Amended Technology Up-gradation Fund Scheme provides for capital investment subsidy to facilitate technology upgradation. The Government has taken several measures to enhance the quality of Indian Textiles to international standards. The steps taken include the Amended Technology Up-gradation Fund Scheme (A-TUFS), the launch of India Handloom Brand and integrated scheme for development of silk industry. Minister of State of Textiles Shri Ajay Tamta said that the Amended Technology Up-gradation Fund Scheme provides for capital investment subsidy to facilitate technology upgradation in the weaving, processing, garments and technical textiles sectors for enhancement of quality in the textile manufacture. The India Handloom Brand is aimed at providing quality assurance for handloom products for safeguarding the interests of buyers in the domestic and international markets. The MoS Textiles further said that the Integrated Scheme for Development of Silk industry supports the production of bivoltine silk, provides automatic reeling machines and also supports R&D to evolve new silk products. The power loom sector under the PowerTex India scheme provides support for upgradation of looms, the creation of infrastructure (worksheds), setting up of yarn banks and support for pre-weaving and post-weaving facilities. The Textiles Committee operates 19 testing labs to test textile products for conformance to national and international standards. In the Jute Sector, the jute Industry conforms to specifications approved by the Bureau of Indian Standards (BIS), in the manufacture of jute sacking.
Source: Government Press Release
Textiles Ministry is implementing various schemes for self-employment in handloom, handicraft and power loom sectors. Under these schemes, MUDRA loans, raw materials, looms and accessories are being provided to weavers and craftsmen among other things to encourage self-employment. This was stated by the Minister of State of Textiles Shri Ajay Tamta in the Lok Sabha today. He said, a Scheme for Incubation in Apparel Manufacturing (SIAM) was launched on pilot basis in January 2014 under which infrastructure in the form of an integrated workspace is provided to the new entrepreneurs along with training support. The Minister informed the House that three Incubation Centers have been sanctioned under the scheme. They are Spinning Mills Federation Ltd (SPINFED) in Bhubaneswar, Odisha, Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) in Panipat and Industrial Infrastructure Development Corporation (IIDC) in Gwalior, Madhya Pradesh.
Source: PIB
Last year, he had announced plans to enter into garment manufacturing with a 'swadeshi' line of clothing. Yoga guru and co-founder of Patanjali Ayurved Baba Ramdev on Thursday announced that his company would foray into the garment manufacturing business next year. "People are asking me, when are you launching jeans of your company in the market. So, we have decided to launch garment products, including ethnic wear, catering to kids, men and women next year," the 52-year-old yoga guru told the professionals during the ongoing 'Goa Fest 2018' organised by the Advertising Agencies Association of India (AAAI). Ramdev also announced that his company, which is already in the business of cosmetic and food products, will also launch garments for sports and yoga. Last year, he had announced plans to enter into garment manufacturing with a 'swadeshi' line of clothing. He claimed that Patanjali Ayurved has been doing better financially year after year and will be the country's biggest company in terms of turnover in the days to come. Speaking about Patanjali's fiscal policies, Ramdev said his company has not employed fat-salaried professionals but the people who are committed towards the work. Ramdev, who has been featuring in his company's advertisement campaign, said that the decision to not have big faces in the campaigns is saving a lot of money. "I get on to the camera and campaign for my brand. We have an emotional connect with the people. That is how despite not having big faces in our advertisement campaign, our brand was accepted by the people," he said. He claimed that the Patanjali's brands have already made their mark in the market due to its knowledge based advertising. "We are promoting knowledge based advertising and not the glamour unlike the multi-national companies," he said. However, the yoga guru said he has already withdrawn himself from several advertisements and would be completely off from it (advertisement campaign) in the next few years. Ramdev also announced that Patanjali would venture into other countries including economically weaker nations, and the profit would be invested back in that country. "We are already in Nepal and would be venturing in more economically weaker countries. But we have decided that the money earned there would be invested back in the same country, without bringing it back to India," he said. "But in case of those countries which looted India, we will be making windfall profits and bringing them back to the country," Ramdev added.
