India New Season Arrivals (18.4.2017)cottongurumedia.com/CG NEWSLETTER27.pdf · 2017. 4. 27. ·...

CORE PURPOSE AND MISSION: To assist cotton farmers in improving yield & quality, helping cotton users locate regular sources of quality cotton at nominal prices and to prevent the arbitrary use of paper and plastic objects where cotton can easily be replaced as a ‘renewable resource’ (e.g. cotton handkerchief vs. tissue paper, cotton bags vs. plastic/paper bags), thereby saving the environment.

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Date: 22/04/2017 Quote: “Judge people by their strength and not by their weakness.”

- Shri Suresh Kotak (Chairman, Kotak Group of Companies)

India New Season Arrivals (18.4.2017):

State wise

Arrivals

Just Agri

(Lakh Bales)

CCI

(Lakh Bales)

2016-17

As on

18.04.17

2015-16

As on

18.04.16

2016-17

As on

18.04.17

Punjab 7.70 7.36 8.73

Haryana 17.50 11.99 15.89

Rajasthan 16.60 14.69 15.09

Gujarat 67.40 69.13 69.59

Maharashtra 80.50 63.21 79.10

M. P. 18.10 16.02 19.03

A.P. 39.70 20.96 16.59

Telegana 15.40 55.96 41.67

Karnataka 13.50 16.52 13.55

Orissa 2.90 2.85 2.79

Other 2.70 3.55 4.29

Total 282.00 282.24 286.34

Since mid-March, cotton arrivals in 2016-17 have overtaken arrivals in 2015-16. As

per CCI… for more, subscribe to COTTONGURUTM Fortnightly Newsletter

Weather Report:

- Courtsey Paradigm

Monsoon prediction by IMD states… for more, subscribe to COTTONGURUTM

Fortnightly Newsletter

-

Domestic Market Summary:

Gujarat S6 price chart 15thMar to 19thApr 2017

Prices of Indian Shankar-6 variety moved in a narrow range of … for more, subscribe

to COTTONGURUTM Fortnightly Newsletter

Exporters are not very active in the market as… for more, subscribe to

COTTONGURUTM Fortnightly Newsletter.

Chart of India cotton balance sheet for 2016-17(USDA)… for more, subscribe to

COTTONGURUTM Fortnightly Newsletter

Cotton Yarn:

The increase in domestic market in yarns has been more than in exports. The

January rally has been more due to the domestic pipeline being empty as most

customers did not buy in Nov-Dec due to the demonetisation. So when demand

started and price started moving upwards suddenly… for more, subscribe to


Yarn Bank:

Textile Ministry has increased the corpus fund for India's first yarn banks in Surat,

Gujarat from INR 10 million to INR 20 million.The two yarn banks: Ved Road Art Silk

Small Scale Co-operative Federation and Pandesara Weavers Co-operative Society

were able to cater to only 100 weavers. Now around 200 weavers will be able to get

assistance.Bank guarantee to procure yarn has also been reduced from 50 to 25 %.

Focus Sector: Spinning:

INDIAN Production v/s Mill-Use (In Lakh Bales)

It is obvious from the above chart that… for more, subscribe to COTTONGURUTM


COTTONGURU ™ strongly feels that the Government and Textile industry must

ensure that cotton production does not decrease substantially otherwise the

Indian Spinning sector will have a major setback. Also there needs to be a

conscious and focussed effort to improve the quality of Indian cotton.

With 47 million Spindles and 0.75 million Open-End Rotors, India has the world’s

second largest spinning capacity, commanding a share of… for more, subscribe to


ICRA report: Spinners' profitability may remain under pressure… for more,

subscribe to COTTONGURUTM Fortnightly Newsletter

International Market Summary: As per USDA, the world cotton production rose from 105.72 million bales to 106.30

million bales up by 1% from the previous month while the consumption is pegged

marginally higher from the last month and stood at 112.59 million bales. In the

meanwhile, world ending stocks have increased slightly to 90. 91 million bales

basically because of higher Chinese stocks.

