The Commerce Ministry strongly believes that until issues concerning exports are addressed a mid-term review of the foreign trade policy (FTP) will be meaningless. Commerce Minister Suresh Prabhu has written to Finance Minister Arun Jaitley raising concerns and seeking quick remedies. The five-year FTP (2015-2020) had laid down a stiff target of $900 billion of annual exports by 2020 but lack-lustre performance in the last two-and-a-half years, will compel the government to bring it down drastically. “Annual exports have been lower than $300 billion during the first half of FTP due to issues such as global slow-down and currency fluctuation. While things seem to have improved, a complete recovery and acceleration in growth will be difficult without incentives,” a government official said. Prabhu stressed on improving usability of the scrips earned under the MEIS — the most popular incentive scheme for exporters covering more than 7,000 items — as post-GST the scrips can be used for payment of only customs duties. This has reduced the premium on the scrips (valued at 2-5 per cent of export amount) as earlier it could be used for payment of all input taxes such as central excise duty and service tax. “The Commerce Minister proposed that the MEIS scrips should be allowed to be used for payment of GST,” the official said. He also proposed that the rate of MEIS be increased from 5 per cent to 7 per cent for labour-intensive sectors such as leather, footwear, handloom, handicraft, Ayush, marine products, electronic components and the MSME sector, which suffer the most during a downturn. An enhanced rate from 3 per cent to 10 per cent in the Services Export from India Scheme (SEIS) has been proposed for hotels and restaurants. Ground handling services under civil aviation sector may also be eligible for incentives of 5 per cent. Other proposals include reducing GST rate on sale of MEIS/SEIS scrips to zero per cent, increasing the rate of interest subvention from 3 per cent to 5 per cent for labour intensive sectors, have capital infusion of ₹2,000 crore in ECGC scheme, address working capital blockage due to pay first and then refund principle of GST, exempting merchant exporters from payment of GST and enhancing support for the trade-related Infrastructure for Export Scheme and Enhanced Support For Market Access Initiative schemes.
Source: Business Line
NITI Aayog Vice-Chairman Rajiv Kumar has pitched for fiscal stimulus to boost growth with a rider that additional expenditure should be used only for increasing productivity and capital expenditure. Faced with slowing economic growth, the industry has been clamouring for a stimulus package from the government. “I do see a case for stimulus,” Kumar told PTI in an interview. He added however that additional expenditure should be used judiciously. Kumar’s comments come amid Finance Minister Arun Jaitley saying that he has not promised any fiscal stimulus, but would respond to the emerging situation. Jaitley’s remarks followed increased speculation over a possible fiscal stimulus that can go above ₹40,000 crore after six successive quarters of dip in the economic growth, which slid to 3-year low of 5.7 per cent in the April-June quarter. The Finance Ministry has pegged the fiscal deficit target for 2017-18 at 3.2 per cent of the GDP and 3 per cent for the following year.
Source: Business Line
Pressures on the profit and debt levels of textiles exporters is likely to decline from the third quarter of this fiscal with cotton prices easing from mid-September and the industry focusing on sweating the existing assets and undertaking limited debt-funded capacity additions, according to ICRA. The exporters are facing tough times for the past few months. Subdued demand trends in the key importing countries, including the United States and those in the European Union; competitive pressures from Bangladesh and Vietnam; unfavourable currency movements and high raw material prices in the last few months; and revision in duty drawback rates have added to the woes of Indian textile reports, credit rating agency ICRA said in a report. Despite a large domestic market, this is a matter of concern as exports comprise more than one-third of the Indian textile market it said. Cotton-yarn exports have been under pressure as well due to decline in demand from China, which accounted for more than 40 per cent of total cotton yarn exports from India till last year. Pressures on textile exporters have become more severe with strengthening of Indian rupee against currencies of key competing nations during the current calendar year, which reduced competitiveness of Indian exporters from their counterparts. "Notwithstanding the 2 percent depreciation in the Indian rupee against the US dollar in September, the rupee sustained its strong performance against currencies of most of the countries competing in the global textile space during much of the current calendar year," ICRA senior vice president Jayanta Roy said.
Source: Fibre2Fashion
India’s annual rate of inflation, based on monthly wholesale price index (WPI), declined to 2.60 per cent for the month of September 2017 over same month of last year. The index for ‘Manufacturing of Textiles’ group rose by 0.6 per cent to 113.4, while the index for ‘Manufacturing of Wearing Apparel’ group rose by 0.1 per cent to 136.6 in September. The official WPI for all commodities (Base: 2011-12 = 100) for the month of September 2017 declined by 0.4 per cent to 114.3 from 114.8 for the previous month, according to the provisional data released by the Office of the Economic Adviser, ministry of commerce and industry. The index for manufactured products (weight 64.23 per cent) for September 2017 rose by 0.4 per cent to 113.4 from 112.9 for the previous month. The index for textiles sub-group rose by 0.6 per cent to 113.4 from 112.7 for the previous month due to higher price of texturised and twisted yarn (2 per cent each) and weaving & finishing of textiles, manufacture of cordage, rope, twine & netting and cotton yarn (1 per cent each). However, the price of viscose yarn (3 per cent) and manufacture of knitted and crocheted fabrics (2 per cent) declined. The index for ‘Manufacture of Wearing Apparel’ sub-group rose by 0.1 per cent to 136.6 in September 2017 from 136.5 for the previous month due to higher price of trouser/pants made of cotton and/or mad-made fibre (2 per cent). However, the price of manufacture of knitted and crocheted apparel declined by 1 per cent. The index for primary articles (weight 22.62 per cent) declined by 3 per cent to 130.8 from 134.9 for the previous month. On the other hand, the index for fuel and power (weight 13.15 per cent) rose by 1.7 per cent to 90.7 from 89.2 for the previous month due to higher price of LPG, naphtha, ATF, petrol, kerosene, HSD, furnace oil, and bitumen. However, the price of petroleum coke declined. (RKS)
Source: Fibre2Fashion
The exports of readymade garments from India in September 2017 was recorded at Rs 10,707 crore, up 24.93 per cent over exports of Rs 8,570 crore in the same month of previous year, according to the trade data compiled by Indian Texpreneurs Federation (ITF). The rise in exports is a boost to the domestic manufacturing value chain of textiles. The growth in apparel exports was observed after a decline for two months. The robust retail sales in the festive season will also increase the domestic market demand in the entire manufacturing value chain, according to ITF analysis. The association is hoping to achieve the growth target in the remaining months of 2017 with improvement in volume of exports and domestic demand. During the month, exports of man-made fibre (MMF) textiles, including yarn, fabrics, and made-ups, also witnessed a plunge of 20.49 per cent. The exports totaled to Rs 2,996 crore as against the exports of Rs 2,487 crore in September 2016. For the reported period, the exports of cotton textiles were worth Rs 5,911 crore, up 11.23 per cent as compared to Rs 5,315 crore for the same period in the previous year. "The exports of cotton textiles are increasing consistently and we expect similar performance jump in October 2017," said ITF. (RR)
Source: Fibre2Fashion
