Backed by its duty-free access to the EU market, Bangladesh retains its status as the second-largest apparel exporter after China. Readymade garment exports fell from $17.4 billion in FY17 to $16.71 billion in FY18, a 3.8 per cent decline. In the first year of implementation of the goods and services tax (GST), India’s apparel or readymade garment (RMG) exports have declined by nearly four per cent in dollar terms in FY18. In rupee terms, the decline is higher at 7.6 per cent. RMG exports fell from $17.4 billion in FY17 to $16.71 billion in FY18, a 3.8 per cent decline. Fall in RMG exports happened due to continual month-on-month (MoM) decline in dollar terms, beginning from a 39.30 per cent fall in October 2017 and ending at 17.8 per cent in March 2018. In the latter month alone, India’s RMG export was $1.49 billion, against $1.81 billion for the corresponding month last year. H K L Magu, chairman, Apparel Export Promotion Council, said, “The export figures show apparel export is not only stagnating but heading towards recession. These clearly indicate ongoing shrinkage in the industry, which is a big cause of concern.” Global factors such as free trade agreements (FTAs) of competing nations with key markets like Europe, the UK and the US had already been posting a challenge to RMG exporters. GST implementation in July 2017 resulted in blockage of funds for the export community, says the industry. Further, export incentives such as duty drawback and rebate on state levies (ROSL) were reduced. “While the duty drawback rate and ROSL were lowered to two per cent from 7.5 per cent and 3.9 per cent, respectively, in the post-GST era, incentive under the Merchandise Exports from India Scheme (MEIS) was increased from two to four per cent,” Magu told Business Standard. However, with the MEIS deadline on June 30, the industry is uncertain of taking orders beyond the date on the basis of a higher incentive. "We are unsure if MEIS will continue after that. We will lose money if we assume four per cent incentive beyond June and the government does not extend it,” said Magu. Global factors have been rendering Indian RMG exporters uncompetitive. “While China has vacated the apparel export space, India is unable to encash on the opportunity, unlike Vietnam, Bangladesh or Cambodia who have FTAs. India is emerging as an expensive affair in the global apparel market," Magu stated. Backed by its duty-free access to the EU market, Bangladesh retains its status as the second-largest apparel exporter after China. Vietnam remains fastest-growing among large apparel-exporting nations, maintaining its growth in the US market despite the latter backing out of a proposed trade agreement. "Bangladesh and Vietnam are showing consistent growth in the apparel exports. We would like the government to address the issue at the earliest," Magu said.
Source: Business Standard
Apparel exports have entered a “recessionary zone’’ with shipments in March falling 17.78 per cent to $1.49 billion, with an overall dip of 3.83 per cent to $16.71 billion in 2017-18, the Apparel Export Promotion Council (AEPC) has said. “These figures clearly show that apparel exports are not only stagnating but are heading towards a recession. Apparel manufacturing has already registered a decline for the tenth straight month in February,” said HKL Magu. Chairman, AEPC. Though India is struggling with the problem of stagnation in exports, countries such as Bangladesh and Vietnam are showing consistent growth in apparel exports, the release stated. Magu said the AEPC was working with policymakers for an early resolution of the sector’s problems, including working capital being stuck due to slow refund of GST and reduction in drawback rates. India’s overall goods exports increased 9.78 per cent to $302.4 billion in April-March 2017-18, but declined 0.6 per cent to $29.11 billion in March 2018. The fall has been much more in the case of apparel exports. The sector currently employs 12.9 million workers, but due to the ongoing slide, several clusters have been impacted, said Magu.
Source: Business Line
E-way bill requirement for intra-state movement of goods has been rolled out in five states from Sunday. The bill for inter-state movement of goods valued over Rs 50,000 was rolled out on April 1. The Goods and Services Council had decided on a staggered roll out of intra-state e-way bill starting with five states — Gujarat, Uttar Pradesh, Andhra Pradesh, Telangana and Kerala. From midnight till 5 pm on Sunday, about 0.24 million e-way bill (both inter state and intra-state) was generated on the portal, an official said. The official said there was not much increase in the generation of bill on Sunday on account of intra-state roll out. On the day of inter-state roll out of e-way bill on April 1, about 0.28 million such bills were generated in 24 hours. The official said one reason for not much increase in the number could be because Gujarat has mandated e-way bill for intra-state movement for only 19 items. These items include edible oil, oil cakes, ceramic tiles, iron and steel, processed tobacco, gutkha, cigarette, cement, timber products, tea, marble and granite. Since the roll out of e-way bill for inter-state movement of goods from April 1, more than 9.1 million bills have been generated till Saturday. Karnataka is the only state which had rolled out e-way bill system for intra-state movement of goods from April 1. Touted as an anti-evasion measure and would help boost tax collections by clamping down on trade that currently happens on cash basis, the e-way bill provision of the goods and services tax (GST) was first introduced on February 1. However, its implementation was put on hold after the system developed glitches in generating permits. With several states also starting to generate intra-state e-way bills on the portal, the system developed a snag. Since then, the platform has been made more robust so that it can handle load of as many as 75 lakh inter-state e-way bills daily without any glitch.
Source: Business Standard
India’s trade deficit with China increased more than two-fold (219%) from $16 billion in 2007-08 to $51 billion in 2016-17, according to commerce ministry data. India’s imports ($61 billion) from China were six times its exports ($10 billion) in 2016-17, making rising trade imbalance a major concern. “Increasing trade deficit with China can be attributed primarily to the fact that Chinese exports to India rely strongly on manufactured items to meet the demand of fast expanding sectors like telecom and power, while India’s exports to China are characterized by primary and intermediate products,” C.R Chaudhary, minister of state in the commerce ministry, said in a reply to the Lok Sabha (parliament’s lower house) on December 18, 2017. The recent trade war between the United States of America and China has sparked a ray of hope for Indian exports such as cotton, soya bean and maize to Asian markets, especially to China. As China imposes tariff barriers to US products, Indian exports are expected to increase. For instance, cotton has been one of India’s leading exports to China, but volumes have shrunk considerably in the past few years. Now, China has imposed a 25% tax on US imports of cotton, and shipments from India are expected to see a boost this year.
