In the past 25 years, K Rajesh, proprietor of Kay Kay Garments had cultivated a trusted band of clientele across the country. Orders for summer sales trickling in from January, would account for the bulk of this Tirupur medium-scale player business. But this year the orders never came. “The buyers from north India didn’t turn up till March. We hoped they would come in April. But they did not,’’ said Rajesh. Puzzled, Rajesh went to Delhi in April to meet the clients. That’s when he was stumped to fi nd that the clients had switched from cotton to manmade fi bre garments. As the prices of cotton continued to rise, with no signs of a drop even after government efforts, the cost of cotton garments too spiked making them more expensive than ever. The clients made it clear that the customers had no reason to favour cotton garments at high prices, when those made from artificial fabrics like polyester allowed for many more designs at a lower cost. “That’s when we decided to make a transition to manmade fibres,” said Rajesh, whose unit will be rolling out non-cotton products in a month. As cotton prices rose, there was a proportionate increase in the price of yarn and in turn the overall production cost went up. This had a cascading effect and the price of the garments had to be increased by about 50% in the retail market. “While a kg of good quality cotton costs `600, a kg of polyester comes at Rs 200,” said Tirupur Exporters and Manufacturers Association president M P Muthurathinam. “Cotton has now become a high value garment. Garment units in Surat and Ludhiana were not affected due to cotton price rise because they moved to artificial fibre long ago,” he said. Over decades Tirupur has carved a place in the global textile manufacturing map as a hub of cotton garments, but in the past two years, several textile manufacturers have made the transition, albeit partially, to manmade fi bers due to shortage of cotton. Some of the garment manufacturers say up to 50% of their products are from polyester and they would be scaling up the production from artifi cial fibres in the coming months. M K M Senthil Kumar, who runs Maheskumar Mills, which has been manufacturing T-shirts since 1986, says Tirupur has never seen such a transition to man-made fibres in the past. While other textile hubs like Ludhiana, Surat and Vapi have long switched over to artificial fibres, Tirupur stuck to cotton and remained the number one producer of cotton garments followed by Kolkata. “Right now 50% of our products are from polyester. We will scale it up to 70% in the coming year,” he said. Durga’ Shanmugasundaram P, director of SB Knitting Mills, which makes 6,000 dozens of sports vests a day, is starting to manufacture 10% of their garments from manmade fi bres from next month. “We explored all cost cutting options and finally decided to try out artifi cial fabric,” he said. However, he added that outerwear can be made from artificial fibres, but inner garments have to be of cotton. At present, the price of a candy of cotton, weighing 356kg, is hovering around `1 lakh; it was `57,000 last September and `43,000 the previous year. According to Cotton Corporation of India statistics, there was no fall in cultivation of cotton and production remained the same as that of the past. However, export of cotton, thanks to growing overseas demand and hoarding by black marketers, has gone up say industrialists. Yarn prices too jumped to Rs 434 a kg in May for the 40’s count variety, compared to `237 last May. Chief minister M K Stalin made multiple representations to the Centre to bring down the prices, while the Centre removed the import duty for cotton and Union textile minister Piyush Goyal warned of an export ban to rein in prices. In June there was no further spike, but it was still unviable. According to Muthurathinam, 50% of the 10,000 odd garment manufacturing units in Tirupur are moving to artifi cial fi bres. “Karur and Erode looms are also moving to artifi cial fabric,” he said. A section of garment manufacturers, however, are concerned that Tirupur may lose its USP as a cotton garment hub. The other section however says there is growing demand in the global as well domestic market for garments made from artifi cial fi bres and Tirupur should make the most of the situation. “This is not a temporary phenomenon. The trend will continue,” says Tirupur Exporters Association president Raja Shanmugam. Managing director of Classic Polo T R Sivaram says cotton products will bounce back. “In a tropical country like India, polyester is not apt. There will be discomfort. Manmade fi bre for sports wear is fi ne, but in the casual wear segment there is no replacement for cotton,’’ he said. Some say that cotton cultivation was robust and when the fresh harvest enters the market by this December, cotton will be back in favour.
Source: Times of India
India's share in the global trade of technical textiles (USD 250 billion) stood at about 6 per cent. The level of penetration of the sector in India is about 5-10 per cent against 60-760 per cent in the developed world. Technical textiles is a fast-growing sector in the country and to further promote this, there is a need to put in place standards required by the industry, Textiles Secretary UP Singh said here on Friday. He also said that going forward, the government would have to consider issuing quality control orders for the sector in consultation with the domestic industry. "I do not think we have issued any kind of quality control orders as far as technical textiles are concerned. But going forward, we will need to do that also," he said at a conclave on standards for technical textiles. Standards or quality norms help the industry tap global markets and get good prices for their products. Speaking at the event, Rajeev Sharma, Deputy Director General (Standardisation), Bureau ofIndian Standards, said technical textiles accounts for about 19 per cent of India's total textiles and apparel industry. India's share in the global trade of technical textiles (USD 250 billion) stood at about 6 per cent. The level of penetration of the sector in India is about 5-10 per cent against 60-760 per cent in the developed world. "But, consumption of these products is increasing in India due to its versatility and durability," Sharma said. These are used in various industries, including agriculture, highway construction, sports, health and making safety protection clothing. Lt Gen Rajeev Chaudhry, Director General, Border Roads Organisation, said that they are using technical textiles in the construction of roads.