The rupee continued its stellar rally for the sixth-straight day and ended at more than three- week high of 64.74 a dollar, surging by 19 paise helped by extremely bullish macro indicators. The overall forex market sentiment got a boost from upbeat export data and narrowing of trade deficit coupled with softening inflation. The record rally in domestic equities too helped the rupee. Extending its strong upmove, the rupee resumed firmly higher at 64.75 against last weekend close of 64.93 at the Interbank Foreign Exchange market due to frantic dollar unwinding by exporters and banks. It later strengthened to hit a fresh intra-day high of 64.69 before winding up the day at 64.74, showing a smart rise of 19 paise, or 0.29 per cent. The RBI, meanwhile, fixed the reference rate for the dollar at 64.7603 and for the euro at 76.3912. India's economic recovery has been patchy of late, post demonetisation and the newly introduced GST regime, but the recent data seems to be suggesting increased optimism, a forex dealer commented. The GDP expansion hit a three-year low of 5.7 per cent in the April-June quarter with India losing the fastest-growing economy tag to China for the second straight quarter. The latest data revealed that India's export soared by 25.67 per cent to USD 28.61 billion in September on rise in shipments of chemicals, petroleum and engineering products. Import too rose by 18.09 per cent to USD 37.6 billion in September from USD 31.83 billion in the year-ago month. Trade balance stood almost flat at USD 8.98 billion in September 2017 against USD 9 billion in September 2016. Bearish dollar overseas along with robust capital inflows also supported the rupee. Overseas investors have pumped a staggering USD 1.5 billion into the country's debt markets in the first two weeks of this month, primarily due to "positive real interest rates" and lower currency volatility. However, in view of higher stock valuations, foreign portfolio investors (FPIs) pulled out Rs 1,775 crore (USD 272 million) from equities during this period. Meanwhile, domestic bourses displayed a spectacular pre-Diwali fireworks with both indices scaling historic peaks on growing optimism for an economic recovery on the back of extremely bullish macro data, also supported by encouraging Q2 earnings from Reliance Industries. The Sensex shot up over 200 points to end at historic high of 32,633.64, while Nifty jumped 63 to close at a life- time high of 10,230.85. On the global front, the greenback traded modestly higher against its major trading rivals after the Federal Reserve chair Yellen confirmed her commitment of gradual interest rate hikes on the back of strong and broad based US growth. The dollar index, which measures the greenback's value against a basket of six major currencies, was trading higher at 93.05 in early trade. In cross-currency trades, the rupee recovered against the pound sterling to finish at 86.10 from 86.30 per pound and hardened against the Euro to close at 76.48 from 76.74 earlier. The local currency, however dropped against the Japanese yen to settle at 57.94 per 100 yens from 57.88 last Friday. In forward market today, premium for dollar displayed a mixed trading owing to lack of market moving factors. The benchmark six-month premium payable in March softened to 121-123 paise from 122-124 paise, while far forward September 2018 contract edged up to 260-262 paise from 259.50-261.50 paise. On the international energy front, crude prices jumped on Monday. International Brent crude futures rose 84 cents, or 1.5 per cent, to USD 58.01 per barrel in early Asian trade, after trading as high as USD 58.15. US West Texas Intermediate crude was at USD 52.16 per barrel, up 71 cents or 1.4 percent.
Source: Financial Express
After hitting the lowest in nine months, cotton price recovered albeit marginally on reports of crop damage due to deficient rainfalls this monsoon season in major producing centres and sudden spurt in its demand from textiles mills. The benchmark Shankar 6 variety of cotton reported an increase of nearly 3 per cent in the last two weeks to trade currently at Rs 10,967 a quintal in the physical market. In futures, however, cotton prices have declined by Rs 200-300 to trade currently at around Rs 11040 a quintal (~Rs 39,300 a candy of 356 kgs each). Traders believe that the extended season rainfalls in October have brought a bounty for cotton crops especially late sown ones across the country. While the cotton output in India is estimated to remain higher this year, the initial crop damage may not be recovered. Still, markets are going to be fully dominated by supplies resulting into a subdued price trend this year. "We expect cotton prices touch Rs 10294 a quintal (~Rs 17,500 per bale of 170 kgs each) during the peak arrivals season in November- December. Currently, lower than expected crop size in the country, reports of the Cotton Corporation of India (CCI) procurement, lower new season arrivals and improved export demand for Indian cotton is supporting prices as prices have improved from the low of Rs 10590 a quintal (~Rs 18,000 a bale) levels in August to currently trading at Rs 11058 a quintal (~Rs 18,800 a bale) levels," said Ritesh Kumar Sahu, an Analyst with Angel Commodities Broking. The Cotton Advisory Board (CAB) in its meeting held in August had forecast India's cotton output to remain higher during 2017-18 than 34.5 million bales reported for 2016-17. Traders and cotton exporters estimate now the cotton crop size at 37.5-38 million bales this year on better use of seed and farm techniques to report least pink ballworm attacks on the standing crop. MCX Cotton Oct futures surged to the higher of Rs 11529 a quintal (~Rs 19,600 a bale) from Rs 10812 (~Rs 18,380 a bale) but corrected steeply to Rs 11058 a quintal (~Rs 18,800 a bale) on expectation of good production during the new season mainly due to extended monsoon rains in October. The prices have surged so much due to unexpected rains in the key growing regions of Maharashtra and Telangana which slowed the arrivals of new season crops. Increase in demand by the millers has contributed to the bullish trend in both the spot and futures markets. But futures have corrected in last three trading sessions due to expectation that the cotton crops in Maharashtra will benefit from the October rains which will enhance the production to late sown crops. In Maharashtra, monsoon rains in the cotton growing areas was deficient during 4 months of monsoon. On the other hand, there is good carryover stocks from the last season. India imported about 1.85 million bales (170 kg per bale) during CY 2016-17 till June, up by 130 per cent compared to previous year imports, as per data released on Department of Commerce. However, exports have been down by 16 per cent in CY 2016-17 to 5.68 million bales compared to 6.77 million tonnes in previous year. Aurobinda Gayan, Head - Commodities, Kotak Commodity, believes that the little mismatch of rain had caused crop damage in the western and southern Indian states. "In the last couple of days, the average arrivals have moved up to around 70,000 bales, a sharp recovery from the lowest level of around 40,000 bales in the first week of October. Going forward, however, we see the trend is likely to continue with supply going to increase further. Thus, markets are likely to remain bearish," said Gayan. Arun Sakseria, a cotton trader and exporter, sees no room for a bullish sentiment in cotton prices this year following a bumper output estimate. Meanwhile, higher input prices (primarily cotton) this year vis-a-vis last year added to profitability pressures for exporters during H1 FY2018, given the cotton-dominance of textile exports from India. While cotton prices have corrected to an extent from mid-September 2017 onwards which is expected to provide respite during H2 FY2018, recent revision in duty drawback rates is likely to exert some pressure on margins, an Icra study said.
Source: Business Standard
The Telangana state agriculture department’s initial assessment shows that 1.13 lakh farmers were affected by the October rain. The continuing unseasonal rain in October has affected 98,000 hectares of sown land in Telangana in the last two weeks, reports Mint. The Telangana state agriculture department’s initial assessment shows that 1.13 lakh farmers were affected by the October rain. Many places recorded rainfall that was overall 100 millimetres higher than the yearly average. Kharif season saw farmers planting cotton crop on 49 percent of farmland, an increase of more than 50 percent from last year to 1.9 million hectares. The unforeseen damage is likely to add to the woes of the state government which had anticipated trouble from cotton farmers. The exact damage to crops will be known only after the rain stops. Data is collected from different parts of the state on a daily basis. A report will be prepared on the basis of that data which will be sent to the state government. The state’s agricultural department data as on October 13 showed 98,000 hectares of crops were affected including73,000 hectares of cotton, 17,000 hectares of paddy, 1,600 hectares for maize, 4,800 hectares for red gram and 1,000 hectares for castor.