Source: Business Standard
Mumbai : India, the world's second-biggest cotton exporter, is hoping to treble shipments of the fibre to China next year as Beijing seeks to replenish stockpiles and imposes a 25 per cent import tax on cargoes from the United States. Despite India's efforts to grab a bigger piece of the Chinese market, cotton from the United States, the world's biggest exporter, has held sway for the past few years. But China's announcement on Wednesday that it will impose tariffs on 106 US commodities, including cotton, could now tilt the balance in India's favour."China's move to impose duty on US cotton shipments will help us," Atul Ganatra, president of the Cotton Association of India, told Reuters.India is looking to sell 2.5 million to 3 million bales, each of 170 kg, to China in the next season beginning in October, up from around 800,000 bales of expected exports in the 2017/18 marketing year, Ganatra said.China's decision to slap the 25 per cent import tax on cotton supplies from the United States comes as Beijing's own stockpile is depleting fast. Its total imports are expected to rise 38 per cent to 8-9 million bales in 2018/19 as it needs to shore up depleting domestic reserves. "India has always managed to grab at least 25 per cent of China's total cotton imports," Ganatra said. It was too early to know the exact impact of China's tariff on US cotton, but India's exports could reach up to 3 million bales, he said. During the current 2017/18 year, China is scheduled to import 2.5 million bales of cotton from the United States. Other suppliers include Brazil and Australia. China produces about 32 million bales of cotton and its textile mills consume around 45 million bales, allowing imports to meet the shortfall. "After large-scale imports, China was sitting on a stockpile of about 60 million bales four years ago, which is now likely to come down to 10-15 million bales by the end of this year, giving India a chance to raise its exports," Ganatra said. India benefits from geographical proximity to China compared to other competitors. As well as lower freight rates, shipments from India reach China in about two weeks compared to an average of three to six weeks from other suppliers, said Chirag Patel, chief executive of Jaydeep Cotton Fibres Pvt Ltd, a leading exporter. "There is little room for Chinese production to go up and significant amounts of stocks from Chinese stockpiles are of poor quality. It has no option but to ramp up imports," said a Singapore-based dealer with a global trading firm.
Source: Business Standard
In the first visit of a senior US trade official to this country since the Trump administration slapped curbs on steel and aluminium supplies from India and some others, assistant US trade representative Mark Linscott will land in New Delhi to huddle with senior commerce ministry officials on April 9, sources told FE. Separately, both the countries will hold the first formal consultation meeting at the World Trade Organisation (WTO) on April 11 over the US complaint to the multilateral body last month that New Delhi had been offering illegal export subsidies, said the sources. The US claimed that India’s export subsidies, worth around $7 billion a year, “harm American workers by creating an uneven playing field on which they must compete”. The meeting with Linscott on Monday, aimed at setting the stage for the crucial trade policy forum (TPF) meeting to be held later this year, comes at a time when a trade war involving the top two economies, the US and China, threatens to spiral out of control, with the US seeking to step up the offensive against countries with which it runs a trade deficit. While China alone accounted for a massive $375 billion, or 46%, of the US goods trade deficit of $810 billion in 2017, India made up for just 2.8% and occupied the ninth spot in the list of nations with which the Trump administration seeks to pursue a trade balance agenda. The sources said the US could use a special tariff regime it offers to many poor and developing countries, including India, for supplies of certain products duty free under the generalised system of preference (GSP) as a bargaining tool to ask India to restore trade balance. They said Washington could also push for higher supplies of US farm products and a more stringent intellectual property regime in India that would suit the American interest. It could also impress upon India to refrain from price control measures on medical equipment like bioresorbable stents that, it says, is hurting US companies. Under the GSP programme, select developing countries are allowed to export specified products duty-free to the US. Trade sources said India was its top beneficiary in 2016, as it shipped out goods worth $4.7 billion to the US under GSP, which were equal to over 11% of its exports to the world’s largest economy. Exports of select items in the textiles, engineering, gems and jewellery, and chemical sectors are allowed duty-free access to the US. For its part, the Indian side will seek a greater market access in agriculture and impressed upon the US not to link benefits under the GSP with trade balance, as these are two separate issues and countries with much higher per capita income than India’s are also gaining from the GSP. The US has already announced plans to impose tariff on goods supplies worth $50 billion from China, invoking almost identical retaliatory measures from the second-largest economy. As for the dispute over export subsidies, India is seeking a reasonable time frame of eight years from the WTO to phase out its export subsidies, as the country has breached an income threshold stipulated by the multilateral body to end such sops. However, under a more immediate threat of being deprived of the subsidies is India’s labour-intensive textile and clothing industry, as it crossed the sector-wise threshold (3.25% of global trade) as early as 2010. An eight-year window to end the subsidies (linked to export obligation) in the sector will expire in December 2018. Some of the important export promotion schemes that could be challenged by the US include MEIS and EPCG.
