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IBTEX No. 063 of 2013 APRIL 16, 2013

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INTERNATIONAL NEWS

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1 Pakistan: Textile sector - where is the value addition

2 Pakistan : Towel exports decline on back of power, gas cuts: TMA chief

3 China plans for textile raw materials with coal: Report

4 Vietnamese textile sector will further grow in Q2: Vinatex

5 Mexican textile sector to benefit from SAT certification

NATIONAL NEWS

1 There is a New Oil in Jasuben’s Frying Pan

Cottonseed oil rules the kitchens of Gujarat as cheapest cooking oil

2 India, EU talks on FTA expected to make headway

3 India-EU trade pact talks inconclusive

4 Textile Ministry seeks relief for labor intensive sector in FTP

5 Mills to spin a fine yarn for the March quarter

6 India-Pak trade at its peak, exports see a 15% jump

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www.texprocil.org.in

INTERNATIONAL NEWS Textile sector - where is the value addition

Cloaked by the protectionist policies extended regime after regime, Pakistans textile industry is a coddled child. And the outgoing government has done more than its share to fuel the industrys incompetency during its reign. Despite the fact that the government provided a helping hand to the textile industry on everything from agricultural inputs to the provision of gas at the cost of holding other industries hostage, the sectors inherent inefficiencies coupled with the energy crises debacle and double-digit inflation have pushed up the prices of Pakistani textiles to uncompetitive highs.

The last five years have consequently seen softening external demand for the countrys textiles, making closures and dwindling capacity utilisation the norm. During the PPP-led coalition, the labour and capital transfer as a result of Pakistani textile industries shifting shop to Bangladesh is another blow that needs special mention, and not just because of the obvious effect it had on the local industry.

One justification that has been extended has been that Bangladesh - with its Preferential Trade Agreements with major importing nations which allow it non-tariff access to these markets - was the right place to be at. While there may be some truth to it, if that were the biggest reason of this outflow, India and China, the biggest competitors within the region would have lost looms to Bangladesh too. And since that did not happen, the capital flight hinges unflinchingly on the outgoing governments lack of ability to provide a cohesive environment that could direct the sectors growth in the right direction.

Another important function contributing to the sectors underperformance these past few years has been the continued lack of investments into new machinery, and technology, which has blighted the export competitiveness of the countrys textile. And it has worsened over the course of the last few years as a result of high interest rates of bank financing which has increasingly hindered up gradation. During the current governments reign, Pakistan has been able to add only about

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2.6 million spindles and over 3,100 shuttle-less looms, taking the total installed spindles to 11.4 million and shuttle-less looms to 24,000, whereas, during 2006-11, India added 15.33 million spindles and more than 30,000 shuttle-less looms to its textile sector, taking the total to 41.27 million spindles and around 38,000 shuttle-less looms.

The outgoing government also did little during its reign to devise a cohesive plan to bring the value-added sector - which is made up of an unorganised and fragmented mass of units- up to par.

Despite a commendable initiative to devise the first ever Textile Policy in the history of the country, the last few years have seen the countrys textile make little head-way up the value addition ladder. As a result, the export of value-added made-ups- which should technically be contributing the plumpest share of foreign exchange earnings to the exchequer- have been in a steady decline. And while export in absolute terms have climbed up during the 12 months, they have been largely at the hands of exorbitant amounts of yarn dispatches to China- which altogether speaks volumes about the foresight of both policy-makers and industry players who sit jubilant on the pile of dispatches sent out to countries like China which are now choosing to add value to its textiles from the spinning stage forward.

For a sector that had the capacity to get up and climb higher even in the post quota-era of global textile trade, the last four years performance in a nutshell is a tale riddled with a myriad of problems. And the penchant for the textile lobby to blame the government for all its woes, while not completely justified is not entirely baseless either.

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Published in Brecorder, April 11th, 2013

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Pakistan : Towel exports decline on back of power, gas cuts: TMA chief

A weakening domestic economy, poor law and order situation, political uncertainty and Pakistan's tarnished image abroad all resulted in the decline of the country's exports, especially its textile share on the world market. "Cuts in gas and electricity supply have badly affected towel manufacturing, resulting in a

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downturn of its export," says Chairman of Towel Manufacturers Association of Pakistan (TMA), Mehtabuddin Chawla.