Source: moneycontrol.com
Mumbai: State agriculture minister Pandurang Fundkarhas called for a ban on the sale of unapproved genetically modified (GM) cotton seedswith herbicide-tolerant traits. There is growing evidence of the use of such seeds in the state even though the technology is yet to be approved in the country. Currently, only GM cotton seeds with resistance to the American and pink bollworm are approved by the Centre. A team from the Centre's Genetic Engineering Appraisal Committee (GEAC) is expected in the city in November to take stock of the issue. Tests by the Central Institute for Cotton Research (CIRC) showed that herbicide-tolerant GM cotton seeds termed BG 3 are sold and cultivated in the state, said Fundkar. "These seeds are being illegally sold by several companies using different brand names," said the minister. He called for a meeting of the state's biotechnology coordination committee chaired by the chief secretary to enforce a ban on such seed sales. The BG 3 seeds are sold in Gujarat, Andhra Pradesh, Telangana and some other states too, said Fundkar. The government also held a meeting with seed companies to know how the herbicide-tolerant BG 3 had reached the market. "Seed companies performing trials on this technology are supposed to take adequate care that the seeds do not leak out from the research farm," said state agriculture secretary Bijay Kumar. In February, the CIRC tested nine seed samples, and six tested positive for herbicide-tolerant traits. "The GEAC had been apprised of the results," said CIRC acting director V N Waghmare. State government officials said they needed details on the evidence and the tests to take punitive action but were still awaiting these. "Once we receive details we will be able to lodge cases under the Seed Act 2004 for the sale and distribution of unauthorized seeds," said Kumar.
Source: The Times of India
Sircilla: District Joint-Collector Yasmine Basha here on Monday urged the cotton farmers to sell their produce in the purchasing centres that were established by the government and get the Minimum Support Price (MSP) fixed by the State government. The district marketing department inaugurated two cotton purchasing centres under Cotton Corporation of India (CCI), one at the agriculture market in Vemulwada by MLA Chennamneni Ramesh and the other in Sircilla by the Joint-Collector on Monday. Speaking on the occasion, Joint-Collector Yasmine Basha said the moisture content of the cotton must be 8 per cent to get the MSP that was fixed by the government and advised the cotton farmers to take necessary precautions to maintain the moisture content of cotton to 8 per cent. “Following the government’s orders, cotton purchasing centres are opened at two centres in the district. Proposals have been sent to the CCI for opening of another one in Rudrangi,” she added. Very soon the purchasing dates of cotton would be announced, until then, the farmers must take necessary precautionary measures for maintaining the moisture content of cotton, she suggested. Later, Yasmine Basha released the pamphlets with MSP rates for several varieties of cotton. Agricultural Market Committee Chairman J Chakrapani, District Marketing Department Officer Shabordan and District Agriculture Officer Anil Kumar were present along with others.
Source: The Hans India
Sircilla: Golden days are ahead for weaver of the town as their hands are going to be full with work because of orders for weaving dhotis and sarees from Tamil Nadu and Kerala for the Pongal and Onam festival. The weavers, after suffering from financial problems and going through the suicide trend, celebrated the recent Dasara happily because of increasing earnings. Of the total 78,000 power looms situated in the two Telugu states, 34,000 are located in this popular town alone. The weavers of the town were appreciated by the Government of Tamil Nadu for having successfully executed a huge order. It is pertinent to note here that at least 52 lakh sarees, distributed among women for Batukamma festival, were woven by the weavers here. The weavers are striving to regain the past glory of the town, which was rocked by a spate of suicide deaths of weavers in the past. For the forthcoming Pongal and Onam, Tamil Nadu and Kerala governments respectively are making arrangements to give huge orders to the weavers here. Orders from Andhra Pradesh are also in the pipeline. If all these orders materialise, the weaver will be busy for about a year. Tamil Nadu requires 1.72 crore dhotis and 1.73 crore sarees. So agents of the state set their sights on the weavers of Siricilla. Daily weavers of the town produce 1.40 lakh metres of sarees with each power loom producing at least 70 metres a day. The duration to complete the order will be three months. Earlier, the Government of Tamil Nadu gave work to the weavers here directly. But the picture has changed. Some agents are getting the work executed contacting the power loom owners here. The owners will allocate the work to weavers. At least 2,000 power looms are busy weaving dhotis and sarees. The dhotis and sarees are being exported to Kerala market as the people there are fond of the textiles woven by the Siricilla weaver. In Tamil Nadu, the government distributes sarees and dhotis among the people for the Pongal. There is a scope for the Siricilla weavers to get a work order to execute three lakh dhotis and sarees each. In Sircilla, there is a three-tier setup—the owners of power looms, the job workers also known as ‘Asaamulu’ who have their own looms and the weavers down below. The power loom owners give orders to the people who have their own looms who in turn get the orders executed by the weavers. A weaver gets Rs 1.80 per metre of polyester cloth produced. They get Rs 4.70 per metre of the saree produced. Each saree measures 5.5 metres. The weaver gets at least Rs 25 per saree woven. Going by the existing wages, each weaver will at least earn between Rs 20,000 and Rs 25,000 a month. Whatever be the reason, a festive atmosphere prevails in the weaver town.General Secretary of power loom owners Mandala Satyam said that the weavers at last got their due recognition upon overcoming hard times. Then there was uncertainty among weavers about future. If the orders from Tamil Nadu, Kerala and AP are through, the weavers and power loom owners benefit financially. Support from the Government of Telangana is appreciated, he said.
Source: The Hans India
New Delhi: E-commerce major Myntra launched its CSR initiative in association with the Union Textile Ministry, to work directly with weavers and elevate their economic stature. With an initiative to provide impetus to the Government's agenda to transform and revive demand for arts and handloom products in India, the company is committing itself along with some of its partner brands to bring artisans and their products online, providing them access to new customers and opportunities. These products will retail on Myntra via a dedicated online store, thereby creating a one-stop shop for all handloom products. Myntra is also slated to launch a new handloom brand during its upcoming annual Brand Summit, "The Tech Threads" on November 2 in Bengaluru. Textiles and Information and Broadcasting Minister Smriti Irani, who will be present at the event, has been requested to unveil the new Handloom brand. This brand is aimed at reviving timeless Indian crafts, celebrating the beauty and rich legacy of India's cultural heritage. So far, about 49 brands associated with Myntra have pledged to be a part of this initiative and source handloom products from the weaver community. Some of the leading names include, W, Biba, Peter England, Raymond, Welspun, Chennai Silks, Metro among others. About 350 CEOs, VPs and Brand Heads from various companies have confirmed their presence at this event. "It delights us to be a part of an initiative that is engaged in preserving our country's rich textile and cultural traditions. Myntra's first ever CSR program is committed towards rejuvenating and growing the handloom sector by offering necessary assistance to the weavers and garnering maximum support from likeminded brands for the cause. We are also aiming to achieve a ten-fold growth in sales of handloom ethnic wear for women, over the next one year," said Ananth Narayanan, CEO, Myntra and Jabong. Over the next one year, Myntra will directly touch upon the lives of many weavers across the country. Currently, the new brand will showcase crafts such as Paramakudi, Chettinad, Upadda Jamdani Kuppalam, Mangalgiri, Venkatgiri, Mulkalmuru among others, of which Chettinad and Mulkalmuru are languishing art forms. Myntra is working directly with weavers from Kamatagi, a small village in Hungund Taluk of Bagalkot District in Karnataka, where the entire village is involved in Milkalmuru weaving, in order to showcase this languishing art at the national level.
