NATIONAL

• Trade deficit in India falls to $11.5 bn as exports rise 3.9 pct
• GST glitches may hit pricing, new orders: Exporters
• Co-optex to launch Ahimsa pattu soon

INTERNATIONAL

• Global Textile Raw Material Price 2017-08-15
• China July factory output, retail sales, investment miss forecasts
• Eurozone Industrial Output Falls For First Time In 4 Months
• World Ranking 2017: Pakistan Is The Fourth Largest Cotton Producing Country
• Bangladesh : Is garment export paradox just a passing phase?
• USA : Congress calls on administration for economic assistance for cotton producers
• Pakistan : Growers for reducing cotton imports
• Yarn price to fall as supply rises
• Ghana : Apparel expansion project launched in Accra
• Sustainable Textile School

Trade deficit in India falls to $11.5 bn as exports rise 3.9 pct

India’s merchandise export grew 3.9% to 22.54 billion in July, marking an annual increase in shipments for the 10th straight month, but slower than the 4.4% growth posted in the previous month.  The growth of imports, despite continued surge in the influx of gold, slowed in July to an annual 15.4% from 19% in the previous month, precipitating a narrower trade deficit of $11.45 billion. The trade shortfall was $12.96 billion in June. India imported goods worth $33.99 billion last month, as against $36.52 billion in June. As for exports, engineering goods (up 15.2%), petroleum products(20.3%) and chemicals (20.7%), performed well in July, but several other sectors reported contraction. Pharmaceutical exports declined 5.4% year on year, apparel exports fell 12% and gems and jewellery saw a 22.7% fall. South Korean imports via the FTA route had seen gold imports surge 104% to $2.45 billion in June. The imports saw 95% rise in July to $2.1 billion.  “…the need of the hour is the sectoral analysis which should be initiated soon to pin-point factors responsible for decline in (exports from many sectors),” Ganesh Kumar Gupta, president of Federation of Indian Export Organisation (Fieo), said. Oil imports were valued at $7.84 billion in July, an increase of 15% over the same month in 2016. Cumulative import during April-July increased by 28.3% to $146.25 billion, leaving a trade deficit of $51.5 billion. Fieo has also cautioned that the order booking position October onwards is not very promising and the appreciation of Indian currency with increasing pressure on liquidity under the goods and services tax may affect exports in the last quarter of 2017 bringing exports to $310 billion in the current fiscal.

Source: Financial Express

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GST glitches may hit pricing, new orders: Exporters

NEW DELHI: The slowdown in exports may mark the beginning of trouble ahead, said exporters a month and half after the goods and services tax (GST) rollout. Consider this: Consignments worth Rs 300 crore of handmade carpets were held back last month. While issues regarding the refund mechanism and blockage of working capital have been flagged frequently, exporters said their worries are now spiralling and getting reflected in production and overseas clients looking elsewhere. On Monday, official data showed exports slowing to an eight-month low in July in the current 11-month cycle of growth of exports with shipments remaining stuck in factories in the first week of last month. The steepest decline was in traditional labour-intensive sectors such as gems and jewellery, readymade garments, pharmaceuticals and carpets, where the incidence of subcontracting is high. July saw a 40% decline in production of handmade carpets from the year earlier as shipments were held back because exporters were unclear about the paperwork involved in GST. “We are getting price resistance from importers in the US as they are concerned about the price rise that would be passed on to them,” said Mahavir Sharma, chairman of the Carpet Export Promotion Council. India exports close to Rs 10,000 crore of handmade carpets each year. The apparel sector too is feeling the stress, especially because of the GST levy on job work, which translates into a higher tax incidence. Amit Goyal, managing director of Mumbai-based Sarju International, a medium-sized company, said overseas clients are not willing to increase prices because they say that's the competitive advantage of sourcing from India.  On a $5 garment, almost 20-30 cents are getting blocked due to the pay first-refund later mechanism of GST. “Till June, we were growing at 10% but there was no growth in July. The next three-four months will remain like this,” Goyal said. Vishwanath , managing director of Nath Brothers Exim International Ltd, said: “In the July-September quarter, on a turnover of `10 crore, we can claim drawback of Rs 50-55 lakh.  we can claim drawback of Rs 50-55 lakh. However, in that case we will not be able to claim the GST refund of `35 lakh and that would be a loss for us.” A Delhi-based garment exporter said customers in the US and European Union are unwilling to bear the rise in prices. “They said they'd import from China. We will renegotiate with them in a few months' time,” he said.“Many of our domestic clients have given a directive to buy only those products which are taxed at 12% and not 28%,” said OP Prahladka, chairman of the Export Promotion Council for Handicrafts.  The same is the case with leather, another traditional export sector. “Though GST is not affecting our orders, it has raised the financial cost and lead to a crunch in working capital,” said Rafeeque Ahmed, chairman of Chennai-based Farida Group, one of India's largest shoe manufacturers and exporters. However, he added that production could get hit in the next two-three months.

