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Cotton
prices would no more decline in the coming weeks
Cotton prices would not fall below their current levels
in the coming weeks, mainly due to the strength in demand
this season and an expected fall in production in 2005-2006.
After prices rose about 15% in the past three months on
the international market, domestic cotton prices are also
being raised in Pakistan and India.
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US
Home Textile Imports in January 2005 : China vs. India and
Pakistan
US imports of home textiles from China were far from booming
in the first month without quotas. Pakistan was a clear
loser on the US market for made-ups in January while India
maintained its market shares. Shipments from Thailand surged
in specific categories. 
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Bangladesh
vs. China on US apparel market
Bangladeshi exports of woven apparel dramatically declined
in January, the first month of the quota-free era. Exports
of knitted apparel are apparently more resisting China's
threat. The current liberalization in clothing trade will
probably force Bangladeshi exporters to increasingly specialize
in a few products such as cotton underwear, as indicated
by our comparison of US apparel imports from Bangladesh
and from China in January.  |
India
could be excluded from EU's GSP treatment
EU's decision over the new GSP scheme was Wednesday delayed
after Italy and Portugal proposed to exclude India from
GSP benefits in addition to China, as a result of the current
surge in EU textile and apparel imports. EU ministers did
not either agree over the list of countries which will benefit
from additional "GSP-Plus" treatment, resulting
in duty-free access to EU's market for a wide range of products.
Implementation of EU's new GSP could be delayed after April
1st. |
US
Apparel Imports in January : China vs Hong Kong, India,
Pakistan and Vietnam
China's apparel prices dramatically fell in January after
US quotas were removed, as indicated by latest US official
data. China's exports are now cheaper than shipments from
India and Pakistan in most sensitive categories. Vietnam
could finally become the most threatening competitor to
China after its apparel will also enjoy a quota-free access
to the US market, as shown by our category-based comparison
of US apparel import prices in January.  |
EU
textile industry officially requesting quotas on China's
apparel
10 March 2005 - EU's textile industry association Euratex
officially requested EU's Commission to re-impose quotas
on a wide range of textile and apparel imports from China.
The surge in shipments last week unveiled by Chinese official
data is behind EU industry's move. Since EU data do not
yet indicate such a boom in imports from China, EU's Commission
will probably be long in reacting.  |
US
trade priorities will modify textile rules
Far from being completed, global liberalization of textile
trade will continue in the coming years. US top trade administration
Tuesday released an exhaustive report about on-going negotiations
showing that textile and apparel trade will be subject to
new radical changes in addition to just completed quotas'
phasing-out. 
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EU
could impose duties up to 80% on China's polyester fiber
The European Union could impose additional anti-dumping
duties up to 80% on imports of polyester staple fibers from
China, EU's Commission just proposed following a 1-Year
investigation. Duties of 21% on PSF imports from Saudi Arabia
were also suggested. Taiwanese fibers would no more be punished
while duties on Korean PSF could be lowered.  |
Latest
Regulations regarding Textile Trade
W.T.O. : Definitive ruling on US cotton subsidies.
- US CITA: Duty-free imports from Mauritius.
- US Customs : Results of March reopening of 2004 quotas,
results of February China safeguard reopening, Mauritius
AGOA benefits, etc.
- US International Trade Administration: Anti-dumping duties
on shop towels from Pakistan and Bangladesh.
- EU Commission proposal: Anti-dumping duties on PSF from
China, Saudi Arabia, Korea and Taiwan.
- Hong Kong's Trade and Industry Department: Automatic export
licenses for textile products.
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Govt
plans to reduce sales tax on cotton exports to zero
The Pakistan government plans to reduce the rate of sales
tax to zero on the full chain of 70 per cent exports of
cotton and its products. The government is also considering
allowing a handsome relief to textile manufacturers-cum-
exporters from the payment of sales tax on exports in the
next budget to make them competitive in the international
market. This was disclosed by Central Board of Revenue Chairman
Mohammad Abdullah Yusuf in a meeting with the members of
Site Association of Industry here on March 7. A large scale
change in the sales tax system is being made to accelerate
trade and industrial activities.
