The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 28TH APRIL 2021

NATIONAL

INTERNATIONAL

Cotton yarn prices drop as Covid second wave hits demand

Cotton yarn prices have dropped from the peak seen at the beginning of this year and could decline further from May 1 when a revision in rates is due owing to slack demand.

“Prices of almost all counts of yarn have dropped by at least ₹10 a kg as demand is low due to the second wave of coronavirus. Production in textile mills has dropped and it is impacting yarn offtake,” said Rajkot-based trader Anand Poppat, a trader in raw cotton, yarn and spinning waste.

“Last six months were a good period for Indian spinning mills because there was a huge shortage of cotton yarn due to last year’s lockdown (to tackle Covid) and huge demand for yarn came from domestic and international markets. So, spinning mills performed well.

“But again the problem has slowly started due to the increase of Covid cases and many States have announced lockdowns. This has forced many spinning mills’ workers, who have come from other States, to go back to their villages due to fears of strict lockdown like last year,” said Atul Ganatra, President, Cotton Association of India, a representative body of cotton trade.

Surplus stocks

“Warp yarn prices have dropped by ₹30 a kg as there is surplus. Even weft yarn demand is down due to closure of mills in Maharashtra. From May 1 onwards, prices could drop further,” said K Selvaraju, Secretary-General, Southern India Mills Association (SIMA), the apex body of the textile industry in southern India.

The current trend is in sharp contrast to the price surge witnessed during January-March this year following domestic and export demand.

“There is a total slowdown in demand for yarn. Merchandise exporters are dispatching stocks on hand rather than buying from mills,” Poppat said.

Last year, cotton consumption dropped by 80 lakh bales (of 170 kg) to 250 lakh bales due to the lockdown to tackle Covid from the usual 330 lakh bales, said Ganatra.

Selvaraju said a hue and cry was raised over the spike in yarn prices despite the fact that cotton prices had increased sharply from ₹34,000-48,000 a candy (of 356 kg) in the last 6-9 months.

“Exchange rates have increased, diesel prices have gone up and we were forced to give credit during May-July last year. Whatever the hike in yarn prices, they have gone only to pay the interest for the loans availed of by spinning mills,” Selvaraju said.

Last month, spinning mills had made forward sales of at least two months of their production. “These deliveries are pending,” said Poppat.

Ganatra said the closure of ginning factories across the country has forced cotton growers to wait to sell their produce.

Though over 90 per cent of the cotton produced this year has been sold, there are still farmers who are holding their produce. They had held the stocks back expecting prices to rise during the off-peak arrival season during April-August.

Ginning factories in Gujarat have ended their operations and they are happy getting higher prices for cottonseed derived by processing raw cotton into lint, Poppat said.

SIMA’s Selvaraju said that spinning mills were put under tremendous pressure to bring down yarn prices despite their overheads rising due to a slew of factors.

“The Cotton Corporation of India (CCI) bought cotton at MSP. Still, it cut prices of the current season’s crop by only ₹100 a candy. It cut rates of cotton produced last year by ₹1,100 a candy. And cotton from Gujarat, whose quality was affected, was offered ₹800 lower,” he said.

Lockdowns affect business

Spinning mills have urged the Centre to allow their units to run without any curbs now. Lockdowns in some States have resulted in just one shift being run and production dropping to 25-30 per cent of the capacity, an industry source said.

The second wave of Coronavirus has affected yarn movement over the past 15 days. “A yarn inventory of 15 days has built up,” the SIMA Secretary-General said, adding that the situation could improve once the vaccination of those aged between 18 and 45 years began.

“Workers are more safe in factories. Mills are making arrangements to vaccinate workers within their premises. Once the process begins, all mills will start,” Selvaraju said.

Higher cotton prices

The slowdown in yarn demand comes at a time when cotton prices have gained nearly 13 per cent since the beginning of the year. Prices were up over five per cent last week and nearly nine per cent in the past month.

On Monday, cotton prices rose on dry weather in key growing regions and higher-than-expected demand. Cotton futures on International Continental Exchange for delivery in July increased to 89.84 cents a pound (₹53,000 a candy).

On MCX, cotton futures for June delivery quoted at ₹22,200 a bale or ₹46,490 a candy. Export benchmark Shankar-6 cotton was quoted at ₹45,800-46,200 a candy on Monday, according to Gujarat Cotton Trading Association.

