image rotation

MARKET WATCH 09 MAY, 2018

NATIONAL

 

INTERNATIONAL

Suresh Prabhu seeks inputs from other Ministries to boost exports

New Delhi :The Commerce Ministry has roped in other key Ministries and Departments such as Agriculture, Textiles, Electronics & IT, Pharmaceuticals, Chemicals and Petrochemicals, Food Processing, Petroleum and Animal Husbandry and Dairying to help it draw up and implement a strategy for boosting exports from various sectors. In the first Inter-Ministerial meeting on ‘Sectoral Export Promotion Strategy’, held on Tuesday, Commerce Minister Suresh Prabhu asked all the attending officials to prepare an action plan on boosting exports of products handled by their respective Ministries and send it to the Department of Commerce within the next fortnight. “The Department of Commerce will take assistance from the Ministry of External Affairs to implement the action plans through our commercial missions abroad,” according to an official release. Prabhu pointed out that the Union Cabinet had approved ₹5,000 crore to promote export of services in champion sectors and the Department of Commerce (DoC) is organising the next Global Exhibition on export of Services at Mumbai on May 15, 2018. Commerce Secretary Rita Teaotia said that while there has been a 10 per cent growth in merchandise exports in the current year, India’s share in global trade is static at 1.7 per cent in merchandise exports and 3.4 per cent in services exports. “We need to look at new markets. While we have done well in US and Europe there has not been adequate focus on emerging markets in Asia. We need to focus more on exports to China, Latin America and Africa,” she said.

Source: Business Line

Back to top

Direct Bengaluru flight to boost textile trade

 

Textile traders will have a direct linkage with wholesalers and manufacturers once AirAsia connects Surat with BengaluruTextile traders will have a direct linkage with wholesalers and manufacturers once AirAsia connects Surat with Bengaluru

Surat: Textile traders and exporters in the country’s largest man-made fabric (MMF) sector are upbeat following announcement by budget carrier AirAsia India of launching its flight service between Bengaluru and Surat from June 1. Bengaluru being a major textile and garment hub in south India, textile traders will have a direct linkage with wholesalers and manufacturers once AirAsia connects Surat with Bengaluru from June 1. Industry sources said Karnataka has over 5 lakh garment workers and that Bengaluru alone houses more than 1,300 garment manufacturing units, which uses both MMF and cotton fabrics. Until now, dealers and manufacturers from Bengaluru were reluctant to visit Surat due to treacherous rail and road journey as Surat wasn’t connected with air route. The textile sector expects that the export of polyester fabric is likely to witness a boost with more international connectivity to be provided by AirAsia from Bengaluru. Southern Gujarat Chamber of Commerce and Industry’s textile committee chairman Devkishan Manghani said, “As Delhi is the textile hub in north India and Kolkata in east India, Bengaluru is of south India. AirAsia’s announcement about Bengaluru-Surat flight service has made local traders and those in textile sector here happy. AirAsia is operating on international routes as well and the connectivity to Bengaluru is going to boost export of textiles from Surat.” Federation of Surat Textile Traders’ Association (FOSTTA) secretary Champalal Bothra said, “South India alone has 25 per cent market share for fabrics manufactured in Surat. Bengaluru is the hub of textile trade and it is connected with all the textile mandis in south India. The flight connection with Bengaluru will definitely boost the textile business. We have been demanding air connectivity to South India for the past 10 years. At last, AirAsia has fulfilled our dream. Central government should consider Surat as a tier-I city and provide all infrastructural and transportation facilities to us.”

Source: Time of India

Back to top

Indian economy to grow at 7.3% in FY 2018-19: Report

Robust activities in certain industries including manufacturing will help the Indian economy to grow to 7.3 per cent in fiscal 2018-19, according to a recent report. It says that the negative impact of demonetisation as well as GST has subsided to a large extent. The economic growth of the country was 6.6 per cent in the financial year 2017-18. The rise in foreign direct investment (FDI) is also expected to boost the economic growth of the country, states the BMI research by Fitch Group Company. FDI’s growth can be attributed to the improvements in the business conditions and certain regulatory amendments like liberalisation of domestic single brand retail trading to 100 per cent ownership through FDI. These measures are expected to encourage foreign investors to invest in India, said a news agency quoting the research. The BMI research has predicted that growth will pick up in India and Sri Lanka, while Bangladesh and Pakistan will witness a slowdown in their economies due to rising political uncertainty and an increase in economic imbalances, respectively.

