The Cotton Textile Export Promotion Council has urged the government to conclude a limited trade deal with the UK that includes textile and clothing products.
With the UK signing trade agreements with 62 countries by January 1, 2021 including competing countries of India such as Bangladesh, Pakistan, Vietnam, it becomes all the more imperative for India to conclude the limited trade deal without any delay as India stands to lose market share.
Manoj Patodia, Chairman, Texprocil, said the textile and clothing industry is very keen that India should sign an early Free Trade Agreement with the UK as a duty free regime would be beneficial in creating a level playing field with other competing nations.
The UK is one of India’s largest trading partners among the European countries with textile and clothing sector accounting for almost 24 per cent of the textile products exported from India to the EU region.
Patodia also mentioned that the proposed visit of the UK Secretary of State for International Trade, Elizabeth Truss provides an opportune moment for India to discuss the ‘limited trade deal’ which can get further cemented during UK Prime Minister Boris Johnson’s likely visit to India in April.
Source: The Hindu Business Line
The Indian textile industry is happy with the initiative taken by the Ministry of Textiles (MoT), in conveying to the Commerce Ministry, to pursue and conclude a limited trade deal with the UK that includes textile and clothing products.
As per media reports, MoT has put its weight behind an early limited Free Trade Deal between India and the UK which, it says, must include tariff reduction for textile and clothing items, resulting in possible gains for the sector.
“The textile & clothing industry is very keen that India should sign an early Free Trade Agreement (FTA) with the UK as a duty-free regime would be beneficial in creating a level playing field with other competing nations,” said, Manoj Patodia, Chairman, TEXPROCIL (The Cotton Textiles Export Promotion Council).
It is pertinent to mention here that the UK is one of India’s largest trading partners amongst the European countries in the Textile and Clothing (T&C) sector accounting for almost 24 per cent of the T&C products exported from India to the EU region.
With the UK signing trade agreements with 62 countries by 1 January 2021 including competing countries like Bangladesh, Pakistan, Vietnam, it becomes all the more imperative for India to conclude the limited trade deal without any delay as India stands to lose market share.
The proposed visit of the UK Secretary of State for International Trade, Elizabeth Truss provides an opportune moment for discussing the ‘limited trade deal’ which can get further cemented during UK Prime Minister Boris Johnson’s likely visit to India in April.
Source: Apparel Online
Beena Kannan, custodian of the brand Seematti, has unveiled a luxury silk clothing brand that offers a range of apparels and accessories.
The Beena Kannan signature brand aims to showcase the rich Indian heritage of silk weaving to the world. The launch event in Kochi witnessed 21 top models, styled in Beena Kannan designer masterpieces, gracing the runway.
Govt weaving a structure for technical textiles, man-made fibre
She also launched India’s first flagship luxury fashion museum spread across 17,500 sq feet. The store-cum-museum brings different art forms from the world under one roof. The store is a pavilion of five leading art forms fused with authentic Indian silk, resulting in a collection for all generations. Kannan is reviving ancient art forms such as Chettinad, Mughal, Byzantine and Jamawar.
Experiment in weaving
“With the launch of this legacy brand, I am thrilled to introduce my signature brand, inspired by ancient art and fused with my love for silk. Beena Kannan for me is an experiential brand and a definition of the modern art. The attires are designed to create an impactful fashion statement and be an empirical journey for all”, she said.
The company in a press statement said that the new venture of Beena Kannan is an innovative and unique experiment in the field of weaving. Entry to the 17,500 square feet store at MG Road, Ernakulam, will be by prior booking and invite only.
Source: The Hindu Business Line
Tamil Nadu’s elections are synonymous with a freebie culture, which political parties defend as welfare schemes for social welfare but most others see as dole.
The 2021 assembly elections, for which polling is set to be held on 6 April, are also loaded with freebies, with parties promising allowances for homemakers, bus subsidies, free washing machines and LPG cylinders.
amil Nadu is second only to Maharashtra as the most industrialised state and has the second largest economy in the country. Home to all sorts of industries and a base for manufacturing, the state is known in the West as ‘India’s Detroit’, for its automobile industry, and ‘Manchester of South India’, for its large textile industry. It has also been a hub for pharmaceuticals, electronics and leather.
