FW
The textile sector in Surat doesn’t expect to be affected much by the decision to scrap Rs 500 and Rs1000 denomination notes. This is because the industry has started to do business mainly by cheques. No major cash transactions take place in this sector. Surat’s textile sector does an annual business of Rs 50,000 crores based mainly on cheques discounting and the credit system. Surat has 150 textile markets with 60,000 traders who have a daily turnover of Rs 130 crores. In the short term the sector could face a liquidity crisis, but things will be on track soon with its credit supply chain working.
However, a dyeing mill owner says a cash crisis during the festive season can lead to a negative sentiment and that a problem can arise at the time of giving salaries to workers. A textile trader expects no trade due to cash crunch for at least two months.
Surat is well known for its synthetic products market. The textile industry in Surat is mainly engaged in the activities of yarn production, weaving, processing as well as embroidery. Nearly 30 million meters of raw fabric and 25 million meters of processed fabric are produced in Surat daily.
Pakistan is hoping to sign a free trade agreement with Thailand. The countries have already had four rounds of negotiations. The next round will be on November 15 to 18, 2016, in Thailand. Matters that have been discussed relate to trade in goods, rules of origin, technical barriers to trade, trade remedies, customs procedures, legal and institutional issues and trade facilitation. What remains are discussions on investment, intellectual property rights, trade in services and competition.
The trade volume between Pakistan and Thailand stood at 952 million dollars at the end of 2015-16. Pakistan’s exports constitute107 million dollars while imports amount to 845 million dollars.
Among Pakistan’s exports to Thailand are fish and fish preparations, cotton fabrics for women, paper and paper board, raw cotton, cotton yarn, leather, medical and pharmaceutical products, material of animal origin, medical and surgical instruments, chemical elements and compounds. Pakistan already has free trade agreements with Malaysia and Indonesia.
Meanwhile Pakistan is going to access non-traditional trade markets of the world and liberalise its trade environment, which will ensure sustained economic growth. While negotiating a free trade agreement with Thailand, Pakistan is also looking to access a huge untapped market in the east Asian region.
Myanmar’s garment export earnings increased to $940 million in the year to mid-October up from $409 million in the corresponding period last year. Increase in earnings was mainly because of a rise in exports to Japan and European Union. Japan accounted for about a third of the country’s garment exports; EU and South Korea were 25 per cent each; and the United States and China accounted for 2.4 per cent each.
Exports to the EU increased from €345 million in 2013 to €548 million in 2015. The garment industry in Myanmar employs more than 3, 00,000 workers in 389 factories; of which 171 are Myanmar-owned, 196 foreign-owned and the rest are joint ventures.
Myanmar’s garment sector is flourishing as the last low-cost production frontier for factory relocation and diversification in Southeast Asia. China has long been the world’s top garment exporter. In recent years, however, production costs in China have soared along with a surge in wages. This, together with the difficulty in hiring garment workers and shift towards higher value-added industries, has driven many garment manufacturers to relocate to Myanmar. Chinese minimum wages are way above those in Asean countries, while those in Myanmar are the lowest in Asean.
South Asia Textiles is one of Sri Lanka’s largest weft knitted fabric manufacturers. The company is investing heavily in latest circular knitting technology. South Asia Textiles intends to invest in aerodynamic air-flow textile dye equipment to reduce water use; a continuous washer which saves water consumption up to 40 per cent; and a modern, fully automated 10 chamber stenter which enhances efficiency and fabric quality.
The investment also includes new printing machines and finishing equipment. The aim is to create a sustainable factory project within a year. This large scale expansion will allow South Asia Textiles to reach a completely new dimension in textile manufacturing in Sri Lanka. Not only will it facilitate extensive benefits to local apparel manufacturers in terms of speed and flexibility, it will also result in a greater availability of the latest fabric styles and colors, in keeping with international trends.
Success in achieving zero discharge of hazardous chemicals has added strength in keeping with international requirements and standards. South Asia currently produces around 7, 00,000 kg of fabric per month including dyed fabric, printed fabric and brushed or suede fabric of yarn dyed fabric. At the moment, the plant operates 115 circular and eight flat knitting machines with about 60 per cent of the former being double jersey machines and the remainder single jersey.
Children are working across the clothing industry supply chain, from cotton fields to mills to garment factories in developing countries. Up to 99 per cent of the world’s cotton farmers are in developing countries, with nearly two-thirds in India and China. The children working in these cotton fields receive little if any pay.
Child labor in India’s cotton sector is particularly prevalent. Almost half a million Indian children, with the majority being girls belonging to dalit and adivasi families, work on cotton seed farms. Children under 14 years account for almost 25 per cent of the total workforce on cotton seed farms in India. In Gujarat, which has the largest cotton seed production in India, children account for almost 55 per cent of all children employed in the cotton sector. Children are used to pick cotton because they are of the same height as cotton plants.
