As the pandemic rages on, threatening to disrupt economic activity, the textile industry, which has never had it so good on the export orders front, has sent out an SoS to the Centre and to state Chief Ministers.
The industry is at an inflection point with strong growth potential thanks to geopolitical factors. It has benefited from reports, in the last 6-8 months, of China using Uighurs in Xinjiang province as forced labour. This led to many top global textile brands moving orders to Indian players.
“I think most Western nations have banned sourcing from China. So, India is having a good deal,” T Kannan, Chairman and Managing Director, Thiagarajar Mills, told BusinessLine.
Bright outlook
Prabhu Dhamodharan, Convenor, Indian Texpreneurs Federation, agreed. “Export order outlook is good, and all developed markets and brands are showing good projections. Retail sales in the US are witnessing a robust trend along with lower levels of inventory with retailers leading to good demand for products like apparels and home textiles. The UK also opened its retail sector with the easing of he lockdown, post mass vaccination,” he said, adding that the sector is at the cusp of getting back its mojo.
But the rising Covid cases is threatening this dream run. “Though the spike in Covid cases is a concern, we have been telling Western clients that there is no major lockdown and operations of textile units are smooth as most units are spread out in rural areas,” he added.
Lockdown impact
Kannan is hoping that with government support the industry can complete the surging orders and establish India as a strong alternative sourcing base to China. But instances of States announcing lockdowns is worrying the sector.
The Apparel Export Promotion Council (AEPC) has already written to various Union Ministries and Chief Ministers of several States seeking support for uninterrupted manufacturing.
Any full lockdown, at this point, will tear up the hardwork put in by the apparel export sector over the last one year in getting back on the global map, A Sakthivel, Chairman, AEPC, said in his letter to Union Home Minister Amit Shah.
Source: The Hindu Business Line
In Tamil Nadu, the textile industry has appealed to the Government to include spinning, weaving, knitting, processing and vertically integrated textile units under continuous process industry category and permit them to run between 10 pm and 4 am.
Industry experts believe that the time restrictions between 10 pm and 4 am and lockdown on Sundays would curtail two-thirds of the production as the manufacturing units would be in a position to work only in one shift for six days in a week and have to stop production for two shifts and also on Sundays.
That would make over 75 per cent of workers jobless, which would have severe impact on the industry and livelihood of the people.
It may be mentioned here that the Government of Tamil Nadu on 18 April 2021 had imposed certain restrictions with effect from 20 April 2021 to curb the second wave of COVID-19 including 10 pm to 4 am time restrictions and lockdown on Sundays.
Ashwin Chandran, Chairman, Southern India Mills’ Association (SIMA), expressed his concern over the decision of stopping of industrial units during night hours between 10 pm and 4.00 am, and on Sundays. He stated that the textile industry has to work 24 x 7 across the value chain especially in the case of spinning, weaving, knitting, processing and vertically integrated units and the shift timings are normally from 7 am to 3 pm, 3 pm to 11 pm and 11 pm to 7 am.
The textile employee mobility will be normally between 10 pm and 1 am for the third shift employees to report for work, and the second shift employees to return home after completing the work at 11 pm.
He further said that that the industry is taking all care to adopt SOPs and also vaccinating the employees of 45 years and above on a fast track and therefore, such restrictions are not required for the manufacturing activities.
Source: Apparel Online
The Southern India Mills’ Association has appealed to the government to permit textile units to operate without time restrictions from Tuesday.
Secretary general of the association K. Selvaraju said that textile units –– spinning, weaving, processing, and vertically integrated units –– operate three shifts.
The workers of the 3 p.m. to 11 p.m. shift need to return home and those coming for the 11 p.m. to 7 a.m. shift need to travel at night from their homes.
Shift workers
The State government has announced lockdown from 10 p.m. to 4 a.m. from April 20.
The movement of workers should not be affected for both these shifts as these account for two-thirds of the production. The government should treat textiles as a continuous processing sector and permit operation of the units without time restrictions, he said.
