FW
Traders and analysts expected the current cotton season from August 2015 to July 2016 in Pakistan to produce a record cotton output of nearly 15 million bales (155 kgs). However, the current situation indicates that the country will miss that projection by a wide margin. According to traders in Karachi, a toxic mixture of poor cottonseeds supply for sowing purpose, poor weather conditions and consequent pest attacks have adversely impacted this year's cotton production by nearly four to five million bales (155 kgs).
Thus the cotton output for Pakistan for the current season (2015/2016) is expected to be between 10 to 10.5 million bales (155 kgs) while the textile mills are projecting their consumption between 14 and 14.5 million bales. Imports of cotton this season may range from 2.5 to 3 million bales, while the exporters may ship anywhere from 300,000 to 350,000 bales.
On the other hand, manufacture and sale of yarns and other textiles continue to witness a downward trend. According to the cotton arrivals report of the Pakistan Cotton Ginners Association (PCGA) showing seed cotton (Kapas/Phutti) arrivals for the current season (2015/2016) in Pakistan till the 1st of December, 2015, at 8,631,933 lint equivalent bales (155 kgs) compared to 12,145,705 bales received for this period during the last season (2014/2015), or a decrease of 28.93 per cent. Domestic mills have picked up 6,289,826 bales. An unsold quantity of 1,989,708 bales is lying with the ginners in both pressed and loose form.
The agriculture season of 2015-16 is expected to witness a relative fall in cotton production, feels Tanzania Cotton Board (TCB) acting director, Gabriel Mwalo. Reason: lack of quality seeds for farmers. Mwalo points out that over the years, with a deficiency of formal system of seed production, cultivation of cotton has been dependant on circuit waged cotton seed. Every year’s, seed stocks are the major source of procuring seeds. However, in this process of securing seeds the ignorance of farmers and agents has been a prominent obstacle. The germination procedure is affected as water is sprinkled on the cotton sold and brought. As a consequence, seeds reach rotting stage.
In order to seek better operations, TCB has taken certain steps. This farming season, almost 27 agents who invested in seeds have been briefed about allocating and reserving 21,380 tonnes of seeds for further plantation. Also, sorting centres plans to distribute a gross of 16,654 tons out of 21,380 tons seeds from the month of September, retaining about 4,726 tons for a crisis.
As acknowledged by Mwalo, farmers in the region are expected to be conscious of storing seeds and planting them in equal numbers to sustain quality production of cotton in major cotton yielding regions which are presently dealing with a deliberate issue of quality deficient cotton seeds.
Bangladesh hosted Taiwan Textile Fair from November 23 to 24. The trade show was all about fabrics and accessories. The aim was to provide a unique opportunity for business matchmaking between top manufacturers and exporters of Bangladesh. Participating companies were looking at exploring the Bangladesh market.
Taiwanese manufacturers want to explore their business in Bangladesh. As of now they have no direct investment in the country but are planning to invest in future. In particular they are looking at the fabric business in Bangladesh. They want to find local business partners, distributors and buyers.
Bangladesh is the second largest South Asian partner of Taiwan. Bangladesh mainly exports garments, jute, leather, handicrafts, knit wear to Taiwan and imports textiles, electronics, steel, plastics, machines. As more Taiwanese companies set up manufacturing bases in Bangladesh, trade is likely to expand.
More than a dozen Taiwanese companies are operating in Bangladesh, most of them being in labor-intensive industries such as textiles and the production of electrical goods. Taiwan is sending business missions to Bangladesh from the electronics, machinery, auto parts and hardware industries.
Organised by the Taiwan Textile Federation and the Bureau of Foreign Trade, the event was supported by Bangladesh Knitwear Manufacturers and Exporters Association.
From 2011 to 2015 Vietnam’s exports of textiles and garments have maintained steady growth and stability. Total exports in the first nine months of 2015 were up 10 per cent compared to the same period of 2014. In 2015, the target for export turnover increased 11.3 per cent compared to 2014, with localisation rate at 51 per cent.
The textile sector is expected to become the country’s second largest exporter, with Vietnam remaining among the top five leading textile exporting countries. In the next stage, when the Trans Pacific Partnership takes effect, tariffs on exported textiles to the US will be eliminated, which will also happen when the EU-Vietnam free trade agreement comes into being.
In the long term, these agreements are expected to promote development of textile industry, create jobs, attract investment in raw materials, dyeing and finishing, and boost competitiveness in the global textile value chain.
There is a strong need for enterprises in the Vietnamese textile industry to incorporate advanced technology from overseas. Total number of employees in the Vietnamese textile industry stands at 2.5 million and will rise to 2.8 million in 2016 and 3.3 million by 2020.
Indonesia is contemplating income tax cuts to support the labor-intensive footwear and textile industry. The proposal is to reduce employees’ income tax by as much as 50 per cent. The incentive is expected to last for five years and would come with terms and conditions. The tax cut would only be applicable for companies that export 50 per cent of their production and employ at least 5,000 workers and is expected to benefit the industry’s cash flow.
Indonesia is pushing efforts to revive growth in the labor intensive industry after the country’s economy weakened to the lowest level since 2009 in the past three quarters. Falling demand combined with soaring raw material prices, rising electricity tariffs and illegal imports have prompted manufacturers of shoes and textile goods to lay off workers. At least 40,000 workers at footwear factories and another 39,000 textile workers were dismissed in the first half of this year.
Requirements currently imposed on manufacturers to procure raw materials and to access financing will be eased. Buffer stocks of cotton and leather will be established to ensure steady supplies of raw materials. In addition, trade promotion efforts in the domestic market will be ramped up. Free trade agreements with the prime export markets of Indonesia's footwear and garment industries will be sought. This will make prices of Indonesian products more competitive in Europe.
