A section of e-commerce companies has urged the government to maintain stability in policy, emphasising that their businesses have been structured in line with the current regulations, a source aware of the discussions has said.
The companies discussed FDI policy in e-commerce with the department for promotion of industry & internal trade (DPIIT) in a meeting on Thursday.
Representatives of at least a dozen companies, including Amazon, Flipkart, Reliance, Snapdeal, Paytm, Tata Cliq, Grofers and Pepperfry, attended the meeting. Pepperfry said any change in policy is likely to weigh on investor sentiment. Already, a second Covid-19 wave might deter investors from going aggressive on funding, it said, as per the source.
“Companies like Paytm and Tata Cliq on the other hand maintained a neutral tone. They said the policy should be fair and transparent for all. Surprisingly, a discussion did not take place on discounting practices,” the source said.
All the companies are now expected to hand in individual submissions to the department in a week’s time.
Amazon India said in a statement, “We welcome the DPIIT initiative for consultations with industry and the opportunity for a constructive and continuing dialogue with the government. The FDI policy needs to be stable and predictable for investor confidence as any disruption in business will impact millions of livelihoods and jobs, have negative consequences on downstream suppliers and service providers including MSMEs, start-ups and offline stores which have barely recovered from the setback of Covid-19.”
Companies like Amazon and Walmart-controlled Flipkart, which have often faced Indian regulators’ scrutiny for their allegedly discriminatory business practices, are spending billions of dollars to expand their operations, set up infrastructure and train small and medium businesses.
Last week, the DPIIT had initiated a consultation with stakeholders on the FDI rules in e-commerce. The Confederation of All India Traders, in its representation to the department, said that although the government has clarified through various press notes that foreign e-commerce players can operate only through marketplace platforms, large companies have continued to resort to prohibited inventory-based model of e-commerce by direct and indirect control over the sellers’ inventory.
The government is said to be mulling issuing a clarification on FDI rules. Media reports earlier indicated that the government could tighten the policy, directing companies to restructure their existing marketing tie-ups.
In December 2018, the government had revised FDI norms, barring online marketplaces from selling products of companies in which they hold stakes or control the inventory. Companies were also banned from inking exclusive marketing arrangements that could influence product prices. The rules said the inventory of a vendor would be deemed to be controlled by e-commerce marketplace if more than 25% of purchases of the vendor are from the marketplace entity or its group companies.
Source: The Financial Express
The Apparel Export Promotion Council (AEPC) on Saturday urged the government to impose restrictions on exports of cotton yarn in order to curb prices and increase supply for domestic manufacturers. AEPC Chairman A Sakthivel said despite several efforts by the government to reduce the price of cotton yarn, it has consistently increased in the last four months and was affecting the entire value chain.
"We request immediate intervention to increase the supply of yarn to domestic manufacturers. We suggest that quantitative restrictions should be imposed on exports of cotton yarn, specifically on cotton yarn of 26 counts and above," he said.
Sakthivel further said the Cotton Corporation of India (CCI) has reduced the price of cotton for small mill owners but this did not result in reduction of cotton yarn prices.
"The rate of increase in yarn prices far exceeds that of cotton prices. The steep increase in prices and unpredictability in availability of yarn means that garment exporters cannot honour commitments they made to their customers.
"This has also affected handloom and powerloom weavers badly. Looms have stopped production. Due to this, the domestic industry has also got affected adversely," he added.
The AEPC chairman said the sector would be hit hard if yarn is exported at the cost of domestic and export-oriented manufacturing industry.
"We also suggest that export duty should be levied on exports of cotton yarn. This will result in a sharp decline in domestic yarn prices and an increase in value addition and employment in the country.
"This will also help in increasing garment exports. And, it will result in only normal profits accruing to yarn spinners, not the super normal profit owing to the profiteering currently happening," Sakthivel said.
Source: The Economic Times
Apparel industry has sought urgent intervention of Textiles Minister Smriti Irani for imposing quantitative restrictions and export duty on export of cotton yarn from India, specifically on cotton yarn of 26 counts and above.
It is pertinent to mention that stability in cotton price and predictability in availability of cotton, which encouraged Cotton Corporation of India (CCI) to reduce the price of cotton to small mill owners, did not result in reduction of cotton yarn prices.
Apparel Export Promotion Council (AEPC) also wrote a letter to the Minister in this regard.
Dr. A. Sakthivel, Chairman, AEPC said that despite several efforts by the Government to reduce the price of cotton yarn, price has consistently increased in the last four months and has been affecting the entire value chain.
“The rate of increase in yarn prices far exceeds that of cotton prices. The steep increase in prices and unpredictability in availability of yarn means that garment exporters cannot honour commitments they made to their customers. This has also affected handloom and powerloom’ weavers badly. Looms have stopped production. Due to this, the domestic industry has also got affected adversely,” he said.
AEPC also suggested that export duty should be levied on exports of cotton yarn. This will result in a sharp decline in domestic yarn prices and an increase in value addition and employment in the country. This will also help in increasing garment exports. And, it will result in only normal profits accruing to yarn spinners, not the super normal profit owing to the profiteering currently happening.
The entire country is the loser if yarn is exported at the cost of domestic and export-oriented manufacturing industry. It is akin to exporting jobs at a time when the entire country is doing its best to get people back to work.
Source: Apparel Online
The Textiles Ministry is examining and working to resolve the crisis arising out of examining and working to resolve the crisis arising out of frequent rise in yarn prices and disruption in supply, said president of Tirupur Exporters Association (TEA) Raja M Shanmugham on Friday.
In a statement here, Shanmugham expressed hope of a positive solution to the crisis. International cotton prices have started coming down, of course not to the level of domestic cotton prices and in line with this, the Indian cotton prices have also been gradually reduced, he said.
He expected the normal price range would be witnessed in the near future. In a recent meeting with the textile mills associations, he had said the need of the hour was to reach a win-win situation and to come out of the woods.
