The Indian textiles ministry is busy finalising the long-pending National Textiles Policy, but the government cannot offer a time-line for its announcement, said textiles minister Smriti Irani recently. Three different steering committees comprising experts and industry representatives are trying to find ways to address the sector’s challenges, she said. The challenges include identifying natural fibre growth possibilities and global best practices and roping in states for proper certification of jute seeds, she said at a press conference. The proposed policy, under discussion for several years, was initially reported to have set a target of achieving $300 billion in textile exports by 2024-25 and creating around 35 million new jobs. The pending textiles policy notwithstanding, the ministry has been continually identifying the biggest needs of the industry and addressing them by announcing big steps, Irani added. (DS)
Source: Fibre2fashion
Tirupur: A two-member team from the Uttar Pradesh government visited Tirupur to invite knitwear industrialists to invest in a textile cluster to be formed in their state. As part of their two-day programme, Mrityunjay Kumar Narayan, the secretary to UP chief minister, and Sunil Yadav, assistant director of handloom and textiles, visited garment manufacturing units at Nethaji apparel park in New Tirupur and other places, before having a discussion with members of South Indian Hosieries Manufacturers Association (SIHMA) at their office on Wednesday. Ahead of UP Investors Summit, which will be held on February 21-22, the representatives presented their offers for the interested industrialists. Uttar Pradesh was the seventh state to send its representatives. Earlier, Madhya Pradesh, Gujarat, Karnataka, Andhra Pradesh, Telangana, and Odisha have sent their representatives to woo the industrialists. “Comparing to other states, UP’s offers - subsidies in capital and machinery investments and transportation expenditures, tax benefits, employee provident fund and employee state insurance - were found to be attractive. The UP government team said that they have planned to have special purpose vehicle (SPV) and textile parks to establish needed infrastructure,” said Shashi Agarwal, joint secretary of SIHMA. “They have invited the industrialists to participate in their state’s investors’ summit. They may even have further visits here, if needed. Since Tirupur which has seemed to be attained saturation point in the knitwear business was posing labour shortage and other issues, the industrialists may look for investment options in the states like UP. With a significant part of the industry’s labour force is constituted of people from UP, Bihar, Odisha and north-eastern states, it would be an advantage to get sufficient labour if such investments were made,” Shashi pointed out. However, the industrialists have admitted that there was no significant migration of such investments in any of the states which were trying to attract the textile sector investments from Tamil Nadu. Because, it would not be easy for other states to replicate the Tirupur’s successful model, they added. “Since the textile industry is one which can help to generate large number of employments, many states, of late, were trying to woo Tirupur industrialists. There would be expertise in each processes including embroidery and printing in the cluster, which could be thrived significantly with proper knowledge sharing,” said Raja M Shanmugham, president of Tirupur Exporters’ Association. Even if those states provide attractive investment offers, it would not be more difficult to get either skilled labour force or raw materials or processing units there. For instance, the Karnataka government was trying to lure the industrialists to set up units in an industrial estate in Chamarajanagar district on Tamil Nadu-Karnataka border, there were no takers, said S Govindappan, vice-president of SIHMA.
Source: The Times of India
Minister of Textiles Zubin Irani On Tuesday said that reclassification of MSMEs and 5 percent reduction in tax on annual turnover of companies up to Rs. 250 crore will help manufacturing and increase employability in textiles sector. Briefing media in New Delhi Irani said increase in customs duty on silk and manmade fibre will discourage cheap Chinese textile products from flooding the market and benefit domestic manufacturers in the power loom sector. Of the Rs. 6000 crore special package, which was announced in 2016, for the textiles sector, Rs. 1800 crore have already been released and Rs. 300 crore will be released during the current financial year, the Minister informed. She also spoke about 100 % increase in allocation for skill development in Textiles sector. The correction in the GST rates on hand made and machine made garments has created ease of doing business in these sectors, the Minister said. GST rate has been reduced on yarn from 18% to 12% and GST on job work has been brought down from 18% to 5%. Support for merchandise scheme has been enhanced from 2% to 5% for the apparel sector. Irani attributed 16 percent growth in apparel sector to the effective implementation of subsidy schemes. Rs.138 crore has been disbursed to 28000 weavers as Mudra loan and 1.8 lakh garment workers have formally joined Employees Provident Fund Organisation (EPFO).
