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The garment industry, which is reeling under a severe cash crunch, has recovered Rs 400 crores in the last three months from retailers who had defaulted on payment due to weak demand. The Clothing Manufacturers’ Association of India (CMAI) has formed a separate committee to negotiate with retailers and recover dues. The association has also formed a system to alert members on the credit profile of buyers so that they do not fall prey to wilful defaulters.
CMAI’s recovery committee has taken up long-pending cases and is negotiating recovery of Rs 1,000 to Rs 1,500 crores. The domestic organised garment sector registered a growth of 12 per cent to Rs 44,800 crores last fiscal against a growth of seven per cent in fiscal 2013-14.
CMAI was entrusted with setting up 50 skill centers across India by March 2017 and train 35,000 workers. It has already opened 35 apparel training centers in Andhra Pradesh, Gujarat, Karnataka, Tamil Nadu, Telengana and Maharashtra in the last four months. Centers are coming up at Vasai, Umargaon and Vapi-Daman. Skill centers are planned near the apparel industry so that trained people can be employed immediately.
Maharashtra is set to accept some of the major recommendations proposed by the Suresh Halwankar Committee in its report on the new Textile Policy of Maharashtra. The textile sector is the second largest employer, after agriculture, in Maharashtra. At present, over 30 lakh people are directly employed and two crore are indirectly employed in the industry.
The committee has recommended sick cooperative cotton mills be handed over to the private sector for good. Five mega textile hubs are to be developed and foreign direct investment be attracted to the textile industry. It specifies Amravati be developed as a spinning hub, Nagpur as a knitting hub, Solapur as a terry towel hub and Ichalkaranji as a suiting-shirting-denim mega composite textile hub. These hubs are to have all facilities, along with a common effluent treatment plant and water recycling plants in the vicinity, thus cutting down on cost and the time of making garments from cotton drastically.
The committee hailed China's textile policy and suggested a fiber to fashion approach to turn around the sector, which was once blooming in the state. It also seeks to reduce the power tariff for the sector, while encouraging setting up of more spinning and processing plants in the state.
WTO, the World Trade Organisation, has launched a new website which will serve as a focal point for members, donors, and others seeking information on the new Trade Facilitation Agreement Facility (TFAF)
TFAF was created at the request of developing country and least-developed country (LDC) members to help ensure that they receive the assistance needed to reap the full benefits of the Trade Facilitation Agreement and to support the ultimate goal of full implementation of the new agreement by all members.
The TFAF will support these countries in assessing their specific needs and identifying possible development partners to help them meet those needs through a diverse number of activities.
The website can be accessed in English, French and Spanish.
Developing and LDC members must notify the WTO which provisions they will implement when the agreement enters into force or, in the case of LDCs, within one year after entry into force (Category A commitments); which provisions they will implement after a transitional period following the entry into force of the agreement (Category B); and which provisions they will implement on a date after a transitional period following the entry into force of the agreement and that require the acquisition of assistance and support for capacity building (Category C).
Nearly 700 exhibitors are confirmed to participate in Shenzhen International Trade Fair for Apparel Fabrics and Accessories. They will offer buyers a wide selection of high quality ladies’ wear, casual wear and suiting fabrics, as well as the latest knits, lace and embroidery, yarns and fibers and accessories. The event will be held in China, July 9 to 11, 2015.
In addition to a wide range of mainland Chinese exhibitors, suppliers from Hong Kong, India, Japan, Korea, Taiwan and the UK will feature. Korea, China and Taiwan will have pavilions.
This year’s Taiwan pavilion will feature a wide range of options from raw materials to fabrics, including high end jacquard fabrics, lace, print and knitted fabrics, computer embroidered items, high-end tencel cotton and linen, plain weave linen, knits, denim and more. A number of exhibitors will also showcase functional textiles from Taiwan. .
The concurrent 15th China (Shenzhen) International Brand Clothing & Accessories Fair, a fashion garment event, will also provide buyers with even more sourcing options.
Intertextile Pavilion is now at a stage in its development where the main textile manufacturers in South China gather there. With the up, mid and downstream sectors of the industry all present, it is an exhibition with a lot of opportunities and a focus on conducting business onsite. What’s more, with Hong Kong adjacent, international brands which have buying offices there will attend the fair to find the latest fashion trends and novel fabrics.
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Intertextile Pavilion Shenzhen is organised by Messe Frankfurt (HK) Ltd; the Sub-Council of Textile Industry, CCPIT; the China TextileInformation Centre and the Shenzhen Garment Industry Association.
intertextile-pavilion-shenzhen.hk.messefrankfurt.com/
Implementing the World Trade Organisation’s Trade Facilitation Agreement (TFA) could reduce worldwide trade costs by anywhere from 12.5 per cent to 17.5 per cent, with the greatest benefits accruing to developing countries.
Countries which implement the TFA in full will reduce their trade costs by anywhere from 1.4 to 3.9 percentage points more than those that only implement the minimum requirements. The greatest opportunities for reductions in trade costs are in low and lower middle income countries.
For producers of goods and services, full implementation will lift export performance and lower the costs of imports. These lower costs will eventually be passed onto consumers, especially those in countries that can afford these imports the least. Trade costs include all tariff and non-tariff costs including transport, border-related and local distribution costs from foreign producer to final user in the domestic country.
The TFA creates a significant opportunity to improve the speed and efficiency of border procedures, thereby reducing trade costs and enhancing participation in the global value chains that characterise international trade.
