launched by the 

Government of South Africa, aims to support the manufacturing of textiles and 

clothing in the country, along with other sectors. 

Unveiling IPAP 2013-14, Minister of Trade and Industry Rob Davies said the 

main objective of the plan was to promote industrialization in the country and 

thereby stimulate economic growth. 

The Minister said South African clothing and textile industry has seen a 

significant turnaround and local firms have been successful in recapturing 

domestic market share and forming working relationships with the government, 

retailers and other manufacturers. He added that the decline in employment in 

the country’s textile and apparel sector has slowed down and the negative trend 

is being reversed. 

IPAP 2013-14 gives high priority to the textiles and garment sector owing to its 

labour-intensive character. The plan also set standards and a strategic tariff 

regime to curb substandard imports. 

The Minister said the South African economy needs to explore new export 

markets, particularly in African continent, and pursue regional integration. 



In addition to exploring new markets, IPAP will focus on generating 

employment, encouraging innovation and taking benefit of new opportunities 

provided by South Africa’s BRICS membership. 


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Peru exporters want more efforts to ensure textile growth 

HOME 

The textile and clothing sector in Peru has great potential, but the difficult 

economic environment in major markets, fall in the exchange rate, and growing 

labour costs are impeding their exports, according to Asociación de 

Exportadores (ADEX or Association of Exproters). 

The situation calls for doubling of efforts to ensure growth of the textile and 

apparel sector, ADEX said in a statement. 

The association’s president Varilias Juan Velasquez said the progress in 

increasing the country’s cotton output has been minimal in spite of the 

Government’s S 0.22 per quintal compensation given to farmers to encourage 

cotton cultivation. 

The availability of cotton at competitive prices is essential for growth of the 

country’s textile and apparel sector, and urged the Government to change its 

strategy, as the present strategy has not worked, Mr. Velasquez said. 

The chairman of ADEX’s garment division, Mr. Pedro Gamio Palacios too 

defended the need to retain the competitiveness of cotton and called for 

implementing a comprehensive strategy for increasing the productivity and 

strengthening cooperation among farmers. 

He said agriculture is very fragmented with farmers owning tiny plots of land. He 

suggested increasing the area under cotton plantation, and adapting modern 

agronomic procedures to yield a good crop that can even be exported. 

The cotton grown in Peru is bought by the textile industry at prices prevailing in 

the international market, but owing to lack of productivity and other factors, 



Peruvian farmers have to depend on Government subsidies to make their prices 

competitive. 

The Peruvian Government has been providing subsidy for several years but it has 

not yielded desired results and hence the strategy should be changed to 

promotion of modernization of irrigation projects, providing technical 

assistance, strengthening partnerships, improving access to finance, and 

increasing the productive areas, Mr. Gamio said. 


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HOME 

NATIONAL NEWS 

Fibres & Yarns expo opens this week 

The Indian textile and clothing industry has tremendous potential to scale new 

heights in the international markets. The prime reason is not only the abundant 

availability of all types of fibres and yarns such as cotton, viscose and polyester 

fibres and yarns in the domestic market, but the availability of all these raw 

materials at prices “lower” than international markets. 

Even today, all fibres and yarns manufactured in India are available to the textile 

and clothing value chain as prices which are below the international markets. 

This price edge needs to be leveraged by the Indian textile value chain to expand 

its foot-print in the global markets. The raw material price advantage alongwith 

with abundant availability is the most lethal competitive factor in favour of 

India. This is precisely the reason that Indian textile and clothing exports have 

been increasing to the international market. To make available these fibres and 

yarns to the downstream fabric, garment and home textiles value chain, leading 

fibre and yarn producers from Indian and abroad will unveil their latest and 

innovative collections at the 8th Edition of Fibres & Yarns Expo which is 

scheduled to take place in Mumbai from 11 th to 13th April 2013. Over 

8000 visitors are expected to attend the 3-day show. 



The theme for Fibres & Yarns 2013 is ‘Preserving the Past – Ensuring the 

Future’. Leading specialty fibers and yarns manufacturers, from India and 

abroad, will be display: Lycra Yarn; Silver Yarn; Soyabean, Milk and Bamboo 

fibers (From China); Nylon Micro fibers; Modal and Tencel Fibers; Fire 

Retardant Viscose; Hi-tech Polyester fibers and filaments for functional fabrics; 

Pure Silk, Linen and Jute Yarns. The largest collection of Fancy Yarns for woven 

and knit wears will also be displayed by prominent Indian and Foreign 

Exhibitors. 

The aim of the exposition is to bring different types of fiber and yarn 

manufacturers on one platform where weavers, knitters and garment brand 

managers get an opportunity to have a look at the latest and specialty yarn 

collections for conversion into innovative fabrics and garments. 

