Banks told to recast Rs 35,000 crore debt for textile sector


NEW DELHI: The government on Tuesday asked banks to restructure loans worth Rs 35,000 crore for the textile sector, bringing relief to the sector, which is reeling under the impact of volatile yarn prices and slowdown in major markets. Banks have an exposure of Rs 1.56 lakh crore to the sector, which means just under a quarter of the loans will be restructured in one of the biggest loan recast programmes. 

The long-pending demand of the industry will benefit around 2,000 cotton textiles mills, a majority of which are in Tamil Nadu, and the man-made fibre segment in Gujarat, where assembly elections are due later this year. Of the overall package, nearly Rs 27,000 crore is expected to be pocketed by the cotton mills, while Rs 3,600 crore will flow to the man-made segment. Before assembly elections in Uttar Pradesh, the government had announced a package for weavers, which included softer loan terms. 

The latest lifeline to the largest employer in the manufacturing sector comes at a time when industrial growth and exports have slowed and there is an all-round demand to boost economic activity. A healthier financial position of Indian textile companies also augurs well for their export competitiveness. The package, finalized after a meeting between finance minister Pranab Mukherjee and commerce, industry and textiles minister Anand Sharma, will include a two-year interest moratorium and conversion of eroded working capital into longer-term loans with three to five year term. 

Soon, aggressive textile policy for upliftment of cotton industry


SURAT: Chief minister Narendra Modiannounced that the state government is in the process of formulating an aggressive textile policy for the upliftment of the cotton textile industry and taking the ‘made in Gujarat’ brand to the foreign shores. 

Modi said the government is working on five ‘F’- farm, fibre, fabric, fashion and foreign. 

“We are the leading cotton producing state in the country. Now we want to transform the state’s cotton industry as a leader in yarn manufacturing, cloth manufacturing, readymade garment manufacturing and later we will reach out to the world market with our products,” he said. 

“Why there is a need to export our cotton? All the cotton produced will pass from different stages of manufacturing in the state itself and then we will capture the world market. We want the world buyers to flock to Gujarat in search of readymade garments,” he added. 

Interestingly, Modi himself had hit out at the UPA government for banning cotton exports recently. 

Modi’s announcement has not gone down well with the textile entrepreneurs, weavers and industrialists in the city. Reason: Surat is the country’s biggest man-made fibre industry and it is facing a tough competition from the cotton yarn and cotton garments in the domestic as well as international markets. 

“The aggressive policy for textile as announced by the CM is only for the cotton sector. Surat is a man-made fibre hub and there is nothing for us to welcome the announcement,” said a leading textile entrepreneur 

He added, “The formulation of the new textile policy for cotton by the state government would put the city’s man-made fibre hub at risk. Many industrialists, weavers and entrepreneurs may turn to cotton-based textile production instead of using polyester yarn.”

Malegaon to have common fabric processing facility


Powerloom owners in textile cluster of Malegaon in western Indian state of Maharashtra are in the process of setting up their own facility to process fabrics. The new facility would be the first government sponsored Common Facility Centre (CFC) in Nashik district.

Malegaon currently has two privately-owned process centres with a capacity to process a maximum of 250,000 metres of cloth per day, which is very small compared to an estimated production of about 10 million metres of grey cloth every day.

So far, around 70 percent of grey poplin manufactured in Malegaon was sent to process houses in Balotra and Pali in Rajasthan. But, a court order in February this year banned textile process houses in these two towns from discharging waste water and effluents into the Luni river.

The Rajasthan High Court asked the process house owners to install plants for treating waste water before they are again allowed to begin their operations. The court order resulted in closure of several process houses in Balotra. 

To ease the situation for Malegaon powerloom owners, Dr. Baliram Hirey Hi-Tech Textile Cluster Services Pvt Ltd. is setting up the CFC, which will have a fully automatic and hi-tech process house. It will provide pre-weaving and post-weaving industrial assistance to the powerloom weavers.

Mr. Prakash Kankaria, Director of Dr. Baliram Hiray Hi-Tech Textile Cluster Services, told fibre2fashion, “We are installing a CFC sanctioned by the Government of India. In the CFC, we are going to install wet processors for bleaching, mercerization, etc.”

Apprising about current situation in Malegaon, he says, “There are around 200,000 traditional powerlooms in Malegaon which manufacture around 10 million metres of cloth per day, but the town does not have adequate facilities for pre-weaving and post-weaving treatments. There is also a lack of technical support.”