He had requested to consider TEA's plea for reduction of yarn prices as MSMEs are in large numbers and also ensuring supply of yarn in time as per the commitment given to the members of the association.
Referring to what he described as better business relationship between mills and the downstream sector, he said this could help mutual growth of both sectors in the long run and the mills associations have assured to take positive steps for the betterment of all sectors in the textile industry.
Shanmugham said the new financial year would give business confidence, prosperity to all exporting units and the stakeholder units connected with exporting units. Expressing apprehension on the second wave of COVID-19, he appealed to exporting units and the stakeholders units to be cautious and ensure vaccination of the members, their employees and others connected with the industry, who were aged above 45.
Creating worries for readymade garment (RMG) manufacturing countries –especially Bangladesh. Creating a pile-up of unsold apparel amid miserable sales. Bangladeshi RMG manufacturers say that there were getting 20% fewer work orders for the next season starting from June.
Mainly in small and medium enterprises are taking fewer order placements as they have fewer production capacity and frail fiscal strength, and a few foreign buyers.
Industry leaders say the demand for late payment is still as severe as it was in the early months of COVID-19 in 2020. In some cases, it has worsened as the condition in the Western market is terrible.
AK Azad, Managing Director of Ha-Meem Group faces fewer orders and late payment.
Azad said, “I know the lockdown will lengthen, and there is an uncertainty, and I am trying to improve the efficiency so that I can survive during COVID-19.”
One of the major markets, the EU – accounts for 60% of garment exports – for Bangladesh, is having the 3rd wave of infections. Countries such as Italy, Germany, France and UK are recalling stricter lockdowns, and several other countries across the world are following it.
Before COVID-19, buyers used to give payment due on-demand at sight. It needs the party receiving the good or service to pay a portion amount directly upon being presented with the bill of exchange. While currently, buyers are now demanding a late payment for 180 days, occasionally even more. So, the situation has not improved in terms of payment deferment, suppliers said.
Small and medium (SMEs) are the foulest victims in such a condition. Moreover, most of them are not receiving sub-contracting orders as the larger units do not have big volumes of RMG export orders for themselves for the next seasons.
Fazlul Hoque, Managing Director of Plummy Fashions Ltd said, “The old inventory in the retail stores is one of the major reasons for the go-slow policy by the buyers. I have received 20% fewer work orders from my buyers for the next seasons.”
Hoque added that the apparel orders for some specific products were higher than the traditional goods.
For example, he received the orders for loungewear and night wear because of a higher demand for casual wear as people are usually staying home in COVID-19 lockdowns.
Kutubuddin Ahmed, Chairman of Envoy Group said, “Although the industry had been experiencing 20 percent to 30 percent fewer orders, it was recoverable because of the unstable work orders from China.”
Rubana Huq, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said, “Buyers are following now a go-slow approach and placing orders in small slots instead of bulk amount. Since the Western market is under strict lockdown, their retail sales have plummeted. So, the request for payment deferment is always there.”
Throughout the March-April period 2020, the RMG industry met order cancellations and deferrals worth about $3.18 billion.
“We are negotiating with each of the buyers as best as we can. Some 90 percent of the previous orders have been reinstated, and we are trying for the rest. However, it is complicated since a good number of the dues are caused by the bankrupt buyers, and we don’t have any legal protection against such non-payment,” Huq added.
Not all the retailers and brands have cleared the full debts yet, she also said.
Whenever the BGMEA is reported about non-payment or other purchasing-related issues, the association immediately engages with the respective buyers to facilitate amicable resolution and expedite negotiation, Huq said.
“We have been contacting the buyers one by one on behalf of our suppliers. We have taken the help of our foreign missions, international media, and other social partners, including labour federations.”
Source: Textile Today
Digital lending based on GST data can help close the credit gap of around $250 billion for SMEs and provide finance at lower rates to reduce their borrowing costs, according to Vayana Network, a supply chain financing platform.
Vayana has been able to lower the cost of financing for MSMEs on its platform by 200-600 basis points by partnering with banks and NBFCs which are looking at supply chain financing to build their MSME portfolios.
Ram Iyer, founder and CEO, Vayana Network, said MSMEs have been underserved by the formal banking system due to a trust deficit arising from the absence of credible data about them and the prohibitive cost of servicing large numbers of small MSMEs. Vayana addresses the trust deficit by using credible alternative data like GST and real-time trade data analytics to facilitate credit to MSMEs. The smallest of MSMEs are being integrated into large SCF programmes run by the formal banking system, freeing them from the clutches of the high-cost informal market, he said.
Iyer said the financing costs on their network are lower by 200 to 400 basis points for SMEs and up to 600 basis points in case of last-mile retail financing. The company will be targeting $10 billion in cumulative disbursement in 2022, and he expects the throughput to grow exponentially and double on the platform every year.
Vayana has till date enabled $6 billion in trade finance for 300 supply chains in 25 different industries and processed 1.7 million transactions.
Vayana and CRIF Solutions, a provider of credit information, analytics, scoring and decision solutions, recently launched a tech-based tool for assessment of MSMEs. The Good Business Score is based on ongoing GST data. Parthasarathi Patnaik, chief risk officer, Vayana Network, said a good score will help MSMEs improve their bargaining power as the score was based on GST filings, which are an authenticated and credible piece of data.
The product has generated interest from MSMEs, corporates, B2B supply chains and lenders, and the company expects to assess and score over 10,000 SMEs over the next quarter. Two public sector banks, two NBFCs and three corporates have already reached out to the company use the tool to assess their supply chain partners and customers.
Source: The Financial Express
Cotton futures were trading higher at Rs 20,710 per bale on March 26 after touching a series low of Rs 20,150 during intraday on the MCX. Prices had declined 2.36 percent on March 25 to settle at Rs 20,310/bale on the MCX.
The agri commodity traded in the positive territory after a gap-down start in the afternoon session, tracking firm global cues, weak dollar and rise in crude oil.
