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NOVEMBER 12, 2012

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INTERNATIONAL NEWS

1 FTA with Turkey unlikely to bring significant benefit to S. Korea: report

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2 Pakistan: India to give APTMA-specific visa facility 3

3 ‘Fiscal Cliff’ may impact textile & apparel exports to US 5

4 Pakistan: Prices down on cotton market as ginners lower asking rates to attract mills

6

5 Australian cotton sector to benefit from new RDO team 8

6 Chinese textile exports grow, but loses market share 10

7 Bangladesh to participate in 'Asian International Apparel Sourcing

Show 2012' in December 10

8 Textiles market ‘becoming increasingly difficult’ 12

NATIONAL NEWS

1 “Maharashtra, Gujarat invite textile investments” 14

2 Govt nod for 21 textiles parks in 12th Plan 16

3 Indian Denim Players Eye 15% Export Growth 17

4 Govt cuts VAT on textiles; traders rue timing 17

5 Cotton production for 2012-13 to around 354 lakh bales: CAI

18

6 Powercuts blow out Diwali lights for many workers 19

7 Textile sector: Sukhbir stresses on need to explore ties with Pak

20

NOVEMBER 12, 2012


INTERNATIONAL NEWS

FTA with Turkey unlikely to bring significant benefit to S. Korea: report

SEOUL, Nov. 12 (Yonhap) -- A free trade agreement (FTA) with Turkey will not likely have significant benefits for the South Korean economy as its impact on growth, tax reduction and job creation might remain marginal, a report showed Monday.

South Korea and Turkey had held four rounds of FTA negotiations since April 2010 and both announced the conclusion of their talks on trade of products in March.

The two countries plan to conclude negotiations on the service and investment sectors as well within a year of implementing their deal on the trade of products.

According to the report by the Korea Institute for International Economic Policy, an FTA with Turkey would translate into a 0.01 percent increase in South Korea's gross domestic product in the short term.

The additional growth impact will rise to 0.03 percent in the short term, said the report, which was commissioned by the finance ministry.

On the labor market, an FTA with Turkey would result in generating 253 and 1,391 jobs in the short term and the long term period, respectively, the report showed.

NOVEMBER 12, 2012


Tariff reduction impact would also be marginal. For the first five years of the implementation of a Korea-Turkey FTA, tariff tax income will decline by 26.44 billion won (US$24.25 million) on average every year, the report said.

It is quite small compared with the country's total tariff income of some 11 trillion won, it added.

The KIEP explained that such an insignificant impact from free trade with Turkey could be attributable to the European country's relatively small size of the economy and already low tariff barriers of both trading partners.

[email protected] Nov 12, 2012

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India to give APTMA-specific visa facility

All Pakistan Textile Mills Association (APTMA) to lead trade facilitation process with India, said Group Leader Gohar Ejaz during the visit of Indian High Commissioner Sharat Sabharwal to All Pakistan Textile Mills Association (APTMA). On his suggestion for multiple APTMA-specific visa facility, the Indian HC announced a special visa service for APTMA members in line with the SAARC model.

Further, he announced one year triple entry visas for APTMA covering 10 cities with one side entry through land border and return through airport, exempted from police investigation. He said the visas would be for the CEOs and Directors of APTMA members and their spouses, followed by the executives of the companies.

Mr Gohar Ejaz said the APTMA would be prepared to act as one stop shop for match-making of trade and investment projects between the entrepreneurs of two countries in order to alleviate the menace of growing unemployment in the region.

NOVEMBER 12, 2012


Chairman APTMA Ahsan Bashir welcomed at the APTMA Punjab office. Chairman APTMA Punjab Shahzad Ali Khan and other office-bearers besides the Executive Committee members were also present on the occasion.

According to him, the current level of trade between two countries was hardly at $1.15 billion, which can be reached $10 billion by facilitating the entrepreneurs of two countries.

Chairman APTMA Punjab Shahzad Ali Khan suggested in his address establishment of joint container company for increase in trade between India and Pakistan for overcoming transport infrastructure constraints in the larger interest of trade and investment between two countries. He also proposed for the establishment of joint meeting facility at the borders until visa relaxations.

The Indian Ambassador said the role of private sector is very crucial for trade normalization between Pakistan and India. He said the dialogue process resumed in 2011 when India withdrew objections on trade-relating EU concessions to Pakistan.