Source: The Hindu Businessline
The Ministry of Textiles in partnership with Federation of Indian Chambers of Commerce and Industry (FICCI) organized the 5th National Conclave on Standards for Technical Textiles, Building Standards for India@2047 here today. The conclave was inaugurated by Shri U P Singh, Secretary, and Ministry of Textiles. It encompassed a wide array of sessions and discussions on standards and regulations covering different areas of Technical Textiles including ProTech & Specialty Fibres, AgroTech & MediTech, GeoTech & BuidTech, MobilTech, Composites and InduTech. 300 representatives including Officials and Representatives from Bureau of Indian Standards (BIS), Indian Army, Indian Navy, Indian Space Research Organisation (ISRO), Line Ministries and Departments of the Central Government, State Governments, and Eminent Industrialists from India attended through hybrid mode (Physical and Virtual). Speaking at the inaugural session of the conclave, Shri U P Singh, Secretary Ministry of Textiles highlighted that the National Technical Textiles Mission (NTTM) and PLI in Textiles to support the penetration and exports of technical textiles in India. He added that standards provide a facilitating framework for technical textiles’ manufacturers in India. Continuous adoption and upgradation of the standards for each product category and segment will have a positive impact on the consumption of technical textile products in India, he further emphasized. He emphasized that development and adoption of Indian standards for high-end Technical Textiles is the need of the hour. Need to examine the possibility of Quality Control Orders (QCOs) for some of the Technical Textiles from safety, health and environment standpoint. A collaborative approach between Ministry of Textiles, Bureau of Indian Standards, Research Organizations, Industry and Academia to work together closely in identification of gaps and work towards harmonization of Indian technical textile standards with the global standards. Government will endeavor to provide all the needed support to promote Indian technical textiles sector across the world, added Shri U P Singh. During the Keynote address, Lt. Gen. Shri Rajeev Chaudhry, VSM, Director General, Border Roads Organisation (BRO) emphasized on the active role of BRO in driving the wide usage of Geo-textiles products including Geogrid, Geocells, Geofabrics and Geodrains across different road construction projects at borders, mountains and rain infested areas of India. He further added that the BRO has collaborated with industry and academia for development of new material & technology solutions. Thus, standardization of these products play an important role in further increasing the usage, going forward. Shri Rajeev Sharma, Deputy Director General (Standardization) BIS highlighted that over 500 standards have already been formulated for technical textile products by BIS in India since 2011 and further 40+ standards are being developed in close coordination with Ministry of Textiles, Industries and other Line Ministries and Departments. BIS has undertaken several initiatives to fast-track the formulation and harmonization of standards for technical textiles including Formation of specialized committee for Technical Textiles, Pre-membership in ISO Technical Committee, Digitization of standardization activity, Action-Research based approach, Free of Cost Indigenous Standards information and MoUs with eminent institutes have been the focused initiatives undertaken by BIS towards building technical textiles standards in India, he further added. Shri Rajinder Gupta, Chair, FICCI Textiles Committee & Chairman, Trident Ltd said that Technology is changing rapidly and technical textiles with their wide applications can play a crucial role in country’s transformation in next twenty-five years.