The soft commodity has been trading higher than 200-day moving averages but lower than 100, 50, 20 and 5 days’ moving average on the daily chart. The Relative Strength Index (RSI) is at 34.89 which indicates bearish momentum in prices.
“ICE Cotton futures witnessed a worst daily drop in a month yesterday, which intensified selling in domestic cotton during yesterday’s session. ICE Cotton futures have declined by nearly 20% in the last one month, which has dragged domestic cotton by around 10% during the period, said Mohit Vyas, analyst at Kotak Securities.
The falling global cotton stocks and attractive Indian cotton prices in the world market may support natural fibre after some more correction, Vyas added.
MCX April Cotton trades at a discount of 15 percent from Cotlook A price of 89.50 cents as on Wednesday.
In the futures market, cotton for March delivery touched an intraday high of Rs 20,770 and an intraday low of Rs 20,150 per bale on the MCX. So far in the current series, the commodity has touched a low of Rs 20,150 and a high of Rs 22,540.
Cotton futures for March delivery jumped by Rs 330, or 1.62 percent, to Rs 20,710 per bale at 15:48 hours IST on a business turnover of 1,230 lots. The same for April contract gained Rs 240, or 1.16 percent at Rs 20,900 per bale with a business volume of 8,068 lots.
The value of March and April’s contracts traded so far is Rs 3.03 crore and Rs 63 crore, respectively.
At 10:20 (GMT), US Cotton futures climbed 0.92 percent to quote at 79.16 cents/pound on Intercontinental Exchange (ICE).
Source: moneycontrol News
Bhartiya, India’s largest manufacturing export house of leather apparel and accessories, has implemented SupplierSure project in partnership with Eurofins BLC. This project gives third party verification to a range of positive activities like the social auditing process, traceability of materials, etc, that Bhartiya has been working on.
Bhartiya is already rated gold and silver by the Leather Working Group and has built on this solid environmental foundation to further develop on its concept of “a good company that wants to do better”.
“We worked with Eurofins BLC on this project using their insight into the needs and direction of the market and came up with an augmentation plan for the business. We had already begun the development process but wanted reassurance that we were on the right track and of course third-party validation of our activities,” AV Kishore, COO and head of leather division at Bhartiya International Ltd, said in a press release.
Working with Eurofins BLC, Bhartiya were able to validate their activities so that they can create authentic messaging. The validations included reviews of their social auditing process, the management of mould, policies on animal welfare and deforestation, the traceability of material, and the governance processes etc. These are all in addition to the in-depth assessment that is the Leather Working Group audit which covers operating permits, water and energy metrics and targets, liquid and solid waste discharges, RSL, MRSL and Chrome VI management, health and safety, VOC emissions, environmental management systems and more.
“One of the big projects Bhartiya worked on as part of this project was better transparency of their supply chain and clearer traceability of raw material origins. Bhartiya chose to work with Eurofins BLC to geo reference and map their complete upstream supply chain using our specialised mapping process and software. This on-going project has enabled them to ensure that their raw material sources are not driving deforestation and facilitates dialogue with in-direct suppliers further up the supply chain on topics such as animal welfare, deforestation, and social governance,” Eurofins release said. “Our view is that you must have good transparency of the supply chain to be able to manage potential sensitivities within it.”
The Bhartiya SupplierSure programme also focussed us on other important projects such as the biodegradability and disintegration characteristics of the different leather as well as starting discussions on other topics such as carbon footprint and life cycle analysis.
Source: Fibre2Fashion News
Tafrid Cotton Mills Ltd. – a textile spinning mill situated in Bhaluka, Mymensingh – stands out for its excellence not only in diversified spinning yarn but also in various other aspects.
Based on the annual turnover, regular revenue deposit, domestic raw material use, export income and production of import alternatives, labor training and welfare measures, this industry has claimed its position as the best in medium category industry in President’s Industrial Development Award 2018.
Under a 100-point evaluation system, Tafrid Cotton scored the highest and received the prestigious award recently.
Recently Team Textile Today visited their Bhaluka, Mymensingh factory and met with one of the renowned spinning experts Md. Shahinul Haque who is leading the company as Director (Operations). Md Shahin graduated from BUTEX and already served the spinning industry for more than two & half decades.
In the conversation with Team Textile Today, he has shared his experience and the secret stories of Tafrid success. Here is a glimpse of the discussion.
One of the fastest-growing medium category factory
Coming into existence in 2014, Tafrid Cotton has become a successful medium category business and gained a strong position in the spinning world only within 6 years. The group has 4000 full-time employees which is a remarkable number for such a medium category business.
With 76,000 spindle capacity of the group, this second-generation industry is producing over 100 MT yarn per month for the world leading brands. With a diverse range of products and bold work ethic, this spinning mill is thriving to take over the sections of the yarn market that is the least explored by others.
Proper selection of cotton
Tafrid Cotton produces top-notch yarn to support the knitting industry. That’s why they need to select the knitting suitable fibers. As their sister concern is Dhaka Cotton, which is inexorably intertwined with cotton trading, they get a competitive advantage with the vast knowledge and the latest information of cotton parameters which help them to source the best cotton at the right time for achieving the best quality with the lowest cost.
Tafrid sources more than 45% cotton from the USA, 30% from West Africa and the rest from Brazil and India. Proper selection of cotton gave them a jump start at their beginning and still, this is one of their best strengths.
Market and product diversification
Market & product diversification is one of the key strength of Tafrid. “We know how to make yarn competently and how to do proper marketing. We do marketing at those points where others can’t. We choose to market those products that others don’t produce”, said by Md Shahin. The special yarn that Tafrid produces is carded compact yarn. According to Md Shahin, this product is not produced by many and Tafrid Cotton exploits this opportunity to market their product.
Other yarns that Tafrid produces are slub yarn, ring denim yarn (7-16 Ne). They also create yarns for weaving like fine count, 40 count compact, etc.
