FW
Pakistan's cotton industry is at a critical juncture as a confluence of factors, including surging imports, policy inconsistencies, and a decline in domestic production, threaten the livelihood of farmers, ginners, and the entire textile value chain. The situation mirrors the recent wheat crisis, where government inaction and market imbalances led to significant financial distress for farmers and millers.
Unprecedented import growth
The government's decision to allow duty-free cotton imports, coupled with an 18 per cent sales tax on domestic cotton and yarn purchases, has created a lopsided playing field that favors imported cotton. This has resulted in a record-breaking influx of foreign cotton, with imports expected to reach a historic high of 5 million bales in the 2024-25 cotton year.
Table: Import growth
|
Cotton imports (bales) |
Yarn imports (bales) |
|
October 31, 2024 |
800,000 |
|
November 30, 2024 |
1.1 million |
|
Projected 2024-25 |
5 million |
Impact on domestic production
The surge in imports has severely impacted domestic cotton sales, leading to a sharp decline in prices and a glut of unsold cotton in warehouses and ginning factories. Farmers and ginners are facing mounting losses, with cotton prices plummeting by over Rs 1,000 per maund to Rs 17,500. This situation not only jeopardizes the livelihoods of those involved in cotton production but also threatens Pakistan's agricultural and industrial economy.
The recent wheat crisis serves as a stark reminder of the consequences of policy inaction and market imbalances. The government's failure to buy wheat from farmers at the official rate led to a sharp decline in prices, causing significant losses for farmers and millers. The cotton industry is now facing a similar situation, highlighting the need for proactive measures to prevent further economic distress. The current crisis underscores the urgent need for policy intervention to address the structural imbalances in the cotton industry. Some key policy challenges include:
Duty-free imports: The removal of import duties has created an uneven playing field, favoring foreign cotton and discouraging domestic production.
Sales tax on domestic cotton: The 18 per cent sales tax on domestic cotton and yarn further disadvantages local producers and exacerbates the crisis.
Lack of support for farmers: Farmers are facing financial distress due to declining cotton prices and high input costs.
To address these challenges and ensure the long-term sustainability of the cotton industry, the government needs to take decisive action. This includes imposing sales tax on imported cotton and yarn this would level the playing field and encourage the use of domestic cotton. Removing sales tax on domestic cotton would provide much-needed relief to farmers and ginners. Investing in R&D this would help improve cotton yields and quality, making domestic cotton more competitive. Providing financial support to farmers which would help them cope with the current crisis and invest in sustainable farming practices.
The crisis in the cotton industry is a complex issue with far-reaching implications for Pakistan's economy. Addressing this crisis requires a multi-faceted approach that includes policy reforms, investment in research and development, and financial support for farmers. By taking decisive action, the government can ensure the long-term sustainability of the cotton industry and protect the livelihoods of millions of Pakistanis.
Egypt is investing $1.1 billion in revitalizing its textile industry, with a focus on modernizing the spinning and weaving hub of al-Mahala al-Kobra. The country aims to overhaul its century-old textile, spinning, and weaving factories by them into large industrial complexes capable of producing tens of thousands of tons of fabric daily. The government's modernization initiative is aimed at revitalizing an industry that once accounted for 40 per cent of Egypt’s export revenues but now contributes only 2.5 per cent to 3 per cent.
The modernization project is designed to help Egypt regain its status as a key textile producer by importing modern machinery, renovating production units, and improving production efficiency. As a result, Egypt plans to significantly add value to its cotton production, one of the world’s top producers of long staple cotton.
Historically, developing nations like Egypt have struggled to add value to raw materials such as cotton, often losing out on potential profits. However, Egypt is changing this trend by focusing on turning raw cotton into manufactured goods locally. This shift is expected to reduce the country’s reliance on cotton exports, with a growing proportion of local cotton production being used for domestic manufacturing rather than for international sales.
The Egyptian government predicts, the country may no longer need to export its cotton once the modernization program is fully implemented, likely by the end of this year or early next year. Local demand will absorb the entirety of their crop, thanks to the new factories.
In the 2024 cotton season, Egypt increased its area under cotton cultivation to about 225,000 acre from 216,000 acre in 2018. The country produced approximately 1.8 million pounds (about 4 million kilograms) of cotton, an increase from 1.4 million pounds (around 3.1 million kilograms) in 2023. However, most of this cotton is now expected to meet local industrial needs, potentially reducing the volume available for export. Currently, Egypt accounts for about 20 per cent of the world’s long staple cotton, with exports going to 22 countries, down from 55 countries in the past. This change could have a significant impact on global cotton supply.
