13 January 2022, Mumbai:

Growth signals an economic rebound

Textile sector has continuously maintained trade surplus with exports manifold higher than imports. In FY 2020-21 there was a deceleration in textile exports due to pandemic disrupting the supply chain and demand.

However, signs of recovery are visible in 2021-22. During April-December, 2021 the total Textiles & Apparel including Handicrafts exports was US$ 29.8 billion as compared to US$ 21.2 billion for the same period last year.

This implies robust growth of approximately 41% over last year. Growth signals an economic rebound.

Even compared to pre-pandemic year i.e. 2019-20 export for textile sector (Textiles & Apparel including Handicrafts) increased by 14.6% from April- December 2021 as compared to April-December 2019.

Textiles exhibited an increase in export of 31%, Cotton Yarn/ Fabrics/ Made-ups, Handloom products etc. exhibited an increase of 43% and Jute products exhibited an increase of 33% from April- December 2021 as compared to April-December, 2019.

Government has set the target of $44 billion for Textiles & Apparel including Handicrafts and approximately 68% of annual target has already been achieved. The last quarter of FY always has higher activity than the earlier quarters. Hence industry is hopeful that targets will be duly met.

PIB (The news article has not been edited by DFU Publications staff)

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11 January 2022, Mumbai:

Both bids are conditional; the firm offers that RP asks bidders to submit unconditional resolution plans.

Race For Bankrupt Co
The marginal difference between offers by Reliance-ACRE and Welspun.

Reliance Industries Ltd (RIL) and Welspun are the leading contenders to acquire bankrupt Sintex Industries, said people with knowledge of the matter. RIL, in partnership with Assets Care & Reconstruction Enterprise (ACRE), has offered a 2,863 crore resolution plan that includes 10% equity to lenders, they said.

Reliance Industries-ACRE and Welspun Group unit Easygo Textile Pvt Ltd are the two highest bidders among the four-firm offers that lenders have received for the textile-cum-yarn making company.

"There is a marginal difference between the offers made by Reliance Industries-ACRE team and Welspun Group," one of the persons said. "Both are highest but conditional. It is difficult to assess which of the two plans is better."

Resolution professional Pinakin Shah has asked the two highest bidders to resubmit revised unconditional resolution plans said the people cited above.

The RIL offer includes payment of 2,280 crores to financial creditors, equity infusion of 500 crores for working capital requirements, and an 83 crores payment to employees and trade creditors, one of the persons said.

RP has admitted 37,534.6 cr claims from 27 financial creditors.

SOURCE: ET dt 11-02-2022

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07 January 2022, Mumbai:

Garment Mantra Lifestyle Ltd has announced the opening of a new centralised integrated facility in Surat, Gujarat, to expand its production capabilities and increase brand awareness in the western area.

Over the next two years, the new building will allow the firm to dramatically expand up its operations and increase income. By the conclusion of the current financial year, Garment Mantra Lifestyle Ltd wants to expand its retail footprint across the country by adding new outlets.

Prem Aggarwal, chairman and managing director of Garment Mantra Lifestyle, said in a statement on the development "The opening of our new warehousing facility in Surat, Gujarat, is something we are very excited about.

Coming up on this new facility, we're focused on expanding our efforts to engage more regional partners with optimised and cost-effective fulfilment options. This new site will increase access to inventory in the region and enhance the services we provide to clients."

"As we see ourselves growing our operating footprints outside Tirupur, Tamil Nadu, we see that we promote and uplift the business experience with all of our business engagement partners and clients," he added.

Garment Mantra is a low-cost fashion shop with a strong presence in the country's tier 2 and 3 marketplaces.

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11 January 2022, Mumbai:

The exhibition of India and Europe made textile mega hi-tech weaving machines and ancillaries commenced at the Surat International Exhibition and Convention centre at Sarsana on January 8.

The three-day Surat International Textile Expo (SITEX) 2022 that concluded on Monday gathered business worth Rs 250 crore, according to the Southern Gujarat Chamber of Commerce and Industry (SGCCI), which organised the event along with the Southern Gujarat Chamber Trader and Industrial Development Council.

07 January 2022, Mumbai:

Secretary, Textile Ministry and all relevant Authorities, the problem of space rocketing Cotton and Cotton yarn price remains unsolved.

Even yesterday, Textile Secretaries group has also warned Cotton segment as well as speculators but immediately after news was flashed about the warning, speculators became active and within a minute MCX shot up by 500 points plus. They have not taken warning in the right way, and speculators have assumed that government action will not be significantly impacting them if any.