Largest Trading Partner
China is India’s largest trading partner with bilateral trade reaching almost $72 billion in 2016-17, an increase of 88% from $38 billion in 2007-08. Bilateral trade between April 2017 and January 2018 was reported to be more than $73 billion, the most over the last decade. India’s imports from China have more than doubled (125%) over the last decade, from $27 billion in 2007-08 to $61 billion in 2016-17. Imports crossed $63 billion in January 2018, the most in the last 10 years. India’s exports to China have declined by 6% from $10.9 billion in 2007-08 to 10.2% in 2016-17. India reported exports worth $18 billion in 2011-12, the most in the last 10 years, which fell 43% to 2016-17. India’s major exports to China include ores, slag and ash, cotton, organic chemicals, mineral fuels/oils, copper and its articles. Imports include telecom instruments, electronic components and instruments, computer hardware, organic chemicals, plastics and plastic items. “Imports exceed exports because of shortages/non-availability of items domestically or because of the cost competitiveness of the foreign manufacturers,” Chaudhary said in another reply, this time to the Rajya Sabha (parliament’s upper house), on March 7, 2018.
What Is Causing India’s Trade Deficit
Ores, which are minerals used to extract metals or manufacture chemical compounds of metals, were India’s top export to China in 2016-17, totalling $1.7 billion. This figure was 73% lower than the $6.2 billion worth of exports in 2007-08. Cotton is the second most exported commodity to China in terms of value. Cotton worth $1.3 billion was exported to China in 2016-17, which comprised an 18% increase in trade value compared to 2007-08, when $1.1 billion worth of cotton was exported. However, exports have declined by 67% over the last six years, from a peak of $4 billion in 2011-12. China is the largest market for India’s cotton yarn, yet exports halved from $2.2 billion in 2013 to $1.1 billion in 2016. The decline is attributed to China’s increasing import of cotton yarn from Vietnam, which registered an 88% increase over the same period. “China has shifted from India to Vietnam/Indonesia as they have duty free access while Indian yarn carries 3.5% import duty,” Sanjay Kumar Jain, chairman of the Confederation of Indian Textile Industry, told The Times of India in this December 15, 2017, report. Another important factor is competitive prices of Chinese products in the Indian market. For instance, Chinese solar cells cost 35% less and solar panels 10-15% less compared with locally made ones. Over the last five years, India’s import of solar panels from China has increased more than six-fold (623%) from $389 million in 2012-13 to $2.8 billion in 2016-17. India imported 88% of all its solar panels from China in 2016-17. India “does not have a manufacturing base for polysilicon, ingots/wafers, the upstream stages of solar PV manufacturing chain, which is a very energy intensive and capital intensive process. some of the reasons for poor manufacturing capacity are high cost of land/ electricity, low capacity utilization, high cost of financing”, the reply to the Rajya Sabha said. Domestic manufactures have, in fact, complained that Chinese solar panels and chemicals are dumped into Indian markets. A hundred Chinese products bear an anti-dumping duty, according to the government’s reply to the Lok Sabha on December 18, 2017. Of these, chemicals and petroleum constitute the most (47 products), while steel and other metals (10) and fibers and yarn (9) are among the top products. How To Boost Indian Manufacturing India ranked 30 among 100 countries on the structure of production scale, a global manufacturing assessment index created by the World Economic Forum for its Readiness for the Future of Production Report 2018. Japan topped the list, followed by South Korea, Germany, Switzerland and China. India scored 5.99 on the index (on a scale of 0-10, where zero is the worst and 10 the best score), as compared with China’s 8.25 and Japan’s 8.99. The assessment was based on two key components: ’Structure of Production’, a country’s current baseline of production, and ‘Drivers of Production’, the key enablers that position a country to transform production systems at the advent of the ‘fourth industrial revolution’. On the Drivers of Production index, the US topped the list, followed by Singapore and Switzerland. India ranked 44, below China (25). It cited human capital and sustainable resources as the two key challenges for India. “Efforts are made to promote manufacturing through initiatives like ‘Make in India’, ‘Digital India’, ‘Skill India’ etc. which provide support for promoting domestic manufacturing capacity in the country,” Chaudhary’s Lok Sabha reply stated. Investment is one of the key challenges for India, Uttara Sahasrabuddhe, professor of international relations at the University of Mumbai told IndiaSpend. “There have been significant efforts to push investments through initiatives like Make in India, but still we are far off to match with China. Poor governance, labour laws that are becoming fast outdated and connectivity are some of the other issues that we face,” she said, “[The] Chinese have an upper hand when it comes to infrastructure which is the foundation of any good manufacturing sector. We don’t have that type of port connectivity or transport linkages within the country, or even uninterrupted electricity supply. India will have to overcome these challenges to compete with China, transforming itself into a manufacturing hub, key to boost exports.”
Towards Trade Balance
In a move to promote Indian exports and reduce the trade deficit with China, the two countries developed a Five-Year Development Programme for Economic and Trade Cooperation in September 2014. The programme aims to strengthen cooperation and achieve trade balance over the next five years by focusing on services, especially in information technology and related services. With the success of Bollywood movies at the Chinese box office, India is planning to appoint Aamir Khan as its brand ambassador to China.
