IBTEX No. 48 of 2016 March 04, 2016
USD 67.29 | EUR 73.63 | GBP 95.26| JPY 0.59
Spot Prices of Overseas Ring Spun Yarn in Indicative Prices of Cotton Grey Fabrics in China Chinese Market Date: 3 Mar-2016 FOB Price Date:3 2-Mar-2016 Price (Post-Tax) (Pre-Tax) Description Prices Prices (USD/Kg.) (Domestic Production) (Yuan/Meter) Country C32Sx32S 130x70 63” 2/1 fine 20S 30S 7.20 Carded Carded twill India 2.10 2.30 C40Sx40S 133X72 63” 1/1 poplin 6.40 Indonesia 2.81 3.26 C40Sx40S 128X68 67” 2/1 twill 6.00-6.20 Pakistan 2.22 2.60 24Sx24S 72x60 54” 1/1 batik Turkey 2.60 2.80 4.60 Source CCF Group dyeing 20Sx20S 60x60 63” 1/1 plain cloth 6.20
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NEWS CLIPPINGS
INTERNATIONAL NEWS No Topics 1 Call to adopt BT cotton production 2 Pakistan: Govt importing 50 lac cotton bales to meet local demands 3 Hopes raised Turkey can save Nigeria textile industry 4 Cambodia Mulls Joining TPP to Boost Trade 5 Time to put the TPP out of its Misery? 6 Pakistan textile mills finally get 24-hr gas supply 7 Dhaka: Decision to import cotton, capital machineries via Pangaon terminal suspended 8 Bangladesh: Raw materials import-RMG export gap raises questions NATIONAL NEWS 1 Panel proposes 70% reduction in royalty on GM cotton seeds 2 Weaving Wonders… Her Way 3 Cotton futures edge lower on sluggish demand 4 From the fashion pool 5 Saris, gowns, textiles - A showcase of Banaras repertoire
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INTERNATIONAL NEWS
Call to adopt BT cotton production
As debate on production and consumption of genetically modified organisms (GMOs) rages on, Zimbabwe needs to make a decision as other countries in Africa are either carrying out controlled trials or have already gone commercial.The cotton production sector in many countries, Zimbabwe included has suffered depressed yields due to unattractive buying prices, as well as higher production overheads.
The sad reality saw countries extensively researching to find a panacea to resuscitate the planting of the white gold as farmers had shunned the crop opting for highly paying crops like tobacco and soya beans. Downstream effects caused by the low cotton yields were also felt in the oil production as well as the ginning and clothing manufacturing industries in most countries.
Sudan suffered the same fate as other cotton producing countries in Africa but found option in planting genetically modified cotton also known as BT cotton to ameliorate the situation. To date the country’s hectarage of rain- fed and irrigated cotton fields have tremendously increased as farmers get higher yields per hectare increasing their income from the crop.
This is an area on which Zimbabwe needs to carry extensive research to understand the advantages and disadvantages of the crop.
Scientists state that BT, short for Bacillus Thuringesis, is a natural bacteria that is always present in the soil which has a gene that instructs the production of toxins that kills the catastrophic bollworm which feeds on cotton balls affecting negatively quantities farmers harvest.
Monsanto is said to be the developer of the BT technology and has held the patent for a long time. The patent has since expired and now everyone is free to research and develop the BT gene. Dafulin Kaonga, the chief executive officer for the Cotton Board of Zambia said scientists identified the BT gene and inserted it in cotton seeds making the plants produced poisonous to bollworms.
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“The African bollworm can lay more than 200 eggs at one time which ends up its life cycle as a moth. Each level in the cycle is destructive as it will be feeding on the cotton balls.
The BT is a natural bacteria common in the soil which was scientifically inserted in conventional cotton making it poisonous to bollworms protecting the crop from damage thereby increasing the cotton yields,” Kaonga said.
Scientists mention that thuricide is a common pesticide usually used by organic farmers to protect their crops as it does not have negative side effects to human being and the environment. They say human beings have actually consumed the gene many times as research points out that sweet potatoes are a natural GMO.
In an experience sharing visit to BT cotton fields in Sudan arranged by COMESA for member countries, farmers interviewed said BT cotton gives a better yield than conventional cotton as it is not affected by bollworms, which are a menace to cotton production across Africa.
The farmers said since they embarked on BT Cotton, they had seen their yields double or even treble and this has changed positively their living standards.
The Sudanese Ministry of Agriculture and Forestry put the yield of conventional cotton at slightly above 1,3 tonnes per hectare and BT cotton at 2,7 tonnes.
Cotton experts from various COMESA countries called for COMESA countries’ governments to take on trials as well as research on the efficacy of BT cotton.
COMESA biotechnology policy advisor Getachew Belay said there was need for countries to carry out research in BT cotton as this will assist them to understand the crop better.
He said this will put to rest the current negative perception on BT cotton. “There is need for partnerships in research on BT cotton which includes farmers themselves, the government and regulatory authorities.
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“Countries like Swaziland and Malawi have already running BT cotton trials which is a positive step towards improving cotton production in their countries.
