ISO 9001:2008 Certified. D&B D-U-N-S® Number 91-861-9495
Member Login Check Email Stock Detail
Mumbai: 91-22-22075566, Tirupur: (0421) 4336453
 

HOME

T-SHIRTS

PLAIN T-SHIRTS

POLOS

PLAIN POLOS

DRY FIT (NEW)

WOMENS T-SHIRTS

SWEAT SHIRTS

SHIRTS

DENIM SHIRTS

WIND CHEATERS

PHOTOGRAPHER'S
JACKET


CAPS

BAGS

COMPRESSED
T-SHIRTS
(NEW)

FAQS

ABOUT US

CONTACT US

TEXTILE NEWS

TEXTILE NEWS UPDATE

Yarn Market Price
India Spun Yarn Export Market Prices (Monthly Report)

12 January 2012 - Yarn prices rebounded on Indian export markets, in line with a sharp increase of cotton fibers and the continuous fall of the rupee. Our monthly report covers yarn export prices in India, including cotton, polyester, viscose and acrylic yarns. Historical data are available for download. Full Report...   Sample Report...   Table Of Content...
Spun Yarn Prices in India (Monthly Report)

11 January 2012 - Cotton yarn prices suddenly soared in India, over stronger demand and higher cotton fiber prices, our Correspondent reports. Our monthly report includes a series of price tables covering the cotton yarns, but also spun polyester and viscose, polyester-cotton and polyester-viscose. Historical data back to last 4 years are available for download. Full Report...   Sample Report...   Table Of Content...
Yarn Prices on the International Market (Statistical Report)

11 January 2012 - Yarn prices are now rising back to higher levels on the international market, after demand rebounded from processors in the textile and clothing industries. Our monthly report offers a review of effective price deals settled between Asian sellers and their final customers in Europe and Latin America. Our statistical tables cover cotton, polyester, viscose and blended yarn prices. Full Report...   Sample Report...   Table Of Content...
Pakistan Cotton Yarn Export Market Prices (Statistical Report)

9 January 2012 - Export yarn prices were very firm in the last week in Pakistan, in line with a return of demand from European customers. The Far East is however reluctant in accepting new price increases, our Pakistan Correspondent reports. Our Monthly Report includes a series of statistical tables and historical charts covering the Karachi and Faisalabad cotton yarn export markets. Yarn export data are also released in volume and value terms, such as historical data, available for download. Full Report...   Sample Report...   Table Of Content...
Cotton Yarn Prices in Pakistan (Statistical Report)

4 January 2012 - Yarn prices began rising on Pakistan's domestic market, in line with a rebound in demand from processors, trying to replenish stocks. Energy shortages and higher cotton prices are also helping, our Pakistan Correspondent reports, with our series of price tables covering the cotton and polyester-cotton yarn markets in Karachi and Faisalabad. Full Report...   Sample Report...   Description...   Table Of Content...

 

6th Nov 2011 Sunday
Water Cloggin-Tirupur


( The above T-shirts are manufactured by Casablanca Apparels Pvt Ltd. )

SPORTING ENCOUNTER

( The above T-shirts are manufactured by Casablanca Apparels Pvt Ltd. )
Sahara India Pariwar enters Formula One. Subrata Roy, Chairman of
Sahara Force India & Dr Vijay Mallya, Team Principal & Managing Director at the unveiling of
'Sahara Force India' Team


Publication: The Times Of India Mumbai;Date: Aug 22, 2011;Section: Times Nation;Page: 13


DEAD RIVER’S REVENGEBarren fields, closed factories, lakhs without a livelihood. A poisoned Noyyal has spelt disaster for Tirupur, a booming town caught in a people versus pollution warBinoy Valsan | TNN 


    Six months ago, Tirupur was throbbing with activity. Today, the Tamil Nadu town—a major knitwear export hub—is steeped in gloom. And a river runs through it. 

    The river, Noyyal, has turned poisonous. For years, the town’s dyeing units had been pumping effluents into it. The toxic water eventually reached the agricultural fields of western Tamil Nadu, rendering them barren. A high court order in January led to the closure of almost all the city’s 654 units. Now, over three lakh workers are paying for the sins of their employers. 

    “The closure of the dyeing units has crippled the entire economy of the city. Right from the roadside tea-stall to the departmental and textile stores, there is a drastic dip in customers,” says R Annadurai, convenor, Tirupur Industrial Protection Committee. 

    The tragedy of Tirupur, though, began years ago—and it was first felt by the 1.5 lakh farmers of over 100 villages of Tirupur, Erode and Karur districts. A P Kandasamy, a farmer from Athipalayam village, used to be proud of his lush, green 24 acres of paddy, sugarcane and coconut trees. That was before the dyeing units began to flourish in neighbouring Tirupur and started pumping effluents into the river. Today, the vast barren fields leading up to his house bear only a few patches of shrubs, grass and hollow tree stumps—skeletal remains of an ecological disaster that has struck the region. 

    The past decade has been a desperate struggle for farmers as agriculture suddenly became unviable. “Not even cattle can drink the river’s water. How did they allow such an atrocious act to be committed? Nothing will grow on this soil,” laments AM Thangamuthu, a farmer from the area. Thousands like him in this belt were forced to migrate to the cities to seek employment as unskilled labour. 

    The misery of the farmers coincided with the rapid rise of Tirupur as a knitwear hub. As orders poured in from Europe and the US, garment manufacturers started working overtime to maximize profits. Pollution norms were sidelined as rapid economic growth took centrestage. Sources in the Pollution Control Board (PCB) now admit the units used to regularly pump toxic water into the Noyyal at night. 

    It was in Kandasamy’s house that the farmers finally decided to stand up to the might of the garment barons. In 2003, a writ petition was filed before the Madras high court on behalf of their organization, the Noyyal River Ayyacutdar Protection Association (NRAPA). Eight years and numerous appeals later, the court on January 28 ruled in their favour and instructed the state government to ensure the closure of polluting dyeing units with immediate effect. The farmers have hailed it as a landmark ruling. “It will strengthen other cases where farmers are taking on industry over sensitive issues like pollution,” says Kandasamy. 

    The court also came down heavily on the then DMK state government and issued contempt notices to PCB officials for their failure to act. The total dissolved solids (TDS) in the river was found to be alarmingly high—between 5,500 ppm and 7,000 ppm. The permissible level fit for human consumption is 2,100 ppm. TDS levels as per the records maintained by the PCB always peaked during the period between October and May, the peak season for the garment sector. 

    Out of the 752 dyeing units registered in Tirupur, 654 were still functioning at the time of the court ruling. Action was initiated against them in February. Their power supply was disconnected and they were served with closure notices. Only nine units—with their own individual effluent treatment plants (IETPs)—were allowed to keep functioning. 

    The tragedy of Noyyal has since shifted from the agrarian hinterland to the epicentre of Tirupur city. Most of the workers in these units are unskilled labourers who migrated from the state’s southern districts (Madurai, Virudhunagar, Theni and Dindigul) and from Bihar, Orissa, West Bengal and Jharkhand. Ironically, many of them had given up agriculture and come here to make a living. Now they have nowhere to go. “I don’t know any other job and I don’t have anyone back in my native town (Rajapalayam in Virudhunagar district). I know some people here and will try to borrow money from them to complete my children’s education,” says P Marimuthu, one of the jobless workers. 

