TN to unveil new textile policy

CHENNAI: The State government will soon announce a new textile policy  
as part of its efforts to promote investment and facilitate employment  
creation in the textile sector in Tamil Nadu, Chief Minister M  
Karunanidhi said here on Saturday.

Addressing the gathering after giving away the prestigious Cotton  
Textiles Export Promotion Council (Texprocil) Awards for excellence in  
exports, Karunanidhi said Tamil Nadu was the only State with a  
complete textile chain including spinning and weaving capacities  
besides accounting for 75 per cent of the knitted garment production.

Stating that his government had taken a number of initiatives  
realising the importance of the textile sector, he said sales tax on  
hank yarn was abolished helping 6 lakh handloom weavers.

The sale of cotton by the Cotton Corporation of India has been  
exempted from VAT. TN government was the first in the country to pay  
premium on behalf of handloom weavers for their health insurance.

To protect the welfare of handloom and powerloom workers and their  
families, welfare boards were set up. Free power supply is being made  
to handloom weavers (100 units) and powerloom weavers (500 weavers) on  
a bi-monthly basis. The scheme of free distribution of dhotis and  
saris implemented at a cost of Rs 300 crore provides employment to  
20,000 persons in powerlooms and 15,000 in handlooms every year.

“Approval for setting up five integrated textile parks at  
Kumarapalayam, Cuddalore, Vadipatti, Andipatti and Karur has boosted  
textile investment in the State. An attractive textile policy will be  
announced soon which will further promote investment and employment in  
the textile sector,” he noted. Lauding Union Textiles Minister  
Dayanidhi Maran for his efforts in modernisation of NTC Mills besides  
several other initiatives in textile sector, he said the former was  
delivering ‘as he was his grandson.’ Chairman, Texprocil, V S  
Velayutham, said the State government should ensure peak hour power  
supply in the coming weeks to help exporters meet their shipping  
commitments.

The Texprocil awards function, since its institution in 1975-76, had  
been held only in Mumbai. Chennai became the first city to host  
Texprocil function after Mumbai on Saturday.

Source:

http://www.expressbuzz.com/edition/story.aspx?Title=TN+to+unveil+new+textile+policy&artid=YgDkE3qKIeo=&SectionID=lifojHIWDUU=&MainSectionID=wIcBMLGbUJI=&SectionName=rSY%7C6QYp3kQ=&SEO=

 

Applications under TUFs falls in 08-09, project cost zooms

Applications under TUFs falls in 08-09, project cost zooms
January 06, 2010 (India)

The Government of India under the aegis of the Ministry of Textiles 

had introduced the Technology Up-gradation Fund Scheme (TUFS) to help
the beleaguered textile sector modernise its technology and equipment
and which turned out to be one of the highly successful schemes
implemented by the Government of India.

In this second part of this series, Fibre2fashion brings forth the
number of projects for which applications were received and the amount
of funds sanctioned under the scheme from the date of its inception
till the current fiscal year. In the first part of this exclusive
series on TUFs, we had covered disbursals done by 122 banks to the
textile and its allied sector from the inception of the scheme in 1999.

The TUF scheme which saw the light of the day in the fiscal year
1999-2000 received applications for 407 projects totaling to a project
cost of Rs 5,771 crores, out of which Rs 2,421 crores was sanctioned
for 309 projects, again of which 179 projects received disbursals
amounting to Rs 746 crores in that fiscal year.

Fiscal year 2006-2007 witnessed receipt of the highest number of
applications and which stood at half of the number of total
applications received till June 2009. The project cost of these
applications totaled to one-third of the project cost of all
applications received since the inception of the scheme.

In fiscal year 2008-09, the figures for which are provisional, though
the number of applications were just half of those received in
2006-07, the project cost was just under one-third of the overall
project cost of all applications received since 1999, which implies
that the applicants invested in latest and high technology and
equipment which could have raised the project cost to these levels.

We extend our due thanks to the Office of the Textile Commissioner,
Mumbai from whose data and statistics these figures have been culled.

Please click here to view year-wise statistical data.

Fibre2fashion News Desk - India
Source:

http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=80975

Cotton output to fall in current season

Cotton output to fall in current season
February 13, 2010 (South Africa)

According to The International Cotton Advisory Committee (ICAC), world  
cotton production for 2009/10 is projected at 22.2 million tons, a  
decrease of 5% over the previous season mainly due to lower yields. As  
a result world cotton stocks are expected to decline by 14% to 10.5  
million tons by July 2010, which would be the lowest level in 6 years.