High-tech machineries for optimum outcome
Tafrid Cotton Mills Ltd. has high-capacity machines. Their Blow room, Carding machines are high tech and their carding machine’s capacity is 100 kg/hr which is at least twice as much as ordinary carding machines.
By using automation to transport products from simplex to ring frame machine, Tafrid has reduced the involvement of manpower from 30-40% which also gives them a competitive edge in time and cost reduction.
All the above-mentioned factors are the strengths of Tafrid Cotton Mills Ltd. which are helping them to excel in business from the very beginning and allowed them to take place in the prestigious President’s Industrial Development Award 2018.
In the conversation with Md Shahin, he also added his thoughts about the challenges that are being imposed by the skyrocketing price of cotton and his suggestions about the new entrepreneurs who want to enter into the world of spinning.
Suggestions for new entrepreneurs
Md Shahin said, “Now it’s 2021. If someone wants to enter into the spinning industry, he needs to sustain till 2050 because the spinning industry is huge; at least 300-400 crore BDT is needed as an initial investment. So, he will have to plan in such a way that his machineries are state of the art and can sustain through the change of time.”
“There’s no scope of planning a business with the outdated machine set-up. Now new challenges are coming all the time- change in the global economy, fashion, disruption in the supply chain. A new entrepreneur will have to keep the courage to face all these challenges and overcome them,” Haque added.
Challenges that existing spinners are facing and the way to overcome
Regarding Challenges, Md Shahin stressed that “In the spinning industry, profit percentage margin is very low. In Bangladesh, 420 spinning mills are currently running. So, if we can’t come up with new concepts and keep continuing our production based on spinning cotton-based products, we won’t be able to increase our profit percentage margin.”
“That’s why, we need to make multidimensional spinning mills and make special yarns so that we don’t have to import them from India, China, or other countries. We need to fill up this void; the ones who will be able to take ventures in such diversifications, will sustain in the long term,” he added.
Source: Textile Today
According to the latest data by Ministry of Finance, Japan, the country imported garments worth 201.48 billion yen (US $ 1.85 billion) in Jan. ’21 as compared to 288.68 billion yen (US $ 2.66 billion) in the same month of 2020.
All major manufacturing destinations noted a downfall in their respective apparel shipment to Japan on Y-o-Y basis, while some of them noted growth on M-o-M basis.
China and Vietnam – two biggest apparel exporters to Japan – tumbled in their shipment to Japan both on M-o-M and Y-o-Y basis.
China earned 117.72 billion yen (US $ 1.07 billion) from its garment exports to Japan in Jan. ’21, noting 3.60 per cent monthly decline and 31.82 per cent yearly decline.
Vietnam too plunged by 7.17 per cent on monthly note and 32.17 per cent on yearly note to clock 31.01 billion yen (US $ 283.97 million) from its apparel shipment to Japan.
India and Indonesia were two countries which grew on monthly note in Jan. ’21 as compared to Dec. ’20.
India clocked 2.19 billion yen (US $ 21 million) in its apparel shipment to Japan in Jan. ’21 and grew 96.23 per cent over Dec. ’20; however fell by 23.82 per cent as compared to Jan. ’20.
On the other hand, Indonesia shipped 7.10 billion yen (US $ 65 million) in the first month of 2021 to Japan – marking 8.70 per cent over Dec. ’20.
As far as Bangladesh is concerned, the country exported 8.42 billion yen (US $ 77 million) worth of garments to Japan in Jan. ’21, falling 8.77 per cent on monthly note and 27.09 per cent on yearly basis.
Source: Apparel Online
India has undertaken special measures during the COVID-19 crisis to support liquidity flow to the textile industry, including the cotton textile sector, by introducing an option to release part subsidy against bank guarantee in facilitating the subsidy release process, textiles minister Smriti Irani told the lower house of parliament in a written reply recently.
Four hundred units are supported with ₹100.36 crore under the Amended Technology Upgradation Fund Scheme (ATUFS) and 20 units with ₹42.52 crore under the Revised Restructured-TUFS, an official press release said.
The average domestic price of cotton is cheaper by around 14 per cent during the current cotton season compared to the international price.
Source: Fibre2Fashion News
Bodh Gaya,known across the world for Buddhist tourism and pilgrimage, will now also be developed as a textile hub . Gaya DM Abhishek Singh said steps were being taken to develop Rampur
area of the town as a textile hub.
The DM visited Rampur on Wednesday and talked to the weavers to collect information about availability of raw material, preparation of the products and possibilities to make
handloom cafeteria so that a textile market can be developed for the foreign tourists visiting Bodh Gaya.
“Promotion of handloom and textile industry will improve the financial condition of weavers as they will get more work opportunities and find a market for their products,” the DM said.
He asked the executive officer of Bodh Gaya Municipal Council to inspect the land earmarked for setting up a handloom cafeteria at Rampur. “There is a need to improve road and drainage facilities in the area and ensure installation of solar lights to attract foreign tourists,” the DM said.
He also asked the officials concerned to construct two big entry gates in the locality. During his Bodh Gaya visit, the DM inspected progress of various projects like science city, cultural centre (convention centre), Maya Sarovar Park and the children’s park.
Meanwhile, work on construction of block and circle office is expected to be completes by May this. At Maya Sarovar Park, light and sound show on the theme of Buddhism will be started for the tourists.
Source: The Times of India
Amended Technology Upgradation Fund Scheme (A-TUFS) will focus on the incentives of machine manufacturing in India also. So far, the scheme is majorly for textile and apparel manufacturers.
A top official of the Ministry of Textiles (MoT) told Apparel Resources, “India is dependent on the import of machines for textile and apparel manufacturing; we certainly wish to reduce this dependency as much as possible. And for this, we are planning to add machine manufacturing in the upcoming edition of the scheme.”
It is pertinent to mention here that the ongoing ATUFS scheme will complete its time after one year on 31 March 2022.
MoT has been implementing Technology Upgradation Funds Scheme (TUFS) since 1999 to facilitate technology upgradation of textiles industry in the country. The scheme has undergone changes from time to time in terms of patterns of assistance provided and level of machinery upgradation desired.