Source: The Economic Time

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Co-optex to launch Ahimsa pattu soon

This festival season, Co-optex will be launching a range of Ahimsa pattu to cater to a niche market that shuns silk as conventional production requires killing silk worms. In the normal variety of silk, once the worm has spun the cocoon, which is later used to make yarn for silk, it is dropped in water, which kills the worm to ensure the yarn is continuous. In the ahimsa variety, the silkworm is allowed to mature and escape its cocoon. Since the cocoon is broken the yarn is discontinuous, and it also lacks the lustre of the silk when the cocoon is not broken. Since by its nature ahimsa silk would be coarse, the Tamil Nadu Handloom Weavers’ Cooperative Society, popularly known as Co-optex, has decided to use threadwork instead of the usual zari embellishment. “We are looking at Ahimsa pattu in two ways — as a regular corporate wear that is easy to maintain and the other that is not jazzy but elegant,” said Co-optex managing director T.N. Venkatesh. 15 looms identified Co-optex has identified 15 looms that would weave only Ahimsa pattu . The weavers of these looms have traditionally been doing threadwork on sarees and they have been asked to continue. The society has given them select designs “that they are happy to oblige,” Mr. Venkatesh said. Ahimsa pattu was the result of a survey among customers during its exhibition on vintage Kancheepuram silks, officials said. “We received feedback from customers in the age group between 25 and 35 who wanted to wear silk but said they wanted sustainable clothing. The market for Ahimsa pattu would initially be in cities such as Chennai, Coimbatore, Bengaluru and Mumbai,” an official said. The silk would be priced higher as the yarn cost for Ahimsapattu is twice that of normal silk. Each month, Co-optex would be selling only around 50 sarees, the officials added. "Easy to maintain, it will be a regular corporate wear", T.N. Venkatesh, Co-optex managing director.

Source: The Hindu

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Global Textile Raw Material Price 2017-08-15

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14996 USD dtd. 15/8/2017). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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China July factory output, retail sales, investment miss forecasts

BEIJING - China's factory output slowed more than expected in July while investment and retail sales also disappointed, reinforcing views that the world's second-largest economy is starting to lose some steam as lending costs rise and the property market cools. Factory output rose 6.4 percent in July from a year earlier, the slowest pace since January this year, statistics bureau data showed on Monday. Analysts polled by Reuters had predicted factory output would grow 7.2 percent in July, down from 7.6 percent in the previous month. Fixed-asset investment grew 8.3 percent in the first seven months of the year, cooling slightly from 8.6 percent in the first half of the year. Analysts had expected the growth rate would remain steady. Despite the softer-than-expected reading, China's manufacturing activity still appeared to be supported by a year-long construction boom. Beijing has poured money into infrastructure projects that have fuelled demand for products from construction equipment to building materials from cement to steel. Relatively resilient economic growth is no doubt welcome news for President Xi Jinping ahead a major political leadership reshuffle in autumn, with authorities keen to ensure a smooth run-up to the meeting. Any sharp drop in industrial activity, which appears to be a low-risk at this stage, would be a concern for policymakers as it risks rippling across the broader economy. Still, China's surprising strength so far this year seems unlikely to last. A government crackdown on riskier types of lending has driven a slowdown in credit growth and pushed up financing costs, which are expected to start weighing on the economy in coming months. Average lending rates edged up to 5.67 percent in June from 5.53 percent in March, China's central bank said on Friday in its second-quarter policy report, adding it will continue working to fend off risks to the financial system. Concerns about the outlook for domestic demand resurfaced last week after Beijing reported weaker-than-expected import and export data. Though some economists chalked up softer imports to seasonal or one-off factors such as bad weather, others said it may be a sign that China's trade growth peaked in the second quarter and is now on a downward trend. Retail sales rose 10.4 percent in July from a year earlier, cooling from June's 11 percent pace and also failing to meet analysts' expectations for a 10.8 percent rise.