Source: SME News
NEW DELHI (Reuters) - A top Indian cotton-growing state has told two local companies that seeds they sold to farmers may have contained traces of an unapproved GM strain from Monsanto, according to government notices seen by Reuters that warn of action against the firms. U.S. agrochemicals company Monsanto Co told Reuters late last year that local seed companies have attempted to “incorporate unauthorized and unapproved herbicide-tolerant technologies into their seeds” for profit, leading to the proliferation of illegal seeds, according its own internal investigation and that by the southern state of Andhra Pradesh. Indian seed firms deny this. The authorities say they are still investigating how the strain has seeped into Indian agriculture. The southern state of Andhra Pradesh last year launched an investigation after finding nearly 15 percent of its cotton acreage was planted with an unapproved variety of genetically modified seeds developed by Monsanto, which dominates India’s cotton seed market. A panel of officials inspected some seed production plots and commercial cotton fields and collected “leaf samples” that tested positive for the Monsanto’s Roundup Ready Flex (RRF) strain, which is engineered to tolerate common weedkillers. Farmers told the officials the seeds that produced the positive tests were from brands marketed by Kaveri Seed Co Ltd and Nuziveedu Seeds Ltd (NSL), according to “show cause” notices sent to the Indian companies on Jan. 29 by the office of the state’s commissioner of agriculture. The notices, which were reviewed by Reuters, do not refer to any other evidence linking the seeds to the two companies. Both companies deny any wrongdoing. Using unapproved GM strains is illegal and the state earlier said criminal charges can be brought against those found guilty under India’s Environment Protection Act. “Any Genetically Modified Crop in India should be released for commercial crop use only after approval of Genetic Engineering Approval Committee (GEAC),” the notices read, referring to a committee of experts under the federal environment ministry. They asked the companies to explain within five days why their cotton seed licenses “should not be suspended/cancelled”. Contacted by Reuters, Kaveri Seed and NSL said the seeds were not sold through their dealers or distributors. The state authorities should not have issued the notices without further supporting evidence, they said. NSL later said a court in the southern city of Hyderabad had stayed, or suspended, the notice on Wednesday. Reuters could not immediately confirm that with the court. An official in the state agriculture commissioner’s office, which sent the notice, said it was not aware of any case filed by NSL. Spokesmen for the Andhra Pradesh government and the federal environment ministry in New Delhi declined to comment on the investigation or the companies’ responses. India approved the first GM cotton seed trait in 2003 and an upgraded variety in 2006, helping transform the country into the world’s top producer and second-largest exporter of the fiber. But India has not approved any other GM crops on concerns over their safety, and large foreign companies have been increasingly unhappy at what they say is the infringement of their intellectual property by widespread planting of unapproved seeds. Authorities in the southwestern state of Maharashtra are also investigating illegal cotton planting. Monsanto said using its unapproved technology in seeds could leave Indian farmers “vulnerable to exploitation by opportunistic companies”, because they could lose their crops if found to have knowingly planted such seeds. “We appreciate the efforts being taken by the authorities to curb the sale of illegal and unapproved seeds,” said a Monsanto India spokesman. “We will continue to extend our cooperation in the investigation and efforts to halt the sale of such unapproved products.” Monsanto pulled an application seeking approval in India for the RRF variety in 2016 following a dispute over how much the company should charge in royalties to license its technology to local firms. (reut.rs/2jbDq80)
FINDINGS DISPUTED
Kaveri Seed and NSL are among India’s top 10 seed companies, according to market estimates, and both had agreements with Monsanto to license its GM cotton technology. NSL said the Andhra Pradesh investigating committee should not have issued the “show cause” notice - an official demand that the company explain its actions - based solely on what farmers had told them. “Under the law, the samples have to be drawn in our presence and after ascertaining the source of the seeds purchased by the farmer,” NSL company secretary Narne Murali Krishna said in an emailed statement. “The farmer might have grown a crop from anybody’s seeds.” NSL said Monsanto and its Indian partner had failed to prevent the spread of seeds used in its trial. Monsanto denied that and said it fully complied with Indian regulations. NSL had replied to the notice and was confident that it would, as a result, be withdrawn by the state’s agriculture department, Krishna said, declining to share the content of the company’s reply. None of the seed samples collected from NSL warehouses and distributors by government officials tested positive for the herbicide-tolerant traits of Monsanto’s strain, he said. Government officials declined to comment on the matter. Kaveri Seed has also replied to the show cause notice, said G. V. Bhaskar Rao, its chairman and managing director. “Sending notices based on the statements made by a few farmers is unprofessional,” Rao told Reuters. “We are not at all producing anything which has any trace of RRF and authorities are always welcome to come and check samples at our seed production centers.” A senior Andhra Pradesh official, who did not wish to be identified because he was not authorized to speak to the media, said interviewing farmers was the only way the committee could trace the source of illegal seeds. “Since planting is over and we can now only collect leaf samples, we will have to rely on farmers to trace the origin of seeds,” he said. Monsanto, which is being bought by Germany’s Bayer for $66 billion, has been at loggerheads with local seed firms, including NSL, and India’s government over how much it can charge for its GM cotton seeds, costing it tens of millions of dollars in lost revenue a year.