Source: Business Standard
While there are more than 1.5 lakh handicraft artisans in the State, inclusive developmental plans are not formulated for the artisans. Looking into the requirement of the handicraft artisans, the Government of Odisha has decided to go for a detailed census on the artisans, which is needed as there is hardly any data base of these people. Sources in the Department of Handlooms, Textiles and Handicrafts (DoHTH) said a proposal was sent to the Union Ministry of Textiles (MoT) for approving such census, which is required for preparing an inclusive developmental plan for the artisans. However, the proposal is yet to be approved by the MoT, for which census could not be conducted, sources added. Similarly, it was proposed to issue identity cards to the handicraft artisans and the Development Commissioner, Handicrafts, was approached by the DoHTH. The initiative was to cover the entire handicraft artisan community spread over the State. While the handicraft artisans are visiting several States and Union Territories during national and international handicraft exhibitions, during those events the identity card will come handy for their identification. The MoT was to issue the identity cards and several MPs have approached the Union Government in this regard. Similarly, setting up of a craft village at Sukhuapada-Lalitgiri was proposed by the State Government in interest of the artisans and visiting tourists. Lalitgiri is a famous international tourist centre and setting up a craft village on the lines of Raghurajpur will go a long way in promoting handicraft and tourism in the State. Sukhuapada-Lalitgiri is famous for stone carving cluster, which falls in the international Buddhist circuit. Lalitgiri and Sukhuapada are adjacent to each other and the zone is emerging as a major tourist centre with focus on Lalitgiri museum set up by the Archeological Survey of India. The peoples’ representatives have been pressing the matter for quite some time; however, the MoT is yet to take a call on the matter, said sources. Another proposal pending with the MoT is for reintroduction of 10 per cent rebate on handloom fabrics. Due to various reasons, the handloom fabrics face stiff competition for marketing. And, there is a mindset among the customers of handloom products to avail rebate. The Government of India was implementing a scheme to allow 10 per cent rebate on sale of handloom cloth, which has been discontinued since 2008-09.
Source: The Pioneer
Varanasi (Uttar Pradesh) [India], Apr. 16 (ANI): Banarasi silk weavers have written a letter to Prime Minister Narendra Modi on the alleged imitation work of the 'Banarasi silk saree' by Bangladesh. A letter has been sent to Prime Minister Modi, the Ministry of Textiles and the Ministry of Commerce and Industry by a Geographical Indication (GI) expert regarding the imitation work. The weavers have urged the government to control the merchandise of fake products that has brought about a slump in the original product's market, despite the silk products securing Geographical Indication (GI) rights. One of the weavers told ANI, "Business is being affected due to the imitation of our work by Bangladesh despite Banarasi silk products securing Geographical Indication (GI) rights." Meanwhile, a GI expert Rajnikant said, "A letter has been sent to Prime Minister and Textile Ministry and Commerce Ministry for legal intervention into the matter. Now we got to know that why the demand for our product in the international market is falling and the business of Varanasi's traditional weavers are not registering growth." According to the weavers, the duplication has resulted in sharp fall in demand of Banarasi sarees made by its actual weavers. (ANI)
Source: ANI
A stall at the Shilparamam Handicraft and Handloom Exhibition Vijayawada: The 10-day-long Shilparamam Handicraft and Handloom Exhibition is underway at Bapu Museum here. The expo, organised by Tourism and Culture department of Andhra Pradesh, was inaugurated by Archeology Museum Commissioner Dr G Vani Mohan on Friday. About 70 stalls were arranged and people from various parts of the country displayed their items which were attracting the people of the city. Handloom saris, print saris, handicraft, fancy items, wooden toys, pottery, leather crafts, dress materials, all brought from various places across the country were on display and for sale. Parthasarathy, in-charge officer of the expo, said that the motto behind the expo was sales of handicrafts, increase awareness on handicrafts, expose crafts to the market and launch of new products and designs for promotion and finally to rescue crafts persons from the clutches of the middlemen. About 50 craftsmen from different states are participating and displaying their crafts objects. They are giving live demonstrations of a few selected crafts. Articles made of cane and bamboo baskets, cane and bamboo furniture, cane woven handicrafts, wooden handicrafts, dry flowers etc are some of the attractions of the exhibition. Craftsmen from West Bengal, Rajastan, Andhra Pradesh, Telengana, Mysore, Kanpur, Uttar Pradesh and other places participating in the expo.
Source: The Hans India
As per capita income increases, organised retail sector in India will witness strong growth in the years to come, and segments like apparel will reap the benefits, says a recent report from an American multinational investment bank and financial services company. Favourable demographics and increasing urbanisation would help in robust growth. Currently, organised retail constitutes only 7 per cent of the market size, and post demonetisation and implementation of the Goods and Services Tax (GST), organised players would attain greater market share, media reports said quoting Jefferies report. “We believe that Indian organised retail is in a sweet spot, especially post demonetisation and GST, given the under-penetration at 7 per cent of total trade and favourable macro,” Jefferies said in the report. “Organised retail is still in the midst of a secular growth journey with several segments on the cusp of strong growth as per capita income rises past the crucial $2,000 threshold that has heralded strong growth in most other markets,” the report added. Most retailers have changed their business models, and are now closing loss-making outlets, while increasing private label mix. They are also making better use of data analytics, the report noted. The brokerage predicts that more consolidation and merger and acquisition (M&A) activities will be witnessed in the sector, particularly between online and offline players. However, the strong growth prospects will keep the retail sector valuations expensive. (RKS)
Source : Fibre2fashion
It is a perfect debut for Indian textile designer Gaurang Shah known for his exquisite work using jamdani weave to create unique fusion of fabrics and textures, especially sarees as the costume designer for the big trilingual film ‘Mahanati’, a biopic on legendary actress Savitri slated for release on May 9, 2018. Talking about the challenge Gaurang says, “Choosing the right textile, weaving, texturing, and colouring to lend reality to the look of actress Savitri took many months. Over 100 artisans worked relentlessly to ensure the weaving process was uninterrupted as the whole progression took more than a year and a half from the inception of the costumes to the conclusion of the last shoot. Gaurang has a unique knack for capturing ancient traditions of craft, antiques, and architecture to create his own signature which is a beautiful blend of past and modernity using jamdani weaving technique. This skill lent beautiful synergy and made things seamless, Priyanka Dutt, producer of Swapna Cinema ‘Mahanati’ revealed. On recreating producer Priyanka Dutt of Swapna Cinema and Nag Ashwin’s vision of ‘Mahanati’ designer Gaurang says, “It was a beautiful journey even for me and my team capturing different moods and sequences in the film. Recreating the sensibilities of the actress including elements such as the choice of fabric types and the textures were immensely satisfying for me as a textile designer.” Elated about his debut costume venture in a film of this scale Gaurang says, “It was a challenge right from the beginning, what excited me the most was a perfect opportunity to showcase Indian saris in its fullest grandeur, with utmost simplicity through the journey of the legendary actress Savitri on the big screen.” Gaurang and his team spent a great deal of time in research to ensure every costume that Savitri will be seen wearing in the film is authentic. Gaurang sourced heavy silks fabrics from different parts of India like Kanchipuram, Benares which were enhanced with kota, mangalgiri and block prints that were then handcrafted in looms. “We used tones that carry a lot of radiance and associated with feminine character, balanced it with traditional ‘at-that-era’ of colours, since Savitri’s outfits were all about simplicity and opulence.” Gaurang explored and recreated textiles to weave her journey from her childhood to her passing away. From mangalgiri’s and kota’s with prints for her growing days, to heavy brocades, silks, organza’s and handwoven sateen’s, chiffons for her golden era to subtle rendition for her later life. His team travelled extensively to museums and recreated the textiles of that time. Each detail of the textile, design, texture and colour were studied, and artisans were guided to recreate it. About his approach to perfection and meeting the expectations of the director of the film Nag Ashwin, “The director wanted me to make satins for specific scenes, but since I wanted all her looks to be pure handloom, I recreated the satin on handloom, and for the chiffons and georgettes. For instance, I replicated Savitri’s look for ‘Maya Bazaar’- which was a heavy kanjeevaram lehenga and blouse with an organza dupatta itself. It took us three months to get the colour, design and fabric woven.”