Source: PIB
The 12thBRICS Trade Ministers Meeting was held in virtual format on yesterday. Smt. Anupriya Patel, MoS for Commerce and Industry represented India. Intervention of the MoS mainly touched upon certain burning and relevant issues requiring attention. During COVID-19 pandemic, digitalization has emerged as the key driver for global economic growth.Recognizing that Digital Economy is central to the promotion of innovation, pursuing entrepreneurial ventures, creation of jobs, efficiency in services and importantly a marketplace for high value technology based products and solutions and the fact that almost half the world’s population does not have access to high-speed broadband and is hence deprived of the access to virtual platforms, tele-medicine, distance education and e-payments the MoS stressed upon making the digital revolution inclusive by creating an environment where nobody is left behind. On supply chains MoS mentioned that the supply chain disruptions, as a result of lockdowns, limited economic activities and economic slowdown has forced manufacturers everywhere to reassess their supply chains. The main point of supply chain resilience is minimizing negative impacts on people's lives and the economy even in the event of supply chain disruptions caused by pandemics, natural disasters, or regional conflicts. In this context, the MOS highlighted the statement made by Prime Minister Shri Narendra Modi that Transparent, Trusted Sources and Timeframe is critical for improving global supply chain resilience which is imperative for trade revival. While we are conscious of the climate change and the responsibility we have taken on ourselves through reduction of carbon footprint and preventing further degradation of the environment, we should be mindful that any measure taken to implement these should not be trade restrictive, arbitrary and discriminatory. While acknowledging that trade should become the engine for reviving global growth, the MoS stated that there is no alternative to the rules based multilateral trading system and that strong commitment to the WTO rules is the only way forward. The WTO reforms must strengthen the fundamental principles of the WTO including consensus-based decision making, inclusivity, equitable, non-discrimination, special and differential treatment. For MC12 to be successful, the WTO members need to build trust among each other and repose confidence in the multilateral trading system. The decision on the matter of public stockholding for food security needs to be delivered in order to honor the mandate decided by the Ministers. The MoS emphasized that while we look forward for a fair, balanced and equitable outcome in the Fisheries Subsidy Negotiationsin MC12, the principle of ‘Polluter Pays’ and ‘Common but Differentiated Responsibility’ should be applied. Moreover, it is imperative that the S&DT provisions continue to be relevant for the developing countries. The MoS also emphasized upon the need for flexibility in order to make available vaccines, medicines, therapeutics etc. to world citizens in a timely manner and at affordable cost. In conclusion, the MoS stated that as a human society, today, we occupy a very unique position in history. Our immediate actions will decide the future course of life on our planet, Mother Earth.
Source: PIB
Iran’s state-run shipping company said it started its first transfer of Russian goods to India, using a new trade corridor that transits the Islamic Republic, an Iranian port official said. The Russian cargo consists of two 40-foot (12.192 meters) containers of wood laminate sheets, weighing 41 tons, that departed St. Petersburg for the Caspian Sea port city of Astrakhan, the state-run Islamic Republic News Agency said on Saturday, citing Dariush Jamali, director of a joint-owned Iranian-Russian terminal in Astrakhan. The report didn’t say when the cargo, which it described as an initial “pilot” transfer to test the corridor, left or give any more details about the goods in the shipment. From Astrakhan, the cargo will cross the length of the Caspian to the northern Iranian port of Anzali and will be transferred by road to the southern port of Bandar Abbas on the Persian Gulf. From there it will be loaded onto a ship and sent to the Indian port of Nhava Sheva, IRNA said. Jamali said the transfer was being coordinated and managed by the state-run Islamic Republic of Iran Shipping Lines Group and its regional offices in Russia and India and is expected to take 25 days. Since Russia was sanctioned over its war on Ukraine, Iranian officials have been keen to revive a stalled project to develop the so-called North-South Transit Corridor that uses Iran to link Russia to Asian export markets. The plan involves eventually building a railroad line that can transfer goods arriving at Iranian Caspian Sea ports to the southeastern port of Chabahar.
Source: Economic Times
Given the favourable base in the wake of Covid-related curbs during the second wave, industrial output in May will likely record a double-digit expansion, though a rise in the interest rate can potentially weigh on the momentum, analysts said. Industrial output growth scaled an eight-month peak of 7.1% in April from a year earlier, with all the use-based categories witnessing expansion for the first time since August 2021. The rise in the index was despite the spike in inputs costs in the wake of the RussiaUkraine conflict. Though the growth was aided by a somewhat favourable base, it reflected renewed traction in manufacturing, which moved up 6.3% in April from 1.9% in the previous month, showed the official data released on Friday. Both mining and electricity segments, too, put up a decent show — the latter mainly due to a scorching summer. The overall IIP was also up 6.8% from the pre-pandemic period (April 2019). Given the favourable base in the wake of Covid-related curbs during the second wave, industrial output in May will likely record a double-digit expansion, though