Textile value Chain

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Cotton Association (CAI) has released its April estimate of the cotton crop for the season 2018-19 beginning from 1st October 2018. The cotton crop estimated by the CAI for 2018-19 crop year now is 315 lakh bales, which is lower by 6 lakh bales compared to its previous estimate of 321 lakh bales released during last month. Statements containing the state-wise estimate of the cotton crop and the Balance Sheet for the season 2018-19 with the corresponding data for the previous crop year are enclosed.

 

The Cotton crop estimate now released by the CAI for Maharashtra is lower by 2 lakh bales compared to its previous estimate made during the last month while the cotton crop estimates for the North Zone, Madhya Pradesh, Telangana and Andhra Pradesh now made by the CAI are lower by 1 lakh bales each compared to the CAI’s previous month estimate. The scarcity of water in some states and uprooting of cotton plants by farmers in about 70-80% area without waiting for 3rd and 4th pickings are stated to be the main reasons for reduction in the cotton crop this year.

 

Total cotton supply estimated by the CAI during the period from October 2018 to April 2019 is 314 lakh bales of 170 kgs. each which consists of the arrival of 278.73 lakh bales upto 30th April 2019, imports of 7.27 lakh bales upto 30th April 2019 and the opening stock at the beginning of season on 1st October 2018 at 28 lakh bales.

 

Further, the CAI has estimated cotton consumption during the months of October 2018 to April 2019 at 183.75 lakh bales while the export shipment of cotton estimated by the CAI upto 30th April 2019 is 42.50 lakh bales of 170 kgs. each. Stock at the end of April 2019 is estimated by the CAI at 87.75 lakh bales including 40 lakh bales with textile mills and remaining 47.75 lakh bales with CCI, MNCs and others (MNCs, Traders, Ginners, etc.).

 

The yearly Balance Sheet projected by the CAI estimates total cotton supply till end of the cotton season i.e. upto 30th September 2019 at 374 lakh bales of 170 kgs. each consisting of the Opening Stock of 28 lakh bales at the beginning of the cotton season, cotton crop for the season estimated at 315 lakh bales and imports estimated by the CAI at 31 lakh bales, which are higher by 16 lakh bales compared to the previous year’s import estimated at 15 lakh bales.

 

Domestic consumption estimated by the CAI for the entire crop year i.e. upto 30th September 2019 is 315 lakh bales, which is lower by 1 lakh bales compared to its previous estimate made during last month while the CAI has estimated exports for the season at 46 lakh bales, which are lower by 23 lakh bales compared to the previous year’s cotton exports estimate of 69 lakh bales. The carry over stock estimated at the end of the season is estimated at 13 lakh bales.

                                                                                                                                                 

HIGHLIGHTS OF DELIBERATIONS HELD AT THE CROP COMMITTEE MEETING OF COTTON ASSOCIATION OF INDIA ON 6TH MAY 2019

Crop Committee of Cotton Association of India (CAI) met yesterday. 21 members were present. Based on the data available from various trade sources, upcountry associations and other stakeholders, the Committee arrived at its April estimate of the cotton crop for the 2018-19 season beginning on 1st October 2018 and drew estimated cotton balance sheet.

 

The following are the highlights of the deliberations at the said meeting:-

 1.The cotton crop estimate for the season 2018-19 is reduced by 6 lakh bales to 315 lakh bales from the CAI’s previous month estimate of 321 lakh bales.

 2.The projection of cotton export for the season is reduced from 47 lakh bales to 46 lakh bales on account of prevailing higher prices of Indian cotton and smaller crop size.  Last year, cotton exports from India were 69 lakh bales.  Thus, the cotton exports this year are estimated lower by about 33 percent

3.Import of cotton has been projected at 31 lakh bales compared to the last year’s import of 15 lakh bales.  Thus, the cotton imports this year are estimated higher to be more than double compared to that of last year.

