India exported 101.8 million kg of spun yarns worth US$283 million or INR1,881 crore in June 2016 at an average realisation of US$2.78 per kg. This was significantly lower compared to same month a year ago. Export volume was down 12% YoY and value declined 17% in US$ terms. The drop also reflects the lean season for global textile industry in this part of the year.
The prices of cotton yarn 10 count single yarn have increased by around 25 percent to reach Rs11500 per bag of 100 pounds from Rs9950 during the last one-and-a-half months and same is the case with other varieties of yarn, including 16 count 30 yarn and 16 count 20 yarn due to cartelization of local manufacturers who are taking advantage of 10 percent additional regulatory duty on the import of yarn.
The textile sector has been facing chronic energy shortages and stuck-up exports refunds due to which textile and clothing exports plunged from $9.166bn to $8.363 billion in the first eight months (July-February) of 2015-16 in the same period last year, a drop by 8.76 percent, according to Pakistan Bureau of Statistics data.
The decline in exports, from July 2014, was despite the preferential market access to the European Union as government failed to capitalize on the opportunity of Generalized System of Preferences Plus (GSP+) status.
Holi festival kept trading activity on the cotton market on Thursday came under pressure as many participants busy in Holi celebrations. Dealers said the trade activity may revive after Holi festival.
In the ready business, around 4,000 bales of cotton changed hands between Rs 4300-5500, while, in Sindh, seed cotton prices were at Rs 2000-2200, and in Punjab prices at Rs 2500 and Rs 2900.
The official spot rate was unchanged at Rs 5,250, dealers said.
Coimbatore textile industry has sought three percent export incentive, which is now available to other textile products, for cotton yarn too. If three percent export incentive is available for cotton yarn, textile mills will be able to tap new markets.
The Pakistani textile exports showed around 9 percent decline during July-December 2015 as compared to same period of previous year. Textile exports continue to decline except a minor improvement in some of the small segments, sources revealed.
Raw cotton exports were 72 million during July December 2015, as compared to 114 million in previous year, a decline of 37 percent and cotton yarn declined 30 percent as its exports in second half of 2015 dropped to 698 million from 992 million in 2014.
Pakistan exported about 87,413 metric tons of towel worth US$396.196 million during first half of current financial year from July-December, 2015 registering an increase of 4.56 percent as compared to towel export of 81,112 metric tons, worth US$ 380.823 million exported during the corresponding period of last financial year, said figures of Pakistan Bureau of Statistics.
The Sui Northern Gas Pipelines Company Ltd (SNGPL) following the directions on Thursday from Federal Minister for Finance Ishaq Dar restores gas supply for four hours a day basis to Punjab based textile industry, said industry sources. The SNGPL would supply 60 MMCFD LNG at the cost of $9 per MMBTU against the industry demand from both spinners and weavers asking for LNG supply at the rate of $8.5 per MMBTU.
Vietnam's fast-growing market has attracted a large number of Taiwanese companies with investment plans. In fact Taiwanese companies are among the first foreign investors in Vietnam with plan to invest in a textile production chain to benefit from the upcoming, Trans Pacific Partnership (TPP) said John Tang, director of the Taiwan Trade Centre (TAITRA) office in HCM City at a recent press conference.
Pakistan government likely to consider reduction in regulatory duty on the import of cotton yarn to benefit the garment sector as the cotton yarn, fabric commercial and value addition sector exporters are now facing 10% regulatory duty on imports from November 1, 2015, a source in the Ministry of Finance has hinted.
The performance of value addition by woven garments sector is 846%, hosiery/knit garments 616% and spinning sector is 59%.