Source: Financial Express
The Indian rupee today recovered from deep overnight losses and ended higher by 18 paise at 64.97 against the US dollar after the RBI lowered its inflation forecast and revised up its growth outlook. Highly positive market sentiment largely dominated the forex trading from the beginning on the back of cooling of trade tensions between the US and China with global markets stabilising. A breathtaking rally in domestic equities along with a slew of positive domestic cues including — forecast of a normal monsoon and encouraging services sector PMI data — added to the recovery momentum despite higher dollar overseas. The home currency touched a high of 64.95 in early trade against the greenback. The 10-year benchmark bond yield tumbled sharply to 7.13 per cent from its previous close of 7.29 per cent. The Reserve Bank concluded its two-day monetary policy meeting today, by leaving the key benchmark rate unchanged at 6 per cent for the fourth consecutive time since August last year. While, the policy outcome was along expected lines, the apex bank outlined for the new fiscal a higher growth rate of 7.4 per cent in the current financial year and lower inflationary forecast at 4.7-5.1 per cent for the first half of the fiscal, boosting overall forex market sentiment. The rupee opened on a strong note at 65.03 as compared to Wednesday’s close of 65.15 at the inter-bank foreign exchange (forex) market on fresh dollar selling by exporters and banks. It oscillated between a high of 64.95 and a low of 65.13 most part of the day with good amount of volatility in the face of RBI meet outcome. The local unit finally settled at 64.97, revealing a steep rise of 18 paise, or 0.28 per cent. The RBI, meanwhile, fixed the reference rate for the dollar at 65.0601 and for the euro at 79.7767. Globally, the dollar rallied against a basket of other major currencies amid hopes that the US and China will reach a compromise to overcome rising trade tensions.The dollar index, which measures the greenback’s value against a basket of six major currencies, was up at 90.08 in early trade. Meanwhile, crude oil prices steadied on fading trade tensions between the US and China even as a surprise draw in US crude inventories last week supported the market. In the cross currency trade, the Indian unit recouped against the pound sterling to end at 91.25 from 91.48 and pulled back against the euro to finish at 79.68 as compared to 80.03 earlier. It also recovered against the Japanese yen to close at 60.68 per yens from 61.35 yesterday. Elsewhere, the common currency euro drifted to fresh one-week low against the US Dollar after the services PMI report saw sharp deceleration in economic activity in March as both manufacturing and services sectors are cooling off from the cyclical high amid fading US-China trade tensions.The pound sterling also maintained its downtrend after the UK services PMI fell to the lowest level in last 20 months. The UK services PMI dropped from 54.5 in February to 51.7 in March. In forward market today, premium for dollar fell sharply owing to sustained receiving from exporters. The benchmark six-month forward premium payable in August declined to 103.50-105.50 paise from 108-110 paise and the fag-forward February 2019 contract also dropped sharply to 223-225 paise from 230-232 overnight.