Source: Reuters
S Annathurai has been cultivating cotton for the past 10 years on his four-acre patch in Sithali, a nondescript village in Perambalur district. But this year he is sceptical. "No one could even imagine the trouble we underwent because of cotton. I don’t know if I would ever grow cotton again,’’ the farmer says. The sprawling cotton fields of Perambalur, with specks of white sprouts, look enticing, but for 18-year-old Loganathan, they were a death trap. Hospitalised after inhaling toxic pesiticides he sprayed on the cotton plants last year, he shudders at the near death experience he underwent. Annathurai and Perambalur are survivors of the pesticide poisoning that claimed at least nine Bt cotton farmers, leaving many hospitalised in Perambalur and Ariyalurdistricts between October and December last year. Government sources, however, peg the number of deceased at two. Even though it’s been more than a month since the National Human Rights Commission (NHRC) sought an ‘action taken’ report from the state government in this regard, the latter is yet to respond on the same. In October last year, Annathurai was rushed to the hospital after developing nausea, diarrhoea and dizziness one morning. He was treated for days. Only after getting discharged, he learned that R Raja, his neighbour, who was also a Bt cotton farmer had died. The reason: Over exposure to pesticides. A scared Annathurai once again rushed to the government hospital at Kunnam and got himself thoroughly checked. "The day before I fell sick I was spraying pesticide in my cotton field. I was told that the pesticide was the culprit. This has not happened in the past," he said. Annathurai considers himself fortunate to live for another harvest. But his fellow farmers R Raja and S Selvam were not. The two died in October. Human rights activists who visited the villages on a fact finding mission say seven more people died and several dozen have been hospitalised since then in Perambalur and adjoining Ariyalur districts due to constant exposure to pesticides. V M Parthasarathy of Safe Food Alliance says the government response was too little and too late to stem the problem in the beginning, pointing to the state government's silence on the NHRC report. Senior officials in Perambalur and those in state agriculture department, however, say that they were not aware of any such notice. "But we have held a series of awareness meetings for farmers. We have also recommended relief for the two deceased cotton farmers," said Perambalur collector V Shantha. Joint director of Agriculture R Sudarshan said the department reached out to nearly 1,000 cotton farmers across the district, through 15 awareness programmes between December 2017 and January 2018. Agriculture department officials said farmers should have nipped off the cotton crops at the early stage (when they were up to the hip level) instead of letting them to grow beyond five feet. Farmers were more exposed to pesticides while spraying them on tall plants as they had to raise their hands to do it and in turn inhaled more fumes. Activists, decry the government’s attitude of blaming farmers instead of helping them out. "When we went on a fact finding mission, we found the government machinery was apathetic and insensitive. Rather than addressing the problem, the government apparatus is blaming the farmers," said Parthasarathy. Others demand a ban on select pesticides. "Punjab has banned monocrotophos, the key pesticide used by Perambalur farmers. There is no reason why Tamil Nadu government cannot issue similar orders," said Saravanan from People’s Union for Civil Liberties, a member of the fact finding team. "It is clear that pests and crop diseases are the result of the so-called modern agriculture, new age seeds and cropping," says Swaminathan of Kuranganni Cotton Growers Group, which promotes traditional cotton variety as against Bt cotton.
Source: PTI
The Maharashtra government has decided to promote short duration varieties of Bt cotton from the next cotton year following the severe pink bollworm attack on the crop this season. The Central Institute of Cotton Research in Nagpur has recommended short duration varieties of cotton. The Maharashtra government has decided to promote short duration varieties of Bt cotton from the next cotton year following the severe pink bollworm attack on the crop this season. According to Maharashtra agriculture commissioner Sachindra Pratap Singh, the state government has decided to stop renewal of licences for the long duration varieties and has notified seed companies to provide a list of the short-term, medium-term and long-term varieties of cotton. The Central Institute of Cotton Research (CICR) in Nagpur has recommended short duration varieties of cotton and there are several such varieties of Bt cotton available in the market, he said. “The long duration varieties are barely 20-30% of the total production. However these end up causing losses to farmers,” Singh pointed out. For the past three months, the government has been attempting to educate farmers that they should not go in for extended pickings beyond March. Singh, however, admitted that this is a difficult task since poor farmer does not realise the relevance of not opting for extended pickings. As a result, the pink bollworm infestation has reached the seed itself, he pointed out. According to him, cotton in the northern and other states is cultivated in 100% irrigated areas and therefore farmers in these regions go in for rabi crops. In contrast, in Maharashtra cotton is cultivated in dry land areas and therefore farmers have a single crop and they go in for extended pickings of cotton beyond March and April and the cycle is not being broken, Singh said. Keshav Kranthi, former director of CICR who had extensively worked on this issue, had said that the simplest and most potent way to overcome the problem is to take up timely sowing and cultivate early maturing short-duration varieties of about 150 days duration. Besides, other strategies such as avoidance of excess urea and insecticides, use of light traps, pheromone traps, bio-pesticides, biological control etc are also used. CICR has been attempting to persuade farmers to go in for very high density planting of early-maturing, short-duration varieties at the rate of 44,000 plants per acre for Vidarbha, Marathwada and Telangana which, it says, will help the crop escape bollworm infestation altogether and leave more on the table for farmers. Farmers do not initiate ant control measures against any bollworms on Bt-cotton. Senior officials at CICR said that they have been issuing advisories to farmers to avoid long-duration varieties/hybrids in rain-fed farms, especially in the absence of any form of protective irrigation. Short-duration varieties get adequate soil moisture during the critical flowering and fruiting phase and escape bollworm attacks during squaring-flowering stage but farmers sometimes tend to continue since cotton is still available for picking.