It increased the degree of trust between two countries with reciprocity from both sides that led to serious trade talks. India allowed investment from Pakistan by lifting restrictions. He said there are 138 items importable from India through Wagha. But there are capacity issues which needed to be resolved earliest. Further, he also said that longer hour working for Customs have been introduced on both sides of the Wagha border. The sensitive list would be reduced to 400 from current 600 items. Once Pakistan phased out the negative list, India would be entitled to the Most Favoured Nation (MFN) status, he said.

NOVEMBER 12, 2012


According to the Indian High Commission, some 100 tariff lines will be in the sensitive list and trade tariff will not be more than 5% by April 2013. He said India is in dialogue with Pakistan in the energy sector, particularly in three areas including export of refined petroleum products to Pakistan, supply of 500MW electricity to Pakistan and project for regasified energy i.e. LNG for next five years. He said currently there is excessive trade dependence on sea and rail shipments. It is a need of the hour to increase truck shipments and opening up of more land borders.

He said working on removal of NTBs including customs rationalization, improvement in laboratories and resolution of dispute settlements was under way. He asked the APTMA leadership to bring delegation to India for meeting with counterpart organizations including Confederation of Indian Industry (CII) to initiate dialogue on bilateral trade and investment besides identification of prospective investment projects.

All Pakistan Textile Mills Association (APTMA)

fibre2fashion Nov 12, 2012

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‘Fiscal Cliff’ may impact textile & apparel exports to US

Barrack Obama has been re-elected to a second-term as the President of the largest global economy - the US, which is also the biggest buyer of textile and apparels in the world. However the biggest worry on the mind of an expert from Pakistan is on how the new House and Senate will address the challenge of a large fiscal deficit.

According to Mr Shahzad Salim – Former Central Chairman of Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), “If they do not come to an agreement on tackling the issue, automatic cuts come in to effect. These could mean a 4 percent cut in the annual budget of the US”.

NOVEMBER 12, 2012


If the US administration does not tackle the issue, an automatic budget cut also called the ‘Fiscal Cliff’ will come in to effect. “This will mean a budget cut of 4 percent or a whopping US $607 billion in 2013”, says the Congressional Budget Office (CBO). These cuts will also apply for subsequent years.

This is the figure, which mainly worries Mr Salim. He says, “The cuts will be immediate and stringent, which could have a big impact on global exports of textiles and apparel, since the government also spends a large amount of money on both these goods”.

“I can only hope that these automatic cuts donot come into effect as it will have a catastrophic impact on not just the textile and apparel sector, but all industrial sectors across the globe”, he wound up by saying.


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Prices down on cotton market as ginners lower asking rates to attract mills

Prices fell on the cotton market on Saturday as the ginners lower asking prices, which caused rising demand by mills, dealers said. Official spot rate maintained overnight level at Rs 5,850, they said. In the ready business, over, 26,000 bales of cotton changed hands between Rs 5550-6000, they said. Prices of seed cotton (phutti) in Sindh were down by Rs 50 to Rs 2500-2700, while, rates maintained overnight levels in the Punjab at Rs 2600-2850, they said.

NOVEMBER 12, 2012


Commenting on the bearish trend in the market, cotton analyst Naseem Usman said that lack of buying interest among mills propelled ginners to cut down prices. This factor lifted daily-intake and hopefully, prices may fluctuate in a narrow in the coming days, other brokers said. Trading activity may improve as European Union (EU) waiver on customs duties for 75 items (mostly textiles) from Pakistan with effective from 1st November to 31st December 2013 has opened tremendous opportunities for Pakistan to increase its exports to 27 EU member countries.

According to the Reuters, US cotton futures hit fresh July lows on Thursday as index funds rolled long front-month positions forward and investors sold ahead of the US government crop report, expected to highlight continued weak demand and rising supplies. "The Goldman Sachs roll kicked in hard today," said Ron Lawson, a trader with brokerage logicadvisors.com in Sonoma, California.

The most-active December cotton contract on ICE Futures US settled 0.81 percent lower at 69.26 cents per lb. For a second session, it was its lowest settlement since end-July.