“Zimbabwe and other COMESA countries can also carry out controlled field trials to ascertain the advantages and disadvantages of the crop before going commercial as countries have different climates.
“For any country to move forward, there is need for political will as shown by the Sudanese government which has made a bold decision on the commercialisation of the crop and this has seen an increase in the production of BT cotton. Notably Sudan is the only country in COMESA planting BT cotton,” he said.
Belay said there was also need to harmonise policies in COMESA countries as currently the GMO policy states that countries have a choice on whether to take on board production of GMO crops or not. “We intend to set up a panel of experts to deal with GMO crops and these will be advising COMESA countries to have a common understanding on the crops’ production.
“There is need to see that GMO crops are not harmful to human beings and the environment.
“Actually they preserve the environment as harmful chemicals are not released into the atmosphere by farmers during sprays to control pests and this saves a lot of human beings and animals as most farm chemicals tend to be poisonous,” he said.
The Sudanese tour managed to address a major concern amongst ecologists on the fear of the bollworm developing resistance to the BT toxin.
Experts said this may be addressed by the use of a refugia crop which has to be 5 percent of the total hectarage, that is a conventional cotton variety that does not have the BT gene. The refugia provide an alternative host to bollworms thus sustaining the other fraction of bollworms that are not exposed to BT toxin.
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Although conventional cotton is normally used as the refugia crop for BT cotton, in Sudan, farmers use sorghum which is a very attractive host to the bollworms in the process saving their cotton from attacks.
In its global status of commercialized biotech crops the International Service for the Acquisition of Agri-Biotech Applications mentioned that GMO crops production has increased by 3 to 4 percent as a record 18 million farmers in 28 countries planted 181,5 million hectares of biotech crops in 2014 compared to 2013.
Source: southernafrican.news– Mar 03, 2016 HOME *****************
Pakistan: Govt importing 50 lac cotton bales to meet local demands
Government is reportedly spending around Rs 118 billion to purchase at least 50 lac cotton bales to meet local demands, Dunya News reported Thursday.
According to the Cotton Ginner Association, yields in the current year were affected badly by weather shifts. Indigenous harvests amounted to around 97 lac cotton bales out of which textile mills have bought 85 lac bales.
Textile sector has to import 50 lac bales to meet annual need of the country that is around 1.5 crore bales.
Until today, Rs 43 billion have been spent on cotton import in the ongoing year.
Source: dunyanews.tv– Mar 03, 2016 HOME *****************
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Hopes raised Turkey can save Nigeria textile industry
A Nigeria financial think-tank believes relations between Nigeria and Turkey could help revive the former’s textile and apparel industry.
First Bank of Nigeria (FBN) Capital noted the industry was currently underperforming amid the influx of cheaper fabrics from China and India.
It has been reported there are about 30 operational textile mills which are running at an average of 40 percent of installed capacity.
Most manufacturers within the industry have cited the high cost of financing as a major hindrance.
The observation was made to coincide with Turkey President, Tayyip Erdogan, led a delegation from his country on a state visit to Nigeria.
“We understand that government officials from Turkey are currently visiting Nigeria. Turkey is an important cotton producer and has a well-developed domestic textiles industry,” FBN Capital said on Thursday.
The textile industry is presently struggling but measures have been put in place to revive it.
Textiles feature in the Central Bank of Nigeria’s circular of June 2015, specifying 41 import items for which foreign currency from official sources is not available.
Government placed a ban on textile importation in 2010 in order to encourage domestic production.
“However, this led to increased smuggling,” FBN Capital noted.
Smuggled imported textiles are said to account for over 85 percent of fabrics sold locally.
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According to National Bureau of Statistics, Nigeria spent N24,7 billion (US$130 million) on textile imports in the third quarter of last year, representing a 17 percent decline.
Source: cajnewsafrica.com - Mar 03, 2016 HOME *****************
Cambodia Mulls Joining TPP to Boost Trade
In the coming couple of years as the Trans-Pacific Partnership (TPP) inches its way toward implementation, Cambodia will be charting a path to join the now 12-nation trade deal that its ASEAN neighbors—Brunei, Malaysia, Singapore and Vietnam—are already a part of.
With Vietnam poised to benefit the biggest from the TPP, neighboring Cambodia with its existing advantages in apparel and textile manufacturing, could face stiffer competition.
At present, Vietnam already far outpaces Cambodia in terms of exports to the U.S., with Vietnam sending the States $11.29 billion worth of textiles and apparel in 2015 compared to Cambodia’s $2.5 billion.
Cambodia’s commerce minister Sun Chanthol thinks finding a way into the TPP agreement would be worth the effort for the country.
“I believe that Cambodia is a small but open nation,” he told VOA Cambodia. “We don’t forbid a lot of things in Cambodia. Hence, if we sign a lot of bilateral agreement with other nations in the world, it is a really good thing for Cambodia.”
Where intellectual property rights are concerned, however, Chanthol expressed concern for the country’s difficulty in fulfilling certain requirements as outlined in the TPP because of the host of counterfeit products in the country.
