NEWS CLIPPINGS · Pakistan Cotton Yarn Export Market Prices Statistical Report 10 9 Cotton Prices Depressed by Record Stocks in Sight Weekly Report 11 NATIONAL NEWS 1 Nafed puts kharif

OCTOBER 16, 2012

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NEWS CLIPPINGS

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INTERNATIONAL NEWS

1 Hong Kong: 10 firms recognized for their dedication to organic cotton

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2 Hong Kong: Textile group praises efforts to increase organic cotton usage

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3 China breaks its previous world record in cotton production

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4 China to Deal with Mexico's WTO Complaint 5

5 China: Yarn Expo to debut product presentation in Nylon Zone

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6 Bangladesh: Plans common textile market for D-8 countries

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7 Vietnam: Apparel sector races to hit targets 8

8 Pakistan Cotton Yarn Export Market Prices Statistical Report

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9 Cotton Prices Depressed by Record Stocks in Sight Weekly Report

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NATIONAL NEWS

1 Nafed puts kharif oilseeds, pulses & cotton under watch 13

2 Textile Park remains a yarn 15

3 Andhra Pradesh CM directed the Handlooms and Textiles department to chalk out an action plan

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4 Indian spinning mills join hands to source cotton 20

5 Cotton rules flat on muted offtake by mills 21

6 96 bonded labourers rescued from Erode textile mill 22

OCTOBER 16, 2012


INTERNATIONAL NEWS

10 firms recognized for their dedication to organic cotton

Textile Exchange, a non-profit organization dedicated to accelerating

sustainable practices in the textile industry, presented ten companies with a

“Future Shaper” award in recognition for their dedication to organic cotton

and the overall sustainability of the textile industry. The ten brands and

retailers received the first-ever Future Shaper Awards during Textile

Exchange’s 10th anniversary celebration at the 2012 Sustainable Textiles

Conference in Hong Kong on 4 October, 2012.

The awards symbolize the collective efforts of everyone who helped establish

and grow Textile Exchange’s heritage and roots in organic textiles. The

companies who received a Future Shaper award are: Anvil Knitwear (USA),

C&A (Germany/Belgium), Dibella (Netherlands), Ethicus (India), Gossypium

(UK), H&M (Sweden), Hess natur (Germany), Nike (US), Patagonia (US) and

Veja (France).

The winning companies produce products ranging from sportswear to hotel

bed sheets and towels to cutting-edge fashion. Each company has increased

their use of organic cotton over the years and have aggressive goals for its

future use. The award winners share in the collective results of their work.

Increasing the demand for organic cotton results in reduced water use, the

elimination of artificial pesticides and fertilizers and improved health and

livelihoods for farmers.

OCTOBER 16, 2012


“The Future Shaper Awards symbolize the hard work and dedication of just

10 companies among hundreds who are making positive changes in the

textile industry. These brands and retailers are helping to drive the demand

for organic cotton. As a result, every step of the supply chain has benefited,”

said LaRhea Pepper, Managing Director for Textile Exchange.

The 10 Future Shapers are detailed in a unique book published to celebrate

the 10th anniversary of Textile Exchange. Packed with photographs and the

stories of the companies, it provides a lasting record of their achievements.

The Future Shapers book is available for $19.50 US (plus postage). The actual

award presented was an engraved glass jar containing two different types of

organic cotton from Peru and Turkey.

Textile Exchange

Fibre2fashion- Oct 08, 2012

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Textile group praises efforts to increase organic cotton usage

Apparel brands including H&M Hennes & Mauritz, Nike, Anvil Knitwear, Patagonia and Gossypium have been recognised for increasing their use of organic cotton.

Non-profit group Textile Exchange said their collective work has resulted in safer environments for cotton farmers and improved market access for organic cotton.

Textile Exchange said increasing the demand for organic cotton results in reduced water use, the elimination of artificial pesticides and fertilisers and improving the health of farmers.

OCTOBER 16, 2012


"These brands and retailers are helping to drive the demand for organic cotton. As a result, every step of the supply chain has benefited," said LaRhea Pepper, managing director of Textile Exchange.