Chart of World cotton balance sheet (USDA)… for more, subscribe to


China: Chinese cotton imports will remain suppressed next season, as the government

continues to reduce cotton stocks, while production recovers. This drawdown in

stocks will keep pressure on imports. The USDA reports estimates from industry

sources that… for more, subscribe to COTTONGURUTM Fortnightly Newsletter

Chart of China cotton balance sheet (USDA)… for more, subscribe to


Reserve stocks

Chinese auctionsales may well bring down reserve stocks from… for more,

subscribe to COTTONGURUTM Fortnightly Newsletter.

Cotton imports

Imports were forecast at… for more, subscribe to COTTONGURUTM Fortnightly

Newsletter

Cotton production

China's 2017-18 cotton production is forecast to recover moderately, to 5.15 million

tons, up 100,000 tons year-on-year, thanks to rising plantings, seen up 100,000

hectares to 3.1million hectares.

Chart of Worls less China cotton balance sheet (USDA)… for more, subscribe to


China Lowers VAT for Cotton

State Council announced on April 19 to introduce further tax cut for real economy…

for more, subscribe to COTTONGURUTM Fortnightly Newsletter

US: The USDA pegged the US April cotton exports at 14 million bales, higher by 800,000

bales from the previous month's figure. The export is forecasted to be higher amid

recent… for more, subscribe to COTTONGURUTM Fortnightly Newsletter

Chart of USA cotton balance sheet (USDA)… for more, subscribe to COTTONGURUTM


Bangladesh: Bangladesh's foreign exchange reserves hit a record $32.56 billion at the end of

February, up nearly $840 million on the previous month. The reserves are sufficient

to cover… for more, subscribe to COTTONGURUTM Fortnightly Newsletter

Pakistan: In order to fulfil the domestic requirements as well as exports, the Pak Govt. has

decided to cultivate cotton crop over 3.118 million hectares of land during the

current sowing season. The cotton crop production targets for 2017-18 were fixed

at… for more, subscribe to COTTONGURUTM Fortnightly Newsletter

Chart of Pakistan cotton balance sheet (USDA)… for more, subscribe to


Data of Pak as on 01.04.2017 (in lakh bales)

Year Arrival Consumption Export Stock

2016-17 10,725,737 10,168,824 202,356 354,557

2015-16 9,762,144 NA NA 489,001

Turkey: The Turkish textile industry continues to be the one of the leading sectors in the

Turkish economy… for more, subscribe to COTTONGURUTM Fortnightly Newsletter

Australia: Australian cotton production is now forecast at the second highest level on record,

representing a huge increase from the crop of just 2.3 million bales seen in 2014-15

crop year.

The USDA has forecast 2017-18 cotton production at… for more, subscribe to


Upcoming Conferences: COTTONGURUTM Media is the official Media Partner for the Conference.

Gandhinagar:

Textiles India 2017: India's 1st global B2B event: The biggest textile event in the history

of India will be held in Gujarat from June

30-July 2, 2017.It will be inaugurated by

Prime Minister Narendra Modi.

The Union textiles minister Mrs Smriti

Irani said, "The spectrum of Indian

textiles is extremely diverse and its

history is world-renowned. Textiles

India 2017 holds the promise of

becoming a landmark annual trade

event for the Indian textiles and apparel

industry at the global level.

TEXATHON 2017 The world’s first and only run organised by the textile

community. Designed to celebrate the industry that

clothes the world and makes life colourful and joyous

with ever evolving and dynamic fashion. Merging the

environments of TEXtiles and marATHON, an event

hosted and promoted by Sasmira Alumni Foundation,

ex-students of the leading textile technology institute

SASMIRA, Mumbai. A perfect run in the monsoon

season when heavy rain is cooling you off.

Register Now!

www.texathon.com

Something Different:

COTTONGURUTM CSR Management Services:

Pursuant to the Green Initiative in Corporate Governance issued by the Ministry of

Corporate Affairs, we invite you to utilise your CSR obligation such that it

serves the Society,

protects the environment,

enhances your Social/equity image and

Strengthens your Supply value chain. Call: +91 22 25679871 / 72

Mail: [email protected].

Did You Know?