Source: Fibre2Fashion

Back to top

Cotton output for April estimated at 360 lakh bales: CAI

The total cotton supply for this season up to September 30, is projected at 410 lakh bales, which includes opening stock of 30 lakh bales at the beginning of the season. The Cotton Association of India (CAI) has retained its April estimate of the cotton crop for the season 2017-18, at 360 lakh bales of 170 kgs each, but has revised state output figures. The CAI has revised the state outputs, and for Maharashtra and Karnataka the production are estimated to be higher by 2 lakh bales and 50,000 bales, respectively, CAI said in a release issued here. While the production in Telangana and Andhra Pradesh are now estimated lower by 1.50 lakh bales and 1 lakh bales, respectively. In Gujarat the total output was estimated at 105 lakh bales this season compared to 89 lakh bales last year. The total cotton production was 337.25 lakh bales in 2016-17 season. The cotton marketing season begins from October 1. he Statistics Committee of the Association has projected total supply up to April 30, at 347 lakh bales, that included arrivals of 311 lakh bales up to April 30, and imports which was estimated at 6 lakh bales up to the end of last month. Further, the committee has estimated cotton consumption from October 2017 to April 2018 at 189 lakh bales at an average of 27 lakh bales per month while the shipment of cotton till April 30, has been estimated at 61 lakh bales. The stock at the end of April 2018, is estimated at 97 lakh bales including 52 lakh bales with textile mills while the remaining 45 lakh bales are estimated to be held by the Cotton Corporation of India (CCI) and others including MNCs, traders, ginners among others. The total cotton supply for this season up to September 30, is projected at 410 lakh bales, which includes opening stock of 30 lakh bales at the beginning of the season. The CAI has estimated domestic consumption for the season at 324 lakh bales while the exports are estimated to be 65 lakh bales. The carry-over stock at the end of 2017-18 season is estimated at 21 lakh bales, CAI said. SM DSK DSK DSK

Source: The Economic Times

Back to top

Rupee rises 5 paise to recover from 15-month low

The rupee today recovered from 15-month lows to close five paise higher at 67.08 against the US currency on suspected RBI intervention and stray dollar demand. Suspected intervention by the Reserve Bank coupled with dollar selling by foreign banks predominantly helped the rupee to stay afloat, a forex dealer commented.

The local unit witnessed wide swings between a high of 66.98 and a low of 67.27 -- fresh 15-month low -- in day trade. The local unit finally settled at 67.08, showing a gain of 5 paise, or 0.07 per cent. The currency had closed at a 15-month low of 67.13 against the US currency yesterday. Crude oil prices retreated from 3-1/2 year highs as investors waited on an announcement by President Donald Trump on whether the United States will reimpose sanctions on Iran. Brent crude, an international benchmark, was trading at USD 75.50 a barrel in early Asian trade. In its first retreat in a week, West Texas Intermediate crude dropped 1.3 per cent to $69.80 a barrel, the first retreat in a week. A strong dollar in overseas markets however restricted any major gain in the rupee. The US dollar advanced its winning streak against major rivals following the US Federal Reserve bank chairman Jerome Powell comments to keep the path of monetary policy normalisation throughout 2018. The RBI, fixed the reference rate for the dollar at 67.0809 and for the euro at 80.0074. The yield on the benchmark 7.17 per cent debt maturing in 2028 drifted to 7.58 per cent from 7.62 per cent. Meanwhile, domestic bourses failed to hold early gains and ended near flat in a volatile trade. The dollar index, which measures the greenback's value against a basket of six major currencies, was higher at 92.93. In the cross currency trade, the rupee bounced back against the pound sterling to finish at 90.58 from 90.83 and also recovered against the euro to end at 79.60 from 79.97 yesterday. The Pound sterling remained under pressure against the US dollar ahead of the Bank of England (BoE) meeting on Thursday even as the tussle over Brexit between the House of Lords and the government continues. The home unit, however dropped further against the Japanese Yen to close at 61.55 per 100 yens as compared to 61.42 earlier. In forward market today, premium for dollar displayed steady to firm trend due to lack of market moving factors. The benchmark six-month forward premium payable in September remained stable at 101-103 paise, while the far-forward February 2019 contract moved up to 231.50-233.50 paise from 229-231 paise previously.

Source: The Economic Time

Back to top

K T Rama Rao pushes for more handloom

Hyderabad: More handloom clothes will be made available online and in shops for the public to purchase. Minister K T Rama Rao directed officials to make arrangements to enhance the TSCO website and stalls, and take-up rebranding measures. The officials informed the Minister that all measures were being taken to ensure that the distribution of sarees during the Bhathukamma festival was done without any difficulties. The sarees are being manufactured in the state and they will be available for sale in the 3rd week of Sep. The saree designs and quality were selected after discussions with various women’s associations, the officials pointed. Mr Rao said there was a need to set up a training centre to train artists and develop skills in the apparel parks at Gundlapochamapally and Pashamylaram . Reviewing the functioning of apparel units in the Telangana State Industrial Infrastructure Corporation park, the minister directed the officials concerned to act upon the lease of units operating in these parks which were not part of the textiles sector.