Source: The Hans India
The 7th edition of Home Expo India saw Smriti Zubin Irani, Union Minister of Textiles and Information and Broadcasting inaugurating the three-day event on April 16. While she applauded the Export Promotion Council for Handicrafts (EPCH) for their efforts, she also emphasised on skill development in craft and trade fair management. Organized by the Export Promotion Council for Handicrafts, Home Expo India 2018 is three segmented categories show comprising Housewares, Textiles and Furniture under one roof at the same time making it a one-stop expo for every visitor. The Expo will be one of leading business-to-business shows where a wide range of tableware, home textiles, kitchenware, houseware and bathroom accessories will be displayed. International buyers, leading manufacturers and exporters will share the same platform and will exchange various ideas related to the industry. O.P. Prahladka, Chairman- EPCH, Ravi K. Passi, Sagar Mehta, Vice Chairmen-EPCH, Sunil Sethi, President, Fashion Design Council of India (FDCI), and now President, (Academics), ACTERM, Rakesh Kumar, Executive Director, EPCH and members of committee of administration were also present during the inauguration ceremony. On the occasion, Smriti Irani also said that her association with EPCH as Minister of Textiles has always remained fruitful and applauded EPCH for always taking new initiatives for the promotion and development of handicrafts sector, whether it is enhancing the design capacity of India and business basis across the world, strengthen the quality of the product, or organizing the largest IHGF Delhi fair, which has been entered in Limca Book of world's records.
"Organizing product specific expo and covering three promising products segments of handicraft sector - houseware and decorative, floor furnishing and textiles, and furniture and accessories is a step in the right direction to enable the buyers to source their requirements without wasting time, energy and resources," she further said while adding, "EPCH has shown great vision under the leadership of O.P. Prahladka, Chairman EPCH and Rakesh Kumar in taking such initiative."Minister of Textiles, Information and Broadcasting also appreciated the efforts of Rakesh Kumar, Chairman – India Expo Centre and Mart, and Sunil Sethi, President, Fashion Design Council of India (FDCI) for starting Academy of Convention, Trade Fair, Event Research and Management, and said that this initiative will enhance the new skills sets as Prime Minister once said. While welcoming the Chief Guest, O.P. Prahladka, Chairman EPCH said that EPCH has ensured that select exhibitors display premium products to thoughtfully invited overseas buyers so that the best and exquisite products are on display for the best of people in the world. This event will showcase the finest artistic elements and craftsmanship in harmony with innovative designs and latest products. More than 650 Indian exporters of all the three categories will be displaying exquisite products of Houseware, decorative, furnishing, flooring and textiles and furniture and furniture accessories. Rakesh Kumar, ED – EPCH said that organizing product specific show on home and life products was the need of the hour. When EPCH organized the first Home Expo India in 2012, buyers preferred visiting product based exhibitions rather than all product categories shows to save their time and money. A large number of buyers from both traditional as well as emerging markets, which includes USA, European Union, Latin America, Middle East and Southeast Asia are visiting to source their requirement from the show. Home Expo India covers segments with maximum thrust and growth potential for Indian handicraft exporters who present a wide range of colourful handicraft items in home décor, furnishing, furniture, flooring, and textiles.
Source: Millennium Post
The rupee on Monday plunged 29 pa i se, or 0.44percent, to close at a six-month low of 65.49 against the dollar on widening trade deficit concerns amid heightened geo political worries.