For daily updated cotton news and Buy/Sell offers, download the COTTONGURU APP

from your Android Mobile Play store:

https://play.google.com/store/apps/details?id=com.websqour.cottonguru

COTTONGURUTM APP:

Coming Soon

Coming Soon

Workshop on Sustainability of Cotton Supply Chain:

A concrete step towards “Make In India”

How to make profit in Raw Cotton Ginning

A very significant ginner workshop was

arranged by M/s Laxmi Cotspin Ltd.,

Jalna, (Maharashtra, India) with

COTTONGURUTM on 27th October,

2016 on the above topic. The main

objective of this workshop was to

strengthen the supply chain of ginners

and spinners.

A majority of ginners and spinnersare

disconnected with their supply chain.

COTTONGURUTM has full faith that such

concrete effort by genuine Spinning

Mills will pave the path for more such

workshops to strengthen the supply

chain and realize our Hon. Prime

Minister Mr. Narendra Modi’s dream of

“Make in India”.

Expert Views:

O. A. Cleveland: New crop prices, as discussed the past months, continue to be…

for more, subscribe to COTTONGURUTM Fortnightly Newsletter

Mr. I.J.Dhuria (Vardhman Mill,India) : This year India is expected to import

about … for more, subscribe to COTTONGURUTM Fortnightly Newsletter

Mr Louis Rose (Rose Commodities) : The data released continued to illuminate the

tightness of… for more, subscribe to COTTONGURUTM Fortnightly Newsletter

Reports: World Agricultural Supply and Demand Estimates

(WASDE): The 2016/17 U.S. cotton supply and demand forecasts show higher exports and

lower ending stocks relative to last month. Production and domestic mill use are

unchanged. The export forecast is raised 800,000 bales to… for more, subscribe to


ICAC: 1. The ICAC’s first forecasts for the season-average Cotlook A Index in 2017-18 will

be 73 cents/lb, 5 cents lower than the 78 cents/lb expected for 2016-17, on an

August-to-July basis.

2. World cotton production in 2017-18 is projected to rise will rise by 1% to 23.1

million tons, as high prices in 2016-17 encourage farmers to plant cotton.

3. PRODUCTION ESTIMATES (2017-18) in major countries:… for more, subscribe to


4. CONSUMPTION ESTIMATES in major countries… for more, subscribe to


5. IMPORTS (2016-17) in major countries… for more, subscribe to COTTONGURUTM


WORLD COTTON SUPPLY AND DISTRIBUTION

2015/16 2016/17 2017/18 2015/16 2016/17 2017/18

Million Tons Changes from previous month

Million Tons

Production 21.04 22.78 23.12 0.01 0.09 0.02

Consumption 24.13 24.10 24.42 0.01 0.05 0.09

Imports 7.54 7.85 8.06 0.00 0.00 0.01

Exports 7.55 7.85 8.06 0.06 0.00 0.01

Ending Stocks 19.17 17.85 16.55 -0.07 -0.03 -0.11

Cotlook A

Index 70 78* 73**

* The price projection for 2016/17 is based on the ending stocks/consumption ratio in the world-less-

China in 2014/15 (estimate), 2015/16 (estimate) and in 2016/17 (projection); on the ratio of Chinese net

imports to world imports in 2015/16 (estimate) and 2016/17 (projection). The price projection is the mid-

point of the 95% confidence interval: 73 cts/lb to 83 cts/lb.

** The price projection for 2016/17 is based on the ending stocks to mill use ratio in the world-less-

China in 2015/16 (estimate), 2016/17 (projection) and 2017/18 (projection); on the ratio of Chinese net

imports to world imports in 2016/17 (projection) and 2017/18 (projection); and on the price projection of

2016/17. The price projection is the mid-point of the 95% confidence interval: 55 cts/lb to 84 cts/lb.