During a discussion with newsmen at Karachi Press Club on Saturday, the leading exporter believed that the weakness of the local currency against US dollar could be used as an opportunity if the government increased its support to industries. "We can easily double the quantum of total exports in two years, notwithstanding the weakness of Pakistani rupee against the US dollar, if the government ensures uninterrupted supplies of gas, electricity and water to manufacturing units," he maintained.

Predicting that towel exports would stagnate this fiscal year, he said that his prognosis was based on a number of reasons, adding that towel exports would not pick up this year too because of a continued decline in manufacturing". He claimed that the towel industry received huge buying orders from world markets this year but several manufacturing units declined to take up lucrative offers because of a lack of capacity. "I too have refused several foreign orders because I cannot deliver the orders on time because of manufacturing constraints," he insisted.

Highlighting the growth of Bangladesh's textile exports, the TMA chairman said: "The country (Bangladesh) is a non-cotton producing country, but helped its textile sector touch $20 billion export mark," he says. Pakistan, he said, was a cotton-producing nation with a surplus but "is unable to ensure growth of its textile export". He said: "Even the towel exports may not go beyond $1.4 billion this fiscal year." Chawla estimated that the country's total textile export might decline to $12 billion this fiscal year, down from $14 billion just a year ago because of electricity and gas outages. "Power and gas cuts have plagued the manufacturing process," he says.

Urging the government to chalk out a rational plan to support national economy, he suggested that a policy of rapid industrialisation would boost prospects of employment. "Once industries start to be set up, 65 percent of the country's youth will be able to find jobs at home and support the domestic economy, besides boosting export sectors' global market share," he maintained.

According to him, the government had failed to meet conditions laid down in WTO deal in 1995 with a 10-year deadline for the country to improve its industrial growth to compete without a quota regime, Chawla said. "If Pakistan's government had worked on meeting WTO conditions before the abolishment of the quota regime and free market trade, our exports would now have been far

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higher," he maintained, insisting that the country failed to capitalise on a key opportunity. Similarly, he said, the country had so far been unable to take a full advantage of GSP regime offered by the EU to Pakistan, because key export-oriented sectors failed to find power and gas supplies to increase output.

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Published in Brecorder, April 14th, 2013

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China plans for textile raw materials with coal: Report

China, the largest textile producing country, is planning to develop textile raw materials, such as olefin and polyester, using coal in order to reduce its dependence on imported petroleum, according to South Korea- based recent report by LG Economic Research Institute.

The research report ‘The Commercialization of New Processes in China Is Leading to a Revival of Coal Chemistry’ states that the country is the largest producer of coal and it has made more investments in its research on coal chemical technology recently which will increase high quality coal using facilities in the country, the hankyoreh reported.

Over the last 30 years, several countries have done research and development on producing chemical products with coal and as the coal products could create more pollution than petroleum products it had less economic possibility since.

Besides the negative impact on coal-based chemical products, the main reasons for China’s research on the subject are to boost the country’s industrial growth by utilizing the rich coal deposits and by reducing dependence on imported petroleum and to achieve the country’s goal of energy security. China is planning to replace 20 percent of its petrochemical products including olefin with coal by 2016, the report stated.

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Olefin is a synthetic fiber made from a polyolefin, such as polypropylene or polyethylene and it is used to manufacture sports & active wear, socks, thermal innerwear and lining fabrics.

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Published in Fibre2fashion, April 15th, 2013

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Vietnamese textile sector will further grow in Q2: Vinatex

Vietnamese textile industry will maintain its growth momentum in second quarter of the current year, according to the Vietnam Textile and Garment Group (Vinatex).

Vietnamese textile and garment exports to the US, Japan and South Korea have grown by more than 25 percent year-on-year, during the first quarter of 2013, while exports to the EU increased by 13 percent year-on-year, Vinatex deputy general director Le Tien Truong said in an online conference of the Ministry of Industry and Trade (MOIT).

The Vietnamese textile and clothing industry has received strong orders from top apparel and textile importers, and is likely to grow by more than 20 percent during the second quarter, he said.