    Fortunately for Tirupur, the assembly elections in April ensured the issue got top billing. The run-up to the polls witnessed several protests by local associations and citizens’ forums. There was also a move to field more than 1,000 independent candidates from Tirupur North constituency, all of whom were affected by the closure. “Our main aim is to revive the dyeing and bleaching units in the city. The economy of Tirupur has come to a grinding halt,” said Chitra, a 36-year-old tailor and mother of two after filing her poll nomination. 

    What next? The new government, under J Jayalalithaa, and the Union textile ministry have swung into joint action. A 12-member, high-level committee was formed on July 25 to resolve the issue. The panel is meeting in New Delhi on August 24 to discuss possible bailout plans. “The steps being taken by the chief minister and Union government officials are commendable and we are hoping that soon we will be able to revive the garment sector,” says A Sakthivel, president, Tirupur Exporters Association. 

    The CM has also announced an interest-free loan package of Rs 200 crore for the 20 common effluent treatment plants (CETPs) in Tirupur for upgrading their effluent treatment facilities. The authorities are currently monitoring a 90-day trial run to ensure zero liquid discharge at the Arulpuram CETP. The PCB has allowed 15 dyeing units to function at 30% capacity during the trial period. The state government has also promised immediate disbursal of a compensation package of Rs 18.38 crore to farmers affected by the pollution. 

    The farmers, meanwhile, are watching the developments closely. “The state government has announced some plans but because of the court ruling we believe that garment exporters will not be able to exploit Noyyal the way they did earlier,” says Kandasamy. 
THE KILLING FIELDS: Dead fish float in the Noyyal river in Tirupur, the result of effluents pumped into it by dyeing units 

Burdened parents now face uniform trouble

By: Kranti Vibhute Date:  2011-05-04 Place: Mid-Day Mumbai

School uniforms have joined the list of tuition fees and textbooks in pushing parents' stretched budgets to bursting point through exponential cost increases

If the double whammy of arbitrary hikes in school fees and the phenomenal increase in prices of textbooks wasn't enough, parents of school-going children have now been saddled with an additional expense. And the culprit this time is the innocuous school uniform. Suppliers across the city have hiked the price of each set of uniform (shirt and trouser/blouse and skirt) from an average of Rs 500 to nearly Rs 800 for this academic year. They attribute the more than 50-per cent hike to the astronomical rise in the cost of yarn, which has more than doubled since last year. 

In a quandary: Dilip Jain, a shopkeeper who retails school uniforms in 
Mazgaon, says that suppliers are in a dilemma as parents refuse to believe 
that they too are incurring higher costs owing to the increase in cost for 
raw materials. Pic/Santosh Nagwekar 

From Rs 185 per kg in August, 2010, yarn prices climbed to an all-time high of Rs 240 per kg in November and are currently sitting pretty at close to Rs 400. Suppliers, who have not seen yarn prices rise more than Rs 10 or so in a year for the last forty years, say the sudden increase has given them the shock of their lives. 
The worst affected are parents, however, who are even hinting at a nexus between schools and uniform suppliers. "School fees increase exponentially every year and this time we have had to deal with the cost of textbooks going through the roof as well. How do they expect us to afford to spend so much on our children's education? For all you know, schools and uniform suppliers have decided at an inflated price and are divvying up the spoils," said a concerned parent.

Suppliers who took orders for uniforms before the price of yarn went up say they are caught between the devil and the deep sea. "We cannot back out from fulfilling our commitment as the uniforms that have already been made will go waste. At the same time, parents and schools are refusing to believe that yarn prices have gone up as much as they have and are unwilling to give us the full amount. We have no choice but to bear a loss one way or the other," said a supplier.

http://www.mid-day.com/news/2011/may/040511-School-uniforms-tuition-fees-budgets-cost-increases-Burdened-parents.htm

Squads demolish 122 illegal dyeing units
M.K. Ananth and S. Ramesh ( April 26, 2011 )

NAMAKKAL: Officials of the Tamil Nadu Pollution Control Board (TNPCB) and Revenue Department on Monday demolished 122 dyeing units that were functioning illegally at Pallipalayam and Kumarapalayam.
They were located two to five km from the Cauvery in Tiruchengode taluk.
District Environmental Engineer K. Gokuladas told The Hindu that the demolished units had not obtained licence or other forms of clearance from the TNPCB or other departments.
Supervising the demolition of 56 of the 76 dyeing units and nine cement tanks used for manual dyeing at Pallipalayam, Mr. Gokuladas said the proximity of the units to the river was against norms stipulated by the TNPCB to prevent pollution of rivers.
According to him, most of the demolished units were set up when their parent units in Tirupur were sealed after a court order on pollution. Of the total 76 dyeing units in Pallipalayam, only 13 had licence.
While 56 units were demolished on Monday, seven others will be removed on Tuesday, he said. The complete demolition of the machinery was aimed at preventing mushrooming of similar units in a different locality, the official said.
He said that 48 such units were destroyed in the Pallipalayam area during four raids conducted in the past. Survey to identify illegal dyeing units would continue.

Heated argument

Owners of the dyeing units at Pallipalayam led by their association president T.S. Kandasamy tried to halt the demolition, claiming that units that had licence were also demolished. A heated argument between PCB officials and owners of the units came to an end when the eviction continued with police protection.
PCB officials clarified that they had demolished only unauthorised units. The ones claimed to be legal had obtained licence for dyeing threads and other processes but were misused for dyeing cloth. Therefore, they were demolished.
In another drive at Kumarapalayam, 66 dyeing machines were destroyed. Here too, unauthorised winches from Tirupur occupied a major share of the demolished illegal units, PCB officials said.
In Erode, Village Administrative Officers have been asked to collect details regarding the textile processing and tannery units functioning in their respective areas.
This followed the detection and demolition of more than 40 illegal units over the last few days.

The units were letting out untreated effluents into the Cauvery and the Bhavani. These units too were set up following the closure order in Tirupur.
“Since we found many units functioning without approval in the district, we have decided to collect the details about all the textile and leather processing units,” District Collector C. Kamaraj said.
The administration has asked the VAOs to collect the information and submit a report by April 27.
Based on the report, the drive will be intensified. Units that had approval, but were causing pollution, will face legal action, officials said.
The administration had also taken steps to initiate criminal action against the owners of the illegal units that were demolished.
“We are compiling a detailed report for this purpose,” Revenue Divisional Officer R. Sukumar has said.

http://www.hindu.com/2011/04/26/stories/2011042662550400.htm

Tirupur dyeing factory owners' pleas dismissed
SPECIAL CORRESPONDENT ( CHENNAI, March 30, 2011 )

Court imposes costs of Rs.15,000

The Madras High Court has dismissed four petitions filed by the Tirupur Dyeing Factory Owners Association seeking various reliefs, and imposed costs of Rs.15,000. The association should pay the sum to the Tamil Nadu State Legal Services Authority by April 6.

The petitions sought reliefs, including appointment of a technical committee consisting of experts, to suggest implementation of Zero Liquid Discharge (ZLD) effectively and granting extension of time by nine months for achieving 100 per cent ZLD and consequently permitting the opening of bleaching and dyeing units.