Chart of World cotton supply and distribution in Million tons and bales… for

more, subscribe to COTTONGURUTM Fortnightly Newsletter

CAI:

COTTON ASSOCIATION OF INDIA

INDIAN COTTON CROP ESTIMATE FOR THE SEASON 2015-16 AND

2016-17 Estimated as on 31st March 2017

State

Crop

2016-17 2015-16

Total Total

Pressed (in

lakh b/s of

170 kgs

each)

Loose (in

lakh b/s

of 170

kgs each)

(in lakh

b/s of

170 kgs

each)

(in’00

0

Tons)

Pressed

(in lakh

b/s of 170

kgs each)

Loose (in

lakh b/s

of 170

kgs each)

(in lakh

b/s of 170

kgs each)

Punjab 7 2.5 9.5 161.5 5 2.5 7.5

Haryana 17.5 3 20.5 348.5 14 3 17

Upper

Rajasthan 6.7 0.55 7.25 123.25 4.95 0.55 5.5

Lower

Rajasthan 9.7 0.55 10.25 174.25 9.95 0.55 10.5

Total North

Zone 40.9 6.6 47.5 807.5 33.9 6.6 40.5

Gujarat 87.8 3.2 91 1547 84.8 3.2 88

Maharashtra 80.25 5.75 86 1462 72.25 5.75 78

Madhya

Pradesh 20.3 0.7 21 357 18.05 0.7 18.75

Total Central

Zone 188.35 9.65 198 3366 175.1 9.65 184.75

Telangana 47.4 0.6 48 816 57.4 0.6 58

Andhra

Pradesh 12.1 5.9 18 306 18.1 5.9 24

Karnataka 16.4 1.1 17.5 297.5 17.4 1.1 18.5

Tamil Nadu 3.3 2.2 5.5 93.5 4.8 2.2 7

Total South

Zone 79.2 9.8 89 1513 97.7 9.8 107.5

Orissa 3.95 0.05 4 68 2.95 0.05 3

Others 2 - 2 34 2 - 2

Grand Total 314.4 26.1 340.5 5788.5 311.65 26.1 337.75

Monthly Report from the Office of the Textile

Commissioner of India Ms (Dr.) Kavita Gupta, IAS: (Exclusively for COTTONGURUTM Fortnightly Newsletter)

Comprehensive Scheme for Powerloom Sector Development A Comprehensive Scheme for powerloom sector

development, PowerTex was launched on

01.04.2017 by Smt.Smriti Irani, Hon’ble Union

Minister of Textiles.

In Bhiwandi, Maharashtra, the main function was

held in the august presence of Shri. Devendra

Fadnavis, Hon’ble Chief Minister of Maharashtra,

while similar launch of PowerTex India was held

in Surat by Shri. Ajay Tamta, Hon’ble Union

Minister of State for Textiles.

The launch event was organised simultaneously

in 47 Powerloom Service Centres across the country and in all the centres

respective MLAs and MPs were invited.

The PowerTex scheme has the following benefits for the powerloom weavers.

(i) Subsidy for In situ upgradation of plain powerlooms to semi automatic

looms/attachment of jacquard has been raised by 30% which would

enable more weavers to take advantage of the scheme. The enhanced

subsidy level will encourage the powerloom weavers for product

diversification by attachment of dobby/jacquard. This will also increase

the income of powerloom weavers.

(ii) The Pradhan Mantri MUDRA loan will enable credit availability at 4% to 5%

rate of interest since 6% interest subvention is available in this scheme for

looms both meant for modernisation and working capital. The credit

availability at such lower rate of interest will enable the powerloom

weavers to modernise the looms and increase the production. Income

level for the weavers by this scheme is likely to double due to increase in

production and productivity level by modernisation/upgradation of

powerlooms.

(iii) The level of subsidy for construction of Group has been increased from

Rs.300 to Rs.400 per sq feet of the Group Workshed taking into account of

the escalation in the cost of construction. There has been demand from the

powerloom weavers to reduce the minimum number of shuttleless looms

from 48 to 24 and the same has been modified under the scheme. Further,

the component of dormitory for workers has also been allowed for the first

time. This would result in increased off take of the scheme by the

powerloom weavers and would increase export potential of these

powerloom units.

(iv) The corpus fund for the Yarn Bank has been increased from Rs.1.00 crore

to Rs. 2.00 crore since it would enable the powerloom weavers to

withstand fluctuation in yarn prices. Further, the stipulation of furnishing

the Bank Guarantee has been reduced from 50% of Government of India

share to 25% which would enable more number of powerloom weavers to

avail the scheme.