As a result of good production and orders, income of workers in the garment and textile sector would increase, Mr. Truong added.

In the first quarter, Vinatex’s production of textile and clothing rose by 21 percent due to sharp increase in orders, plus the firm’s better preparedness for more production and exports.

Vinatex’s inventory fell by 4 percent year-on-year at the end of the first quarter, which also provides impetus for further growth in the second quarter.

Meanwhile, consumption has declined in Vietnam’s domestic market and hence, nearly all companies in the sector would have to count on their exports to offset the declining domestic sales.

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MOIT requested Vinatex to strengthen trade promotion activities in domestic market, support innovative production techniques, and participate in the “Buy Vietnamese Goods” campaign to boost domestic consumption of Vietnamese textiles and garments.

According to Vietnam Textile and Apparel Association (VITAS), exports of garments and textiles from Vietnam increased by 16 percent year-on-year to US$ 4.2 billion, during the first quarter of the current year.

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Mexican textile sector to benefit from SAT certification

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NATIONAL NEWS There is a New Oil in Jasuben’s Frying Pan

Cottonseed oil rules the kitchens of Gujarat as cheapest cooking oil

The BT cotton revolution, which swept India's countryside, is now doubling up as the source of the country's cheapest cooking oil. And in Narendra Modi's motherland, the Jasubens are loving it. Cottonseed or 'kapasiya' oil is ruling in the kitchens of Gujarat, the largest cotton-growing state. One out of every two bottles of oil consumed in Gujarat contains cottonseed oil.

"Earlier, we used around three litres of cottonseed oil in our monthly consumption of 15 litres. Now we buy 10 litres of cottonseed oil and the rest is sunflower oil," says Ratnaben Shah, a housewife in Rajkot. With their love for snacks and fried food, Gujaratis are the largest consumers of cooking oil in India.

"Cottonseed oil is the best homegrown oil for frying because the food doesn't develop an odour for many weeks," says Sandeep Bajoria, an industry consultant.

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Of the 11 lakh tonnes of cottonseed oil produced in India annually, almost half is consumed by Gujarat alone, says Govindbhai Patel of GGN Research, a consultancy. He believes demand can potentially grow by 10% annually, if the cotton crop keeps pace. "Cotton is an extremely versatile crop because it provides fibre, edible oil and animal feed. It is also the only crop whose production has doubled in the past few years," adds Bajoria.

HEATING UP

This popularity has opened the perfect business opportunity for companies such as Adani Wilmar whose Fortune is the biggest national name in the branded oil market. "Cottonseed is the No. 1 oil in Gujarat. We are aggressively promoting it as a good quality refined oil if you don't want to downtrade to palmolein," says Angshu Mallick, chief operations officer at the Ahmedabad-based Adani Wilmar.

Fortune cottonseed oil, which sells 2,000 tonnes in Gujarat every month, trails market leader Tirupati, a brand owned by NK Proteins.

Mallick says the market is clearly divided into cottonseed oil for domestic cooking and palm oil, which has better cost economics for industrial-scale frying of snacks.

Gujarat is also soaking up supply from Madhya Pradesh, Maharashtra and Andhra Pradesh. Although cottonseed oil is popular in other cotton-growing states too, it has a special affinity with Gujarat.

Gujaratis living in Africa were first to acquire a taste for cottonseed oil. When they fled Uganda in 1971, they brought back with them a demand for kapasiya oil. In those days, cottonseed and its oil was fed to cattle because it wasn't considered fit for human consumption and Gujaratis continued to favour groundnut oil.

Ten years ago, Gujarati entrepreneur Nimish Patel, owner of NK Proteins, decided to exploit latent demand by launching the 'Maruti' brand. The timing was fortuitous as groundnut oil was getting bad press for being blended with palmolein.

The introduction of BT cotton in 2002 and a six-fold jump in cotton production within a few years boosted supply of oil and gave a further fillip to the market. "By now, cottonseed oil had become well accepted in Gujarati households as healthy and affordable oil," says Mallick.