And economists and industry representatives are worried that after a year-long pandemic-induced lull, these freebies will only push the state economy down.
Dr K.R. Shanmugam, director and professor at the Madras School of Economics, explained that though freebies are not new to the state, this time, the trend has only risen.
“The revenue expenditure alone is Rs 2.5 lakh crore, and the total expenditure announced in the interim budget was approximately Rs 3 lakh crore. If one looks at the household allowances promised by parties, they would amount to Rs 40,000-45,000 crore, which is one-sixth of the budget — a very large figure,” Shanmugam explained, adding that if parties gave freebies to “undeserving people”, they would curtail development and creation of infrastructure in the state.
Tamil Nadu is estimated to witness a growth rate of 2.02 per cent in 2020-21, compared to 8.17 per cent reported in 2019-20, though the state is registering positive growth compared to the rest of the country, which is estimated to see -7.7 per cent growth. However, in 2021-22, the state is estimated to have an overall revenue deficit of Rs 41,417.30 crore and fiscal deficit of Rs 84,202.39 crore, according to the interim budget.
Vidya Mahambare, professor of economics at Chennai’s Great Lakes Institute of Management, referred to Tamil Nadu’s economy as a “true success story” which has seen long-term growth.
“The state’s average incomes are fairly high and income inequality is much less. It has balanced development of both the manufacturing and service sector. However, the area which needs attention is employment and skilled jobs as the local population is highly educated,”
Source: The Print
2020 was a life-altering year across the globe. Consequently, embracing the new ‘work order’, leading brand-consulting company Black White Orange announced their foray into the apparel market with ‘SHIRTEE’. Invented, designed & Made in India, the ‘Shirtee’ is a formal shirt that is actually a t-shirt!
With over 30 unique designs for men & women, the Shirtee is made of exceptional material that one can sleep in, work, lounge, gym & do video calls in! The range is manufactured locally in Mumbai & priced at INR 1,299 and 1,499 for solids and prints respectively. The Shirtee is now exclusively available on www.shirtee.in.
With plans to also launch in the US market in Q3 of 2021, the product promises to be a revolution in comfort & formal wear, with numerous corporate & retail orders in place.
Bhavik Vora, Founder & CEO, Black White Orange Brands Pvt. Ltd says, “A concept that promises to redefine the new ‘work order’, the patent-pending SHIRTEE is a labor of our in-depth R&D, while also being our first foray into our own apparel brand. Wearing a crisp shirt on a work call feels great but we realized it does not feel quite ‘at at home’. During the lockdown last year, this very aspect gave us the idea for Shirtee. We are proud to launch this home-grown innovative product and truly hope the consumers love it too. At BWO, innovation is something we truly believe in and we will continue to create path-breaking ideas like the Shirtee!”
The global pandemic has presented the fashion industry with a chance to reset and reshape owing to the remote working conditions induced by the lockdown, a trend that is likely to continue throughout 2021. The lockdown also changed the consumers’ mindsets and approach to fashion norms in a big way. Consumers are now getting back to shopping but with specific preferences of everyday / comfortable wear that they can just step out in, get back home & get to work in. That’s where Shirtee fits in. The design & utility patent-pending Shirtee will also be available across key online & offline stores in the near future. Made of lightweight fabric like spun poly and pique, it promises to provide the comfort of the very popular polo tees.
Source: Medianews
Coimbatore-based leading trade body, The Southern India Mills’ Association (SIMA), has launched Extra Long Staple (ELS) organic cotton contract farming pilot project in Tamil Nadu.
Leading textile company Precot Limited, Coimbatore and SIMA Cotton Development & Research Association (SIMA CD & RA) sign a MoU for the production of ELS organic cotton cultivation by supplying all the inputs at free of cost to the farmers and also guaranteeing to procure cotton at market price.
R. Ravichandran, Chairman, SIMA CD & RA, said that the MoU has been signed for the production of ELS organic cotton on a pilot basis in an area of 500 acres at Semmandipatti Village, Namakkal District.