As G20 economies seek to achieve an additional two per cent of GDP growth by 2018, facilitating a more open flow of goods and services across international borders can be a key contributor to this target. The new trade facilitation indicators help countries benchmark their performance and identify areas of priority action where great rewards can be reaped with little effort.
https://wto.org/tradefacilitation
FESPA China will take place October 21 to 23, 2015.Under the theme Find Your Key To Success, the third edition of FESPA China will provide visitors with inspiration and skills to unlock their business potential through industry launches, product innovation and content led features.
FESPA engages with a broad cross-section of the Chinese market and attracts a high number of global exhibitors and visitors. It has defined its market position as a key regional event for the major brands.
Over 9,500 visitors attended the inaugural FESPA China 2013 exhibition from 77 countries. In 2014, attendance grew to 15,166 from 91 countries, cementing FESPA China’s position as a regional event.
After mainland China, the largest visitor delegations were from India, Japan, Korea and Malaysia, with printers also travelling from Hong Kong and Taiwan as well as Australasia, Europe, USA, Africa and South America.
The event which will be held in partnership with China Screen Printing and Graphic Imaging Association is expected to fill over 12,000 sq meters of floor space, up 13 per cent over the 2013 edition.
International exhibitors confirmed for this year’s event include Kornit, Siser, Dgen, Mimaki, Keundo, Asialink and Synnex. Local participants include Denishi Denbishi Fine Chemical, Ever-Bright Printing Machine, Shenyang Shicheng Printing Machinery, Dongguan and Suzhou Yihui Printing Machinery Factory etc.
www.fespa.com/calendar/fespa-events/fespa-china-2015.html
There is a feeling India's foreign trade policy will affect exports of value added products like cotton dyed and printed fabrics and made-ups to African countries.The policy has scrapped benefits on exports to African countries. Exporters have urged the government to include exports of value added products to Africa.
The newly introduced MEIS (Merchandise Exports from India Scheme) has allowed a duty credit scrip of two per cent, three per cent and five per cent to exports of notified products to certain specified countries. However, the scheme does not include exports of value added and labor intensive products like cotton dyed and printed fabrics and made-ups.
In India’s earlier foreign trade policy, exports of cotton fabrics and made- ups to many African countries were granted duty credit scrip at four per cent of the FOB value of exports in general and in some cases seven per cent.
Exporters say the share of textile exports to the African region is less than five per cent and there is huge potential to increase this share if adequate export benefits are extended.
Indian exports go to African countries like Mauritania, Mali, Angola, Senegal, Togo, Ghana, Kenya and Tanzania.
The slide in man-made fiber prices might soon come to an end. Global synthetic fiber prices fell by 12.3 per cent in May compared to the same month last year.
Firmer crude oil prices have helped to offset the downward pressure inflicted by cost-conscious apparel makers. After rising 30 per cent between mid-March and early May, oil prices have been moving within a very narrow band and remaining 30 per cent lower than a year ago.
In Asia, the world’s largest fiber-producing region, synthetic fiber prices fell by only 6.6 per cent, a much smaller decline than April’s almost 12 per cent drop. In China, staple prices have firmed, while those of polyester have declined due to a recent drop in intermediates prices and sluggish demand for the fiber due to seasonality. However, polyester is beginning to replace cotton in many fabrications due to its lower cost, so demand for the synthetic fiber is getting stronger.
Asian synthetic fiber prices are more than 17 per cent below the world average. The European synthetic fiber price index fell by 24 per cent compared to May 2014. European synthetic prices ended the month at more than 10 per cent above the world average.
Lower imports and production and marginally higher consumption of cotton in China are expected to reduce China’s stocks-to-use ratio in 2015/16. China’s stocks-to-use ratio in 2015/16 is expected to slip to around 170 per cent, down from 190 per cent in 2014/15.
Although these are record high stock levels, China’s stock accumulation policy is not entirely unprecedented. Similar rapid stock run-ups occurred from 1982/83 to 1984/85 as well as from 1993/94 until 1998/99.
In previous cases, high stocks-to-use have usually been reduced by approximately 20 percentage points per year, similar to current 2015/16 forecasts for China.
Slightly lower 2015/16 stocks-to-use ratios are forecast for most major markets outside of China, both importers and exporters.
India’s stocks-to-use are forecast to decline from 48 to 43 per cent, while most other large markets are expected to see declines under five percentage points.
Bangladesh’s and southeast Asia’s stocks-to-use, on the other hand, are projected to remain roughly even or rise slightly.
The US season average farm price is projected at 60 cents a pound, with the mid-point slightly lower than the current season estimate.
For 2014/15, world production and ending stocks also have been reduced, while world trade has been raised on somewhat higher expected Chinese imports and use has been hiked slightly.
Australian wool prices are forecast to increase in 2015-16, supported by increased processor demand, a lower Australian dollar and falling production.In 2015–16 Australian shorn wool production is forecast to fall by three per cent, the lowest in more than six decades.
The increase in export demand partly reflects firmer consumer demand for clothing in the United States and some countries in the European Union, together with a refill of wool inventories in major garment manufacturing centers. These factors drove stronger wool buying in the first half of 2015, with most major wool producing countries recording increased export volumes and higher prices.
Demand from China has been particularly strong. In the four months to April 2015, the volume of Australian raw wool exports to China lifted seven per cent and their value rose 16 per cent. Exports also increased by 16 per cent to the Czech Republic, by 40 per cent to Malaysia and to the Republic of Korea.
In 2015–16 demand for wool from major processing countries is expected to remain relatively firm, reflecting improving demand for woolen apparel in some major world markets such as in the United States and parts of the European Union.
Australian wool exports are estimated to remain relatively flat 2014–15, reflecting static shorn wool production.