Based on the above and the expectation that world cotton use will grow  
by 2.8% in 2009/10 to 23.9 million tons, the ICAC’s price model is  
forecasting an 18% increase in the average Cotlook A index (an  
indicator of world cotton prices) for 2009/10. The latest A index  
estimate for 2009/10 of 72 US c/lb is 2 US c/lb up from last month’s  
forecast.

The higher prices paid for cotton in 2009/10, combined with the recent  
decline in grain prices will however encourage farmers to increase  
cotton plantings in 2010/11 according to the ICAC. World cotton area  
for 2010/11 is expected to increase by about 5% and assuming an  
average yield, cotton production is forecast by the ICAC to rebound to  
24.1 million tons, an increase of about 9% over 2009/10.

The ICAC also expects world cotton consumption to continue to recover,  
growing by 2.5% to 24.5 million tons in 2010/11. Most of the growth  
however will be in Asia, South America and Turkey.

Although the ICAC forecasts world cotton trade to increase only  
slightly in 2010/11, Chinese imports is expected to increase by about  
15% to 2.1 million tons, driven by increased mill use. Exports from  
India are expected to remain stable in 2010/11 but USA exports are  
forecast to increase by 10% mainly driven by increased production.

Local outlook:
As far as the local outlook is concerned, the 1st estimate for the  
2009/10 production year indicates a total crop of 41 261 lint bales,  
8% down from the previous season and the smallest crop since the early  
sixties.

About 37,841 lint bales are estimated to be produced from RSA produced  
seed cotton, 10% down from the previous season. The balance of 3,420  
lint bales relates to Swaziland produced cotton ginned by the  
Swaziland gin.

Fibre2fashion News Desk - India
Source:

http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=82364

Howell: Cotton prices explode to four-week high on surging export outlook

DUANE HOWELL / FOR THE AVALANCHE-JOURNAL
Sunday, February 14, 2010
Story last updated at 2/13/2010 - 10:11 pm A stunning surge in U.S. export prospects ignited an explosive cotton futures rally last week in the heaviest trading since the summer of 2008.

The market posted gains for the week ended Thursday of 393 points to 72.92 cents in spot March, 331 points to 73.81 cents in May, 320 points to 74.65 cents in July and 194 points to 72.70 cents in december.

March locked up the 300-point daily limit on the heels of USDA’s monthly supply-demand report and closed the period 637 points from its lowest price on Feb. 5 since Oct. 13. It finished at its highest settlement since Jan. 13.

Volume hit a huge 66,065 lots at midweek to bring the two-day turnover following the USDA report to a whopping 124,224 lots. The all-time single-session high is 85,945 lots on Feb. 15, 2008.Interest intensified in the March delivery period as the March-May spread tightened and the inverted July-December intercrop spread widened amid an extremely tight situation foreseen for current-crop supplies.

A decline in certificated stocks to 468,874 bales from 502,230 bales a week earlier and a high for the period of 527,856 bales fanned fresh talk that sizable a chunk of the stocks might be committed. Cotton awaiting review fell to 16,128 bales from 52,180 bales a week ago.The March-May spread traded as narrow as 15 points and the July- December straddle traded as wide as a 310-point premium on the current- crop month. Full carrying charges in the popular current-crop, new- crop straddle would be with December at about a 450-point premium.Mill demand slipped on the fast price rebound, trade sources said. The rally slowed as the May contract, which overtook March in open interest, approached technical resistance around 74.25 cents. May pushed above 74 cents two consecutive sessions but closed below there each time.

The USDA shocked the market by raising its export forecast a million bales from a month ago to 12 million and cutting ending stocks a like amount to 3.3 million. Stocks-to-use plunged to 21.4 percent from 29.9 percent foreseen last month and 37.6 percent a year ago. The ratio would be the lowest since 2003-04 and the carryout the smallest since 1995-96.

Export prospects surged far beyond the most optimistic of pre-report estimates. Led by a drop in New York futures, recent lower prices for U.S. cotton combined with strong foreign mill demand boosted export prospects, USDA said.

The USDA hiked its forecast for the marketing year average farm price to 59 to 65 cents, up two cents on the lower end and one cent on the higher end. The midpoint of 62 cents is up from an average of 47.80 cents last season.



The export and carryout forecasts reinforced prospects for an extremely tight situation before new-crop supplies begin moving to market. Many of the early new-crop shipments will come from 2009-crop supplies. The jump in the export estimate was the largest veteran analysts could recall at this stage of a crop year.

