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News Clippings IBTEX No. 005 of 2014 January 07, 2014 . NEWS CLIPPINGS INTERNATIONAL NEWS No Topics 1 Cotton Yarn Prices in Pakistan 2 Cotton Prices on International and Domestic Markets 3 Pakistan: PCGA asks govt to import cotton seeds from China 4 Maker’s Row to help promote US-made cotton 5 PTEA seeks govt support to fully benefit from GSP Plus NATIONAL NEWS 1 Rs 35 cr handloom institute to be set up in Machilipatnam 2 R 35 guarantees excellent piecing for high acceptance in downstream processing 3 Reforms and measures undertaken by Central Board of Excise and Customs to facilitate trade 4 Indian weavers unite against mechanization of handlooms 5 Cotton gains on limited arrivals DISCLAIMER: The information in this message may be privileged. If you have received it by mistake please notify "the sender" by return e-mail and delete the message from "your system". Any unauthorized use or dissemination of this message in whole or in part is strictly prohibited. Any "information" in this message that does not relate to "official business" shall be understood to be neither given nor endorsed by TEXPROCIL - The Cotton Textiles Export Promotion Council. Page 1 News Clippings INTERNATIONAL NEWS Cotton Yarn Prices in Pakistan The yarn market is bottoming out in Pakistan, amid renewed optimism over 2014 prospects, our Correspondent reports. Our monthly review covers the cotton and polyester-cotton yarn markets in Karachi and Faisalabad, with a long series of tables, charts and historical data back to 2007. Cotton yarn prices have started increasing on Pakistan's domestic market, following a surge of cotton fiber prices and a rebound in yarn demand from domestic and foreign customers. Larger orders being received Large quantities were last week sold for 8s, 10s, 12s, 16s, 20s, 21s, 24s, 30s carded and 30s, 40s combed yarns. Price offers rose by Rs.3-5 per lb as a result. Processors were ordering to meet their immediate needs and also to build stocks for future use. A few buyers however limited their demand levels, as yarn prices were being raised. Suppliers were interested in selling, in order to reduce their stocks which had been increased by a previously low level in sales. Demand for blends also recovered On the blended yarn market, there was good demand for 10s, 12s, 20s, 24s, 30s, 31s, 38s, and 40s carded PC yarns. The Faisalabad market was also active and good demand was reported in the past week for 24s, 31s, 38s and 40s carded PC yarns. Yarn imports from India have again bottomed out, after remaining slow in the previous weeks. A few more processors are now working on the import options, mainly due to the cost factors. Expanding textile capacities www.texprocil.org.in Page 2 News Clippings About 21 million kilos of yarns were imported during the fiscal year 2012- 13 (July-June), out of which 16.7million kgs were imported from India, according for more than 80% of total shipments. Textile producers in Pakistan are now in enthusiastic mood, as they foresee many opportunities in 2014 including the preferential trade regime GSP-+ on EU's market, a stronger demand for yarns from China, and lower cotton prices. 12,000 more spindles are being installed at Blessed Textile Mills which will increase production capacity of this facility to 360 tons yarns per month. Another expansion at Faisal Spinning Mills with 6,000 more spindles has increased its production capacity to 270 tons per month. In addition, the Sapphire group has recently expanded its dyed fabric production capacity to 4 million meters per month, before eventually reaching a total of 5 million meters per month by next March. A few problems, however There are a few challenges for the textile producers in the country, that include a rise of power and financial costs, energy shortages and double digit inflation. Cotton fiber prices last week rose to more than Rs.7,000 per maund of 37.32 kilos on Pakistan's domestic market, as major processors were trying to grab maximum available qualities. HOME Source: Emerging Textiles - 06 Jan 2014 ***************** Cotton Prices on International and Domestic Markets Cotton prices slided in the last week in New York, however remaining very firm over the past 4-week period. Our weekly cotton report covers the latest price trends of international spot and futures markets through a large number of tables and charts, with also domestic markets in China, India and Pakistan being reviewed. Daily dataof the past 12-month period are available for download. www.texprocil.org.in Page 3 News Clippings Cotton prices last week slided in New York, reflecting a relatively poor demand level in this holiday period. Prices however stayed firm if considering the last four weeks, with the nearby contract actually rising 2.53 cents per lb or 3.15%. Lower availability in first quarter Demand for US cotton