He said that rates of income tax were being gradually reduced
for the corporate sector, and by the year 2007, the rates
for all commercial organizations, including banks, will
come to 35pc. However, the Securities and Exchange Commission
of Pakistan has set up a task force to review the rates
of income tax keeping in view the changing conditions of
business. Decision will be taken on receipt of recommendations
from the task force. |
India
scraps duty-free yarn import facility
The ban is said to have been imposed due to the increasing
competitiveness of Pakistan's efficient yarn manufacturing
sector... |
Cotton
Yarn Prices are rising in India
Cotton yarn prices have firmed up by 18-33 cents per kg
over the last three weeks in India. While the increase has
been substantial in fine count yarns, coarse count yarns
have also been affected. 
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Shortage
of Caustic Soda, Soda Ash hits towel-processing industry
The towel processing industry which is mostly based at Karachi
is in danger of closing down within a short time due to
acute shortage of Caustic Soda and Soda Ash which are basic
inputs for dyeing and processing.. |
EU
and US will be long in re-imposing quotas on China's apparel
EU and US will not immediately re-impose quotas on apparel
imports from China, although shipments are spectacularly
surging. EU's Trade Commissioner Tuesday made it clear that
Europe will wait longer before taking any safeguard measure
while the US administration is still barred from any action
by a legal procedure. 
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Cotton
production may fall next year
The government estimates that cotton output will remain
slightly over 12 million bales the next fiscal year compared
to this year’s bumper crop of around 15 million bales,
a senior government official told reporters. “Over
12 million bales are expected in the next fiscal year,”
he said referring to a working paper prepared for the meeting
of the Federal Committee on Agriculture (FCA), to be held
later this month. The official said that prevalence of highly
favorable weather in 2004-05 might not continue during 2005-06.
The official figure for this year’s production is
14.6 million bales, but estimates of the All Pakistan Textile
Mills Association (APTMA) and the Pakistan Cotton Ginners
Association (PCGA) suggest that the actual crop size is
a record 15 million bales, which has brightened the prospects
of achieving over five percent growth in agriculture against
a budgetary target of 4.2 percent. The target outputs of
cotton are the initial calculations of the Ministry of Food,
Agriculture and Livestock (MinFal). They could be revised
after inputs of other stakeholders such as the Indus River
System Authority (IRSA), the Commerce Ministry, the Trading
Corporation of Pakistan (TCP) and the Pakistan Central Cotton
Committee (PCCC).
The ministers and secretaries of food and agriculture of
the four provinces and Azad Jammu and Kashmir (AJK) will
also attend the meeting, the official said. |
Textile
Asia 2005 attracts buyers from 35 states
The three-day Textile Asia 2005 exhibition ended with a
lot of business and enthusiasm on part of both buyers and
sellers. The Exhibition was held from March 19 to 21, organized
by the Federal Ministry of Investment and Privatization
and ministry of textile industry in collaboration with e-Commerce
Gateway. The sellers of high-tech machines from Japan, Germany,
Spain, England, China and other countries said they were
hopeful to make good agreements with Pakistani textile industry.
Some 35 countries participated in the exhibition and hundreds
of thousands visited the exhibition. Buyers from across
Pakistan were found asking about the working of latest technology
and prices. Knitting, embroidery, looms and other machines
attracted the visitors. A machine, circular knitting machine
from Taiwan was of special attraction for the buyers. The
representative of the company said that during the three
days they have sold some 50 machines, which cost US$29700
per machine.
Al Murtaza Machinery Co had the biggest pavilion and said
some 80,000 people visited the pavilion. Director of the
company was hopeful that a number of agreements were in
process and would be materialized in few weeks.