A widened spread between spot futures and the Cotlook A Index of world values played a big role in the recent robust export sales pace. The competitiveness of U.S. cotton was enhanced as prices tied to futures fell five weeks in a row, tumbling faster than the A Index.

The spread widened from 385 points just after the March futures close on Jan. 4 to 828 points after the Feb. 5 finish. Then it narrowed to 688 points Thursday as futures rebounded faster.

Globally, the report featured higher beginning stocks, largely offset by higher consumption. Beginning stocks were revised upward in China owing to modest reductions in consumption for the 2007-08 and 2008-09 marketing years.

World production was virtually unchanged at 102.74 million bales, up 30,000 bales or 0.3 percent from last month, while consumption rose by 1.17 million bales or 1.03 percent to 115.53 million. Ending stocks rose a marginal 360,000 bales or 0.7 percent to 52.08 million.

The world stocks-to-use ratio at 45.1 percent is little changed from 45.2 percent the two previous months and is the lowest since 1994-95. World trade was little changed at 33.8 million bales. The higher U.S. exports were mainly offset by a reduction in exports from India.The gap between foreign production and foreign mill use widened by 1.14 million bales on the month to a new all-time high of 21.79 million, up from a foreign crop shortfall last season of 11.88 million bales.

Looking ahead, U.S. producers reported intentions to plant 10.093 million acres of cotton this spring, up 10.3 percent from 9.149 million acres in 2009, according to the National Cotton Council’s annual survey.

Based on an average abandonment of 11.5 percent with 8.9 million acres for harvest and states-level yield assumptions, production would rise to 15.5 million bales from 12.4 million in 2009-10.

Growers in all four production regions reported plans to expand upland acreage from last year. Intentions were up 10 percent to 9.9 million acres for upland and up 24 percent to 176,000 acres for Pima.The West showed the largest percentage expansion of 26.6 percent,while the largest acreage increase was in the Southwest at 475,000 or up 9.1 percent. The other two regions, the Southeast and Mid-South, reported increases of 12.2 and 8.4 percent, respectively.

Prevailing market conditions for cotton are more favorable than in the past couple of years, said NCC senior economist Dale Cougot. Growers will continue to monitor market conditions and compare relative crop prices and input costs in coming weeks, Cougot pointed out, noting that this could alter their final decisions.


Upland intentions in Texas rose 8.3 percent to 5.414 million acres, accounting for 54 percent of the U.S. all-cotton area. With wider variances in abandonment and yields, Texas could swing crop estimates in either direction by several million bales as the season progresses.DUANE HOWELL is retired farm editor of The Avalanche-Journal.

Letters
can be sent to P.O. Box 16347, Lubbock 79490, or faxed to (806)
799-7462. His e-mail address is duane.howell@sbcglobal.net.

Source:

http://lubbockonline.com/stories/021410/col_562784958.shtml

Textile makers seek more funds for technology in Budget

Textile makers seek more funds for technology in Budget
11 Feb 2010, 1806 hrs IST, REUTERS

India's textile industry has sought allocation of additional funds under the technology upgradation fund scheme (TUFS) and removal of duties on man-made fibres to help increase competitiveness and domestic utilisation.

The Confederation of Indian Textile Industry (CITI) has sought Rs 20 billion for the TUFS backlog in calendar year 2009 and another Rs 30 billion for 2010. The government had earmarked Rs 31.4 billion for the scheme in the last budget.

"Utilisation levels are high and given the growth in domestic consumption it would be very encouraging if the allocation under TUFS is increased as textile makers are investing more," said Sunil Khandelwal, chief financial officer at Alok Industries Ltd.

The textile industry had been battered by the economic slowdown for much of 2008/09 but has begun to recover in the past 2-3 quarters with major textile firms such as Alok Industries, Raymond and Century Textiles & Industries Ltd reporting higher sales and profits in Oct-Dec.

But analysts said that the government needs to quicken disbursement of funds as there was no clarity on how soon a unit can receive the funds under TUFS, which is essentially a low interest-rate loan.

"TUFS is not a grant, the interest waiver is what you are getting. A fundamental issue is to see how the funding is disbursed and how long it takes for the units to get the waiver," said Devangshu Dutta, chief executive, Third Eyesight, a textile consultancy.

The industry has also asked for removal of duties on man made fibres to increase utilisation in the country, CITI said in a statement.Currently there is a ratio of 62:38 in the utilization of cotton and man-made fibres in the country, as against the global ratio of 40:60, it said.