4.Estimate of yearly consumption is reduced by 1 lakh bales to 315 lakh bales compared to the previous month’s estimate of 316 lakh bales.

5.Indian cotton arrivals during the months of October 2018 to April 2019 are estimated at 278.73 lakh bales.  A correction for the last few months is made in the arrival figures of the North Zone and also for Gujarat State.

6.Shipment of imports during the months of October 2018 to April 2019 are estimated at 7.27 lakh bales.

7.Cotton export shipments during the months of October 2018 to April 2019 are estimated at 42.50 lakh bales.

8.Consumption by Indian spinning mills for 7 months i.e. from 1st October 2018 to 30th April 2019 is estimated at 183.75 lakh bales.

9.Cotton stock held by mills in their godowns on 30th April 2019 is estimated at 40 lakh bales.  This means the mills are having about 47 days stock inside mill godowns.

10.CCI, MNCs, Ginners and MCX are estimated to have stock of 47.75 lakh bales as on 30th April 2019 which is about 51 lakh running bales. 

11.Thus, total stock held by spinning mills and stockists on 30th April 2019 is estimated at 87.75 lakh bales of 170 kgs. each which is equal to about 93 to 94 lakh running bales.

12.Due to small crop size and a very tight cotton balance sheet, closing stock as on 30th September 2019 is estimated by the Committee at 13 lakh bales of 170 kgs. each.

 

 

 

In the evolving scenario where the quest for sustainability is getting bigger day by day and consumers are raising concerns on environmental impacts posed by textile industries, Lenzinghas appropriately positioned itself with its innovative range of products. From producing fibers made from wood to becoming a global technology leader, Lenzing’s history spans 80 years of innovation. “Today, sustainability is a movement and not just a trend-able goal,” Vernon Yeo, Head Marketing and Branding – Asia, Middle East & Africa told IMAGES Business of Fashion Bureau on the sidelines of the India Fashion Forum 2019, held in Mumbai in March. As per the Austrian fiber firm, globally the industry produces close to 100 million tons of fiber every year. This is not without negative effects on the environment. Fortunately, more and more consumers are aware of this ecological strain and so, the demand for sustainable textile is rising. With businesses in key markets in Europe, America and AMEA (Asia, Middle East, Africa), Lenzing is known for its robust B2B textile value chain. It collaborates with its international network of partners to contribute towards improving the ecological performance throughout the entire value chains. It also works towards enhancing the environmental benefit of the end products. “A lot of companies want to be sustainable today. But if you look at their value chain, many have just one part of them as sustainable while the need is to be sustainable throughout the value chain by the time it reaches the customer,” Vernon said.

 

sCore Ten Strategy

The brand introduced its sCore Ten strategy to understand customers and their substantial need, where the key element is essentially to reach out to customers downstream but not down to the consumer. It forces a conscious effort to reach to its customers through its upstream value chain that familiarises and re-enforces ‘down to the customer’, to understand that what they are buying when a tag states ‘Lenzingfibre’, which is a sustainable fibre through a sustainable production process. The spokesperson shared an example of its partner brand Mango which has a Lenzing tag and also educates the customers about the kind of tencel (modal fibre) the garment contains.

“The aim is to further develop the goodwill with the upstream value chain partners. We also want to extend this goodwill downstream to our present retailers,” Vernon shared.

 

Product Innovation

Made from cellulose, LENZING™ fiber is a natural component. The firm uses all the valuable wood components that a renewable and natural raw material has to off er, which implies that at the end of their life cycle, the fibers biodegrade –and nature returns to nature. The LENZING™ standard Lyocell and Modal fibers are used in manufacturing workwear, home segment and in the packaging industry.