In Gujarat, India’s largest cotton producer, prices at terminal agricultural markets have dropped to below minimum support price level of ₹5,515 a quintal. In districts such as Vadodara, Amreli, Bharuch and Ahmedabad, prices are ruling between ₹5,200 and ₹5,600 a quintal.

Yarn prices headed north after supplies were unable to match demand from December onwards. The mismatch cropped up as garment and fabric manufacturers resumed production operations quicker than the spinning sector.

This results in the yarn inventory with the spinning mills drying up, while the rise in cotton prices compounded the issue.

As regards raw material cotton, there is no concern on its availability. CAI has estimated production unchanged from last year at 360 lakh bales, while the Committee on Cotton Production and Consumption, a body comprising all stakeholders of the textile industry, has pegged it at 371 lakh bales against 365 lakh bales.

Source: The Hindu Business Line

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India’s kidswear exports positive by 2.93% in Feb. ’21

According to Ministry of Commerce and Industry (India), the country has increased its kidswear shipment to US $ 108.41 million in Feb. ’21 as compared to US $ 105.32 million in Feb. ’20. This is an increase of 2.93 per cent on Y-o-Y basis.

Of total kidswear exports, the knitted segment continued to remain positive by 5.50 per cent and clocked US $ 83.19 million in the second month of 2021, while woven kidswear products yet again declined by 4.72 per cent on Y-o-Y basis to US $ 25.22 million in Feb. ’21.

India witnessed growth in its top market USA; however, the exports of kidswear dropped in other big markets UAE, Germany and UK.

On one hand, India’s woven kids clothing dropped overall, while Nigeria, on the other hand, emerged as a potential export destination for India in the segment with US $ 3.56 million worth of export value in Feb. ’21 which was just US $ 10,000 in Feb. ’20.

Source: Apparel India

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Confusion prevails over textile market closure

Confusion prevailed in the business community in Surat especially among the textile traders as two different associations made their own announcements on Tuesday evening over keeping the markets shut.

Following an order from the home department of the state government, the Federation of Surat Textile Traders Association (FOSTTA) made an announcement that all textile markets in Surat will remain closed from Wednesday till May 5. The announcement mentioned that the decision has been taken following the notification issued by the home department to control the spread of Covid-19.

On the other hand, Surat Mercantile Association (SMA) asked traders not to fall for rumours. A release of SMA said that its president Narendra Saboo talked with the mayor Hemali Boghawala and standing committee chairman Paresh Patel who told him that authorities have not asked anyone to keep markets closed.

Source: The Times of India

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MSMEs operating with 50% workforce

City-based micro, small and medium scale enterprises (MSME) have claimed that the workforce reporting for duty has shrunk to less than 50% over the past few days, despite the state government assuring them that all factories would be allowed to function properly through the weekend curfew.

In an order issued on April 21, the state home department said, "In view of the decision that there should be a weekend curfew imposed from Friday evening to Monday morning, we have also taken the decision that no factories, cottage industry or small-scale industry will be stopped from operating during these days." The order was issued by additional chief secretary (home) Awanish K Awasthi.

However, Rajiv Bansal, president of the Indian Industries Association (IIA), said that the attendance of workers in factories has been steadily going down over the past few days. "We are following the government order and work is in progress, however, the attendance has dropped drastically. We have less than 50% people working in various factories, and it may further go down in the days to come."

The IIA had earlier appealed to the state government to prioritise the vaccination of factory workers, and that too, free of cost. "If industries have to run optimally, the workforce will have to be given a safe environment, and many are leaving out of sheer fear," Bansal added.

Members of Bharatiya Mazdoor Sangh (BMS) said they have already urged the Union government to counsel the migrant workers to stay back.

Source: The Economic Times

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Textile Minister urges apparel sector to vaccinate workers and staff

Union Textiles Minister Smriti Irani has called for vaccination of apparel sector workers and acting on this Apparel Export Promotion Council (AEPC) has asked its 8,000 plus member exporters to get their workers and staff vaccinated soon.

The Government has clarified that CSR funds will be allowed for setting up makeshift hospitals and temporary Covid care facilities.

AEPC issued a circular making the request based on a resolution passed in the Council’s 267th Executive Committee meeting held a day after the Minister suggested AEPC to take the initiative in support of India’s vaccination drive.

In a virtual meeting with Dr. A. Sakthivel, Textiles Minister said that all the workers and staff working in the apparel factories should get vaccinated at the earliest.