Source: The Hans India
Flipkart-owned fashion e-tailer Myntra has partnered Textile Ministry to work directly with weavers and promote the handloom industry. Myntra, along with some of its partner brands, will work on bringing artisans and their products online to provide them with access to new customers and opportunities, Myntra said in a statement. These products will retail on Myntra via a dedicated online store, creating a one-stop shop for handloom products, it added. Myntra will also launch a new handloom brand during its upcoming annual Brand Summit, The Tech Threads, on November 2 in Bengaluru. So far, about 49 brands associated with Myntra have pledged to be a part of this initiative and source handloom products from the weaver community. These include names like W, Biba, Peter England, Raymond, Welspun, Chennai Silks, Metro and others. "It delights us to be a part of an initiative that is engaged in preserving our country's rich textile and cultural traditions... We are also aiming to achieve a 10X growth in sales of handloom ethnic wear for women, over the next one year," Ananth Narayanan, CEO of Myntra and Jabong, said.
Source: Money Control
LONDON- The global conductive textile market is analyzed in detail in the new report from Transparency Market Research (TMR). The report offers insights on the growth of the market during 2012-2016, offering forecasts for the period 2017-2022. The conductive textile market lies at the crossroads of the textile and electronics industry and has emerged as a vital sector in recent years in widespread applications. The diverse application segments of the global conductive textile market are examined in the report and the market's performance in various regional segments is also examined in order to provide a complete perspective on the growth trajectory of the market.
Global Conductive Textile Market: Dynamics
The major drivers and restraints affecting the trajectory of the global conductive textiles market are examined in the report. Due to the involvement of two industry sectors, the global conductive textiles market witnesses a complicated growth trajectory affected by a number of factors. The diversity of applications of conductive textiles is the key driver for the global conductive textiles market, as it is likely to ensure steady growth of the market in the coming years. The rising use of electronic sensors for a variety of applications is likely to drive the demand from the conductive textiles market, as the utility provided by electronic sensors in accurately measuring various markers in real time has propelled their adoption in a number of sectors. The rising use of biomarker monitors in the healthcare industry and the personal fitness sector is likely to remain a key driver for the global conductive textiles market in the coming years. The rising awareness among various population demographics about health and fitness has driven the adoption of biomarker monitoring devices such as heart rate monitors and step counters, aided by the rising disposable income of urban consumers, at whom these products are primarily aimed. Smartphone integration has also aided the adoption of healthcare monitoring devices, as recording and tracking data has been made easier by the innovation. The role of conductive textiles in this endeavor is likely to rise at a tremendous pace in the coming years. Rising expenditure on military modernization is likely to result in considerable investment in the conductive textiles sector. Modern militaries utilize electronics extensively, leading to conductive textiles becoming highly useful for them in several applications. Conductive textiles are likely to be used in personal clothing as well as several other technical applications in the military and defense sector in the coming years, leading to steady growth in demand.
Global Conductive Textile Market: Segmentation
Leading end users in the conductive textiles market include the military and defense sector, healthcare, sports and fitness, consumer electronics, and other relatively minor end users such as the automotive industry, the aviation sector, and architecture. Nevertheless, automotive applications of conductive textiles could rise in the coming years due to the growing demand for incorporation of driver monitoring sensors, which could lead to the use of conductive textiles in car seats. Geographically, North America is likely to remain the dominant force in the global conductive textiles market, with the market expected to exhibit a solid 5.5% CAGR over the 2017-2022 forecast period. The North America conductive textiles market's valuation is expected to rise from US$340.3 mn to US$445 mn over the 2017-2022 forecast period. Europe is also likely to be a leading consumer of conductive textiles over the forecast period, with the market expected to rise to a valuation of US$340.6 mn by 2022.
Global Conductive Textile Market: Competitive Dynamics
The key companies profiled in the report include Eeonyx Corporation, Laird, PLC, Seiren Co. Ltd, Metal Textiles Corporation, Parker Hannifin Corporation, Toray Industries, Inc., Swift Textile Metallizing, LLC, and 3M.
Source: Market Insider
The government has taken an initiative to allocate 500 acres of land to the country’s readymade garment exporters for setting up an ‘RMG Block’ in the Mirsarai Special Economic Zone of Chittagong. The Bangladesh Garment Manufacturers and Exporters Association on Saturday asked its members to inform the trade body within seven days about their interest in buying industrial plots in the SEZ. In a circular, BGMEA president Md Siddiqur Rahman said that the trade body started talks with the Bangladesh Economic Zone Authority over allocating an area of 500 acres of land in the Mirsarai SEZ exclusively to the RMG factory owners. In the circular, he said that strategically the Mirsarai economic zone was important for the export-oriented industries as the zone is being developed near to the country’s biggest seaport. The zone has already drawn the attention of local and foreign investors and many of them expressed their interest for plots in the zone, Siddiq said. ‘The government is always positive about allocating plots to the RMG factory owners in the economic zone and now we will have to be prepared to get the facility,’ the BGMEA president told New Age on Sunday. He said that the area of land for the RMG sector would be decided based on the response from the RMG exporters as the BGMEA sent letter to its members to inform the trade body about their readiness. According to the BGMEA circular, the area of each plot would be 1 acre and the price of the plot would be Tk 1 crore. Interested RMG factory owners would have to pay 25 per cent of total land price as booking money (non-refundable) and they would get instalment facility to pay the land price. The factory owners who are facing compliance-related issues can relocate their factories to the zone, Siddiq said. As per the rules of BEZA, the investors in the economic zone would get the entire utility services on priority basis, he said. The BGMEA president hoped that all RMG factory owners would be interested to get a plot in the Mirsarai economic zone due to its location.
Source: New Age.
The overdependence on Indian cotton is becoming a cause of concern for local spinners as India itself is turning into a major cotton consumer with an increase in its export of apparel items, industry insiders said. Currently, Bangladesh imports more than 60 percent of its required cotton from India, the single largest source of the raw material for the country. “The overdependence on Indian cotton is a cause of concern for us. We should think of alternatives,” said A Matin Chowdhury, managing director of Malek Spinning Mills Ltd, one of the major local cotton importers in Bangladesh. Bangladeshi spinners import cotton from India because of shorter lead-time, which is very necessary for the garment business in the present context of fierce global competition, Chowdhury said. The prices of Indian cotton are almost the same as those of other countries, he said. The cotton supply from India is not always stable as New Delhi sometimes imposes ban on export when domestic consumption of the raw material goes up. “In such cases, Bangladeshi spinners have to face a dearth of cotton,” said Chowdhury. Backed by a massive stimulus package, India's garment export grew 15 percent year-on-year to $17 billion last fiscal year, which indicates that the country will consume a lot of cotton in the near future. Recently Gujarat Chief Minister Vijay Rupani has announced a new garment and apparel policy that aims to attract investments worth Rs 20,000 crore. According to the plan, 16 new industrial estates would be set up to use cotton grown in the state, boosting the textile value chain from farm to fibre, fabric, fashion and foreign exports. Gujarat is the largest cotton producer as well as the biggest supplier of the raw material to other states. It is time to encourage local entrepreneurs to invest in garmenting, Mumbai-based media outlet Textile Excellence quoted Rupani as saying. Chowdhury said dependency of 35 and 40 percent on a single market is a wise percentage. The US, Australia and African countries can be good sources for cotton for Bangladesh. Since many international clothing brands and retailers have placed restriction on Uzbekistan's cotton for alleged use of child labour, other central Asian countries can also be good sources, he said. Bangladesh is the largest cotton importer worldwide. It overtook China after the latter stopped sourcing for having ample stocks of its own. In 2016-17, some 7 million bales are expected to be imported. One bale equals 218 kg and the cotton year begins on August 1 and ends on July 31. Bangladesh's cotton import will creep up to 7.1 million bales in 2017-18, further consolidating its position as the world's largest importer of the fibre, according to the recent reports of the United States Department of Agriculture. Local growers can supply less than 3 percent of the annual demand, leading to the imports worth over $3 billion. Abdul Hai Sarker, chairman of Purbani Group, another major cotton importer and spinner, said: “We should have the alternative sources for importing cotton as Bangladesh is the largest cotton consumer now worldwide.” The demand for the natural fibre is on the rise in Bangladesh as it is the only country that is still dependent on raw cotton for making yarns and fabrics. Other countries have shifted to manmade fibres like filament, polyesters and viscose, causing global consumption of cotton to decline in recent years. Currently, the ratio of cotton and manmade fibre use is 28:72 worldwide, with a pronounced tilt towards artificial fibres, due to their lower price, improved functionality and ease of use, according to the International Textile Manufacturers Federation. In Bangladesh, more than 90 percent yarns and fabrics are made from cotton.