A number of factors contribute to child labor in India. One is that it is socialized and therefore accepted. Poverty and illiteracy are two other factors. When parents are trapped in dire poverty, their children are more likely to work in the garment sector and cotton fields. Poverty and a lack of livelihood options lead to a child’s need to contribute to the family income.
In the sideline of the 5th Bangladesh Denim Expo, three panel discussions, two knowledge sessions and one technical workshop were held. Participating in the panel discussions, denim manufacturers said Bangladesh’s denim industry needs technology support and low cost loans. Manufacturers also urged global brands to give fair price to their products. Issues confronting Bangladesh denim industry Taking part at a panel discussion on second day, Bangladesh’s leading denim manufacturer Envoy Group Managing Director Abdus Salam Murshedy said Bangladesh’s denim industry is in dire need of high quality washing factories. “Our denim industry has earned a good position in the international arena. Now our challenge is to produce high quality fashion denim. We need modern washing factories for that. We have to modernize our washing factories,” he said. “For that, our industry needs low cost loans,” he added. Murshedy urged buyers to give “ethical price” to the manufacturers.
Asif Ibrahim, Vice Chairman of New Age group, said as China is shifting its focus from clothing industry, many orders might come to Bangladesh, Vietnam and other countries and investment will be a big issue for Bangladesh’s industry. Similarly, Mahbub ur Rahman, Deputy CEO of HSBC Bangladesh pointed out access to loans is available for garment factories but companies must ensure financial documentation.
Taking part in the discussion, global brand H&M regional head (Bangladesh and Pakistan) Roger Hubert said that Bangladesh’s denim industry needs to invest on technology. He said the industry needs education, skill development and loans. Roger put special emphasis on using water and said denim factories should have a strategy of water consumption, “How you wash your products is important to us” he said. H&M is working with manufacturing partners to make Bangladesh’s garment industry environmental friendly.
Leoni Cuelenaere, Ambassador of Kingdom of Netherlands to Bangladesh, said her country wants to see a safer and cleaner garment industry in Bangladesh. She said the industry should be concerned about labor circumstances. “Employees of your factories are your capital. You should keep your employees happy,” she said. On second day, another panel discussion was held on ‘Branding Bangladesh through denim’. Taking part in the discussion, Shantanu Shing, General Manager, C&A Sourcing said denim can be a good way to brand Bangladesh. He said that there are lots of opportunities for medium suppliers. On similar lines, Jochen Weikert, Programme Coordinator of GIZ RMG project said Bangladesh needs to create some role models and produce high quality niche products. Talking about growing concerns about safety issues in RMG units, Nazneen Ahmed, Senior Research Fellow of BIDS said that despite the bad image created by Rana Plaza tragedy, Bangladesh’s garment industry is rising and that shows the strength of the industry. Former BGMEA president Atiqul Islam said Bangladesh’s garment industry should work in a way that it can give a message to the world that Bangladesh’s garment industry is the best. Agreeing with view, French ambassador to Bangladesh, Sophie Aubert said Bangladesh’s garment industry is going through a transition and her government is working with the country to improve working conditions and other issues.
Apparel Training and Design Centre (ATDC) has signed a MoU (Memorandum of Understanding) with the Uttar Pradesh Skill Development Mission (UPSDM). The aim is to advance skill sector in the state by offering 24 courses with the target to uplift 8,000 unemployed youth in the next three years in all UP centers i.e Noida, Kanpur, Ghaziabad, Agra, Unnao, Lucknow, Pratapgarh, Barabanki, Barailly, Shahjahanpur, Varanasi, Ajamgarh and Kannauj.
ATDC is in the process of upgrading the Lucknow center to an ATDC hub having the capacity to train 600 candidates per annum in skill development courses in the near future. ATDC will provide youngsters training in apparel design and 80 per cent of the young people will be provided employment.
ATDC is India’s largest vocational training network for the apparel sector with over 200 ATDCs including 65 ATDC vocational institutes and over 135 ATDC- Smart centers and skill camps present in major apparel clusters spread across 23 states including two centers in the northeast. The mission is to upgrade the technical skills of the human resources employed in the garment industry.
ATDC provides training for jobs such as sewing machine operator, pattern engineer, machine technician/ mechanic, surface ornamentation specialist, apparel production supervisor, quality controller, industrial engineer etc.
"After confirming that Prime Minister Theresa will initiate Article 50 of the Lisbon Treaty by the end of March 2017, the Brexit impact will come into force by mid-2019. How would it impact the UK fashion industry, analyse fashion police. Everyone involved with the industry is looking at this situation as an opportunity to harness in the most efficient way. There are four key aspects that need everyone’s scrutiny before taking any major step."
After confirming that Prime Minister Theresa will initiate Article 50 of the Lisbon Treaty by the end of March 2017, the Brexit impact will come into force by mid-2019. How would it impact the UK fashion industry, analyse fashion police. Everyone involved with the industry is looking at this situation as an opportunity to harness in the most efficient way. There are four key aspects that need everyone’s scrutiny before taking any major step.
