The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 07 APRIL, 2018

NATIONAL

INTERNATIONAL

Major Ports in India register positive growth of 4.77 per cent during 2017-18

 The major ports in India have recorded a growth of 4.77 per cent and together handled 679.35 Million Tonnes of cargo during the period April 2017 to March 2018 as against 648.39 Million Tonnes handled during the corresponding period of previous year. Nine Ports - Kolkata (including Haldia), Visakhapatnam, Paradip, Kamarajar, Chennai, Cochin, New Mangalore, JNPT and Deendayal also registered positive growth in traffic.

Cargo traffic handled at Major Ports:

Cochin Port registered the highest growth of 16.52 per cent, followed by Paradip 14.68 per cent, Kolkata (incl. Haldia)  13.61 per cent, JNPT 6.2 per cent and New Mangalore 5.28 per cent.

•           The growth at Cochin Port was mainly due to increase in traffic of Fin. Fertilizer (105.88 per cent), POL (20.62 per cent) and Containers (12.46 per cent).

•           In Kolkata Port, overall growth was 13.61 per cent. Kolkata Dock System (KDS) registered traffic growth of 3.45 per cent. Whereas Haldia Dock Complex (HDC) registered positive growth of 18.61 per cent which is highest among all the Major Ports.

•           Deendayal (Kandla) Port handled the highest volume of traffic 110.10 Million tonnes (16.21 per cent share), followed by Paradip with 102.01 Million Tonnes (15.02 per cent share), JNPT with 66.00 Million Tonnes (9.72 per cent share), Visakhapatnam with 63.54 Million Tonnes (9.35 per cent share) and Mumbai with 62.83 Million Tonnes (9.25 per cent share). Together, these five ports handled around 60 per cent of Major Port Traffic.

•           Commodity-wise percentage share of POL was maximum at 31.55 per cent, followed by Container 19.67 per cent, Thermal & Steam Coal 14.02 per cent, other Misc. Cargo 13.62 per cent, Coking & Other Coal 7.45 per cent, Iron Ore & Pellets 7.15 per cent, Other Liquid 4.33 per cent, Finished Fertilizer 1.11 per cent and FRM 1.11 per cent.

 Source: PIB

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Ministry of textiles rolls out HRD Scheme to upgrade skills of artisans

New Delhi :  To upgrade the skills of the artisans and to provide qualified and trained workforce to the handicraft sector, the Office of Development Commissioner (Handicrafts) has formulated Human Resource Development Scheme under the Ministry of Textiles. Minister of State OF Textiles, Ajay Tamta informed the house that Indian handicrafts products have an edge over other countries crafts products like China as they are mechanized ones and thus India is well equipped and skilled to face global competition. He said that 141 such programs were implemented by National Center for Design and Product Development (NCDPD) benefiting more than 2800 artisans during 2017-18. Further he informed that Export Promotion Council for Handicrafts (EPCH) has also executed skill development programs for artisans sanctioned under Comprehensive Handicrafts Cluster Development (CHCDS) Scheme of Development Commissioner (Handicrafts) for Narsapur and Jodhpur mega clusters. Highlighting on the numbers, Tamta said that about 5000 artisans have been trained under Narsapur Mega Cluster in crafts of crochet and lace and 1360 artisans in the crafts of wood work, hand appliqué, hand embroidery, bone and horn, hand woven durries and hand block printing under Jodhpur Mega Cluster till date. He further added that during 2017-18, 149 Technical Training Programs were sanctioned benefiting 2980 artisans, 172 Soft Skill Training Programs benefitting 3440 artisans. Apart from these training programs, 510 artisans were imparted training through Guru Shisya Prampara Training Scheme and 400 artisans through Established Institution during 2017-18, he added. (With PIB inputs)

Source: Knn India

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Inter-state e-way bill made mandatory in India from Apr 1

An electronic or e-way bill has been made mandatory for Indian transporters and businesses moving goods worth over Rs 50,000 from one state to another starting April 1. The anti-evasion provision of the goods and services tax (GST), aimed at boosting tax collections by clamping down on cash-based trade, was introduced on February 1, but put on hold after glitches. The GST Council decided on a staggered rollout of the e-way bill beginning with inter-state from April 1 and intra-state from April 15, according to a news agency report. To ensure a foolproof system, the GST Network has activated only that facility on its portal where e-way bill can be generated when goods are transported from one state to another by either road, railways, airways or vessels. The platform, developed by National Informatics Centre (NIC), has been made robust and 75 lakh inter-state e-way bills can be generated daily.