The brands were given 'Future Shaper' awards at the Sustainable Textiles Conference in Hong Kong on 4 October.

Just style- Oct 15, 2012

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China breaks its previous world record in cotton production

Breaking its own cotton production milestone, China has set a new world record by harvesting 12,575 kg of seed cotton on a single hectare of land in northwest Xinjiang province, the official media reported today.

China's cotton production has been increased to almost eight times of its previous world record, which was over 100 kg per mu (1 hectare equals to 15 mu). "The output, 838.31 kg per mu has surpassed the former world record by over 100 kg per mu," Li Xueyuan, Deputy Director of the Cash Crop Research Institute under the Xinjiang Academy of Agricultural Sciences told state run Xinhua news agency.

The record was achieved on an experimental field in the Tarim Basin in southern Xinjiang through the use of new varieties of cotton and quantitative management methods, Li said.

Xinjiang, the largest cotton producer in China, is expected to reach 3.2 million tonnes in cotton output for 2012 on an area of 24.7 million mu, accounting for half of the national yield.

cottonyarnmarket – October 08, 2012

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OCTOBER 16, 2012


China to Deal with Mexico's WTO Complaint

MEXICO CITY -- Mexico requested formal talks with China at the World Trade Organization, charging that Chinese subsidies for its textiles and clothing industries violate WTO rules and have a significantly negative impact on Mexico, the Economy Ministry said Monday.

The ministry said in a press release that the Chinese government gives its textile producers with tax exemptions or reductions, with goods and services such as land, electricity, cotton and polyester at preferential rates, as well as donations and debt forgiveness.

Some of the benefits are conditioned to trade, such as exports or favoring domestic production over imports, which is prohibited under WTO rules, and others can be challenged by Mexico because they have hurt Mexico's interests, the ministry added.

Mexico's textiles industry competes with China in the U.S. market for imports.

If Mexico and China don't resolve their differences on the matter within 60 days, Mexico could request a WTO special group to resolve the case.

www.marketwatch.com – Oct 16, 2012

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Yarn Expo to debut product presentation in Nylon Zone

The remarkable increase of exhibitors, nearly 100 exhibitors from 11 countries and regions, an 80% from the previous year, proves that Yarn Expo is now at the right place and at the right time.

Yarn Expo Autumn will be held from 22 – 24 October, in over 3,000 sqm of exhibition space in Hall E6, at the Shanghai New International Expo Centre. It will take place parallel to Intertextile Shanghai Apparel Fabrics, Cinte Techtextil China and the China International Knitting Fair and for the first time, at the same fairgrounds. It will showcase a great variety of natural fibres and yarns including cotton, wool, flax/ramie specialty products; elastic, fancy and blended yarns as well as chemical fibres.

OCTOBER 16, 2012


A special highlight is a trendy Nylon Zone. The area connects the theme of “Colourful life, Fashionable Nylon” and is organised by the China Chemical Fiber Association Nylon Committee and Developing Center of Chemical Fiber Textiles Products.

Continuing the successful run at the Yarn Expo Spring edition, over ten domestic leading nylon manufacturers are presenting vibrant and innovative products for all buyers at the autumn fair.

Returning leading domestic suppliers and their specialties this season include Kingdom Holdings Limited (linen/ramie), Yuxin Group Co, Ltd (nylon superfine DTY), China Resources Textiles (Holdings) Co, Ltd (high-count cotton), Shandong Weiqiao Pioneering Group Co, Ltd (combed cotton and polyester blended yarn) and Fulida Group Hangzhou Import & Export Co, Ltd (chemical fibre blended yarn).

Additionally, both exhibitors and buyers will benefit from the synergy effect of four concurrent events. The most prominent of these events, Intertextile Shanghai Apparel Fabrics 2012, covers Halls W1 to W5, N1 to N3 and E1 to E5 – the single largest apparel fabrics event in the world. Also at the same time, Cinte Techtextil China will be taking place in Halls N4 to N5, where you will find technical textiles and related products, while the China International Knitting Trade Fair takes place in Halls E6 to E7.