The First Bench, comprising Chief Justice M.Y. Eqbal and Justice T.S. Sivagnanam, said that though at the first blush the relief sought for by the association appeared innocuous, the petitions were a clear abuse and misuse of the process of court.

The Bench said that it did not appreciate modality adopted by the petitioner association, presumably to dilute the January 28 judgment. Any of the prayers sought for, even if partially accepted, would amount to reviewing the judgment.
http://www.thehindu.com/news/cities/Chennai/article1582782.ece
Keywords: Tirupur Dyeing Factory Owners AssociationZero Liquid Dischargedyeing units

HC dismisses dyeing units'' plea; imposes cost
30/03/2011

Chennai, Mar 29 (PTI) The Madras High Court today come down heavily on a body of Tirupur dyeing factories "for abusing the process of court" after they sought relief which in effect would nullify its judgement ordering closure of over 720 units for causing pollution and imposed a cost of Rs 15,000.

"Though at the first blush the relief sought for by the association appears to be innocuous, these petitions are a clear abuse and misuse of the process of court," the court said dismissing the petitions filed by the Tirupur Dyeing Factories Owners Association.

"We are constrained to say so because the Association indirectly seek to nullify the judgment of January 28 in the contempt petitions in which the petitioner association was impleaded as a contemnor," a bench comprising Chief Justice M Y Eqbal and Justice T S Sivagnanam said.

The court ordered the association to deposit Rs 15,000 in the account of the Tamil Nadu State Legal Services Authority by April 6.

Taking serious view of continued discharge of untreated effluents into Noyyal River, the court had on January 28 directed the Tamil Nadu Pollution Control Board (TNPCB) to immediately close down over 720 dyeing and bleaching units in Tirupur, a major hosiery hub and export centre near Coimbatore.

Besides, it had also directed disconnection of electricity supply to the units.

The association had filed miscellaneous petitions seeking reliefs including appointment of a technical committee of experts to suggest implementation of Zero Liquid Discharge (ZLD) effectively and granting extension of time by nine months for achieving 100 per cent ZLD and consequently permitting the opening of bleaching and dyeing units.

The Bench pointed out that its January 28 order stipulated that in respect of units which fulfilled all conditions could approach the TNPCB seeking consent order to operate and such unit should be continuously and closely monitored in order to ensure strict compliance of the order.

"Therefore, if any of the members of the petitioner association have fulfilled the conditions, it was always open to them to approach the Board for necessary orders," it said.

The court said it was of the firm view that the present petitions had been filed to some how get over the Janary 28 order. The petitioner being an association of factory owners, a registered body, could not be allowed to misuse the jurisdiction of the court and indirectly attempt to secure relief which if sought for directly was not maintainable.

http://news.in.msn.com/national/article.aspx?cp-documentid=5090129

Hosiery prices rise by 60%
Bella Jaisinghani, TNN | Mar 23, 2011, 05.12am IST

MUMBAI: Garment manufacturers expressed dismay at the meagre 1.5% reduction in excise duty announced by Union finance minister Pranab Mukherjee on Tuesday. Meanwhile, the cost of readymade garments has spiralled in retail markets with hosiery prices rising by up to 60%.

Lakhs of workers, sweatshop owners and industrialists have been protesting against the imposition of a 10% excise on branded garments in this year's Union Budget. However, the finance ministry has rejected a rollback, instead granting only a 1.5% rebate despite mass protests and high-powered representations made by industry leaders since March 1.

"Reducing the excise duty by 1.5% is no relief. We will spend as much money on extra paper work and on hiring excise consultants. Exorbitant excise will only prompt garment manufacturers to remove the 'Made In India' label and go unbranded to avoid taxation," said Viren Shah, president, Federation of Retail Traders Welfare Association (FRTWA).

A quick check of mainstream shopping markets in Mumbai on Tuesday showed how retail prices have shot up in the past two months. "Cotton saris that were available for Rs 150 in January are selling for Rs 200, a hike of around 30%. Moreover, quality is poor as manufacturers are being forced to use cheap material to cover losses," said Raju Luthria, the owner of a store in Dadar.

He predicted that prices will rise further in April as the wedding season nears. "Manufacturers are shouldering part of the burden as sales volumes are low in March. April could see rates rise by 20%," Luthria said.

"Retail prices of hosiery have risen in the past year due to the rise in the cost of cotton yarn. Excise will be the last straw on the camel's back," said K B Agarwal, managing director of an innerwear manufacturing firm.
Agarwal's fear has become a reality in places like Surat. Luthria said many small factories had shut shop in the past year.
Many garment manufacturers are unhappy with the meagre 1.5% cut in excise duty.


Readymade garment traders hold dharna

TNN | Mar 14, 2011, 10.40pm IST

KANPUR: The decision of imposing 10 per cent excise duty on readymade clothes in the budget has irked the hosiery traders. They observed a `bandh' on Monday.

Prominent readymade cloth markets in the city like Hamraj Complex in Basmandi remained closed. The members of Hamraj Complex Merchants Association and Northern India Hosiery Manufacturers Association observed 'bandh', asking the Central government to withdraw the excise duty on readymade clothes.

The hosiery traders gathered at Ghantaghar crossing and held a `dharna'. They criticised union finance minister Pranab Mukherjee for imposing the duty on the industry which meets the needs of masses. The demonstrators were led by Manoj Banka, president, Northern India Hosiery Manufacturers Association.

President, UP Garments Manufacturer Association, Dheeraj Shah said that the readymade garment industry is the second largest employment generating sector in the country. This industry is already facing an excise duty on the raw material and the new excise duty likely to be imposed will hit the traders hard.

Excise duty on branded apparels, major concern for industry
Wednesday, 02 March 2011

The Union Budget has left players in the branded apparel sector in India an unhappy lot. Now, they have to cough up a mandatory excise duty of 10 per cent. Till now they were under the optional excise duty regime but now they have a mandatoryexcise duty with a unified rate of 10 per cent. Reactions are pouring in as industry bodies and other stake holders feel it should be rolled back.

The Confederation of Indian Textile Industry (CITI) and the Apparel Export Promotion Council (AEPC) have urged the finance minister to roll back the proposal. As Rahul Mehta, President, Clothing Manufacturers Association of India (CMAI) says, “There is only one year for the GST regime to start, so there is no need to create this uncertainty. After all everyone is going to move to GST in the end. Moreover, 130 other products which were not attracting excise duties, now have to pay 1 per cent duty while for garments its 10 per cent. There is no reason for an essential item like clothing to be charged at a higher rate. Also, the industry is already highly fragmented and by distinguishing between small scale units and others, we are encouraging players who were moving to a more organized business to go back to small scale manufacturing. All the efforts we have undertaken as an industry association to make manufacturing more organized have gone down the drain.” Agrees Premal Udani, Chairman, (AEPC) as he feels there’s a negative sentiment with this excise duty. “We have no problem paying the tax but excise on apparels is not easy to collect because of the highly decentralized production. It’s a negative step and we have asked the FM that till the time it’s clearly understood, it should be held in abeyance. Also, the domestic industry is already reeling under price pressures and garments are expensive because of the raw material hike, this will add to the clothing inflation.” In a statement, CITI Chairman Shishir Jaipuria too has said the proposal would not only have serious adverse impact on “these high labor intensive segments'' but also have significant operational problems at the level of implementation. He pointed out that since most inputs for the segment comes through the optional excise duty regime there would be very little duty credit to offset.