Source: Fibre2Fashion

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China’s Apparel and Textile Imports Jump 22.2% in February Amid Tariff Threats

Trade war or not, U.S. apparel and textile imports from China surged 22.2% in February to 2.54 billion square meters equivalent (SME) compared to a year earlier, according to the Commerce Department’s Office of Textiles & Apparel. The news comes as the U.S. and China have been volleying huge tariff threats at each other–and in the case of the U.S., against other countries and trading blocs, too–on a range of products. Overall, industry imports increased 12.4% in February to 5.29 billion SME, with textile shipments rising 15 percent to 3 billion SME year over year, and apparel imports up 9.2% to 2.28 billion SME. For the year to February, apparel and textile imports rose 7.1% to 10.9 billion SME, with apparel up 4.4% to 4.7 billion SME and textiles ahead 9.3% to 6.2 billion SME. The overall U.S. trade deficit in goods and services increased 1.6% to $57.6 billion in February. February exports rose by $3.5 billion to $204.4 billion but were outpaced by a $4.4 billion gain in imports for the month, to $262. The U.S. trade deficit with China stood at $34.7 billion as of February. With China still by far the top supplier of apparel and textiles to the U.S., all top 10 countries posted increases in imports except India, the second largest supplier for the category, which saw its shipments fall 0.8% to 404.7 million SME. Cambodia, the ninth largest supplier, posted a gain of 22.4% to 96.9 million SME, and the eighth largest supplier, South Korea—with which the U.S. just renegotiated a free trade agreement—saw imports increase 17.5% to 135.4 million SME. Among other top Asian suppliers, Vietnam’s imports rose 5.7% to 399.7 SME, Bangladesh’s shipments were up 5.1% to 215 million SME, Pakistan’s increased 4.1% to 199.5 million SME and Indonesia’s gained 1.7% to 141.8 million SME. Rounding out the top 10 suppliers were North American neighbors Mexico and Canada, with which the U.S. is said to be closing in on a renegotiation of the North American Free Trade Agreement. Mexico’s imports increased 4.7% in the February to 203.4 million SME, while Canada’s shipments rose 4.6% to 86.1 million SME.

Source: Sourcing Journal Online

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China trade dispute could slam U.S. retailers