Yesterday I come across copy of MCX Cotton Monthly Report of January, 2022. I hereby quote the report of MCX Cotton Month Report of January, 2022 about cotton market.

QUOTE: MCX REPORT

MARKET HIGHLIGHTS

eing up space or purchase additional storage.

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After buoyant 2021, cotton prices to spin down in 2022 The year 2021 has turned out to be one of those rare occurrences for the entire cotton sector, when almost all of the value-chain participants could make extraordinary returns.

The gains ranged from a healthy 44 per cent to an exuberant 105 per cent, giving a reason for cotton growers, ginners, spinning units, garment makers and exporters to bid a cheerful adieu to 2021. According to Vinay Kotak, Director, Kotak Ginning and Pressing Industries, "It can be said that this was one-of-a-kind year in many years that entire value chain has made money".

The factors influencing the price include excessive rains, delay in harvest and late arrivals, while a strong revival in demand from spinning
makers further fuelled the prices during the year.

UNQUOTE

From the above anybody can understand that speculators, dealers, Cotton traders have made mountain of money. MCX report is falsely mentioning that entire textile chain has benefited hugely during the F.Y. 2020-21. This is a wrong statement. Yes, it is true that textile chain upto Spinning segment have enjoyed super-super profit which they have never dreamt even in last 100 years.

From the above statement, it is clear that spinners, cotton traders, cotton ginning factories and perhaps farmers and speculators have minted money at the cost of Fabric, Powerloom, Handloom, Garments, Apparel and Home Textile segment.

They have taken the textile chain starting from fabric onwards to a bumpy ride, this needs to be curbed immediately. Speculators activities need to be curbed immediately by barring cotton trading access officially and unofficially in any form.

It should be curbed immediately by barring commodity trading in MCX. Strict action must be taken against such offending speculators.

 I volunteer to pass on this valuable information so that all representations in future can take note of this thing. Authorities needs to be apprised as above.

I hope this would help to resolve the problem by strict government prohibition of Cotton Trading on MCX and NCEX and action as early as possible.

Contributed by: Dr. Rikhab C. Jain, Chairman-T T Limited

(The news article has not been edited by DFU Publications staff)

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11 January 2022, Mumbai:

The MCX, a key commodities exchange, has stated that pressure groups in the cotton value chain are making "irrational" demands for the suspension of futures trade in the commodity on its platform, despite fundamentals supporting high pricing.

A prohibition on cotton futures would be counterproductive since, for the first time in many years, farmers in India are benefiting from strong prices driven by fundamentals. MCX released a statement expressing astonishment at the efforts of certain pressure groups to have the cotton futures contract on the exchange suspended, stating that India is a net exporter of cotton and that prices are increasing in lockstep with world prices. Cotton is also not on the list of essential goods, thus any interruption in supply might have unfavourable economic consequences.

In an effort to keep prices in check, the government banned future trade in seven agricultural commodities, including wheat, moong dal, and soybean, for one year in December 2021.

"Their claims are without substance and are based on no actual data." The goal of such groups is to make accurate pricing inaccessible to farmers by not enabling markets to work, and to profit from the opacity that would ensue from dysfunctional markets."

MCX expressed his thoughts. It said that pressure groups are 'lobbying for its suspension at the expense of farmers, who had reaped the benefits of increased cotton prices following years of drought.

Those who are unhedged are the ones who are exposed to increased price risk. These participants' dwindling profit margins have prompted them to demand suspension, according to the report. The cotton price gain is supported by fundamentals, according to MCX, since market players forecast lower output than the Cotton Association of India (CAI) estimates for the 2021-22 marketing year (October-September).

Cotton output for the current year is expected to be 360.13 lakh bales, with an opening stock of 75 lakh bales weighing 170 kilogrammes apiece as of November 20, 2021, according to CAI.

However, owing to unseasonal rainfall in main producing areas in October and November, market players predict real cotton output for 2021-22 to be 330-335 lakh bales, according to the report.

The unseasonal rains, according to MCX, have exacerbated quality worries, which is pushing up demand for premium cotton. Farmers are also said to be stockpiling high-quality cotton in expectation of higher prices for their crop. The supply is further harmed by reduced opening stock, which declined drastically to 75 lakh bales in 2021-22 compared to 125 lakh bales in 2020-21, owing to increased export demand due to rising worldwide consumption.

The arrival of the current cotton harvest between October and December 2021 was lower by 37%, according to MCX. However, prices began to fall in November 2021, when mandis arrivals improved.

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A variety of factors have contributed to India's recent trade performance, India has a variety of factors posing cost disadvantages (for example, power costs 30 to 40 percent more in India than it does in Bangladesh).

ET