Meanwhile apparel retailers and brands like Alok H&A, Woodland, Mandhana Industries, Cantabil etc, are not too sure how it will play out on the consumer. As Ashutosh Chakradeo, Head Buying Merchandising, Hypercity says “We are not sure if the duty is also applicable on private brands or only on national brands. But in general this is not an encouraging sign as prices have already gone up by 20 to 25 per cent due to the hike in cotton prices. And on top of that an excise duty will have an impact on the customer by 5 to 7 per cent. It will have to be passed on and that is not a good sign.”

The industry is disappointed with the budget since there was no declaration of a roadmap on FDI in retail. “There was no announcement on the withdrawal of service tax. And now there is a 10 per cent excise duty on branded apparels. Cotton prices have shot up by 100 per cent and there’s no other way but to pass on the increase in yarn and fabrics to apparels. While on one hand we have to fend off the cost increase on the other there is the excise duty, which we can’t absorb. So there is a big challenge. We as an industry would like this to be delayed by a year or bring it along with GST so we can set it off. Or cancel it completely,” says Govind Shrikhande, Customer Care Associate and MD, Shoppers Stop.

Most brands say there is no option but to increase prices. Because when it comes to excise duty, when you clear the manufacturing stage, you have to pay. So it’s a cost. That cost will directly impact retail prices which will be higher by 5 to 10 per cent. “My MRP will go up by 6 per cent. And it will be passed on to the consumer. I have already absorbed the huge price increase of yarn. So I don’t have a choice now,” says Vijaylaxmi Poddar, Director, Siyaram Silk Mills. She feels the price wars between branded and unbranded will get sharper. But the price gap between Indian and imported brands will get narrower.

The bottomline therefore is: The consumer will certainly be affected as retailers say they can’t absorb excise duty.

'HC order to impact textile units'
TNN, Feb 17, 2011, 06.29am IST

COIMBATORE: The recent Madras High Court order directing the closure of all dyeing and bleaching units discharging effluents into the Noyyal river would adversely impact textile-based units in Tirupur, ratings agency Crisil said.

"The immediate impact on operations of standalone dyeing units will be harsher than that on integrated players, as the former's operations has been brought to a complete halt," said Gurpreet Chhatwal, director, Crisil Ratings.

Since most dyeing units have already incurred capital expenditure for setting up effluent treatment plants (ETPs), the enforcement of strict zero liquid discharge (ZLD) norms will mainly impact operating costs, Crisil said. "Ensuring ZLD will increase operational costs by 7-10% for non-complaint dyeing and bleaching units," said Subodh Rai, head, Crisil Ratings.

"However, for the downstream industries (fabric weaving and garments), this increase will account for only 1-2% of their operating costs as dyeing and bleaching form a small part of their overall costs," he said.

The increased costs due to compliance of norms will not have material impact on the long-term competitiveness of downstream textile players since there will only be a marginal increase in operating expenses, Crisil said. However, the inability to pass on significant increase in operating expenses can have a sharp impact on the credit profiles of dyeing units given their already weak debt protection metrics, it said.

Integrated players with in-house dyeing facilities, however, hold dyed fabric for more than a month and may remain operational in the next couple of weeks, Crisil said. Moreover, integrated textile units use independent ETPs, and are compliant with ZLD norms. These units would become operational after the receipt of clearance from the HC, Crisil said.

"The impact on readymade garment players is expected to be smaller as they have dyed fabric inventories of around 1-2 months. Spinning units are expected to witness minimal impact as bulk of their production is exported or consumed at other locations in India," Chhatwal said. Crisil, which has outstanding rating on 226 textile companies based in the south, is conducting a comprehensive assessment of the fallout of the HC verdict.

HC allows reopening of a dyeing unit in Tirupur

Madras high court on Thursday permitted a dyeing unit in Tirupur to restart its operations after the Tamil Nadu Pollution Control Board (TNPCB) filed a report that the unit had complied with the all necessary requirements to achieve zero liquid discharge.The high court on January 28 ordered the closure of bleaching and dyeing units in the Tirupur area. It said they should not be allowed to operate...
Source : Times Of India | 7 Day(s) Ago
Category : City | City : Chennai

Tirupur spending crores on tech to revive dyeing industry

Source : CNBC-TV18The dyeing industry in Tirupur has come to a complete standstill. This is all because, the Madras High Court ordered them to remain closed till they completely stop environmental degradation. CNBC-TV18’s Swathi Narayanan reports more.Tirupur's dyeing industry once bustled with activity of 50,000 people. It now resembles a ghost town. The Madras high court will allow these units to...
Source : Moneycontrol | 7 Day(s) Ago
Category : Business

Jayalalithaa blames government on closed dyeing units

Tamil Nadu chief minister J. Jayalalithaa Saturday blamed the DMK government for the closure of around 750 dyeing units in Tirupur.The units were closed following Madras High Court orders on charges of polluting the Noyyal river."Had the Tamil Nadu Pollution Control Board (TNPCB) brought together the farmers along the Noyyal river and the Tirupur dyeing units and ensured that the latter achieve zero...
Source : Prokerala | 13 Day(s) Ago
Category : National | City : National

HC firm on shutting down polluting Tirupur dyeing units

declined to alter its order directing closure of all dyeing and bleaching units in the hosiery town of Tirupur for causing pollution despite its earlier directives.When Tamil Nadu pollution control board and Tirupur dyeing factory owners association made oral submissions seeking alteration of the January 28 order, a bench comprisingTaking a serious view of continued discharge of effluents into Noyyal...
Source : Times Of India | 17 Day(s) Ago
Category : National

Jayalalithaa blames government on closed dyeing units

Former Tamil Nadu chief minister J. Jayalalithaa Saturday blamed the DMK government for the closure of around 750 dyeing units in Tirupur.The units were closed following Madras High Court orders on charges of polluting the Noyyal river."Had the Tamil Nadu Pollution Control Board (TNPCB) brought together the farmers along the Noyyal river and the Tirupur dyeing units and ensured that the latter achieve...
Source : Newkerala | 13 Day(s) Ago
Category : Entertainment | City : Chennai

HC allows Tirupur units to use gensets

high court on January 28 ordered the closure of bleaching and dyeing units in the Tirupur area. It said they should not be allowed to operate unless they achieve zero liquid discharge.Tirupur dyeing factory owners' association filed a writ petition seeking to direct the authorities to restore power supply to their units to enable them to operate the necessary equipment to achieve zero liquid discharge...
Source : Times Of India | 6 Day(s) Ago
Category : City

HC asks for names of officials who failed to

asks for names of officials who failed to carry out court order in dyeing units caseordered the closure of all bleaching and dyeing units in Tirupur area, the court wanted the government to furnish the list of officials who had failed to implement court's earlier orders.On January 29, besides ordering the closure of all units in Tirupur area, the first bench comprising Chief Justice M Yusuf Eqbal and...
Source : Times Of India | 17 Day(s) Ago
Category : City | City : Ranchi

Madras HC orders immediate closure of dyeing units in TN

Published on Fri, Jan 28, 2011 at 17:46   |  Updated at Fri, Jan 28, 2011 at 23:58  |  Source : CNBC-TV18

Ads by GoogleStocks Ready To SoarHot News Alert, Huge Profits 1000%+ Stock Near Explosive Breakout Point www.otcstockexchange.com

n what comes as a blow to the textile industry in Tirupur, the Madras High Court on Friday ordered the closure of all the dyeing units in Tirupur. This move will cause a loss of Rs 42 crore to the knit-ware industry every day. CNBC-TV18's Swathi Narayanan reports in detail.
Stating the rational behind the move, the court said it had observed that the dying units were polluting Noyyal River in Tirupur and couldn’t function until zero discharge was achieved
This decision has, however, left the dyers association disappointed. "This would affect the 720 bleaching and dyeing units in Tirupur, which employ a total of 50,000-60,000 workers. Exports too will be hit; it will face a loss of Rs 10 crore a day," the union stated.