Volumes were heavy as index rolls made up a significant portion of activity. Almost 25,000 lots of December contracts changed hands, which was double average levels. On Friday, the US cotton futures closed higher, as a solid domestic Chinese price helped cushion the blow of another bearish monthly crop report, but the bounce still left the market down 1 percent on the week.

The US government raised its 2012/13 forecast for global cotton inventory to above 80 million 480-pound bales for the first time due to larger-than-expected output in the United States, the world's third largest producer, and falling demand from China, the world's largest consumer. While analysts and traders expected the increase, surpassing the 80 million mark reinforced concerns about rising supplies and long-term demand as mills use more man-made fibers.

NOVEMBER 12, 2012


The most-active December cotton contract on ICE Futures US settled 0.81 percent higher at 69.26 cents per lb but ended the week down more than 1 percent.

Following deals report: 1600 bales from Shahdadpur at Rs 5650/5700, 1400 bales from Tando Adam at Rs 5550/5700, 1200 bales from Sanghar at Rs 5650/5800, 2000 bales from Mir Pur Khas at Rs 555/580, 2000 bales from Khairpur at Rs 5900, 1000 bales from Upper Sindh at Rs 5900, 200 bales from Bahawalpur at Rs 5700/5800, 1600 bales from Hasilpur at Rs 5800/6000, 400 bales from Faqirwali at Rs 5800/5875, 800 bales from Pak Pattan at Rs 5815, 1400 bales from Fort Abbas at Rs 5825/5875, 400 bales from Khiciwala at Rs 5825, 800 bales from Shujabad at Rs 5875, 1200 bales from Mianwali at Rs 5865-6000, 400 bales from Haroonabad at Rs 5850, 200 bales from Chistian at Rs 5850, 200 bales from Vehari at Rs 5850, 200 bales from Kabbirwala at Rs 5925, 4000 bales from Rahim Yar Khan at Rs 5950-6000, 400 bales from Bakhar at Rs 5950, 1000 bales from Dera Ghazi Khan at Rs 6000, 800 bales from Rajanpur at Rs 6000, 800 bales from Shah Jewana on (Credit) at Rs 6000 and 800 bales from Fazilpur at Rs 6000, they said.


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Australian cotton sector to benefit from new RDO team

The new joint venture in cotton Development and Delivery (D & D) is well underway with the inaugural meeting of the D & D management committee occurring on September 17 and the development of the cotton Development and Delivery annual operational plan which was presented to the management committee on 25th October 2012.

NOVEMBER 12, 2012


A major priority for the joint venture partners Cotton Australia, Cotton Seed Distributors and the Cotton Research and Development Corporation is to establish a regional information delivery network to meet the information needs of growers. Positions have been advertised and a number of excellent applications have been received by Cotton Seed Distributors who will be employing the Regional Development Officers as part of their commitment to industry.

It is expected that a number of key positions will be filled by the end of the year with the remaining positions filled early in the New Year. The primary function of the cotton Regional Development Officers will be to ensure that the latest research information is available to growers and includes facilitating the establishment of local trials to ensure that research outcomes are adapted to meet local needs. The local Regional Development Officers will act as a network to facilitate industry R&D communication between researchers, growers, consultants, agribusiness, NRM as well as cotton and other industry organisations. This communication will address both immediate and longer term issues and will provide an important feedback loop on needs, priorities and the usefulness of R&D outputs.

The RDO team will be a key resource for industry’s capacity to respond to emerging or emergency issues whether at a regional or national level. The team will assist industry to respond to challenges whether they are agronomic in nature or as a result of a biosecurity or natural disaster event and will provide essential support to the industry’s biosecurity preparedness and surveillance effort.

Berecorder Nov 12, 2012

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NOVEMBER 12, 2012


Chinese textile exports grow, but loses market share

Export scenario for China’s clothing and textile industry does not seem to be positive, which can be seen in that the industry posted a meagre growth during initial nine months of the current year, Gao Yong, Vice President of the China Textile Industry Association said.

According to the data provided by association, indicative of a rise of 1.04 percent, the sector’s exports for first three quarters of the current year grew to US$ 192.69 billion.

In spite of an overall rise in its clothing and textile exports, China experienced a decline in its share in key foreign markets, which necessitates a more rational analysis of the actual problems faced by the industry, Mr. Gao said during a national textile conference.