Source: The Daily Star
A few days after the Vietnam Textile and Apparel Association, or VITAS, came out against a proposed government plan to increase the country’s minimum wage, it now said it has appealed to the country’s government not to impose import tariffs on polyester fiber. VITAS has written to the Ministry of Finance and the Ministry of Industry and Trade urging them to abstain from lifting import tariffs up to 2 percent, saying the move would add to the challenges facing textile and garment exporters. With Vietnam not a major raw material supplier, companies have to import fabric and fibers to produce apparel, and with costs rising, the import duty would further pit factories at risk. VITAS has also proposed the government consider adjusting the insurance premium rates paid by firms to a more reasonable level, so that the enterprises can improve their competitiveness to expand production, and revisit the tax law on the import of raw materials for fabric production. Also recommended was an amendment stipulating the conditions for licensing importers of printers for textile and garment products. “The owner of the enterprise must have a college diploma or higher in the printing industry or be issued a certificate of professional training in print management by the Ministry of Information and Communication,” VITAS said. In the first six months of the year, Vietnam’s textile and garment exports are estimated at $14.1 billion, up 10 percent over the same period of 2016, while imports were up 16.27% to $9.5 billion. Even with the U.S. pulling out of the Trans-Pacific Partnership, Vietnam’s apparel shipments to the U.S. increased 5.6% to $7.7 billion for the first eight months of the year, gaining over a percentage to hold 14.4% of U.S. apparel import market share, according to the International Trade Administration’s Office of Textiles and Apparel. VITAS is also opposing a proposed 6.5% increase in the minimum wage from the beginning of next year, saying the move will reduce competition, shift the labor structure and prevent expansion. The proposed monthly wage hike of $8 to $10 a month is said to be the lowest raise ever offered. VITAS said minimum wage in domestic enterprises increased 21.8% between 2007 and 2017, leading many to reduce workers’ annual bonuses and turn to more automation.
Source: Journal Online
SAN FRANCISCO: The global polyester staple fiber market is expected to reach USD 39.3 billion by 2025, growing at a CAGR of 6.3%, according to a new report by Grand View Research, Inc. Rise in the global consumption of sustainable textiles has been a major factor driving market growth. Growing consciousness regarding the environment and cheaper price of PSF as compared to that of cotton have increased the utilization of PSF in the global market. Polyester staple fiber is lightweight, wrinkle-free, and resistant to light and weather. It also has an ability to withstand extreme climatic conditions. It is used as a key element in various end-use sectors, including apparel, home furnishing, construction, and automotive, which is expected to drive market growth over the forecast period. Rising product demand, owing to its long-term effectiveness, high elastic resilience, tenacity, and eco-friendly nature of PSF, is also expected to boost market growth over the next eight years. Solid PSF was the largest product segment in 2016 and is expected to witness a promising growth rate over the forecast period. Hollow product segment is anticipated to observe a low growth rate by 2025. In terms of revenue, apparel application segment is anticipated to observe the fastest growth over the next eight years at a CAGR of 6.7% from 2017 to 2025. PSF is instrumental in improving the overall quality at a lower price than its alternatives, which is expected to drive its demand. Increasing product usage in Asia Pacific owing to its rising utilization in textile manufacturing industry is also expected to boost demand over the forecast period. Browse full research report with TOC on "Polyester Staple Fiber (PSF) Market Analysis, By Product (Solid, Hollow), By Origin (Virgin, Recycled, Blended), By Application, By Region, And Segment Forecasts, 2014 - 2025" at: http://www.grandviewresearch.com/industry-analysis/polyester-staple-fiber-psf-market
Further Key Findings From the Report Suggest:
Source: PR News
About 1,840 tons of apparel worth close to $22.75 million were exported from Iran during the first half of the current Iranian year (March 21-Sept. 22), indicating a 20% and 24% growth in weight and value respectively compared with the corresponding period of last year. In the last fiscal year (March 2016-17), exports amounted to 3,800 tons worth $46.2 million, up 2.6% in volume and 3.9% in value year-on-year, Tasnim News Agency reported. According to the report, imports of apparel over the same period registered a 2.24% decrease in terms of value to stand at nearly $20.78 million. Based on regulations set by the Trade Promotion Organization of Iran (TPO), import tariffs on apparel are set at 55%. On top of that, importers are made to pay a 9% value-added as well as an additional 4% tax. The above figure on imports does not take into account the vast amount of apparel smuggled into Iran. In fact, clothing tops the list of goods smuggled into Iran. Textile, Apparel and Leather Industry Organization, affiliated to the Industries, Mining and Trade Ministry, said about 90% of foreign clothing are smuggled into the Iranian market. According to the Research Center of Tehran’s Apparel Union, Iranian apparel production meets 40% of domestic demand and apparel smuggled into the country is worth over $6.2 billion. TPO’s figures also confirm the research center’s statistics. Iran Textile Exporters and Manufacturers Association puts the value of Iran’s apparel market at $11 billion. Golnar Nasrollahi, the Ministry of Industries, Mining and Trade’s advisor for textile, apparel and leather industries, said Iran’s annual apparel demand stands at around 510,000 tons per year, while the country’s production capacity is about 300,000-320,000 tons. Plans are underway to establish a new apparel industrial town in Fashafouyeh, located in Tehran Province’s Rey County, with the aim of limiting imports, boosting domestic production and making the price of Iranian clothing more competitive. According to Director General of Textile and Clothing Department at the Ministry of Industries, Mining and Trade Afsaneh Mehrabi, 45 hectares of land have been bought for the new apparel industrial park. “Italian and Turkish apparel producers will be present there for cooperation with Iranian producers,” she said. The Ministry of Industries, Mining and Trade has mandated foreign representatives, branches and distributors of apparel in Iran who seek business licenses to produce goods worth 20% of their import value (in rial terms) inside Iran and to export at least 50% of this domestic production. The initiative, the ministry says, is aimed at increasing domestic production, creating jobs and reviving Iran’s aging apparel industry.
Turkish Brand Made in Iran
Recently, Turkish company LC Waikiki, otherwise known as LCW, became the first major foreign apparel manufacturer to officially start cooperation with domestic garment players.
Speaking to Financial Tribune, Mehrabi said the Turkish company has been in negotiation with Iran’s Ministry of Cooperatives, Labor and Social Welfare and the Ministry of Industries, Mining and Trade for the past eight months and the Turkish side has so far surveyed over 70 apparel factories and manufacturing units in Iran. Iranian clothing company Ronak Jean has been shortlisted. LCW has already placed the order and the Iranian company’s production line has been making clothes for the Turkish brand labeled “Made in Iran” tags for the past few months. “Most of the apparel ordered by LC Waikiki are produced [in Iran] for export purposes and only a small share has been considered for distribution in domestic stores,” Mehrabi said. The first phase of the collaboration will see LCW place orders with selected Iranian apparel makers worth around €20 million in the next year and a half. Mehrabi noted that the planning and implementation of next phases depend on the result and success of the first phase, but the ultimate goal is the establishment of an independent apparel factory in Iran by LC Waikiki. All the exports will be conducted under the parent company’s supervision and management. The apparel, labeled “Made in Iran” under the LC Waikiki brand, will be exported to LCW branches in other countries. According to Mehrabi, considering Iran’s geographical position, the export destinations are highly likely to target Russia, its neighbors and regional countries such as Iraq. The official noted that the whole project is expected to create about 5,000 jobs in Iran. Currently, 9,818 industrial units are active in Iran’s textile and apparel industries licensed by the Ministry of Industries, Mining and Trade, constituting 11% of all industrial entities in the country. These units have created more than 290,000 direct jobs, accounting for 13% of all industrial jobs in Iran.