SLOWDOWN

To be sure, China has surprised most pundits all year, with the economy growing a faster-than-expected 6.9 percent in the first half, turbo-charged by heavy government spending, a hot housing market and record bank lending last year. Analysts still insist a modest slowdown will come eventually, but have repeatedly pushed back the timing in the face of resilient data. China's factory gate inflation remained steady in July, a positive sign for industrial output and profits. Its insatiable thirst for resources has fueled higher prices for industrial commodities and a reflationary pulse for manufacturing that has been seen worldwide. The steel industry continues to feast on fat profit margins, cranking out products despite concerns that stockpiles are growing at a pace that is far outstripping demand. Beijing's plans to shut more inefficient and heavily polluting mines and mills this winter have triggered a fresh spike in prices for iron ore and steel reinforcing bars.

PRIVATE INVESTMENT ALSO COOLS

Growth of private investment slowed to 6.9 percent in January-July from 7.2 percent in the first half of the year, suggesting small and medium-sized private firms still face challenges in accessing financing. Private investment accounts for about 60 percent of overall investment in China. China is targeting growth of around 9 percent in fixed asset investment for 2017, and expects retail sales to increase about 10 percent.

Source: Financial Express

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Eurozone Industrial Output Falls For First Time In 4 Months

Eurozone industrial production declined for the first time in four months in June, Eurostat reported Monday. Industrial production decreased 0.6 percent month-on-month in June, reversing a revised 1.2 percent rise in May. This was the first decrease since February, when output slid 0.2 percent. Economists had forecast output to fall 0.5 percent in June. The monthly fall was largely driven by a 1.9 percent decrease in capital goods and 1.2 percent fall in durable consumer goods. Output of intermediate goods and non-durable consumer goods fell 0.3 percent and 0.4 percent, respectively. Energy production was the only component to log a monthly growth, which gained 1.8 percent. Year-on-year, industrial production growth eased more-than-expected to 2.6 percent in June from 3.9 percent in May. The expected growth rate was 2.8 percent.

Source: Financial Express

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World Ranking 2017: Pakistan Is The Fourth Largest Cotton Producing Country

After China, India, and the USA, Pakistan becomes the 4th largest cotton producing country in the world, as revealed by world ranking 2017. Pakistan has beaten Brazil, Uzbekistan, Australia, Turkey, Argentina, and Turkmenistan along its way and has grabbed the fourth position. Per year in Pakistan, 2,216,932 metric tons of cotton is produced. The amount of cotton produced in the country is essential for the economic growth of Pakistan. It is grown in 15% of Pakistan’s land during Kharif season. The monsoon months are included in Kharif Season that is from May to August. The industrial crop is grown mainly in Punjab and Sindh. As the demand for cotton is growing especially BT cotton, therefore, its production has also enhanced in the country. There are numerous products made using cotton. The most common are clothes. Cotton is used to produce all kinds of clothes from shirts to jeans, trousers, T-shirts and even towels and handkerchiefs. People prefer to wear clothes made of cotton as they are softer and lighter. Other than this cotton is also used to dress wounds via cotton puffs. Production of fishing net, manufacture of soaps, cotton has many uses and therefore Pakistan ranking fourth in its production not just benefit the country domestically but also boost up the export industry of the country.

Source: RS Tech

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Bangladesh: Is garment export paradox just a passing phase?