Source: Business Standard
The rupee plunged over eleven percent against the dollar in the last months. Following this currency devaluation, the impact assessment of the devaluation on different sectors of economy, and whether it will be able to achieve its desired results of boosting the exporting sectors, is currently being debated. Exporters have welcomed the move with caution, since this will also increase the already surging cost of doing business by increasing the prices of energy, raw materials and transportation. However, for raw material producers, like cotton farmers, the devaluation is God-sent. They will benefit from both the devaluation of currency and the rise in international price of cotton, as payment for domestic cotton is directly linked to internationally prevailing prices. Textiles, the country’s largest exporting sector, will be impacted by the devaluation by a small increase in export volume as well as by the negative impacts of doing business at an increased cost. In the form of higher energy prices, the Reclassified Liquefied Natural Gas has become unaffordable, whereas the cost of raw materials has also increased. Where the latter accounts for 70 percent of the finished product, the former constitutes almost 15 percent. For sustainable growth in the textile sector, free availability of quality raw material is required. Being the major raw material in textiles, cotton has gradually deteriorated both in quality and in quantity over the last decade. The government now plans, as reported by several newspapers, to halt cotton imports or impose duties during crop harvest in an effort to ensure farmers get an attractive price and are encouraged to plant more in the next season. However, this appears to be untrue since the country already faces a shortfall of three to four million bales a year to maintain its current production level, let alone meet the increased requirement of rising exports. According to a report submitted to the cabinet by a special committee on cotton, production has faced virtual stagnation since 1991-92, fluctuating within the range of 10 to 12 million bales. In 2015-16, the output dropped even below 10 million bales – 9.9 million. Pakistan’s annual consumption needs are estimated at 15 million bales, turning the country into a net importer of cotton. If we put a ban on cotton imports or impose import duties our textile sector will starve and any textile production will not remain competitive. Therefore, the industry which has recently shown growth will start declining once again. Pakistan’s cost of manufacturing is already highest in the region. So if raw material price is further increased by 10 percent, as compared to the global price, there is no chance for the cotton spinning sector to survive. We have already lost one-third of our spinning capacity in the last four years due to a high cost of business. If duties are imposed on cotton imports now, we will likely lose another one-third of our spinning capacity. Pakistan’s industry already gets cotton at a price almost five percent higher than India due to crop shortage. The rate of cotton in India today is around Rs7,200 per bale, compared to Rs7,900 per bale in Pakistan. Internationally, the price of cotton was around 68 cents per pound at the start of the cotton season. Now it has currently risen to more than 82 cents per pound, and is expected to further increase. There has been a hike in the international cotton prices. A dollar was worth Rs105 during the last cotton season and is equivalent to Rs115 now; it will probably be more than Rs120, at least, during the next season. So phutti (cotton) rates will automatically be much higher the following year. Cotton prices in Pakistan are fixed in accordance with New York’s prices. So the devaluation of currency will already be getting farmers a much higher price for their cotton. With the devaluation and a higher international price there is certainly no requirement to impose any duty on cotton this season, as the farmers would reap substantially higher financial returns from the cotton crop. In the early 2000s, when the Argentinian currency lost its value, the agricultural produce became the country’s most precious currency. Grains were considered more reliable and more welcomed than cash because they are priced in dollars. They were traded for new vehicles, homes and watches. Even the Ford Motor Company, General Motors Corporation and Toyota Motors started country-wide sales pitches and taught their employees how to swap vehicles for grains. Restricting cotton import by imposing duty as a policy response to the declining cotton production is not the solution to the problem. We need imported cotton to meet our consumption and expansion requirements, especially if exports are to grow. Policymakers should focus on increasing the cotton cultivation area and production, especially as the issue of water scarcity intensifies. Among all Kharif crops, cotton requires the minimum amount of water, hence, special attention should be paid to increase its growing area this season. If the textile industry stagnates due to paucity of raw materials, cotton farmers will suffer and will have to export raw cotton instead, as in the case of sugar farmers. They will have to sell their produce at prices lower than the domestic price. On the other hand, the textiles export sector will also shrink, creating with an even greater trade deficit, which would be dangerous for the country’s economic security. Shahid Sattar is a former member of the Planning Commission. Hira Tanveer is a policy analyst.
Source: News International
Even as cheaper Chinese imports flood the market in Kabul, a small fashion house is fighting to preserve the traditional textiles once integral to Afghan culture. Cheap, Chinese-made nylon burkas are flooding Afghanistan’s north as consumers turn to affordable, mass-produced fabrics — but in Kabul a small, determined fashion house is fighting to preserve the traditional textiles once integral to Afghan culture. Launched in 2006, “Zarif” — “precious” in Persian — commissions traditional cotton and silk from artisanal weavers, then employs more than two dozen people — mostly women — to tailor and design the fabrics into handcrafted, embroidered clothing. But with cheaper imports saturating the market, they are struggling to keep local traditional methods afloat, says founder Zolaykha Sherzad. Afghan shopkeeper and provincial contractor of Zarif Design House shows fabrics to made a chapan (coat) at his shop in Mazar-i-Sharif. (AFP) Only decades ago, the textile industry was on par with Afghanistan’s legendary carpet trade, famed since the days of the old Silk Road. During its heyday textiles were more than just fabrics, with their patterns, colours and embroidery illuminating the origins and tribal history of their makers. “In the past, the fabrics were entirely embroidered, on the walls, the cushions... the wedding dresses,” says Sherzad. “But now, we are trying hard just to keep them as ornaments on jackets and coats, to maintain the know-how,” she adds, saying the decline in the craft has put large numbers of women out of work who once were able to make a living at home. With Zarif, she hopes to fill the gap while aiming to preserve Afghanistan’s textile traditions and designing contemporary takes on Afghan fashion staples. Afghan owner of Zarif Design House Zolaykha Sherzad (R) showing an older traditional chopan (coat) to her employees at the Zarif Design house in Kabul. (AFP)
Fighting the market
A visit to the bazaar in northern Mazar-i-Sharif shows the challenge she faces. There, bundles of striped and padded coats, or “chapans” — popularised in the West by ex-President Hamid Karzai — pile up in stacks at stalls. “Too bright,” she says, discarding the synthetic fabrics. For many consumers, however, they have their appeal. The cheaper knock-offs are printed on nylon, rather than silk, closely replicating traditional designs but at a third of the price. “These cost 800 to 1,200 afghanis ($11 to $18), compared to 2,500 ($36) for a traditional chapan,” explains Abdullah, a merchant. Now only the rich can afford the handmade silk chapans, often buying them as wedding gifts, while middle-class and working people opt for the synthetic designs. Markets across Mazar also burst with the polyester burqas Afghan women are forced by tribal culture to don. But even the fabrics used for this ubiquitous garment come increasingly from abroad. “China, India, Pakistan, everything comes from outside,” Hashem, a dyer and weaver for Zarif, tells AFP in the courtyard of his mud house on the outskirts of Mazar from where he manages the 10 women who weave for him at home. “In the old days I had 10 families working for me, today I have four,” he says while squeezing a skein of freshly dyed cotton. “Before,” he continues, “80% of the raw material came from the local market, today 80% comes from abroad.” Afghan tailors sewing clothes at Zarif Design House in Kabul. (AFP)
Working women
In founding Zarif, Sherzad — an architect by training — wanted above all to promote female employment, banned under Taliban rule from 1996-2001 and still the norm in large swathes of the country. According to data provided by the World Bank, 19% of Afghan women were employed in 2017 — which excludes the informal agricultural sector. Despite the economic crisis that has raged since the withdrawal of more than 100,000 NATO troops in late 2014, Zarif still employs 26 employees in its courtyard workshop, located next to a mosque and its blaring call to prayers. About 60% of the team is female, including the director Nasima along with the production manager Sara. Two embroiderers work full time while an additional 30 are called on at the discretion of the managers. Since its creation, Zarif has trained more than 85 women — but most of them have given up their jobs after getting married at the request of husbands who are reluctant to accept the presence of other men near their spouses. “The brake on women’s employment continues to be their husbands” says Sherzad.