Further, the employees should not be stopped from returning or reaching the workplace when the restrictions remain in place, Mr. Selvaraju added.
Source: The Hindu Business Line
RSWM Limited, the flagship company of LNJ Bhilwara Group, has got the recognition from the Ministry of Industries & CSR, Government of Rajasthan (India) for achieving the highest textile export turnover in 2020.
It’s worth mentioning here that LNJ Bhilwara Group is worth US $ 1.20 billion and RSWM Limited manufactures synthetic & blended spun yarns and exports to 78 countries.
The company has 10 state-of-the-art manufacturing plants, as of 2020, and is equipped with 4,41,000 spindles, 10,000 (MT/annum) cotton fibre dyeing capacity, 4,000 (MT/annum) yarn dyeing capacity and denim manufacturing capacity of 25 million metres annually.
Commenting on the recognition, Riju Jhunjhunwala, Chairman & Managing Director, RSWM Limited, shared, “I would like to congratulate the team of RSWM for achieving the highest export in textiles. Our continuous efforts of achieving excellence have been recognised by the Government of Rajasthan and we would like to thank them for the same. This reaffirms our resolve to the growth of the company, its stakeholders, employees and our commitment not only towards the state of Rajasthan but also the economy of the country.”
Source: Apparel Online
Two winters ago, while driving into Delhi at the crack of dawn, I found myself staring at looming soft mountains of candy pink foam rising from the grey surface of the river Yamuna. This surreal image with its perfectly complementary hues could well have been from a fashion editorial made for Instagram. But, ironically, the tableau was representative of the dark face of fashion that remains in the shadows – the face, not just of the rising consumption of clothes around the globe, but also of the true cost of cheap, ready-to-wear garments that we are quick to buy and discard.
The heaps of toxic foam that engulf the Yamuna, for large parts of the year, are linked to the phosphate content of detergents in the wastewater of cloth manufacturing units. Several such units are scattered all over the northern Indian state of Haryana, which borders Delhi. In the small town of Panipat alone there are hundreds of dyeing units, and many of these units release toxic waste into the river.
Drains that carry these effluents run through villages, polluting their potable water. Until recently locals would use the water, despite it being variously coloured with chemical dyes, but now they claim it is not even fit to use for their cattle. This state of affairs has serious repercussions for the majority of Haryana’s population because they depend on agriculture for their livelihoods. Farmers are finding it increasingly difficult to cultivate crops that have been traditionally grown in the state with the scant usable water that is available.
Thousands of these same farmers have joined what has been called the biggest protest in world history. Their immediate demand is that the government rolls back laws, which they claim favour large corporations over small farmers. But these laws are simply the proverbial last straw – the agricultural sector in India has long been in distress and water scarcity is one of its most pressing problems.
While farmers have been greatly affected by toxic waste from dyeing units, they are not the only ones. In 2019, the Delhi state government had to shut down supply from sizeable water treatment plants because the level of ammonia generated by industrial waste was higher than what they could treat. This did not solve the problem, either. For more than 33 days in 2020, the level of ammonia in water remained above treatable levels, directly impacting over a third of Delhi’s water supply.
It is a well-known fact that water stress in India is extremely high: 50 percent of the country’s population is deprived of access to safe water, and even for the rest, both surface and groundwater are running out rapidly. Unsurprisingly, alarms have been raised about India’s water scarcity around the world, including in a report by the US-based World Resources Institute that ranks it 13th among the world’s worst affected nations. What is, perhaps, lesser known is how India’s garments and textile industry is adding to this stress and the role that global fashion brands are playing in precipitating the water crisis.
The last decade has seen the meteoric rise of what has come to be known as “fast fashion” – retail brands producing inexpensive knock-offs of runway trends and fostering a culture of consumption where affordable and trendy clothes are bought and discarded in quick succession. Social media fuels the demand for fast fashion through influencers, easy e-commerce, and a culture of wearing clothes for the ‘gram.