Close all dyeing units on Noyyal banks, says HC

TNN, Jan 29, 2011, 05.25am IST
Read more: Close all dyeing units on Noyyal banks, says HC - The Times of India http://timesofindia.indiatimes.com/city/chennai/Close-all-dyeing-units-on-Noyyal-banks-says-HC-/articleshow/7382925.cms#ixzz1CgQVQp4g

CHENNAI: Shut down all dyeing and bleaching units on the banks of the polluted Noyyal river in Tirupur district and disconnect electricity supply to them, the Madras high court directed the Tamil Nadu government on Friday. 

In a landmark ruling, the first bench, comprising Chief Justice M Yusuf Eqbal and Justice TS Sivagnanam, said criminal prosecution should be launched against the polluters. It also directed action against Tamil Nadu Pollution Control Board (TNPCB) officials who failed to comply with the court directions to prevent the pollution of the river. 

The bench said that no unit should be allowed to reopen and operate unless it achieves zero discharge of untreated effluents. The court was hearing a contempt of court petition filed by the Noyyal River Ayacutdars Protection Association

"We are fully convinced that unless stringent and deterrent action is taken by ordering immediate closure of the units, the water of the Noyyal river cannot be made free of the poisonous substances discharged from these units, and the water will not become fit for human consumption," the judges said. 

The matter relates to a series of litigations and judgments delivered by the high court and the Supreme Court since 1996 to ensure that the hundreds of dyeing and bleaching units in the Tirupur area achieved zero discharge of effluents into the Noyyal, a tributary of Cauvery. 

In 2006, a division bench of the court had laid down a comprehensive scheme and even stipulated a fine, ranging from six paise to ten paise, per litre of untreated effluent let into water bodies. Though it was stayed by the apex court, the order was lifted in January 2010, after extending the deadline a couple of times. 

In the contempt petition, petitioner's counsel V Raghavachari argued that pollution of the river had been continuing unabated since 2007 and the units had been discharging untreated effluents without paying any fine. Additional advocate-general P Wilson said closure orders had been issued to over 700 units. 

Court alarmed 

T Mohan, representing the court-appointed monitoring committee, said that since excess machinery installed by the units had not been removed, pollution level had increased in recent months. Even when electricity supply is disconnected, some units operate at night using generators, he said. 

Expressing alarm at the level of disobedience, the bench said the facts revealed a "very gloomy picture" as to the manner in which the Tamil Nadu Pollution Control Board (TNPCB) had dealt with the issue. 

The judges ordered the immediate closure of all dyeing and bleaching units in the area, making it clear that each unit and effluent treatment plant should be inspected by TNPCB officials as well as the monitoring committee. Only on the basis of their report could any unit be reopened and operated, they said. 

Any extra machinery and pipelines found installed in the units should be removed immediately. Units that failed to comply with the directions of the high court and the Supreme Court should pay fine for every litre of effluent let into the river, they said. 

Criminal prosecution should be initiated against violators of these orders and the pollution control board should furnish a list of officials in charge of affairs during the relevant point of time, they said. 

As they had failed to fully comply with the directions, of the court appropriate action may be taken against them, the judges said.

The Madras High Court ordered of closure of Dyeing & Bleaching units in Tirupur,

Saturday , 29th January 2011 06:24:22 PM

The Madras High Court ordered of closure of Dyeing & Bleaching units in Tirupur,
The Madras High Court has ordered the closure of all dyeing and bleaching units in Tirupur, which generates a fifth of India's textile exports. The move will affect around 720 units, employing 40,000-50,000 workers, and cause an estimated loss of Rs 50 crore a day. 

On Friday, the bench was hearing a contempt petition on the pollution of Noyyal River flowing through Tirupur. It observed that the dyeing units were polluting the river and couldn't function until zero discharge was achieved. 

"I cannot comment on the court order. But this would bring Tirupur to a standstill and would cause a loss of around Rs 50 crore per day to the industry. We have just come out of the yarn problem and now this has cropped up. Around 50,000 workers would be affected," said A Sakthivel, President of the Tirupur Exporters Association ( TEA )). "Exports would also take a beating because of this move." 

He urged the state and central government to consider the seriousness of this issue and come forward to bail out the units. 

The public interest litigation against the units was filed way back in 1996 and sought directions from the high court for a pollution-free Noyyal river. The petitioner who filed it said dyeing and bleaching units are discharging industrial effluents into the river, making the water unfit for irrigation and other purposes. Despite several orders for closure from the Madras High Court, no steps were taken, which led to the filing of the present contempt petition, the petitioner said. 

'No Tirupur without dyeing factories' 

The court strictly instructed the closure of these units and also directed the state pollution control board to initiate criminal prosecution of units which fail to rectify defects leading to pollution. "There is no Tirupur without dyeing factories," said N Murali, Tirupur Exporters and Manufacturers Association vice-president and Rajshree Exports managing director. He said it is not possible to comply with zero-level discharge as even the ground water and well water contains some salt. There are around 5,000 units in Tirupur engaged in various activities related to knitwear exports employing more than four lakh workers. The city is host to a number of knitwear export firms. 

"The industry is already struggling with high production cost due to 100% increase in cotton prices and 70% increase in cotton yarn prices in the last one year. The euro and dollar fluctuations have also been hitting us badly. Now this closure of all dyeing units will further dent our future," he added. 

Industry veteran and Tirupur Exporters' Association general secretary G Karthikeyan said the city itself will become idle without any dyeing activity. "We are facing a crisis, which has never been faced by the industry so far. 

Livelihood of nearly 10 lakh people living in Tirupur will be affected because of this action. The whole city is dependent on export activity," he added. When contacted, K Krishnan, secretary of Dyeing Association of Tirupur said: "All the running dyeing units in Tirupur have 'consent to operate' certificate from pollution control board. But the court wants a more appropriate certificate to prove zero-level discharge. We will plan our action after receiving the complete judgment copy."

 

High yarn prices impact clothing delivery schedules
November 09, 2010 (India)

Christmas and New Year are just around the corner and going by past experience, this should have been busiest time for all garment exporters from India, as they have to ship the inventories ordered by the retailers, well in time, so that it hits the shelves, before the shopping for the festivities begin. 

But according to the exporters, the delivery schedules are getting skewed, due to shortage as well as the ever-soaring prices of cotton yarn in the domestic market and will prove to be difficult to ship orders on time. 