EDGING AHEAD

While the peak marketing season for cotton in India is November to March, cottonseed is available throughout the year. Ample availability pulled down prices and ignited demand. Low prices give cottonseed oil a distinct edge over

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groundnut as well as mustard, soya and sunflower, the other oilseeds grown in India.

"India has always been a market of highly price-sensitive consumers. Even the difference of a few rupees is enough for people to switch their cooking medium. Other than palmolein, cottonseed oil is the cheapest in India," says Mallick.

An added advantage is cottonseed oil has zero trans-fat and is heart-friendly.

In the US, the largest homegrown vegetable oil is back on the culinary map. Ever since New York City announced in 2006 it would ban trans-fats from restaurants, demand has doubled, says National Cottonseed Association. That growth is expected to continue with the recent ban in California and more to come.

While cottonseed oil is rising in supply and acceptability, groundnut oil is facing a crisis. Till a decade ago, a large proportion of groundnut crop in India was crushed for oil. Today, close to 95% of the harvest is eaten as a snack in India and overseas. That leaves mills with barely enough nuts to produce 1.20 lakh tonnes of groundnut oil in a year. The production of cottonseed oil this year is 10 times that.

The upshot of such popularity is that cotton is not just about the fibre value per acre anymore. A product once sold to help offset ginning costs is now a viable revenue stream. "Ginners pay farmers for cotton after factoring in earnings from all these products. So farmers too benefit from the value chain," says Bajoria.

As always, what Gujarat does today, it wants the nation to do tomorrow. "We are soon going to launch cottonseed oil in Maharashtra," says Mallick.

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Published in Economic Times- April 14th, 2013.

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India, EU talks on FTA expected to make headway

Crucial talks between India and the European Union on their proposed free trade agreement (FTA) got under way in Brussels amidst new optimism that a deal could be reached before the end of 2013. Union Commerce and Industry Minister Anand Sharma is scheduled to meet EU trade commissioner

Karel De Gucht and other top officials later in the day in an attempt to take forward the six-year long negotiations. The talks are currently bogged down in disputes over EU demands to raise the equity cap on FDI in India's insurance sector, reducing the tariffs on imports of automobiles, protection of intellectual property rights (IPR) and other issues.

India has been seeking greater access for its services sector in the 27-nation EU and it is also concerned that the EU demands for stricter implementation of the

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IPR rules might affect the country's generic industry or force the country to amend its patent law.

India's demands for granting data secure status by the EU and incorporating an investment protection clause in the FTA are expected to figure in the discussions here on Monday. The EU has so far refused to give India data secure status and this has prevented the flow of sensitive data, including those information vital for India's IT services industry.

New hopes for a successful conclusion of the negotiations between India and its largest trading partner were raised after the EU's largest economy Germany last week voiced its support for an early signing of the FTA. German Chancellor Angela Merkel and Minister for Economy and Technology Philipp Roesler have spoken in favour of signing of the FTA before the end of this year.

"An early signing of the FTA, if possible this year itself, will be in the interest of both countries," Roesler told a meeting with Sharma ahead of the official opening of the second inter-governmental consultations between the two countries in Berlin. A successful trade pact between India and the EU will be an important step towards enhancing bilateral economic cooperation and trade, he said.

However, Roesler raised German industry's concerns that patent protection is no longer sufficiently guaranteed in India and stressed that "dependable conditions" are necessary for investments by German companies in India.

Chancellor Merkel had said after the recent two-day consultations jointly chaired with Prime Minister Manmohan Singh that the insurance cap is still an important issue. "We have not yet overcome all the difficulties," but the two countries are now in a position to reach an agreement, she said.

In a joint statement at the conclusion of Indian Prime Minister’s three-day visit last week, the two leaders expressed their hope for a broad-based, ambitious and balanced FTA in 2013.

The remaining sticking points in the India-EU trade negotiations after 15 rounds of negotiations include the EU demands that India should raise its equity cap on FDI by foreign insurance companies and banks from 26 to 49 per cent and India should reduce its import duties on automobiles. Not much progress on these contentious issues at the last round of negotiations could be made between the chief negotiators of the two sides held last month in Brussels.