But the key to sustaining this nearly $2.5 trillion fast fashion industry is that the volume of clothes produced and sold should be high, and prices low. Low prices are achieved by keeping production costs low and low production costs, in turn, come at the expense of environmental protection and workers’ rights.
Countries in which most of these retail brands are based, however, have developed strict regulatory frameworks with respect to pollution and labour rights. So, they outsource production to countries such as India, China, Bangladesh and Indonesia, where labour and compliance costs are far lower. And for a small share of the enormous profits generated by the fast fashion industry, these countries end up paying a heavy price – including the erosion and pollution of their water resources.
India exports garments, fabrics and raw materials for clothing, footwear and headwear, and every stage of production, for each of these items, is heavily dependent on the consumption of water.
Take the example of Indian cotton, which is in great demand because it is, on average, the cheapest in the world market. This year alone, cotton exports are predicted to go up 40 percent in comparison with the previous year. But cotton, unfortunately, is also a very thirsty crop, requiring up to 22,500 litres of water for the production of merely one kilogramme – roughly the quantity required to make one T-shirt and one pair of jeans.
In addition to consuming inordinate amounts of water, the garment and textile industry further exacerbates water scarcity by contributing substantially to water pollution. Tiruppur in the southern state of Tamil Nadu is known for its garment production for global fashion brands, recording some $3.5bn worth of exports every year.
Stories from villages around this hub echo the stories from Panipat and other textile and garment hubs in the country. Untreated wastewater from dyeing and bleaching units have transformed the Noyyal river into a toxic sewer and rendered the agricultural land around Tiruppur largely unproductive, taking away the livelihoods of thousands of farmers.
Some of the wealthier farmers in the area have taken to mining water in desperation but with each passing year, they have to dig deeper to access water. In 2003 the water level on average was 304 metres (1,000 feet) under the ground but it has been dropping at the rate of 15 metres (50 feet) per year. They know that they have to make as much money as they can before the water runs out, and the cruel twist in the tale is that they sell the water they mine to the very dyeing and bleaching units that have rendered vast swaths of their lands barren, taking away their primary livelihood.
More grievous, perhaps, than the effects of the textile industry’s wastewater on human livelihoods, is its impact on human health. In the state of Madhya Pradesh, sections of the river Chambal, downstream from a viscose manufacturing plant, turn black with streaks of red and produce an unbearable stench. In addition, large quantities of viscose rejects that are dumped on the bank are washed into the river during monsoons. It is no coincidence that those who live around this stretch of the river often suffer from cancers and birth defects.
These ailments and several others have been linked to the chemicals used in the production of viscose. Concerns have also been raised about the link between viscose production and deforestation because it is made out of wood pulp. But, even so, as a cheaper alternative to silk, viscose remains the lifeblood of the fast fashion industry. And 83 percent of the world’s viscose is sourced from India, China and Southeast Asia.
These cases from Panipat, Chambal, Delhi and Tiruppur are not isolated instances – stories of depleted water resources, toxic water pollution and the horrifying consequences of both, abound across India in pockets where products that are part of the global supply chain of fashion are made. Why then, one might ask, have the country’s regulators not clamped down on the practices of units that are endangering lives in more ways than one?
For one, India needs the jobs generated by the industry. The country is short of at least 100 million jobs for its burgeoning youth population and the textile and garment industries, being labour intensive, generate substantial employment. But in order to generate and retain these jobs, producers, as well as policymakers, need to ensure that fashion brands do not move production to other countries that compete for these jobs, particularly Bangladesh, which has multiple advantages over India, including economies of scale, lower wage rates, and tariff exemptions from China and the European Union.
This necessitates keeping the costs of production as low as possible and on this account, governments routinely face pressure from the market to go easy on the creation and enforcement of environment and labour regulations. The situation is made worse by rampant corruption, collusion and moral hazard – fines as well as bribes solicited for violations are eminently affordable in comparison with potential profits.