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Carpet
exports may touch $235 million mark
Pakistan's carpet exports are likely to touch the mark of
$ 235 million during the year 2004-05 against last fiscal
year's $ 222 million. According to carpet industry sources,
exports are picking up mainly due to improved image of Pakistan.
"Several positive factors have combined to brighten
the export outlook. The improving image of Pakistan has
created new confidence among investors and our business
partners abroad," carpet industry expert, Naeem Tahir
Sheikh said. Another important factor is the increasing
production of tribal/classical design carpets, which are
a hot favorite in the international market. After the departure
of Afghan weavers these carpets are now being made by traditional
weavers in the Punjab, especially in Gujranwala, Sheikhupura,
Faisalabad, Kasur, Jhang and Sialkot Districts.
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3.5
per cent duty reduction on export of textile and clothing
to EU
Pakistan will get duty reduction of around 3.5 per cent
in export of all products except for textile and clothing
to European Union (EU) member countries under the new normal
generalized system of preferences (GSP) scheme. The new
EU GSP scheme is likely to be effective from April 1, 2005
instead of July to give maximum help to Tsunami hit countries
particularly Sri Lanka. Tasneem Noorani, Secretary Commerce
said that under the normal GSP scheme Pakistani exportable
products would enjoy duty preferences of around 3.5 per
cent on almost all products to the EU markets. However,
for the clothing sector, the duty reduction would be in
the range of 2.5 per cent under normal GSP scheme and for
yarn and fabrics, the duty reduction in import duty would
be in the range of 1.2 to 1.4 per cent. Pakistan, however,
would not get any preferences in duty on export of all varieties
of rice, agricultural products, Molasses and ethanol alcohol
because all these products were placed in the sensitive
list of the GSP scheme.
Answering a question, the secretary said that Pakistan had
done an extensive lobbying for getting access to the GSP
plus scheme-zero rate of duty - but it was not materialized.
He, however, said that government was considering various
proposals for increasing Pakistan's textile and clothing
exports to EU following the failure to get an access to
the GSP plus scheme. Mr Noorani said that Pakistan linked
the GSP plus scheme with countering the extremism and terrorism
so that to generate maximum economic activities in the country
which would ultimately result in reduction of these menaces.
On the other hand, the EU councils of ministers are scheduled
to meet on March 24 to consider Indian case to qualify for
getting preferences on its textile and clothing.
In the draft released by the EC in October last, the graduation
limit for textile and clothing for the new GSP scheme was
fixed at around 10 per cent. While the Indian share of textile
and clothing in the GSP scheme was around 11 per cent that
means that India could not get preferences in duty on textile
and clothing under the new normal GSP. |
| Textile
millers install employ latest technology
Nakshbandi Industries was the first publicly-owned company
in the country to specialize in the manufacturing of terry
towels, bathrobes, sheets, pillow and duvet covers and apparel
fabrics. Amongst the environmentally friendly measures undertaken
by Nakshbandi is the purchase of all its dyestuffs and chemicals
from ISO certified European and US manufacturers, and the
construction of a water recycling plant on the premises
to process all the water contaminated by the manufacturing
process. Nakshbandi Industries in 1988 installing a Pad-thermo
sol, followed by another unit in 2001. The company installed
its first Monforts stenter in 1997, and a second in 2001.
A Sanforiser has also been installed. "We use Monforts
technology because the company is the leader in dyeing and
drying," says Mr Teli. As a high-volume producer, Nakshbandi's
output is formidable. The company processes 50,000 meters
of fabric a day, which adds up to 1.5 million meters a month.
Production of towels alone runs to 20 tones per day with
plans to double this next year. The company specializes
in pure white institutional towels, under the brand name
Seagull, while solid colors, geometrics and floral are produced
to specification. "With checks at every stage of production
and post-production to measure the quality status of the
product, we are able to assure our clients of a consistent,
high grade product of terry towel," says Mr Teli. Nakshbandi,
which employs 1,800 people, has a turnover of $ 25 million
per year. It is a supplier to many of the leading brand-name
stores, including Wal-Mart, Macy's, Carrefour, IKEA, Gap,
and J C Penney.