India is looking at increasing textile and clothing exports. New markets like Africa are being explored to widen the geographical spread of export market and reduce dependence on the developed world — mainly the US and the EU. India is also likely to renew focus on some segments that are already doing relatively well so that the country’s dominance is further entrenched in those areas.
Diversification to Africa will help India in the long run. The need to tap new markets has arisen more than ever, as China’s economy is set for a prolonged slowdown and the developed world is still struggling with a fragile recovery. To promote textile exports in new markets, India has raised support to outbound shipments of more textile products under the Merchandise Exports from India Scheme (MEIS). Most textile and garment items, which were earlier not eligible for many benefits, are now granted a three per cent duty credit scrip under the MEIS to tap markets such as those in Africa.
Overall textile and garment exports rose 0.6 per cent in the first half of the current fiscal from a year before while the country’s overall exports plunged by 17.6 per cent during the period.
Organisers of the World Textile Awards, sponsored by The Textile Institute, Manchester, have extended the final deadline for entries to January 31, 2016 driven by demand. The winner will be awarded to recognise and honour different aspects of the firms in categories: Fibre Producer, Spinner, Knitter, Weaver, Dyer and Finisher, Garment Maker, Technical Textile Producer and Home Textile Producer.
The event would also offer the title ‘International Textile Firm of the Year’ for mark of quality commitment and professionalism. Textured Jersey (Sri Lanka) achieved this award in 2014. Headquartered in London, the quest of the World Textile Awards is primarily to formulate a united platform over economies to nurture extraordinary work and successes at different levels of the textile industry. With immense growth in the sector, firms have an opportunity to make a mark, since entries being opened to all textile manufacturing regardless of its size.
Each year, organisers assemble a team of experts from across the globe as the panel of judges for the World Textile Awards. They are drawn from leading textile organisations, institutions and companies. The jury’s task is to review each form. The firms are liable to submit a written description on why they deserve a category of award. The prominent features considered are: market position, technical performance, environmental and sustainability practice, quality control and employee programmes.
The cellulose fiber market has been witnessing strong growth over the past few years. Fibers extracted from natural plants are called as cellulose fabrics whereas fibers extracted from plant pulps are called manufactured cellulose fabrics. Cellulose fibers are extensively used in fabrics, textiles and spun yarn applications. Various chemical and mechanical processes have to be carried out to obtain wood pulp from plants. This extracted wooden pulp is used to obtain different man-made fibers. Rayon and viscose fibers are manufactured cellulose fabrics. Rayon fibers are extensively used in manufacturing curtains and carpets owing to their good absorbing properties. Acetate fibers are used in cigarette filters and apparels on account of their fast drying capability.
The textile industry has emerged as a leading application segment for cellulose fibers. Cellulose fibers are extensively used in the textile industry owing to their superior properties such as environment friendly, skin friendly and bio-degradable properties.
Spun yarn and fabrics are the major markets for cellulose fibers accounting for nearly a 25 per cent global market share. Asia Pacific has emerged as a leading regional market for cellulose fibers over the past few years closely followed by Europe. Asia Pacific holds the major portion of the market share in terms of production and consumption. The strong growth of the textile industry in India and China is the key factor driving the cellulose fiber market in this region.
To celebrate its 30th anniversary of UK subsidiary, Shima Seiki Europe, the well known flat knitting machine manufacturer plans to hold a private exhibition at its offices in Derbyshire this month. The event will recall the 30 years of sales and service in the UK. The company plans to display technology in the form of an ‘After-Show’ exhibition much like the previous month’s outstanding show at the ITMA Milan, Italy. The show consolidates the company’s exclusive WHOLEGARMENT knitting technology, which coincidentally celebrates its 20th anniversary this year.
The exhibition will highlight the company’s current line of cutting-edge computerised flat knitting technology. Shima Seiki’s original Slide Needle on four needle beds is featured through the flagshipMACH2X series. The limelight at Shima’s ITMA booth, the new MACH2XS machine will also be showcased to mark Shima Seiki’s original spring-type sinker system. SWG-N2 series compact Wholegarment knitting machine will also be demonstrated. It is designed to offer increased colour capacity and the capability for producing industrial textiles.
Among others the UK exhibition will also showcase SIP-series flatbed-type on-demand inkjet printing machine and P-CAM cutting machine which were also displayed at ITMA. The SDS-ONE APEX3 design system, which is the company’s core Total Knitting System concept will be exhibited.
US retail sales at the beginning of the holiday season were slow. Sales were impacted by continued unseasonably warm weather that delayed purchases of fall apparel as well as a shift in consumer buying patterns. Online shopping too has contributed to a decline in sales at brick-and-mortar stores as consumers get more and more comfortable shopping over the internet.
Holiday sales constitute nearly a fifth of the retail industry’s annual sales. Sales increase this holiday season is expected to be 3.7 per cent compared to the 4.1 per cent growth reported last year. The year-over-year decline is attributed to slow jobs growth, pressure from deflation on retail sales and increased consumer spending on services rather than goods.
There has been a 4.8 per cent decrease in comparable store sales for the month of November. Total monthly sales declined 1.2 per cent from the prior-year month. The entire shortfall in November comparable sales occurred during the first two and one-half weeks of the month. Sales improved to flat last year for the remainder of the month and positive in early December. Consumer confidence in the US unexpectedly saw a substantial deterioration in November mainly due to a less favorable view of the job market.