It is a fact that fashion starts with the selection of the right raw materials. And in 

case of textile and clothing, fibres and yarns are the most important raw 

materials which are converted into the final garment or home textiles. The 

forthcoming event has been scheduled at a time when the industry is planning its 

production prorgammes for the coming seasons ahead and the Fibers & Yarns 

Expo gives them an opportunity, not only to see the yarns but also have the 

fabric samples of the displayed yarns and fibers. Sourcing of the yarns, thus 

becomes handy for the visitors and they can commit their requirements directly 

to the manufacturer. 

(Source Tecoya Trend, Apr 08, 2013) 

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HOME 

Indore: Proposed Textile Park expected to be a hit among manufactureres 

Indore: Close to 500 textile manufacturers including some leading 

manufacturers of the region, are expected to set up their base at the proposed 

Textile Park. The park will be set up on 55-acre land in Betma. 

MP Garments' Manufacturers Association secretary, Ashish Nigam said that 

Audyogik Kendar Vikas Nigam (AKVN) Indore has approved the land allotment 

recently. 



Now association would hold a meeting for discussing allotment strategy, said 

Nigam adding that the association plans to persuade some leading 

manufacturers of the region for setting up base at the park so that other smaller 

manufacturers are encouraged for doing the same. 

"The association is already having discussions with some leading 

manufacturers," said Nigam. 

Textile manufacturers are long awaiting commencement of Textile Park in the 

city. 

The association also had got an approval for the Textile Park project under a 

scheme from Ministry of Textiles. However, the proposal was gathering dust for 

want of necessary land allotment from the state government. 

Neighbouring states like Maharashtra and Gujarat already have established such 

textile parks. 

AKVN, Indore has recently shown 55 acre land earmarked for this project to 

Indore Readymade Garments Manufacturers Association. 

There are around 2,200 big and small garment manufacturing units in Indore. 

Most of these units are functioning from cramped localities of Rajwada and 

nearby areas. 

Total 220 plots are there in Readymade Park developed years ago in 

Pardeshipura and 193 units function from the premises. 

Several manufacturers still keep making rounds at Audyogik Kendar Vikas 

Nigam for getting land allotments and as many as 47 applications are pending 

with the corporation. 

(Source daily.bhaskar.com, Apr 08, 2013) 

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HOME 



Textile Ministry urged to allow duty free import of yarn 

Knitwear exporters have blamed yarn manufacturers of hoarding stock and using 

the present situation to their advantage. 

Perturbed with the turn of event since the beginning of March, exporters in this 

knitwear hub said “yarn manufacturers have stopped delivery since March 5, 

albeit unofficially, with a view to hoard supply and create artificial demand. This 

is affecting our production schedule, particularly because the orders have started 

to flow in since January. There is also an abnormal increase in the rate of yarn 

and the mill sector is not prepared to come to the table for talks.” 

Recapping the scenario, an exporter explained: “Cotton was ruling at Rs 38,500 

a candy in October 2011. The 40s count yarn was then quoting Rs 211 a kg and 

the rate was maintained around that level up to February. 

On March 1 this year, cotton prices fell from the October 2011 level to Rs 37,500 

a candy. Yarn (40s count) on the other hand rose to Rs 235 a kg. There was a 

marginal increase in the price of the cotton on April 1 to Rs 38,800/candy, by 

which time, the yarn rate shot to Rs 248/kg. 

If you compare the Oct 2011 cotton price with the April1 price, the increase is just 

Rs 300 a quintal. Yarn rate on the other hand has risen by Rs 36. This is an 

abnormal increase,” the source said and pointed out that the Government had 

allowed duty free import of cotton in the last six-seven months. 

“The mill sector has imported nearly 21 lakh bales of cotton – duty free, at rates 

lower compared with the domestic rate,” allege exporters. 

Unhealthy competition 

Calling this an unhealthy competition and one that would hit – both the mill 

sector and the downstream garment sector hard, Tirupur Exporters’ Association 

President A. Sakthivel said that the association has sought the intervention of the 

Textile Ministry in this regard. 

“We are unable to renegotiate the price with the buyer, as the contracts have 

been finalised. How can we manage when the yarn price shoots up from Rs 211 to 

Rs 248 and yarn deliveries stopped abruptly?’ he asked. 

Stating that the sector was prepared for some increase, say up to Rs 225-227/kg 

of yarn, he said, “We can actually resolve this issue if only the mill sector is 

prepared to talk to us. The situation is affecting not just the knitwear exporters 

but the powerloom and made-up sectors as well,” he added. 



The association, meanwhile, has appealed to the Textile Ministry to allow duty 

free import of yarn against export. 

(Source Business Line, Apr 08, 2013) 

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HOME 

Indian textile sector keen to explore emerging markets 

Indian textile and garment manufacturers are eyeing on emerging markets, 

including South America, Japan, Australia, New Zealand and Africa, for exports. 