The industry should work on technology upgradation to ensure better product quality and focus more on leading brands, so as to survive external adversities like rising cost of labour and material and waning global demand, the association said in a report.

Mr. Gao informed that to ensure better product quality, the association would augment training and technology upgrades for producers in the sector.


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Bangladesh to participate in 'Asian International Apparel Sourcing Show 2012' in December

The three-day "Asian International Apparel Sourcing Show 2012" will begin in Singapore on December 6 aiming to tap newer apparel export market. CEMS-Global in cooperation with Export Promotion Bureau (EPB) will organise the showcase to be held at Sands Expo and Convention Centre, Marina Bay Sands, Singapore.

NOVEMBER 12, 2012


"This fair will contribute to the country's readymade garments sector to great extent", said SS Sarwar, Group CEO of CEMS-Global said Sunday while addressing a press conference in the city. Vice Chairman of EPB Subhasish Bose, President and Group Managing Director of Cems-Global Meherun N Islam and President of Bangladesh Garment Buying House Association (BGBA) KI Hossain, among others, were, also present at the briefing.

Spring- Singapore - an entity of the Government of Singapore has already termed Singapore as the second largest apparel and clothing sourcing hub of Asia-Pacific after Hong Kong, he said adding "And very soon Singapore will be the apparel, yarn and fabric sourcing hub of the World." Textile and apparel manufacturers can interact with each other and at the same time it will also benefit the visiting buyers by a perfect 'Triangle Trade' whereby a buyer will be able to choose a fabric supplier from one country and an apparel factory from another country under one roof, Mr Sarwar explained. The world's trade dynamics have changed a lot and presently, all of the world's leading apparel buying offices and agencies have their Asia-Pacific operations in Singapore which are their sourcing offices and decide the sourcing from South and South-East Asian apparel and textile manufacturers, he said explaining the importance of the venue. Vice Chairman of EPB Subhasish Bose said, the fair will help local manufacturers to explore new markets not only for readymade garments but also for fabrics which will be displayed for the first time. A total of 30 Bangladeshi garment manufacturers under Bangladesh Garment Manufacturers and Exporters Association (BGMEA), BGBA, Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA) and Bangladesh Grey and Finished Fabrics Mills and Exporters Asociation (BGFFMEA) will participate in the show.

Financial Express, , Nov 12, 2012

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NOVEMBER 12, 2012


Textiles market ‘becoming increasingly difficult’

The trading conditions in the UK used clothing industry are ‘becoming increasingly difficult’, according to Alan Wheeler, national liaison manager for the Textile Recycling Association (TRA).

Speaking at the Bureau of International Recycling’s Roundtable in Barcelona last week (October 29) Mr Wheeler said textile recyclers are struggling as a result of the high price demanded for charity grade material as well as increased competition in the market.

Charity shops are used to receiving high prices for used clothing,

which sorters cannot necessarily afford to pay, according to Mr

Wheeler

He said the competition was coming from new players who are keen to make a ‘quick profit’ as well as an increase in Cash for Clothes shops, which he said are particularly rife in the north of England where property rental values tend to be lower.

The high prices being demanded for material has squeezed the profits made by textile recyclers and caused them problems when trying to sell on the material for sorting and exporting, he added.

While Mr Wheeler noted that the prices paid for material have started to tail off, following a steady increase over the past seven years, he said that given how much businesses are struggling he would have expected the price of the material to drop more substantially.

Speaking at the event, he said: “The trading conditions in the UK used clothing industry are becoming increasingly difficult.”

NOVEMBER 12, 2012


Mr Wheeler added: “This year alone, three members of the Textile Recycling Association have stopped collections. In a trade association where the membership totals 55 businesses, to lose three members in this way is of notable significance.”

He noted that the TRA - the UK’s trade body for used clothing and textile collectors, sorters and reprocessors – has also had an increasing number of calls from charity shops who say they are struggling to find an outlet for the material as many collectors are not willing to pay the high prices they have come to expect.

Profit

"This year alone, three members of the Textile Recycling Association have stopped collections"

Alan Wheeler, Textile Recycling Association

Commenting on those businesses keen to make a ‘quick profit’ he said: “With businesses struggling, one would expect prices to drop more substantially. Part of the reason why this has not happened yet though is that people are continuing to enter into the industry because they think they will make a quick profit. They are attracted by the high value of the clothing.