Under this scheme, every eligible individual entity is supposed to get a capital investment subsidy worth Rs. 30 crore to Rs. 20 crore, depending on the amount and segment of investment. However, there are lots of complications regarding the execution of the scheme.
On the difficulties regarding proper execution of this scheme, he said, “We are very much aware that ATUFS has become ‘tough’ for the textile industry and keeping this in mind, we will make sure that in future no such challenge arises.”
Source: Apparel Online
Shares of Welspun India (WIL) advanced 10 per cent to Rs 84.65 on the BSE in intra-day trade on Friday after rating agency India Ratings & Research, a Fitch Group firm, upgraded the long-term credit rating of the company from IND AA- to IND AA with a stable outlook. The stock of the textiles company was trading close to its 52-week high of Rs 87.60 touched on March 15.
The upgrade reflects WIL’s better-than-Ind-Ra-expected balance sheet deleveraging through a strong operational performance including capacity utilisations, sales and operating margins post the unlocking of economic activities, as well as, improved working capital management.
The agency expects the deleveraging to continue along with strengthening of its business profile through emerging business and de-concentration of its home textiles segment, which could aid in combatting the inherent cyclical volatility in the home textiles business. Furthermore, a low balance sheet leverage is likely to provide headroom towards foraying and spending on growth areas, it said.
With the emergence of the homebody economy, there is a visible structural shift in consumers’ spending for home products. In October-December (Q3FY21) quarter, the company delivered a solid performance despite a seasonally weak quarter, clocking its highest ever quarterly revenue in the history of the company.
With increased focus on innovation, ESG and fast-growing e-commerce channel, the management while announcing Q3 results on January 27 said it will continue to advance the company’s operating models to the rapidly changing business landscape while increasing capacities to cater to the growing demand.
WIL is the largest home textiles company in Asia and among the top two textile companies worldwide. The company has been India’s largest exporter of home textile products and exports to 17 of the top 30 global retailers, thus lowering the counterparty risk. WIL has a healthy scale of operations and a diversified product mix comprising terry towels, bed linen. Furthermore, WIL’s environmental, social and governance risks being categorised as low reflects a healthy and sustainable business profile.
Source: The Business Standard
There is a desperate need for buyers to raise the purchase price of knitwear garments for the Tiruppur knitwear exports sector to sustain and face the challenging business environment arising in the last few months from the impact of the COVID-19 pandemic, according to Raja M Shanmugham, president of the Tiruppur Exporters’ Association (TEA).
Shanmugham appealed to buyers to consider the overall increase in the prices of fabric and come forward to revise the prices of garmentss.
After the government announced increasing the minimum support price this year for raw cotton procured from the farmers lint, ginned cotton prices have been increased from ₹36,016/candy (355.54 kg) in August 2020 to ₹46,720/candy in March 2021.
TEA has requested the ministry of textiles to intervene to reduce cotton prices as well, he said in a press release.
Shanmugham said the increase in cotton yarn prices, coupled with the increase in accessories prices and dyeing charges have made the manufacturing of garments costlier and pointed out that the fabric cost for manufacturing garments was ₹384.16/kg in August last year and has gone up to ₹464.8/kg in March this year—an increase of 21 per cent.
The difference in cotton yarn prices of regular cotton yarn and organic cotton yarn was just ₹10/kg before November 2020, whereas now that difference is now almost ₹120/kg. The fabric cost for manufacturing garments was ₹390.88/kg in August 2020 and has now gone up to ₹566.72/kg—an increase of 45 per cent.
He said in case of cotton and spandex yarn, due to increase in prices of spandex yarn, the fabric cost for manufacturing garments was ₹432.32/kg in August last and has now reached ₹546.56/kg—a rise of 26 per cent.
Source: Fibre2Fashion News
Sixty five per cent of all garments containing any amount of cotton will be derived from organic sources in the next four years, according to British company Superdry, which recently said more than a fifth of its garments contain organic cotton, and a third of all garments contain organic, recycled and low-impact fibres, including Tencel, hemp, yak or linen.
The decision is part of a strategy to support the company’s organic cotton requirements, by helping 20,000 farmers adopt the latest sustainable organic cotton farming practices. At the current rate of rollout, this initiative is due to reach its target of 20,000 farmers, mostly based in India and Turkey, by 2025, which is also five years ahead of the original target the company set out in 2019.
The company’s efforts in sustainability were recognised recently at the Drapers Sustainable Fashion Awards 2021, where Superdry was named the winner of the ‘Positive Change Award’, according to British media reports.
Julian Dunkerton, Superdry founder and CEO, said: “We are embedding sustainability in every part of the business, which I believe is important to our customers and is critical to lowering our impact on the planet. While we continue to challenge ourselves and the industry, this is an exciting milestone for Superdry on its journey to become one of the leading global sustainable fashion brands.”
Source: Fibre2Fashion News
Some textile and garment items from Vietnam that are entitled to preferential tariffs in the Eurasian Economic Union (EAEU) under a bilateral free trade agreement (FTA) exceeded the quota last year. The ministry of industry and trade said it recently received a diplomatic note from the Eurasian Economic Commission saying while the quota for jerseys, pullovers, cardigans and waistcoats was 1,520 tonnes a year, exporters had shipped over 1,640 tonnes.
Exports of knitted women’s suits also exceeded the quota of 382.7 tonnes, with 414.9 tonnes being shipped.
The agreement incorporates safeguard measures against exceeding quotas, and accordingly Vietnamese textile-garment exporters will not be entitled to preferential tariffs for a period of six to nine months and instead will have to pay Most Favored Nation import duties.
But Pham Xuan Hong, chairman of Ho Chi Minh City Textile and Garment Association, told domestic media outlets that members had not received any warnings from their partners in the EAEU market.
Some textile companies with factories in Vietnam import products from China and pass them off as ‘Made in Vietnam’, thus causing export volumes to surge.