Yarn makes up for up to 60 percent of the fabric cost and following the flare-up in raw cotton prices in the last few months, cotton yarn prices too have increased by between 35-40 percent for different varieties of yarn, since the beginning of the year. 

According to them, yarn exports have surged by 80 percent year-on-year, in the period January to June 2010, whereas clothing shipments have plunged 11 percent in the same period. 

To get to the depth of this peculiar situation, fibre2fashion spoke to Mr S. Sakthivel, Secretary of the Tirupur Exporters' Association, who said, “The impact of soaring cotton yarn prices is affecting badly, as we are not able to get orders, due to the high prices and the mill owners are also hiking the price every week, so we want immediate ban on yarn exports till the time we get stable delivery of yarn”.

When asked how he envisages the business during this festive-quarter, he replied by saying, “We expect that once yarn prices stabilize, we anticipate that there will be a good improvement in volumes of our shipment”.

Fibre2fashion News Desk - India

 

6 Nov, 2010, 02.19AM IST,AGENCIES
Surging cotton prices to make garments costlier

World’s Top Textile Suppliers Arvind & Next To Increase Prices By 8% To 15% In The First Quarter

CHICAGO: A doubling of cotton prices since February 1 may mean more expensive clothes, sheets and towels as textile mills including Arvind Ltd and retailers such as Next Plc pass along higher costs to their customers. Next, a Leicester, England-based clothing retailer, said on Wednesday it will raise prices as much as 8% in the first quarter because of the jump in costs. Arvind, the world’s largest denim maker and a supplier to jeans maker Levi Strauss and Gap, have raised prices by as much as 15%, Citigroup economists Rohini Malkani and Anushka Shah wrote in an October 11 report.

“We will have to wait and see if further price increases to reflect future cotton prices ultimately cause demand destruction,” Delta Apparel . Chief executive officer Robert Humphreys told analysts on an earnings conference call on October 28. The Greenville, South Carolina-based owner of Fun-Tees and sportswear maker MJ Soffe, plans to charge more for catalogue and private-label clothing, he said.

Cotton futures surged to $1.392 a pound on Wednesday in New York, the highest price in 140 years of trading, on signs that dwindling global supplies won’t meet mounting demand from China, the biggest user. Cotton’s 79% gain this year was the biggest on the Standard & Poor’s GSCI Index of 24 commodities.

“Retailers are going to be forced to up their prices,” said Andy Ryan, a senior-risk management consultant at FCStone Fibers & Textiles in Nashville, Tennessee. Consumers probably won’t see the increases until after the holidays, he said.

 Buyers of low-end products, where profit margins for retailers are thinnest, will be the hardest hit, said Armelle Gruere, a statistician at the International Cotton Advisory Committee in Washington.

The increased cost of cotton may boost the retail price of an average pair of jeans by about 40 cents, Gruere said. “For $10 or $15 jeans, you’ll notice the difference,” she said. World cotton demand is forecast to rise to 120.77 million bales for the season that ends July 31, up 2.6% from last year, the US Department of Agriculture said. Global use will outpace production by 4.09 million bales, the agency said.

A bale weighs 480 pounds, or 218 kilograms. “It’s a worst nightmare for a retailer to have to up their prices,” FCStone consultant Ryan said. Retail stores in the US are reluctant to raise prices because consumers have cut back on spending, according to Judith Russell, executive editor of the Apparel Strategist, a monthly newsletter on the textile industry.

To protect profit margins and limit price increases, some manufacturers will increase the amount of cheaper polyester fibers in clothing, rugs and car upholstery. Mill use of the synthetic fibre, a common substitute for cotton, surged to 22.4 million pounds (10,160 metric tonnes) in September, up 21% from the month before and 22% higher than a year earlier, the US Census Bureau said on October 28.

Polyester in China climbed to 83.43 cents a pound in the week ended October 28, up 40% from a year earlier, the National Cotton Council said. Cotton rose to $1.8075 a pound in China, an increase of 90%, it said. — Bloomberg

“We’ll see prices ease over time,” said Sharon Johnson, a senior analyst at First Capitol Group . “How quickly that happens, that’s the hard part.”




Date:02/11/2010
URL: http://www.thehindu.com/2010/11/02/stories/2010110252080700.htm

Back
Tamil Nadu

Centre, State government urged to control cotton yarn price
Staff Reporter

Textile, weaving industries have come under severe stress: association

‘Continuous increase in price will lead to closure of small and medium units'
Association wants cotton yarn brought under Essential Commodities Act

ERODE: The South India Textile Manufacturers' Association has appealed to the Central and State governments to come up with concrete measures to control the prices of cotton yarn.
Though the Central government claimed that it had taken efforts, the cotton yarn prices continued to increase in the domestic market, putting the textile and weaving industries under severe stress, association president M.S. Mathivanan said in a statement.
A majority of the spinning mills were giving importance for the export of yarn and holding it as stock anticipating further increase in the yarn prices, he alleged.
The continuous increase in the prices would lead to the closure of many small and medium weaving and knitting units in the country. This would render lakhs of people job-less. The Central and State governments should take a serious look into the issue and ensure adequate supply of cotton yarn to the domestic industries at affordable rates, he said.
The association also wanted the Central government to bring cotton yarn under the Essential Commodities Act in order to control the prices.
Meanwhile, the government, stating that there was a surplus in cotton, had permitted the export of raw cotton from November 1.
But the statistics presented by the government, which stated that there was a surplus of cotton, did not include the cotton consumption by the small spinning mills, Mr. Mathivanan pointed out.
Cotton farmers in the country were not the ultimate beneficiaries due to the increase in the prices and the export.
The benefits were going to the middlemen and the traders of cotton. The farmers were given only the minimum support price for their produce, he said.
© Copyright 2000 - 2009 The Hindu

 

Cotton prices to rule firm: Experts’ Say
Oct 28, 2010 (India) Courtsey TOI

Cotton market – the white gold market of our industry is known for price volatility. Industry experts and current market sentiments opine the Cotton Prices to remain high this year. Not to mention- it isn’t just a guess work! Rather, a set of factors determining this behavior of one of industry’s basics raw material market for the year through.

To locate these determinants, our News team at Fibre2fashion arranged for a few colloquies with dab hands in this field.

Mr Terry Townsend, Executive Director, International Cotton Advisory Committee (ICAC)Mr Terry Townsend, Executive Director, International Cotton Advisory Committee (ICAC), revealing the internal and external factors to price rise, said –“Stocks of cotton held around the world fell from 12 million metric tons at the end of July 2009 to an estimated 9.5 million tons at the end of July 2010. In addition, the world economy improved much faster than had been expected in early 2009, and demand for cotton products rose by more than 4% to 24.5 million tons in 2009/10. Furthermore, the strong growth in consumption is continuing during 2010/11, and world cotton stocks will tighten further this season. The momentum from the stronger cotton fundamentals during 2009/10, combined with continued growth in cotton consumption in 2010/11, is leading to higher cotton prices. “

Mr Townsend also highlighted the resultant movements of rising cotton prices. He described that there would be increased production and slower growth in consumption. Farmers will be encouraged to harvest all the cotton that is grown in 2010/11, even the latest-opening bolls, resulting in a rise in cotton yields because of increased harvesting efficiency. He also envisages that during 2011/12, governments and cotton companies will devote additional resources to providing cotton farmers with inputs, resulting in increased area and production a year from now.