Source: Financial Tribune
NAIROBI, Kenya — In Rwanda, it's chagua. In Kenya, mitumba. In Zambia, salaula — most African languages have a word for the piles of discarded garments that end up for sale across the African continent. Millions of people around the world donate clothes annually with the understanding that they will go to the needy or will be resold in secondhand stores. However, while charities do financially benefit from some of the donated garments, many more enter a secondary marketplace governed by free market principles. A thriving and lucrative industry has emerged out of clothing outcasts that provide work for armies of resellers, distributors and market stall holders in developing markets like. India or East Africa. But like any other business sector, there are winners and losers in this complex and booming trade. The average American throws away 70 pounds of textile waste every year, according to the Council for Textile Recycling, so diverting clothing away from landfills and giving it a new life may seem like a good idea. But the mass influx of cheap hand-me-downs from Western countries has had a negative impact on local apparel industries and production in low-income countries. Used clothing in good condition, which entered the supply chain as a donation, undercut new clothes produced locally. To this point, the governments of the East African Community (EAC) — the regional organisation that comprises of Kenya, Rwanda, South Sudan, Tanzania, Burundi and Uganda — plans to outlaw all secondhand clothing imports by 2019, in a bid to boost domestic manufacturing. Donating your used garments might be well-intentioned but they may be doing more harm than good. “Donating your used garments might be well-intentioned but the situation on the ground means they may be doing more harm than good,” Dr Andrew Brooks, a lecturer in development geography at King’s College London, wrote in his book “Clothing Poverty: The Hidden World of Fast Fashion and Second-Hand Clothes.” While exact continent-wide figures are hard to come by, global used clothing exports from OECD countries stood at $1.9 billion in 2009, according to 2011 UN Comtrade data. Recent figures from the UN show that an estimated 80 percent of Africans wear secondhand clothing. Interestingly, the US has recently hit back at the East African Community’s proposal to ban secondhand imports. Claiming that it would impose “significant hardship” on the US clothing industry and put 40,000 jobs in jeopardy, the US Trade Representative (USTR) has threatened to impose trade sanctions on African nations and launched a review of AGOA, a trade agreement that allows tariff-free access for thousands of goods from 38 African nations to the US. Trump’s ‘America First’ agenda has already seen him withdraw from the Trans-Pacific Partnership (TPP), threaten to tear up the North American Free Trade Agreement (NAFTA) and seek to renegotiate the US-South Korea free trade deal. It’s currently not clear whether the US will withdraw, suspend or limit AGOA before it expires in 2025 — all of which would have a significant impact on the EAC. The trade deficit for many African countries is already stark. Imports from Rwanda, Tanzania and Uganda to the US totalled $43 million in 2016, while US exports to the same countries amounted to $281 million, according to figures from the USTR. Currently, more than 66,000 jobs in Kenya are linked to AGOA, which earned the country 35.2 billion Kenyan Shillings (about $341 million) in textiles and apparel exports in 2016. While they are popular with value-conscious consumers who get branded garments at low prices, discarded clothes are also a huge problem for India — the world’s biggest importer of secondhand clothing, according to 2013 UN Comtrade data — and many other developing countries, such as Poland, Pakistan, Ukraine, Chile and Guatemala.
Tracking the Journey
So, how exactly does discarded clothing end up in a Polish thrift store or a night market in Mumbai? The journey begins when clothing is discarded and cannot be sold in a charity shop, such as Salvation Army or Oxfam, both which could not be reached for comment. Currently, only 20 percent of the clothing donated to charities actually get sold there, according to the Council of Textile Recycling. The rest goes into landfills — despite the fact that most textiles aren’t biodegradable, which means they can sit around for more than 200 years. Others are sold to textile merchants, who sort, grade and export the garments, converting what began as donations into tradable goods. What clothing goes where depends on the type of garments. KCL’s Brooks found that white shirts frequently ended up in Pakistan, where there is a great demand among young professionals, while warmer coats often headed to Eastern Europe. Meanwhile, t-shirts and shorts go to India or Africa, where they can be sold for as little as $1.50 in street markets at Kanda, a seaport in the Gujarat state of India, or Gikomba in Nairobi, the biggest secondhand clothing market in East Africa. Used clothing comes under two categories: wearable and mutilated. A government license is required for companies that want to import ‘wearable clothes.’ It also comes with the condition that they can be re-exported, as a precaution, so that undesired clothes don’t flood the market and hurt local businesses. But this is where the problem lies, says Bandana Tewari, editor-at-large at Vogue India. “In India there is a massive business of smuggling. The real bulk of imports — about 60 percent — are mutilated clothes. But when the Indian government planned to increase the number of licenses, The Clothing Manufacturers Association Of India went up in arms saying that the market would be flooded with used clothes and put domestic manufacturers out of business.”
The Winners and Losers
While the secondhand clothing sector poses a major problem for those who work in conventional apparel industries, it is a lifeline for others. The Textile Recyling Association, which manages secondhand clothing recyclers and distributors in Kandla, employs some 3,000 people every year. Meanwhile, Frip Thique, an Oxfam-run social enterprise in Senegal, enables workers — most of whom are women — to earn a decent living by sorting and selling clothes to local market traders. According to the charity, all profits go towards fighting poverty in the West African country. “Not only am I able to take care of more people, but also my parents and my sister who are in the village,” writes Dieynaba Coly, a staff association representative and clothes sorter, in a testimonial on Oxfam’s website. Some used clothing can be recycled for good. “The influx of secondhand clothes has turned Panipat — a town about 90km from New Delhi — into Asia’s biggest textile recycling hub. One of the biggest companies in Panipat is Pal Woollen Industries, which creates 10,000 kilograms of yarn a day from 20 tonnes of used clothes. The yarn is then used for making blankets, school blazers and red-and-black check fabric that is popular among the Masai population of Tanzania and Kenya,” says Tewari. Goonj, a non-profit organisation in India, reuses cloth to make reusable sanitary pads for rural women. “In many parts of India, women still use newspapers, mud and ash during menstruation,” she adds. Clothes are an essential item and if they become more costly, poor families will suffer the most. But those benefitting the most are “the exporters in the US and UK, along with others involved in the trade, such as the wholesalers. This applies to [some of the] importing countries. It also includes consumers in developing countries, who can purchase good quality clothes for a fraction of their original price,” says Linda Calabrese, senior research officer of the Overseas Development Institute (ODI), an independent think tank on international development and humanitarian issues. Calabrese argues that halting the trade of secondhand clothing isn’t the right approach and won’t enable the development of textile industries in developing countries alone. “The garment sector [in developing nations] needs more investment to expand production capacity. The sector is currently not receiving a lot of new investment to expand production capacity, and costs are outweighing profits. Transport is expensive, getting skilled workers is expensive, the energy supply is unreliable and costly compared to other regions, such as Southeast Asia.” It could also have undesirable effects, like promoting illegal trade and smuggling in banned imports, if the population has to choose between buying new imported garments, or buying domestically produced second-rate goods. “Clothes are an essential item and if they become more costly, poor families will suffer the most,” says Calabrese, but adds: “To be fair, I think that East African governments already have a very good understanding of the existing challenges and are trying to address them.” It’s possible that the proposed ban won’t pass. The thousands involved in the secondhand clothes trade in Africa will know their fate once EAC leaders meet for the November summit, during which the issue is expected to surface. Kenya is among the countries that have since withdrawn the ban, while governments in Uganda and Rwanda have raised taxes on used clothing by 12 percent and shoes by 15 percent. But it remains to be seen if Africa can create or revive local manufacturing industries — which collectively could double from $500 billion in 2016 to $930 billion by 2025, while spending by African consumers and businesses could reach $5.6 trillion over the next decade, according to McKinsey & Co. “I’m worried that the phase-out will send the wrong signal, encouraging investors to focus on the domestic market,” says Calabrese. “What is needed in East Africa is an increased focus on the export market [so that] more goods can be sold internationally. This is what much larger countries have done, including China and Bangladesh, who are global leaders in garment production.” “At the end of the day, this is a big volume, low margin business. [Middlemen] are making millions of dollars for their own organisations or social projects, but not much impact is being made to help the really poor in third world countries, [especially] as the business is so unregulated and opaque,” says Tewari. “Once worn and torn by the poor, millions of clothes go into third world landfills, far from the affluent countries. Where is the accountability of first world countries dumping used goods on third world grounds?”