Dystopian scenes in Mumbai, India’s financial capital, bear testament to the state of India’s regulatory regime. Despite activists flagging concerns and lodging complaints, the river Waldhuni, which supplies water to the Mumbai Metropolitan Area, routinely runs red with dyes from textile industries, and blue dogs, afflicted by indigo dyes, have been known to roam the city’s streets.
On the rare occasion that there is a sincere attempt to enforce regulations, they are easily circumvented. Take, for instance, the curious case of Shiv Vihar – an area in Delhi, that had earned the epithet of “cancer colony” thanks to the hazardous waste emitted by its jeans dyeing units. Taking cognisance of places such as Shiv Vihar, the Supreme Court of India ordered the closure of all polluting industries in Delhi.
But the inhabitants of Shiv Vihar, who are engaged in the dyeing trade, found a loophole – the colony is on the border Delhi shares with the state of Uttar Pradesh, so, if they moved slightly, they would technically be outside the city limits and therefore no longer bound by the order.
On cue, the polluting units were surreptitiously moved by a couple of streets. When activists brought this to the attention of regulators, the latter said that since these units now no longer exist on paper, they could not be shut down because in order to issue notice to them, the regulator would first have to regularise them. In this manner, blue dyes, in the hues of the latest trends off the runways in New York and Paris, continued to flow, and wreak havoc, from the drains of Shiv Vihar.
This Kafkaesque tragedy begs a larger question – why would the workers of Shiv Vihar defy an order that was in the interests of their own health and safety? Why would they continue to work in deplorable conditions, handling toxic chemicals with bare hands, for the small sums of money they earn in dyeing units?
The answer is simple: if the units shut down, alternative means of livelihood would be hard to come by and they would run the risk of starvation and utter deprivation. The choice they face is between immediate and long-term despair, which is not much of a choice.
The COVID-19 pandemic has exacerbated this situation. Facing cancellations of export orders from global brands, the industry has been struggling for survival and laying off workers, often without due process. To make matters worse, the Indian government – partly in a bid to encourage local manufacturing and partly due to the recent military standoff with China – has raised tariffs on imports, thus adding to the financial pressures faced by an industry that relies heavily on imported raw materials.
In these circumstances producers, who prioritise profits over the greater good even at the best of times, are even less likely to follow stringent regulations. And workers, facing an acute financial crisis, are even more likely to take up hazardous and punishing jobs.
In order to ameliorate this situation, policymakers have to urgently address multiple dimensions of the problem at once. Fashion brands, too, need to rethink their production templates and embrace scientific innovation, ethical practices and greater transparency, instead of simply investing in marketing campaigns that seek to greenwash their wrongdoings. But the buck finally stops at us – the consumers.
We may not have the power that policymakers and big corporations hold but we certainly have more choice than marginalised people from less-developed countries who are forced to bear the brunt of the toxic by-products of the fashion industry.
We have the choice to think about the true cost of an item on sale, over and above the attractive sum listed as its marked-down price; to ask ourselves some hard questions about what we consume and how much; to find ways to hold both governments and brands accountable for their interventions, or the lack of them; and to refuse to let the seductive imagery created to sell fashion obfuscate the stories of the men, women and children knee-deep in the toxic foam of faraway rivers, washing clothes and struggling to eke out a living at great personal cost. If we do not, we are complicit in their ruin.
Source: Aljazeera News
Pakistan’s exports of textile and clothing rebounded in March mainly due to value-added sectors and posted a growth of 30.4 per cent from a year ago, showed data released by the Pakistan Bureau of Statistics (PBS) on Friday.
The export value of these sectors edged up to $1.355 billion in March from $1.039bn over the corresponding month of last year. Growth in exports of value-added sectors contributed to an increase in overall exports from the sectors.
In February, textile and clothing exports shrank 3.12pc on a year-on-year basis.