That aside, the low or zero tariffs TPP would provide for its member nations would help increase Cambodia’s garment exports to the U.S., he said.
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The commerce minister and other ASEAN ministers reportedly discussed the deal at the U.S.-ASEAN Summit in California earlier this month, mulling plans to delve further into the deal’s prospects.
“The U.S. has talked about conducting a workshop to explain to the nations that are not yet TPP members to understand the agreement,” Chanthol told VOA. “Hence, we are preparing to understand more and explore the TPP deal from the U.S. Let them explain to us the related points to the work, the environment, and so on.”
Source: sourcingjournalonline.com - Mar 02, 2016 HOME *****************
Time to put the TPP out of its Misery?
After the Super Tuesday Primary results, more and more U.S. Congress members who supported fast-tracking the TPP last year are now finding reasons to oppose the deal. With no significant presidential candidate supporting it, isn’t it time to abandon the pretense there’s any chance the deal’s ever going to go ahead?
TPP: Signed but not agreed
The 12 countries negotiating the TPP signed an agreed text on Feb. 3. They now need to ratify it. To simplify a complicated position:
The U.S. Congress has 90 days to ratify the TPP once the president submits it for approval.
Once the Congress has approved it, the president must certify that all other partners have faithfully implemented the agreement.
Once all 12 partners have ratified the TPP, it becomes effective two months later. If all have not ratified by February 2018, but at least six— accounting for 85 percent of the TPP group’s total GDP—have ratified, it becomes effective in April 2018. If the TPP does not receive 85 percent ratification by February 2018 (and it can’t if America has not ratified by then), the process collapses.
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U.S. politicians change their tune
The three major current presidential contenders—Trump for the Republicans, Clinton and Sanders for the Democrats—are now all solidly opposed to the TPP. Of the two other Republicans still seriously fighting, Cruz is opposed and Rubio—once a staunch supporter—is avoiding comment.
Former TPP supporters in Congress, like Senate Majority Leader Mitch McConnell (R-Ky), Senate Finance Committee Chairman Orrin Hatch (R- Utah), and former U.S. Trade Representative Senator Rob Portman (R- Ohio), have spent the past few months finding reasons to oppose TPP.
As views stand right now, there’s no chance the TPP would pass through Congress. No one is now seriously suggesting the TPP should be submitted to Congress before the November presidential elections. President Obama, though, told America’s National Governors Association on Feb. 22 he was going to send “some sort of implementation documents to Congress at some point this year.” As things stand, that can mean only between the elections and the end of the current president’s term in mid-January, a suggestion that creates real problems, like:
The improbability of Congresspeople who’d campaigned against TPP in November changing their views again
Even were Congress to approve the pact, the president then has to certify other countries have faithfully implemented it. It’s impossible to imagine that could be done properly before mid-January: practically certain Obama’s successor would simply refuse certification if the process weren’t complete before Obama leaves.
Is the TPP now a walking corpse?
A lot can happen in 10 months, and it’s never safe to say “never” in politics. But, barring some spectacular change in America’s political landscape (like Michael Bloomberg choosing to run, and then winning) it looks practically certain TPP won’t make it onto the U.S. statute books before February 2018.
In just about every way that matters, it’s dead.
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The deal’s clearly still important to many politicians and it’s unlikely President Obama will admit defeat until his last day in office. But for anyone planning the next few years in the apparel industry, the overwhelming likelihood has to be that there won’t be a TPP.
Even if there were a TPP, of course, it couldn’t become fully effective till mid-2024 at the earliest: until then, the U.S. will continue imposing some import duty on apparel from Vietnam.
But even that’s a remote possibility. Apparel brands and retailers currently look as unlikely to import Vietnamese apparel duty-free into the U.S. before 2030 as I am to write this article in Vietnamese.
Does it matter?
For U.S. and Canadian brands and retailers? In competitive terms, probably not. The lack of a TPP hits everyone in the same way.
But TPP did offer lower-cost manufacturing alternatives, especially in Vietnam. Retailers and brands probably wouldn’t have given all those cost savings away in lower prices, so losing TPP would be lost profit opportunities – at a time their shares are all under pressure.
That’s all the more reason, I’d argue, for switching attention now to how to make more money in a world without an imminent prospect of a TPP.
For businesses planning Vietnamese investments, it matters a bit. Vietnam offers duty-free access to Japan, Australia, New Zealand and China already. Vietnam’s duty-free deal with the EU looks likely to be ratified in the next two years (though full duty-free access for apparel is still going to take a further seven years), and even without duty-free status Vietnam’s prices to the U.S. and Canada are generally competitive. But those investments aren’t going to be quite as remunerative as Vietnam boosters thought.
For U.S. government strategists, it certainly matters. TPP was an opportunity for the U.S. to shape the rules controlling 21st century trade across the Pacific, which now risks being lost. That’s why the current administration will keep pushing for its ratification.
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It’s why—in spite of opposition to TPP—the Democrat that appears most likely to win the presidency might seek a TPP 2 quite quickly. And why that TPP 2 will have to lose some of the features that alienated core Democrats.
What should the apparel trade do?