Yarn Expo is organised by Messe Frankfurt (HK) Ltd, the Sub-Council of Textile Industry – CCPIT, China Cotton Textile Association, China Wool Textile Association, China Chemical Fibres Association, China Bast & Leaf Fibres Textiles Association, and China Textile Information Centre.

Yarn Expo Autumn

Fibre2fashion– Oct 15, 2012

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OCTOBER 16, 2012


BANGLADESH: Plans common textile market for D-8 countries

Plans to increase economic cooperation between member nations of the D-8 (Developing-8) countries include the formation of a common textile market and a regional garment brand.

The proposals were made last week at a meeting of the D-8 textile and garments working group on industrial cooperation in the capital Dhaka.

Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey are members of the D-8 forum - and between them have a combined population of nearly 1bn and offer a market worth US$20bn for finished textiles and garments.

"All member countries of the forum have agreed to form the common textile market through making its secretariat functional," Shafiul Islam Mohiuddin, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told just-style.

The meeting was chaired by Mr Mohiuddin and attended by delegations from Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey.

Turkey also proposed setting up guidelines on the academic and research capabilities of the D-8 member countries; Indonesia proposed the harmonisation of textile testing standards; and Egypt suggested forming a common body to facilitate investments.

A report on the meeting of the textile and garment task force noted that efforts to establish a common market will require the removal of tariff and non-tariff barriers, the withdrawal of quotas on all textile products, and a one-stop multiple visa service for textile executives.

Other steps would include the formation of a D-8 chamber of textile business, developing a common website for all D-8 textile and garment information, and intra-market trading of apparel items.

Currently, the tariff structure varies among member countries on the basis of both nature and magnitude and it is believed that any uniform or no duty structure in the group could benefit its members significantly.

The BGMEA chief said Bangladesh should play a key role in establishing the common textile market among the D-8 member countries.

OCTOBER 16, 2012


Even though it is the second largest clothing exporter in the world, Bangladesh's exports to the other D-8 countries is still insignificant. In fiscal year 2011-12 Bangladesh exported clothing worth $727m to D-8 member countries - just 3.0% of its total exports.

"There is ample scope to improve inter-regional trade among the D-8 member countries," Monirul Islam, associate professor and dean of the faculty of textile clothing, fashion design and business studies at Bangladesh University of Textiles, told just-style.

The formation of a common textile market will depend on willingness of the governments of the D-8 member countries, he noted.

just style – Oct 15, 2012

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Apparel sector races to hit targets

HCM CITY(VNS) — The textile and garment sector will take several measures to achieve its export target this year, according to the Viet Nam Textile and Apparel Association (Vitas).

Employees at the Nam Dinh-based Truong

Tien Company make clothes for export. The domestic apparel industry will have to work

hard to meet its export target this year. — VNA/VNS Photo Danh Lam

OCTOBER 16, 2012


Exports in the first nine months were worth US$10 billion, a year-on-year increase of seven per cent, but concerted efforts are indeed required to hit the target of $17-18 billion, it said.

The industry faces certain difficulties that will significantly affect production and trading, and serious efforts are needed to resolve them soon.

They include an ongoing dispute between Vietnamese textile firms and US cotton merchants – which could affect their purchase of cotton – and a Ministry of Finance plan to scrap the 275-day grace period for tax payment they currently enjoy.

The ministry plans to amend regulations to force companies to pay tax before customs clearance. The change will apply to firms that do sub-contract work for foreign partners and those that import products for re-export.

Without the grace period, production costs are expected to increase by 8-16 per cent.

Vitas vice chairman Le Tien Truong said the association has petitioned the ministry not to effect the change. It has also told its members to strengthen sales promotion abroad to consolidate existing markets and expand into new ones.

The Viet Nam National Textile Garment Group (Vinatex) will help its member companies explore ways to enter promising new markets like South Korea and Canada, and promote sales of fibre products to China, the Middle East, Turkey, and Africa.

The industry will intensify investment to upgrade fabric factories to ensure supply of quality material for exports.

A large polyester yarn production programme will be undertaken to meet 70-80 per cent of domestic demand by 2015.

If the programme is successful it will help the industry add value to textile and garment products.