The organic ELS cotton will have staple length of over 33 mm and would be suitable to produce organic yarn of counts up to 80s. The crop duration is around 160 days and is expected to give the productivity of 10 quintals per acre.
It is pertinent to mention that India has become the largest producer of cotton in the world; the country faces acute shortage of ELS cotton as the BT technology,which was introduced during 2003, provided the technology only for long staple cotton.
India consumes around 20 lakh bales (bale is equal to 170 kg) of ELS cotton, while it produces only 4 to 5 lakhs bales in a year and imports around 15 lakh bales of such cotton. The Government has been encouraging promotion of ELS cotton and is in the process of announcing a scheme shortly.
The Government has also been encouraging the production of organic cotton not only to protect the soil health and environment, but also to meet the growing demand of domestic and international markets.
Organic cotton textiles and clothing products command good premium in the market.
Established in the year 1974, SIMA CD & RA has been producing genetically pure cotton seeds to the tune of 600 metric tonnes per year and supplying to the farmers.
SIMA is maintaining around 700 Gemplasm of precious Indian cotton varieties and recently it submitted proposal for the development Source: Apparel Online
of ELS cotton, organic cotton and naturally coloured cotton to the Government.
With positive growth rate even during the pandemic, what Bangladesh can teach India
This month marks the beginning of triple celebrations in Bangladesh. It is the birth centenary of the father of the nation, Bangabandhu Sheikh Mujibur Rahman; it is the 50th anniversary of Bangladesh’s independence; and it celebrates 50 years of diplomatic relations between Bangladesh and India.
A country that began as a case study for development is now on top of the global GDP charts. Bangladesh’s GDP growth in 2019 was an enviable 8.4 per cent — twice that of India’s during that year — and it is one of the few countries to have maintained a positive growth rate during the COVID-19 pandemic. Its GDP per capita is just under $2,000 — almost the same as India’s. In five years, by 2026, Bangladesh will drop its least developed country tag, and move into the league of developing countries — on a par with India.
It is a proud moment for Bangladesh, and the Indian subcontinent. Just as Vietnam amazed the world with its fast-paced growth, so too has Bangladesh, which has displayed a will to grow despite odds.
Vietnam instituted market and economic reforms, known as Doi Moi, in 1986, which enabled it to achieve rapid economic growth and industrialisation.
It began with the manufacturing of textiles and garments, in which it is now a prominent global player, and moved into making mobiles and electronics. As supply chains diversify from China, Vietnam is a beneficiary. It is now the “+1” in the “China +1” strategy of multinationals and has seen investment rise steadily, especially from Asian countries like Japan and Thailand.
Vietnam has been smart in signing trade agreements and inserting itself into global supply chains. It joined ASEAN and that free trade region in 1995. It has free trade agreements with the US and with India, Japan, and China through ASEAN. This enabled Vietnam to skill-up its population for labour-intensive manufacturing produced at scale, thereby bringing down costs and expanding exports.
Bangladesh has followed a similar strategy.
Its rise is directly connected with the textiles and garments industry, which accounts for 80 per cent of the country’s exports. Bangladesh also enjoys preferential trade treatments with the European Union, Canada, Australia, and Japan with negligible or zero tax. With India too, Dhaka has a zero-export duty on key products like readymade garments. Over the years, Bangladesh has enhanced its agricultural production, power generation, natural gas exploration and production, pharmaceuticals, and foreign remittances.
Like Vietnam, its foreign investment regime is investor-friendly. For instance, Bangladesh’s liberal FDI policy allows 100 per cent equity in local companies and no limits on repatriation of profits in most sectors. Indian companies are increasingly present in Bangladesh, and Indian products are popular — an outcome of a strong cultural affinity.
Bangladesh scores over almost all other developing countries in microfinance — a model it has exported. The world’s most successful and pioneering microfinance organisations like Grameen and BRAC have aided small businesses in the country, and regionally. Many of these schemes, over the years, were directed at women. This has paid dividends not just in financial independence, but also in encouraging them to work outside the home. Consequently, Bangladesh’s workforce in its textiles sector is almost all women — 95 per cent women in an industry which is 80 per cent of Bangladesh’s exports. Having a woman Prime Minister like Sheikh Hasina as their champion, helps.