Source: Deccan chronicle

Back to top

KTR for cancellation of permit of firms misusing apparel park

Industries and Textiles Minister K. T. Rama Rao has directed the officials to take steps to cancel permissions accorded to firms operating from the Gundlapochampally apparel park if they are engaged in activities other than apparel manufacturing. Officials should explore options for setting up training and skill development centre for artisans engaged in production of handicrafts at the apparel park. The Minister, who reviewed the developments in textiles sector on Tuesday, wanted officials to ensure that basic infrastructure required for facilitating effective functioning of the firms located in the apparel park was developed and the government was in favour of constitution of a corpus fund for taking care of maintenance and related aspects. The government was working out plans to attract more investment to the apparel park located at Pashamailaram and the officials of the TS Industrial Infrastructure Corporation should take steps for putting in place necessary infrastructure. The Minister said the demand for handlooms was on the rise and the Telangana State Handloom Weavers Cooperative Society should, accordingly, draw up plans to enhance the number of centres operated by the society at different places and re-brand the products in tune with the increasing demand besides hosting the details of the products online. According to an official release, Mr. Rama Rao reviewed the progress of the schemes launched for weavers, including upgradation of the looms, and wanted the officials to appoint community coordinators, if need be, for effectively taking these programmes to the beneficiaries. Officials informed the Minister of the steps being taken for distribution of Bathukamma sarees to eligible beneficiaries and said the sarees would be available for distribution by the third week of September.

Source: The Hindu

Back to top

Handloom twist to chiffons

One normally doesn’t think of chiffons in the context of handlooms. Chiffons have been the go-to fabric of choice for young sari wearers who likes the soft drape quality of the sheer, lightweight silk. Chiffons make for ideal evening dresses and bridal outfits. Sensing chiffon’s appeal to the younger clientèle, textile designer Gaurang Shah worked towards giving the fabric a handloom makeover. After a series of experiments and trials, a 20 denier pure silk yarn was twisted in three ply and two ply with alternate twists, and then woven by handloom weavers to create the textured and wrinkled chiffons, crafted to a 50-gram textile. “It is a refreshing, new twist that will make the wearer look fresh and in vogue all the time. It is a combination of several dyeing and printing surface techniques from textile clusters across India,” says Gaurang, who likens the handloom chiffon collection to a playful silken rendition of the modern day maharani. The designer has over the years transformed the wardrobe of contemporary women with his interpretation of ancient Indian textiles. He is confident that women who love to wear chiffons will be surprised by the handloom variety that gives chiffon an edge with its soft drape abilities and shimmering appearance.

Source: The Hindu

Back to top

Global Textile Raw Material Price 2018-05-08

Item

Price

Unit

Fluctuation

Date

PSF

1392.87

USD/Ton

0.45%

5/8/2018

VSF

2183.97

USD/Ton

0%

5/8/2018

ASF

2953.86

USD/Ton

0%

5/8/2018

Polyester POY

1458.86

USD/Ton

0.16%

5/8/2018

Nylon FDY

3346.66

USD/Ton

0%

5/8/2018

40D Spandex

5656.32

USD/Ton

0%

5/8/2018

Nylon POY

1744.03

USD/Ton

0.91%

5/8/2018

Acrylic Top 3D

3598.05

USD/Ton

0%

5/8/2018

Polyester FDY

5939.14

USD/Ton

0%

5/8/2018

Nylon DTY

1712.61

USD/Ton

0.46%

5/8/2018

Viscose Long Filament

3079.55

USD/Ton

0%

5/8/2018

Polyester DTY

3063.84

USD/Ton

0%

5/8/2018

30S Spun Rayon Yarn

2961.71

USD/Ton

0%

5/8/2018

32S Polyester Yarn

2180.83

USD/Ton

0%

5/8/2018

45S T/C Yarn

3000.99

USD/Ton

0%

5/8/2018

40S Rayon Yarn

2325.38

USD/Ton

0%

5/8/2018

T/R Yarn 65/35 32S

2545.34

USD/Ton

0%

5/8/2018

45S Polyester Yarn

3126.69

USD/Ton

0%

5/8/2018

T/C Yarn 65/35 32S

2686.75

USD/Ton

0%

5/8/2018

10S Denim Fabric

1.46

USD/Meter

0%

5/8/2018

32S Twill Fabric

0.90

USD/Meter

0%

5/8/2018

40S Combed Poplin

1.25

USD/Meter

0%

5/8/2018

30S Rayon Fabric

0.70

USD/Meter

0%

5/8/2018

45S T/C Fabric

0.74

USD/Meter

0%

5/8/2018

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15712 USD dtd.  8/5/2018). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

Back to top

China's Exports Climb, Imports Jump on Solid Global Demand

China’s overseas shipments exceeded estimates while imports surged, as the global economy continued to support demand. Exports rose 12.9 percent in April in dollar terms, the customs administration said Tuesday. Imports surged 21.5 percent, leaving a $28.8 billion trade surplus. “The data show continued strong growth of domestic demand and a rebound, albeit not too vigorous, of external demand,” said Dariusz Kowalczyk, senior emerging-market strategist at Credit Agricole SA. The swing back to a trade surplus is welcome for the yuan, he said. The world’s largest exporter continues to benefit from robust global demand even as trade tensions with the U.S. persist. The U.S. last week asked China to cut the trade deficit and Beijing urged Washington to end its investigation of Chinese intellectual property practices. The talks will continue as President Xi Jinping’s top economic adviser plans to visit Washington, the White House said Monday. China’s trade surplus with the U.S. increased to $22.2 billion in April, the first time that the gap has widened since November, data compiled by Bloomberg show. President Donald Trump’s threats of tariffs on some $150 billion of imports from China still loom, and duties could be imposed after a public comment period ends May 22. That would escalate tensions as Beijing vowed to follow suit with levies aimed at U.S. goods including soybeans and aircraft, and economists say the threats are spurring businesses to accelerate trading activity to avoid potential duties. “Data in April and May could be distorted by the anticipation that the U.S.-China tariffs will hit in early June, so both exports and imports could do well in these two months as businesses are making orders in advance,” said Tommy Xie, an economist at Oversea-Chinese Banking Corp. in Singapore. “Looking at global environment, the recovery is still on track despite the divergence of performances in different economies. That is a good thing for China’s exports.”