TENCEL™ is Lenzing’s flagship brand for textiles. Offering features such as soft to skin, smooth to touch, luxurious in shine and fluidity, it is used for a variety of highly specialised applications in garment manufacturing. Similarly introduced TencelLuxe in 2017 for the premium luxury market, the filament product offers fluidity, shine and softness as to silk. The introduction of LENZING™. ECOVERO™ Viscose fibers mark a new milestone in Lenzing’s sustainability journey. Derived from certified renewable wood sources using an eco-responsible production process, the fibers meet high environmental standards for a sustainable lifestyle and contributing to a cleaner environment.VEOCEL™ fibers comprises their non-woven segment. These fibers’top qualities, regarding liquid absorption, make them an ideal ingredient for sanitary and baby care products, facial sheet masks, cosmetic pads, and all other kinds of wet and dry wipes.

 

The Indian Market

Partnering brands like Zara Uniqlo, H&M, for Lenzing India is a big production center and a consumer market as well. Lenzing is supplying to all major apparel categories in India including women’s ethnic wear, intimate wear, denim wear and home segment. Arpit Srivastava, Marketing and Branding Manager SA said, “Our biggest consumer market would be the outer wear segment that comprises the formal wear, western wear and women’s wear brands as our products find a larger application. We have also been partnering with innerwear brand like Jockey for close to a decade now. Also Goversons, Prettysecrets, etc., a lot of these brands have a very strong regional presence in Tier II and III cities and are using our products. In these markets volumes will not be high but our product feature like softness comes out really strong here.” It has been working with brands like AND and Global Desi which are not just using Lenzing products but also talking about the unique process of these Lenzingfibres to consumers. The brand has been participating in some of India’s most renowned fashion weeks, showcasing its collections through sustainable processing in the entire value chain. “We are trying to do the best we can to educate consumers into understanding why our product is better. This is because when people get what is special about this product, then they are willing to buy it, and even pay more for it,” Vernon concluded.

 

 

Well, if you were delighted and celebrating the chances of getting a higher pension from the Employees Provident Fund Organisation (EPFO) after a recent Kerala High Court ruling, you should read this. The EPFO is reportedly planning to challenge the high court decision in the Supreme Court.  As per the existing rules, an individual is entitled to get pension under the Employees’ Pension Scheme (EPS) of the EPFO. Earlier, the salary cap used to calculate pension was fixed at Rs 15,000 per month. However, the Kerala HC had ordered the retirement body to pay the pension on full salary of the employees, removing the current cap.  According to a report by The Economic Times, the EPFO officials have argued that the monthly contribution to the EPS pool is very low. Hence, the organisation will not be able to pay higher pensions.

 

 

Cautioning that US firms seeking to expand exports to India could be hit, a group of 25 US lawmakers recently urged the US Trade Representative (USTR) Robert Lighthizer not to terminate the generalised system of preferences (GSP) benefit with India after the 60-day notice period following the announcement of such an intention by President Donald Trump expired on May 3. The GSP trade preference programme promotes economic development by allowing duty-free entry for thousands of products from beneficiary countries. On the eve of the end of the notice period, the lawmakers, in a letter, urged Lighthizer to continue negotiating a deal that protects and promotes jobs that rely on trade—both imports and exports—with India, according to a news agency report. No party, in the United States or India, would benefit from terminating GSP benefits, the letter said. “American companies that rely on duty-free treatment for India under the GSP will pay hundreds of millions of dollars annually in new taxes. In the past, even temporary lapses in such benefits have caused companies to lay off workers, cut salaries and benefits, and delay or cancel job-creating investments in the United States,” the letter added.

 

 

The Regional Comprehensive Economic Partnership (RCEP)—the proposed free trade agreement between 10 ASEAN member states and their six FTA partners, namely India, Australia, China, Japan, New Zealand and South Korea—talks have been under way for over six years now, with over 25 rounds of negotiations between all FTA partner countries. The 16 member countries have now set a deadline of end-2019 to conclude the negotiations. The trade bloc comprising the ASEAN, Australia, China, India, Japan, South Korea and New Zealand accounts for 25% of global GDP, 30% of global trade, 26% of FDI flows, and 45% of the total population. From India’s point of view, RCEP is critical. RCEP countries account for almost 27% of India’s total trade. Exports to RCEP countries account for about 15% of India’s total exports, and imports from RCEP countries comprise 35% of India’s total imports.