Source: The Business of fashion
Report summary : Mexican textile and apparel exporters could lose a substantial share of the US market if Donald Trump fulfils his pledge to renegotiate or terminate the North American Free Trade Agreement (Nafta). Under the agreement, Mexican textiles and apparel are allowed to enter the USA duty-free and quota-free, and exports to the USA have soared since the agreement was implemented in January 1994. But Mr Trump has condemned Nafta as being "the worst trade deal ever made" and "very, very bad for our companies and for our workers".Any loss of share by Mexican exporters would create a gap in the US market which Mr Trump hopes to fill with textiles and apparel made in the USA—thereby creating employment opportunities for American citizens. However, efforts at "reshoring" have met with only limited success in the US textile and apparel industry and Mexico's success in the market segments it serves is due largely to its low labour costs which the USA cannot match. It is likely, therefore, that the gap will be filled mainly by suppliers based in countries with low labour costs such as Bangladesh, Cambodia, China, Honduras, India, Indonesia, Sri Lanka and Vietnam. Of these, Honduras stands out as a potential candidate for picking up share from Mexico if Nafta is renegotiated or terminated. Like Mexico, Honduras, is a Spanish-speaking country. Also, it is in relatively close proximity to the US market. Consequently, suppliers in the country are well placed for meeting demand for fast fashion and quick response. Also, like the industry in Mexico, Honduras has a vertical supply chain with strengths in yarn and fabric production as well as in apparel manufacture. Moreover, Honduras, like Mexico, benefits from duty-free and quota-free access to the US market under a free trade agreement—except the free trade agreement from which Honduras benefits is the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR). Honduras has invested heavily in technology to ensure that textile manufacturing in the country is environmentally sustainable. The country has reliable sources of energy, including renewable energy sources such as biomass and Latin America's largest above-ground photovoltaic generator. Moreover, the textile and apparel industry in Honduras has attracted US$1.5 bn recently in strategic investments and, according to an investment promotion agency in the country, the Honduras Country Brand Program, the industry is positioned to become one of the top global suppliers of synthetic yarns and activewear. Multinational companies such as Fruit of the Loom, Gildan and HanesBrands have long been in the country, and have chosen Honduras as the site of many of their modern manufacturing facilities. Honduras is already the USA's number one supplier of cotton T-shirts and the number two supplier of fleecewear, and its goal is become the USA's fifth most important apparel provider in value terms, up from seventh in 2016.
Source: Knitting Industry
Angolan textile firm Alassola entered the exports business recently by sending its first 15 containers containing 156 tonnes of cotton yarn to Portugal, company chairman Tambwe Mukaz said in Lobito. He said such exports to Portugal will allow the company to overcome the lack of foreign currency in Angola and to import raw material and continue production. It is for the first time since Angola got independence from Portugal that the country has exported textile products to its former colonial master. More such yarn shipments will be sent soon, according to a report on a website dedicated to developing trade ties between China and the Portuguese-speaking world. Based in the municipality of Benguela in Angola’s central coastal region, Alassola took over the Africa Textil factory, which was inaugurated in 1979 and went bankrupt in 2000. It recovered after a five-year long modernisation process with an investment of $450 million. (DS)
Source: Fibre2Fashion
Many cotton growers were on the doorstep of a fine harvest before Harvey hit the Gulf Coast. As Dan Fromme walks a cotton field near Baton Rouge, Louisiana, he sees the promise and optimism from earlier in the season has been replaced by disappointment. Fromme is the cotton specialist for the LSU AgCenter. He says a wet growing season has reduced farmer’s yields in many parts of the state.”A lot of them are kind of disgusted, so I think we might actually see acres drop off next year, especially here in central Louisiana,” said Fromme. According to the LSU AgCenter, acreage has decreased from nearly 1 million acres 15 years ago to this year’s crop of approximately 215,000 acres. While Tropical Storm Harvey did contribute to lower yields, Fromme believes yields were already suffering from wet weather, insects and diseases. On Thursday USDA’s World Agricultural Supply and Demand Estimates (WASDE) showed cotton production was reduced by 643-thousand bales. The drop off was largely in Texas and Georgia from hurricane damage. As Hurricane Harvey made landfall in Texas, it decimated the cotton crop in counties that were in the direct path of the storm. The Texas Farm Bureau says just 70 percent of cotton in Matagorda county had been harvested before the storm, while only 35 percent was out of the ground in Wharton County. The rest of the state’s cotton was spared. Unfortunately, poor weather late in the growing season has also resulted in subpar cotton yields for many Texas cotton growers. Dr. Jourdan Bell, Texas A & M AgriLife Extension agronomist said the combination of high temperatures and sunny days have been few and far between since August. “Across the Panhandle, cotton is in boll development; however, the maturity level of the bolls varies drastically between varieties and even between fields as a result of planting dates,” said Bell. Meanwhile, Alabama cotton growers are still assessing the damage from Tropical Storm Nate. Dallas County farmer Wendy Yeager said damage was less than anticipated. “I expected it to be flat on the ground,” said Yeager, whose farm looked to produce two-bale or more cotton before the storm. “God is good. This could have been so much worse. It could have all been not harvestable and on the ground.” According to the Alabama Farmer Federation, 20 percent of the bolls on Yeager’s crop was open, and more susceptible to rain and wind damaged, when Nate blew through. The latest USDA cotton production forecast shows farmers will produce 21.1 million bales this year, down 3 percent from USDA’s September forecast. While trimmed from last month, it’s still 23 percent above last year’s levels.