Circular materials leader, Ambercycle has teamed up with Shenghong Holding Group to expand the production of regenerated filament yarns made with cycora® material. This collaboration addresses the global demands for circular solutions in the apparel industry by integrating cycora® into the Chinese value chain.
Ambercycle and Shenghong have been collaborating since 2024 in order to develop high-quality regenerated filament yarns using cycora® material. The partnership between these two companies helps drive scalable, impactful change across the apparel sector, says Jason Tang, General Manager, Shenghong Chemical Fiber New Material Co.
The cycora® material enables brands to integrate sustainability into their supply chains seamlessly by replacing virgin inputs with textile-to-textile regenerated materials. The partnership accelerates the industry's transition to a circular future, where waste is reimagined as a valuable resource.
Shay Sethi, Co-founder and CEO, Ambercycle, notes, the company’s partnership with Shenghong emphasizes on the brand’s shared vision for a circular future. It ensures the seamless integration of cycora® into the supply chains of the leading global brand by leveraging Shenghong's advanced manufacturing capabilities. Together, the two companies drive the adoption of circular materials across the apparel industry at the pace necessary to meet the growing demand.
The upcoming 11th edition of Surat International Textile Expo 2025 (SITEX) at Surat in Gujarat will launch Velvet Airjet Machinery.
Organized by the Southern Gujarat Chamber of Commerce and Industry (SGCCI), the three-day event will be held from January 10-12, 2025 at the Surat International Exhibition and Convention Centre in Sarsana.
To be showcased for the first time in India, the Velvet Airjet Machinery will redefine velvet production by drastically lowering costs and improving fabric quality. Highlighting the transformative potential of this machinery, Vijay Mewawala, President, SGCCI states, the technology will enable India to produce high-quality velvet, eliminating the need for imports from Korea.
Currently, Indian manufacturers produce velvet with a quality number of 5,000, while Korean imports offer a superior quality number of 11,000, often used in luxury lehengas priced between Rs 50,000 to RS 100,000. Operating at 600 RPM, the new machinery will now produce the higher-quality velvet domestically. This development will reduce production costs from Rs 1,500-Rs 2,000 per meter for imported velvet to just Rs 200 per meter, making premium velvet more affordable for manufacturers and consumers alike.
The Velvet Airjet Machinery boasts advanced features such as 100 per cent electronic operation, WiFi connectivity, mobile device control, and zero-defect production, ensuring top-tier fabric quality.
SITEX 2025 will also feature several other state-of-the-art textile innovations including the 32-Head Embroidery and Viscose Jacquard Machine and other value-added fabric machines.
Creating pure and semi-silk fabrics using gold and silver wire, these indigenous machines are energy-efficient and cost-effective, offering robust service support to local manufacturers.
Recognized for advancing Surat’s textile industry in global markets, SITEX 2025 aims to modernize the sector, attract investments, and foster innovation. The exhibition provides a platform to propel Surat’s textile industry forward, says Mewawala.
A coated technical textiles specialist acquired by Freudenberg Performance Materials as a part of Low & Bonar 2020, Mehler Texnologies plans to close its Fulda, Germany plant by 2025-end.
The company arrived at this decision after years of sluggish market conditions and significant overcapacity within its production network. The closure is likely impact 192 employees. The company is discussing ways to develop socially responsible solutions for this with employee representative bodies.
In December 2024, the antitrust authorities in Germany, Austria and Poland approved the acquisition of Hytex’s core business by Freudenberg Performance Materials. Freudenberg had acquired three production sites of Heytex in Germany and China, along with all headquarters-related functions. These assets now form a part of the company’s newly established Coated Technical Textiles division.
With the recent addition of Consist Apparels to the list, Bangladesh has increased the number of its Leadership in Energy and Environmental Design (LEED)-certified garment factories to 233. Marking a notable milestone in its commitment to green practices, the company was granted platinum certification.
Currently, Bangladesh has 233 LEED-certified garment factories, as per Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Among these, 93 are platinum-certified, while 126 hold gold ratings. This achievement consolidates the country’s position as the leader in sustainable development within the garment industry.
Endorsed by the US Green Building Council (USGBC), LEED certification is globally recognised as a standard to promote environmentally responsible building design, construction, and operation. The certification helps enhance sustainability in Bangladesh’s garment sector besides positioning the nation as a leading eco-friendly garments manufacturer.
The American Apparel & Footwear Association (AAFA) has commended the Office of the United States Trade Representative (USTR) for releasing the 2024 Review of Notorious Markets for Counterfeiting and Piracy. This annual report identifies online and physical markets that facilitate significant trademark counterfeiting and copyright piracy, supporting global efforts to protect intellectual property (IP) and consumer safety.