Source: Financial Express

Back to top

Austria : Lenzing revenue down 6.1% in Q1FY18

The revenue of Lenzing Group in the first quarter of fiscal 2018 decreased 6.1 per cent, from the prior-year quarter to €550.3 million. This drop is mainly attributable to less favourable currency exchange rates. The net profit for the period dropped 33.3 per cent from €75 million in the first quarter of the previous year to €50 million. Group earnings before interest, tax, depreciation and amortization (EBITDA) fell 24.8 per cent to €101.6 million mainly due to softening prices for commodity viscose and increasing costs for key raw materials. The EBITDA margin decreased to 18.5 per cent in the first quarter of 2018 compared to 23 per cent in the first quarter of 2017. Earnings before interest and tax (EBIT) declined by 32.7 per cent to €68.9 million, which resulted in a lower EBIT margin of 12.5 per cent (Q1 2017: 17.5 per cent).. Earnings per share equaled €1.89 (Q1 2017: €2.75). "Following the record year of 2017, Lenzing began the expected challenging 2018 financial year with a decline in revenue and earnings. Market headwinds were clearly noticeable in the first quarter but still we are pleased with the solid results given the more demanding market environment. At the same time, we are forging ahead with implementation of our corporate strategy sCore TEN. Expansion of production capacities for our specialty fibres is also progressing," said Stefan Doboczky, chief executive officer of the Lenzing Group. "We are convinced of the merits of our chosen strategy, which will help us to be more resilient in the upcoming quarters." Capital expenditures more than doubled in the first quarter of 2018 to €58.9 million, up from €26.9 million in the prior-year period. This is mainly due to the expansion of production capacities for specialty fibres in Heiligenkreuz, Burgenland and Mobile, Alabama in the US as well as the expansion and modernisation of the dissolving pulp plants in Lenzing, Austria and Paskov, Czech Republic. In line with the corporate strategy sCore TEN, the company is pressing ahead with these projects as well as with planning work on construction of the next state-of-the-art lyocell production facility in Prachinburi, Thailand. The Lenzing Group sees a number of, in part contradictory, factors which limit the visibility over fibre prices in 2018. The prices for several key raw materials, e.g. caustic soda, remain at a very high level and their further development is difficult to estimate. These general conditions are expected to form the basis for a challenging market environment in the commodity viscose fibre business during the coming quarters. Coupled with anticipated exchange rate fluctuations, the Lenzing Group expects its results for 2018 to be lower than the outstanding results in the last two years.

Source: Fibre2Fashion

Back to top

Jeanologia to participate in Bangladesh Denim Expo

Jeanologia, the Spanish leader in the development of sustainable and efficient technology, will be presenting its latest collection at the Bangladesh Denim Expo, in booth 32. The collection will be based on the new production model which is technological, sustainable, and respectful of workers’ health. The expo will be held on May 9 and 10, 2018, in Dhaka. The collection will reveal the key factors showing how it is contributing to the transformation of the Bangladeshi industry, moving towards a complete digitalisation with Jeanologia as the expert technology partner. The capsule collection, created using the combination of Jeanologia technologies, shows two completely identical garments that have used two different production processes: the analogue and the digital. Jeanologia’s Asia division director, Jordi Juani said, “The traditional model was the one being used in the country; production with low value-added and based on manual processes and, the digital one is the one that we have been introducing and attains a high value-added product, completely sustainable and with less production time. The combination of Jeanologia’s laser, ozone and eflow technology, together with the correct choice of fabric made by our Light Sensitive Fabric tool, manages to save 80 per cent in water and 50 per cent in chemical use in this collection, reducing the production time 30 per cent. Furthermore, with our EIM software, we have measured the environmental impact of each garment, closing the cycle perfectly and getting completely sustainable results and respecting workers’ health.” The collection has been fully created in Bangladesh, from the fabric to the garment finishing, meaning that all the players involved in the Bangladeshi textile industry are taking part in the company’s mission to create an ethical industry, eco-efficient and sustainable. Jordi Juani will also talk on the topic ‘Made in Bangladesh. From Analogue to digital’ in hall 4, on May 9, 2018. He will explain the transformation of the Bangladeshi textile industry leading to the digital revolution and how Jeanologia, as the expert technology partner, has been depended on in making the industry more competitive, innovative and sustainable.