Source: Financial Express
President Trump launched a trade war in March by imposing a 10 percent tariff on aluminum and a 25 percent tariff on steel coming from countries around the world. Soon after, China retaliated by imposing import taxes on a number of U.S. products, including wine, almonds and pork. The president’s next battle plan was to slap on more tariffs by drawing up a list of Chinese-made goods that he believes should be subjected to import taxes. Fortunately, President Trump decided to keep clothing and footwear off the list of Chinese goods that would be taxed. But it was still a warning sign that tariffs could still be a possibility in the ever-changing trade world. Tariffs were placed on machinery used in apparel and textile manufacturing. With this in mind, the California Apparel News talked to several financial experts about how possible U.S. tariffs down the road could affect the clothing industry. We asked them this question: What kind of contingency plans should clothing companies be putting in place in case tariffs are imposed in the future on Chinese-made apparel, and how would tariffs affect importing apparel companies’ financial health?
Darrin Beer,Western Regional Manager, CIT Commercial Services
Apparel and footwear imported from China were not among the categories recently announced for U.S. tariffs. Even so, the potential for future tariffs remains. China is unquestionably a force to be reckoned with in the apparel industry. Clothing companies that import apparel from China should be taking steps to create contingency plans in case tariffs are imposed in the future. The nature of fashion makes it virtually impossible for clothing importers to stockpile significant merchandise ahead of any potential tariffs. Some companies have already taken steps to diversify their supply base by utilizing production in Vietnam, Indonesia, Latin America and domestically in the U.S. Apparel companies with a geographically diversified vendor base have the flexibility to mitigate the risk of future price increases resulting from tariffs, currency fluctuations or inflation. Even with all these measures, China’s dominance as an apparel maker means it would be virtually impossible to avoid importing Chinese-made goods entirely. If a 25 percent or greater tariff were to be imposed in the future, the higher costs would likely be shared by the supplier, importer and direct consumer, as retailers would likely try to pass along most or all of the price increase. While apparel and footwear have been spared in this latest round of tariffs, trade talks between the U.S. and China are ongoing. Those in the apparel and footwear industries are well-advised to watch developments closely, make their voices heard and be ready with contingency plans for potential future tariffs.
Mark Bienstock,Managing Director, Express Trade Capital
In light of both the potential tariffs and trade war with China, we are suggesting to our clients that they revisit opportunities in Bangladesh and India for sourcing new products. Bangladesh has a major advantage in the area of labor pricing. India, which during the 1980s and 1990s was a major apparel exporter, has the infrastructure and capacity to take advantage of this potential opportunity. At the end of the day, the consumer would be the big loser if any trade war with China develops. This is a case where cooler heads need to prevail for the entire world’s best interest.
Sydnee Breuer, Executive Vice President, Rosenthal & Rosenthal
It’s a good idea for all businesses to have contingency plans for any disruption that could affect their business. There are contingency plans for weather-related issues, system-related issues, and tariffs or increases in any production cost are no exception. Apparel companies should routinely investigate alternative production sources, even if within the current country, to be sure they are receiving good pricing for the quality they receive. With the potential increase in tariffs, those who import from China should consider manufacturing in other parts of the world—whether that means shifting to India, Pakistan and the Middle East—or to the Western Hemisphere—Mexico, Central America, etc.—or even bringing some production back domestically. It’s imperative that the country’s infrastructure be in place to manufacture the specific type of apparel needed so as to not incur costly production delays, quality or port/shipping issues. The current proposed tariffs would most likely affect private label more than brands. The brands are in a better position to pass along the increase, or some portion of the increase, to the consumer, who would be more willing to pay increased amounts for the brands they want.
Gino Clark,Managing Director, Originations,White Oak Capital Finance
Trump’s proposed tariffs on Chinese-made goods are dominating conversations across the political and financial spectrum. As such, it’s no surprise that apparel importers are watching this situation closely. The apparel industry’s ever-changing landscape is nothing new. In my experience, apparel companies are generally well prepared to deal with sudden changes, whether it be weather conditions, consumer demands and/or, in this case, potential government regulations. Adept apparel companies with strong management teams can overcome most challenges. For apparel companies, flexibility starts by ensuring profits are retained in the business and access to liquidity is maintained. This allows them to not only develop contingency plans for dynamic situations but also to implement those plans. The potential situation with China is an important reminder of the need for the apparel companies to expand their supply sources. It is common for apparel companies to source goods from many countries—including China, Cambodia, Vietnam, Guatemala and Mexico—as well as domestically. This type of diversification helps companies compete on price as well as on quality and delivery times. Ultimately, increased tariffs can lead to increased consumer prices. However, if apparel companies remain flexible and maintain diversified supply sources, they can minimize the impact of the proposed tariffs on Chinese-made goods.