a rise in the interest rate can potentially weigh on the momentum, analysts said. In signs that both investments and urban consumption are somewhat recovering, growth in capital goods and consumer durables scaled eight-month peaks of 14.7% and 8.5%, respectively. However, a tepid 0.3% rise in consumer non-durables suggests rural purchasing power is still bruised and that growth in broader private consumption remains uneven. Moreover, compared with the pre-pandemic period, capital goods and consumer durables have witnessed a contraction. This has led some analysts to say investment is still driven substantially by the government and private investment is yet to see a broad-based revival. The recently-released GDP data, too, showed that growth in private final consumption expenditure in the March quarter dropped to 1.8% from 7.4% the previous three months. Gross fixed capital formation grew 5.1%, against 2.1% in the previous quarter, driven significantly by official investments. “The paltry year-on-year growth in the consumer non-durables in April also alludes to the K-shaped recovery, whereby households falling in the lower end of the pyramid are finding their real income being eroded disproportionately by the high inflation,” economist at India Ratings wrote. At the use-based classification level, apart from capital goods and consumer durables, the rise in primary goods (10.1%) and intermediate goods (7.6%) exceeded the growth in the overall IIP. Only infrastructure goods (3.8%) and consumer non-durables trailed the headline IIP growth. Crisil chief economist DK Joshi said, “While the high on-year growth in April is low-base driven, IIP did show improvement sequentially as well. What’s worrying is that consumer goods growth remains weak, indicating sluggish private consumption.” Icra chief economist Aditi Nayar said, “Led by pent-up demand, we expect services to outperform the demand for goods in the near term, with the latter further constrained by elevated prices.” The weak showing of capital goods output relative to the pre-Covid level, Nayar said, indicates the uptick in capacity utilisation in Q4FY22 will not trigger a rapid private sector capacity expansion in light of the uncertainties generated by geopolitical developments. Bank Of Baroda chief economist Madan Sabnavis said the IIP growth “buttresses the confidence given by the PMIs and GST collections during this challenging period”. “We need to see if this momentum can be sustained going forward.” The economists at India Ratings said electricity output is expected to clock double-digit growth in May (power generation in May was 23.3% higher than a year earlier) on account of demand driven by the intense heatwave. The coal output was up 33.9% on year in May and is expected to keep up the momentum in the mining sector. “As the economic activities normalises further, the capital and infrastructure goods may also get impetus due to the ongoing capex by the Union and state governments,” they added.
Exports from Rajasthan has increased by 36% in 2021-22 compared to 2020-21. Led by textiles, gem and jewellery, handicrafts, engineering goods, metals and chemicals, exports in 2021-22 reached nearly Rs 72,000 crore compared to Rs 52,700 crore in the previous year. Government sources said that besides the macro-economic trends, and lower base of 2020-21, the initiatives like niryatak bano by the industries department has contributed to the stellar growth. Commenting on the growth, Rajiv Dewan, mentor of Association of Garment Exporters Sitapura, said, "The growth of textiles was mainly driven by yarn. The large shipment of yarn caused a shortage in the domestic market leading to costly fabric for domestic garment manufacturers. That increased the prices of garments. While the exports of ready-made garments grew, but a substantial part of it came from higher product prices than increased volumes," said Dewan. In fact, textile exports grew from the high of Rs 6,750 crore in 2018-19 to Rs 9,251 crore in 2021-22. Similarly, readymade garments had its highest exports growth at Rs 2,078 crore in 2018-19 but it increased to Rs 2,561 crore in 2021-22. The gems and jewellery exports from Rajasthan had its highest shipments in 2018-19 at Rs 5,737.55 crore. In 2021-22, exports stood at Rs 6811.04 crore. Ashok Maheshwari, JAS convenor, said, "There was a time when the gems and jewellery exporters of Jaipur used to look for buyers abroad, but now international jewellery brands are moving to Jaipur along with foreign buyers. The youths are bringing in innovations into the trade. New technology and modern design are adding heft. Soon, the gems jewellery export of Rajasthan will cross $1 billion, but the shortage of skilled labour is affecting the sector." Handicrafts is one sector that has not witnessed a dip even during the pandemic period. While it has grown steadily from 2017-18 onwards, the growth in 2021-22 has been spectacular. From Rs 3,701 crore in 2017-18, the exports have expanded to Rs 7,830 crore in 2021-22. Ravi Rela, north-western region committee member of Export Promotion Council of Handicraft, said, "If there is full cooperation from the government, we can challenge China in the export market. In China, export marketing is the responsibility of the government, while industrialists focus only on making products according to the international market demand." In dimension stone, Rajasthan enjoys a special place in the country. While the sector is growing, there is scope for higher pace of expansion. In 2021-22, it had a good growth, going from Rs 4,080 crore in 2020-21, the highest ever, to Rs 4,481 crore. Rakesh Kumar Gupta, vice-chairman of Centre for Development of Stones, said, "Due to shipping companies' cartels, the container charges have increased up to 10 times. In Uttar Pradesh, the government has given relief to its exporters offering freight subsidy. We also need a similar assistance from the Rajasthan government to encourage exporters."