Source: The Financial Express
When Lenzing started its Indian set-up in 2006 it was pretty small in terms of resources and also in terms of volumes. Lenzing was selling around 300 to 350 tonnes a month in India most of which was viscose staple fibre (VSF) and small quantities of Modal informed Mr. S. Jayaraman Commercial Director - Asia Pacific & South Asia Lenzing. Addressing the discussions on Innovations in ‘Sustainable Fashion at 6Degree Studio during Lakmé Fashion Week Summer Resort 2018’ Mr. Jayaraman informed that during 2006 Pallavaa Group headed by Mr. Durai Palanisamy was the biggest buyer virtually lifting the entire quantity of Lenzing’s VSF exports to India. From 2006 onwards Lenzing expanded its foot-print in north east central and south of India and has expanded its base within the country. Today Lenzing sells around 12000 tonnes per month in India Mr. Jayaraman revealed. He said that 4 major pillars have made this growth possible. The first pillar Mr. Jayaraman said are the ‘Lenzing Partners’. While acknowledging that without the support of Lenzing partners and their aggressive expansion plans innovative ideas the Lenzing growth story would not have been possible Mr. Jayaraman underlined the fact that value-creation has been the common goal of Lenzing and its Indian partners. The second pillar Mr. Jayaraman said is the “Indian Sub- Continent’. The textile infrastructure of Indian industry from spinning to garmenting and retail is world-class in terms of quality and quantity. The textile expertise that we have is unmatched. Most of the textile set-up in the region of East Asia South East Asia Indonesia Vietnam Philippines and Bangladesh are run by Indians he informed. The ‘population’ is the third pillar Mr. Jayaraman said. Population helps in converting fibers into garments leading finally to consumption. On account of the above 3 pillar Indian Subcontinent is turning into ‘world’s textile factory’ he pointed out. The last pillar is the unique fibres from ‘Lenzing’ Mr. Jayaraman said and added that over the last few years have witnessed multiple growth of Tencel volumes in this part of the world. Tencel is finding its way in many applications wide acceptance due to its superior attributes he concluded.
Source: Tecoya Trend
Kumar Mangalam Birla-led Grasim Industries is planning to invest more than $1 billion in capacity expansion of its viscose and chemicals businesses. “The investments will help the company to scale up its viscose capacity by 58% to 788 ktpa (kilo tonne per annum) and chemicals capacity to 1.14 mtpa (million tonne from annum) from 854 ktpa,” Sushil Agarwal, whole-time director, Grasim, told The Hindu. Internal accruals “All the investments will be funded through internal accruals of the company,” he said. Grasim reported a 17% fall in its third quarter consolidated net profit to ₹786.9 crore due to loss from subsidiaries. Revenue rose 78% to ₹15,523 crore as the company merged Aditya Birla Nuvo with itself. The cement assets of Jaypee Group were also merged with the firm. “Of the ₹6,440 crore, investments, ₹5,260 crore will be invested for viscose business and ₹646 crore towards chemicals business,” Dilip Gaur, MD, Grasim Industries, told The Hindu. The company said had received environmental clearance for expanding the production of viscose staple fibre (VSF) capacity at Bharuch, Gujarat that would entail an investment of ₹2,560 crore. Talking about results, Mr. Agarwal said, “The results are to be seen in a context as operationally we have done very well. Our 28% stake in Idea has pulled down our bottom line. After merger with Vodafone, our stake in the merged entity will fall below 14%.” On outlook, the company said the VSF business would continue to focus on expanding the market in India by partnering with the textile value chain. The demand for caustic soda in India is expected to grow with rising consumption from the alumina and textile sectors.