Even though inspection has enhanced awareness about the stake involved in ensuring compliance standards, no fresh local investments could occur at a time when plenty of work orders were expected from not just China but also from theWestern world, Japan and a few other emerging markets, writes Marksman. Recently, there have apparently been contrasting but mutually reinforcing reports in the media on the future of Bangladesh's garment sector. The common denominator around which crystal-ball gazing is taking place is the potential replacement of China as the foremost supplier to the world's apparel market. China has been moving rapidly into up-end manufacturing ,high-tech industries away from labour-intensive sectors for quite a while. Such a trend has coincided with high wage bills that even if theoretically Beijing would stick with garments, she couldn't hope to be competitive vis-a-vis others. In this context , China is keen on passing the baton of its predominant position in the field on to a deserving successor.She can do it in two ways: First transferring work orders her factories have been receiving to other exporting countries. Secondly,on a permanent footing ,China could think of relocating some of her apparel industries ,if necessary under buy-back arrangements. Since the balance of trade is heavily tilted towards Beijing,such an option merits consideration by way of bridging some of the prevailing inter-state trade gap. Alternatively, Chinese investments in the Special Economic Zones that are said to be in the offing would be welcome. It is, however interesting, though not inexplicable to note that investors from a number of countries have been 'lobbying the governments over the years to get permission to invest in garment factories outside of the export processing zones.'But as a matter of policy,FDIs have been confined to those zones. Bangladesh being the second largest exporter of garments ,knitwears etc in the world market,should be a natural contender for taking the Chinese place there. But Bangladesh RMG sector leaders know it full well that no one will offer that position on the platter; they have to deserve and earn it. Even China,for that matter, would place business ahead of any subjective considerations. As if to prove this point, it is reported that Bangladesh is failing to take advantage of the shifting work orders from China. Ahsan H Mansur,executive director of the Policy Research Institute(PRI) was quoted as saying ,"Bangladesh was supposed to get more of the shifted orders from China but unfortunately those were received by some other countries like Vietnam,Myanmar and Cambodia." On top of that Chinese entrepreneurs are said to have invested in Myanmar,Vietnam and Cambodia. If one probes the matter, one finds that although China is willing to invest in Bangladesh she faces hindrance in terms of prompt availability of land, gas and power. There is an issue with capacity as well. According to the Bangladesh Garment Manufacturers and Exporters Association ( BGMEA), more than 1000 small factories had to shutter down 'due to strict inspection and remediation by the Accord and Alliance ,two foreign building oversight bodies.' Even though inspection has enhanced awareness about the stake involved in ensuring compliance standards, no fresh local investments could occur at a time when plenty of work orders were expected from not just China but also from the Western world, Japan and a few other emerging markets. In contrast,we have a report with an effusive story-line saying, 'Bangladesh is buttressing world's confidence in challenging Chinese monopoly in readymade garments'. In an article by analyst Robin Harding titled "Manufacturing Focus to New Corners of Asia' published in prominent newspapers including The Financial Times one comes by an observation reading-'in the last 20 years, Bangladesh has staged an economic miracle.'Adding it pointed out,'low labour cost is the moving force' behind the garments wagon wheels. Much as this factor is a strong point for us , it also enhances our obligations to ensure their safety and welfare for the sake of greater productivity and quality assurance.                                                                                           

Source: The Financial Express Bangladesh

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USA : Congress calls on administration for economic assistance for cotton producers