NEW YORK  - The Trump administration’s trade dispute with Beijing could slam U.S. retailers if tariffs are implemented and lead to higher prices or a shortage of merchandise. President Donald Trump late on Thursday said he was considering penalties on $100 billion in Chinese goods, without specifying which goods he would target. That would be in addition to the proposed tariffs on $50 billion of imports from China that Washington unveiled last week. Trump’s first round of $50 billion in tariffs mostly targeted industrial goods and electronic components. The threatened U.S. tariffs could be little more than a negotiating tactic aimed at forcing China to address its intellectual property policies. But some retailers and apparel companies are sounding the alarm bells. The two biggest categories of U.S. imports from China last year were communications and computer equipment, totaling $137 billion according to U.S. Census data. Cellphones and computers, key portions of these categories, were spared from the initial tariffs list. Apparel and footwear, both labor-intensive industries in China, made up a combined $39 billion in U.S. imports. “It’s this rhetoric around another $100 billion in tariffs that concerns us because certainly within that next pool of categories it would be hard to exclude apparel and footwear,” said Robert D’Loren, chief executive of Xcel Brands Inc, a clothing supplier to Macy’s Inc, Hudson’s Bay Co and others. “If tariffs were to be introduced on apparel, the very next day I will be on a plane to China and I will be working with my factories, trim suppliers, mills to have each of us assess how much tighter we can work to deal with this,” he said. Jonathan Gold, the National Retail Federation’s vice president for supply chain and customs policy, also expressed concern over what the new set of tariffs might entail. “Our concern is that the new set of tariffs will turn to more consumer products not on the list and will now include things like apparel, home goods, shoes, all of those basic retail goods coming in from China,” Gold said. “As companies make their buying decisions especially for the holiday season, which they do six, nine to 12 months in advance they are trying to figure out how they will do this going forward.” Should a trade war ensue, retailers with vast global supply chains may suffer less than others. Costco Wholesale Corp, Walmart Inc, Home Depot Inc and Lowe’s Companies Inc, for example, have the ability to acquire products in multiple markets and could move to tap alternative markets such as Vietnam, Bangladesh or Colombia for merchandise. “Many retailers will do just fine, but you have to have other markets where your products can go,” said Brandon Fletcher, an analyst at broker-dealer Sanford C. Bernstein. “Let’s say you pre-committed six months ago to buying a whole bunch of TVs from China. Now, the tariffs might force that to be a 25 percent higher price. And so you say, ‘OK, I don’t want to sell these in the U.S. because I have to pay the tariff.’ Well, is there a tariff for China on selling televisions to Mexico? Nope.” Walmart has reduced its supply chain exposure to China “quite a bit” over the years as lower cost goods became available out of Vietnam, while Costco has sourcing offices in a number of core markets beyond China, Fletcher noted. In contrast, Best Buy Co Inc depends heavily on China to source smaller TV sets and other low-priced merchandise, and there are no easy alternative supply countries, he said. Best Buy declined to comment on how the tariffs might impact the company’s supply chain. At Dollar General Corp, a substantial amount of imported merchandise comes from China, according to a company filing dated March 23. A spokesman for Dollar General declined comment. At Target Corp, China is its single largest source of merchandise. It said in its annual report, the imposition of additional tariffs or duties on imported products could adversely affect its business. “Like all companies, we are monitoring the situation very closely,” a Target spokeswoman said. As the cost to make goods in China has gone up over the past decade, many retail and apparel companies have moved some production to Vietnam, Bangladesh and Indonesia. For instance, Gap Inc purchased 28 percent of its apparel in China in fiscal 2013, according to Christopher Svezia, a senior vice president of research at investment services company Wedbush. By fiscal 2017, the apparel chain bought 22 percent of its merchandise in China and 25 percent in Vietnam, he said. “There’s definitely been some movement out of China across the board,” Svezia said. “You can’t just say let’s go to Pakistan or North Africa. It’s not so easy,” said Xcel Brands’ D’Loren. “It will take years to build out the supply chain. Even if you have the capital you won’t be able to find the factories,” he said. “Production lines are booked months or years in advance.” Reporting by Nandita Bose and Melissa Fares in New York; Additional reporting by Lisa Baertlein in Los Angeles and Aishwarya Venugopal in Bengaluru; Editing by Tom Brown and Chris Reese

Source: Reuters            

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Aptma submits budgetary proposals for revival of textile industry

