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News & press Release
Govt may allow further cotton export
Date: 24th may 2011
Following the sharp drop in prices of cotton in the past couple of months, the Union government is reviewing the commodity’s export policy.
It had capped export for the current year at 5.5 million bales (170 kg). The industry wants export, given the low domestic demand and the resulting drop in prices. A delegation of the Gujarat Cotton Ginners Association (GCGA) that met the Union finance minister, textile minister and political secretary to the Congress party president earlier this week were told the Cotton Advisory Board would examine the situation.
Following this reason for hope, prices in the Mumbai market rose in the past two days. Prices of the benchmark Shankar-6 variety went up from Rs 43,000 per candy (356 kg) to Rs 45,000.
GCGA president Dilipbhai Patel said textile Minister Dayanidhi Maran said the CAB would meet next week. “This process may take about three weeks and by that time the monsoon would arrive. So, we explained to Ahmed Patel, political secretary to the Congress chief Sonia Gandhi (and who’s from Gujarat) that the decision should be taken in five-seven days, else it will not be useful. He indicated for a positive result in a week’s time,” said the GCGA head.
According to the president of Ginners Association of Punjab, Bhagwan Bansal, about 4.5 million bales are estimated to be with traders, ginners and exporters and another two million bales of raw cotton are lying unsold with farmers in Gujarat, Maharashtra and Madhya Pradesh. “So, even if an additional quota of 1.5 million bales is allowed, we would have sufficient stocks,” he said.
Room is needed, emphasise for fresh crop arrivals, to commence in September/October. In the absence of corrective measures, prices would further crash due to excess supplies, said a cotton trader. He added prices in the international market are not as lucrative as last year but it is still viable to export. With spinning mills planning to cut output by a third from Tuesday (they are closed on Monday in protest at unfavourable government policies), there may be a further drop in demand for cotton.
Ginners and traders are using the argument that the farmer would be hit if prices and demand continue to sag. Said Dhiren Shah, president of the Cotton Association of India: “Cotton acreage, which has seen a rising trend in India in recent years, will receive a setback if farmers do not receive fair prices.” Global cotton prices are 30 per cent higher compared to prices prevailing in the country and farmers will soon have to take a call on sowing, Shah sai. Adding: “If exports are not allowed, huge carryover stock will result in further lowering of prices before the new crop comes.”
Cotton blooms on Govt's tentative nod
Date: 21st may 2011
Rajkot, May 20: The Centre's assurance to the delegation from Saurashtra Ginners Association that 15 lakh bales more would be allowed for exports lifted cotton price by about Rs 2,000 a candy of 356 kg. Price increased from Rs 42,000-45,000 on Monday to Rs 46,000-47,000 on Friday.
B-grade cotton traded at Rs 35,000-40,000 a candy in Gujarat. Price of raw cotton has also increased by Rs 50 to Rs 950-1,000 for 20 kg. In Gujarat, 7000-8000 bales arrived in Gujarat, and 25,000 bales arrived in the rest of the country.
At the meeting of the delegates from the association with Ministers and leaders in Delhi, the ginners were assured their demands would be met after the Government discussed the issue with the Cotton Advisory Board. However, ginners in Gujarat have continued their indefinite strike, waiting till the Government orders exports.
A Rajkot-based cotton broker said, “The news about the meeting on cotton exports has lifted the price. There were some new inquires but few were selling.”
Prices are not expected to fall below Rs 52,000 a candy in the future as ginners have enough stocks. According to the association, ginners in Gujarat have 18-20 lakh bales of unsold stocks.
Exporters to attend Las Vegas fair
Date: 19th may 2011
Tirupur: The Apparel Export Promotion Council (AEPC) will take a textile delegation to participate in the ‘Magic (sourcing zone) Las Vegas Fair' at Las Vegas in United States later this year.
AEPC senior director D.G. Reddy said that the Council had reserved an exclusive India Pavilion at the fair, scheduled to be held for four days from August 21, so as to give the textile exporters from the country an opportunity to exhibit their niche products and thereby, increase their business in the United States market.
“Since the booths at the India Pavilion are limited, the exporters for the entourage will be selected on a first-cum-first-served basis,” he added.
The exporters should register their names with the AEPC before May 20 evening. The cost per booth of 9 sq m in size was fixed at Rs. 1.35 lakh. “We will give a discount of Rs 10,000 to those exporters who pay their entire participation charges before May 20,” Mr Reddy said. Details Interested exporters could contact the AEPC's regional office at Tirupur either in person or phone: 0421-2232631. 19
Pakistan announces textile technology upgradation scheme ...
Date: 13th may 2011
A technology upgradation scheme to support SMEs as well as big players in the textile sector is being introduced in Pakistan from July 1.
The announcement was made by Shahid Rashid, Federal Secretary for Textiles, Govt. of Pakistan, while addressing a meeting at Multan Chamber of Commerce and Industry.
Under the scheme, SMEs would be eligible for grants up to Rs. 10 million per unit. Bigger industries, on the other hand, would be eligible for five per cent relief in mark up.
The government has also planned garment city projects in Karachi, Lahore and Faisalabad, besides a Pakistan textile city.
Of these, the Faisalabad garment city has already started functioning. Lahore garment city being built at the Sundar Industrial Estate is in the final stage of completion while the work on Karachi garment city is yet to begin on the 300 acre land acquired for the purpose.
In these garment cities, besides constructing the buildings, the government provides such additional support that may enable the private sector to get the facilities on lease to operate business with low investment.
The Pakistan textile city project would be spread over 12.5 acres and will also have all the facilities that are provided to the garment cities.
The Federal Secretary also announced that a draft of the proposed Textile Industry (Development, Promotion and Standards) law is ready. He further added that a feedback is being sought from the chambers of commerce and industry on the draft proposal before it goes to the Parliament.
Once the law is passed, standards would be fixed for textile products and any violation would invite penalties.
The government is also considering setting up a board to address problems related to the textile sector. The board having equal representation from public and private sectors would also deliberate on issues relating to incentives to the textile sector.
There is also a proposal to appoint a textile commissioner. However, the Secretary for Textiles would have the power to hear appeals against the decisions of the textile commissioner.
In spite of the textile sector facing problems due to energy crisis, high mark up rates, lack of infrastructure facilities and unavailability of trained work force, the fiscal 2010-11 target of US$ 12 billion is expected to be achieved.