Ron Friedman, Partner, Marcum LLP
I think everyone needs to be thinking long term as to the changes that a company may need to make. Most companies cannot change quickly as to where they will be sourcing product from. Our clients have been in China for many years, and they have developed relationships over this period of time. To move production to other countries will not be easy. At Marcum, we are suggesting our clients think about slowly diversifying their sourcing to other countries that can meet their needs. It takes time to plan and get the quality production from new sources. Manufacturers will also be considering bringing back some production to the United States. Local production has the advantage of quick turnarounds from the time the order is received to shipping the merchandise. It will be difficult to predict how the apparel industry might be impacted by new tariffs as this may just be a big poker game being played by world leaders.
Rob Greenspan, President and Chief Executive, Greenspan Consult Inc.
While new tariffs on Chinese imported apparel have not yet been decided, it is anybody’s guess if they will be. But waiting for something to possibly happen without having a plan is a mistake that should not be made. What apparel importers should be doing is thinking about finding other sources and locations of production that will not be affected by these tariffs. This could mean looking for some domestic production, production from Mexico or other NAFTA (North American Free Trade Agreement) countries or moving production to factories in other Asian countries not impacted by any new tariffs. While this sounds simple, moving production from country to country, factory to factory is not so easy. Apparel importers should start with small steps in diversifying their production and building up from there. This is a process that could take a number of months to work through. The important issue is not just keeping the price of your garments competitive but, more importantly, making sure the quality of your goods doesn’t suffer if there is a transition in production. I have been told some Chinese factories are seeking to open new factories in countries that will not be affected by potential tariffs. So you might be able to stay with your current supplier, but their factory might now be in other countries besides China. Lastly, if tariffs are imposed and you are not able to move production, will you be able to pass these costs on to your customers? If your competitors have been successful in moving production to non-tariff countries, you will be stuck with having to absorb these costs. The impact on your gross profit margin and your net income could be significant. So planning ahead and having a contingency plan is critical.
Sunnie Kim, President and Chief Executive, Hana Financial
China generally imports raw materials and unfinished products, assembles the inputs, and exports the finished goods. Should such tariffs be enforced, U.S. apparel manufacturers will be impacted. However, the extent of this impact is premature to measure at this time, as we would need to determine the current cost of an imported material compared to the cost of the same domestic good and then factor in the amount of tariff. What we do know is that the retail environment has been challenging due to changing consumer behavior with respect to the growing e-commerce competition and decreasing foot traffic in the past few years. U.S. clothing manufacturers should prepare for the worst, and we expect the possibility of many to reduce the volume of Chinese imports should such changes come into practice. Nevertheless, we foresee the possibility of U.S. manufacturers continuing to purchase raw materials from China but shifting away from the traditional practice of allowing these partners to assemble finished goods that result in importing directly from China. Raw or unfinished materials may be channeled to other neighboring countries, such as Cambodia or Vietnam, to avoid higher costs, which could potentially impact end consumers in the U.S. in an already challenged retail environment.
Dave Reza, Senior Vice President,Western Region, Milberg Factors
Tariffs not only impact the revenue/income stream of a company but compel a shift in resources, sourcing patterns and inventory management. These changes could dramatically affect profitability, balance sheets and cash flows. Importers need to anticipate these changes and establish contingency plans as part of the process of working in a higher-tariff environment. Shifting production to countries not subject to a tariff is one solution. Considering local U.S. production is also an option. However, whichever road is taken, the impact will not simply be a higher cost of goods/lower gross profit. A change in production locale brings with it possible new regulatory restrictions, terms/credit requirements, logistics issues and the normal new-vendor quality snafus. Historical inventory levels may no longer be relevant or prudent if there is significant consumer uncertainty. All of these dynamics combined can significantly alter an importer’s historical working capital requirements and cash-flow patterns and financial outlook. Any importer would be well served to prepare for the unexpected by taking time to understand how changes in sourcing and/or higher product costs/lower sales will change their profitability and, more importantly, their short-term liquidity. By doing this, they can work with their factor/lender to project out timelines for production and cash-flow support requirements and have approved over-advance or letter-of-credit facilities, if needed, in place ahead of time. As with other changes in the world of apparel manufacturing and importing, those companies that can stay ahead of the curve with resources, anticipating customers’ needs and embracing the changes will live to fight another day.