It is worth mentioning here that so far few of the apparel manufacturers have come forward in this regard and started vaccination drive in their premises. The cost of vaccination in majority of such initiatives is borne by the Government and not apparel manufacturers.

However, few apparel export companies are also supporting local administration as they have donated beds for Covid hospitals.

“AEPC requests all its members to get their workers/staff COVID-19 vaccinated at the earliest and also requests them to use their CSR funds for setting up makeshift hospitals and temporary Covid Care facilities,” said Dr. A. Sakthivel, Chairman, AEPC.

He further said that with an aim to support this initiative of the Minister of Textiles and Government of India, AEPC has asked its member exporters for carrying out vaccination of apparel sector workers, adding that the industrial establishments would be able to procure vaccine doses from the manufacturers.

The industries are mandated to follow all protocols such as being captured on CoWIN platform, linked to AEFI (Adverse Event Following Immunization) reporting and all other prescribed norms, as per the Government’s guidelines on the Phase 3 strategy of the National COVID-19 vaccination programme.

The industries have been instructed to coordinate with their respective state health departments for carrying out the vaccinations at their factory premises.

Source: Apparel India

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The remarkable evolution of the cotton textile industry

The latest in global cotton trends

Cotton production globally is projected to register a Compound Annual Growth Rate (CAGR) of 4.1% during the period from 2021 to 2026. The impact of the Covid-19 pandemic has reduced the demand for cotton to 11%. Moreover, the ongoing worldwide restrictions have also served as the death knell for many ginning mills that supplied to western clothing brands, as orders were put on hold indefinitely, or cancelled altogether. These unfortunate events have also affected cotton plantation markets in India and Bangladesh.

According to an analysis done by Mordor Intelligence, based on their market summary of the decade from 2016 to 2026, and predictions based on the year 2020, with economic and logistic constraints all over, the global cotton trade is experiencing a massive downturn, hitting every link in the global supply chain.

On the other hand, the focus of many fashion summits in 2021 was finding solutions to bridge the gap between fashion and sustainability. Discussions happened around finding a suitable substitute for cotton, such as hemp, which requires much less water and chemicals while farming and helps to encourage sustainable environmental solutions.

One of the reasons why this was a hot topic on the table was the fact that cannabis is officially legalized in many countries for its medicinal properties. Furthermore, it has been observed that hemp farming is helping global environmental initiatives. Thirdly, as organic hemp-based fabrics are proving to be more affordable, the future prospects of cotton – the king of Indian fabrics – are being questioned.

What is cotton?

With the scorching summer heating everything around us, we all prefer skin-soothing textiles for our daily use in this season. For centuries now, cotton has been unwaveringly holding its own when it comes to clothing the people living in hot climates.

By definition, cotton is a soft, staple fiber that grows in a protective capsule known as boll, around the seeds of the cotton plant. The fiber is spun into yarn and used to make soft, breathable fabric, which is the most widely used form of textile for clothing in the world. Statistically speaking, cotton provides about 50% of the world’s textile fibre. It is grown in 35 countries across the world, and its total production is calculated around 900 million metric tons. The current biggest cotton producers are India, China, the USA, Pakistan, and Brazil.

Indian cotton assortment

India is known for farming one of the genetically purest species of cotton. Our country particularly farms three types of cotton, classified on the basis of length, strength, and structure of the fiber: Long staple cotton, medium staple cotton, and short staple cotton. Different types are obtained from 9 actively trading states in cotton in India such as Maharashtra, Gujarat, Andhra Pradesh, Punjab, Haryana, Rajasthan, Tamil Nadu, Karnataka, and Madhya Pradesh. Another type of good-quality indigenous cotton, culturally popular for centuries, known as Kala cotton is being developed further to become more refined and versatile with the demands of today.

In India, cotton is grown in three distinct agro-ecological zones: central, south, and north. But, weather changes, increase in global warming, and the resulting irregularities with rains and irrigation supplies make it very hard to predict the overall impacts of climate change on cotton production. Large-scale commercial cultivation of high-yielding hybrid varieties in long and extra-long staple cotton has already been commenced, showing that the cotton textile industry in India is resilient. In spite of the setback of last year, cotton yields have displayed fair growth, and India especially is not letting up any signs of major changes in cotton cultivation patterns.