“Currently, we are installing automatic machines for various processes and then we will be installing the process house. This will enable us to produce fabric that is ready for dyeing,” he states.

The CFC is being established with an investment of Rs. 158.4 million. The Central Government is funding 80 percent of the capital and the state government is contributing another 10 percent.

“Our stake in the CFC project is 10 percent. We are 15 member companies and we have around 2 acres of our own land on which we are setting up the CFC,” he informs.

“The project will take at least one year to be completed and become operational. The members will provide their fabric and get it processed on job basis. This will help the powerloom industry to bloom in and around the town,” he opines.

“Currently, very low grade quality cloth is produced in Malegaon. So, the CFC would also act as a catalyst for upgrading the quality of the cloth from 50 GSM to 200 GSM. Companies can also take up manufacturing of denim fabrics, suiting, shirting, etc.,” he avers. 

New code of conduct to make sustainable change in textile


The UN Global Compact launches its first sector-specific initiative, a code of conduct for the entire fashion industry.

The launch will take place at the Danish Fashion Summit, and in the lead-up to this event Novozymes has been collaborating with the Danish Fashion Institute to provide ideas for sustainable textile production. The input will be passed on for use in the UN Global Compact Code of Conduct.

“Fashion is one of the most polluting industries in the world. The fashion industry has a need to show the world that it can change into a more sustainable path, and to do so it’s crucial that we build partnerships and exchange ideas across the industry,” says Eva Kruse, CEO of Danish Fashion Institute.

At the Fashion Summit, a whole catalog of ideas for a more sustainable textile industry will be delivered to the UN by the Danish Fashion Institute.

“We can’t force companies into sustainability, but we can inspire and motivate them through existing solutions and new technologies – and the input we have had from Novozymes has given our input for sustainability in the textile industry a big boost,” Eva Kruse continues.

Sustainable savings
The textile industry has an option to take a sustainable path. 

Every year, 9 million tons of knitwear is produced. Saving between 1 and 1.3 tons of CO2 emissions for each ton of knitwear produced, enzymes can save 0.3 kg of CO2 per T-shirt and 9 million tons of CO2 annually. That is equivalent to removing 4 million cars from the road.

Production of our T-shirts also requires huge amounts of water. Enzymes are naturally efficient processing aids that can accelerate processes and work in synergy to shorten production processes and handle more steps at once. Through this ability, enzymes have been proven to save 70,000 liters of water per ton of knitted fabric produced in a textile mill. That is about 20 liters per T-shirt.

Sustainable input
To provide ideas and input for the UN Global Compact Code of Conduct, Novozymes has focused on several areas. One of these concerns clean technologies that can reduce energy and water consumption as well as reducing waste in the textile industry. Another area of input focuses on textiles produced using environmentally friendly energy sources.

“Our main focus has been to provide input and inspiration for how the textile industry can move away from processes with high water and energy consumption. With biotech a textile mile could save water and energy. The technology exists today, but we need accelerate change,” says Pernille Lind Olsen, Marketing Manager at Novozymes.

“At Novozymes we hope that the UN Global Compact Code of Conduct will help the industry to move toward more sustainable production of textiles,” says Pernille Lind Olsen. “The industry needs to initiate sustainable change itself. The world really needs it, customers will demand it, and politicians will eventually decide on it.”

5 textile processing units dismantled


Erode, Apr18 (PTI): Five textile dyeing and printing units in Periyasemur area on the outskirts of the city have been dismantled by the District Environmental Monitoring Committee for allegedly discharing untreated effluents into water sources and for operating without proper licence. Committee members raided the units yesterday and found them discharging untreated toxic effluent into water sources. They also found none of the five factories had obtained licences or permission of Pollution Control Board. Two units have obtained power supply by producing false records, officials said. The factories were dismantled and the power supply disconnected. Pollution Control Board personnel said they would take action against the factory owners. They said they have dismantled 119 such factories in and around Erode in the last five months for operating without any license.

 

SOURCE: IBN LIVE

Made in Italy textile machinery workshops in India



ACIMIT, the Association of Italian Textile Machinery Manufacturers, is organizing two important workshops in Mumbai and Ichalkaranji (India). Italy’s response to the strong demand for technology by the local textile industry.

India is the world’s second largest market in terms of value for textile machinery imports (amounting to 1.11 billion euros). Italian technology is especially in demand. In fact, 133 million euros worth of Italian textile machinery was sold to India in 2011, a 19% increase compared to the previous year.