 

 

Despite the moderation, the services PMI was in the expansion territory for the 11th straight month.

The country's services sector activity fell to a seven-month low in April owing to softer rise in new business and disruptions arising from the elections, a monthly survey showed Monday.However, predictions that economic conditions will normalise after the elections underpinned optimism regarding the outlook and supported a stronger upturn in employment.The seasonally adjusted Nikkei India Services Business Activity Index, fell from 52 in March to 51 at the start of the 2019 financial year, pointing to the weakest upturn in output since last September.Despite the moderation, the services PMI was in the expansion territory for the 11th straight month. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction."Although the Indian private sector economy looks to be settling into a weaker growth phase, much of the slowdown was linked to disruptions arising from the elections and companies generally foresee improvements once a government is formed," said Pollyanna De Lima, Principal Economist at IHS Markit, and author of the report.The general election that began on April 11 is currently underway. Votes will be counted on May 23.However, poll was not the only reason cited for the slowdown. In the service sector, competitive conditions and a shift towards online bookings among customers reportedly restricted new business gains and in turn growth of activity, Lima said.On the employment front, buoyed by ongoing improvements in new work and optimistic growth projections, service providers placed more people in jobs during April.

Meanwhile, the seasonally adjusted Nikkei India Composite PMI Output Index, that maps both the manufacturing and services industry, fell from 52.7 in to 51.7 in April, indicative of a slight pace of expansion in aggregate activity that was weaker than seen on average over the series history.On the prices front, the report said that rates of inflation for input costs and output charges remained weak by historical standards."Another key takeaway from the latest results is the lack of inflationary pressures in both the manufacturing and service sectors, which coupled with slower economy growth offers room for a further cut to the benchmark repurchase rate," Lima said.The next meeting of RBI's Monetary Policy Committee is scheduled on June 3-6.

 

 

 Petroleum Conservation Research Association (PCRA), Ministry of Petroleum & Natural Gas, Government of India and world’s third largesttractor manufacturer by volumes, TAFE – Tractors and Farm Equipment Limited, signed an MoU to aid conservation of resources across the country.An industry first, this collaboration between the premier government body PCRA and tractor major TAFE, was inked at New Delhi byMr. Alok Tripathi (IAS), Executive Director – PCRA, and Mr. T R Kesavan, President and COO – Product Strategy & Corporate Relations, TAFE.

 

PCRA plays an active role in proposing policies and strategies to the Government of India for petroleum conservation aimed at reducing excessive dependence of the country on oil. Under the MoU, it is planned to jointly conduct Agriculture Workshops and Melas by involving TAFE’s extensive dealership network in spreading awareness/ sensitizing farmers on the advantages of better maintenance and upkeep of their tractors and implements, resulting in lesser fuel consumption and efficient utilization of resources, thereby helping farmers maximize their productivity and profitability.

 

Field trials will be used to demonstrate the right usage and proven methods that impact the bottom line of the farmers, thereby increasing productivity per unit of power consumed. Precision agriculture and water conservation will mitigate over usage of critical resources. Contributing towards energy conservation and reducing dependency, this joint CSR effort by TAFE and PCRA will help the farmers to minimize costs through conservation, recycling and use of alternate energy.

 

This engagement will further include joint outreach events and knowledge sharing modules for farmers curated by PCRA through TAFE’s ‘JFarm Services’ App.