Meanwhile, textile mills will increase their efforts to substitute polyester for cotton. “Consequently, world cotton production is likely to exceed 26 million tons by 2011/12, while consumption will probably rise to less than that amount, and prices will eventually correct,” avers the ICAC Director.

Further, Mr Townsend also expressed his dissatisfaction on government intervention and trade policies introduced in recent past. He spoke-”Recent developments in trade policies in response to commodity shortages have been worrisome. Just in 2010, governments have interrupted trade in cotton, cotton yarn and grains, setting precedents for further interventions in commodity markets in the future.”

He feels that, self-evidently, those policies interrupting commodity exports or imports result in immediate losses among trade partners. Distortions to trade in cotton harm the interests of cotton producers in all countries as reliable suppliers of raw material to textile industries, thus encouraging increased use of polyester by textile mills. Disruptions to trade have the effect of increasing price volatility in commodity markets.


Mr Townsend also shows his concerns for farmer community. He is worried that the farmers are among the first to feel the impact of policies to reduce international demand for commodities, and reduced industry confidence that market forces will respect, further discourage ginners, merchants and textile mills from making future investment in the cotton sector.

ICAC- Director supports his point by stating- “There is ample empirical evidence that countries that disrupt international trade by intervening in markets suffer a measurable increase in country risk premiums, not only for trade in the commodity of immediate interest, but also in many other products exported from that country. “

Mr Townsend also remarked –“As an alternative to encouraging rent-seeking behavior by industrialists seeking to profit from government interventions, all countries are encouraged to facilitate market-based price risk management strategies. Industries that become dependent on government intervention to manage stocks of inputs and the risks inherent in commodity markets are doomed to long term decline. “

Mr Suresh Kotak, Chairmam, Kotak & Co LtdAnswering our query on the causes of high cotton prices, the old hand in cotton world, Mr Suresh Kotak, Chairmam, Kotak & Co Ltd, commented–“Primarily, Price rise has been due to, global tight supply of cotton, which though external, has reciprocal chain effect on Indian price lines. The internal factors, however, are increasing Domestic mill consumption. The external factor of cheapness of Indian Cotton vs other growths, have also created greater demand.”

Mr Kotak also made mention of the consequent measures the market could adapt to. He told that the balancing work out has to be done and judicious measures have to be instituted so that farmer, the exporter and consumers; everyone’s requirement of availability is taken care of. He is of opinion that the governing bodies may resort to most important guiding tool i.e. Stock to Use Ratio. “The government is likely to go for 2 months National Inventory composed of Industry inventory and Trade inventory”, foretold Mr Kotak

Karachi Cotton AssociationIn order to get a holistic view on the matter, Fibre2fashion team with its heartily consolations, interviewed veteran from Pakistan cotton industry where under flood afflictions, the industry is washed out and confronting challenges. Mr Sohail Naseem, the Chairman of Karachi Cotton Association mentions –“Cotton Market, during coming few months, is to be under obvious tight situation due to recent flood damage in Pakistan which is now being estimated around 2 million bales valuing more than 700 million dollars, in addition to the loss of cotton crop more than 15 million peoples are being effected along with damage to the infra structure as well as properties.”

 

Bringing to notice, he said- “As you are aware that Pakistan cotton is early crop which normally start from August onward, many buyers at consuming country as well as local Pakistan spinners need to cover their requirements from August onward from Pakistan, which is unfortunately hit by the flood, thus resulting price hikes both locally and internationally. “

Thereon adding a bit of optimism in the atmosphere and concluding on positive note, Mr Sohail explained- “From October onward gradually crops start coming in market with Indian cotton first, followed by cotton from West Africa, CIS, USA, Australia and Brazil. Till to date we estimate that this 2 million bales damage/loss will be compensated by higher productions in India and US. We estimate that once other crops start coming in the market, things will be settled down, and market may be out of steam.”

Fibre2fashion News Desk – India

26 Oct, 2010, 02.14AM IST, S Sujatha & Madhvi Sally,ET Bureau
Govt mulls ways to rein in spiralling yarn prices

Read more on »yarn prices|policy|govt|commodities
COIMBATORE/CHANDIGARH: After failing to control cotton prices, the Central government now wants check yarn prices. Measures under consideration include introducing a new tariff line for yarn and imposing a count-wise duty on exported yarn. The Group of Ministers constituted for cotton and yarn is expected to take a decision this week, said an official in the ministry of textiles. “We will also collect count-wise yarn export data to find out whether the problem is limited to the finer counts or is more general,” he added.

Yarn prices have increased by `14 per kg in the last 25 days, putting it beyond the reach of small and tiny weavers and raising the spectre of job losses. But yarn manufacturers say curbs on exports is no solution as it is the result of expensive cotton. “When the raw material cost is increasing, how can prices come down? The government can artificially suppress yarn prices but till when? With huge yarn manufacturing capacity, we expect to have a surplus of 650 million kg of yarn after catering to the domestic market,” said SP Oswal, chairman of Ludhiana-based Vardhman group.

On Monday, Shankar-6, the widely-used Indian cotton variety was being quoted at `43,000 per candy at the spot market in Ahmedabad, compared to `22,000 per candy during the same period last year.

Due to a fast rise in production, there is ample yarn supply. “There is no shortage of cotton yarn in the country. The spinning industry is producing more. In the last three years alone, three million spindle capacity has been added in India,” said Confederation of Indian Textiles Industry & Textile Export Promotion Council (Texprocil) ex-chairman and Mumbai-based GTN Textiles chairman BK Patodia.

Statistics with the Office of Textile Commissioner in Mumbai show the country produced 2,948 million kg of cotton yarn in 2007-08 and exported 22% of it. In 2009-10, the country produced 3,073 million kg of cotton yarn and exported 19% of it. This year, production is estimated at 3,400 million kg and only 20% is likely to get exported. While makers of finer count cotton yarn are importing fine Egyptian cotton, others have shifted from producing coarser counts to finer counts with Indian cotton. “It is costlier and more time-consuming to produce 40’s count cotton compared to 20’s count. But it helps us to run the mill longer with less raw materials and so we are shifting to finer counts,” said P Natraj, managing director of Coimbatore-based `800-crore KPR Mills.

The company has 2.12-lakh spindle capacity and sells 75% of the yarn it produces to Tirupur exporters. Till now, finer counts made up only a third of its total output. But it is planning to increase this ratio.

“We are ready to supply cotton yarn to domestic fabric and garment manufacturers. But they are asking us to reduce prices, which is highly impossible in the days of rising cotton prices,” said a Tirupur-based spinner who supplies mainly to hosiery units.

Cotton prices are expected to increase in the coming days with mills and exporters starting purchases. Arrivals are in full swing in Maharashtra after Dusserha. The Dharangaon APMC in Jalgaon district is getting 10,000 quintals daily. The average price of cotton was `4000/quintal in the Darangaon APMC. Ginners as well as exporters are buying from the mandis in north Maharashtra region that sows cotton early. Arrival of Vidarbha cotton begins after a week. Exporters want to take a conservative approach to minimise losses due to the volatility in the international market. “The international cotton market is very volatile at this moment. Cotton prices in the international market have gone up by 25% during past two weeks and increased by 50% since August,” said Rohan Shah, partner of the Mumbai-based cotton export company, Bhaidas Cursondas & Co.