LAHORE - Export driven growth is imperative for creating jobs, reducing current account deficit and attracting local and foreign direct investment. This was stated in budgetary proposals sent to the federal policy-makers for incorporation in the budget 2018-19 by the All Pakistan Textile Mills Association. The proposals added that the government needs to embark on three-pronged strategy that includes availability of electricity and gas, tariff rationalisation of the textile value-chain and encouragement of new investment to create exportable surplus. The textile industry stakeholders further said that availability of energy at affordable cost could be a stepping stone for reducing the cost of doing business. Currently, electricity cost at Rs.11.40/kWh is unrealistically high and is inflated due to elements of cross subsidy and theft in the system. Removal of these loading factors will make electricity available at Rs7/Kwh. This reduction obviously will incur no loss to the government rather will streamline generation and distribution of electricity. Punjab, which is the principal hub of the textile industry, is getting gas at Rs.1300/MMBtu, whereas, for the rest of the country, the same is available at Rs.600/MMBtu. It will be in the fitness of things, if it is made available at the same rate in whole of the country. It is quite surprising that FBR is collecting taxes on raw materials used in the manufacturing of manmade yarn and making yarn price unviable. The government may take other measures to provide protection to local manufacturers of raw material rather than taxing raw material, which is contrary to the scheme of Custom tariff. APTMA considers it necessary to provide incentives to farmers in order to enhance cotton productivity. Instead of imposing duty on import of cotton, FBR should zero rate inputs of cotton like fertilizer and electricity. The duty on cotton could only make a case if domestic cotton production was enough to meet local demand for cotton. The government is aware that the world is rapidly switching over to manmade fiber and to follow the global trend the government would have to create space for reducing the cost of staple fiber through removing the custom duty, which is in excess of 10%. Similarly, the increasing trend in the import of synthetic yarn is adversely affecting its local production. Imposing 15% Regulatory Duty on its import will provide some breathing space for its local production. The rationale of zero rated sector means ‘no tax’. It hardly makes sense to subject any of the zero-rated sectors to 1.25% turnover tax. This needs to be brought to zero as currently it is leading to recurring losses. Presently, Aptma is seeing that corporate tax is being slashed the world over. As such, its maximum rate should be fixed at 25% in the forthcoming budget. The government announced in 2016 to zero rate fuel, however, due to cumbersome procedures this incentive was a nonstarter. The FBR needs to streamline and expedite zero rating on the pattern of Expeditious Refund System. Strangely, FBR has disallowed tax adjustment on purchase of packing material and office equipment. Nowhere in the world in the VAT regime is anything used in manufacturing that is not entitled to adjustment. For this purpose, the government needs to delete such exclusions otherwise the buyer may switch over to informal market for buying without payment of tax. It has also been found that non-payment of refunds and duty drawbacks has aggravated the liquidity crunch of manufacturers. The FBR needs to put in place an automated procedure for upfront payment of duty drawback as well as refund of sales tax and income tax. The export led growth package announced by the government in January 2017 still faces bottle-necks and has been unable to see the light of the day. Package delayed is package denied and as such government needs to make allocation of funds in the budget for the State Bank of Pakistan to make immediate payment on realization of export proceeds. The whole chain of local manufacturers that constitutes the textile sector sells goods directly to exporters. Facilities such as refunds and Long Term Financing Facility (LTFF) which are available to exporters should be extended to indirect exporters which is the standard practice even in developed countries including the European Union. This will encourage sale within the value-chain for producing Textile goods meant for export, Aptma said.

Source: The Nation

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Trade war or not, U.S. cotton exports set for banner year

The escalating U.S.-China trade dispute is unlikely to derail the stellar run for U.S. cotton exports this year due to robust demand, crop issues in India and lower synthetic fibre output from China, traders and analysts said this week. The natural fibre came into focus in the dispute after Beijing proposed fresh tariffs on U.S. goods and commodities, including cotton and soybeans, following similar moves by the United States. "It should be a zero-sum game in terms of trade, with U.S. cotton going to destinations other than China and competing countries taking more of Chinese market share," said Beau Stephenson, cotton merchant at Dallas-based Omnicotton. China, as a large producer of synthetic fabrics like polyester and nylon, is already dealing with problems of its own as the country has cracked down on pollution emitters, which include makers of synthetic fabrics. That could boost cotton's market share among textiles, analysts said. Market participants say the conflict could even fuel an acceleration in near-term U.S. shipments to China, in turn boosting 2017/18 exports. Last year was a multiyear high for U.S. cotton exports. "If the U.S. government takes time to act, therefore delaying retaliatory actions by China, mills could rush to import as much as they can before the tariffs hit," said Gabriel Crivorot, analyst at Societe Generale in New York. Traders expect 2017/18 year crop exports to top a U.S. Department of Agriculture (USDA) forecast of 14.8 million 480-pound (218 km) bales and surpass last year's exports of 14.9 million bales, the highest since 2005/06. Total bales committed for 2017/18 now stand at about 16 million 480-pound bales. At 2.6 million or 16 percent, China accounts for the largest share of that figure, latest export sales data showed. Overall, the superior quality of U.S. cotton would help mitigate any significant impact, analysts said, as it remains the most preferred variety. "U.S. cotton is popular for a variety of reasons and it can find a home," said Louis Rose, director of research and analytics at Memphis, Tennessee-based Rose Commodity. However, some analysts expressed caution over the longer-term economic impact from an escalation in the dispute between the two world powers. "My main worry is that a trade war would push the global economy into recession," said Peter Egli, director of risk management at British merchant Plexus Cotton, adding that such a scenario could reduce cotton consumption. The United States could benefit from problems in India, the second-largest exporter, where output is dropping due to a pest infestation. The USDA sees global consumption at more than 120 million bales in the current crop year, levels not reached since 2007. "As people move away from polyester and man-made fibres, I think cotton will continue to get a bigger market share of overall textiles," Omnicotton's Stephenson said.