I’m arguing it should forget about TPP till after the presidential elections. Though the Republicans supported TPP, Trump— at present the likeliest Republican presidential candidate—would be implacably opposed to a TPP in any form.
The likeliest Democrat candidate, though, might well create an opportunity for a daughter-of-TPP that gave the apparel industry most of what it wants, without features like Investor-State Dispute Resolution, or absurdly secret negotiations.
And it would help advocates of such a program if the industry helped explain, as it’s failed to throughout the eight years America’s been involved with TPP negotiations, why TPP’s benefits to our industry helps average Americans.
Source : sourcingjournalonline.com - Mar 02, 2016 HOME *****************
Pakistan textile mills finally get 24-hr gas supply
In a huge relief to Pakistani textile mills in the Punjab province which had been reeling under an energy crisis, Sui Northern Gas Pipeline Limited (SNGPL) has started supplying gas to the mills round-the-clock after almost six years.
The announcement follows the arrival of the first liquefied natural gas (LNG) shipment from Qatar. Punjab textile mills, which were presently receiving gas just for four-six hours a day, started getting re-gasified liquid natural gas from Wednesday night at a cost of $6.66 per Million British Thermal Unit (MMBTU), according to media reports in Pakistan.
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The total demand of the Punjab textile mills captive power plants is around 200 MMCFD. The gas supply to mills will also save electricity of 1000MW, which can be diverted to other industries.
The Sui Northern Gas Pipelines Limited had posted the price of RLNG supply on 24x7 basis and the industry had started securing allocation of gas for the current month.
All Pakistan Textile Mills Association (APTMA) former chairman and patron-in-chief Gohar Ejaz said that with the supply of RLNG, the Punjab industry's problem of disparity, affordability and viability has been resolved to a large extent.
He said that the industry had been asking for availability of energy at affordable price to compete regionally. The government had been supplying RLNG at $9.8 per MMBTU, which has been reduced to $6.66 per MMBTU from Wednesday night.
Gohar Ejaz said that a regular supply of RLNG on 24x7 basis would clear the production scenario ahead. Until the Qatari shipment came, the SNGPL was supplying gas for four hours a day at present at Rs 7 per MMBTU. The situation would change altogether with the addition of RLNG to the system at a regionally affordable price, he added.
Ejaz was of the view that injection of 400 MMCFD LNG into Pakistan's gas transmission and distribution system will immediately stimulate economy, particularly the large scale manufacturing (LSM).
He said that the textile industry is vying to reduce its cost of doing business, particularly the cost of energy, which is almost 60 per cent higher as compared to the regional competitors.
“Electricity to the textile industry in the region is not more than 9 cents per kilowatt hour against 14.5 cents per kilowatt hour in Pakistan at present,” he added.
APTMA Punjab chairman Amir Fayyaz said that only the continuity of textile industry operations can ensure exports and employment in the country.
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“If the government properly patronised the industry, we have the potential to convert our current value added exports of Rs 5 billion into Rs 15 billion per year.”
Source: fibre2fashion.com - Mar 03, 2016 HOME *****************
Dhaka: Decision to import cotton, capital machineries via Pangaon terminal suspended
The shipping ministry Thursday suspended its decision on the import of raw cotton and capital machineries through Chittagong-Pangaon container terminals.
The decision was suspended at a meeting following an application by container owners.
The application stated that their expenditures increased by bringing goods from Chittagong to Pangaon container terminal.
The meeting also formed a 12-member committee to submit a report on goods handling within 10 days. Shipping Minister Shajahan Khan presided over the meeting while Shipping Secretary Ashok Madhab Roy, BIWTA Chairman Commodore Mozammel Haq, Pangaon Terminal Manager Ahmedul Karim were present, among others.
In the meeting, Bangladesh Textile Mills Association (BTMA) said most of the textiles mills are situated in and round Dhaka. Therefore, the use of Pangaon port would be good for BTMA, according to a news agency.
Source: thefinancialexpress-bd.com - Mar 03, 2016 HOME *****************
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Bangladesh: Raw materials import-RMG export gap raises questions
The country imported a substantial volume of raw materials, especially raw cotton, cotton yarn, woven fabrics and synthetic fibres, last year to feed local textile and ready-made garment (RMG) industries, said industry insiders. Import of key raw materials had increased by about 5-10 per cent last year despite a comparatively slow growth rate in RMG export.
The sector saw a 4.08 per cent export growth in the last fiscal year, 2014- 15. However, it failed to keep pace with the growth of imported input.
According to Bangladesh Textile Mills Association (BTMA), the country imported about 1.32 million tonnes (6.1 million bales) of raw cotton in 2015, up by 10 per cent from 1.20 million tonnes (5.5 million bales) last year. At present, local textile mills meet 90 per cent of the demand for raw materials for knitwear sub-sector of the apparel industry and 40 per cent for woven sub-sector.
The country imports more than 95 per cent of cotton to feed the industries, as the domestic production can hardly meet 3-5 per cent of the country's total demand. Last year, it produced about 1,45,000 bales of cotton.