Secure favourable trade agreements
In the current scheme of things, UK businesses can trade with other EU countries without restriction (notwithstanding some local charges). When it leaves the EU, UK will re-assume direct responsibility for trade relations and will have to negotiate a new UK trade tariff. This move may result into higher import duties from and exports to EU countries. Many respondents to a survey by Drapers – who source from and sell to EU countries – are anxious about the additional costs.
This situation offers immense opportunities in establishing bilateral relation with countries such as China, the US and Japan. Going by the present economic activities in other parts of the world, it makes perfect sense for UK companies. The earlier the talks are initiated, the better it is for the UK government to get economy back on track.
Ensure free movement of people
After clearing the air on immigration of EU citizens to the UK post-Brexit, people are a sceptical about the future. If the country wants to opt for liberal trade policies, it needs to be flexible about immigration. Some are worried their staff – including difficult-to-replace skilled machinists – could be forced to leave the country. Others pointed out that the UK fashion industry highly banks on attracting talent from across the whole world to live, study and work here, to maintain its position on the global stage. However, not everyone believes free movement of people should continue. A few respondents argued that immigration should be controlled, and that the UK should look at how to up skill its own citizens.
Maintain education funds
Universities, the British Fashion Council, the Centre for Fashion Enterprise and myriad other institutions have access to hundreds of millions of euros in EU funding. Losing this financial support could weaken the UK’s status as the fashion powerhouse. Furthermore, British businesses are eligible to apply for certain EU funds, such as Horizon 2020, a research and innovation program that is making nearly £80bn of funding available over the seven years to 2020. In August, the Treasury pledged to underwrite Horizon 2020 projects beyond Brexit. However, it is still not clear whether the UK government will step in to replace other lost EU funding.
Also intellectual property laws are severely under scanner once Brexit comes in. Till now, UK fashion houses could take advantage of the EU trademarks and EU-wide design protection laws. The government will need crystal clear policy on this aspect to strengthen its position on the global map.
Consumers – the ultimate decision makers
Till now, all trade within the EU single market is free of import duties, while through the EU, Britain has arrangements with other countries offering preferential tariffs on imports. There is no clarity as to how the scenario will be for UK post-Brexit. Import duty may rise significantly, resulting in lower margins for companies.
However, entire situation also offers opportunities to reduce the costs of international trade outside the EU. Some of these may take time to materialise – free trade agreements typically take five or six years to negotiate. But other opportunities to liberalise trade could be materalised quickly. For instance, the UK would be free to adopt its own scheme of trade preferences for developing countries as soon as it leaves the EU, expanding the number of countries that benefit, cutting red tape and reducing the number of exemptions.
The biggest beneficiary and the perhaps the biggest decision makers will be the consumers who may win on the price war and in turn be supportive to the new government on all the decisions taken towards enhancing economic scenarios in the long term. All said, it’s still a wait and watch scenario for the nations till the actual post-Brexit economy goes live.
Le Souk, an online material sourcing network has gone into an exclusive partnership with Kingpins New York. The venture will allow buyers to access denim mills directly through Le Souk’s online portal, creating a virtual trade show or showroom. Buyers will have the opportunity to view high-resolution, optimized images of denim samples from participating mills that show the texture and likeness of the fabrics without having to be present at the show.
Le Souk works by mills’ signing up and sending samples to the company’s showrooms located around the world from Copenhagen to New York City. Le Souk photographs the samples and holds them in showrooms to send out to potential clients. Buyers can view the samples online, see them in the showroom, or receive them from Le Souk, alleviating some of the responsibility of the mill.
The website is a supplier membership platform where Le Souk provides mills with as many qualified buyers as possible, and the buyers receive prices quoted directly from the mills. Suppliers are vetted by Le Souk in order to gain access.
Kingpins online will allow buyers to connect with mills in a new way, through live chats and other perks like custom sourcing requests, real-time updates for buyers to view, special privacy settings to give special access to specific buyers, as well as transaction tools.
With help from a South Korean company, a Uzbek company is planning to manufacture and export ecological dyes for the textile industry. The South Korean company named Rainbow and Uzbekistan Company named Indikin have come together for this venture. The project involves extracting natural ecological dyes from agricultural plants and their subsequent use in the light industry in Uzbekistan and abroad. Intended for completion in 2017, the project will cost a total of a $1 million.
The company will export over 80 per cent of its production at full capacity. It plans to manufacture a wide range of powder and natural food dyestuffs. The South Korean side has provided advanced laboratory and production equipment. The method of obtaining ecological dyes will not differ from the South Korean technology, thereby guaranteeing their quality and competitiveness in the global market.
Rainbow is currently working on the opening of a specialized research center which will issue certificates of product safety for the textile industry. The first trial plantings for paints were made in 2014 in Samarkand and Tashkent regions. The first dyes of red, yellow, green, indigo and other colors were extracted in October. Test seedlings were also planted on 45 hectares in the spring of 2016.