Adapting to survive
To survive, Zarif relies on connections in Paris, where the company is supported by French fashion brand “Agnes b.”, along with a stable of faithful clientele in New York. And even as she seeks to preserve, she is also forced to adapt, scouring Afghanistan’s antique shops in search of richly crafted garments that can be refashioned into bags or the linings for men’s jackets. Silk encapsulates the challenge. Homespun silk from the western city of Herat was once used by Afghan producers for turbans. Now it is exported to Iran. “There’s only one artisan left in Afghanistan that knows the craft,” Sherzad says. “It’s necessary to train others, but for what? People no longer have the means and young people no longer wear turbans. We have to invent something else that uses silk.”
Source: The Hindustan Times
HCM CITY – Garment and textile firms should understand the needs of their workers and invest in enhancing human resource management to sustain a productive and quality workforce, a seminar heard in HCM City last Saturday. Phạm Xuân Hồng, chairman of the HCM City Association of Garment, Textile, Embroidery and Knitting, told the “Develop high quality garment and textile workforce in the context of international business integration” seminar that building a skilled and “high-quality” workforce has always been a major focus for the garment and textile industry. It is becoming an increasingly important factor since Việt Nam is acceding to many international trade agreements and has to compete with other countries. According to the 2017 Better Work report published by the International Labour Office and International Finance Corporation, Việt Nam is the fifth largest garment and textile supplier in the world and second largest to the US. Last year its exports were worth US$34 billion and they are expected to reach $35 billion this year. According to Dr Phạm Xuân Thu, who has done a lot of research on the industry, though the exports are huge the value addition is growing at a very slow pace. To bolster competition and add more value to Vietnamese garment and textile products, the industry should improve the quality of its workforce, he said. Also according to the report, the garment sector is the largest formal employer in the country, providing jobs to more than 2.5 million people. Thu said most garment and textile workers are young, with about 80 per cent of them being under 30, physically fit for the job and very hard-working. Besides, the rate of workers with technical skills in the industry is 21.1 per cent, which is higher than the average rate of other manufacturing and processing industries, he said. But the industry also faces some challenges such as its productivity, which is lower than the average rate for the country’s industrial sector. With the two of them being VNĐ56 million ($2,460) and VNĐ104.3 million ($4,590) per person per year. “Though the productivity of major garment firms is much higher than the average rate, Việt Nam has a huge number of small and household garment and textile businesses.” Another challenge is the high employee turnover rate, he said. At major garment and textile companies like Nhà Bè, Việt Tiến, and Phong Phú, it is 15-20 per cent. The number is much higher at small and FDI firms: 20-30 per cent and 30-40 per cent respectively. Thu said one of the reasons for this is that companies fail to meet the needs of their workers. The monthly salary of a garment worker is around VNĐ4.3 million, which is just enough to cover 75-80 per cent of their basic needs. “Though the salary has been raised over time there are still companies which fail to pay workers on time, leading to strikes and employees quitting.” Another reason is that employees tend to switch to other companies to look for better opportunities after getting training and experience, he said. Besides, with the main workforce in the industry being young women emigrant workers, they are highly likely to quit their jobs to marry and return to their hometown after a period of time, he explained. To retain employees, companies should identify their needs and make sure they are met and at the same time invest more in HR management, he said. He said from his observation most managers and team leaders at garment and textile companies have a background in engineering but not in HR, and so companies should train them in HR management. They should also offer advanced training courses to workers who show commitment, he added. — VNS
Source: Viet Nam News
The January 2 decision by the National Committee for Designating Minimum Wage to increase the minimum wage has left many dissatisfied, particularly within the garment sector. UNION OFFICIALS believe the new minimum wage of K4,800 is not enough to cover the increasingly high cost of living, especially in urban areas where most factories are located, and had advocated for a figure of K5,600 to K6,600. Employers, however, argue the increase is too great given the other challenges they face, including high land prices, frequent power outages and low labour productivity. There are concerns that the increase in wages will affect the competitiveness of Myanmar's garment sector globally, given that low wages have been the main driver of growth in the labour-intensive cut-make-pack garment industry. The next few years will tell whether the 25 percent increase has blunted the competitive edge of Myanmar’s garment industry. It will largely depend on whether the productivity of its workforce increases in line with the wage rise. Myanmar has the second lowest minimum wage in the region, with only the garment manufacturing giant Bangladesh paying its labour force less. While wages are comparatively low in Myanmar, the low productivity of its workers is the main reason that CMP garment factories have only trickled to Myanmar. A 2017 study by the Centre for Economic and Social Development found that productivity here is considerably lower than elsewhere in the region. In Thailand, Malaysia, and Vietnam, the garment sectors are about six times more productive than in Myanmar, while Cambodia and Laos are two to three times more productive. This means that despite Myanmar's relatively low wage companies are likely to find it more profitable to remain in these other countries. On the other hand, China’s minimum wage has risen to a point where it is now cost-effective to operate in Myanmar, and so there has been a steady migration of factories from China to Yangon. The risk associated with increasing the minimum wage is that it raises wage costs significantly but does not guarantee any increase in productivity. This could result in Myanmar losing the competitive advantage it needs to attract foreign investment in the garment industry. Manufacturers may instead choose not to relocate or move to a neighbouring country with higher productivity, such as Thailand, or one with a lower wage. Bangladesh is particularly attractive to garment manufacturers due to its lower minimum wage and higher productivity. To retain Myanmar's competitive advantage in the garment industry, the