Source: The Hindu
Uzbekistan and South Korea plan to launch a modern textile Techno Park in Tashkent in September 2018. This was announced by the head of the State Investment Committee of the Republic, Azim Ahmedkhadzhayev, at the first Uzbek-Korean meeting on economic cooperation issues on February 13. The new facility will be created on the territory of the Tashkent Institute of Textile and Light Industry. The project is financed through grant funds provided within official development assistance program of the Korean government. About $15 million will be spent on construction, acquisition and installation of technological equipment, as well as training of personnel. The organization of transfer and introduction of the most modern South Korean innovations at Uzbek light industry enterprises is among the main goals of the Techno Park. Main objective of the techno park construction is introduction of the brand-new South Korean innovations and conduction of joint research works in the sphere of material science, dyeing and finishing production, fabric design as well as development of alternative energy sources. High-tech three- and five-storey buildings with office premises, as well as a separate building with a total useful area of more than 10,000 square meters for organizing pilot production using energy-intensive technologies equipped with solar panels will be constructed within the project. In addition, over 4,000 square meters of the territory will be allocated for several buildings, which will accommodate training classes, conference rooms, exhibition spaces, laboratories, offices, greenhouses and other facilities. A modern experimental and scientific laboratory will also be located nearby. It will be equipped with the latest samples of the leading weaving, knitting, dyeing and finishing equipment and sewing equipment. It is expected that the installation of the equipment will begin in March 2018. Construction and installation work will be completed by mid-2018 and the Techno Park will be commissioned in September 2018. The establishment of the Techno Park is expected to raise the Uzbek light industry to a qualitatively new level of development and improve the training system for the sector. Textile industry of Uzbekistan is considered to be one of the most dynamic and socially important sectors and ranks high among export-oriented industries of the country’s economy. The Uzbek textile industry is mainly focused on cotton, silk and wool. One of the policy priorities of Uzbekistan, the world’s fifth-largest cotton exporter, is further development of its textile industry. Annually, the country grows about 3.5 million tons of raw cotton, produces 1.1 million tons of cotton fiber. Uzbekistan takes consistent steps to increase the volume of cotton fiber processing. In particular, it is planned to create 112 modern, high-tech industrial factories, expand, modernize and technologically upgrade 20 operating capacities. All this will increase the export potential of the industry up to $2.5 billion a year and create more than 25,000 jobs. In the period 2010-2014, the textile industry of Uzbekistan received and spent foreign investments worth $785 million while 147 new textile enterprises with participation of investors from Germany, Switzerland, Japan, South Korea, the U.S., Turkey and other countries were commissioned. Export potential of these enterprises amounted to $670 millions. Currently, Uzbekistan continues to attract foreign investments for construction of textile enterprises in the country.
Source: azernews
ISLAMABAD: Federal, Secretary Ministry of Commerce and Textile Industry, Muhmmad Younas Dhaga on Wednesday said that it was priority of the government to evolve comprehensive Strategic Trade Policy Framework (2018-23) for increasing country’s trade. Owing to government prudent trade policies, country’s exports increased in last three months and are expected to reach at $ 23 billion in coming months till June, 2018, Secretary Commerce said this while addressing to consultative sessions for the Strategic Trade Policy Framework 2018-23 with the business community of the country here on Wednesday.The consultative sessions for the Strategic Trade Policy Framework 2018-23 with the business community was organized by Ministry of Commerce and Textile Industry here. Secretary Commerce said that the objective of organizing the consultative sessions across the country with business community, think tanks and academia is to deliberate on existing STPF 2015-18, point out its loopholes, and identify current issues from stake-holder’s viewpoint. He said that in recent negotiation with China and Indonesia on Free and Preferential Trade Agreement, the government was successful for getting tarrif reduction facility on top exports of the country. He informed that in the upcoming STPF, Ministry of Commerce is devising the Long, medium and short term trade policy for the period of five years so that trade could benefit from the incentives announced in STPF 2018-23. The major focus of STPF would be upon boosting exports in the Technology and Services Sector, competitiveness and investment linkages, particularly attraction of Foreign Direct Investment (FDI) in the export related Industry and integration of local industry into global value chain. He emphasized upon the stakeholders for their concrete proposals based upon proper research of markets and data, for their consideration by Ministry of Commerce and incorporation of the same in the upcoming STPF 2018-23.
On the occasion business community of the country, appreciated the efforts of Ministry of Commerce and Textile Industries for considering consultation with the traders. In consultative meeting Vice President of Federation of Pakistan Chamber of Commerce and Industry (FPCCI) hailed the government efforts for consulting the with business community to make consensus on STPF 2018+19.