A large, bipartisan block of 135 senators and representatives recently sent letters to President Donald Trump strongly urging the administration’s support, through USDA, to operate the Cotton Ginning Cost Share Program effective for the 2016 crop year and on an ongoing basis.The Senate letter noted, “In the past decade, the U.S. cotton industry has endured a World Trade Organization challenge, increasing foreign subsidies, tariff and non-tariff barriers to trade and a weakened U.S. safety net.” The House letter at noted, “In recent years, these factors have resulted in the United States experiencing a 30-year low in cotton planted area; global cotton prices approaching $2.00 per pound before plummeting to as low as 57 cents per pound; and record production costs far outpacing market returns for the last three years. As a consequence, America’s cotton farming families are struggling to compete on a lopsided global playing field heavily weighted to our competitors. ” Twenty-six senators and 109 representatives signed letters that were delivered to the president seeking support for the cost-share program. The National Cotton Council appreciates those who led the Congressional effort including: Sens. John Boozman (R-AR) and Mark Warner (D-VA) and Reps. Robert Aderholt (R-AL), Jodey Arrington (R-TX), Sanford Bishop, Jr., (D-GA), Mike Conaway (R-TX), Rick Crawford (R-AR), Collin Peterson (D-MN), Rick Nolan (D-MN) and Tom O’Halleran (D-AZ). The National Cotton Council and 82 other cotton interest organizations sent a similar letter to Trump that requests his administration to provide economic relief to U.S. cotton farming families. The letter stated that to help bridge the gap until a new farm bill is adopted by Congress, “The cost share program will provide policy stability in the absence of a comprehensive policy for cotton in the existing farm bill. A cost share program was operated by the previous administration for the 2015 crop and proved to be an effective and efficient means of providing economic relief to America’s cotton farming families.” The letter noted that in the absence of the safety net offered to other crops, cotton producers are much more exposed to the volatile nature of commodity markets and global policy manipulations. Without some action by the federal government, the letter stated, “Nearly 18,000 cotton families will continue to see their equity erode or take on a greater debt load as they hope to keep their family farms in operation.” Another letter sent to the president was signed by 1,605 agricultural lenders, agribusinesses and other rural businesses. That letter strongly recommended the administration use its discretionary authority to assist in this situation and specifically authorize assistance similar to the recent Cotton Ginning Cost Share program. It stated this assistance would help bring much needed stability and support to producers, and in these times of low prices, allow them to have the balance sheets necessary to procure production financing. The lender/agribusiness letter cited USDA data showing cotton market returns fell short of the total costs of production. Losses in the past three years, it noted, are unlike any in recent history for U.S. cotton.“Unfortunately, the recent economic pressures will intensify as projections by the Food and Agricultural Policy Research Institute for 2017 and 2018 are for lower cotton market revenue relative to the 2016 crop,” the groups stated. They also emphasized that these projections of continued economic losses “cause serious concern among the lending and agribusiness community that rely so heavily on a vibrant farm economy. Equally concerning is that losses in cotton area translate into pressure on associated businesses, infrastructure and rural economies who are also our customers. Prolonged production declines of this scale will result in severe strain on the entire cotton infrastructure, which continues to be the backbone of many small, rural communities.”

Source: High Plains Journal

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Pakistan : Growers for reducing cotton imports

Islamabad Cotton growers have urged the government for providing level playing field to local farmers in order to reduce the import of cotton into the country, which was discouraging the cotton farmers across the country. They said that billion of dollars were being spent annually on the import of the cotton to fulfill the domestic requirements of local industry. They said that cotton import into the country grew by 46 percent, where as exports reduced by 49 percent during the last fiscal year ended on June 30, 2017. They stressed the need for taking necessary measures to check the import of cotton into the country to stabilize prices of the commodity They said that cotton imports into the country grew by in the local market to benefit the lint farmers particularly small farmers. 10 percent during last financial year ended on June 30, 2016 as compared to the corresponding period of last year. Talking to APP here, President Kissan Ithad Khalid Khokhar urged the government to take appropriate measures to safeguard the interest of local cotton growers. He asked for reducing the cost of production to compete with the international markets and encouraging the farmers to grow more crop and enhance production. He said that per 40 kg cost of production of local cotton was recorded at Rs 2,533 as compared with the prices of the commodity in the neighboring country where it was recorded at Rs 1,076 per 40 kg. He urged the need for enhancing research expenditures, improved seed varieties and encouraging the local farmers by providing them special incentives to enhance cotton producing to its true potential of 20 million bales.

Source: Pakistan Observer

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Yarn price to fall as supply rises