Source: Times of India
Reliance Industries Limited (RIL), the Indian multinational conglomerate with interests in diverse businesses including energy, petrochemicals, natural gas, retail, telecommunications, mass media, and textiles, has increased the price of polyester staple fibre (PSF) by ₹5 to ₹131 per kg with effect from June 9, 2022, as per information provided by traders. RIL is the largest supplier of PSF in the Indian market. Normally, RIL revises PSF price after a fortnight. It had increased the price of PSF by ₹1 to ₹126 per kg with effect from June 1, 2022. Therefore, the next price revision was due on June 16. So, it is unusual for RIL to have increased price before a fortnight, market sources said. The hike in PSF price is due to consistent rise in upstream products like purified terephthalic acid (PTA) and monoethylene glycol (MEG). “PTA and MEG prices have witnessed consecutive increase in last couple of months in India and international market, which led to further rise in PSF prices. Crude oil, the source material of the product, had seen steep rise after the Russian invasion of Ukraine,” Ashok Singhal, a trader from Ludhiana, told Fibre2Fashion. The latest increase in PSF price will push up prices of polyester and polyester-cotton yarn and other downstream products.
Source: The Hindu Businessline
The African Union is India's fourth largest trading partner after the United States, China and the United Arab Emirates, propped up by diversification in Indian exports to the continent, a senior State Bank of India official has said at a seminar here. With a share of 8.52 per cent in global trade, India's total trade with Africa in 2019-20 was valued at $68.33 billion. India has a negative trade balance with Africa, implying a dominance of imports over exports. In 2019-20, India's trade deficit with Africa was valued at $9.1 billion, which accounted for nearly 6 per cent of India's total trade deficit in the case of trade in goods, Syam Prasad, CEO of State Bank of India in South Africa said on Wednesday. In terms of bilateral trade, the African Union is one of India's largest trading partners after the US, China, and the UAE, he explained. India's trade with Africa has been diversified from exporting mainly textile yarns to petroleum products, pharmaceutical products, chemicals and manufactured products, he asserted. At the same time, India's import basket, though dominated by primary products and natural resources, is still diverse given the wide natural resource base in Africa, he said. Within the African Union, India's top trading partner is Nigeria (20.91 per cent). Ten countries account for nearly 60 per cent of India's total trade with Africa. Also Read - G-33 members must work together for fair, balanced out.
Source: Millennium Post
The Federation of Indian Export Organisations (FIEO) has pegged India's merchandise exports in the current fiscal year at $475 billion, 14% higher than the previous financial year but much less compared to growth seen in FY22 over FY21. The availability of containers has improved, and ocean freight rates have fallen by up to 15%, exporters have said. Still, the volume growth in exports in the ongoing fiscal year may not be significant as the global inventory is high and key rates in world markets are rising, they added. The Federation of Indian Export Organisations (FIEO) has pegged India's merchandise exports in the current fiscal year at $475 billion, 14% higher than the previous financial year but much less compared to growth seen in FY22 over FY21. In FY22, India's merchandise exports rose by 43% over FY21 to $418 billion. "In FY22, global markets created an inventory as commodity prices went up. Exports had gathered momentum after the second Covid-19 wave, but now due to inflationary pressure the volume growth of exports will be less," said Ajay Sahai, director-general of FIEO. If the Russia-Ukraine conflict does not end soon, the dynamics might change, he said. "As things stand today, India's merchandise exports in FY23 may not cross $475 billion," Sahai added. Since the Chinese economy is opening up after four months of Covid-19 led lockdowns, Indian exporters will face more competition from China in the global markets, he said. "Container availability has improved, and the freight cost has gone down by 10%-15%. We have to see how long this situation continues," said Mahesh Desai, chairman, Engineering Exports India "Once China becomes active, the container shortage may again emerge," said Ravi Sehgal, former chairman of the Engineering Export Promotion Council ofIndia. While international container prices have increased by up to 15% on average in May, in India they have declined, similar to the trend observed in China. There has been a monthon-month decline in the prices of 40-foot containers in Chennai, to $4,015 in May from $4,044 in April. India recorded its highest-ever textiles and apparel exports at $44.4 billion in the financial year 2022, indicating an increase of 41% over FY21. Export of ready-made garments was at $16 billion with a 36% share in FY22, up 31% against the previous year.