KenWengrod, President, FTC Commercial Corp.
Buckle your seat belts and hold on for a bumpy ride. Let the trade negotiations begin between the U.S. and China. President Trump never proposed tariffs on Chinese-made apparel goods. The tariff list, “totaling more than $50 billion,” will include largely high-technology things. However, the potential apparel tariffs should be a wakeup call to U.S. importers. In actuality, the real pressing matter is the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA), which was recently implemented and is already affecting all U.S. importers. The Enforce and Protect Act (EAPA) was also incorporated within this act, which establishes a formal procedure for investigating and enforcing antidumping or countervailing duty (AD/CVD) allegations of evasions against U.S. importers. These acts grant comprehensive authorization to U.S. Customs and Border Protection to ensure a fair and competitive trade environment. This means that CBP may aggressively pursue and hold U.S. importers liable for its suppliers that are using forced labor—zero tolerance—and/or declaring undervalued goods, and/or manufacturing counterfeit goods. The CBP has a special task force reviewing shipments from China specifically to investigate potential AD/CVD violations. U.S. importers should already be scrubbing their bad suppliers. They need to keep reevaluating their entire supply chain. U.S. importers need to focus on how to be more efficient in manufacturing, inventory turn, reducing sampling and preproduction costs. They need to have strong strategic partnerships with their foreign makers, freight forwarders and U.S. custom brokers. Instead of waiting for something to happen, U.S. importers should be more proactive and develop a long-term goal. Their supply chain needs to be more responsive when any adverse market conditions occur.
AdamWinters, President and Chief Executive, Merchant Factors Corp.
Some companies are being proactive and have started sourcing goods in other countries such as Bangladesh, India and Egypt. That process will take time, however. No other country in the world has the infrastructure that China has, which makes it the best at producing apparel. The Chinese have invested enormously in technology and have a banking system that supports manufacturing. China has the most advanced manufacturing capabilities to produce quality product at competitive pricing. I think it is smart for apparel companies to explore how they can diversify their sourcing, but the reality is that for the time being most of your product will need to be produced in China. The administration does have legitimate issues to review with China regarding intellectual property and investment practices, but I am cautiously optimistic that the current discussion of tariffs are a negotiating tactic and that the rhetoric will soften over time. Our economies are intertwined, and there would be repercussions to both sides if we were to have a trade war.
Source: Apparel News
Textile and Garment sector is expanding rapidly, with the number of industries more than doubling and playing huge role in boosting the country's light industry, and in transforming the economy, according to Ministry of Industry. Talking to The Ethiopian Herald, Zerihun Abebe, Director of Textile and Apparel Research, Monitoring and Support with Ministry of Industry, stated that the country's textile and garment sector is in an upward trajectory with the number of industries has now reached more than 200 in few years time. The trend shows that the sector is in the right journey to become the leading sector in Africa and make the country's vision of becoming continental textile hub in the coming years a reality, he added. According to a recent government data, Ethiopia's textile and apparel industry has grown at an average rate of 51 percent, and more than 65 textile investment projects have been licensed for foreign investors in the last five to six years.