Source: Business Standard

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China commodities tariffs would hit Texas cotton, sorghum hardest

COLLEGE STATION – A trade war with China could negatively impact Texas agricultural producers. Texas agricultural commodities such as cotton and sorghum could receive significant blows if China’s proposed trade list of tariffs becomes a reality. “First, the new list of products that China is targeting are proposed tariffs, they have not happened yet (until the White House acts) on its new list of 1,300 Chinese products, including industrial robots and telecommunication equipment, which will not take effect right away,” said Dr. Luis Ribera, Texas A&M AgriLife Extension Service economist and director of the Center for North American Studies at Texas A&M University in College Station. “A public comment period will last through early May.” Texas’ share of U.S.-produced cotton makes up 46 percent of exports to China, valued at nearly $450 million annually, Ribera said. The Lone Star state’s share of exported sorghum produced in the U.S. is 25 percent and accounts for $209 million annually. “This isn’t yet a trade war, but things keep escalating,” Ribera said. “Hopefully both sides can sit down and figure things out before it gets to become a full-blown trade war. The two products hit the hardest for Texas would be sorghum and cotton.” Texas’ share of overall U.S. beef and veal production exported to China is 13.2 percent, or $4.1 million. “Texas is a large beef producing state, but we (currently) don’t export a lot of beef to China,” Ribera said. Texas wheat accounts for 3.3 percent or $12 million out of the $348 million export total to China annually. China’s latest list of tariff items drew responses from multiple national agricultural commodity associations this week, encouraging federal trade officials to bring a swift end to the list of proposed retaliatory tariffs. EDITOR’S NOTE: The local relevance of the article above is that according to the 2012 Census of Agriculture, Liberty County had 3,698 acres in sorghum, ranking it in the top 20 percent of counties for sorghum production nationwide.

Source: The Vindicator

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Swedish machinery makers to support Vietnam’s growth

TMAS, Textile Machinery Association of Sweden, is now firmly established in Vietnam, which means that its advanced production technology, innovative solutions and equipment are here to help build Vietnam to be a leading textiles and garments manufacturer on the global arena, the association reports. The Vietnamese textiles and garment industry has a history that dates back hundreds of years and is still one of the most important sectors of the country’s economy. Today, there are over 6,000 textiles and garment manufacturing companies with about 2.5 million employees, making Vietnam the third top garment exporter in the world. TMAS, Textile Machinery Association of Sweden, has established a local office in the 7th district of Ho Chi Minh City. Heading the office is Tran Phuoc Thanh, Business Development Representative for TMAS in Vietnam. “We see our involvement in the Vietnamese textiles industry as just beginning. We have been steadily building business since early 2017. Our deep understanding of the market, knowledge and competence make us very positive about our plans for tapping into exciting new opportunities that will benefit our customers and ourselves. As well as help the local industry and communities to prosper,” said Therese Premler- Andersson, Secretary General, TMAS. TMAS provides customers with highly innovative products, including machineries, equipment and solutions to support our customers in their production processes. All TMAS companies have representative and technical service worldwide to provide reliable technical support and after sales service at the right time. “This is key to why our customers stay with us well over time, and rely on us to help them grow and succeed,” said Mr Tran. “This makes it all the more essential for the technological advancements and innovative production processes to be introduced. Vietnam is poised for expansive growth and development, and TMAS member companies see the tremendous potential and the endless possibilities for adding value to an important local industry.” TMAS member companies are all well-established leaders in various areas of the textiles manufacturing process. The companies offer a combination of production expertise, textiles manufacturing knowledge, and superior products and services. “The Vietnamese textiles industry will continue to grow as it shifts over to new technologies and automation. We will shift from lower end clothing items to high end fashion and top-quality garments. The coming years are going to be extremely important and interesting for the textile industry in Vietnam,” said Mr Tran. TMAS president, Mikael Äremann was in Vietnam in early 2018, and is convinced of Vietnam’s growing importance as a major market for the innovative Swedish association. “Our member companies are highly competent and quality focused. We work closely together to capitalise on our combined strength and resources. In this way, our customers benefit from operational synergies to achieve optimum levels of performance and efficiency.” TMAS has a strong commitment to promoting environmental and social sustainability, whereby smart solutions are of the highest priority. The goal of all member companies is to achieve better performance and efficiency while maintaining the highest levels of quality. TMAS will be present at SaigonTex 2018, the biggest expo for the textiles and garment industry in Vietnam. This major textile and machinery trade fair will be held from 11-14 April in Ho Chi Minh City, offering an opportunity to showcase innovative Swedish technology, knowledge and quality.