Source: Fibre2Fashion News
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) recently asked all its members to report to the Bangladesh Bank by the end of this month their non-repatriated export proceeds up to 10 per cent. It issued a letter to this effect on March 16, calling for taking the move through their respective lien banks by March 30.
The information should be on the goods shipped since December 2019 to February last.
It is expected to help the factories clean their respective status in the online system of reporting exports and continue to get various export facilities, despite having huge amount of unrealised payments due to the COVID-19 pandemic, a Bangladesh newspaper cited industry insiders as saying.
The Bangladesh Bank uses the online system to track down whether the export proceeds are repatriated or not and accordingly allow the factories to enjoy the existing export facilities.
Amid the pandemic, Bangladesh Bank had earlier decided that the cases of unrealised export proceeds up to 10 per cent would be accommodated on the on-line system up to March 31 without approval from the BB's discount committee, exporters said.
The cases of discount above the threshold would, however, require approval from the committee. Usually, the exporters have to get approval from the committee in cases of partially non-repatriated export proceeds.
The move came against the backdrop of apparel makers' sufferings from the heavy cuts on the bills by their buyers, who were reportedly facing fund flow crisis due to the pandemic.
"In many cases, the entire export proceeds have not repatriated as global readymade garment (RMG) buyers are also financially affected due to the Covid-induced disruptions," the BGMEA said in its letter to the members.
In the recent months, the exporters claimed, such cases of non-repatriated export proceeds has gone up due to the pandemic as the exporters were facing frequent discounts on their bills.
Meanwhile, BGMEA, in another letter to the National Board of Revenue on March 4, requested not to put pressure on an export-oriented garment factory for its unrealised export proceeds.
The factory's buyer, JC Penny, has declared itself bankrupt due to the pandemic and a total of $1,433,715 against 25 of the factory's exports have not been repatriated, according to the letter signed by BGMEA president Rubana Huq.
The BGMEA letter said many global buyers have become financially insolvent since the outbreak of coronavirus in major importing countries especially in the EU, China and the United States.
Source: Fibre2Fashion News
More than a fifth of small British exporters have temporarily halted sales to the European Union and 4% have done so permanently, a survey showed on Monday, highlighting problems that have followed the Brexit trade deal.
A trade agreement between London and Brussels that came into force on Jan. 1 has caused disruption and delays for some companies having to deal with new bureaucracy and rules.
In the survey by the Federation of Small Businesses (FSB), 30 out of 132 exporters said they had stopped sales to the European Union temporarily, while five reported having done so permanently.
Just over one in 10 said they had set up, or were thinking of establishing, a presence within an EU country, the research, conducted between March 1 and 15, showed.
"Those that do business internationally are being hit with some incredibly demanding, unfamiliar paperwork," said FSB National Chairman Mike Cherry.
"What we hoped would prove to be teething problems are in danger of becoming permanent, systemic ones."
The government has previously said that some issues were temporary as it sought to resolve problems.
British goods exports to the EU, excluding non-monetary gold and other precious metals, slumped by a record 40.7% in January compared with December, while imports fell by 28.8%, the Office for National Statistics said this month.
In response to those figures, David Frost, who was Johnson's chief Brexit negotiator, said the "unique combination of factors made it inevitable that we would see some unusual figures".
COVID-19 and stockpiling have also affected trade flows.
Source: The Business Standard
The global cotton market is expected to reach $5.59 billion by 2025, growing at an compounded annual growth rate (CAGR) of 3 per cent between 2021 and 2025, according to a report from Technavio. The growth is attributed to government initiatives and support. However, overconsumption of water due to poor management and water pollution may hinder the growth.
On the other hand, the strategic crop due to its versatility will present new opportunities in the coming years, Technavio said in a press release.
Governments across the globe are taking various initiatives to support cotton farming. For instance, the Indian government has come up with several export promotion policies. India's Defence Research and Development Organisation is helping to produce yarns and eliminate the dependence on the import of Chinese products and other foreign clothing for military uniforms.
Furthermore, with two-thirds of developing countries dependent on the export of commodities, a core part of the work of the UN Conference and Trade and Development involves building countries' capacity to move up the value chain and diversify their exports. These factors will drive the cotton market over the forecast period.
"The growing use of cotton as prime material coupled with the support in economic growth and cotton as a source of livelihood will further boost market growth during the forecast period", says a senior analyst at Technavio.
The Asia-Pacific region (APAC) dominated the market in 2020 and is expected to maintain its lead over the forecast period. Eighty five per cent of the market's growth will originate from APAC during the forecast period.
China and India are the key markets for cotton in APAC. Market growth in this region will be slower than the growth of the market in North America.
Source: Fibre2Fashion News
Online fashion marketplace Koovs and British design house Blue Saint have partnered to launch an affordable activewear brand for the etailer. Blue Saint manufactures sustainable apparel and are suppliers for international fashion brands including ASOS, Topshop and Urban Outfitters.
“Online retail in India has seen exponential growth over the past few years and the adoption accelerated through the pandemic. Koovs has an aspirational customer base that perfectly suits our expertise in designing and manufacturing apparel for a global young affordable fashion market. There is a huge opportunity and a gap for affordable performance sportswear,” said Akshat Kedia, CEO of Blue Saint.
The collaborative collection under the label One/Zero By Koovs will sell shorts, vests, tops, leggings, joggers, sports bras and jackets for men and women.
Mary Turner, CEO of Koovs, said, “Our aim is to ensure that Koovs remains the affordable fashion destination for young adults in India.” Koovs is a London-listed India-focussed fashion marketplace.
Performance sportswear is a rapidly growing segment in India, with the market for activewear apparel (excluding footwear) predicted to grow at 13.4% CAGR from Rs 193.3 billion in 2018 to Rs 410.4 billion in 2024, the company said in a press statement. Currently, the market is dominated by premium-priced global brands.