This, along with government schemes like Pushti Apas (Nutrition Sisters) and community health clinics has helped Bangladesh in the development indices: Bangladesh fares better on infant mortality, sanitation, hunger and gender equality than many countries including India.
What can India, South Asia and the world learn from Bangladesh’s successful development trajectory?
Certainly, increasing women in the workforce, liberalising internal and external trade, and making micro lending accessible, are some of the lessons. But so is the goal of being a global hub for the sub region, building special economic zones which requires infrastructure, connectivity and a welcoming environment for investors both domestic and foreign. Domestic entrepreneurs create the base for a nation’s small and medium business strength, and the jobs and innovation that go with it.
On March 26, when Prime Minister Narendra Modi visits Dhaka as the guest of honour for Bangladesh’s 50th anniversary, he will push the button on the long-delayed bilateral connectivity projects, and launch new ones. He can do more. Ahsan Mansur, chairman of BRAC Bank, said at a seminar last week organised by Gateway House and the Konrad Adenauer Stiftung, that “both countries have suffered since 1947, without connectivity, at huge cost. Now is the time to integrate our power systems, think about free trade, liberalise the visa regime.”
India need not always carry the burden of South Asia’s development alone. It now has a partner with whom to collaborate effectively towards achieving that goal.
Source: The Indian Express
Improved yarn prices because of a sharp rebound in demand in the second half of the current fiscal will help maintain the operating profitability of Indian synthetic (polyester and viscose) yarn companies at 10 per cent this fiscal, despite the pandemic effects.
This has been indicated in a study of 75 Crisil-rated spinners, accounting for 40 per cent of the industry revenue.
Prices of polyester yarn and its key input, purified terephthalic acid (PTA), fell after the onset of the pandemic. But they rebounded in September 2020-January 2021, with the price of yarn rising faster than PTA, thus aiding profitability.
In fact, the spread -- or the difference between the price of yarn and its raw material -- rose to a three-year high of Rs 26 per kg in the December 2020 quarter, the ratings agency said.
On the other side, prices of viscose yarn and its raw material input have remained largely steady, supporting spreads. Although some softening in the polyester spreads is expected over the next two quarters, it is still likely to remain higher than that in the corresponding periods of last fiscal as the tide of demand continually rises. This is likely to support operating profitability next fiscal, too, Crisil said.
Synthetic yarn is used mostly in athletic and leisure (athleisure) wear, and home textiles. Demand from these segments went on a tailspin in the first half of the fiscal, but rebounded sharply thereafter, driven by the 'work-from- home' shift.
India's athleisure market worth Rs 50,000 crore and home textiles market worth Rs 55,000 crore saw a sharp demand recovery owing to health and comfort needs, along with consumer spending on home improvement.
Says Dinesh Jain, Director, Crisil Ratings Ltd, "Operating rates for synthetic yarn spinners are expected to be in the range of 65-70 per cent this fiscal, even with strong order flows in the second half. But that should not be a concern to spinners, given that the spreads are attractive this fiscal. In fact, the low rates provide spinners enough headroom to absorb additional demand next fiscal, without immediate need to increase capacities."
Crisil said that overall the industry is expected to see a contraction in volume to 5.5 million tonne this fiscal from 6 million tonne last fiscal. Spinners are expected to mitigate this impact by tightening their working capital cycles, with faster collections and better inventory management.
Says Krishna Ambadasu, Associate Director, Crisil Ratings Ltd, "By the end of current fiscal, borrowing levels will remain low with spinners maintaining an efficient working capital cycle. Moderate inventory stocking owing to round-the-clock availability of raw materials such as polyester and viscose, and shorter receivables cycle, have helped. That, and limited capital investment needs will keep the capital structure of spinners benign."
Gearing levels of synthetic spinners will be comfortable at 0.5 time this fiscal versus 0.8 time last fiscal. Further, reduced interest outgo and stable profitability will ensure interest coverage ratio remains healthy at over 4 times, aiding an improvement in credit profiles. With players expected to sustain profitability next fiscal, credit profiles should get a boost. Continued order flow from end-user segments and steep increase in raw material prices will bear watching.