Up-to-date information will be provided to textile firms about market fluctuations, changes in polices, and quality control in overseas markets so that they can make timely adjustments to their production plans.

OCTOBER 16, 2012


In an attempt to help the industry, the Ministry of Trade and Industry is launching several sales promotion programmes, especially in promising markets like Hong Kong, Thailand, and Malaysia. — VNS

vietnamnews.vnagency.com.vn– Oct 16, 2012

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Pakistan Cotton Yarn Export Market Prices Statistical Report

Demand is clearly recovering on the international yarn market with Pakistani spinners benefiting from the move, our Correspondent reports. Our monthly report includes a long list of yarn export prices per count and destination, with statistical tables and historical charts covering the Karachi and Faisalabad markets. Yarn export data are also released in volume and value terms. Historical data back to 2005, 2006 or 2010, are available for download.

- From our Pakistan Correspondent Ahmed Fayz

Cotton yarn prices are now recovering on Pakistan’s export market after a rebound of cotton fiber prices and a boost in demand from the European buyers.

Trading activities slightly improved in the last week after yarn producers lowered their price offers.

A higher level of buying interest from the European customers also gave impetus to the yarn market and prices, especially for 16s combed and 20/2 carded yarns.

Post-Holiday Move in Far East

Customers from China, Honk Kong and Korea remained mostly silent in the holiday period in the Far East.

Limited orders of 20s, 21s, 32s, 40s carded knitting and weaving, and 20s combed knitting yarns were reported in the past week.

Yarn producers are however staying firm with their price offer remaining high, due to the good level in past orders.

OCTOBER 16, 2012


A few foreign customers are asking for early deliveries even at higher rates, fearing tight supply in coming months, due to gas cuts in winter in Pakistan.

Customers from Turkey were similarly slow in placing new orders, but limited quantities for double yarns was reportedly settled at higher rates for coming month deliveries.

Buyers from Bangladesh and India also showed interest in buying 20/2 and 32/2 cotton carded yarns.

Limited orders were booked from Portugal for Polyester-Cotton (PC) blended yarns and polyester filament yarns.

Higher Cotton Prices

Sales are now improving on Pakistan’s domestic fiber market as cotton arrivals increased at the ginning plants.

The prices ranged between Rs.5,400-5,700 per maund of 37.32 kilos on the physical market.

Benchmark spot rate of Karachi Cotton Association (KCA) was however announced at Rs.5,500 per maund.

Emerging Textiles – Oct 16, 2012

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Cotton Prices Depressed by Record Stocks in Sight Weekly Report

Cotton prices plunged on last Thursday, after US Department of Agriculture predicted higher record stocks than expected. Our weekly cotton report covers the latest price trends of international spot and futures markets through a large number of tables and charts, with also domestic markets in India, China, Pakistan being reviewed. Historical data back to 6 years ago are available for download.

OCTOBER 16, 2012


Cotton futures heavily fell on last Thursday in New York, with nearby December contract even reaching a 10-day low during the session at 70.41 cents per pound.

Price somewhat recovered by the end of the day and on Friday, closing the week down only 0.2% to 0.5% for major contracts.

Stock-to-use ratio at 67.42%

Thursday's sudden fall was triggered by a new monthly report from the US Department of Agriculture (USDA) predicting higher ending stocks in current season (August 12 - July 13) than previously expected.

Global cotton stocks would reach 79.11 million US bales (17.22 million metric tons), or 3.38% more than announced in September.

More important, stocks will further gain 13.7% from a year earlier after already surging 43% in last season 20011-12.

The stocks-to-use ratio will jump to a new record high at 67.42% (see our first chart below).

Such a level in cotton stocks is obviously putting some strong pressure on international prices.

Chinese Stocks accounting for 1-year use

However, the surge is mostly due to China where state reserves were replenished in last two seasons and are expected to reach 37 million US bales by the end of current season, on July 31st.

This will account for about one year of Chinese consumption and slightly less than 50% of global stocks.

This is far from certain that China will sell its stocks on its domestic market, a move which would result in a sharp drop in domestic and international prices and would negatively affect farmers' revenues.