Source: Economic Times
THE PHILIPPINES and United Arab Emirates (UAE) signed an investment promotion and protection agreement (IPPA) on June 9, with the Trade department expressing an interest in tapping Dubai investment in agriculture and energy, among others. In a statement on Sunday, the Department of Trade and Industry (DTI) said Trade Secretary Ramon M. Lopez and UAE Minister of State for Financial Affairs Mohamed Bin Hadi Al Hussaini signed the IPPA, which it said is expected to create 2,500 jobs and over P7.1 billion worth of investment. “The parties intend to promptly facilitate the internal procedures needed for the entry into force of the IPPA. Sectors of interest from the UAE include import and distribution, the manufacture of scaffolding and formwork, engineering services, defense, telecommunications, tourism, poultry, aerospace, retail (such as medical equipment/devices), and renewable energy,” the DTI said. The DTI said it is eyeing investment in agribusiness and agriculture, energy efficiency technology and renewable energy, infrastructure and public–private partnership projects, artificial intelligence, information technology and business process management and shared services, manufacturing, oil and gas, processed and specialty food, and tourism and hospitality. Philippine products the DTI expects to promote to the UAE are plastic and rubber products such as gloves, vulcanized rubber, and vulcanized rubber thread and cord, and spices such as cloves and pepper. The IPPA establishes a Joint Committee on Investments (JCI) which find areas of cooperation between the two countries. The JCI is headed by undersecretaries of the DTI and the UAE’s Ministry of Finance. Mr. Lopez said that the IPPA comes at the start of the process for forging a Comprehensive Economic Partnership Agreement (CEPA), with Dubai. “The IPPA will boost investment between the countries and the CEPA will also pave the way for the Philippines’ enhanced access to the broader Middle Eastern region and could be UAE’s strategic hub in the Southeast Asian market,” he added. In February, the DTI said that a CEPA with UAE is expected to contain elements of a free trade agreement. Philippine interests for inclusion in a CEPA include fresh and processed fruit, seafood, food products, beverages, electronics, appliances, machinery, personal care goods, iron and steel, wood, cement, chemicals, automotive and automotive parts, ships and aircraft, textile and garments, footwear, and leather. According to the DTI, the UAE was the Philippines’ 23rd largest partner in terms of two-way trade, the 21st largest export market and the 26th largest source of imports in 2020.
Source: Business World online
Pakistan's textile exports are set to dramatically dip as the sector is hobbled by a nationwide energy crisis forcing daily power cuts on factories, with an industry leader warning about "a state of emergency" for the manufacturing hub. The South Asian nation is in the midst of a dire economic crisis, with runaway inflation, a depleted rupee and dwindling foreign exchange reserves hampering energy imports. Meanwhile a heatwave has caused a surge in electricity demand, leaving a shortfall of over 7,000 megawatts -- one-fifth of Pakistan's generation capacity -- on some days this month, according to government figures. The energy shortage has hit Pakistan's vital textile industry, which supplies everything from denim to bed linen towards markets in the US and Europe, and accounts for 60 percent of the country's exports. "The textile industry is in a state of emergency," Qasim Malik, the vice president of the Chamber of Commerce in the manufacturing hub of Sialkot, told AFP. With authorities forced to ration the power supply with staggered blackouts, Malik said the "unannounced and unscheduled" outages disrupt the textile supply chain, which is "causing millions of rupees of losses". "Should the power cuts persist there could be a decline of more than 20 percent in exports," warned Sheikh Luqman Amin of the Pakistan Readymade Garments Manufacturers and Exporters Association. Larger factories tend to have independent power plants, leaving small- and medium-sized factories in cities such as Lahore, Faisalabad and Sialkot most exposed. Owners have complained of power cuts of eight to 12 hours on a daily basis and face the dilemma of lower production or installing generators powered by petrol, which is also sharply rising in cost. "We can't accept new orders because we are already behind on previous ones," said Sialkot garment factory owner Usman Arshad. "Things can't continue to go on this way." Despite the nation's economic woes, textile exports surged 28 percent to a record $17.67 billion in the fiscal year July-May 2021/22, the All Pakistan Textile Mills Association reported this week. The Pakistani industry was buoyed by the tail end of the coronavirus pandemic, when it was freed of restrictions earlier than regional rivals India and Bangladesh. The new government of Prime Minister Shehbaz Sharif is set to announce a budget on Friday attempting to turn around Pakistan's dire finances. It is expected the ledger will include a raft of measures to convince the International Monetary Fund to revive a stalled $6 billion bailout package.