 

About TAFE: tafe.com

 

The world’s third largest tractor manufacturer and second largest in India by volumes with an annual sale of over 150,000 tractors, TAFE is one of the leading exporters of tractors from India with a turnover in excess of 93 billion. TAFE manufactures a range of tractors in the sub-100 hp segment in both the air-cooled and water-cooled platforms, and markets them under its four iconic brands - Massey FergusonTAFEEicher and the recently acquired Serbian tractor and agricultural equipment brand IMT – IndustrijaMašinaiTraktora. TAFE’s over 1000 strong distribution network covers the entire length and breadth of India. Apart from India, its products have found excellent acceptance in over 100 countries across the world, including developed countries in Europe and the Americas.

 

Besides tractors and farm machinery, TAFE manufactures diesel engines, silent gensets, agro engines, batteries, hydraulic pumps and cylinders, gears and transmission components, and has business interest in vehicle franchises and plantations.

 

About Petroleum Conservation Research Association (PCRA)

PCRA is a registered society set up under the aegis of Ministry of Petroleum & Natural Gas, Government of India.  As a non-profit organization, PCRA is a national government agency engaged in promoting energy efficiency in various sectors of economy. It helps the government in proposing policies and strategies for petroleum conservation, aimed at reducing excessive dependence of the country on oil requirement.  Over the years, PCRA has enlarged its role in improving productivity in use of various sources of energy.

 

PCRA aims at making oil conservation a national movement. As part of its mandate, PCRA is entrusted with the task of creating awareness amongst the masses about the importance, methods and benefits of conserving petroleum products & emission reduction.

 

 

Plans Workshop For Affected Homebuyers

The Maharashtra Real Estate Regulatory Authority (MahaRERA), which completed two years on May 1, will shift its focus on housing projects that are under stress and incomplete for various reasons. The regulator has identified 60-70 such “stressed” projects in the state—mainly in Pune, Mumbai and Thane—and has chalked out a plan to reach out to the members of such projects; to guide them in forming an association and help them complete the project. In March this year, MahaRERA had issued a standard operating procedure (SOP), allowing homebuyers to remove a developer in case the project was delayed, and hand it over to an expert panel for completion—with the regulator monitoring the proceedings. This step could be initiated only if at least 51% of the homebuyers affected by the delayed project gave their consent. “We have assessed 60-70 projects in three cities and now plan to reach out to the complainants as well as the remaining members,” MahaRERA secretary VasantPrabhu said. The regulator is planning a workshop in which affected homebuyers can get the most benefit from the order, Prabhu added.

Over the last two years, more than 20,000 projects have been registered with MahaRERA in the state. However, the number of completed projects stands at a little over 4,500. Many have yet to be completed despite the issuance of orders and even recovery warrants, allowing the revenue authorities to auction the property and return the money to the homebuyers. Under Sections 7 and 8 of RERA, a regulator can revoke the registration of a project as well as remove the developer, provided 51% of the project allottees agree on such an action. A separate panel under MahaRERA, with the help of experts, would carry out the remaining development work and take the project to completion. However, there’s a caveat: this process will be possible only for non-litigated projects. Citizens who have been issued “recovery warrant” orders — where the collectorate is to attach and auction the property — have barely had any luck, with just one case being executed of the 176 orders issued. ‘We have a long wait and if MahaRERA plans to help us by talking to the remaining members, it may help us to see the project through with some other builder,” one affected homebuyer said. Once revocation orders are issued by the regulator, the developer will lose all right to the project; their bank accounts will be frozen. The authority will set up a panel to prepare a project report, including financial details, in four months to decide on the future course.

 

 

Rs 782cr reserve price set for 7-acre property.