Source: The Economic Times
Bangladesh, in the face of opposition from India, failed to accommodate a provision of 'pre-initiation consultation' on the anti-dumping issue in the MoU on trade remedial measures, signed between the two countries on Saturday last, officials said.
Dhaka and New Delhi inked the MoU during Indian Prime Minister's just concluded visit to Bangladesh.
From the very beginning of negotiations, India took a firm stand not to include the anti-dumping duty issue in the memorandum of understanding (MoU), they added.
Even it did not agree to include a provision of 'pre-initiation consultation' on the anti-dumping issue in the MoU document as sought by the Bangladesh side.
In the MoU text, India had referred to two articles-Article 5.5 of General Agreement on Tariffs and Trade (GATT) of the World Trade Organization (WTO) and Article 11 (A) of South Asia Free Trade Area (SAFTA) deal.
One party would notify another party seven days before in accordance with Article 5.5 of GATT and Article 11 (A) of SAFTA, according to the MoU.
Article 5.5 of GATT stated: "The authorities shall avoid, unless a decision has been made to initiate an investigation, any publicising of the application for the initiation of an investigation. However, after receipt of a properly documented application and before proceeding to initiate an investigation, the authorities shall notify the government of the exporting member concerned."
According to Article 11 of SAFTA, the least developed contracting states of the deal should be given consultation before initiating an anti-dumping investigation.
"The contracting states shall give special regard to the situation of the least developed contracting states when considering the application of anti-dumping and/or countervailing measures," Article 11 (A) said.
"In this regard, the contracting states shall provide an opportunity to least developed contracting states for consultations," it added.
Trade officials in Dhaka said in the MoU text, there was no mention that scopes would be given for consultation, but it was mentioned that notification would be given seven days before initiating any anti-dumping investigation.
When India had initiated anti-dumping investigation and subsequently slapped duty on jute goods in 2017, they said, New Delhi did not consult with Dhaka and clearly violated the clauses of the GATT and the SAFTA even though they were bound to do so.
At that time, Bangladesh raised objection to Indian violation of GATT and SAFTA clauses concerned, but Delhi did not pay heed to Dhaka's concern.
"As they did not follow legal requirements at that time, their imposition of anti-dumping duty on jute and other Bangladeshi goods should have been considered 'null and void'," a senior trade official told the FE.
Alongside tariff, para-tariff and non-tariff barriers, officials said, antidumping and countervailing measures imposed by India are also major concerns for Bangladeshi traders.
Presently, Indian anti-dumping duty is applicable to exports of at least three Bangladeshi items-jute goods, hydrogen peroxide and fishing net.
India in January 2017 slapped anti-dumping duty on Bangladesh's jute yarn, hessian and bags, ranging between US$19 and $352 per tonne.
A similar duty, ranging between $27.81 and $91.47 per tonne, was also imposed on export of hydrogen peroxide to India from Bangladesh in April 2017.
In 2018, India also levied anti-dumping duty, $2.69 per kilogramme, on fishing net exported from Bangladesh to its domestic market.
Despite extensive consultations for years, India did not withdraw these anti-dumping cases, hindering exports of Bangladeshi goods to the neighbouring country.
Source: The Financial Express Bangladesh
UKFT has presented an overview of UK textile businesses that participated in the 'Best of British Textiles' campaign. Apparel Textiles was the second part of the campaign showcasing some of UK’s most iconic apparel fabric mills, with products ranging from sumptuous tweeds to cashmere accessories, impeccable worsted fabrics and stunning silks.
Linton Tweed presented the latest collection of innovative novelty tweeds incorporating many colourful and textured fancy yarns, mixed with natural fibres. UK manufacturer Abraham Moon’s quality woollen fabrics to leading high street fashion brands in the mid-range to high-end apparel sectors were presented.
Designer and manufacturer Bella Tela showcased its indulgent embroideries, luxurious 3D florals, artisan silk hand paints, and glistening hand-beaded embellishments. Harris Tweed Hebrides fabric which is exported to over 60 countries and supplied to many of the world’s most recognised designers, fashion houses and luxury brands, too was displayed their collection.
Students on the BA (Hons) Fashion Textiles course at London College of Fashion offered exciting ideas for embroidery, print and knit during the campaign.
Laurent Garigue’s high quality sustainable fabrics that have been manufactured in Yorkshire since 1947 were displayed. The Joshua Ellis laid out its spring/summer 22 collection which offers a range of light-weight jacketing cloths combining simplicity with luxury.
A new creative design studio Margaret which develops beautiful and modern prints for the fashion and graphic industries, exhibited its latest designs. New and exciting kids’ print design studio Lion & Leopard also featured in the UKFT campaign.
Next UKFT will be showcasing a variety of British textile companies that create some of the most exciting and innovative textile products for the hand crafting market.
Source: Fibre2Fashion News
The boycott of cotton sourced from Northwest China's Xinjiang Uygur autonomous region is set to disrupt normal global supply cooperation, which will severely harm the global industrial and supply chain, especially as the world economy has not yet recovered from the impact of the COVID-19 pandemic, industry experts said on Friday.
They said global supply chain curbs on Xinjiang cotton are interfering with the normal operation of the global industrial and trading market, and will harm not only the global textile industrial system but also the interests of global consumers.
The comments came as the Chinese public voiced outrage upon finding out that several big global retail giants, including H&M and Nike, have chosen not to source cotton from the region over claims of "forced labor" based on lies and false information.
The Chinese public's support for Xinjiang cotton led shares of cotton companies traded in Shanghai and Shenzhen to rise 2.33 percent on Friday, according to Shanghai-based information provider Wind Info.
Shares of Chinese domestic sportswear groups also surged on Friday. On the Hong Kong Stock Exchange, Li Ning jumped nearly 3 percent, while Anta surged over 5 percent and Xtep increased nearly 3 percent.
However, ICE cotton futures fell on Thursday to their lowest level in more than three months amid market concerns over the boycott.