Source: The Business Standard
At a time when overall apparel exports went through a turmoil situation in 2020, Bangladesh beat its competitors in the US market and became the largest denim exporter to the country.
Bangladesh is also the number one denim products supplier to the European Union, which imported over 65% of the clothing products of Bangladesh.
According to the US Office of Textiles and Apparel (OTEXA), exporting denim products to the US market Bangladesh earned $561 million in 2020, down by nearly 4%, which was $585 million in 2019.
However, Bangladesh’s market share in US denim products rose to 20.03% in 2020 taking the first position from Mexico. Mexico holds the second position with a 16.74% market share followed by China 11.85%.
In 2019, Bangladesh’s market share was 15.7% and she held the third position in terms of exports value of denim products, while Mexico’s share was 21.50% and the largest exporter followed by China’s 18.64%.
In the last five years, Bangladesh recorded a 7.18 percentage point gain to 20.03% from 12.85% in 2016.
In 2020, Mexico’s denim exports to US markets declined by 41.54% to $469 million, while China’s denim shipment plunged by 52.29% to $332 million. Vietnam recorded the lowest fall by 1% to $368 million.
Bangladesh holds a 29% market share of total EU denim markets as of 2020.
According to statistics from the Directorate-General of the European Commission, Eurostat, Bangladesh has earned over €1 billion from exporting denim products to EU countries during the January-December period of 2020, which was €1.27 billion in the previous year.
Turkey is the second-largest exporter of denim products to the EU market, which earned $940 million in 2020.
A strong backward linkage industry especially in fabrics manufacturing and washing played a key role in becoming the export leader of denim products as said by the industry people.
On the other hand, exporters invested a lot in research and innovation, product development and technological upgradation, which paved the way to this end.
Meanwhile, branding of Bangladeshi denim products through expositions also helped to draw the attention of global buyers to purchase from here.
“In the last few years, Bangladesh witnessed a huge amount of investment in denim fabrics manufacturing, which increased the country’s production capacity to reduce import dependency for fabrics,” said Sayeed Ahmad Chowdhury, director of Square Denim.
As the denim manufacturers now can purchase denim fabrics from local sources easily, the lead time to ship products came down compared to previous years. This helped a lot to manufacturers to attract more buyers, which also is an opportunity for us to grab more market share in export destinations, he said.
According to industry people, in the last couple of years, Bangladesh’s capacity to meet the demands of denim fabrics rose to nearly 50% from 30% a few years ago.
According to Bangladesh Textile Mills Association (BTMA), 32 mills produce denim fabrics for export-oriented denim product manufacturers.
On the other hand, we were able to start production after the lockdown earlier than Mexico. Mexico lost the market and we gained from their losses but it is not an ideal situation to compare, Sayeed explained.
Also, the US-China trade conflict and relocation of Chinese investment helped Bangladesh in grabbing more market share.
“US policy on banning procurement of cotton and even raw materials from China’s Xinjiang region was a blessing for Bangladesh. Since we are strong in denim manufacturing, buyers moved here and placed more orders,” Sharif Zahir, Managing Director, Ananta Denim Technology Ltd told Textile Today.
Besides, trade conflict and the then uncertainty caused by the Trump administration also dictated buyers to relocate the business, he added.
However, the prices of goods are a big concern for the exporters as the prices of the raw materials went up sharply but the buyers are not adjusting it, said Sharif.
On top of that, research and innovation and proportion of Bangladeshi products and capacity through exposition played an important role in expanding export earnings.
“In attracting buyers’ attention and presenting your products to global consumers, you need to promote through exhibitions. For the last few years, I did it through several expos focusing only on denim products,” Mostafiz Uddin, founder of Bangladesh Denim Expo, told Textile Today.
“The expositions exhibited the latest trend of products and brought global experts who shared knowledge with the local manufacturers. Today’s success is a result of our nurturing of the last six years.”
In addition, as a manufacturer, we have spent a lot to innovate and develop new products. While washing technology developed in the country helping manufacturers to produce value-added items, said Mostafiz, also managing director of Denim Expert Limited, a Denim manufacturer.