A comprehensive bilateral trade and investment agreement (BTIA) between India and the EU is expected to give a big boost to the trade between the two

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sides and to enhance European investments in India. The twoway trade between India and the EU crossed 91 billion dollars in 2010-2011. Medical relief agencies and human rights organisations have raised concern that the EU might seek changes to the Indian patent law.

This is in the wake of the recent Supreme Court verdict rejecting the patent right of Swiss pharmaceutical company Novartis for its cancer drug Glivec and the Intellectual Property Appellate Board (IPAB) ruling early last month upholding the compulsory licence issued by the Indian Patent Office to domestic drug-maker Natco Pharma to manufacture and sell a generic copy of German drug company Bayer’s patented cancer drug Nexavar. The EU had denied that it is seeking any changes to India’s laws on intellectual property rights and claimed that it is demanding India nothing more than to implement its commitments under the trade related intellectual property rights (TRIPS) agreement of the World Trade Organisation.

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Published in Hindustan Times- April 14th, 2013.

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India-EU trade pact talks inconclusive

A meeting between Commerce & Industry and Textiles Minister Anand Sharma and European Union (EU) trade commissioner Karel de Gucht in Brussels on Monday remained inconclusive, with both sides sticking to their respective positions. India clearly told the EU it would "not accept" any further concession, as far as the automobile sector was concerned. The EU, especially Germany, had demanded an indefinite tariff rate quota on the import of cars from Europe, as well as zero duty on all cars, eventually. It also sought the Indian market be opened further, a senior official told Business Standard. At the meeting, both ministers reviewed the progress in talks for an ambitious free trade agreement (FTA). Today's meeting comes within days of Prime Minister Manmohan Singh and German Chancellor Angela Merkel agreeing to a "successful outcome".

Talks on the FTA began in 2007.

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The official said India had already offered "much more" to EU compared to what it had offered to Japan and Korea, with whom it had similar agreements. "Now, EU has to narrow its ambitions if it truly wants the deal with India. We have given the best we can, much better than what we have offered to anybody so far, in the automobile sector and in other areas, too. But they seem to be asking for more and more concessions," the official said.

India once again asked EU to remove the 20 per cent threshold relating to the safeguard clause introduced under the Mode-4 quota of services trade. This relates to free movement of Indian professionals under a relaxed visa regime. However, it seemed EU didn't agree to India's demand.

"This provision will significantly reduce the benefits India can enjoy. With such a provision, it becomes meaningless for India to negotiate on services," the official said. Under services trade, India also expressed "severe concern" on EU's denial to recognise it as a 'data-secure' nation, without which it wouldn't be able to gain substantial market access for its information technology industry. According to EU law, European countries engaged in outsourcing business with countries not certified as 'data-secure' have to follow stringent contractual obligations that raise operating costs and affect competitiveness.

An official statement on the meeting is expected to be released tomorrow. So far, 16 rounds of negotiations on the FTA have been held. The last round was held in Brussels on March 18-22.

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Published in Business Standard- April 16th, 2013.

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Textile Ministry seeks relief for labor intensive sector in FTP

The Ministry of Textiles has sought for some relief for the labour-intensive sectors like handicrafts, leather, carpet, handloom and textiles, in the Foreign Trade Policy (FTP), to be announced on April 18, Union Minister of State for Petroleum, Natural Gas and Textiles Panabaka Lakshmi today told media.

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"Yes...we have sent the recommendations to the commerce ministry," said minister after inaugurating the Home Expo India 2013 (HEI-2013) at Expo Mart in Greater Noida. However she denies giving the details further. She said, "FTP is now about to come."

The industry experts are expecting that the Government will increase the interest subvention rate from 2 percent to 5 percent and should extend the interest subvention scheme for at least five years for the labour intensive sector. Lakshmi was speaking to media on the sidelines of the second edition of Asia's largest confluence for home and lifestyle products in the four-day-long highly specialized and product-segmented mega triple show Home Expo India. Secretary Textiles Zohra Chatterji and others were also present at the occasion. "Home Expo India brings in manufactures, producers and exporters of home decorative, home furnishing and home furniture who are by and large from cottage, small and medium scale industry. These product specific shows with such export potential enhance marketing opportunities, target specific buyers and spur growth in exports," Chatterji told media.