Source: Wes Mills
More recently the issue was the two weeks starting in late September with cool temperatures and heavy cloud cover. Still, if October stays warm and sunny then cotton growers, on average, are expecting a good year. So long as a freeze doesn’t come early, highs in the 70s and 80s are exactly what farmers need. “It has been been a roller coaster,” said Steve Verett, executive vice president of the Plains Cotton Growers. “But what I’m hearing from most folks is that we’re still in pretty good shape … people are saying it’s not going to be that big giant crop we may have thought it was going to be, but it’s still going to be a very good crop. That’s the best way I know to sum it up.” Verett looked at some numbers, and said farmers in the 40-plus counties that make up the Plains Cotton Growers’ produced an average of 3.65 million bales of cotton a year in the past decade. The latest projection Verett saw for this year had the high plains producing 5.12 million bales. Verett said some growers are having a difficult year, no question, but production as a whole should be better than average. Those cooler temperatures in weeks past delayed the maturity of cotton, said Wayne Keeling, an agronomist with Texas AgriLife Extension Service in Lubbock. Although unfortunate, he said, it’s not that unusual for this time of year — but for farmers who had to plant late or replant, this cool spell came at a time when they really needed sun. “Generally you don’t get that many cloudy days together, but again, I think on the early crop that wasn’t too negative,” said Keeling. “By now you pretty much have all the bolls you’re going to make and you just want to mature those out, mature the fiber in those bolls. When you get cloudy days and cooler temperatures, you just slow that boll development. The fact that we’re getting so late in the season, it’s hard to make that up.” With a warm October leading into harvest, Keeling said, for most their cotton should reach a good growth point. Barry Evans, a cotton grower in Swisher County, said this has been his experience. “Overall we got a good crop in the ground,” said Evans. “We’ll be OK. We just won’t have those top-end grades like we did last year. We missed those heat units when we typically get them, but we’re a long way from a wreck.” Seth Byrd, a cotton specialist at Lubbock’s Texas AgriLife Extension Service, isn’t just blaming this recent weather. He said it’s been a challenge for farmers all year. Byrd said weather was a little too cool around planting time at the beginning of May, and it was followed by a hot period with rough wind. July was good with rain and sunlight, but in August, Byrd said, that rain just kept coming. The rain came with little sunlight, which Byrd said was a challenge. Then in late September, cloud cover remained for several weeks. “From the start of this season, from the time we planted, we’ve been battling just to stay on track,” said Byrd. “People planted late, people replanted, and we had late emergence all because of the weather … when you limit light temperature, you really limit the amount of growth and development you can do. You can’t build that fiber, you can’t build that fruit-load, you can’t fill bolls when you don’t have sunlight and heat.” According to information from the Lubbock National Weather, only .58 inch of rain fell on Lubbock County in May, which is when farmers needed that original moisture during planting. Then in July Lubbock received 5.84 inches of rain, which is 3.93 inches above averages, and in August received 4.85 inches, which is 2.94 inches above average. This doesn’t take into account sunlight, and Byrd said the heat accumulation was below average in August. Circumstances for each grower vary — this year maybe more so than others. A dry planting season followed by wind and heavy rain scattered throughout the South Plains forced some growers to replant at different times. Continuous cool temperatures in the northern Panhandle appear to have essentially ended the growing season early, while other growers further east in the northern Panhandle and in lower elevations have reportedly had good weather. Scattered weather events have impacted growers differently. Call it luck in location. Doug Hlavaty is a cotton farmer in the Lubbock area who said he lost nearly a third of his cotton crop, about 1,600 acres, due to hail and strong wind he was hit with in early July. Hlavaty then planted corn in that high-impacted area. Despite that early setback, Hlavaty said, the cotton seems to be coming in alright. “The cotton that we kept looks pretty good,” he said. “We still have some thin places that won’t be as good as we thought, but overall we should make more than we did last year. But we made an average crop last year while a lot of people made a really good crop.” Byrd said the optimism right now is coming from the October forecast, which is showing highs in the 70s and 80s. “Right now we’ve actually got probably the best conditions we’ve had in a while to mature some bolls,” said Byrd. “What I’m telling folks is to take advantage of these warm days. If you need to mature bolls, hold off. Let’s let the weather do a little work. If you need to spray a harvest aid, do it while we’ve got the good weather. We don’t know how long this is going to last, so we need to take advantage of it while it’s here.” Hlavaty was on his way to spray harvest aid Friday afternoon when he spoke to A-J Media. What would be bad for farmers is if a hard freeze came earlier than expected — the general rule of thumb in Lubbock is that the first freeze typically happens around Halloween. “If you had a killing freeze or a hard freeze tomorrow night or next week, we’d be in trouble,” Byrd said last week. “We’d not like to see that. We’d like to see some days to get some bolls open and get some fiber to mature.” Darren Hudson, professor of agriculture and applied economics at Texas Tech, said he expects an average to an above-average yield. Nationally, he said the cotton yield may come in higher than it has in a decade. “It’s a normal year, which is to say it’s very inconsistent across the area,” said Huston. “That’s typical. We get so much variability in weather across the area — who had moisture when, that kind of thing. Some areas had more weed pressure than others, or bug pressure, things like that. It’s largely just moisture and wind, especially in the early season.”
Source: Lubbock Online
A modern $92-million textile unit will be built in Uzbekistan by the Namangan Sharbati joint venture, the National Bank for Foreign Economic Activity and Ozbekyengilsanoat joint stock company by late 2018. The factory will annually produce 10,000 tonnes each of polyester fibre and yarn, 20 million meters of mixed fabrics, and 7,000 tonnes of blended linen. The factory will be exempt from paying corporate income tax, value added tax and mandatory contributions to the Republican Road Fund under the Uzbek finance ministry till January 1, 2022, Sputnik Uzbekistan reported recently. It will also be exempt from customs payments for imported equipment, components, chemicals not manufactured in the country. Around 132 investment projects worth $2.2 billion are planned in the Uzbek textile industry till late 2019, the report added. (DS)
Source: Fibre2Fashion
China's central bank governor said the economy could grow 7 percent in the second half of this year, accelerating from the first six months and defying widespread expectations for a slowdown. The uncharacteristically explicit growth forecast by Zhou Xiaochuan came just days ahead of a twice-in-a-decade Communist Party Congress, where President Xi Jinping is expected to strengthen his grip in a leadership reshuffle. While China produced forecast-beating growth of 6.9 percent in the first half, many economists and investors had expected momentum would start to fade later in the year. Those views are largely predicated on three factors: higher borrowing costs; increasing curbs on home buying to cool soaring prices; and government-mandated shutdowns of some steel mills and factories in coming months to reduce winter air pollution. But the driving force behind growth has been mainly rising household consumption, Zhou said in remarks published on the People's Bank of China's (PBOC) website on Monday. “China's economic growth has slowed over the past few years...but economic growth has rebounded this year, with GDP reaching 6.9 percent in the first half, and may achieve 7 percent in the second half,” Zhou was quoted as saying at the G30 International Banking Seminar in Washington on Sunday. Zhou, the country's longest-serving central bank chief, is likely to step down next year, sources told Reuters. Investors are waiting to see if sustained economic growth this year will give China's leaders the confidence to quicken and deepen reforms, though many say Beijing continues to rely too heavily on debt-fuelled stimulus. The government had set a 2017 growth target of around 6.5 percent. Zhou's estimate implies an expansion of about 6.95 percent, topping growth rates in 2015-2016. Economists had expected growth to ease to 6.8 percent in the third quarter and 6.6 percent in the fourth quarter, but the impact of the pollution shutdowns is a major wild card. “Growth in the second half will be slower...I don't think 7 percent growth is very possible,” said Xu Hongcai, deputy chief economist at China Center for International Economic Exchanges (CCIEE), a prominent think-tank in Beijing. “Investment and consumption growth have eased. And foreign trade is not likely to be as strong as in the first half.” The International Monetary Fund last week reiterated its stance that there may now be a now greater chance of a sharp slowdown in China, if authorities delay the withdrawal of hefty stimulus as they focus on achieving growth targets. China will report third-quarter gross domestic product (GDP) on Thursday. September data so far has shown imports and bank lending grew more than expected, while exports picked up. On Monday, data showed producer prices jumped 6.9 percent in September on-year, confounding views that producer inflation had peaked. A year-long construction boom has helped boost prices for building materials and resources from steel and copper to iron ore, helping to create a reflationary pulse worldwide in commodities markets and manufacturing.
Source: Reuters.