The July-March figures showed that growth in textile and clothing exports came from the value-added sector. The value of exports reached $11.35bn in the July-March period this year as against $10.41bn over the corresponding months of last year, showing a growth of 9.06pc.
The Economic Coordination Committee of the Cabinet has recently allowed import of cotton and cotton yarn from India but the same decision was reversed in the Federal Cabinet.
To address the issue of shortage of cotton yarn for value-added sector, the ECC in its last meeting allowed duty-free import of cotton yarn until June 30, 2021. It will be difficult for the value-added sector to retain the orders in case government did not facilitate the timely availability of cotton yarn in the domestic market.
Product-wise details reveal exports of ready-made garments up by 22.9pc in value, followed by knitwear 49.64pc, bedwear 43.71pc and towels 20.95pc during the month under review. Pakistan and China’s exports of apparel exports posted a substantial growth to United States compared to regional countries during the past few months.
The government has already abolished duty and taxes on industrial raw materials as well as paying off past pending refunds to exporters. The devaluation of the rupee and lower interest rate accelerated industrial growth, especially in the export-oriented industries.
According to the PBS data, the export of cotton yarn posted growth of 39pc in March from a year ago, followed by cotton cloth 8.7pc, and cotton carded 100pc. The export of yarn other than cotton yarn also recorded a growth of 56.87pc during the month under review.
In the non-value-added sectors, exports of tents, canvas dipped 34.09pc followed by raw cotton by 100pc. However, the export of art and silk increased by 32.72pc, made-up articles excluding towels, bedwear 12.48pc and other textile products 41.03pc during the month under review.
The overall exports in March up by 30.62pc to $2.36bn in March 2021 against $1.81bn over the corresponding month last year.
Between July and March, the overall exports reached $18.68bn as against $17.44bn over the corresponding months of last year, indicating a growth of 7.13pc.
In the nine months of this fiscal year, the import of textile machinery posts a paltry growth of 7.72pc. This indicates that the industry has started importing textile machinery as part of modernisation or expansion in the sector.
To bridge the shortfall in the domestic sector, the industry imported 624,945 tonnes of raw cotton between July to March against 338,244 tonnes last year, showing an increase of 84.76pc. Similarly, the import of synthetic fibre posts growth of 52.29pc as industry imports 346,254 tonnes this year as against 227,365 tonnes.
The import of synthetic and artificial silk yarn stood at 316,656 metric tons this year as against 210,810 metric tons last year, showing an increase of 50.21pc. The import of worn clothing recorded a growth of 55.22pc to 487,107 tonnes this year as against 313,818 tonnes last year.
Source: The Dawn
Ralph Lauren, a US-based fashion company, has unveiled team US closing ceremony parade uniforms and apparel collection for 2020 US Olympic and Paralympic teams. The company has developed and invested in ground-breaking innovations in sustainable materials and manufacturing technologies that will debut with this collection and will have global implications.
“Following a year marked by isolation and strife, this summer’s games are a true testament to the resiliency of the human spirit and the universal power of sport to energise and unite the world,” David Lauren, chief innovation and branding officer and vice chairman of the board, said in a press release. “As we come together to celebrate and compete, we must also embrace our responsibility to protect the planet we all call home. As part of this, we are proud to continue to invest in and scale sustainability innovations — dressing our nation’s best and brightest athletes in timeless clothing that has been consciously created.”
As part of its recently announced Color on Demand platform, Ralph Lauren partnered with Dow to optimise the use of Ecofast Pure Sustainable Textile Treatment, an advanced pre-treatment solution for more sustainable cotton dyeing that significantly reduces the amount of water, chemicals and energy used compared to traditional dye processes and will be utilised within cotton products in the team US apparel collection.