Outside China, cotton stocks are expected to reach 9.25 million US bales, up 8% from 2011-12, and still a record high by historical standards.

OCTOBER 16, 2012


Lower output, larger use

Global production was increased in USDA's October report, but is still expected to decline 6%.

Cotton output would fall 5% in China, 7% in India and 5% in Pakistan.

Global use would still gain 3.6%, although revised downward in October.

China would reduce its cotton use by 5% with its share of global consumption falling to a 10-year low at 34%. Consumption increases are however expected in other yarn producing countries in Asia.

India's use would climb 10% while Pakistan consumption will even surge 14%.

Emerging Textiles – Oct 16, 2012

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NATIONAL NEWS

Nafed puts kharif oilseeds, pulses & cotton under watch

The National Agricultural Cooperative Marketing Federation of India (Nafed) has kept kharif oilseeds, pulses and cotton under alert for extending its price support scheme (PSS).

This means that Nafed will procure these crops at the minimum support price (MSP), if the market price of the crops falls below the MSP. PSS is a market intervention mechanism of the government where government agencies procure crops from the market, if the prices fall below the minimum support price (MSP) prescribed by the agriculture ministry for that season. In order to enable PSS, the agriculture ministry has reverted to its old scheme of full reimbursement of the extra cost borne by procurement agencies such

as Nafed and the National Cooperative Consumers’ Federation (NCCF), in procuring the crop at MSP and selling below market price.

OCTOBER 16, 2012


However, the proportion of the subsidy reimbursement is yet to be decided. According to a proposal, the government wants a 50:50 sharing of reimbursement costs among states and the Centre and 75:25 for north eastern states. For the past two years, the subsidy reimbursement for Nafed was capped at 15 per cent of the total amount, while the rest is yet to be sorted out between the states and the Centre. Therefore, this time, the government has reinstated the old system without the cap before the start of the procurement season, said sources.

According to sources, Nafed has already started procuring urad dal in Maharashtra under PSS after the prices fell below the MSP of Rs 4,300 per quintal. In some markets, it has even fallen to Rs 2,495-2,600 per quintal. In contrast, in certain markets, it is around Rs 6,000 per quintal.

On the other hand, the Cotton Corporation of India has started procuring cotton from southern markets at the MSP of Rs 3,600-3,900 per quintal, since prices have fallen in these markets below the MSP at Rs 2,700-2,900 per quintal. Manufacturers in major pulses growing centres said that the high prices of these commodities have resulted in stagnant demand among bulk buyers as well as retail buyers.

There is hardly any lifting of stock at the markets at these prices. While millers have stocked up inventory, consumers have been managing demand according to the need and not building up inventory. Besides, India has enough stock of imported pulses as well, said a dealer. Even if there is a demand, it is met with minimum buying, he added.

OCTOBER 16, 2012


According to official sources, from middle of November, tur dal may need to be procured at MSP. Similarly, oilseeds, sunflower and soyabean are also under watch. Recently, Nafed was told to buy the entire market stock of pulses and oilseeds at MSP, if the prices fell considerably. The Food Corporation of India has a similar mandate in the case of rice and wheat.

The official sources said that the 100 per cent reimbursement scheme has recently been notified for copra and similar notifications will follow for oilseeds and pulses. For the kharif season, the government had held back the MSP decision on pulses for 2012-13.


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Textile Park remains a yarn

Another cotton procurement season rolls on Monday but the idea of building Textile Park, a cluster of fabric industry, in the fibre-crop belt of the state remains hanging in the air.

Textile Park is supposed to bring together industrialists and cotton farmers for common financial benefits. However, their conflicting interests have become the obstacles in implementing the idea. Cotton farmers want big industry in the region but they also seek the best deal for their land. The industrialists would like to keep the input cost as low as possible, so they wouldn't like to pay much for space.

"Farmers demand up to Rs. 50 lakh an acre for land, and industrialist seek a lower price," said Chaman Lal, general manager of the district commerce and industrial department. Earlier this year, after several rounds of meetings with the representatives of the textile industry, deputy chief minister Sukhbir Singh Badal had ordered district officials to locate a site in the region for Textile Park.