In retaining the present trend, we have to continue our present promotion and research and innovation, where the government and sector leader come forward, he added.
Talking on the denim sector, BGMEA former senior vice president Faruque Hassan said: “It’s a result of our relentless and collaborative efforts. Bangladesh already established the number one sourcing designation and we have to retain it to take it at a sustained level.”
As a business leader, in the days to come, my focus would be promoting the sector by paving ways for high-valued products. To this end, knowledge-based solutions to be brought, he added.
Source: Textile Today
Wearable tech is often helpful, but rarely as comfortable as your favorite sweater. MIT CSAIL might just make that tech downright comfy, though. Its researchers say they've developed smart clothes whose "tactile electronics" can track even subtler body movements while looking and feeling like the soft, breathable apparel you'd wear every day.
The textiles are machine-knitted using both conventional material and piezoresistive fibers that react to pressure and hold arbitrary 3D shapes. Machine learning helps calibrate and correct the sensors so that they produce consistent output. Neural networks, meanwhile, turn sequences of raw input into more usable data "frames" and predict poses. The result is a system that can not only capture many points of data in an unintrusive way, but infer what you're doing without requiring sensors across your entire body.
The initial prototypes cover a wide range of possibilities. Gloves can detect what you touch, while socks can tell when you're squatting or standing on your tiptoes. A smart vest can recognize poses and even the texture of the couch you're sitting on. There's also a sleeve that reacts to pressure on your arm.
The tech is made using affordable materials and would be relatively easy to mass-produce.
CSAIL envisions a range of uses for humans. Athletes could record their postures and help rookies perfect their form. Assisted-care residents could get help sooner if there's signs they've taken a fall. However, the technology could even help robots — you could teach robots to mimic tasks, or give them a "skin" with the advanced sense of touch they normally lack. In other words, this could be helpful even if it doesn't become part of your wardrobe.
Source: Engadget News
Thirty five per cent of businesses in Vietnam had to terminate employees after being hit by the impact of the COVID-19 pandemic, according to a survey by the Vietnam Chamber of Commerce and Industry (VCCI) and the World Bank. The survey found that textile and garment was the sector with the highest number of companies reporting negative impact (97 per cent).
That was followed by information and communications (96 per cent) and electrical equipment (94 percent), the survey, which polled nearly 10,200 businesses, it said.
Apart from dwindling number of workers, the other major difficulties businesses faced were difficulty in approaching customers and disruptions in cash flows and supply chains, it found.
Overall, 87 percent of companies reported a negative impact.
Small and micro businesses established less than three years ago were most affected by the pandemic, Dau Anh Tuan, head of the VCCI’s legal department, said.
But the government’s support polices were helpful, 70 per cent of respondents said.
Businesses called for more long-term solutions such as increasing public investment, completing ongoing infrastructure works and providing stimulus packages, according to media reports from Vietnam.
The VCCI has called on the government to provide financial support to companies that maintain a high employment rate and subsidize the cost of training to improve workers’ skills.
Vietnamese businesses should take the opportunities thrown up by the pandemic as major Japanese, US, European Union and Australian companies are looking to shift their supply chains out of China, it added.
The VCCI also did a survey of 1,564 foreign companies in Vietnam and found 87.9 per cent were affected by the pandemic and 22 per cent had to lay off workers.
Source: Fibre2Fashion News
Australia’s cotton production is expected to rise in 2021 as country’s normal weather continue to replenish reservoirs essential for irrigation. Also, Australia’s area under harvest has increased 78.57 per cent in 2020-21 to 0.28 million hectares from 0.06 million hectares in 2020, reaching to the production level prior to the spread COVID-19 pandemic.
Australia’s monthly average cotton production is expected to grow 312.70 per cent in 2020-21 to 0.22 million 480 lb bales (2019-20: 0.05 million 480 lb bales). This rise would also be 18.18 per cent higher as compared to season 2018-19..
Australia’s cotton exports for 2020 were $313.45 million with monthly average of $26.12 million (2019-20: average $47.16 million). If the rising trend continues with the reduction of COVID-19 impacts, the exports are expected to jump to a monthly average of $147.46 million in 2020-21.
Source: Fibre2Fashion News