Source: Fibre2Fashion

Back to top

Shima Seiki Italia opens first office in Germany

Shima Seiki Italia has opened its first office in Germany. Located in the city of Haibach, 50 kilometres from Frankfurt, this is the first office directly managed by the Italian branch of Shima Seiki Mfg., Ltd. Shima Seiki is the leading developer of computerised flat knitting machines and Wholegarment knitting machines, headquartered in Wakayama, Japan. The new office, with 250 square metres of space has a machine room, a showroom, and also a room for demonstrations and courses for Apex 3.4, which is the latest design system. This is the first step for the further development in the area that over time, will enable to give an efficient support to Shima Seiki customers in Germany. In an interview with Pambianco news, Nobuyuki Sasamoto, president of Shima Seiki Italia said, “Shima Seiki covers a large part of Europe and also other areas in the world thanks to well-distributed network of branches, dealers and agents. In addition, we have always wanted to enter the German market with great fervour because that is where our biggest competitor is coming from.” “Moreover, the German market is very important for us because there are many famous brands that belong to different sectors, such as sportswear, medical industries, automotive, home furnishing and so on. Therefore, this office in Haibach represents a new challenge for Shima Seiki which, if ends up being successful, means that it can also be found in all the other markets in which these sectors are developed,” he added. Shima Seiki has already started collaborating with several local brands which are Escada, Hugo Boss, Marc Cain, Marc O'Polo, Adidas, and Puma.

 

Source:Fibre2Fashion

Back to top

Egypt's garment exports up 17% to $385 mn in Q1 2018

Garment exports from Egypt fetched $385 million (LE 6.77 billion) in the first quarter of 2018, showing an increase of 17 per cent over exports of $330 million during the same period of the previous year, an Egyptian daily reported quoting data from the Ready Made Garments Export Council. The council expects $1.8 billion exports this year. Of the total export in January-March 2018, around 48 per cent or $185 million of garments were destined to the US. This a 16 per cent jump compared to $160 million during the comparable period of 2017. Month-wise, exports earned $129 million, $133 million and $123 million in January, February and March respectively, compared to exports of $104 million, $110 million and $116 million in the corresponding months of the previous year. If the current trend continues, the council is hopeful of achieving $1.8 billion in exports this year, the daily said quoting council executive director Sherin Hosny. Egyptian garment industry is also expected to benefit from the recently agreed African Continental Free Trade Area (ACFTA), as it will boost Egyptian apparel exports to other African countries, including South Africa.

 

Source:Fibre2Fashion

Back to top

Cambodia and Romania talk trade, EBA

Cambodia has pleaded with the European Union to continue trading with the kingdom under the Everything-but-arms initiative, arguing it plays a key role in the development of the country. The request was made by Cambodian officials during a meeting Monday with a visiting delegation from Romania, a member of the EU located in Southeastern Europe. Tek Reth Kamrang, Cambodia’s Secretary of State at the Ministry of Commerce, told the Romanian Deputy Minister of Foreign Affairs, Monica Dorina Gheorghita, that EBA has helped the kingdom reduce poverty levels and diversify its industry. “The visit of the Romanian delegation is very important as it allows them to see first-hand the positive impact of the EBA treaty in our economic development,” said Ms Reth Kamrang. Everything-but-arms, or EBA, is an initiative of the EU under which all imports to the bloc from the Least Developed Countries are duty-free and quota-free, with the exception of arms. EBA entered into force in 2001 as part of EU’s Generalized System of Preferences, or GSP. Ms Gheorghita acknowledged the impact of EBA on Cambodia’s economic development and agreed to ask fellow European leaders to continue to support the scheme. In late February, EU’s foreign ministers issued a statement expressing concern over the deterioration of democracy in Cambodia, and urged the government to engage in a constructive dialogue with the elected opposition. The statement pointed out that the EU is Cambodia’s biggest export market, and that the European bloc grants the kingdom preferential access to its vast market under the EBA scheme. Kaing Monika, deputy secretary general of the Garment Manufacturers Association in Cambodia, told Khmer Times that despite its relatively small size, Romania has a lot of potential when it comes to trade. “It has a sizable population of about 20 million and is one of the fastest growing economies in the EU. The country could absorb a lot of our exports,” he said. The EU market now absorbs nearly 40 percent of Cambodia’s garment and footwear exports, according to the General Department of Customs and Excise.