OCTOBER 16, 2012


"We found a suitable land in different villages where the textile-industry cluster could come up," said Chaman Lal. "We looked for the less fertile land. A few industrialists who inspected the site did not get back to us. There is big difference in the land price that farmers expect and industrialists are willing to pay. At the moment, we are busy with other projects."

The concept of building a textile park in the Malwa region is not new, and the government now has been promising it for the past two years. "Textile Park will help farmers get good value for their crop but over the last decade, boom in the real-estate market has also increased the price of agricultural land," said Ashok Kapoor, a trader and cotton expert. "The oil companies who built the refinery at Rama Mandi got land for a genuine price but that was then. Now the land value has increased manifold, which will increase the input cost of any industry."

Farmers are now aware of the true value of their land. "Boom in real-estate sector as well as the agitation over the Gobindpura land acquisition in Mansa district last year has awakened farmers to the power of negotiation," said Manjit Singh Honey, leader of the Bharti Kisan Union. "The government can no longer acquire any farmer's land by force for any industrial project."


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Andhra Pradesh CM directed the Handlooms and Textiles department to chalk out an action plan

Report by OD bureau, Hyderabad: The Chief Minister Mr N Kiran Kumar Reddy today directed the Handlooms and Textiles department to chalk out an action plan including demand, supply capacity, Marketing and how to ensure remunerative wages to the weavers and what more government support is needed for all these.

OCTOBER 16, 2012


He also asked whether any nodal agency is required to coordinate all these functioning. He wanted the APCO and Handloom sector to be ready to meet all the requirements of the Social Welfare, BC Welfare, ST Welfare and Rajiv Vidya Missions in time. He had a detailed preparatory review of the issues, functioning and demands of the Handlooms and Textiles department with Handlooms and Textiles Minister, MP and top officials at Secretariat. It may be stated here that the Chief Minister will have a face to face meeting with the representatives of the Handlooms sector at Jubilee Hall on 20-10-2012.

Handlooms and Textiles Minister Prasad Kumar, Rajya Sabha Member Rapolu Anand Bhasker, Govt. whip Anil, Principal Secretary, Industries (Handlooms and Textiles), D.Srnivisulu, Principal Secretary, Finance, V.Bhasker, Principal Secretary, Social Welfare, Raymond Peter, Principal Secretary, Tribal Welfare, Vidyasagar, Director, Handlooms & Textiles, Kantilal Dande, State Project Director, Rajiv Vidya Mission, Usha Rani and other officials attended the meeting. The Budgetary allocations for the Handloom sector have been enhanced from Rs.50.69 crs in 2004-05 to Rs.212.55 crs in 2012-13.

The State Government have implemented Loan Waiver scheme to Individual Handloom Weavers-Weavers Cooperative Societies and released Rs.163.71 crs. It may be stated that the Chief Minister waived working capital loans & Govt. loans pertaining to 1009 Weavers Coop. Societies worth Rs.109.68 cr benefitting 1,38,128 weavers and Individual loans of 29,289 handloom weavers worth Rs.54.03 crs. Officials said that Handloom Industry is the largest cottage industry in the country next only to agriculture in providing massive rural employment. This sector provides direct and indirect employment to about 2.5 crore people in India. 14.6% of the total cloth production of the Textile Industry in India comes from Handloom Sector.

Andhra Pradesh stands 3rd in terms of commercial production next to West Bengal and Tamil Nadu. Total Handloom Production in A.P. is Rs.1200 crs. out of which, Rs.300 crs comes from cooperative fold. There are 1283

OCTOBER 16, 2012


Handloom Weaver Cooperative Societies (Cotton-896, Silk-326, Wool-61); 973 Handloom Weavers Cooperative Societies working (Cotton-671, Silk-277, Wool-25); 1,58,902 Handloom Weavers outside Cooperative Fold; 1,40,654 Identify Cards issued to weavers by the Department - Cooperative fold (including ancillary workers) and 1,58,902 outside Cooperative fold (including ancillary workers) and there are 80,778 number of Powerlooms (working-53,937).