To bridge the gap, the country also imported some 0.29 million tonnes of cotton yarn, 0.48 million tonnes of woven fabrics and 92,577 tonnes of knitted fabrics last year, as against 0.28 million, 0.45 million and 67,061 tonnes respectively in the previous year.
Import of synthetic fibres, like - Polyester and Viscose staple fibres, marked a substantial growth last year.
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The millers imported some 68,726 tonnes of Polyester Staple Fibre and 29,542 tonnes of Viscose Staple Fibre last year, as against 51,729 and 18,846 tonnes, registering a growth of 32 per cent and 56 per cent respectively.
According to BTMA, the demand for synthetic fibres has increased in recent days, as these can easily be blended with cotton to produce mixed cloths. "At present, some 50 mills are using synthetic fibres as against 5-7 mills a few years ago," said an executive of the association, expecting more use of the fibre in the coming days.
Spinning sub-sector is producing cotton yarn, polyester, synthetic yarn, woollen yarn and blended yarn mixed of cotton and polyester of different counts (mostly up to 80 counts).
The country experienced a notable growth in import of RMG raw materials. But export of RMG, both knits and woven, failed to keep pace with import of basic raw materials used to produce finished products, raising question among millers about the proper use of imported raw materials. Many industry insiders, especially textile millers, attributed the reasons to leakage of imported raw materials especially the fabrics into the local market.
The Directorate of Customs Intelligence and Investigation (DCII) had seized a huge quantity of fabrics from various parts of the country in recent days. The National Board of Revenue (NBR) has decided to go tough on errant traders, who were allegedly misusing the bonded warehouse facility. Under the facility, the export-oriented industries are allowed to import duty-free fabrics.
At least 80 per cent of the fabric imported under this facility must be exported, while the rest 20 per cent are allowed as waste. But according to NBR, a section of businessmen misuse the bonded warehouse facility by selling duty-free imported raw materials and finished goods in local market instead of using them in their own production line.
The Transparency International Bangladesh (TIB) in a recent report on the garment supply chain accused factory owners of selling unused materials in local market, as they import duty-free raw materials in higher quantity than the amount required.
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Members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), however, denied the allegation of selling imported fabrics in local market by apparel makers. Asked about the gap between export of RMG and import of raw materials, they pointed out that the yarns produced from the cotton are used by various sub-sectors.
"Besides RMG sector, the yarns are being used by various weaving sub- sectors, like - specialised textiles, handlooms and knitting and hosiery factories, across the country," said BGMEA former president and Envoy Group managing director Salam Murshedy. A large number of handloom and weaving factories in the country are using yarns of various counts to produce traditional items, like - saree, lungi, napkin, bedcover and bed-sheet etc.
According to industry sources, they are producing more than 100 million metres of cloths annually. The RMG exporters also attributed the sluggish export growth to prolonged political unrest and a series of disasters, including Tazreen factory fire and Rana Plaza collapse, which severely hit the export growth of the sector.
Source: thefinancialexpress-bd.com - Mar 04, 2016 HOME *****************
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NATIONAL NEWS
Panel proposes 70% reduction in royalty on GM cotton seeds
The nine-member cotton seed price control committee has recommended a maximum sale price of Rs800 for a 450g packet of Bollgard II Bt cotton seeds.
A government panel on genetically modified Bt cotton has recommended a steep reduction in royalty fees payable to technology companies, and lower seed prices.
If accepted, the recommendations will benefit nearly 8 million cotton farmers in India, but may raise concerns about how India views its intellectual property rights regime. They will deal a blow to technology providers such as Mahyco Monsanto Biotech (India) Pvt. Ltd (MMBL).
The nine-member cotton seed price control committee, formed by the centre on 27 January, has recommended a maximum sale price of Rs.800 for a 450g packet of Bollgard II Bt cotton seeds.
The packets are currently sold for Rs.830 per packet in Maharashtra, Rs.930 in Telangana and Andhra Pradesh and Rs.1,100 in northern states such as Punjab and Haryana.
Further, the committee has suggested a 70% drop in royalty fees that domestic seed companies pay to providers of the patented genetically modified technology.
The panel has suggested a reduction in trait fees from Rs.163 per packet to Rs.49 per packet, a person aware of the development said, requesting anonymity.
The decision was taken at a meeting held on Wednesday, the person added.Domestic seed companies are set to gain from this order, as they will be paying lower trait or royalty fees to technology providers such as MMBL.
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MMBL, a joint venture between Mahyco Seeds Ltd and Monsanto Co., a global technology provider of GM seeds, licenses its patented Bollgard II Bt cotton seed technology to 49 seed companies in India in exchange for a royalty fee.
Over 90% of the cotton grown in India is based on this technology.
The recommendations of the committee have been sent for the agriculture minister’s approval and a final decision will be taken soon, the person cited above said.
The committee suggested the steep reduction in royalty as the Bollgard II technology’s ability to resist pest attacks has weakened over the years, the person said, adding, “as farmers’ crops in several states have been damaged by the pink bollworm, the committee thought they must not be paying a high price for the technology”.
A drastic reduction in trait fees could mean substantial losses for MMBL. The company, in an emailed response, said it does not comment on the specifics of its financials.