The 'khadi spirit' means fellow-feeling with every human being on earth. It means a complete renunciation of everything that is likely to harm our fellow creatures, and if we but cultivate that spirit amongst the millions of our countrymen, what a land this India of ours would be! And the more I move about the country and the more I see the things for myself, the richer, the stronger is my faith growing in the capacity of the spinning wheel. – M. K. Gandhi

Source: The Times of India

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TRA warns of ‘difficult decisions’ for textiles sector

The comments from Alan Wheeler came as resources charity WRAP formally unveiled its voluntary Textiles 2030 this week (26 April), which aims to slash  the impact that textiles have on the environment over the next decade.

Textiles 2030 has a string of household names such as Asos and Primark signed up with the two environmental aims focusing on water and carbon reduction.

This will sit alongside targets to ensure more clothes are sold for reuse then new and “more circular raw material is in new products than linear raw materials” by 2030.

However, TRA director Alan Wheeler warned that in order to do this, the sector will have to make difficult decisions on how to reduce the consumption of new clothing and collect more used textiles, while also keeping the fashion industry “financially viable”.

The TRA also claimed that with the UK Government confirming its intention to consult on an Extended Producer Responsibility (EPR) framework for clothing and textiles in 2022, the re-use and recycling industry is set to go through “major changes” over the next few years.

‘Not an option’

Mr Wheeler explained: “Some people have yet to realise that we must reduce textile production and we all need to send all our clothing and textiles for re-use and recycling when we no longer want it. To keep on increasing textile production is simply not sustainable and not an option.”

“Governments throughout the world need to change their mantra from supporting jobs in textile production to supporting new jobs in the textile recycling industry.  Instead of promoting conventional textile production, I would like to see the default position shifted so that all new production uses set minimum levels of recycled fibres in their new textile products as and when it becomes practical and economic to do so”.

SCAP

The Textiles 2030 comes after WRAP’s SCAP 2020 programme missed its target for waste reduction.

While targets were met for reducing water consumption and carbon, the amount of textile waste being sent to landfill or incineration fell 4% since the 2012 launch, WRAP said, against a target of 15%.

A direct waste reduction target hasn’t been set for 2030.

EAC

The warning from Mr Wheeler comes the day before the Environmental Audit Committee is set to hold an evidence session to examine Textiles 2030 tomorrow (28 April).

WRAP, as coordinators of the scheme, will be appearing on the first panel of the session alongside representive from retail chain, Primark.

The second panel will discuss the EPR scheme for textiles, and how it can be designed to support the initiative and incentivise sustainable design within the fashion industry.

Wrap

Upon the launch of the scheme, Wrap  unveiled a Textiles 2030 roadmap which includes targets for carbon reduction.

Numerous brands have signed up to the programme, including ASOS, Boohoo, Dunelm, John Lewis, M&S, New Look, Next, Primark, Sainsbury’s, Ted Baker, Tesco and The Salvation Army.

Marcus Gover, CEO of WRAP said: “Textiles 2030 will create a fashion sector fit for the future and lower the environmental impacts of other household textiles. This is just the beginning of a decade long programme and we need more companies to show their commitment to their customers through Textiles 2030.

“With clothing having the fourth largest impact on the environment after transport, housing and food we simply cannot afford for sustainability not to be the next big thing in fashion.

Source: Letsrecycle.com

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INTERNATIONAL

UAE apparel, home textiles & fabric exports to rise in 2021

The exports of apparel, home textiles and fabrics from the United Arab Emirates (UAE) are expected to show a notable increase in 2021 with continuous rise in overseas and domestic demand. Progress of vaccination drive, Expo 2020 Dubai, government incentives, increased e-commerce spending and sharp growth of digitalisation are expected to push exports.

UAE’s apparel exports in 2019 stood at $142.60 million with monthly average of $11.88 million. This figure moved down to $122.76 million in 2020 with fall of 13.91 per cent, due to the impact of COVID-19 pandemic. It is expected to increase to monthly average of $10.55 million during January-August 2021 from monthly average of $10.23 million in 2020.

UAE’s home textiles exports in 2019 were $131.00 million with the monthly average of $10.92 million. The figure rose to $136.16 million in 2020 with slight rise of 3.94 per cent despite the impact of COVID-19 pandemic all over the world. It is further expected to boost to monthly average of $13.03 million during January-August 2021 from monthly average of $11.35 million in 2020 with an increase of 14.83 per cent.