“Only after they have been trading for six months or a year do they sometimes realise they are not making any money and move on to something else.”

Europe

Also at the event, textile recyclers from across Europe raised concerns about the current state of the market, with a number of sorting facilities expected to take an extended holiday over Christmas due to high prices and a lack of material.

Olaf Rintsch, president of the BIR’s textile division, said the market had become a ‘tough struggle’ for textiles recyclers due to the high prices. He said the end result could be shorter working periods for some organisations with the onset of winter weather making it more difficult to trade.

NOVEMBER 12, 2012


The differing legal status of textiles as waste within Europe was also highlighted at the Roundtable. For example, some countries consider clothes deposited in collection banks as waste whereas others do not. Mr Rintsch said this proliferation of different rules and regulations means it is difficult to make the system work.

Meanwhile Mehdi Zerroug of Framimex, the BIR textiles divisions’ vice president, said the collection volumes in France were 12-15% lower during the second half of this year than in the corresponding period of 2011. And, the number of incidents of thefts of containers or their contents has continued to rise

/www.letsrecycle.com, , Nov 09, 2012

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NATIONAL NEWS

“Maharashtra, Gujarat invite textile investments”

The textile industry in Tamil Nadu can look for options in States such as Maharashtra and Gujarat if it wants to expand its production base to other States.

Maharashtra and Gujarat governments have come out with textile policies to encourage investment in their States. The features of the policies were explained to textile mill owners here at a meeting organised by the Southern India Mills’ Association recently.

The textile units should not have problems in areas such as power if they invested in Maharashtra, Sunil Porwal, Secretary for Textiles, Government of Maharashtra, told The Hindu.

NOVEMBER 12, 2012


In the western State, it is a problem of cost and not availability of power.

“We are working on how to reduce power tariff,” according to Mr. Porwal. Another main problem is related to discharge from processing units. With a long coastline in Maharashtra, the best possible means can be adopted to manage the discharge, he said.

Maharashtra came out with a textile policy about six months ago. It has introduced an interest subsidy scheme linked to the Technology Upgradation Fund Scheme of the Union government.

The State has a large number of ginning and pressing, and weaving units. However, just 20 per cent of the cotton produced in the State is spun by the mills in Maharashtra. The rest goes to other States and countries, he said.

SIMA Chairman S. Dinakaran said a presentation was also made on facilities in Gujarat for the textile industry.

The State has textile parks and special economic zones. Gujarat already has a large number of textile units and is the largest producer of cotton in the country. But, spinning is the segment which is missing in the State.

For textile mills in Tamil Nadu, the cost of transport of cotton from growing centres to the mills has shot up. The units have also been hit by power and labour shortage.

In the long run, Tamil Nadu does not seem to be attractive for new projects. Hence, the mills are looking at different locations. The association is facilitating talks with different States for the interested mills.

It held a similar meeting on Karnataka and plans to organise sessions on facilities in Chhattisgarh and Madhya Pradesh too.

Hindu – Nov 12, 2012

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NOVEMBER 12, 2012


Govt nod for 21 textiles parks in 12th Plan

The government today approved the setting up of 21 integrated textiles parks envisaging a total investment of Rs 819 crore during the 12th Five Year Plan (2012-17).

These parks were to implemented during the 11th Five Year plan (2007-2012) under the Scheme of Integrated textile parks (SITP) that aims to leverage private sector investment, generate employment and create need-based and product-based world class infrastructure for the industry.

"21 parks were sanctioned in the 11th Plan and this programme is spilled over in the 12th Plan. Therefore, the Cabinet approved today implementation of 21 parks in 12th Plan," Finance Minister P Chidambaram told reporters after the CCEA meeting here.

Of the total outlay, the CCEA has also approved the utilisation of Rs 200 crore for setting up of additional parks under the scheme in the current plan in such a way that the committed liability of new parks does not exceed this amount.

"The CCEA approved to carry over the committed liability beyond Rs 200 crore amounting to Rs 819 crore into the 12th plan" as per the amendment approved in 2010, the release said.

To speed up implementation of these parks in the current plan period, the CCEA approved the adoption of amendments in the guidelines of the SITP, an official release said.