The newly-formed All India Cotton Ginners Association in its first meeting with the Union Commerce Ministry on Sunday highlighted chances of a likely shortage created by exports. “We might not be able to fulfill contracts,” said director Bhagwan Bansal.

 

EmergingTextiles.com

Cotton Market Price
Cotton Market Reaching All-Time High (Weekly Report)
25 October 2010 - New York's cotton market last Friday reached a price record not seen in the past 140 years. Global cotton buyers are no more expecting a sharp fall in prices later this season, finally covering their needs at record levels. All eyes are on India's excess production while New Delhi is urged by domestic textile industry to ban imminent cotton exports
Cotton Prices Boosted by Lower Forecast in China (Weekly Report)
18 October 2010 - Cotton prices continued surging in the past week although New York experienced a strong correction by last Friday. China further cut its production forecast and Chinese demand may maintain prices at record highs for months, as a result.
Cotton Prices Will Stay at A Very High Level (Weekly Report)
11 October 2010 - After Friday reaching a 15-year high in New York, cotton prices could now surge to an all-time record. India's export quota is already filled, forcing Chinese buyers to massively turn to the US cotton market. China will import more cotton than expected this season in addition, with Chinese demand therefore maintaining cotton prices at a very high level

21 Oct, 2010, 05.54AM IST
Courtesy : ET Bureau

No respite seen in cotton price rise


Read more on »cotton|confederation of indian textile industries
NEW DELHI: India may continue to witness high cotton prices beyond mid-December, even after the arrival of new crops and irrespective of changes in global prices.

Traders say prices could rise up to. 43,000/candy, weighing 356 kgs, since November arrivals are expected to be limited because of exports. High global prices are keeping Indian cotton farmers and  the farm ministry bullish on export sentiments.

During just 10 days to October 11, the textile commissioner’s office received applications for 5.5 million bales of exports, forcing the government to down shutters in a hurry.

Analysts expect that while prices could dip marginally after the US and Indian harvests come in, they would remain above $1/lb for several months on the back of unusually low stocks in the world market.

On Wednesday, New York December futures contract fell over 3% to $1.026/lb after the dollar rallied following China's surprise decision to increase interest rates and cool demand, encouraging investors to sell holdings of cotton. China is the world’s biggest cotton importer.

US cotton prices had hit highest level since the American Civil War on October 15, touching $1.198 on ICE FuturesUS.
At home, too, lower-than-average stocks to consumption ratio will likely keep prices high irrespective of the world development. “Any drop in prices after fresh arrivals in November will only be marginal,” said a Mumbai-based trader, adding that the 8% growth in domestic consumption and permitted exports of 5.5 million bales will keep prices firm.
India has allowed limited export of cotton, which will start on November 1 and must be completed by December 15, following a bumper crop. Up to Monday, October 18, 3.8 million bales (170 kg each) of cotton has already been registered for exports, according to textile commissioner.

Cotton prices in domestic markets are ruling at around . 41,000/candy, rising . 1,000 a candy over the weekend as mills began purchases.

Sections of the industry, including trade body Confederation of Indian Textile Industries (CITI), have criticised government’s view of an “exportable surplus,” warning that domestic cotton security would be endangered.
The industry has said that the carryover cotton from the last marketing season (October 2009 - September 2010) would run out by December 15, boosting local cotton prices.

Last month, CITI wrote to the Prime Minister seeking delay in exports till January. The industry body also wants the government to keep the exports staggered.

Textiles secretary Rita Menon ruled out any possibility of export quota being cut, which is sure to keep prices firm. Domestic prices rose rapidly to . 41000/candy in August after exports were opened up in August.

After taking stock of the flood impact this summer, the Centre chose to delay the date for starting exports by a month. That caused prices to fall to . 36,000/candy but they gained again once export registration started.
In the local market, the marketing season for cotton has been delayed by a month which is straining supplies and keeping prices firm. Mills have already hiked prices by 10-15 %.

Domestic consumption of cotton is pegged at 270 lakh bales while production in 2010-11 is estimated at 325 lakh bales. Exports touched a record 8.3 m bales in 2009-10 , forcing prices to shoot up in the home market.

1 Oct, 2010, 04.23AM IST, S Sujatha & Madhvi Sally,ET Bureau
Cotton rally forces textile mills to go for small buys

COIMBATORE & CHANDIGARH: With cotton prices at a 15-year high, textile mills are looking to buy the commodity in smaller quantities instead of the usual bulk purchases they do in the first six months of the new season. The mills are also planning to hold stocks for two months instead of six months.

And the companies fear that the prices will only increase with exporters on a buying spree to ensure shipments for November. The prices of Shankar 6, a much-sought-after variety, is ruling at Rs 38,500 per candy when compared to Rs 22,500 per candy during the same period last year. While cotton prices have increased by 70% in the past one year, yarn prices have moved up by around 50%.

The 30s count yarn was selling at Rs 125 per kg during the last week of September 2009 but it is ruling at Rs 185 per kg now. The 40s count yarn prices have jumped to Rs 197 per kg from Rs 132 per kg last year. For textile mills, the October-March period is crucial during which they will buy cotton in bulk quantities and store it for the rest of the year.

The Ludhiana-based Nahar group, which consumes 10 lakh bales annually, is procuring cotton on a day-to-day basis. “We have a daily requirement of 3,500 bales (one bale weighs 170 kg) but are procuring 1,700 bale due to the spiralling rates,” said Nahar group’s raw material general manager Ashok Kapoor. The company is procuring Punjab’s J-34 variety for Rs 3,660-3,700 per maund (one maund equals 37.3 kg).

“We have to buy left, right and centre. But, instead of holding stock for longer period, we might opt for two months’ stock,” said Coimbatore-based Rs 803-crore KPR Mills managing director P Natraj. The vertically-integrated KPR group, which has a 2.12-lakh spindle capacity, sells 75% of the yarn it produces to Tirupur exporters while the rest is consumed internally.

Most garment manufacturers have even started getting orders for cotton blended with polyester to cut cost. Ludhiana-based Venus Garments (India), exporter of knitwear to international retailers like Wal-Mart, Old Navy and Tom Tailor, has since the past two months started manufacturing polyester-cotton blend knitted garments for a few clients.

“There is a cost-saving of over 10% with polyester filament prices at Rs 80-100 a kg,” said Venus Garments managing director Anil Jain.

For the Rs 208-crore Ambika Cotton Mills, which produces compact yarn used for shirting purpose, the dependency on local cotton is around 40% of its total requirement.

“We import long-staple cotton from abroad and we have no issues on that. But on the local front, we are struggling to get cotton despite being ready to pay international prices,” said Ambika Cotton CMD PV Chandran. He added that there were concerns of ginners blending long-staple cotton with short-staple varieties after January. Spinners are now mulling an increase in yarn prices. Confederation of Indian Textile Industry deputy chairman and Coimbatore-based Rs 355-crore Bannari Amman Spinning Mills managing director SV Arumugam said the association has to raise yarn cost to offset the increasing cotton prices. “We are meeting on October 1 to decide on yarn price increase,” he said.