On Saturday, Indiabulls issued a sale notice for Palais Royale under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI). The housing finance company has set a reserve price of Rs 782 crore for the 28,409-square-metre or over 7-acre property. The Indiabulls notice for sale comes on the heels of a Bombay high court order, which allowed handover of the property to the lender. “Provisional liquidator is directed to forthwith hand over possession of the mortgaged property to the applicant (Indiabulls). However, the applicant shall conduct the sale of the property in consultation with the official liquidator...,’’ said Justice S J Kathawalla in his order, uploaded recently. The housing finance company had sanctioned an aggregate loan of Rs 915 crore under seven separate loan agreements to SRUI. In August 2015, a company petition was filed before the court, seeking to wind up the developer’s firm. In October 2016, an official liquidator was appointed. Indiabulls then initiated proceedings against the developer for recovery of its loans. On November 1, 2017, Indiabulls filed an application against the company under the Insolvency and Bankruptcy Code before the National Company Law Tribunal in its capacity as a “financial creditor” to initiate the corporate insolvency resolution process. In the high court, the builder’s lawyer submitted that Palais Royale’s construction had been subjected to various litigations before it as well as the Supreme Court.

Construction had been stayed and the issues pending before the apex court were related to the mortgaged property. SRUI’s advocate further said the applicant (Indiabulls) had come to the court with “unclean hands” as it was seeking possession of property far in excess of that mortgaged in its favour. Justice Kathawalla did not accept this argument, stating that Indiabulls is not a party before the apex court. “I further understand that there are no orders passed by the apex court prohibiting the transfer sought by the applicant,” said the judge. Earlier, TOI had reported that Rs 1,350 crore paid by high net worth individuals, who had booked flats in the project, has been stuck for a decade. Aggrieved purchasers, who formed Palais Royale Members’ Association, have already paid 20% to 100% for their homes, each measuring between 4,000 sqft and 8,000 sq ft. Some of the larger flats were sold for over Rs 50 crore each. Of the 162 apartments, 77 have been booked since 2009. In 2016, municipal commissioner Ajoy Mehta ordered the developer to seal or rupture four fire refuge floors and large refuge areas outside each flat to avoid misuse. Mehta, in his report prepared following a high court directive, also ordered that refuge areas outside each flat in the 56-storeyed tower be blocked.

 

Developers had won projects in 2 auctions by Solar Corporation of India in 2017

Many of the projects won by developers in the two wind auctions conducted by Solar Corporation of India in 2017 have not been completed yet, according to sources close to the development. The commissioning deadline for the first tranche of projects of 1050 MW was October 2018 and for the second of 1000 MW was May this year. But only 690 MW of the first lot and a mere 200 MW of the second are complete. The winners from the first auction who have managed to set up the entire amount obtained are ReNew Power and Sembcorp, while Mytrah Energy is close to commissioning. Inox Wind and Adani Green Energy had won 250 MW and 50 MW, respectively, but neither has set up a single megawatt so far. Some developers unable to meet their deadlines were given a month’s extension, but they still couldn’t finish their projects. “According to the terms of the power purchase agreement, three months after the commissioning date, the tariff paid to the developers will be lowered by about 15 paise for every month’s delay in commissioning of projects,” said the source. “That’s the stage at which all the developers who have delayed are, as far as SECI’s first lot of projects goes.” These penalties will be decided upon only at the time of commissioning. If delays persist beyond a point, SECI has right to invoke the bank guarantees the developers have given. Inox confirmed that nothing has been commissioned by them so far. A company spokesman said they were delayed because obtaining connectivity from Power Grid Corporation of India has been time consuming.

“We have not been able to commission anything yet since the PGCIL grid took too long to be constructed. It has been delayed by over 17 months. The PGCIL grid was to be readied in January 2018 but after a huge delay it was finally commissioned 10 days ago and we are now in the final stages of hooking up our infrastructure with PGCIL,” he said. Queries to Adani and Mytrah remained unanswered till the time of going to press. Industry insiders say delays in both cases could largely be attributed to obtaining connectivity. Queries to SECI too remained unanswered Sembcorp, Renew, Orange, Inox and Adani were the winners of the second SECI auction winning capacities of 250MW, 250MW, 200MW, 250MW and 50MW, respectively. Out of this, only 200MW has been constructed so far. Almost all projects are expected to be commissioned in Gujarat, hence the delay.

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