Mirum is a revolutionary leather alternative material made from renewable resources that include plant-based materials and agricultural by-products and is a solution that is free of synthetic plastics. The Mirum Olympic Patch was developed in partnership with Natural Fiber Welding, a leading sustainable material science company that Ralph Lauren recently invested in, that has revolutionised the use and reuse of plant fibres and materials into patented, high-performance materials.
Team US’ closing ceremony uniform is a fresh and sporty all-American look and includes a graphic white drawstring jacket and striped belt made from Repreve recycled polyester derived from plastic water bottles; a classic white Polo shirt, shoes and mask made from verified US grown cotton; and a slim white denim pant with a Mirum back-patch. Each item in the uniform is proudly manufactured in the US.
The Ralph Lauren 2020 team US collection includes bold graphics, stripes, and colour-blocking done in a spirited palette of red, white and blue. Selections from the collection will be available for purchase beginning on April 14 on RalphLauren.com; and in June in select Ralph Lauren retail stores, select US department stores and online at TeamUSAShop.com.
Ralph Lauren is proud to be an official outfitter of team US since 2008. All revenues from the sales of the Ralph Lauren team US collection support team US, and the brand is proud to do its part to help ensure the success of US Olympic and Paralympic athletes in this year’s games and beyond.
Source: Fibre2Fashion News
The import of dressing gowns by the USA buyers has remained positive in the first 2-month period of 2021, as per data released by OTEXA.
The country imported US $ 80 million worth of dressing gowns in Jan.-Feb. ’21 period, marking 1.88 per cent growth on Y-o-Y basis.
60 per cent of this total value was contributed by China and Vietnam together. China shipped US $ 35.84 million worth of dressing gowns to USA in the mentioned period, noting 7.59 per cent yearly growth.
On the other hand, Vietnam got severely affected as its shipment of the commodity dropped massively by 40 per cent to US $ 12.77 million in the review period.
Next in line were Cambodia, Turkey and India with shipment value of US $ 9 million, US $ 4.12 million and US $ 4.86 million, respectively. All three countries upped their respective exports of dressing gown to USA by 77.23 per cent, 52.34 per cent and 8.54 per cent on Y-o-Y basis.
By analysing data, it seems that Bangladesh has significantly started tapping dressing gown market of the USA as former has seen 157.60 per cent yearly growth of its shipment to latter in Jan.-Feb. ’21 period, valuing US $ 4.33 million as compared to US $ 1.68 million in Jan.-Feb. ’20.
Source: Apparel India
Vietnam's textiles-garment and leather-footwear sectors are facing a new threat—that of mergers and acquisitions (M&A) by foreign investors. A recent study of COVID-19’s impact on key export-oriented industries in Vietnam found that instances of M&As have surged in the textiles-garment, leather-footwear and electronics sectors in the last three years.
In 2018, Japan’s Itochu Corporation purchased 10 per cent of the shares of the Vietnam National Textile and Garment Group (Vinatex) at a reported $47 million. Itochu raised its stake to about 15 per cent, thus becoming the second-largest shareholder after the ministry of Industry and Trade (MoIT).
Other major M&A deals include the one between the Taekwang MTC Vietnam Co Ltd and the Jin Heoung Vina JSC in the leather-footwear industry. Korean investors, who have inked a number of M&A deals, have concentrated on sectors like textiles-garment and leather-footwear, besides electronics.
Experts have called for streamlining legal regulations, especially those on information transparency like setting up a regular consultative mechanism between the MoIT and the ministry of planning and investment to develop an M&A database that would protect the interests of all sides.
Vietnamese enterprises should proactively diversify technical solutions to keep the information transparent, identify the targets in M&A deals, and analyse partners to avoid risks during negotiations, they have said.
Vietnam’s textiles-garment industry is known for its low labour costs, and has been identified as one of six sectors on a list of supporting industry products prioritised for development. Vietnam is now known as the “footwear factory” of the world, and has also been establishing itself as the world’s electronic manufacturing hub.