The green field textiles parks are necessary against the backdrop of increasing cost of production in the established cluster and emphasis on environmental compliances.

Business Standard – Nov 12, 2012

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NOVEMBER 12, 2012


Indian Denim Players Eye 15% Export Growth

India’s domestic denim market is said to be growing by 10 per cent, and now cut in denim production by China and the US has propelled export order books by 15-20 per cent for Indian players. Though there has been a strong competition from Pakistan and Bangladesh, Indian players are witnessing a 15 per cent surge in foreign orders.

Many denim players like Aarvee Denims are expecting a further rise in exports. Industry experts estimate that China and US have cut down denim capacity by roughly 500 million metres in last one year. Add to that, Indian denim industry has seen massive expansion in recent times. For Nandan Exim, orders have risen from the US as well as Middle East regions in last one year. Moreover, Chinese denim makers have also been growing uncompetitive day-by-day, thanks to Yuan appreciation and high input costs. And China has to buy cotton from outside unlike India, wherein Chinese denim makers are becoming uncompetitive and hence orders are shifting in favour of India, Bangladesh and Pakistan.

Yarns and fibres – Nov 09, 2012

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Cotton production for 2012-13 to around 354 lakh bales: CAI

Area under cotton is expected to be around 3% lower compared to last year 12 November, 2012 by admin. This year (2012-13), the total production of cotton is estimated to be around 354.25 lakh bales, according to Cotton Association of India.

This year the area under cotton is expected to be around 3% lower compared to last year. The projected balance sheet drawn by CAI for the year 2012-13 estimated the total cotton supply at 417.46 lakh bales while the domestic consumption is estimated at 266 lakh bales, thus leaving an available surplus of 151.46 lakh bales.

cottonyarnmarket – Nov 12, 2012

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NOVEMBER 12, 2012


Govt cuts VAT on textiles; traders rue timing

HYDERABAD: The state government on Wednesday issued an ordinance reducing Value Added Tax (VAT) on textile goods from 5% to 1% although the reprieve is being seen as having come a bit late what with it having been cleared in principle as far back as in April of this year. In the interim, traders have had to suffer harassment from the corrupt officialdom.

While the traders blamed chief minister Kiran Kumar Reddy, who holds the commercial tax portfolio, for the inordinate delay, his office (CMO) is sitting on similar issues such as tax waiver on pulses and reduction of VAT on plastic furniture.

"The chief minister has not been able to take out time and therefore the file is stuck at the CMO even though an in-principle nod has come from the departments of revenue and finance.

"As a result, corrupt officials are harassing the traders to make a fast buck," said Nitin Parekh, a commercial tax expert. Acknowledging the textile traders' argument that it was unfair to tax textile goods in Andhra Pradesh when they were exempted from the VAT in other states, the CM had agreed to reduce the tax burden on them on April 20 with the move designated to take retrospective effect from April 1. But his verbal orders had no effect on officials and the ordinance to the effect was not promulgated.

"The harassment was unbearable. The ordeal faced by the traders was a double whammy — the customers were not willing to pay the 5% tax and the officials insisted on collecting it. There was no other go for them but to bribe the officials.

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"The delay in the ordinance was unfortunate; but I am happy that it has at last come into effect," said A Prakash, president of the AP Federation of Textile Associations.

Traders of plastic furnitures and pulses are facing a similar situation. The CM had in August agreed to reduce the VAT on plastic furniture from 14.5% to 5%, and issued verbal instructions for the same.

But the change did not come in force as the GO (government order) has still not been issued. Here, too, the file is stuck in the CMO.

The reduction of tax on plastic furniture is significant as the higher rates in the state is leading to trade diversion to neighbouring states where, with the exception of Tamil Nadu where it is 5%, no tax is levied on these goods.

Calls for tax exemption on foodgrains and pulses are being made on the similar plea that these goods were tax-free in all states but AP.While the traders agree that the CM is sympathetic to the argument, they complain that the files were gathering dust in his office.


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Powercuts blow out Diwali lights for many workers

COIMBATORE: There is not much cheer for workers in the western region this Diwali. While most garment units are yet to give bonus to workers in Tirupur, payouts have remained muted in industrial units across the western region due to slowdown and production loss due to severe power cuts.