Source: Khmer Times

Back to top

Time to take EU-Bangladesh relations to new heights

Reflecting on the EU-Bangladesh relationship on Europe Day. Bangladesh and the European Union have long been sharing a friendly relationship, which has grown stronger and warmer over time. Since the establishment of formal diplomatic ties in 1973, both Bangladesh and the EU have come a long way and witnessed socio-economic changes over the long four decades. The EU has established itself as the largest trade bloc in the world — average GDP per capita in the EU has almost doubled over the past 20 years. In the meantime, Bangladesh has also attained remarkable socio-economic development and appeared as a model of development. Evolving from the rubble of the devastating war in 1971, the country now has an expanding economy with macroeconomic stability, 7%+ annual average GDP growth, robust performance of exports, and strong foreign currency reserves. The EU has consistently been a trusted partner of development of Bangladesh, and has contributed to attaining the status of middle-income country. Now we need to focus on how the partnership between Bangladesh and the EU could be further deepened in the future, especially when Bangladesh is on track for confirming its presence in the middle-income country club by 2024. The EU is a major player in the global economy in terms of trade and investment. The trade bloc is also the top trading partner for 80 countries. Also for Bangladesh, the EU continues to be a strong trading partner and a source of investment for more than four decades. The EU’s imports from Bangladesh reached $19.35 billion in 2016-2017 fiscal year, accounting for around 55.84% of Bangladesh’s total trade. It is mainly due to the trade preferences Bangladesh gets from the EU under its “everything but arms” arrangement, which grants duty free, quota free access for all exports, except arms and ammunition. It’s encouraging to note that our trade with the EU is growing. EU’s imports from Bangladesh have almost trebled from $7.5bn to $19.3bn in the period between 2008-2007 and 2016-2017 fiscal years. The accumulated growth of Bangladesh’s exports to the EU was 156.27% in the last 10 years. Currently, apparel is the main export item of Bangladesh, which represents around 92% of our total exports to the EU. In recent times, frozen food, agri-products, footwear, leather products, and bicycles have also appeared to be promising items of export to the EU market. On the other hand, Bangladesh is also a potential market for the EU whose major export items are machinery, transport equipment, and chemicals. The EU’s exports to Bangladesh almost doubled in the last 10 years from $1.87bn to $2.83bn. The EU relaxed the rules of origin (RoO) in 2010 and brought it from 2-stage to 1-stage work processing for apparel, making it more favourable for our ready-made garment exports to the EU under Generalized System of Preferences (GSP) scheme. Under the revised RoO, apparel exporters are enjoying duty-free access to the EU even if the apparel is made of imported fabrics. This has helped our apparel industry to register robust growth in the EU market in recent years and to secure 63% share of our total garment exports to the world. The EU has been a major partner of the development of Bangladesh’s garment industry, not only as a major importer, but also through its contribution to build capacity of the industry. The EU’s role to support our garment industry to improve workplace safety, labour rights, and general business conduct is widely acclaimed. The EU has consistently been a trusted partner of development of Bangladesh, and has contributed to attaining the status of middle-income country

Progress and achievements

In 2013, the EU together with Bangladesh government, the ILO, and the US, adopted the Sustainability Compact, which has facilitated remarkable progress in the apparel industry in terms of workplace safety. Bangladesh has achieved a paradigm shift in workplace safety in its garment industry where the Accord on Fire and Building Safety in Bangladesh, an initiative by leading EU brands and retailers sourcing garments from Bangladeshi factories, played a crucial role. All export-oriented apparel factories have been inspected for structural, fire, and electrical safety by Accord, Alliance, and the National Initiative. Remediation is nearing completion, as the progress is around 83% in Accord affiliated factories and 88% for Alliance. We believe our safety standards will encourage European brands to source more garments from Bangladesh. The EU is not only a trading partner of Bangladesh but also a good friend who assists our country to address various challenges on the way to development. Apart from economic and trade development, the EU provides support to Bangladesh for human and social development, good governance, and human rights. EU ‘ssupport to Bangladesh also covers environment and disaster management, as well as food security and nutrition. We have witnessed how the EU has come forward to help us deal with the Rohingya issue and provided 13 million euros in the wake of the refugee crisis. However, Bangladesh is gradually becoming economically strong, and we believe in the near future Bangladesh would reach a stage when development assistance would no longer be necessary. Since Bangladesh is on its way to attain the status of a middle-income country, the country will require strong industrial development and investment to realize its vision. The government has been working to accelerate industrial growth in the country by formulating business-friendly policies and building necessary infrastructure. Roads and highways are being upgraded, while steps are taken to enhance the capacity of sea ports. Electricity generation has been increased to meet the growing demand of the expanding industrial sector, while an LNG terminal is being built to address the energy requirement in the country. The government is also working to make Bangladesh a preferred destination of investment. Foreign investment in Bangladesh has hit a record in 2016-17 fiscal year, which was $2.45bn. Initiatives have been taken to simplify business processes in Bangladesh, and to improve our ranking in the World Bank’s Doing Business Index. The government has taken massive steps to develop 100 economic zones in next 15 years. Besides, we have a young and vibrant population which is a valuable asset to our country for investors. The backward and forward linkage industries to the garment sector, man-made fibre based high-end textiles, pharmaceuticals, and footwear and leather products, frozen foods, ship-building have become promising industries in Bangladesh where foreign investment can be highly feasible. Bangladesh has immense opportunities to diversify its export items, and the EU can play a key role in enabling Bangladesh to tap into those potentials. The EU can extend its support in enhancing Bangladesh’s supply side capacity and promoting export-oriented FDI flows to Bangladesh. The time is ripe for shaping the EU-Bangladesh relationship in line with the demands of the changing times. We hope this relationship will reach a newer height, where the EU will be a strong and reliable partner in Bangladesh’s journey towards prosperity, driven by trade and investment.