According to domestic lobby National Seed Association of India, MMBL collected Rs.4,479 crore in royalty fees between 2005-06 and 2014-15.
“All amounts collected towards trait value till date are in accordance with payment terms that form part of extensively negotiated private contracts with the respective seed companies,” an MMBL spokesperson said, adding that “it is also important to note that the trait fees at current levels only constitute 1-2% of farmers’ cost of cultivation and are also the lowest in the world”.
The centre’s approach seems to be ham-handed, and the government should respect contracts between companies and on patented technologies, said Avinash Kishore, a research fellow at the International Food Policy Research Institute, Delhi.
“The recent round of price controls in pharmaceuticals and cotton seed is like going back to the (pre-liberalization) control raj days,” he adds.
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The agriculture ministry on 7 December last year issued a price control order to bring uniformity in Bt cotton seed prices, as several states such as Maharashtra, Andhra Pradesh and Telangana brought in their own price control orders.
The other reason, according to the ministry, is to make Bt cotton seeds affordable for farmers.
MMBL has petitioned the Delhi high court to quash certain provisions in the price control order, specifically those allowing the centre to determine royalty fees. The court will hear the case on 4 March.
On 27 November last year the agriculture ministry approached the Competition Commission of India (CCI) against MMBL, alleging that the company was charging unfair trait or royalty fees for its Bollgard II technology.
CCI ordered an investigation on 17 February after a preliminary finding that MMBL abused its dominant position in the seed market by setting unfair and high trait fees.
India approved the genetically modified Bt cotton technology for commercial cultivation in 2002. The selling point of the technology was its resistance to the bollworm pest that reduced use of pesticides.
While the technology helped India become the world’s second largest producer and exporter from a net importer of cotton, in recent years, resistance of Bt cotton to pest attacks has become a recurring issue.
Source : livemint.com, Mar 04, 2016 HOME *****************
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Weaving Wonders… Her Way
Rashmi Verma, who recently joined the Ministry of Textiles (Government of India), as the new Secretary, is making all the right moves to give exports from this all-important industry a leg-up.
Rashmi Verma, an IAS officer of 1982-batch of Bihar cadre, a postgraduate in political science and an MBA from the University of Hull (Yorkshire, England), has recently taken charge as Secretary, Ministry of Textiles, Government of India. Rashmi, who previously held the charge of Special Secretary at the Department of Revenue in Finance Ministry, feels strongly that in this new role she would be able to make a difference, which she has always strived to do since the beginning of her career.
She feels the department is well placed to boost manufacturing, grow exports and generate more employment. “This industry, being the highest employment provider in the manufacturing sector, has a much bigger role and responsibility,” she says.
In a bid to set the ball rolling on many fronts, the Textiles Secretary says she has already started discussions with key stakeholders; her recent endeavours are related to countering the new challenges arising out of India’s rather lethargic efforts to innovate, diversify and move up across value chain in the textile sector.
She feels that technology issues and non-existence of FTAs with European Union, US and Canada are challenges for India’s apparel exports. She points to the need for bridging the gap in the value chain so that Indian exports comprise of apparels rather than cotton and yarns.
Another area that she is actively involved in is creating a robust, efficient marketing platform for Indian manufacturers. She understands that though textile manufacturers are making some of the finest products, they have not been able to market them effectively. Also, with regards to stringent labour laws, she tells us that her office has taken up this issue with the Labour Ministry and she is hopeful that very soon there will be some good news for people working in the sector.
When asked, if as a woman, it has ever become tricky for her juggling between her two roles – one as an efficient administrator and the other of caring for her family – she said that she regards the work-family equation
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News Clippings as a very fine balancing act which these days many women have to manage. “On work-family balancing, my motto has been: when I am in office, I am 100% in office and when at home, I am 100% for my family. So far, the approach has effectively worked for me,” she concludes.
TDB: What are some of the immediate challenges that you see engulfing the textile sector? Please tell us about your endeavours in this regard.
Rashmi Verma (RV): Since I joined, the most immediate challenge which I noticed is that although the textile sector has huge potential yet we are not able to attract new investments into this sector. Another equally big area of concern pertains to the very composition of our domestic textile sector – 80% of our textile sector is still unorganised. This large chunk includes a majority of our handloom weavers, the powerloom weavers and the handicraft artisans.
The challenge is in bringing them into the mainstream and in ensuring they get proper training skills, designing inputs etc.
Also, the biggest problem our manufacturers in the unorganised textile sector are facing is lack of access to credit and working capital – so we need to find ways to link them to government’s scheme such as Mudra, etc. These are the aspects that are presently in our focus.
Talking about the remaining 20% that represents our organised sector in textiles, the situation is not very encouraging there either. There are certain barriers which are stopping the sector from reaching its true potential. For example, we have an acute absence of FTAs with our existing key markets like the European Union, Australia, the United States, etc. This factor results in a competitive disadvantage to our manufacturers exporting to those markets.