Karachi-based conglomerate Gani & Tayub also known as
the G&T Group, one of Pakistan's most diversified textiles
and garments producers, has installed a Montex 5000 stenter
at its subsidiary Mustaqim Dyeing & Printing Industries,
which manufactures and exports knitted and woven fabrics,
bed linen, home textiles and ready-made garments. Amongst
the technologies used by Mustaqim are three rotary printing
machines able to handle 12, 15 and 21 colors. The company
has its own in-house design department equipped with a CAD
and CAD system, and its own laboratory. Mr Bilwani says
that Mustaqim now has an annual turnover of $ 20 million,
and employs approximately 750 people. More than 75% of the
company's production is exported, 60 % of this destined
for the European Union. Mustaqim purchased a Montex 5000
through the local representative Al Ameen, in order, says
Mr Bilwani, to help keep the company in a highly competitive
situation. "It has always been our policy to invest
in the technology that we feel is right for our production
quality and our projected volume of output," he says.
"Since the machine was installed, we have been able
to add both extra capacity and flexibility. Competition
in our export markets is intense, and we need to be able
to move quickly to fulfill our orders, while at the same
time maintaining the highest quality standards."
The
universal and modular Monforts stenter principle offers
an individual adaptation to all the demanded finishing effects
- and at the same time versatile applications for the range.
For woven fabrics, with the Qualitex PLC system, the TwinAir
and maintenance-free chain technology, Monforts stenter
technology is fully geared to meeting fast-changing demands.
This is of particular importance to Mustaqim, which in addition
to supplying its distributors and wholesalers overseas is
also a supplier to branded stores, including IKEA, Wal-Mart,
Kmart, and Target USA. |
Govt
targets 12m bales for 2005-06
The federal government has set 12 million cotton bales target
for 2005-06 season and it would import half million tones
of urea to meet the shortfall during Kharif season. At a
press briefing on 29th March after the meeting of Federal
Committee on Agriculture (FCA), Sikandar Hayat Bosan, federal
minister for food, agriculture and livestock said that water
situation had improved due to widespread rains. “IRSA
(Indus River System Authority) has reported water availability
at three MAF (million acre feet) as carry-forward as on
March 31, 2005,” he said. He said that during Kharif
2004-05 water availability in canal system was 59 MAF, while
this year the canal water availability would be 73 MAF,
which was an impressive increase of 24 percent.
The 82nd meeting of FCA was held to discuss the progress
of Rabi crops 2004-05 and set targets for Kharif season
of 2005-06. The meeting was attended by food and agriculture
ministers of all the four provinces, IRSA officials and
other officials of federal and provincial departments. The
meeting also examined the inputs situation for the Kharif
season. The minister said the FCA meeting also reviewed
performance of agri sector during Rabi season, which mostly
remained higher than set targets. “According to the
information made available by the provincial food and agriculture
departments, we expect that wheat production will surpass
this year target of 20.2 million tones,” he said.
“Despite recent rains and destruction of standing
crop in different areas of the country, the production will,
hopefully, be at 21.2 million, which will be a record after
1999-2000 record production of 21.1 million tones and four
percent higher than last year production.” The minister
said that rice production was estimated to stand five million
tones by the end of current season, which indicated four
percent rise over the last year production of the commodity.
He said the sugarcane production was estimated to stand
at 45.3 million tones against the year’s achievement
of 53.8 million tones showing decrease of 15.8 percent.
However, the minister accused the sugar millers for decline
in the sugarcane production apart from creeping water shortage
this year. But, Mr Bosan said that there was enough stock
of sugar in the country as Trading Corporation held 375,000
tones of the commodity which negated any need to import
sugar. He said that with different protocols to be signed
with China, Pakistan was expected to get large market for
Irri variety of rice. |
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