Source: Dhaka Tribune

Back to top

Cambodia : All factories need infirmaries by year’s end

The Labour Ministry has announced that all factories across the country must have their own infirmary completed by the end of this year, noting that 88 percent of factories having built infirmaries already. Labour Minister Ith Samheng said on Monday that according to the Labour Law, all factories must have an infirmary, a place for eating food, a room for breastfeeding and a nursery room. “Presently, 88 percent of a total of 1,200 enterprises already have infirmaries, 33 percent have a place to eat, 21 percent have rooms for breastfeeding and 28 percent have nursery rooms,” said Mr Samheng, adding that it really helped the workers’ welfare. Speaking to more than 1,100 workers, union and employer representatives, and officials from the International Labour Organisation, Mr Samheng announced to all participants that the ministry will push all factories to complete construction of their infirmaries. “I want to tell you all that for the year 2018, the ministry will push all factories to increase and improve this service, especially to have 100 percent completion by all factories in the country,” he said. “Inspectors from the occupational health and safety department have to check with the factory to ensure they have an infirmary in order to help and check the health of our workers.” Kaing Monika, deputy secretary-general of the Garment Manufacturers Association in Cambodia, welcomed the move by the Labour Ministry, saying it has been working very closely with all its members to encourage them to set up infirmaries to give their workers better access to healthcare. Only 12 percent of factories have yet to comply with the Labour Law. KT/Mai Vireak. “It’s the law and we encourage our members to comply accordingly. We hope that the rest of the factories will be able to sort out their respective challenge in terms of space,” he said. “Any newly opened factories joining GMAC as members always receive proper legal consultation from a legal officer in the area of Labour Law compliance.” According to the Guidelines for the Establishment of Enterprise Infirmaries, the infirmary must be located near the workplace with easy access for patients, have  sufficient light and a good atmosphere, and be far away from workplace noise, garbage, dust, smoke and foul smells. The infirmary shall be run by a physician and assisted by one or more nurses, based on the number of workers. When there are more than 200 workers, the infirmary must include, in addition to medicines and bandages, areas for hospitalising the injured or sick before they are transferred to a hospital. Chuon Mom Thol, president of the Cambodian Union Federation, suggested to all workers to report about health and safety issues at their respective workplaces to labour inspectors from the Labour Ministry and provincial labour department. “They have to assist the ministry in reporting about any challenges at their workplace and also have to closely cooperate with company or industry employers to improve health and safety at the workplace,” said Mr Mom Thol. In March, Mr Samheng suggested to recently graduated doctors that they should apply for work in factory infirmaries following a government push for garment factories to take better care of their workers. He said that some doctors who just graduated did not have jobs yet so they could come to work at an infirmary. “Not all doctors who have just graduated are employed, so I appeal to some of them to work at an infirmary to help the workers at their workplace,” he said during a graduation ceremony for 500 medical doctors at the International University in Phnom Penh.

Source : Khmer Times

Kenya should exploit potential in textiles sector.

Workers unpack cotton at a ginnery. Kenya is seeking increased textile trade with the US by facilitating cotton farmers. The textiles and apparels sector has been identified as a priority sector by the government. Its prominence in the manufacturing pillar under the ‘Big Four’ agenda and the Kenya Industrial Transformation Programme is a manifestation of its importance to the government in income generation. But why should the government concentrate on growing the manufacturing sector? According to the Human Development Index (HDI) 2017, Kenya has an unemployment rate of 39.1 per cent. This large number of unemployed people is a ticking time bomb whose blast could create adverse social and political effects. The sector, fortunately has the ability to create employment opportunities within a short duration of time. The sector also boosts farming of cotton as well as the revival and expansion of textile mills. Through this, a fully developed value chain has the capacity to significantly expand employment prospects. Additionally, cotton farming and apparels manufacturing are labour intensive, thus a source of employment opportunities. The sector is also currently a critical foreign exchange earner in manufacturing. Currently, Kenya is the largest exporter of apparels under African Growth and Opportunity Act (Agoa) with about Sh35 billion worth of exports in 2017. With the changes in the global apparels sourcing supply chain, Kenya has attracted a substantial number of world buyers and these figures have the potential to grow when we enhance our competitiveness and diversify our markets. Kenya can borrow best practices from Bangladesh, a rising giant exporter of textiles and apparels. The South Asian country exports about $33 billion (Sh3.2 trillion) worth of apparels. At least $6 billion (Sh595 billion) of these exports are to the United States while about $27 billion (Sh2.6 trillion) are to the European Union and the rest of the world. To put these figures into perspective, Bangladesh’s textiles and apparels exports are about Sh700 billion higher than Kenya’s 2017/18 National Budget. Secondly, Bangladesh exports performed about 18 times better than Kenya in the US market in spite of the fact that Kenya enjoys duty free access to the US market which is not the case with Bangladesh. Thirdly, Bangladesh performs well in the European market, in spite of the fact that both Kenya and Bangladesh have duty free access to that market. The textiles and apparels sector has historically been the pioneer industry that drives industrialisation around the world. An analysis of major international companies illustrates this as many of them started out with operations in the sector’s value chain. The situation is not different in Kenya as many of our top companies have their genesis in this sector. The growth of the value chain in Kenya will translate to more players in the manufacturing space who will ultimately diversify into other manufacturing sectors. Without belabouring the point, the sector has the ability to fill in the gaps in our economy, our social challenges and our industrialisation journey. With the coming of the 4th industrial revolution and the changes in the global manufacturing, consumption and sourcing dynamics, Kenya has advantage to turn the tide into energy that will propel the country to the next frontier. The writer is a Textiles and Apparel Sector Officer at Kenya Association of Manufacturers.