Source: Business Recorder
Vietnamese garment-textile firm Viet Tien Garment JSC has set a target of grossing $1 billion in export turnover by 2020 with an annual average growth of 10 per cent, according to its director general Bui Van Tien. The company will take steps to improve the efficiency of its projects, expand investment and shift toward green production to realise this goal. The company will invest in new production technologies, particularly automation, and business administration, expand human resources training and improve workers’ living standards by upgrading the pay structure, according to a news agency report from Vietnam. It plans to launch emulation campaigns to enhance productivity, encourage thrift practice, increase value-addition and focus on developing brands and distribution channels, trying to become a multinational economic group. Last year, Viet Tien earned $627.1 million in revenue. Pre-tax profit hit nearly $30.7 million, while export turnover was estimated at $871 million, of which revenues from the Japanese market made up 32 per cent, the United States 22 per cent, and the European Union 17 per cent. (DS)
Source: Fibre2fashion
ISLAMABAD, (UrduPoint / Pakistan Point News - 14th Feb, 2018): “The Government’s assurance to release all pending refunds and rebates by 15th February, 2018 again turned as an eye wash as exporters’ refund worth billions of rupees still yet to be released. Exports cannot be increased with mere lip service but actually requires practical steps and measures by the Government to facilitate exporters. The Government must fulfil its promises and immediately release of refunds of Pending Sales Tax Refunds, Customs Rebates and DDT Claims.” This was stated by Chairman, Pakistan Apparel Forum, Muhammad Jawed Bilwani. Bilwani highlighted that approximately Rs.200 billion of the Exporters are held up by the Government in Pending Sales Tax Refund Claims, Customs Rebate Claims, DLTL & DDT Claims, Income Tax Refunds. The Government instead of giving statements of hope should pass immediate Orders to instantly release payment of refund claims so that exporters could be relieved in these most difficult times when they are facing the severest ever liquidity crunch otherwise Government’s hard efforts to increase exports will go in vain as inordinate delays in textile exports refunds have severely hampered the pace of industrial growth and export efficiency. He articulated that textile export sector is the backbone of Pakistan’s economy earns major amount of foreign exchange and revenue for the Government. Besides, the sector is also labour-intensive and largest employment provider and generator, especially for women workers. He focused that to overcome the challenges, to provide an enabling business environment in country and to create level playing field for textile exporters it is crucial that the Government, instead of lip-service, must take practical steps and measures to facilitate the textile export industry in real sense while according priority to resolve their issues and problems and immediately release long pending refunds of textile exporters.
Source: Urdu Point
Trucks line up at a checkpoint on Phnom Penh’s Chroy Changvar peninsula set up to check for overloaded and illegally modified trucks on Sunday. Hong Menea the Garment Manufacturers Association in Cambodia (GMAC) has appealed to Prime Minister Hun Sen to delay a crackdown on oversized trucks, which has already forced more than half of the vehicles serving the garment industry off of the roads since it was called for by the premier on Friday. In an open letter posted to their Facebook page yesterday, GMAC said the government’s enforcement push “posed a new threat to the garment, footwear, and traveling goods sectors, which are facing an increasingly competitive global market and shorter orders from buyers”. The letter called on the government to issue temporary permits for oversized trucks and to amend the prakas responsible for banning some oversized vehicles to bring it more in line with international standards. Kaing Monika, deputy secretary-general at GMAC, acknowledged yesterday that any problems were the fault of the private sector for not complying with legal requirements regarding truck length, but said the crackdown would have negative effects for the garment sector if it wasn’t modified in the next few days. “It is a serious issue, because transportation companies don’t dare to drive and have not accepted orders for their services from factories because their trucks do not comply with the law,” Monika said, adding that most of the trucks were used trucks imported from the US and EU, where they met proper safety standards but “do not meet the standards of our country, which is limited to only 16 metres” in length. The garment industry produces the vast majority of Cambodia’s exports and employs more than 700,000 workers. GMAC’s public appeal is the latest indication of a rising wave of concern from the private sector over the prime minister’s policy pronouncements, which have intensified along with the government’s crackdown on the opposition Cambodia National Rescue Party late last year. As part of his populist campaign, Hun Sen has sought to woo garment factory workers, who make up a large voting bloc, by raising wages and increasing social safety net benefits for employees. But those actions have left business leaders concerned about rising prices in the Kingdom. In the past month, industry leaders have warned that persistently high logistics costs, rising wages and lax customs enforcement are threatening foreign investment levels in the Kingdom. Sin Chanthy, president of Cambodia Freight Forwarders Association, a trucking industry body, said yesterday that most of the vehicles being stopped in the crackdown were not illegally modified, but simply exceeded the 16-metre legal limit. Chanthy said that he had met with Transportation Minister Sun Chanthol last night to ask if trucks of 16.8 and 17.55 metres could also be allowed, but added that an immediate solution was not likely. “There is no solution yet, as this issue cannot be solved at the ministry,” he said yesterday, adding that the minister had promised to raise the issue with other members of government. “If we get the permission as suggested, then we will solve the problem, because 90 percent of trucks would comply with the law.” Problems related to this most recent crackdown emerged even before it officially went into effect. In leaked audio on Friday, Hun Manith, the prime minister’s son, could be heard admonishing officials who had begun the crackdown several hours early, saying it was possible that blame for their over zealousness could land on his father.
