Textile Sphere News Roundup – 2nd Oct 2024
1. Sircilla Textile Park to
Halt Operations Amidst Financial Struggles
Location: Telangana
Due to ongoing crises and
significant losses in the textile sector, the Sircilla Textile Park Cloth
Manufacturers Association has announced that operations will be halted from
October 6. This decision was made during a general body meeting on Tuesday.
Currently, 70 textile units
in the Baddenapalli area of Sircilla are struggling to cope with high
electricity costs and lack of marketing facilities. Association president
Annaldas Anil Kumar expressed concerns over rising electricity charges, which
stand at Rs 8 per unit, combined with increased raw material prices and
inadequate marketing support. The financial crisis has led to an accumulation
of cloth worth nearly Rs 80 crore in the textile park.
During the BRS rule, a power subsidy of Rs 15 crore was granted from 2015 to 2020, helping the industry stabilize. However, without continued support, the park has decided to cease operations. This decision will affect around 1,000 workers, many of whom are skilled laborers from various states, leading to uncertainty and concern among the workforce.
2. Textile Millers Report
Exports $9 Billion Below Potential
Location: Islamabad
Textile millers in Pakistan
have raised concerns over the industry's underperformance in export markets,
estimating that exports are $9 billion below their potential. A high-level
delegation from the All Pakistan Textile Mills Association (APTMA) met with
Minister of State for Finance and Revenue Ali Pervaiz Malik to discuss industry
challenges.
While the government has made efforts to reduce the cross-subsidy in industrial power tariffs, textile millers argue that the current grid prices of around 15 cents per kWh are still not financially viable, especially compared to 6-9 cents per kWh in regional economies like India, Bangladesh, and Vietnam. Another pressing issue is the anticipated cessation of gas supply to captive power plants (CPPs) by the end of December 2024. This shift could force industries relying on gas-fired power to either switch to the national grid or shut down operations.
Additionally, the withdrawal
of the zero-rating facility for local supplies under the Export Facilitation
Scheme has led to a significant shift towards imported raw materials, adversely
affecting the spinning sector. By June 2024, yarn production had dropped by
41%, while cotton yarn imports surged by 435% year-on-year in August 2024. Over
40% of the spinning units have shut down, causing widespread unemployment.
3. 3,500 FDI Garment-Textile
Projects in Vietnam Worth $37 Billion: VITAS
Vietnam has attracted around
3,500 foreign direct investment (FDI) garment-textile projects with a combined
value of $37 billion, as reported by the Vietnam Textile and Apparel
Association (VITAS). FDI contributes 65% to the garment-textile industry’s
export turnover.
Many large corporations from
China, Japan, India, South Korea, and Taiwan have been investing in building
modern factories in Vietnam. Notably, Singapore’s Sanbang Co Ltd began
constructing a plant for towels, fabrics, and DTY yarn at the Rang Dong Textile
Industry Park in Nam Dinh with a total investment of 673.5 billion VND ($30
million), expected to be operational in Q4 of the next year. Other significant
projects include a $203-million textile dyeing factory by Top Textiles Co Ltd
of Japan’s Toray Group, and a $60-million investment by Hong Kong’s Crystal
International Limited Group to modernize the Yi Da Denim Mill Co Ltd.
4. Khammam Prepares for
Kharif Paddy and Cotton Procurement
Location: Khammam
The district administration
in Khammam is preparing for the procurement of kharif paddy and cotton for the
2024-25 season. District Collector Muzammil Khan has instructed officials to
make necessary arrangements based on the mandal-wise arrival of agricultural
produce to the markets, ensuring a smooth and organized procurement process for
the season.
Note: Textile Sphere brings
you the latest updates from verified sources.
0 Comments