Excise duty on man-made fibres had been increased from 4 per cent to 8 per cent in the last annual budget.The industry has also asked that liquid fuels used by textile and clothing units for captive power generation be exempted from duties to encourage them to cut energy costs, said DK Nair, secretary general of CITI.

"The thought process needs to be on value addition rather than capturing percentages of low value items," Third Eyesight's Dutta said.

Industry participants are also asking that export credit for textile and clothing units be provided at a uniform rate of 5 per cent interest. Export credit is currently provided at about 8 per cent interest.

"They may get more export benefits, but I don't expect any major stimulus to be given this time. Overall the budget would be slightly conservative or negative," said an analyst from a Mumbai brokerage who declined to be named.

The budget will be presented on Feb 26.


Source:
http://economictimes.indiatimes.com/news/economy/policy/Textile-makers-seek-more-funds-for-technology-in-Budget/articleshow/5561074.cms

Cotton exports up 1 million bales

Feb 10, 2010 10:59 AM, By Elton Robinson, Farm Press Editorial Staff USDA is projecting a 1 million-bale increase over last month in cotton exports for 2009-10, thanks to new export sales of more than 1.8 million bales made in January.

A drop in the New York futures market and recent lower prices for U.S. cotton combined with strong foreign mill demand boosted the prospects, according to USDA’s Feb. 9 World Agricultural Supply and Demand Estimates.

U.S. cotton ending stocks are now forecast at 3.3 million bales, 21.4 percent of total use. If realized, this would be the lowest stocks-to- use ratio since 2003-04. USDA forecast a range of 59 to 65 cents per pound for the marketing-year average price received by producers.Increases in cotton consumption were indicated for China and India, based on a stronger estimated recovery in demand than previously anticipated. World ending stocks were raised marginally from last month.Corn used for ethanol was projected 100 million bushels higher than last month due to greater ethanol producer returns. Corn exports for 2009-10 are projected 50 million bushels lower on increased competition from Argentina. Ending stocks are projected 45 million bushels lower. The projected marketing-year average farm price for corn was narrowed 5 cents on both ends of the range to $3.45 to $3.95 per bushel.

Domestic and residual use and exports for 2009-10 U.S. rice were each increased from the previous month, pushing total use to 231.5 million. The increase in exports is all in the rough rice category now projected at 37 million hundredweight. Ending stocks declined to 39.8 million hundredweight, down 7 percent from last month.The 2009-10 long-grain, season-average price is projected at $12.90 to $13.40 per hundredweight, up 40 cents per hundredweight on the low end of the range, but down 10 cents per hundredweight on the high end compared to $14.90 per hundredweight for 2008-09. The combined medium- and short-grain price is projected at $17.50 to $18.00 per hundredweight, up 50 cents per hundredweight on the low end of the range and no change on the high end compared to $24.80 per hundredweight for 2008-09.

Global 2009-10 rice production was projected higher due mostly to an increase in the Indonesian rice crop. World exports were raised slightly mostly due to increases for the United States and Egypt.Projected U.S. soybean ending stocks for 2009-10 were reduced to 210 million bushels, down 35 million from last month due to increased exports and crush. Although a record South American harvest is expected to reach the market in coming weeks, tight old-crop South American supplies resulting from last year’s historic drought in Argentina continue to support U.S. exports, according to USDA.The U.S. season-average soybean price range for 2008-09 is projected at $8.70 to $10.20 per bushel, down 20 cents on both ends of the range.Projected global soybean production was raised 1.6 million tons to 255 million tons. Soybean production for Brazil is projected at 66 million tons, up 1 million tons from last month.



U.S. wheat ending stocks for 2009-10 are projected 5 million bushels higher based on expected shipments of South American and European feed quality wheat into the Southeast. The projected marketing-year average farm price was narrowed 5 cents on both ends of the range to $4.75 to $4.95 per bushel.

Global wheat supplies for 2009-10 are projected 1.4 million tons higher reflecting production increases for Argentina and Ukraine.Global wheat imports and exports for 2009-10 were also raised, reflecting higher expected shipments for Argentina and increased regional trade for Turkey and larger supplies for Argentina.Global wheat consumption for 2009-10 was raised 1.1 million tons on higher feeding in Canada and increased food use in Afghanistan. Projected global ending stocks rose 300,000 tons.
e-mail: erobinson@farmpress.com