Source: All Africa
Hanoi (VNA) – Garment-textile export turnover reached nearly 8 billion USD in the first quarter of 2018, a year-on-year rise of 13.3 percent. This is considered a good start for the industry to realise its export target of 35 billion USD by the end of this year. President of the HCM City Association of Garment and Textile Pham Xuan Hong said the sector has bright prospects this year. Garment-textile exports in 2018 are anticipated to be better than in 2017 with the maintenance of two-digit growth. Chairman of the Directors Board of Hung Yen Garment Corporate Nguyen Xuan Duong said the number of orders is likely to strongly increase this year, especially for large-scale businesses. Most domestic enterprises have orders until the second of quarter of 2018. Some have even received orders for the third quarter, he said. According to Chairman of the Vietnam Textile and Apparel Association Vu Duc Giang, Vietnamese garment-textile businesses can compete in the region thanks to the sharpened skills of workers, improved productivity and better quality of products. Domestic enterprises have also invested in new technology to increase productivity and competitiveness, he said. Free trade agreements not only help the garment-textile sector diversify export markets but also reduce imports of material, he said, adding that currently Vietnam exports more than 3 billion USD worth of yarn, nearly one billion USD worth of fabric and 400 million USD worth of garment accessories each year. Industry 4.0 has changed the mindset of businesses in regards to technology investment, Giang said, noting that businesses are looking to high value production segments such as Original Design Manufacturing and Own Brand Manufacturing. Garment-textile companies also focus on the development of human resources and cutting edge technology, he said. Some big enterprises such as Phong Phu Joint Stock Company and Garment-10 Joint Stock Company are seeking to export through online sales, he added. However, the Vietnam Textile & Apparel Association has warned businesses of numerous challenges, including fiercer competition from other countries like China, Myanmar and Cambodia. The association advised enterprises to improve skills of workers and reform management methods to increase productivity. Apart from maintaining and developing exports to key markets such as the US, EU, Japan and the Republic of Korea, businesses should expand to other markets such as the Association of Southeast Asian Nations, Eurasian Economic Union, India and Latin American countries.
Source: Vietnam.com
As part of its second slap back on tariffs, China announced Wednesday that it would target 106 U.S. products with 25 percent tariffs, and American cotton was one among them. Specifically, China said uncombed cotton and cotton linters coming from the U.S. would face the new tariffs, and the National Cotton Council of America has said the proposed higher tariffs on raw cotton could undermine U.S. cotton trade with the country and “significantly” harm the health of the domestic sector. “I cannot overstate the importance of China’s market to U.S. cotton farmers and the importance of U.S. cotton in meeting the needs of China’s textile industry,” NCC chairman Ron Craft said in a statement Wednesday. According to a U.S. Department of Agriculture (USDA) GAIN report released Wednesday, the proposed tariffs would carry the current tariffs on U.S. raw cotton from 1 percent to 26 percent. News of the tariffs has sent cotton prices skyrocketing from 79.61 cents at 9 p.m. Wednesday to as much as 82.64 cents Thursday—a more than 3 cent jump within a day, or a 3.77% increase. The International Cotton Advisory Committee said Tuesday, ahead of the cotton tariff news, that cotton prices will likely inch up to a five-year high of 84 cents per pound for next season, but it’s unclear how this newly introduced volatility could impact that forecast. Craft said NCC is urging the U.S. and China to come back to the table quickly to resolve the current trade tensions and preserve what’s been a long-term and mutually beneficial trade relationship. “The U.S. cotton industry stands ready to assist the U.S. government and our trading partners in China to find a resolution to this damaging trade dispute,” Craft said. China’s latest tariffs on 106 U.S. goods including cotton, came in response to the list of 1,300 products from China the U.S. said will face tariffs as a result of its Section 301 investigation into China’s forced transfer of U.S. technology and intellectual property. Before that—and in response to the U.S. tariffs on steel and aluminum instituted under Section 232 on grounds that the imports threatened U.S. national security—China said it would add tariffs to 128 U.S. products. In an interview on ABC News Arizona, Arizona cotton farmer Kevin Rogers said he is nervous about the tariff threats. “Agriculture tends to be one of the first groups that gets put on the table as a pawn so to speak,” Rogers told the news channel. “It can have devastating effects on the market if there’s tariffs that come up, then those countries probably would think twice before they buy our product.”