NOVEMBER 12, 2012


"Bonus disbursements have not been brisk this year. Most mills have either maintained payouts at the same level or reduced it slightly owing to demand slowdown and power cuts," said K Jagannathan, secretary, Joint Action Council, Coimbatore and Erode District Textile Mill Workers' Unions. "The slowdown and power cuts have hit bonus payments," said S Arumugam, state vice president, CITU.

"It is not a happy Diwali for workers," said C Padmanabhan, secretary, textile union, CITU. Though bonus talks are over in most of the textile mills, unions say that there is nothing much in it for them. "Bonus payment in textile units has been quite less compared to the past," they said. Textile mills have offered 9.5%-23% bonus for workers this year.

"Our capacity utilization levels remain quite low due to the power shortage. Payouts are not very high as mills are finding it difficult to achieve break-even," said S Dinakaran, chairman, Southern India Mills' Association.

Engineering units have offered better payouts for workers, union officials said. While units that have been badly hit by the slowdown have offered 10%-12% bonus, the maximum payout stood at 36%. The minimum bonus according to Payment of Bonus Act is 8.33% and the maximum is 20%. Some companies pay over and above the maximum as ex-gratia.

Bonus talks for plantation workers in Valparai are in the last lap. While workers are demanding 18% bonus and a 2% lump-sum payment, estate managements are willing to offer only 17% bonus.

A vast majority of the 2,000-odd garment units in Tirupur are yet to disburse bonus to their workers. "More than 60% of the units are yet to distribute bonus. We expect that they would make the payments today (Saturday)," said M Chandran, district secretary, CITU, Tirupur. Garment units are offering only 0.5%-1% more than last year, he said.

NOVEMBER 12, 2012


"There has been no increase in bonus (payments) as we are yet to recover fully from the demand slowdown," said A Sakthivel, president, Tirupur Exporters' Association. Most units in the knitwear town pay bonus only days before Diwali as migrant workers, who form the majority of the labour force, leave for their native places immediately after receiving the money. "We usually pay bonus during the weekend that precedes Diwali," Sakthivel said.


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Textile sector: Sukhbir stresses on need to explore ties with Pak

Deputy Chief Minister Sukhbir Singh Badal on Wednesday underlined the need to give a push to the textile industry, as it had great potential to generate employment.

Speaking at a function organised by All Pakistan Textile Manufacturers Associate in Lahore, Badal said the textile industries of Eastern and Western

Punjab should join hands and supplement each other’s strength.

He added that the industry was well developed in Pakistan, as it constituted more than 70 per cent of the exports of the country, and Punjab too was actively pursuing the initiative of the textile park in the Malwa region.

Inviting the APTMA delegation to Punjab, the deputy chief minister said textile manufacturers of Eastern and Western Punjab should explore the possibility of a joint venture to excel in competitive goods.

Lauding the improvement of Indo-Pak trade ties, Badal said pre-dominant population on both sides desired this and both the governments would have to bend before the collective will of the people.

Indo-Pak deaf, mute teams to clash in Dosti Cup

NOVEMBER 12, 2012


CHANDIGARH: Describing sports as most effective confidence building measure, Punjab Deputy Chief Minister Sukhbir Badal and Chief Minister of Pakistan Punjab Shahbaz Sharif jointly opened a eight-day youth festival and Dosti Cup for deaf and mute teams in Lahore on Wednesday. The games would continue up to November 15, 2012.

For the first time, a contingent of 1,381 players plus their coaches and managers have descended on the soil of Pakistan for these games, said Sharif. While teams from 27 countries will compete in athletic events, badminton, football, table tennis, India and Pakistan will clash in four events hockey, kabaddi, tug of war and wrestling. In the Dosti Cup, deaf and mute teams of India and Pakistan will vie for titles in cricket, kabaddi, wrestling, badminton, table tennis and chess. While saying that he had been trying to promote traditional games, especially between India and Pakistan, Sukhbir added: Two World Cup Kabaddi tournaments organised by Punjab government reiterated the resolve of the two countries to regain the glory in traditional games of Asia. Sharif will be the chief guest in the third edition of World Cup Kabaddi in Bathinda on December 15.


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NEWS CLIPPINGS - Export › download › ibtex-news2012.pdfNATIONAL NEWS 1 “Maharashtra, Gujarat...

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