Local merchants and spinners expect the yarn market to stabilise thanks to a price fall in the global market amid rising supplies, especially from China, and higher cotton production. Cotton, the main source for producing yarn, traded between 67.7 and 68 cents per pound in the international market yesterday, down from 71.8 to 72.8 cents a few days ago. The widely consumed 30-carded yarn traded between Tk 100 and Tk 107 a pound in Bangladesh. “This price level has been persisting over the last seven to eight months. We hope that the price will continue to decrease further as the price of cotton declined worldwide,” said Liton Saha, former president of the Bangladesh Yarn Merchant Association. As the price of the fibre declined and the production increased, the consumption of cotton may go up in Bangladesh. “Yes, our import and consumption of cotton will increase this year too, as in previous years,” said Mehdi Ali, general secretary of the Bangladesh Cotton Association. The import and consumption of cotton in Bangladesh has been swelling over many years due to higher shipment of cotton-made garment items and increasing number of spinning mills in the country. Both Ali and Saha stated that the price of yarn would remain stable in the country. The latest report of the United States Department of Agriculture (USDA) also mentioned of higher crop production, price fall and higher import of cotton by Bangladesh in the cotton year of 2017-18. The import of cotton in Bangladesh will increase by 100,000 bales from 7.1 million to 7.2 million bales in 2017-18, the USDA data showed. One bale equals 480 pounds or 218 kg, and the cotton year begins on August 1 and ends on July 31. Bangladesh is the largest importer of cotton in the world after China stopped sourcing the raw material from outside of the country three years ago. Local growers can meet less than 3 percent of the annual demand, leading to the imports worth over $3 billion. The demand for the natural fibre is on the rise in Bangladesh as it is the only country that is still mainly dependent on raw cotton to make yarn and fabric. Other countries have shifted to manmade fibres like filament, polyesters and viscose. As a result, the global consumption of cotton has been on the decline. By the end of 2020, cotton consumption in Bangladesh will hit 7.9 million bales, said local importers. Currently, Bangladesh imports 55 percent of its demand for cotton from India, thanks to favourable prices, geographical proximity, shorter lead time and the quality of the fibre. The global supply of cotton has been increasing as recently the State Reserve of China announced an extension of sales to September 29 from the previously scheduled August 31, as has been expected by many observers for some time. If sales through the end of September maintain the rate seen so far, total sales will be about 13.3 million bales, the USDA said.

Due to a more optimistic yield forecast, this month's report featured a large increase to the US production number, with the projection rising by 1.5 million bales, from 19 to 20.5 million. If realised, this would be the first crop year since 2006-07 that the US produced more than 20 million bales. Even with a large upward revision to the 2017-18 forecast for US exports from 13.5 to 14.2 million bales, the addition to production caused the estimate for US ending stocks to climb significantly higher from 5.3 to 5.8 million bales. The current projection indicates that US stocks at the end of 2017-18 will swell to more than twice the volume in storage at the end of 2016-17 from 2.8 million bales in 2016-17 to 5.8 million bales in 2017-18. Global production increased by 1.9 million bales, from 115.4 million bales to 117.3 million bales. If realised, this would be the largest world harvest since 2014-15. The global mill-use forecast was mostly unchanged by about 375,000 bales more, from 117 million bales to 117.4 million bales.

With the upward revision to global production exceeding the upward revision to global mill-use, the projection for global ending stocks increased by 1.4 million bales, from 88.7 to 90.1 million bales. The lower price of cotton may affect garment prices as well, said Cotton Incorporated in an analysis. The sourcing costs of garment could decrease by 6 percent to 7 percent. In reality, upward pressure on costs from rising wages and other non-fibre costs like that of dyestuffs may partially offset decreases in sourcing costs made possible by lower cotton prices, added Cotton Incorporated.

Source: The Daily Star

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Ghana : Apparel expansion project launched in Accra

The Ghana Apparel Manufacturing Expansion Programme has been jointly launched by President Nana Addo Dankwa Akufo-Addo, and the US Ambassador to Ghana, Mr Robert P. Jackson to provide training for 1,337 people and create 1,187 new apparel-making jobs. The project, which is under the Global Development Alliance (GDA), is expected to provide gainful employment to more women who would constitute about 80 per cent of recruits and would substantially increase new apparel exports from Ghana to the US within a duty and quota-free regime under the African Growth and Opportunities Act (AGOA). Essentially the agreement is between Dignity DTRT (Do The Right Thing), a mainly Ghanaian-owned business entity that exports apparel manufactured in Ghana and the United States Agency for International Development (USAID). The DTRT Group is West Africa’s largest apparel manufacturer and exporter and currently, Dignity DTRT Limited employs more than 1,600 skilled workers with about 75 per cent of them being women mainly from the streets and low income households.