Source: Innovations in Textiles

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In Texas, cotton is still king

Cotton is deeply woven into the cultural and economic fabric of Texas. Despite seismic changes in the state’s economy from the first wildcatters in East Texas at the turn of the last century to a different kind of wildcatters who built the new Silicon Hills of Austin, cotton’s influence and importance has remained. Texas has consistently led the nation in cotton production - the 5 million acres per year contribution of the Lone Star State is about one-half of the cotton produced by the nation as a whole. Each year, cotton is the leading cash crop in the state, generating $2.2 billion in crop value in 2016 alone. Cotton’s broader economic footprint in Texas has been estimated to be as high as $24 billion annually. Despite the economic contributions that cotton brings, the industry has suffered from extreme weather and political whims. The most recent examples were the devastating drought that hit the plains of West Texas in 2011, and cotton’s lone exclusion from the Title 1 safety net in the 2014 Farm Bill. All of this in the face of unfair competitive advantages for countries like China who enjoy higher government subsidies and lower production costs. Cotton producers are ready for the next chapter. The chairman of the House Agriculture Committee, fellow Texan Mike Conaway, is deeply committed to finding workable and reliable policy solutions to ensure a viable cotton industry. We have pledged our support to helping him achieve this goal and enact a new Farm Bill before the current law expires. And we’ve already begun to work toward that end. In the February disaster spending package, a seed cotton provision was signed into law that ensures cotton producers have the same risk management tools for their crop as their neighbors who farm corn, grain sorghum, and wheat. Additionally, USDA rolled out ginning cost share assistance as a lifeline for cotton farmers as they transition back into the Farm Bill’s safety net and who, without this immediate relief, could be put out of business. Fortunately, cotton farmers still have a voice in Washington. In the last several months, we have met with a number of producers who have shared their stories of the challenges of recent years and the optimism for a brighter future in farm country. These farmers, through a variety of national and Texas-based cotton groups, have been meeting with members of Congress on both sides of the aisle to describe the crisis in cotton country and how we can improve farm policy moving forward. Homegrown food and fiber is a matter of national security, and while we see fields white with cotton each fall in and around the Lubbock area, the case for cotton needs to be brought to the attention of our urban and suburban counterparts in Congress. As President Eisenhower once said, “Farming looks mighty easy when your plow is a pencil and you’re a thousand miles from the corn field.” Less than 2 percent of Americans grow the crops that feed and clothe our families. Unless we want to depend on foreign countries for our food and fiber needs, it is in our best economic and national security interest to support the hard-working men and women of agriculture. While we cannot fully protect them from the volatility of the market or the vagaries of the weather, we owe it to our cotton farmers to make sure they have the tools they need to compete in the global marketplace and maintain this great agriculture industry. Together, we’ll work to ensure that in Texas, cotton remains king. Sen. John Cornyn, R-Texas, is the senior U.S. senator from Texas and the Senate Majority Whip for the 115th Congress. Rep. Jodey Arrington, R-Texas, serves the 19th District of Texas. He serves as chairman of the Subcommittee on Economic Opportunity and on the Agriculture and Budget committees.

Source: Lubbock Online

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