In October 2024, AAFA submitted extensive member-led comments to USTR, advocating for enhanced enforcement against illicit trade. Notably, two platforms nominated by AAFA were included in the 2024 Notorious Markets List, underscoring the ongoing challenges faced by the industry.
“We appreciate USTR’s commitment to combating counterfeiting and protecting American consumers, brands, and workers,” said Steve Lamar, AAFA president and CEO. However, he expressed concern over the exclusion of US-based platforms from the report, urging a comprehensive approach to address all markets contributing to counterfeit sales.
AAFA called on the administration to establish an Interagency Working Group to fight illicit trade and to prioritize IP enforcement in key administrative roles. Jennifer Hanks, AAFA’s senior director of brand protection, emphasized the importance of collaboration between government, industry, and stakeholders to strengthen efforts against counterfeit trafficking and IP infringement.
AAFA remains committed to advancing robust protections for intellectual property and legitimate businesses worldwide.
Signing a multi-year partnership deal with Mercedes-AMG Petronas Formula One Team, Adidas has become the team's new official kit supplier.
This announcement comes months after speculation fueled by leaked images of branded gear late last year, which hinted at the impending deal. The partnership marks the end Puma’s run as Mercedes’ kit provider and signals a new beginning for the F1 team.
Adidas will supply a specially designed kit including a comprehensive apparel range, footwear, and accessories to the team. To debut next month, the kit will also be available for fans to purchase. Additionally, Adidas will also supply limited-edition merchandise collections across the year as Mercedes gears to open the season in Australia on March 16.
This deal comes at a pivotal time for Adidas, which recently lost its bid to supply Germany's national soccer teams to Nike for the 2027–2034 period. Mercedes is also collaborating with fashion brand Tommy Hilfiger, where seven-time world champion, Lewis Hamilton has served as a global ambassador.
eVent Fabrics, a global leader in waterproof and breathable fabric technologies, has announced a bold brand evolution with the introduction of its new tagline, ‘Defy the Elements.’ This marks a renewed focus on sustainably-minded performance innovations designed to empower outdoor enthusiasts to embrace any weather.
“Our relentless pursuit of excellence ensures every fiber, weave, and layer stands up to nature’s harshest conditions,” said Chad Kelly, President of eVent Fabrics. “The ‘Defy the Elements’ tagline encapsulates our dedication to innovation and quality, providing users the confidence to face torrential rain, biting winds, or extreme temperatures while staying comfortable and dry.”
This tagline bridges eVent’s mission to craft cutting-edge, high-performing materials with its commitment to supporting adventurers who refuse to let weather dictate their plans. From hiking and climbing to skiing and cycling, eVent’s advanced laminates are designed for a broad range of outdoor activities.
The new tagline will feature prominently on hang tags, brand collateral, and communications, embodying eVent’s vision of inspiring confidence in both loyal customers and new audiences. By combining innovative technology with a user-centric approach, eVent Fabrics is set to redefine outdoor gear performance for the modern adventurer.
Global jeans specialist JD United (JDU Manufacturing Co Ltd), a subsidiary of Roohsing Group, has adopted Coats Digital’s GSDCost solution to enhance production efficiency, standardize cost-to-make (CM) processes, and align with evolving customer expectations. The solution will initially optimize operations across three of JD United’s 31 production facilities, with plans for expansion to factories in China, Tanzania, Myanmar, and Cambodia later this year.
Headquartered in Changzhou, China, JD United operates 31 factories globally, employing over 30,000 people and producing high-quality jeans, woven jackets, knitted pyjamas, shirts, and trousers for major brands such as Levi’s, Gap, and Primark. Committed to sustainable manufacturing, the company has implemented low-carbon processes, greener energy initiatives, and advanced water treatment methods.
Jessie Chen, Business Director of JD United, highlighted the value of GSDCost, saying, “Standardized methods enable us to replace inaccurate historical data with reliable scientific metrics. This supports accurate CM quotes, improved sewing methods, and balanced production lines. GSDCost aligns seamlessly with our sustainability goals and digital transformation strategy.”
Tracy Li, Sales Manager at JD United, commended the Coats Digital training team for their dedication, stating, “Their support has been instrumental in equipping us to maximize GSDCost’s potential for operational efficiency.”
Coats Digital’s GSDCost is recognized as the industry benchmark for optimizing CM processes. It fosters a sustainable supply chain by introducing standard motion codes and predetermined times to enable accurate cost predictions and efficient negotiations.
Liv Zhang, Sales Director (Greater China) at Coats Digital, remarked, “We are excited to help JD United boost profits and strengthen its global leadership through GSDCost’s proven methodology and tools.”