slowed down at the end of December with Turkey however buying large quantities. Cotton prices will get some support from the lower supplies in the first quarter of the new year, after new crops of the Northern Hemisphere will have been digested by the market. Surging prices in Pakistan In Pakistan, prices already surged back to historical highs, with the benchmark indicator reaching the symbolic level of 7,000 rupees per maund of 37.38 kilos. Prices also rose in India, although less dramatically, as arrivals are still relatively large from the new crop. India is increasingly optimistic about its cotton fiber and yarn exports, still benefiting from a lower rupee. Waiting for Chinese import quotas In China, the official buying system is still very active, supporting prices on the domestic market and boosting front month contract on futures market in Zhengzhou. However, the cotton buying policy will end later this year and the November contract already reflects an expected fall of cotton prices, as clearly shown by our below chart. www.texprocil.org.in Page 4 News Clippings In the meantime, the level of import quotas will be decisive for predicting how cotton prices will move on the international market. Prices could stay stable around 85 cents per lb, until the end of the Chinese buying policy will possibly trigger a radical change in market trends. HOME Source: Emerging Textiles - 06 Jan 2014 ***************** Pakistan: PCGA asks govt to import cotton seeds from China The Pakistan Cotton Ginners Association (PCGA) has asked the Government to import cotton seeds from China, reports The News. PCGA chairman Mukhtar Baloch said the unavailability of germinated seeds at right time is affecting the cotton crop. He warned that the future of cotton in Pakistan might be bleak if the farmers do not virus-resistant and certified seed supply at the right time. He said cotton growers in Punjab and Sindh provinces have incurred huge monetary losses due to spurious and substandard seeds. By January 1, 2014, about 12.67 million bales of cotton reached ginneries across the country, surpassing the 12.336 million bales estimated for the current crop season by the Cotton Crop Assessment Committee (CCAC), according to the PCGA. In 2012-13 cotton season, Pakistan’s cotton output fell by 12.81 percent year-on-year to 12.915 million bales, compared to the previous season’s production of 14.813 million bales, mainly because of less sowing of the crop. www.texprocil.org.in Page 5 News Clippings PCGA is a representative body of over 1200 ginning factories all over Pakistan. HOME Source: cottonyarnmarket - 06 Jan 2014 ***************** Maker’s Row to help promote US-made cotton Maker's Row and Cotton Incorporated have announced their partnership that aims to further educate and connect textile brands with U.S. cotton suppliers and manufacturers. Through the efforts of their partnership, Maker's Row, an online platform providing product-based businesses direct access to domestic manufacturers, and Cotton Incorporated, the research and marketing company representing America's cotton producers and importers, will be able to reach and inform a far larger, more diverse audience on the cotton production process and associated benefits with domestic sourcing. "The partnership with Cotton Incorporated was a natural choice. This partnership provides brands with a deeper understanding of one of the principal materials used in apparel today. With that understanding, brands have a greater opportunity to push the boundaries of their own products with our manufacturers on Maker's Row." said Matthew Burnett, CEO, Maker's Row. To steward their efforts, Maker's Row and Cotton Incorporated have created a video titled, American Cotton Part 1, designed to assist businesses in the understanding of cotton production as it moves through the supply chain. By revealing the production process, businesses--from first-time entrepreneurs to big brands--are now able to make more informed decisions which will ultimately curate a better product. "There are more than 70 cotton producing countries in the world and the United States is the third largest. And in the United States, we have more than 10,000 cotton farmers committed to high standards of cotton www.texprocil.org.in Page 6 News Clippings production. That starts at the farm and continues all the way through the grading and classing systems that exists for every pound and every bale of US cotton." - Mark Messura, Senior Vice President, Cotton Incorporated. "This is such a great collaboration and we are very excited to finally launch the campaign. What we loved about the Maker's Row team is their passion and enthusiasm for American manufacturing coupled with the fact that they are great storytellers through their video documentaries. “We have a great story to tell about U.S.
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