Source: Sourcing Journal Online
The National Environment Management Authority will approve performance trials for genetically modified cotton by next month. Chief compliance officer Margaret Njuki yesterday said they are waiting for feedback from the public before they can give a go-ahead. Last month, Nema issued a Gazette notice to the public to submit comments on an environmental impact assessment for the proposed national performance trials on genetically modified cotton at nine sites. The sites proposed for the field test include Mwea, Katumani, Kampi ya Mawe, Bura, Perkerra, Kibos, Alupe, Barwessa and Matuga. The GM cotton variety is resistant to the bollworm, which lowers the crop’s productivity by 50 to 90 per cent. “Nema invites members of the public to submit oral or written comments within 30 days to assist in decision-making,” the notice read. Simon Gichuki from the Kenya Agriculture and Livestock and Research Organisation said yesterday the initial plan was to start the NPTs this month to target the long rains. But due to the delay in approval, some areas such as Kampi ya Mawe, Katumani and Matuga may miss out because of the “erratic” weather condition. He spoke during an Open Forum on Agricultural Biotechnology in Nairobi. Rajeev Arora, an adviser on textile value chain at the ministry of Industry and Trade said a cotton task force was formed last year to ensure the implementation of a roadmap that will be in operation for the next five years. “The plan is to initially develop cotton using hybrids and conventional seeds and, by 2019, to grow Bt cotton after its commercialisation, which will have three times production yield compared to present conventional varieties,” he said. Arora said production will take place in more than 494,210 acres in the five years. Last year, cotton production stood at about 30,000 bales of lint against a potential of 368,000.
Source: The Star Kenya
To support consumer protection and sustainability along the textile value creation chain in 2018, Oeko-Tex has announced modifications of the existing guidelines in the Oeko-Tex product portfolio. The guidelines came into effect on April 1, 2018, following a three-month transition period, and are valid for all certification systems and other services. The updating of the Oeko-Tex standards and guidelines is based on a continual exchange of experiences with stakeholders from the industry, cooperation with initiatives and the monitoring of statutory regulations. The work by the Oeko-Tex expert groups takes into account on-going scientific innovations and findings as well as current market developments. Textiles made of organic cottonor with organic cotton parts must undergo an additional laboratory test for genetically modified organisms (GMO), if the applicant company intends to recognise its articles with corresponding quality designations such as “Organic” or “Bio” on the Standard 100 certificate. The laboratory test proves whether or not genetic engineering has been applied to the cotton materials used. The molecular biology laboratory test that has been specifically optimised for textiles will provide certainty for product suppliers and consumers in the future within the framework of product certification in accordance with Standard 100 by Oeko-Tex. The previous two-level process for issuing an Eco Passport certificate has been expanded to include an additional level. Chemicals, colourants, and other auxiliaries for textile production must still undergo a comparison with the Oeko-Tex RSL and MRSL (level 1) and also an analytical test for possible contaminations (level 2). During an on-site check of the applicant company, Oeko-Tex now checks whether the applicant or producer is actually compliant with the information provided with regard to the manufacturing conditions. The company visit means that Oeko-Tex is able to take a close look at both environmental management and the measures taken with regard to product stewardship. Three-level Eco Passport certification is possible from summer 2018. Companies who have their chemicals certified can currently choose between two certification models - the existing two-level test or the new three-level verification including CAS number comparison, laboratory test and on-site company visit. From 2019 onwards, the three-level process will be mandatory for all certifications in line with Eco Passport by Oeko-Tex. With the three-level certification process, the ZDHC (Zero Discharge of Hazardous Chemicals) accepts the Eco Passport by Oeko-Tex as proof of conformance of certified chemicals with Level 3 of the ZDHC list of restricted substances for textile production (MRSL). The comparability of the Detox To Zero MRSL with the valid MRSL for STeP by Oeko-Tex certification means that Detox To Zero can be 100 per cent integrated in STeP. Detox To Zero customers can switch to STeP at any time. Bisphenol A, the aromatic amine aniline and additional alkylphenols (pentyl- and heptylphenol) are now included in the Leather Standard. The minimum requirements and criteria for issuing the Made In Green by Oeko-Tex product label have been revised. The benefits of the new definition are improved comprehensibility and reduced time required for attaining the label.
Source: Fibre2Fashion