Our own Traditional products are: Pondur Dhoties, Uppada Jamdhani Silk and Cotton sarees; Bandar Petu Sarees, Mangalagiri & Venkatagiri Cotton Sarees and Dress Materials; Peddapuram Silk Shirting and Dhoties; Chirala Madras Hand Kerchiefs and Stoles, Dharmavaram Silk sarees & Pavadas with zari borders; Yemmiganur Cotton Bedsheets, Towels and Mosquito nets; Pochampally Telia Rumal, Silk and Cotton Tie & Dye (Ikkat) Sarees and Dress material; Warangal Export Durries and Carpets, Karimnagar Bedsheets, Siddipet Gollabhama Cotton Sarees and Narayanpet & Gadwal Silk and Cotton Sarees with zari borders.

In order to resolve the problems being faced by Handloom Weavers, various Development and Welfare schemes are being implemented by both the State & Central Governments for the overall development of the Handloom Weavers in Andhra Pradesh. Pavala Vaddi scheme is being implemented w.e.f. 1.4.2008 with a view to reduce the burden of interest on Handloom Weavers Coop. Societies, APCO, Individual weavers covered under Artisan Credit Cards and Weavers SHGs. So far Rs.7.77 cr were released benefitting (605) Primary Weavers Coop. Societies and APCO.

Officials said that 10% Price subsidy on Hank Yarn, Dyes & Chemicals is being implemented w.e.f. 1.1.2008 to the Handloom Weavers Coop. Societies. Rs.428.20 lakhs has been released benefitting (277) HWCSs so far. Government of A.P. have ordered to extend an additional 10% price subsidy on Hank yarn, Dyes & Chemicals w.e.f. 01.01.2011. 10

OCTOBER 16, 2012


Netha Bazars have been constructed to enable the weavers to sell their products. Rs.2.17 cr has been released and out of which Rs.1.27 cr has been spent so far. 141 Weavers Coop. Societies have been registered and 7 societies have been revived to bring weavers from outside coop. fold into coop. fold.

Financial assistance of Rs.182.00 lakhs has been released to (91) newly registered societies towards equity participation @ Rs.2.00 lakhs each. Scheme of Training and Infrastructural Support to Handloom Sector - 17 Common worksheds are constructed with a total outlay of Rs.332.88 lakhs so far. Old Age Pensions - 1,44,343 old age pensions sanctioned to handloom weavers by reducing the age limit from 65 to 50 years @ Rs.200/- per month. Modernization of looms and accessories - Rs.5.35 cr has been released to 188 Weavers Coop. Societies to enable the weavers to weave modern and latest designs to attract the customers.

Payment of Ex-gratia to the families of suicidal weavers - Ex-gratia @ Rs.1.50 lakhs is sanctioned. Cooperative Handloom Weavers Thrift Fund Scheme: State Government have issued orders for implementation of the scheme w.e.f. 01.01.2011 as State scheme. Special Package to Siricilla Town: For extending financing support to weavers 1479 SHGs have been formed covering 19,496 women weavers and provided with financial assistance of Rs.79.99 cr by banks. Rs.2.00 cr has been sanctioned and released to Collector, Karimnagar Dist., to take up Skill Development Training Programmes / Income Generation Programme during the year 2008-09. Government have sanctioned an amount of Rs.21.00 lakhs to Netha Cheyutha Trust which has been formed for the Welfare of Powerloom Workers in Sircilla. 4,000 infirm/crippled weavers are getting free distribution of rice @ 25 Kgs per month per family. In order to avert suicidal deaths, 9755 White Ration Cards have been converted into AAY and being provided 35 kgs of Rice per month @Rs.1/- per kg per weaver family.

OCTOBER 16, 2012


Weavers Credit Cards (WCC): Adequate and timely assistance from the Banking institutions for investment needs as well as for working capital; all weavers and ancillary workers are eligible and Weavers’ Credit Card will be issued for an upper limit of Rs.2.00 lakhs for individual weavers with the expected average off take in the range of Rs.30,000 to 50,000 per card.

www.orissadiary.com– October 15, 2012

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Indian spinning mills join hands to source cotton

More than 50 spinning mills from the South Indian textile hub of Coimbatore have come together to source quality cotton at lower prices.