Being organized by the Export Promotion Council for Handicrafts (EPCH), Home Expo India 2013 will have three consecutive shows - Indian Houseware and Decorative Show (IHDS), Indian Furnishings, Floorings and Textiles Show (IFFTEX) and Indian Furniture and Accessories Show (IFAS) - under one roof at the same time making it a One-Stop Expo for every visitor, from April 15-18.

This will be one of leading business-to-business (B2B) show where a wide range of tableware, home textiles, kitchenware, houseware and bathroom accessories will be displayed at this exposition.

Home Expo India 2013 is expected to generate great business deals for direct import as also for tie- ups, collaborations, alliances and joint ventures for product development, product innovation and International sales. The Expo is expected to generate business worth Rs 600 crore, said EPCH official.

This event will showcase the finest artistic elements and craftsmanship in harmony with innovative designs and latest products. More than 400 exporters of woodcraft, furniture and other related products will display best of their products to enable a large number of overseas buyers including renowned international brands from across the globe offering them three premium sourcing opportunities under one roof.

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International buyers, leading manufacturers and exporters will share the same platform and will exchange various ideas related to this industry. The most important aspect of Home Expo India is the confirmation from large number of top buyers, buying houses, import houses, chain stores, boutique owners and interior decorators from leading markets like USA, European Union, Far East, Latin America, Central Asia and African continents to visit and source at this show, informed Babu Lal Dosi, President of Home Expo India 2013.

"The thrust in the international markets is now on product-segmented specialized trade shows rather than trade shows covering all product categories. Hence, there was need for Home Expo India. The emphasis laid by the Council is on making this show a wholesome with a 'Home Total' tag attached to it with the intention of making it a benchmark event for premium merchandise for a target market/buyers segment," said Rakesh Kumar, Executive Director, EPCH. The EPCH will lay special focus on specialties of select regions of India at this show. In this direction, there will be separate pavilions of products from North Eastern Region (NER) and J & K region.

North East will highlight cane and bamboo products and J&K will highlight walnut wood carving, crewel embroidery, shawls, handknotted carpets and rugs

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Published in SME Times- April 15th, 2013.

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Mills to spin a fine yarn for the March quarter

Amid the brouhaha over the sudden spurt in cotton prices in the last few weeks, yarn mills are poised to post a good performance for the March quarter. Cotton prices at the beginning of the season (October 2012) were about 17% lower than

the present level of Rs.39,000 per candy. A candy of cotton equals 355kg. Mills would, therefore, gain from low-cost inventory of cotton, the key raw material.

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More important is the comeback in demand for yarn in international and domestic markets. Yarn prices have shot up by nearly 22-25% in the past six

months, trading at around Rs.250 per kg. This implies better realization per unit sold. A combination of robust realization and low cost of raw material will help the sector improve profitability during the March quarter. Analysts are hopeful of a three to five percentage points improvement in operating margin of leading textile mills from the year-ago quarter.

In fact, mills have displayed a trend towards improving sales and profit margins in the last three quarters. Operating margins of Vardhman Textiles Ltd and Ambika Cotton Mills Ltd have jumped to around 18-20%. Some such as Precot Meridian Ltd, which was hit by high-cost cotton inventory, also fared well in the recent past.

The March quarter’s growth in both sales and profit could be on similar, or better, lines, given that the year-ago period saw the industry at the trough.

That said, investors are cautious on the outlook and not without reason. Cotton

prices have shot up from Rs.34,000 per candy to Rs.39,000 in the last two to three weeks. If this continues, it may bring down profit margins of the mills. Adding to the woes is the drop in yarn exports during March as Chinese demand was subdued. According to the Southern India Mills Association, cotton yarn exports scaled a record high in January at 117.143 million kg, after which they have lost momentum. Of course, southern mills, which account for nearly 45-47% of the all-India production, have hurdles such as power shortages that have kept utilization low.

But industry experts say this is a temporary phenomenon. Favourable employment data in the US and more favourable domestic consumption should hold up yarn prices. Cotton prices are unlikely to rise incessantly as the targeted 32.5-33 million bales ,as per the Cotton Advisory Board of India, is sufficient for the year vis-à-vis demand. Further, imports during the last few months are high given that landed price of imported cotton is lower than domestic prices. In a sense, this will also keep prices under check.