Source: France 24
UKFT has been working closely with the British Fashion Council (BFC), Innovate UK and other stakeholders in an effort to attract wide-ranging government support for a new 10- year Fashion Industry Sustainable Change Programme, focused on creating a world leading circular fashion and textiles eco-system in the UK. The programme aims to deliver investment in skills, innovation clusters and regional regeneration, alongside the creation of an industry-led centre of excellence. It will focus on supporting the industry to embrace new circular business models and help to create the world-leading recycling and sorting infrastructure that will truly bring about systemic change and opportunities for UK manufacturing, UKFT said in a press release. UKFT has been working closely on this agenda with Innovate UK, UK Research & Innovation (UKRI), the Natural Environment Research Council (NERC) and Arts & Humanities Research Council (AHRC), the department for environment, food & rural affairs, the department for business, energy & industrial strategy, the department for digital, culture, media & sport, the British Retail Consortium and Wrap (Textiles 2030). UKFT is also on the steering committee of the Institute of Positive Fashion, which is expected to lead the new centre of excellence. This move was recognised at an event at Downing Street on June 8, hosted by the prime minister Boris Johnson and the BFC. It was attended by guests from across the fashion and textiles industry including designers, manufacturers and innovators, media, retailers and business leaders, as well as government and academia. “This is a pivotal time for UK fashion and textiles. In order to survive and grow, it is essential that the sector strengthens its sustainable competitiveness. It will mean a fundamental change and one that needs to be delivered at pace, and will call for new skills and new jobs. We are delighted that the UK government is recognising the importance of our sector and the opportunities that exist. We look forward to working with the industry to drive a change with far-reaching benefits for the whole UK fashion and textile supply chain,” Nigel Lugg OBE, chair of UKFT, said. “The UK fashion industry is a big contributor to the economy and to brand Britain and I am delighted to support this brilliant industry as it moves forward with a 10-year Fashion Industry Sustainable Change Programme bringing opportunities across the UK to meet our Government Climate Action Plan of environmental and societal change,” UK Prime Minister Boris Johnson, said. “Imagine 10 years from now a city like Leeds which has a rich history in manufacturing and textiles retaining its role as a key part of the fashion and textiles industry and an example of a circular city with reprocessing plants, energised highstreets with take back schemes where product is broken down, re-spun and made to create new fabrics; a city with an inclusive and diverse workforce, with new skills and learning opportunities. This isn’t a pipe dream – elements of this are already being seen around the world – we can bring this expertise together and make it a reality for the UK putting us at the forefront of change. The scale of the challenge is such that industry can’t do this alone. Many great things are being done in silos, but joining the dots, thoughtful regulation and supercharging change through funding will help the UK lead in this respect,” Stephanie Phair OBE, chair of the British Fashion Council, said.
Source: Fibre 2 Fashion
Export-oriented manufacturers can expect output to trend higher, as global demand and private investment are on the rise, a research institute said The production value of the local manufacturing sector is expected to rise 6.4 percent from a year earlier to hit a record NT$25.8 trillion (US$872.09 billion) this year as Taiwanese tech exporters continue to benefit from healthy global demand and significant investment, the Industrial Technology Research Institute said. The global economy is facing uncertainty caused by the war in Ukraine, Chinese COVID19 lockdowns and rising inflation, institute analyst Chen Chia-ying (陳佳楹) said during an online forum on Friday to discuss Taiwan’s manufacturing business climate, industrial sustainability and emissions targets. However, for many export-oriented manufacturers, output is expected to continue trending higher, with the local economy to grow steadily amid healthy global demand and an increase in private investment, Chen said. The four major industries in the manufacturing sector are forecast to see an increase in their output, based on the institute’s model, Chen said. The information and electronics industry is expected to generate NT$10.32 trillion in production value this year, up 9.28 percent from a year earlier, benefiting from robust shipments in gadgets used in emerging technologies such as 5G applications, artificial intelligence of things (AIoT), high-performance computing devices and automotive electronics, Chen said. This growth is likely to lead to higher demand for semiconductors and other electronic components, she added. The production value of the metal and mechatronics industry is expected to rise 6.08 percent from a year earlier to NT$7.37 trillion given the rising popularity of production automation, smart manufacturing and renewable energy development, Chen said. The output of light industries, such as textile supplies, is expected to rise 2.64 percent from a year earlier to NT$2.76 trillion as many clients of Taiwanese textile producers are to resume efforts to rebuild inventories, she said. The chemical industry is expected to post NT$5.35 trillion in production value, up 1.92 percent from a year earlier, as the industry faced a relatively high comparison base last year and international crude oil prices are to remain high before moderating from the third quarter, Chen said. The local manufacturing sector should remain alert for risks from geopolitical tensions and the COVID-19 pandemic, she said. The institute also forecast that Taiwan’s renewable energy industry would generate about NT$209.5 billion in production value this year, up 5.7 percent from a year earlier, which would be the first time in five years that the industry’s output exceeds NT$200 billion.