Source: Fibre2Fashion News
Banana is one of the most important commercial tropical fruits traded. Besides fruit, banana plants also produce giant stems as tall as a person that will never grow again. After the harvest, banana stems are usually discarded as waste.
TexFad, a Ugandan company, is turning this waste banana pseudo stems and other waste materials into high-quality, sustainable textile products. The startup, founded by Kimani Muturi, extracts the fiber from parts of the banana tree’s trunks that can be used to produce environmentally friendly products such as textiles, carpets, biodegradable hair extensions.
The banana tree trunks are first split in half with machetes and fed into a cutting machine. The machine then transforms these trunks into long, leathery fibers that are hung on lines to dry before being processed and used to make high-quality eco-friendly products.
Muturi explains his company is experimenting with various uses of banana fibers, producing carpets, and market-testing hair extension products. “The hair extensions we are making are highly biodegradable,” he told Reuters. “After using, our ladies will go and bury them in the soil, and they will become manure for their vegetables.”
He believes that the material could replace some synthetic fibers and be used to make paper products like bank notes among a range of possible applications. TexFad is currently researching ways to soften banana fibers so that they can be used to produce clothing.
The company expects to produce 2,400 carpets by the end of 2021. It also plans to start exporting products to the US, UK, and Canada in June.
TexFad isn’t the only company to use banana waste to develop eco-friendly products. Researchers from the University of New South Wales (UNSW) in Australia, have developed a novel method to turn banana plantation waste into biodegradable and recyclable packaging material.
Source: Inceptive Mind News
Cotton exports from Benin, the largest cotton producer in Africa and a top cotton exporter, are expected to surge in the first eight months of the current year. President Patrice Talon's re-election for the 2nd term this month, and China's help to Beninese farmers in improving their farm productivity are the main reasons for this likely increase in exports.
In 2019, Benin exported cotton worth $144.39 million with monthly average of $12.03 million. Last year, exports declined by 63.21 per cent year-on-year to $53.12 million as COVID-19 restriction hampered trade. However, exports are forecast to surge by 74.73 per cent during January-August 2021 to monthly average of $7.73 million from monthly average of $4.43 million in 2020, according to optimistic forecasting carried out using Fibre2Fashion's market intelligence tool TexPro.
The bilateral relations between Benin and China have been improving. China is supporting the West African nation to improve productivity of cotton. Some agricultural operators in Benin have joined a one-month training session on Chinese expertise in farm machinery operation.
The re-election of Patrice Talon, a tycoon of cotton business in the country, as Benin's President will also benefit the country in its cotton exports.
Source: Fibre2Fashion News
Industry chiefs and strategic experts on Monday were unanimous in their view that UK Prime Minister Boris Johnson cancelling his visit to India next week was the right move, given the COVID-19 pandemic situation, and expressed confidence that it was unlikely to affect the momentum behind an enhanced UK-India trade partnership.
Johnson told reporters that he had spoken to Prime Minister Narendra Modi and concluded that the visit planned for April 25-26 would "very sadly" have to be called off.
The two leaders are now expected to connect virtually to sign off a much-anticipated 'Roadmap 2030' as a blueprint for the next decade, on the road to achieving a free trade agreement (FTA) in the future.
Lord Karan Bilimoria, president of the Confederation of British Industry (CBI), said the vision would be to quadruple bilateral trade during that period and that should not be affected by the discussions being conducted virtually instead.
"Although it is disappointing, the mutual decision to postpone the PM's visit to India is the right one," said Bilimoria, founder of Cobra Beer.
"We must now look to maintain momentum; businesses are still hopeful that an enhanced trade deal with India is on the horizon - an ambitious agreement that bolsters our two-way trading relationship across many sectors and is forecast to quadruple bilateral trade to 100 billion-pound by 2030. This is a key moment for a transformed UK-India relationship, boosting UK-India trade to new heights," he said.
The Confederation of Indian Industry (CII) was equally upbeat about the bilateral relationship, despite the visit being cancelled due to a spike in coronavirus infection rates in India linked with a new variant.