The sudden spurt in prices is on account of hoarding by agencies and traders, which has created an artificial scarcity of cotton. As this eases, prices should stabilize. Trouble will arise only if the current rate of robust cotton exports

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continues, creating a shortfall for domestic consumption, which may spike prices and hurt spinning mills.

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Published in Livemint- April 15th, 2013.

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Cotton wilts on slack offtake

Cotton prices fell on Monday as demand was slow from exporters and spinning mills.

According to market sources, currently local mills are active in the market.

Gujarat Sankar-6 cotton declined by Rs 200-300 to Rs 38,400-38,500 for a candy of 356 kg.

Kalyan cotton was quoted at Rs 28,500-29,000.

Kapas or raw cotton decreased by Rs 10 to Rs 870-997 for a maund 20 kg in Saurashtra, while Kadi delivery kapas stood at Rs 910-1,005.

About 22,000-23,000 bales arrived in Gujarat and around 75,000 bales arrived in India.

Cotton ready delivery quoted at Rs 4,050-4,140 a quintal in Punjab, Rs 4,020-4,030 in Haryana and Rs 4,020-4,030 in Rajasthan.

A Rajkot-based cotton broker said that local spinners were active in the markets but they were reluctant to buy in large quantity. Exporters were out of the market due to lack of fresh export orders. Traders were also worried about the impending sale by the Cotton Corporation of India.

CCI is likely to release around 4,00,000-5,00,000 bales for local mills in the coming days.

In its recent report on cotton, the Cotton Association of India noted that cotton exports have virtually come to standstill, while average daily arrivals continue at a pace of over 1,00,000 bales (each of 170 kg).

This is expected to create huge surplus cotton available in the country for the year 2012-13.

Total arrivals as on March 31 stood at 29.4 million bales so far.

http://www.thehindubusinessline.com/todays-paper/tp-agri-biz-and-commodity/cotton-wilts-on-slack-offtake/article4621027.ece

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Published in Business Line - April 16th, 2013.

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India-Pak trade at its peak, exports see a 15% jump

Despite tensions, India's exports to Pakistan increased by almost 15 per cent in 2012-13 even as exports to the rest of the world fell by 4 per cent. Imports from Pakistan too showed a rise, by 30 per cent. While India's exports to Pakistan added up to nearly $1.6 billion between April 2012-February 2013, up from $1.4 billion in the corresponding period last year, imports rose to $488 million from $375 million. A government official said these were the highest-ever figures for India-Pakistan trade. In the SAARC region, the growth rate as well as the absolute numbers are reaching the level of trade India has with Bangladesh and Sri Lanka. While India's exports to Bangladesh rose 35 per cent during the period, Sri Lanka saw a 21 per cent increase and Iran a 27 per cent increase. India exported raw cotton worth $270 million to Pakistan during the period, up by 313 per cent from last year. The export of man-made yarn increased by 110 per cent, plastic by 32 per cent, cotton yarns and fabrics by 222 per cent, petroleum by 608 per cent and pulses by 30 per cent. Similarly, import of gypsum from Pakistan increased by 957 per cent, raw cotton by 148 per cent and raw wool by 99 per cent. "The business delegations of the two countries have been talking to each other. The data shows that demand for intermediate goods has gone up. A lot of trade has also regularised after the dismantling of the positive list," said the official.

"The growing trade shows two things � the optimism between the two nations, and that trade is happening directly and not via other jurisdictions like the Middle East. Pakistan's promise to grant MFN status to India has propelled the growth further," said Abhijit Das, head of the centre for WTO studies, Indian

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Institute of Foreign Trade. Efforts to push trade between India and Pakistan began in 2004 but were put on hold after the 26/11 attack in 2008. The year 2011 saw the first visit by a Pakistani commerce minister to India in 35 years.

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Published in cottonyarnmarket - April 15th, 2013.

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news clippings · news clippings page 3 2.6 million spindles and over 3,100 shuttle-less looms,...

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