Fabrics exports of the country in 2019 remained at $76.22 million with monthly average of $6.35 million. This figure declined with a higher rate of 45.80 per cent to $41.31 million in 2020. But it is further expected to boost to monthly average of $4.61 million during January-August 2021 from monthly average of $3.44 million in 2020, showing a rise of 33.99 per cent.

Around 40 per cent of the UAE population has already been vaccinated against COVID-19, and this has given a boost to the country's trade. The Expo 2020 Dubai which is scheduled to start on October 1, 2021, is anticipated to further stimulate the textiles and apparels trade of the country.

In addition to these, the UAE government has provided an incentive to business sectors at the federal and local levels. The UAE led the Middle East and North Africa (MENA) region for spending on e-commerce which is approximately double the global average and four times the average spending in MENA region. Further, the sharp growth of digitalisation during COVID-19 has created new trade opportunities for the country.

The UAE government’s export credit company ECI (Etihad Credit Insurance) recently signed an MoU (memorandum of understanding) with ECGC (Export Credit Guarantee Corporation) of India to explore and boost trade and economic cooperation between two nations.

Meanwhile, the International Federation of Indo-Israel Chambers of Commerce (IFIICC) has planned the business collaborations of two nations including Israel and India through IFIICC’s leadership across different sectors. According to Ilan Sztulman Starosta, head of the Israeli mission in Dubai, the collaboration backed by Israeli innovation, UAE’s visionary leadership and strategic partnership of both nations with India may boost the trilateral trade among the nations and may cross the mark of $100 billion.

Source: Fibre2Fashion News

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‘Made in Bangladesh’ apparels constitute 59% of India’s import in Feb. ’21

According to the data released by Ministry of Commerce and Industry, India’s apparel import reached US $ 60.39 million in Feb. ’21, noting 6.43 per cent Y-o-Y surge.

Of total imports, knitted clothing valued US $ 37.56 million with a rise of 12.96 per cent in Feb. ’21 over Feb. ’20, while woven clothing import valued US $ 22.83 noting a decline of 2.81 per cent on yearly note.

Bangladesh was the top import destination as Indian buyers imported US $ 35.66 million worth of garments from the neighbouring country, which is a surge of 12.63 per cent.

Notably, Bangladesh constituted around 59 per cent of total India’s apparel import value, beating China which could ship apparels worth US $ 15.71 million (down 16.80 per cent) to India and shared 26 per cent to the total import value.

The data further tells that clothing imports have grown from Spain too which shipped US $ 9.63 million worth of garments to India in Feb. ’21, marking 10.44 per cent yearly growth.

India’s Apparel Imports From the World and Top 3 Destinations

       

Country/Category

Feb ’20

Feb ’21

% Change

61

33.25

37.56

12.96

62

23.49

22.83

-2.81

Total

56.74

60.39

6.43

China

     

61

11.88

11.2

-5.72

62

7

4.51

-35.57

Total

18.88

15.71

-16.79

Bangladesh

     

61

8.17

12.83

57.04

62

23.49

22.83

-2.81

Total

31.66

35.66

12.63

Spain

     

61

3.02

3.74

23.84

62

5.7

5.89

3.33

Total

8.72

9.63

10.44

 

(Value in US $ million)

Source: Apparel India

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COVID-19 2nd wave: B'desh textile companies seek incentives

Amid the second wave of the COVID-19 pandemic, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the Bangladesh Textile Mills Association (BTMA), have urged the government to give incentives to textile companies for paying wages and bonuses to workers.

The organisations wrote a joint letter to the minister of finance on April 24, according to Bangladeshi media reports.

In the letter, BGMEA president Faruk Hasan, BKMEA president AKM Selim Osman MP and BTMA president Mohammad Ali Khokon requested the government to provide loans on easy terms. The money is needed to help garment companies pay salaries, bonuses and allowances for the months of April, May and June 2021.

The exporters are under pressure to pay wages as buyers are reluctant to make payments in the wake of lockdowns imposed in various countries due to the second wave of COVID-19. The Bangladeshi garment sector is in a financial crisis due to order cancellations and delayed payments, as per the letter.

"Bangladesh's garment industry exports garments at a lower price than other countries to maintain export potential in the world market for which profit in this sector is very low. Garment owners are forced to take orders facing loss in most cases. And, employees in this sector are paid after receiving payment from the buyers and incentive for cash assistance," the letter read.