productivity of Myanmar's workers must increase. At present many garment factories in Myanmar use a system of bonuses to increase productivity and attendance, providing labour with a monetary incentive to meet production targets. While many of the larger factories are earning enough to accommodate the increase in minimum wage and maintain their bonus system, this is not the case for locally owned small and medium-sized factories that are mainly involved in sub contracting or very low-end CMP work. It is these smaller factories that will be most affected by the increase in the minimum wage. They will probably be forced to decrease the labour incentives offered to workers for meeting production targets in order to maintain wage costs. As a result, productivity is likely to fall, resulting in the further erosion Myanmar’s regional competitiveness. While it is difficult to argue that the cost of living is not rising, continually raising the minimum wage in the absence of gains in productivity is most likely not a sustainable solution. Instead, the immediate focus should be on reducing the costs of doing business to a level comparable to Myanmar’s regional counterparts to incentivise foreign investment in Myanmar’s garment industry. Myanmar’s government is already taking steps to reduce the costs of doing business through tax breaks and infrastructure improvements. The Ministry of Electricity and Energy recently announced plans to double Myanmar’s power generation capacity by 2022, which would address one of the biggest headwinds for garment factory operations. Poor transport infrastructure is another major burden for factory owners and the Ministry of Transport and Communications is working with the Japan International Cooperation Agency to ease congestion and improve access to Yangon port. Another option – one that has been successful in China and Vietnam – is a regional minimum wage that reflects the different cost of living in each state and region. In Yangon where the cost of living is very high, a minimum wage of K4,800 a day may not be enough for workers to support themselves without also undertaking a large amount of overtime. However, in a city such as Pathein, where the cost of living is lower, it might be feasible to have a lower minimum wage. A regional minimum wage could potentially attract garment factories to industrial zones in smaller cities once the necessary infrastructure is built. It is too early to say with any certainty whether increasing the minimum wage will negatively impact Myanmar’s competiveness. However, with reduced costs and increased productivity, the garment industry can continue to be a strong engine for national economic growth.
Source: Frontier Myanmar
Just over a week ahead of the five-year anniversary of the devastating Rana Plazafactory collapse, Better Buying and the Ethical Trading Initiative (ETI) have announced an 18-month partnership in Bangladesh to support and promote responsible buying practices within garment industry supply chains. The two NGOs will invite Bangladeshi garment factories to anonymously evaluate their buyers using the Better Buying online rating platform, which gives buyers anonymized ratings from suppliers on seven key aspects of purchasing practices:
• planning and forecasting
• design and development
• cost and cost negotiation
• sourcing and order placement
• payment and terms
• management of the purchasing process, and
• CSR harmonization.
TI’s apparel and textiles lead, Martin Buttle, pointed out that 2017 joint ETI and International Labour Organisation (ILO) research shows that purchasing practices can negatively impact wages and working conditions in global supply chains. He added that ETI believes Better Buying scores and analysis will therefore serve as an independent method of determining strengths and weaknesses within brands’ procurement cycles. “We are seeing increasing debate about the impact of buying practices on the ability of suppliers to maintain good labour standards,” he said. “International retailers and brands can therefore only gain from this initiative, in terms of underpinning sustainable business for all, building their reputation and improving conditions for workers.”
Already on board: Bonmarché
UK clothing company and ETI member Bonmarché started engaging with Better Buying in the fourth quarter of 2017 by providing the platform with a list of strategic suppliers, along with a letter inviting its suppliers to evaluate the company’s performance. The results from all suppliers that rated were then aggregated; the anonymized findings were analyzed by the Better Buying team and provided to Bonmarché earlier this month. Ian Leader, Head of Quality Assurance & Sourcing at Bonmarché, said: “We welcome the Better Buying initiative, promoted by the ETI, and it has already proven a really useful tool for Bonmarché as part of our continual focus on improving purchasing practices.” Better Buying and ETI expect the information and analysis that will result from the supplier ratings to help companies understand which purchasing practices are working well and which may benefit from focused efforts to improve. Better Buying co-founders Marsha Dickson and Doug Cahn said: "By using Better Buying, brands will be able to identify how their buyers, product developers and others responsible for bringing product to market can improve their day-to-day business activities, thus helping their suppliers uphold better labour standards.” The Rana Plaza tragedy shined a light on the unsafe, unhealthy working conditions endured by millions of garment workers in East Asian countries, most of whom are women, and sparked a global movement to hold clothing companies accountable for the wellbeing of their workforce by raising standards, increasing transparency through everything from campaigns, documentaries, research projects, transparency rankingsand digital mapping initiatives; and giving names and faces to those who make our clothes. Launched in 2006, Sustainable Brands has become a global learning, collaboration, and commerce community of forward-thinking business and brand strategy, marketing, innovation and sustainability professionals who are leading the way to a better future. We recognize that brands today have… [Read more about Sustainable Brands]
Source: Sustainable Brands