Mei Xinyu, a researcher at the Chinese Academy of International Trade and Economic Cooperation, said the boycott is interfering with the normal order of the industry and the market, which will increase costs and severely impact the global market.
However, Mei said global supply chain curbs on Xinjiang cotton will not hinder China's long-term development due to a hiatus between demand and supply.
Official data showed China produced around 5.95 million metric tons of cotton during the 2020-21 season, while its total demand reached 7.8 million tons during the same period.
"The impact of the boycott will propel China to focus on weak links in the related industries, which is conducive to fostering sustainable development and ensuring economic and social stability for the long run."
Yang Shu, associate professor at China Agricultural University, said the boycott of Xinjiang cotton was a game involving political and economic interests.
"Xinjiang cotton is not a regional product but is deeply embedded in the international trade system."
Yang said the boycott will affect the development of both China's textile industry and international trade, and it will also impact employment in Xinjiang.
"Facing the complicated international situation, Chinese cotton farmers and related enterprises should protect their rights through legal means. And the country needs to make every effort to have a far greater say in the cotton textile industry, and strive to participate in the formulation of standards and pricing. More efforts should also be made to diversify the layout of the industrial chain, improve the ability to defend against risks, boost innovation and further improve product quality," Yang added.
China is the world's second-largest cotton producer, and Xinjiang is the largest cotton-producing area in the country. Xinjiang manufactured 5.2 million metric tons of cotton during the 2020-21 season－about 87 percent of the nation's total production, data from China Grain Reserves Group showed.
As of the end of 2019, Xinjiang had 808 cotton processing enterprises, accounting for 84 percent of the country's total, according to the China National Textile and Apparel Council.
"In fact, the world is in need of Chinese textile and apparels products, as global consumers enjoy quality and affordable textile and apparel products from China," said Liu Jie, a senior cotton market analyst at Sublime China Information.
Data from the General Administration of Customs showed China's textile and apparel exports increased 9.5 percent year-on-year to $291.22 billion last year, making it the world's largest textile and apparel exporter. Those products are mainly exported to the European Union, the United States and Southeast Asia.
Liu took a rosy view of Xinjiang cotton's future development, saying that China needs to pay close attention to the global market's situation and should strive to gain more pricing power in the cotton market.
Kong Xiangzhi, a professor at the School of Agricultural Economics and Rural Development of Renmin University of China, said China has gained a key competitive edge in the global market and the boycott of Xinjiang cotton will not affect its long-term development, as it will propel domestic enterprises to gear up to expand and lead up to a decision to compete with its foreign rivals.
Wang Chikun, an independent economist, said the international companies stopping sourcing cotton from Xinjiang will gradually lose the Chinese market, which will leave huge growth opportunities for China's domestic retail brands.
Source: ChinaDaily.com
New research has found that demand for online shopping has grown since the start of the coronavirus pandemic, with 36 per cent of UK retail sales made online in January this year.
This is up from 20 per cent in the same month last year, according to figures released by the ONS.
With more UK retailers engaging in online sales over the last year, it is possible that some are choosing to or will be selling to a wider customer base through exporting.
UK retailers are being encouraged to check exporting rules under the new free trade deal with the EU, following the big increase in online shopping.
Meanwhile, showed textiles, clothing and footwear stores saw 56 per cent of their sales happen online in January, again an increase from 20 per cent a year ago.
The Department for International Trade found in July 2019 that 66 per cent of current or past exporters said they were essentially passive in their exporting behaviours – they responded to orders from abroad when they were received, but did not specifically target customers in other countries.
This compares to around 28 per cent reporting that they intentionally targeted customers in specific countries and would therefore be classified as ‘active’ exporters.
The remainder reported that they were unsure about their exporting approach (which may well be a proxy for passive behaviours).
The British Independent Retailers Association chief executive Andrew Goodacre said: “It is absolutely vital for independent retailers to understand the implications of the Free Trade Agreement.
“We urge these businesses to visit the relevant government ‘transition’ websites, read the documents, watch the videos etc.
“Whether importing or exporting, trade with Europe is important, and it is crucial for the retailer to understand how to do it properly and minimise disruption.”
The Department for International Trade has urged businesses to take action to access zero tariffs in the Trade and Cooperation Agreement.
They must check that their goods comply with rules of origin requirements, make a declaration, and ensure they have the correct evidence if they wish to claim preferential tariff rates when trading with the EU.
To help smaller businesses new to exporting and importing, the government has created the £20 million SME Brexit Support Fund. The scheme allows businesses up to £2000 in grants to help them adapt to new customs and tax rules, when trading with the EU through training and professional advice.
Source: Retail Gazette
To enhance trade between India and Bangladesh, Prime Ministers Narendra Modi and Sheikh Hasina recently underscored the need for removal of non-tariff barriers, upgradation of infrastructure and facilities of the land customs stations and land ports in a coordinated manner and harmonisation of standards and mutual recognition of agreements and certificates.
At the invitation of Hasina, Modi paid a visit to Bangladesh on 26 and 27 March to join the celebrations of the golden jubilee of the independence of Bangladesh, the birth centenary of the father of the nation Sheikh Mujibur Rahman.
Bangladesh requested India to lift the new policy of Indian customs stipulating verification of certificates of origin issued from Bangladesh. India conveyed that under the provisions of the new customs rules, in the event of a conflict between a provision of these rules and rules of origin of a trade agreement, the provisions of the rules of origin of the trade agreement shall prevail.
India reiterated its request for at least one major land port without port restrictions or with negative list of restrictions, on the border with North Eastern region of India for easier market access, starting with the integrated check post at Agartala-Akhaura.
The Bangladesh Standards and Testing Institute (BSTI) and the Bureau of Indian Standards (BIS) would collaborate for the capacity building and development of testing and lab facilities, according to an official release.
Bangladesh invited Indian investment in jute mills under public-private partnership, while India urged the former to remove existing practices that deter Indian companies from participating in tenders floated by various government departments there.
Source: Fibre2Fashion News