"The exporters now are unable to apply for cash assistance due to non-repatriation of export value. Many buyers are also completing the payment at a discounted rate, making it harder for the institutions to solve the liquidity crisis," it continued.

Source: Fibre2Fashion News

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Cotton futures climb

ICE cotton futures rose to their highest since the first week of March on Tuesday, tracking strength in grains markets.

Cotton contracts for July were up 1.89 cents, or 2.1%, to 91.11 cents per lb by 12:10 EDT (1610 GMT), having hit their highest since March 2 earlier in the session.

Cotton prices got a fillip from other grains, which are in a “very, very bullish situation,” with looming inflation adding support to the natural fiber, Jon Marcus, president of Lakefront Futures and Options brokerage in Chicago, said.

“If corn is going to run, wheat is going to stay in lockstep, and that means cotton is going to come over,” Marcus added.

Chicago corn, wheat and soybean futures extended a rally on Tuesday to eight-year highs, supported by corn supply worries as adverse weather cast doubt over harvest prospects in top exporters the United States and Brazil.

A decline in weekly US wheat crop ratings also kept the focus on weather risks for northern hemisphere wheat.

These gains in cotton are not sustainable and “come May, you will see these prices top out a little bit,” Marcus said.

The US Department of Agriculture’s weekly crop progress report on Monday showed 12% of the total 2021 cotton crop was planted in the week ending April 25, just over the five-year average of 11%.

Source: The Business Recorder

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New UK Project to Make Homegrown Linen Jeans

A new collaborative fashion project in the U.K. aims to launch homegrown jeans made from flax.

Regenagri, the regenerative agriculture group from Control Union, announced last week the launch of Homegrown/Homespun, an initiative to turn unused land in Blackburn, an industrial town located in Lancashire, England, into a field of flax and woad.

The linen spun and woven from the flax, and the natural indigo dye derived from the woad—an ancient source of blue dye—will be used to produce denim jeans in time for the British Textile Biennial in October 2021.

The project is being run by designer Patrick Grant, a judge on the U.K. television show “Great British Sewing Bee” and the founder of Community Clothing, a social enterprise focused on creating and sustaining jobs in the U.K.’s textile regions. The jeans will be part of Community Clothing’s commercial collection.

North West England Fibreshed, a non-profit organization working to rebuild regional manufacturing by developing regional and regenerative fiber systems, and Super Slow Way, a community arts program in Lancashire, are lending their support to the project as well.

The pilot project’s mission is to restore the land around old textile mills and canals in Blackburn, and help increase local biodiversity. Over time, Homegrown/Homespun aims to build communities of fiber and dye growers, processors, makers, repairers and recyclers across the region to produce homegrown textiles and garments in a healthy and regenerative textile ecosystem.

Regenerative farming methods can help decrease the burden of fiber production on the wider environment, said Harry Farnsworth, projects lead for Regenagri.

“The textiles industry accounts for 10 percent of global carbon emissions and the intensive manner that fiber crops are produced in is leading to mass land degradation and decreasing biodiversity on a global scale,” he said. Fibers such as cotton, flax and wool, however, can be farmed ways that enriches the land, and consequently, encourage greener supply chains, better working conditions and employment opportunities. “As more fashion brands are starting to move towards fibers that have been produced in a regenerative way, we are here to support them on that journey,” he said.

In addition to the denim collection, a Homegrown/Homespun linen line will be developed over the following two years and unveiled at the 2023 British Textile Biennial.

The entire process—from harvesting to weaving—will take place in Blackburn and will allow the local volunteers to take part in the “ancient methods of preparing and extracting the linen and the indigo and learning how to spin, weave and dye the cloth.”

“Homegrown/Homespun is an amazing project with far reaching benefits for the environment and nature, for the health and cohesion of the local community, and for the stimulation of a local green economy,” Grant said. “And in doing this we’ll create new habitats for wildlife, soil systems will be regenerated, and we hope hundreds if not thousands of people will engage with nature in a meaningful and positive way.”

The project kicked off last Friday. Organizers are currently looking for volunteers to help with sowing the seeds during the spring and harvesting the flax and woad in the fall.

Source: Sourcing Journal

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Recruitment demand soars in textile & garment, IT sectors

The effectiveness of free trade agreements, especially the EU– Vietnam Free Trade Agreement, has helped to increase export orders for textile and garment enterprises in Vietnam, leading to high recruitment demand in the first and second quarter, according to Navigos Group, a recruitment service provider in Vietnam.