Also, if you look at the value chain, you will notice we are not being able to capitalise on our capabilities. Very little value addition is being done inside the country. We are exporting yarn, cotton and fabrics but not much of apparels, which means we still have a long way to cover when it comes to exports of real value added products from the country.
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TDB: Most FTAs that India has signed have not resulted in the desired outcome for Indian exporters. Your take on this.
RV: Yes, with regards to FTA, we do understand that we need to change our course of action keeping into account the changing paradigms of foreign trade for this particular sector.
The current status is – India so far has signed almost 15 pacts falling in the various categories of bilateral trade treaties like free trade agreements (FTAs), preferential trade agreements (PTAs), comprehensive economic cooperation agreements (CECAs), comprehensive economic partnership agreements (CEPAs), however, they are not giving us good returns as the targeted countries are no longer our main markets, which currently are EU, US, Australia, etc. Since we do not have any trade agreements with them, our competitors like Bangladesh, Vietnam, and Sri Lanka are not only able to export at zero duty rate, (Bangladesh being in the Least Developed Countries category enjoys special privileges) but also get an edge over us due to their various trade pacts with those markets.
Besides, India is exporting at a very high duty rate – varying from 9% to 17% to these countries that naturally give many of our neighbouring countries a good advantage on final export price-points. I believe, there is a need to revamp our FTA strategy and make it focused towards our current major markets and also on emerging new markets across the globe, such as newer African markets as well as many emerging markets in Latin America.
We have already started consultations with the Ministry of Commerce on this and they are looking into the issue of how to push the India-EU FTA. I also have got a study done on the possible effects of the pact in question, on our economy, as we fully understand that any FTA is a “you win some, you lose some” proposition, so we want to make a holistic analysis of the issues and relevant factors here.
TDB: How do you see the role of Amended Technology Upgradation Fund Scheme (ATUFS) in boosting Indian manufacturing base?
RV: Recently the Cabinet has sanctioned the draft Amended Technology Upgradation Fund Scheme (ATUFS). I believe this will go a long way in
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News Clippings offering technical support for machinery to our manufacturers. Here, I want to highlight that under the scheme, the focus will be on fabric and apparel making segments, so, in this way, we are encouraging manufacturers to do value additions within the country.
This will help us move up the value chain. Prior to ATUFS, our focus has largely been on spinning, and I am glad to say that in spinning we now have self-reliance. However, the gap still exists in weaving, fabric making and in apparel making segments, so under ATUFS we are focussing on these.
TDB: According to Board of Investment of Bangladesh, of late, amid rising costs & declining sales, hundreds of Indian Weaving Wonders... Her Waygarment exporters have been setting up factories in Bangladesh. What would be your message to those manufacturers?
RV: That is true. There has been a little bit of a reverse FDI movement from India to the neighbouring country that enjoys LDC status. Further, Bangladesh enjoys the advantage of comparative lower wages. The irony is they are importing cotton yarn from us, making apparels in their country and exporting to the world. My message to all Indian manufacturers is that we are trying to create a more conducive ecosystem for them that will facilitate their manufacturing and marketing from India at a much lower rate than what it is now. They should look at making in India. Source : thedollarbusiness.com– Mar 03, 2016 HOME *****************
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Cotton futures trade lower on sluggish demand
Cotton futures edged lower on MCX due to sluggish demand from traders and stockists at the domestic spot market. Though, some losses were capped on reports of decline in world cotton production.
The contract for March delivery was trading at Rs 15840.00, down by 0.31% or Rs 50.00 from its previous closing of Rs 15890.00.
The open interest of the contract stood at 8120.00 lots.
The contract for April delivery was trading at Rs 16000.00, down by 0.25% or Rs 40.00 from its previous closing of Rs 16040.00.
The open interest of the contract stood at 4448.00 lots on MCX.
Source : livemint.com– Mar 03, 2016 HOME *****************
From the fashion pool
In colloquial Malayalam, Hashboosh means - of high fashion with a hint of snobbery. That was the right word for friends- Ravi Sankar R., Dhibin Jacob Cheruvathur and Javed Anaz when they were ideating on their business plan that brings budding designers, manufacturers, buyers and other stakeholders of the fashion community under its platform. And so was born #B, HashBoosh.com.
The one-of-its-kind, online enterprise works on multiple levels. In its first stage it runs competitions for young designers with the best entries, after selection, being subsequently manufactured and sold through their online store. The designer who wins a prize also gets a royalty from the sale of the clothes.
The three friends, who met during their stints at Infopark, before moving out to other jobs reunited while pursuing their Executive MBA course at IIM Kozhikode. How did they venture into the fashion field?
Javed who gave up his job at a blue chip company to pursue this entrepreneurial excitement says, “This business model, HashBoosh in its
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News Clippings nascent form, received an A+ in the projects submitted by us when we were pursuing the management course. It was most feasible. When we decided to translate it into business we delved deeper into each aspect of the project - financial, sourcing, manufacturing, running competitions and retailing. We launched it on February 22.”
The website (hive.hashboosh.com) that runs a number of design competitions for various categories in apparel, both western and ethnic, will select entries through online public rating. The winning designer will be promoted in the label of the outfit and there will be an editor’s pick too. If one end of the business is about crowd sourced designs, the next stage is about manufacturing it and the final being online retailing of the products (www.hashboosh.com).