Source: The Phnom Penh Post
• CPI data show apparel prices climbed 1.7 percent in January.
• This marks the biggest increase since 1990.
• Many retailers are coming off a strong holiday season, with leaner inventory levels.
Inflation's impact on retail
The Consumer Price Index on Wednesday revealed that apparel prices climbed 1.7 percent in January, accounting for about 3 percent of the overall CPI and marking the biggest increase since 1990. The monthly report by the Labor Department also showed that women's apparel costs jumped a record 3.4 percent during the month. The news comes after many retailers celebrated a stronger holiday season, leaving them with leaner inventory levels and less of a need to hold flash sales and offer deep discounts at the start of 2018. Apparel prices have been in a deflationary cycle for many years, as companies have been pressured to ramp up promotions to move merchandise off the floor. But that appears to be changing. So far this year, retailers "didn't have to go through fire sale prices to get rid of this stuff, so they've been able to maintain more of a price integrity stance," Craig Johnson, president and founder of Customer Growth Partners, told CNBC. Secondly, there has been "a rebound in some of the up-market [or more expensive] apparel retailers," Johnson said. "When you get stronger performance from up-market retailers, you get higher price points that are selling ... and that moves up the nominal price point for apparel." Names like Canada Goose and Moncler for winter coats have been flying off the shelves thanks to a handful of snow storms. Other luxury retailers including Coach parent Tapestry and Michael Kors, which also offer apparel, have reported stronger earnings of late and are optimistic about fiscal 2018. Anthropologie and Free People, which are owned by Urban Outfitters, are also boding well. While high-end apparel retailers are starting the year on a high note, Johnson also anticipates the off-price sector (i.e., TJX, Ross Stores and Burlington) will continue to ride out its successful trajectory. Brands might not be discounting their merchandise as much initially, he said, but there is still a glut of apparel inventory that won't be sold and will eventually end up in the hands of off-price companies for marking down.
Source: CNBC
A surge in U.S. apparel costs helped fuel above-forecast inflation for January, sending Treasury yields higher on Wednesday. But the era of markdowns for struggling retailers is far from over. Clothing prices, which account for 3 percent of the consumer price index, jumped 1.7 percent in the biggest monthly gain since 1990, Labor Department data showed Wednesday. That helped the so-called core CPI, which excludes volatile food and energy costs, to rise 0.349 percent, above the 0.2 percent median estimate of economists. Economists had penciled in some payback in apparel prices in January after heavy discounting during the holiday season, though not this much. The latest gain followed declines of 0.3 percent in December and 0.9 percent in November, and prices remained 0.7 percent below a year earlier. One big boost in January came from women’s apparel costs, which jumped a record 3.4 percent. Why so much price volatility? Apparel doesn’t have the appeal that it once enjoyed among shoppers. In 1977, Americans spent 6.2 percent of their household budgets on clothing, according to government data. These days, it’s half that, as shoppers now choose to spend more cash on travel, activities, and technology. Low-cost fast-fashion chains such as H&M, Zara, and Forever 21 have opened hundreds of stores across America over the past decade, driving clothing prices down. “The trend in apparel prices has in general been more down than up in the past few years,” said Stephen Stanley, chief economist at Amherst Pierpont Securities LLC. “If we’re going to see an uptick in inflation on a sustained basis, I don’t think apparel will be one of the main sources.” Without the boost from apparel, the core CPI would have advanced slightly less than 0.3 percent, according to Stanley and JPMorgan Chase & Co.’s Michael Feroli. Granted, the overall consumer price gauge also rose a more-than-projected 0.5 percent from the prior month, indicating broad-based inflation is gaining some traction and renewing investor concerns that the Federal Reserve will raise interest rates at a faster pace than anticipated. “We generally think the inflation numbers will be moving higher this year,” said Feroli, JPMorgan’s chief U.S. economist. Apparel “is one of the more volatile categories.” The clothing price surge was also reflected in apparel sales, which climbed 1.2 percent in January from the prior month. Those figures, released separately Wednesday by the Commerce Department, were part of an otherwise bleak report showing sales fell in seven of 13 major retail categories, amounting to a weak start to first-quarter consumer spending. Coming months may help shed more light on whether retail results, which aren’t adjusted for price changes, are getting propped up by firmer inflation or by growth in household demand. It’ll also provide fodder for the ongoing debate on the impending demise of traditional retailers. In recent years, clothing and accessories brands have been retreating from department stores and outlet locations in an effort to reduce markdowns. Consumers became accustomed to heavy promotions as retailers slashed prices to attract more shoppers. Now such labels as Ralph Lauren and Kate Spade are trying to wean customers off discounts and return to full-price options.