(v) The components of construction of dormitory, workers residential space,

twisting and processing activity have been included in the scheme of

Common Facility Centre thereby the demands of the powerloom sector

has been addressed. Further, the present scheme allows for more than one

CFC per cluster based on the felt needs of the clusters. This would enable

setting up of more CFCs in a cluster and service the powerloom weavers in

the cluster.

(vi) One of the major cost for the powerloom sector has been the cost of

energy. The cost of energy has been increasing over the years. But by the

Solar Energy Scheme for powerloom weavers, the cost of energy would be

at an affordable rate especially due to 50% subsidy of Government of India

provided for the Solar panel. The life of solar panel is more than 25 years

and the solar energy power is also supplied by batteries will ensure power

is available at all times without any interruption. This will be a major

benefit to the powerloom sector since in a number of cases the

powerloom sector get disrupted power and frequent interruption in

power.

(vii) For the first time separate components have been made for Helpline and

Help Centre under head of the facilitation of powerloom weavers. This

would create awareness about various schemes and help them to avail the

benefits of the schemes. Further, the market development initiatives would

help the powerloom weavers to expand their market both domestic and

international.

A Toll free Help Line of the Office of the Textile Commissioner 1800 22 2017 was

launched by the Chief Minister while a booklet containing details of various

components was released by Smt. Smriti Irani, Hon’ble Union Minister of Textiles on

the said occasion.

COTTONGURUTM Comments: Team COTTONGURUTM is planning a half day conference on some of the burning

topics of India like

How to double the income of farmers in India?

Tackling and overcoming the problem of adulteration and contamination in

cotton.

Importance of foreign trade agreements and implication of GST on Indian

Textile industry.

Many industry veterans and thought leaders have agreed to attend and support this

conference.

Views and comments from industry stake holders are most welcome.

[email protected]

www.cottonguru.org

Technical Reports:

1) ICE Cotton: Chart and analysis… for more, subscribe to COTTONGURUTM Fortnightly Newsletter

2) MCX Cotton: Chart and analysis… for more, subscribe to


Top Interviews: Exclusive Interview with Dr. Kavita Gupta, +IAS, Textile

Commissioner of India.

https://www.youtube.com/watch?v=rz6BS_g9Msk

Exclusive Interview with Mr. Jose Sette, Exe Direc, ICAC

https://www.youtube.com/watch?v=Y8h_yvxvaDE

Exclusive interview with thought leader Mr. Suresh Kotak,

Chairman of Kotak& Co.

https://www.youtube.com/watch?v=GBJL-gfzLRc

COTTONGURU™ Fortnightly Newsletter is a cotton market analysis newsletter with a global outlook

committed to authenticated and sustainable content. It revolves around cotton and textile industry as a

concept in terms of trade, research and knowledge. The newsletter is circulated to over 10,000 Textile

companies, Textile & Research Associations, professionals, Government Offices worldwide.

About the author: Mr. Manish Daga popularly referred by the cotton industry as COTTON

GURU™ is a qualified textile technologist.

He is India’s only Cotton Valuer registered by the Indian Institution of Valuers, India. He is the

fourth generation in cotton trade, advisory and broking services from his family. The P. R. D.

Cottons Group is 113 year old in cotton business uninterrupted.

Call or mail for any information, suggestion, feedback or to know how your Company can

benefit from the knowledge and experience of COTTON GURU™.

Call on +91 9820072705 or mail to [email protected]

Disclaimer: For private circulation to the addressees only and not for re-circulation. Any form of

reproduction, dissemination, copying, disclosure, modification, distribution and/or publication

of this Newsletter is strictly prohibited. The contents of this Newsletter aresolely meant to

inform and is not a substitute for professional advice.

FIRST AND ONLY REGISTERED“COTTON VALUER” IN INDIA

MEMBERSHIP

1. FIEO (Federation of Import & Export Organization)

2. CAI (Cotton Association of India) 3. ISCI (Indian Society for Cotton improvement)

4. IFS ( Indian Fibre Society) 5. TAI (Textile Association of India)

COTTONGURU™

Mr. Manish Daga

India New Season Arrivals (18.4.2017)cottongurumedia.com/CG NEWSLETTER27.pdf · 2017. 4. 27. ·...

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