Source: Taipei Times
Vietnam witnessed a year-on-year (YoY) surge of 23.5 per cent in export of textile and garment to earn $18.7 billion between January and May this year amid continuing market uncertainties and rising input costs. Vietnam National Textile and Garment Group (Vinatex) saw a 50-per cent surge in revenue. Most companies have orders to fulfill by the end of September. Many are negotiating to gain more for the rest of the year. Nam Dinh Textile Garment JSC (Natexco) generated over 1.02 trillion VND in revenue by May end—up by 23 per cent YoY, according to trade union president Doan Van Dung. Natexco suffered severe labour shortage throughout February and March as there were times when up to half of its workers had to take sick leave due to COVID-19 infection. Viet Thang Corporation has been struggling to keep production going during the first quarter of the year, given that the Russia-Ukraine crisis has caused supply chain disruptions and a spike in input and fuel prices and logistics costs, said company deputy director general Dau Phi Quyet. Those expenditures have climbed three- to four-fold, and therefore, all units were having hard time figuring out possible ways to get out of the situation, Quyet said. Though the company has managed to find stable supplies of inputs, it is having a shortage of imported replacements for equipment components to deal with. It earlier took six to eight weeks to receive deliveries of the replacements, which normally come from Europe. Now the shipments may take up to 12 weeks to arrive. To cut logistics costs, the corporation is prioritising major orders instead of minor ones. Similar challenges could potentially put the brake on Vinatex’s growth over the remaining months this year, a report by a Vietnamese news agency said. Vinatex chief executive officer Cao Huu Hieu said record inflation in decades are ravaging major economies, triggering rising inventories and declining purchasing power, and this may have substantial effects on the company’s performance. To weather the crisis, Hieu has advised domestic manufacturers to prepare themselves with more flexible plans in order to promptly address any market changes.
Source: Fibre2 Fashion
Vietnam reported a year-on-year surge of 23.5 percent in exports of textile and garment to earn 18.7 billion USD in the first five months of this year in the midst of lingering market uncertainties coupled with rising prices of inputs. Vietnam reported a year-on-year surge of 23.5 percent in exports of textile and garment to earn 18.7 billion USD in the first five months of this year in the midst of lingering market uncertainties coupled with rising prices of inputs. A majority of textile-garment companies have orders to fulfill by the end of September, many are in the negotiation process to gain more for the rest of the year. Nam Dinh Textile Garment JSC (Natexco), a major producer located in the northern province of Nam Dinh, has generated over 1.02 trillion VND (44 million USD) in revenue as of the end of May, up 23 percent from the same period last year, according to trade union president Doan Van Dung. It shows the corporation’s great efforts to address adverse impacts of the COVID-19 pandemic, he said. Natexco had suffered severe labour shortage throughout February and March since there were times when up to half of its workers had to take sick leaves because of COVID-19 infection. Viet Thang Corporation has been struggling to keep production going during the first quarter of the year, given that the Russia-Ukraine crisis has caused supply chain disruptions and a spike in input and fuel prices and logistics costs, according to Deputy Director-General Dau Phi Quyet. Those expenditures have climbed three- to four-fold, so all units were having hard time figuring out possible ways to get out of the situation, Quyet said. Though the company has managed to find stable supplies of inputs, it is having a shortage of imported replacements for equipment components to deal with. It took six to eight weeks to receive deliveries of the replacements, which normally came from the Europe. Now the shipments may take up to 12 weeks to arrive. To cut costs from logistics services, the corporation is prioritising major orders instead of the small ones. Vietnam National Textile and Garment Group (Vinatex), one of the leading textilegarment manufacturers in the country, had impressive business performance since the start of this year with a 50-percent surge in revenue. But similar challenges could potentially put the brake on its growth over the remaining months. Record inflation in decades are ravaging major economies, including the US, the EU and the UK, triggering rising inventories and declining purchasing power. This may have substantial effects on Vinatex’s performance, CEO Cao Huu Hieu said. To weather the crisis, Hieu has advised domestic manufacturers to prepare themselves with more flexible plans in order to promptly address any market changes. He attributed the company’s Q1 positive business results to its ability to secure stable and sufficient supplies of inputs. Vinatex has invested on several yarn production projects using modern technology between 2015 and 2020, two of which were put into operation last year.
Source: Vietnam Plus
Seasonally adjusted gross domestic product (GDP) increased by 0.6 per cent in the euro area and by 0.7 per cent in the European Union (EU) in the first quarter (Q1) of this year compared with the previous quarter, according to an estimate published by EU statistical office Eurostat. In Q4 2021, GDP had grown by 0.2 per cent in the euro area and by 0.5 per cent in the EU. Compared with the same quarter of the previous year, seasonally adjusted GDP increased by 5.4 per cent in the euro area and by 5.6 per cent in the EU in Q1 2022. During Q1 2022, GDP in the United States decreased by 0.4 per cent compared with the previous quarter and by 3.5 per cent compared with the same quarter of the previous year. Ireland (plus 10.8 per cent) recorded the highest increase of GDP compared to the previous quarter, followed by Romania (plus 5.2 per cent) and Latvia (plus 3.6 per cent). Decreases were observed in Sweden (minus 0.8 per cent), France (minus 0.2 per cent) and Denmark (minus 0.1 per cent). Based on seasonally-adjusted figures, GDP volumes in the euro area and EU were 0.8 per cent and 1.5 per cent respectively above the level recorded in Q4 2019, before the COVID19 outbreak. For the United States, GDP was 2.8 per cent higher than the level in Q4 2019.
Source: Fibre2Fashion