Compared to the same period in 2020, the recruitment demand in this industry has risen by 50 percent to 60 percent, especially for middle and senior management positions.

Textile and garment enterprises are in need of  many positions in both production and commercial office departments in Southeast Asia and Vietnam.

Candidates are required to have working experience in countries in the Southeast Asia region, including Vietnam. However, many Vietnamese candidates meet the professional criteria but lack working experience in the region.

The Federation of Labour and companies in the textile, garment and footwear industries in the southern province of Binh Duong said that many workers are needed.

Representatives in human resources at companies have set up a small booth on an industrial park campus for recruitment, according to Sai Gon Giai Phong (Liberated Saigon) newspaper.

A company in the province’s Dong An Industry Park said that it needs more than 2,000 workers. Its managers have a policy to give bonuses of 1 million VND for staff who can find others to work there. The company also provides allowances for transport and accommodation, and other benefits, to workers. 

According to the Federation of Labour, the province needs more than 4,000 workers as many companies have seen an increase in the number of orders in the first months because of increased e-commerce activity.

Many workers did not return to work after the Tet (Lunar New Year) holiday, it added.

Navigos Group said that besides high demand in the textile and garment industry, some companies in the IT industry this year will have 20 percent to 25 percent more demand compared to 2020.

The first quarter of 2021 saw growth in labour demand at IT companies, especially in outsourcing and product segments, with plans to expand the scope of operations and business.

As financial services enterprises are in the process of digital transformation, there is a very high demand for IT positions.

Recruitment requests from these IT companies often focus on Vietnamese candidates.

The sharp increase in the number of new investors in Vietnam’s stock market in the first quarter has affected recruitment demand at securities firms, according to the Navigos Group.

Positions related to customer relations are being recruited and are expected to increase.

In the first quarter, Navigos Search said that banks had great recruitment demands in the fields of priority customers, technology, legal, compliance, and bancassurance. Technology-related positions are being offered at attractive salaries.

Positions that need candidates from Japan and the Republic of Korea in the insurance industry and in risk management and internal control in the securities industry are difficult to fill because most candidates do not meet the requirements.

Continuing the trend from 2020, overseas Vietnamese candidates in the fields of digital transformation, technology, data and marketing in the financial and banking industry are needed.

According to the HCM City Centre for Forecasting Manpower Needs and Labour Market Information, enterprises in the city need nearly 68,600-73,500 workers for IT, finance-banking and others.

Because of digital transformation and the impact caused by COVID-19 leading to e-commerce development, many enterprises in the city need analysts as well as cybersecurity and software engineers.

Source: Vietnam+

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China, Pakistan discuss ways to enhance B2B matchmaking in textile industry under CPEC

Chinese and Pakistani officials and businessmen on Tuesday discussed ways to advance business-to-business (B2B) matchmaking in textile industry under the China-Pakistan Economic Corridor (CPEC).

Khashih ur Rehman, executive director general of Pakistan's Board of Investment (BOI), said during a webinar that the event will help in advancing B2B ties under CPEC industrial cooperation.

The CPEC industrial cooperation textile B2B webinar was co-organized by BOI, China Council for International Investment Promotion (CCIIP) and China National Textile and Apparel Council (CNTAC). It was attended by senior officials and textile entrepreneurs from Pakistan and China.

"To facilitate B2B matchmaking, the BOI is working on the development of an online B2B portal which will assist potential domestic and foreign investors and serve as a one-stop database of available public and private sector investment projects," Rehman said.

While appreciating the overwhelming support from the CNTAC and China's Ministry of Commerce, Secretary of BOI Fareena Mazhar called for enhanced B2B matchmaking between the Pakistani and Chinese textile enterprises.

"Owing to the sector's financial gains, many international companies including Chinese enterprises are already operational in the country," she said.

Project Director of the Project Management Unit of the BOI Asim Ayub said that B2B joint ventures are intrinsic to the success of CPEC and the special economic zones, and the BOI will extend full support to Chinese investors for successful materialization of their projects in Pakistan.

On the occasion, CNTAC deputy director Xu Yingxin called for enhancing industrial cooperation between China and Pakistan under CPEC, especially in the textile sector.

In addition to analyzing the textile sector of both countries and discussing the investment opportunities, notable textile companies from both sides also presented their projects requiring cooperation and held discussions for potential matchmaking.

Source: Xinhuanet News

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