Dhibin says that the team has done massive legwork regarding the project and made several trips to Surat and Ahmedabad to learn about fabrics and its procurement. In some competitions designers will be given fabric swatches. To translate the designs they have set up their seed manufacturing unit at Padamugal with trained tailors and cutters from Kolkata. Their in-house designer Vaisakh M.P. gave up his lucrative job to join in.
The extensive spade work before launch got them to study the fashion eco- system thoroughly. It meant checking out textile units, explaining their ideas in fashion departments of colleges in and around Kochi to sourcing of trained workers. “We want to grow organically and so we are introducing this initially in fashion schools and colleges,” says Javed about the online reach being world wide.
Being tech savvy they have plans B, C, D to build more traffic once the inflow begins. “The good thing about working in IT is that it allows you to look at systems; you know when the system is not working and how to fix it,” they say optimistically.
The extensive research has stoked in them a love for the traditional and indigenous handloom. “Our vision is to revive the many dying aspects in the handloom sector. The problem they face is the lack of new designs. It needs the next gen designers to leverage them and that’s our aim. We will look into coloured handloom yarn too. We want to help this sector from the bottom of our hearts,” says Dhibin.
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In its first phase Hashboosh is launching with women’s wear, as their survey informs them that women shop online and more for clothes. Their store initially will be high on variety and low on volumes. As the market buzz gets more traffic and it translates into proportional manufacturing and sales the business too will expand to include design competitions for other items- menswear, shoes, bags and such.
A trial run, which they conducted, with the help of Fashion Department, St. Teresa’s College gave them the boost to go ahead.
If the question of how and why the tech team veered into fashion, they say: “We know and have seen the potential of crowd sourced ideas.
The power of the crowd is of a passionate population and its possibilities are mindboggling. We are leveraging that in this business.” And one can only imagine the abundance of designs that will flow from the big, wide pool of talented designers and the building of a vibrant fashion fraternity.
Source : thehindu.com– Mar 04, 2016 HOME *****************
Saris, gowns, textiles - A showcase of Banaras repertoire
Wedding sarees in mauve, white and classic red purchased in Madras, Bangalore and Calcutta some three decades ago feature in a special showcase here of the famed Banarasi brocade textile, which is counted among the finest in the subcontinent's hand weaving skills.
The three sarees are among items that have been loaned by individuals to the National Museum for its recently opened month-long exhibition 'Unbroken Thread: Banarasi Brocade Saris at Home and in the World."
Over 100 exhibits from the Museum's textile collection and objects representing the contemporary interpretations of the Banarasi Sari from private lenders have been put on display in the show curated by Abeer Gupta, Suchitra Balasubramanyam and Anamika Pathak.
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"The weaves of Banaras are the only surviving textiles in the world, where the skills of the master weavers create handlooms which are a true statement of the bespoke garment," says Ritu Kumar.
"These weaves and textiles are the most haute couture of all. Banaras weaves are almost like a monument worth preserving, like no other in the world," says the designer whose creations on display include a traditional pink brocade sari, choli with gold churidars and lehanga-choli.
Banaras an established ancient cotton weaving centre began to be known for its silk brocade weaving in the 17th century with the arrival of brocade weavers from Gujarat who migrated to Banaras.
The Banarasi sari is known for its fine detailing and naturalistic representation of human, animal and floral forms which were earlier achieved using the medieval 'naksha' technology. Since the 20th century, weavers have adapted the jacquard technology for sari weaving.
For over a century the Banaras brocades have been showcased overseas. At London's Great Exhibition (1851), at the Textile and Ornamental Arts of India in New York (1955) and at the Festivals of India abroad.
Internationally designers have been inspired by the form and aesthetics of the brocaded sari and adapted into western silhouettes. A photograph of Oscar-winning actress and playwright Ruth
Gordon wearing American courtier Mainbocher, one of the first western designer to re-envision the sari into fashionable gowns featured in the July 1947 issue of the US Vogue magazine has been incorporated in the ongoing exhibition.
Works by artist Pushpamala N, fashion designers Asdeen Lilaowalla, Sabyasachi Mukherjee and Rahul Mishra besides archival posters from the Osian's collection, furnishings from Good Earth and garments from online portal LimeRoad among other objects are also in the showcase.
Banarasi brocade patchwork on a black Mysore silk, a child's repurposed waistcoat and a child's sari are among items lent to the Museum by various individuals.
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The textile is also seen featured on a bidriware (a metal inlay technique) chair with brocade upholstering signifying royalty.
Meanwhile while the Banarasi sari is viewed as a timeless and unchanging classic. Where once the silk was sourced from Central Asia and China and the zari made with pure and precious metals the Banarasi sari has now openly embraced rayon, lurex, and synthetic dyes making it accessible to a wider cross-section of the market.
The exhibition, a collaboration with India Foundation for the Arts, Bangalore is set to go on till April 25.
Source : tecoya trend– Mar 04, 2016 HOME *****************
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