Source: K24 TV

Back to top

Switzerland : Textiles stakeholders balk at proliferating standards

Herisau, Switzerland – A group of textile dye and chemical companies wants to unite around one discharge standard for the elimination of hazardous chemicals in the supply chain. In an open letter to the Stichting ZDHC (Zero Discharge of Hazardous Chemicals) Foundation, executives from the companies said the growing number of standards and related testing protocols have increased complexity and raised costs, creating an obstacle to the larger goal of greening the textiles supply chain. ZDHC’s Roadmap to Zero program takes a holistic approach to tackling the issue of hazardous chemicals in the global textiles, leather and footwear value chains. The various types of requests coming from brands and mills affiliated with the initiative are slowing advancement, the writers asserted. Signatories to the letter include Archroma, Colourtex, DyStar, Huntsman, Jay Chemical, Protex, Pulcra, Rudolf and Tanatex. The companies said they support compliance and sustainability advancement but believe a single industry standard would provide the most cost-effective approach for the textile value chain. “It is our intention to strongly support any initiative that aims to eliminate hazardous chemicals from within the textile supply chain,” they wrote. However, individual brands have been seeking to differentiate their offerings by requiring “individualized” MRSLs (Manufacturing Restricted Substances List), complicating efforts and adding costs, according to the dye and chemical firms. They argue that the bluesign system is the most encompassing of the current discharge reduction programs and that the ZDHC Foundation is the most appropriate platform for the industry to use toward harmonizing discharge standards, testing and screening methodologies. The ZDHC initiative launched in 2011 and the Stichting ZDHC Foundation followed in 2014. A number of companies involved with home textiles are contributors to the ZDHC program, including Birla Cellulose, Bureau Veritas, H&M, Marks & Spencer, Lenzing, Oeko-Tex, Primark, SGS, Sustainable Down Source and Target.

Source: Home Textiles Today

Back to top

Researchers improve textile composite manufacturing

Engineering professor Abbas Milani and graduate student Armin Rashidi use 3D scanning equipment to analyze textile composites. Credit: UBC Okanagan While wearing a crisply ironed, wrinkle-free shirt makes a good impression, researchers at UBC's Okanagan campus are working to solve the issue of wrinkling when it comes to making textile composites. Textile composites are known for their strength and durability. But as Abbas Milani, a professor in UBC Okanagan's School of Engineering explains, a simple wrinkle in the manufacturing process can significantly alter the end product—sometimes diminishing its strength by 50 per cent. Milani says wrinkling is one of the most common flaws in textile composites, which are widely used for prototypes, as well as mass production within prominent aerospace, energy, automotive and marine applications. To iron out the problem, researchers at UBC's Composite Research Network-Okanagan have investigated several de-wrinkling methods and have discovered that they can improve their effectiveness by pulling the materials in two directions simultaneously during the manufacturing process. They did this by creating a custom-made biaxial fixture—a clamp that stretches the textile taught and removes unwanted bumps and folds. "The challenge was to avoid unwanted fibre misalignment or fibre rupture while capturing the out-of-plane wrinkles," says graduate student Armin Rashidi. Manufacturers who use these types of composites are looking for more information about their mechanical behaviour, especially under combined loading scenarios." The research included stretching the material and then using specialized image processing and 3D scanning to analyze the required forces and its impact on the wrinkling and de-wrinkling of the material. "Composite textiles are changing the way products are designed and built in advanced manufacturing sectors," says Milani, director of the Materials and Manufacturing Research Institute. "As we continue to innovate in the area of composite textiles to include more polymer resin and fibre reinforcement options, this research will need to continue in order to provide the most up-to-date analysis for manufacturers in different application areas." It is important for designers to be able to predict the right amount of force needed to diminish the wrinkles in the final product, explains Milani. To do this, his team of students has created a multi-step test to assess the magnitude of the required forces needed to smooth out wrinkles of different sizes that were formed at different shear angles of a comingled fibreglass-propylene plain weave fabric. "Students in the Composites Research Network laboratory at UBC Okanagan are laying the groundwork to be world leaders in advanced textile composites by designing, fabricating and examining new testing equipment and fixtures, along with the development of high fidelity forming models." The research, recently published in the Materials & Design journal, was partially funded by the Natural Science and Engineering Research Council.

Source : Textile World

Back to top

Subscribe to SRTEPC mailing list

Exchange Rates