These companies have together floated the Cotton Sourcing Company (Cosco), which is expected to reduce transportation and other expenses, incurred during procurement of cotton by the textile mills.

The textile mills, which are part of Cosco, have a combined capacity of around 2 million spindles, which constitutes around 10 percent of the total cotton spinning capacity in Tamil Nadu.

The new company is likely to procure 1.8 million bales of 170 kg each during the current season, estimated at about Rs. 30 billion.

For the purpose, Cosco has already set up offices in important cotton growing states in the country and it is in the process of establishing a joint venture with a logistics company for transportation of cotton.

OCTOBER 16, 2012


The newly formed company has begun procurement of cotton on a trial basis and it will begin full-fledged operations in November.

Fibre2fashion– October 15, 2012

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Cotton rules flat on muted offtake by mills

Following limited buying by mills, cotton prices remained unchanged in Gujarat on Monday.

According to brokers, arrivals of cotton are increasing and ginning activity is likely to start after Navaratri.

A cotton broker said: “Cotton price may not increase in near future as there is not big demand. Exporters are absent in the market and mills’ buying is limited. Price may decline as arrival is increasing.”

According to a Gondal-based ginner, buying activity is slow and limited as arrival of quality cotton is not enough. The market will be regular after October.

Most of the ginners have not yet started their units as demand is limited and ginners are waiting for arrival to be regular.In Gujarat, new cotton was offered at Rs 32,200-32,800 a candy of 356 kg. A grade S-6 cotton was at Rs 33,000-33,500 and B grade at Rs 32,800-33,000.

Prices of V-797 ruled at Rs 27,000-27,500.

About 12,000-13,000 bales (of 170 kg each) arrived in Gujarat and 27,000-28,000 bales arrived in India.In Maharashtra, A grade cotton of low micronaire quoted at Rs 32,500-32,800 and A grade high micronaire cotton (29+ MM) was at Rs 32,800-33,500. The new crop was quoting Rs 32,000-32,500.

(This article was published in the Business Line print edition dated October 16, 2012)

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OCTOBER 16, 2012


96 bonded labourers rescued from Erode textile mill

Erode (TN), Oct 15: A total of 96 child labourers in the age group of nine to 13 were rescued from a private spinning mill here on Monday, police said. Forty five of those rescued were girls, police said.

District Collector Dr V K Shanmugam said Corporation Mayor Mallika Paramasivam informed police on a tip off that child labourers were working in the mill at Karungalpalayam area. He said he headed a team, comprising labour welfare officials, doctors, police and Corporation officals in the raid and found the children working there. After their rescue,the children, hailing from Krishnagiri, Dharmapuri, Vellore and other parts of the state, were medically examined and their parents told to come and collect them, he said. He said district authorities would be asked to admit these children in schools in their areas. Police said a case has been registered against the mill owner and manager and have launched a search for them. Mayor Mallika Paramasivam, who received information from the people living in Arumugam Street in Karungalpalayam area about the bonded labourers, alerted police and revenue officials.

A team of police personnel monitored the mill for the past 10 days and the preliminary investigations revealed that persons were forced into bonded labour at the mill.

A team of officials led by the Mayor conducted a surprise check at the mill on Monday afternoon and rescued 96 bonded labourers. The labourers included more than 30 children.

Official sources said the labourers were brought to the mill from different parts of Dharmapuri and Krishnagiri districts. Many labourers claimed that they were paid a sum of Rs. 10,000 as advance to work at the mill. It had been several months since they were allowed to visit their home.

OCTOBER 16, 2012


We were forced to work in the unit as there was no employment opportunities in our area, said the labourers from Marandahalli in Dharmapuri district.

Collector V.K. Shanmugam and District Revenue Officer S. Ganesh also rushed to the spot and directed the authorities to conduct a detail probe. A case will be registered against the management of the mill and a detailed investigation launched. In the preliminary enquiry, we found the mill did not have proper approval from the authorities, he said. Doctors from the GH have been asked to examine the children to determine their age.

cottonyarnmarket– October 16, 2012

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