Exploiting AGOA opportunities

Speaking at the launch of the project at the Adjabeng Free Zone Enclave, in Accra yesterday, President Akufo-Addo said the government was in the process of finalising Ghana’s new Africa Growth and Opportunity Act (AGOA) export strategy and action plan to boost the volumes of exports to the United States to $500 million by 2020. Reckoning that with Ghana unable to sufficiently exploit the AGOA opportunity, and, thereby, not realising any significant gains, President Akufo-Addo said the government was working to put measures in place to ensure that the country took full advantage of the U.S. market through the AGOA initiative. Ghana exported items worth only US $29 million to the United States in 2016. The President said “we aim at increasing our export volumes under AGOA to $500 million in 2020, which will create in its wake hundreds of thousands of jobs. The target is ambitious, but certainly achievable.” The Dignity DTRT is set to export $30 million worth of clothing to the United States of America by 2018, under AGOA. Dignity DTRT, President Akufo-Addo said, was a key part of the projection for increasing Ghana’s export volumes under AGOA to $500 million by 2020, while the company was expected to contribute some $82 million out of this amount. President Akufo-Addo said the U.S. clothing market was worth US$100 billion dollars a year and that the countries of Eastern and Southern Africa were currently exporting several billion dollars’ worth of clothing every year to that market. “We, in Ghana and West Africa, must match them. The opportunity is considerable, and we need to grab hold of it,” he held.

Govt to support textile industry

Towards that end, the President pledged the support of the government for textile and garment businesses and enterprises across Ghana in order to create jobs that provide security for individuals, families and communities. He said it “falls squarely within our overall vision of making the development of the textile and garment industry a strategic anchor industry for Ghanaian industrialisation.” President Akufo-Addo said the Dignity-DTRT project consistent with his government’s vision to make Ghana an industrial hub in West Africa to drive the socio-economic development of the country. “From a growth rate of 15.1 per cent in 2008, the last year of the government of the outstanding Ghanaian statesman, His Excellency John Agyekum Kufuor, former President of the Republic, growth in industry slumped to 0.8 percent in 2014, -0.3 percent in 2015, and further down to -1.4 percent in 2016,” he said. He recounted that as a result of the relative normalisation of the power situation in the country, and the implementation of our business-friendly policies, industry, for the first quarter of 2017, recorded an impressive growth rate of 11.5 per cent, describing it as the highest sectoral growth in the economy. Applauding the efforts of DTRT, the President said it had within a short space of three years, created a thriving, commercial-scale manufacturing operation that was achieving world-class levels of production efficiency. “This has led it to become the largest clothing manufacturer in West Africa,” he added.Unlocking the full potentials of the private sector The President reiterated that the goal of his government was “to unlock the full potential of the private sector and the Ghanaian sense of enterprise to create jobs and prosperity for all Ghanaians, and to position Ghana as a preferred investment destination.” The US Ambassador to Ghana, Mr Jackson said “we are pleased to support Dignity DTRT’s expansion which will create jobs and result in the expansion of DTRT’s AGOA eligible exports from Ghana by at least US$20 million annually.” The Managing Director of Dignity DTRT Limited, Ms Salma Salifu said the company was delighted to partner with the USAID to provide on-the-job and pre-hire training to young Ghanaians who were beginning their careers in the apparel sector.

“This support from USAID will allow us to nearly double our workforce and greatly expand our production capacity,” she said with optimism.

Fact file

Dignity DTRT produces in excess of 25,000 shirts daily and has exported more than six million garments in the past 24 months to the USA under AGOA. The company is 51 per cent owned by Dignity Industries, a wholly Ghanaian-owned and 49 per cent DTRT Apparel Limited, a Ghanaian-registered company with American ownership with offices in San Diego, California. The partnership started in 2014 with 145 sewing machines and has the capacity to expand to 3,000 workers in the next year.

Source: Graphic Online

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Sustainable Textile School

More than 30 international specialists from across the textiles industry will gather in Chemnitz for the premiere of the Sustainable Textile School, which will take place from 18-20 September, organised in collaboration with Chemnitz University of Technology, Gherzi Textil Organisation, and many international, national and regional partners. For three days experts from research and industry will share their knowledge about how the various businesses across the textile value chain can be transformed towards a sustainable approach. “To foster knowledge diffusion and train future generations of textiles experts, not only researchers and practitioners will have the opportunity for fruitful exchange, also students will have the chance to participate through a special sponsorship,” the organisers explain. The focus is to enable professionals and students from all branches of the industry to have a close look at all value-added stages under the focus of sustainability.

Source: Innovations in Textiles

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