For the first time since its inception in 2005, the sustainable cotton initiative Cotton made in Africa (CmiA) cooperates with more than one million cotton farmers, 17 percent of whom are women. In 2017, a record sum of 90 million textiles bore the CmiA quality label. This was announced by the initiative in a press release on Thursday. “Africa is close to my heart - both personally and as a businessman, I feel very connected to our neighbouring continent. When I founded the Cotton made in Africa initiative back in 2005, I was very aware about the fact that our future also depends on overcoming the big challenges in Africa. Here, CmiA offers solutions and a chance to positively touch the lives of millions of people in Sub-Saharan Africa,“ commented CmiA founder Dr. Michael Otto on the positive development. In 2017, the number of textiles that bore the CmiA label increased by 79 percent compared to the previous year, reaching a new record high. “We achieved a record of about 90 million CmiA labelled textiles. Sustainability is not a niche product anymore”, stressed Tina Stridde, managing director of the Aid by Trade Foundation. “Every textile that bears the CmiA label is a step in the right direction. Because every CmiA-labelled product protects the environment and supports millions of people in Africa in creating a new perspective for themselves in their home country”, added Stridde. For each textile with CmiA label, partner companies pay a license fee that flows back into the project areas. Thus, instead of collecting donations, the initiative has chosen a market approach. A total of 36 companies and brands currently order CmiA cotton - among them the Otto Group, the Rewe Group, Tchibo, Aldi Süd, Jack & Jones, Asos and smaller fair fashion brands such as Hiitu and Cooekid from Uganda. The initiative also put together a few general numbers: On average, a CmiA smallholder farmer has a crop area of just under 1.5 hectares. In addition to farmers, more than 11,000 factory workers in the African cotton processing industry are part of the initiative. Around 496,000 metric tons of ginned cotton from Ethiopia, Burkina Faso, Ivory Coast, Ghana, Cameroon, Mozambique, Zambia, Tanzania and Uganda have been produced according to the CmiA sustainability criteria in 2017. The label for sustainable cotton stands for environmental protection and training in sustainable and modern cotton cultivation. The training enables smallholder farmers to improve their working and living conditions through their own efforts. In addition, CmiA certifies the work in the so-termed ginneries, the first step in the further processing of cotton.
Source: Fashion United India
EFI is launching its Reggiani COLORS digital printer at the 14-17 April ITM Exhibition in Istanbul. EFI's exhibit in hall 6, stand 607, also highlights important advances in traditional manufacturing, with new EFI Mezzera technology for more environmentally sustainable dyeing on denim garments. The EFI Ecosystem of technologies leverages EFI Reggiani's 70 years as a leader in textile industry innovation with digital and conventional processes. EFI Reggiani products, along with some of the industry's most advanced software innovations, simplify the transition from conventional to digital production. At ITM, EFI experts will highlight the company's completely renewed digital printer range, products that give users improved production workflows, including the ability to move to greener, environmentally friendly processes.
Breakthrough COLORS for digital textile printing
EFI's newest Reggiani offering - the company's fourth high-tech textile printer debut in less than one year of focused innovation development - offers a unique imaging configuration that is especially important for customers seeking to establish a distinct competitive advantage. "The new EFI Reggiani COLORS printer launching at ITM is a breakthrough offering for textile producers, offering up to 12 colours that can be printed in a row," said EFI Reggiani Vice President and General Manager Adele Genoni. "This unparalleled new digital printer brings new creativity to the industry with an explosion of colour. And, along with the entire portfolio of advanced EFI Reggiani textile production solutions, it helps our customers reach new levels of sustainability, efficiency and profitability." The EFI Reggiani COLORS digital printer gives users the ability to print nearly any configuration of inks in 180-, 240- and 340-mm widths - including using special inks, inks of different chemistry types, and chemistry for special treatments such as for higher-penetration printing, all at the same time. It prints up to 560 square metres per hour, delivering unmatched printing quality and uniformity with an extended colour gamut, superior colour depth and increased penetration into fabric. Users can place the printer's 12 colours in a high-productivity 6+6 configuration for superior imaging at much faster throughput speeds. An innovative continuous ink recirculation system ensures outstanding reliability and lets users print with a wider variety of inks while reducing purging and maintenance. Plus, a simplified printhead design and proprietary electronics on the printer reduce setup time and streamline maintenance tasks. New EFI Reggiani printing software on the COLORS model allows for real-time image processing, which enhances users' overall workflow performance.
Advanced production workflow
The EFI Ecosystem of industrial textile technologies helps customers address a wide range of industry challenges, including the need to cost-effectively produce samples and smaller garment lot sizes, gain faster time to market, and produce designs that are difficult or impossible to produce with conventional technologies. As users seek automation in productivity, EFI's advanced tools provide a streamlined workflow and reduced errors without compromising on quality. The ecosystem includes the EFI Fiery Textile Bundle, which combines technologies for efficient textile design and file preparation with the Fiery proServer digital front end (DFE) for professional colour management and high-quality RIP output on EFI Reggiani digital printers. Fiery DesignPro tools in the bundle give stakeholders throughout a design team the power to quickly and easily create professional designs, seamless repeat patterns, different colourways, colour libraries and palettes. EFI Optitex software provides an integrated 2D/3D digital solution for the fashion and textile industry to enable companies to quickly create true-to-life 3D digital garments that inspire. Optitex 3D Design Illustrator, a new plug-in tool, gives designers the freedom to validate and customize 3D garments in Adobe® Illustrator®. Designers can visualize 3D garments, with accurate proportion and scaling, and customise the garment's fabric, texture, stitching, embellishments, print patterns and graphic placement without waiting for a printed sample.
Sustainable denim fashion
New EFI Mezzera indigo dyeing technology making its worldwide debut at ITM gives textile companies a way to eliminate the excess water usage, chemistry waste and high operating costs of denim production. EFI partnered with denim producers and manufacturers from around the globe to create the new Mezzera LOOP SLASHER product, which gives users a more sustainable process, reducing environmental impact with lower water consumption and operating costs. The new product uses nitrogen sealed chambers to improve indigo performance and preserve chemicals. Compared with other denim production technologies, the EFI Mezzera LOOP SLASHER has a 35% smaller footprint and uses 50% less indigo liquor. It also limits the total amount of chemicals needed in denim production, preserving 30% to 40% of hydrosulphite needed in the process for re-use.
Source: Wide Format Online