“Our companies have been observing developments in India for some time now,” states Sandro Salmoiraghi, President of ACIMIT, “Business opportunities have multiplied, particularly in recent years, owing in part to the incentives set up by the Indian authorities to promote the modernization of local industry.”

To meet this growing demand for Made in Italy textile machinery, ACIMIT is organizing two important events with Indian textile manufacturers. Mumbai and Ichalkaranji will play host to two workshops to be held on May 8 and 10, at which various Italian machinery manufacturers will be presenting their latest technology proposals.

The following Italian machinery manufacturers will be taking part: Canalair, Cs Automazione, Fimat, Flainox, Itema, Jaeggli Meccanotessile, Ptmt, Smit, Testa. The workshops, organized by ACIMIT, are part of the “Machines Italia in India” program financed by the Ministry for Economic Development, which has entrusted the organization to the Federmacchine group (the Federation of Italian Manufacturers of Capital Goods).

“Machines Italia in India” is an initiative aimed at supporting the internationalization activities of businesses in the sector, in an area that is currently experiencing some of the most intense economic development anywhere in the globe.

 
ACIMIT

Pawar writes to PM, criticises curbs on exports


New Delhi: Irked by curbs on milk, cotton and sugar exports, Agriculture Minister Sharad Pawar has shot off a letter to Prime Minister Manmohan Singh stating that the government’s policies are hurting farmers who are being asked to subsidise the industry.

Pawar wrote to the Prime Minister on Tuesday, a day after group of ministers disallowed cotton export beyond 13 million bales for the current marketing year.

He strongly criticised Food Ministry headed by KV Thomas and the Textile Ministry under the charge of Anand Sharma for the policies which are “ambivalent” and go against farmers.

Pawar writes to PM, criticises curbs on exports

Describing restriction on cotton exports as “retrograde”, the NCP chief said: “Indian cotton farmers should not be asked to bear the burden of subsidising the textile mills.

“Compromising the interest of small cotton farmers to benefit the textile magnates is indeed a travesty of justice. Moreover, it defies logic to permit the consumer of cotton (textile industry) to dictate terms to cotton producer…”.

Similarly, he said the “negative approach” of the Food Department in allowing sugar exports has led to heavy losses in export earnings which could have been used to clear cane arrears to farmers that have crossed Rs 8,000 crore.

Pawar told the Prime Minister, “On numerous occasions I have discussed with you the need to have farmer-centric agriculture policy…On each of these occasions; I have found you in consonance with these ideas.

“However, despite this our government has time and again taken decision which goes against the interest of the farming community and adversely impacts its growth and stability”.

High input cost and low realisation from his produce has pushed the farmer into a corner where he fights for his survival, he said, underscoring the need for a free trade regime to ensure remunerative prices to farmers.

Besides Pawar, the cotton exports ban has also been opposed Gujarat Chief Minister Narendra Modi and Congress party’s Maharashtra and Gujarat units.

On sugar exports, Pawar said, “The negativity prevalent in the Department (of Food) regarding sugar exports can best gauged from the fact that though the decision to allow sugar exports of 10 lakh tonnes was taken on March 26, 2012, no orders regarding the same have been issued till date.”

He pointed out that the Food Department is yet to come out with any methodology to expedite sugar exports despite direction of the Empowered Group of Ministers to do away with the quota system of allocating export quantity among mills.

“We must learn from the mistake of 2006-07 and 2007-08, when we spent Rs 1,500 crore on export and buffer subsidy to bail out the sugar industry and provide succor to the sugarcane farmers,” Pawar warned.

In view of higher domestic output, the government has allowed export of 30 lakh tonnes in three equal tranches for this year. The food ministry is yet to notify the export decision for third tranche.

Pawar said that the Centre’s policy towards milk and milk products has been “equally ambivalent” and demanded opening of export of skimmed milk powder and casein.

In the letter, Pawar has highlighted that the country has produced record production of foodgrains, cotton, sugarcane and oilseeds despite rising input costs.

“For the government’s MSP (minimum support price) to cover all the costs is well nigh impossible and it is thus necessary for us to allow a free market and trade regime to ensure remunerative prices to the farmers,” he explained.

Stating that there is relentless pressure on farm sector to produce more, Pawar said, “It is imperative that we do not stymie the growth of our agriculture sector by policies which further worsen the returns to the Indian farmers.”