According to industry representatives, Indian textile sector witnessed a negative 

growth mainly due to decline in clothing exports in 2012-13. However, exports to 

non-traditional markets recorded positive growth during this period and the 

textile and apparel makers expect the growth to continue in the current fiscal 

year. 

Speaking to fibre2fashion, secretary of Confederation of Indian Textile Industry 

(CITI), Mr. DK Nair said, “Last fiscal year may have ended with a negative 

growth in exports of textiles, basically because of the decline in garment exports. 

But now the demand for our garments has started improving in the traditional 

markets and exports to some new markets have also started growing. Thus, our 

exports of textiles during 2013-14 are expected to register a significant positive 

growth.” 

“There is also a perceptible improvement in production and domestic demand 

for all textile products,” he adds. 

When asked about shifting focus to emerging markets, he says, “The focus needs 

to be on the traditional markets, since global consumption of textile products is 

substantially in our traditional markets. Emerging markets in Latin America, 

Africa and South East Asia including Japan are potential areas for improving our 

export of garments. For non-apparel textiles, Asia and Europe will remain the 

major markets.” 

During the 11 months of the last fiscal year, clothing sector recorded a shortfall in 

exports by 8 percent and declined to US$ 11.5 billion, compared to US$ 14 billion 

worth of garment exports made in the year 2011-12. 

Mr. Rahul Mehta, president of Clothing Manufacturers Association of India 

(CMAI), says, “I see a slight improvement in the exports this year since the US 

economy is showing signs of some recovery and efforts of the industry to 

diversify into non-traditional markets will start bearing some fruits.” 



Some of the emerging markets being focused by the textile and apparel makers 

for last few years include South America, Japan, Australia and New Zealand. 

“Entry into new markets is never easy and it is a long-term exercise. But 

hopefully, last few years’ efforts will start showing results this fiscal year,” Mr. 

Mehta opines. 

Last month, chairman of Apparel Export Promotion Council (AEPC), Mr. A 

Sakthivel proposed to the Union Minister for Commerce, Industry & Textiles Mr. 

Anand Sharma to increase duty credit scrip from the present 3-4 percent to 5 

percent for the non- traditional markets to reduce the dependency on the US and 

the EU. 


Cotton continues winning spree 

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HOME 

Cotton prices on MCX posted gains for the sixth consecutive month in March 

with a rise of around 2.3 per cent and a rally of around 15 per cent in the first 

quarter of 2013. Rising demand expectations from China and lower arrivals in 

the local markets acted as a supportive factor for prices. However, in the end of 

March, prices came under pressure as investors were worried over fibre sale by 

the world’s top two producers India and China. But, the Indian government did 

not release stocks, while China released less quantity than expected. This led 

cotton prices to once again move in upward. 

MCX cotton April contract, which rose almost 12 per cent from its lows of 

February, is trading at around Rs 19,000 per bale (1 bale=170 kg). In the 

international markets, cotton prices touched an 11-month high of 93.93 cents per 

pound in March and are trading around 88.20 cents per pound at present. 

Lower supplies in the domestic markets and rising cotton prices have caused 

concerns for the textile industry, which is demanding government to direct 

Cotton Corporation of India (CCI) and National Agricultural Cooperative 

Marketing Federation of India (Nafed) to offload the cotton stock to domestic 

mills. However, the agriculture ministry is opposing the same as offloading 

stocks may drag down prices their support prices. 

According to Cotton Advisory Board’s (CAB) latest estimates, domestic cotton 

production is pegged 330 lakh bales for 2012-13 season (October-September), 

down 7 per cent from the previous year’s estimates of 355 lakh bales. Cotton 



prices may trade with upward bias on account of strong demand in the domestic 

markets and comparatively lower supplies. Further, firm international markets 

may also support domestic cotton prices, said Vedika Narvekar senior research 

analyst commodities at Angel Broking. 

In the short term, cotton prices on the domestic platform are expected to recover 

from recent lows and to trade higher as expectations of good export demand 

from Pakistan, Bangladesh and China in the coming weeks may support prices, 

said Pallavi Munankar, research analyst at Geojit Comtrade. In addition to this, 

lower arrivals in the markets will also lead to further rise in prices. Moreover, 

less than expected release from China and forecast of lower acreage in the US 

report where the country’s cotton planting intentions were reported at a fouryear 

low will also help further upside in fibre prices. However, weak global 

market sentiments may cap some gains in prices, she added. 

According to Nalini Rao, analyst at India Infoline: Technically, prices of MCX 

cotton have crucial support around Rs 18,500/bale each bales weighs 170 kg. On 

the higher side resistance is likely to be seen at Rs 19,500/bale. If, prices 

consistently trade above the Rs 19,500/bale an upside move towards Rs 20,100- 

21,000/bale might be seen. On the NCDEX April 2013 cotton contract might 

observe strong support around Rs 850/20kg and resistance may be seen at Rs 

1,021/20 kg. zz 

(Source cottonyarnmarket - Apr 07, 2013) 

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