"Given the prevailing COVID situation in India it is only right that Prime Minister Johnson's visit has been postponed," said Jim Bligh, Chair of the CII UK-India Business Forum.
"Business knows that the hard work of negotiating an enhanced trade partnership is going on regardless, and we look forward to that important document being signed. As the UK and India embark on an ambitious new trading relationship, there will be many more opportunities for both nations' leaders to meet in safer times," he said.
London-based think tank International Institute for Strategic Studies (IISS) pointed to the recently released Integrated Review by the British government, which had categorised India as a "key pillar" of the UK's foreign policy shift, and concluded that the last-minute change of plans would not have an impact on that base strategy.
"Disappointing that the visit has been cancelled, but it does not disrupt the UK's new foreign and security post-Brexit priority given to India as a 'key pillar' of the UK's tilt towards the Indo-Pacific," said Rahul Roy-Chaudhury, Senior Fellow for South Asia at IISS.
"An enhanced trade partnership agreement can still take place. The finalisation of the bilateral UK-India Roadmap 2030 - expected at the virtual summit next Monday - prioritises defence and security ties as one of five key subjects for the transformation of bilateral relations. Bilateral maritime security cooperation will be a highlight of these interactions," he said, adding that a "high-visibility" implementation of the proposed 2030 roadmap would maximise its impact.
British Indian entrepreneur Dr Nik Kotecha OBE, Founder and Chairman of Morningside Pharmaceuticals, echoed similar views on the Indo-Pacific tilt and stressed on the healthcare sector as a particular focus area.
"Last month's integrated review by the UK government highlighted the Indo-Pacific region as a priority. UK-India trade is already worth 23 billion pounds in 2019, and supports around half a million jobs in each other's economies. Pharma and healthcare are particular sectors of strength," he said.
According to some details of the prime ministerial visit released last week by the Indian government, the 'Roadmap 2030' plan for UK-India ties is aimed at a revitalised and dynamic connect between people; re-energised trade, investment and technological collaboration; enhanced defence and security cooperation and closer engagement on regional issues - including the Indian Ocean Region and the Indo-Pacific.
The India-UK Partnership in Climate Action, clean energy, healthcare and building on a successful vaccine collaboration to combat COVID-19 and other pandemics were also highlighted as being priority areas for the visit, which will now take place virtually.
Source: The Economic Times
After significantly decreasing in the previous month, cotton prices in Brazil were firm again in early April. The CEPEA/ESALQ Index changed from the record 5.22 BRL per pound on March 4 to 4.76 BRL/pound on April 5. Since then, the Index has been recovering, the Center for Advanced Studies on Applied Economics (CEPEA) said in its latest fortnightly report.
Between March 31 and April 15, the CEPEA/ESALQ Index for cotton rose 1.05 per cent, closing at 4.8593 BRL/pound on April 15.
During the fortnight, sellers were focused on international price rises and estimates of lower production in Brazil and a possible export record. Therefore, they were firm in the first fortnight of the month, which sustained prices. Moreover, some of these players expect a demand increase in the coming periods, given that the cotton industry has not been purchasing the product for immediate delivery since early March, the report said. "As for the demand, only purchasers who have short-term requirements and/or are willing to replenish inventories are operating."
Meanwhile, Brazil's National Food Supply Company (Conab) indicated that the 2020-21 cotton area may total 1.41 million hectares, 15.2 per cent down compared to 2019-20. Productivity is forecast at 1,764 kilos per hectare, a decrease of 2.1 per cent compared to the previous season. Thus, production is likely to amount to 2.49 million tons, a sharp 16.9 per cent down compared to the previous crop.
A report released by the US department of agriculture (USDA) on April 9 said Brazil's cotton inventories for 2020-21 are forecast at 2.7 million tons, down 13.7 per cent from the previous season's inventory.
Source: Fibre2Fashion News