Source: Kim Bhasin/Shobhana Chandra
Directa Plus, a producer and supplier of graphene-based products for use in consumer and industrial markets, has two new textile collections containing its Graphene Plus (G+) – one by Colmar, the high-end sports and activewear company, and the other by Eurojersey, a producer of high quality warp-knit technical fabrics, under its Sensitive Fabrics brand. Both collections were unveiled at ISPO 2018, the sport and sportswear international trade fair held in Munich. The launch of the Ski Winter 2018/19 collection marks Colmar’s third winter range with Directa Plus. The new collection has 31 garments incorporating G+, including male and female ski jackets and, for the first time, graphene-enhanced ski trousers. It follows the commercial success of two previous ski collections, with last year’s collection including the Technologic G+ ski jacket that received the Gold award in the ‘Ski’ category at ISPO 2017, as well as spring/summer garments. Eurojersey has launched its first range of G+ enhanced textiles to be marketed under its leading Sensitive Fabrics brand. The collection of high quality, warp-knit technical fabrics is designed for high performance targeting the sportswear, athleisure and underwear sectors. Directa Plus and Eurojersey have been collaborating over the last year to conduct joint research and development. A selection of Sensitive Fabrics enhanced by G+ will be introduced to the fashion industry at the Première Vision Paris conference and exhibition during February 13-15. The company is receiving increasing interest in G+ from the textiles industry due to its ability to sustainably produce a highly-performance fabric that is independently certified as non-toxic, non-cytotoxic and hypoallergenic for human skin. The inclusion of G+ in textiles leads to a technologically-advanced fabric with unique thermal features: homogeneous distribution of heat produced by the human body in cold weather and heat dispersion effect in hot weather. G+ also provides the fabric with a bacteriostatic effect that enhances hygiene and anti-odour features, which is particularly relevant for sportswear and garments that are in contact with the body. The result is enhanced comfort for the wearer. Giulio Cesareo, chief executive officer of Directa Plus, said: “Colmar and Eurojersey are two partners with which we have developed deep, strong relationships, based on our shared passion for innovation and sustainability. It is therefore extremely pleasing to see both companies launch new collections incorporating Graphene Plus. The considerable interest we received at ISPO for our graphene-based products is testament to the high-performance qualities that they bring to garments, which are enjoyed by professionals and sports enthusiasts alike. We look forward to expanding our existing relationships and establishing new partnerships with global companies as we continue to enhance our position in the textiles market.”
Source: Fibre2Fashion
KARACHI: Pakistan Apparel Forum Chairman Muhammad Jawed Bilwani has said that the government’s assurance to release all pending refunds and rebates by February 15, 2018 again proved just an eyewash as exporters’ refund worth billions of rupees are yet to be released. He said that exports cannot be increased with mere lip service, but practical steps and measures by the government to facilitate exporters. “The government must fulfil its promises and immediately release pending sales tax refunds, customs rebates and DDT claims. “Bilwani highlighted that approximately Rs200 billion are held up by the government in pending sales tax refund claims, customs rebate claims, DLTL and DDT claims, and income tax refunds. According to a release, the government should pass immediate orders to instantly release payment of refund claims. Otherwise, the government’s hard efforts to increase exports will go in vain as inordinate delays in textile exporters’ refunds have severely hampered the pace of industrial growth and export efficiency, added the statement. He said that to overcome the challenges, provide an enabling business environment in the country and create level playing field for textile exporters, it is crucial that the government take practical steps and measures to facilitate the textile export industry.
Source: Fibre2fashion
The China National Textile and Apparel Council (CNTAC) and the Organisation for Economic Cooperation and Development (OECD) recently inked an agreement to promote responsible business in global textile and apparel supply chains. The joint vision will connect efforts by suppliers, brands and buyers, creating more synergy, said CNTAC vice president Chen Dapeng. According to OECD deputy director of financial and enterprise affairs Mathilde Mesnard, OECD will have the opportunity to cooperate on the development of a Chinese-owned due diligence guidance for the textile and apparel supply chain that is aligned with OECD guidance but adapted to the Chinese context. “In recognition of China’s incredibly important role in this sector, with almost 40 per cent market share, this is a step towards furthering our collective ambitions for a global level playing field for companies in the textile and apparel sector on responsible business conduct,” an OECD press release quoted him as saying. This work is a direct outcome of the China-OECD Joint Programme of Work from 2015-16 and will seek to contribute to the aims of China’s Centre for Responsible Business and Sustainable Development, of which CNTAC is a founding member.
Source: Fibre2fashion
