FW
Soma Textiles, a leading manufacturer of denim fabric, cotton piece dyed fabric, denim jeans garmenting and ring- and open-end yarn is eyeing a double digit growth over the next two years. However, owing to low demand and other factors like high competition and stringent pricing, the company was able to witness growth of just 2-3 percent in last couple of years. The company is also looking at expanding its production facility.
The company has been investing in R&D facilities too like dobby design, knitted denim fabric, double-cloth fabric, colour weft type design, printed design denim, self-cooling denim shirts for summer, woolen denim fabric for winter and over-dyed denim, peach fabric, calendar finish denim and reactive dye-denim fabric.
Soma Textiles also sells its own denim brand online and is expanding production to launch the label called ‘Y-not’ in the market. The company has also been initiating various steps to reduce carbon footprint. www.somatextiles.com
Bangladesh government has decided to import cotton from Sudan, a cotton-producing African country, to recover huge amount of jute export arrears that are due by the country for last 23 years. The Sudanese government too has agreed to the idea and would now export cotton to Bangladesh.
An agreement to this effect would be signed between the two countries soon. The initiative was worked upon when non-resident Sudanese Ambassador to Bangladesh Hassan E El Talib met Jute and Textile Minister Emaze Uddin Pramanik recently. While the minister asked the diplomat to pay the arrears, Hassan tabled the idea of importing cotton from Sudan. At present, Bangladesh's annual requirement of raw cotton for textile industry is estimated at around 25 lakh (480 lb) bales. Local production is only about 1 lakh bales.
The local production of cotton fulfils only 4 to 5 per cent of Bangladesh's domestic requirement while the remaining 95 to 96 per cent is being fulfilled by importing. Bangladesh imports 40 per cent raw cotton from the US, 35 per cent from Commonwealth of Independent States (CIS), and remaining 25 per cent from Australia, Brazil, South Africa, India, Pakistan and other cotton producing countries.
Bangladesh Jute Mills Corporation (BJMC) under the ministry made shipment of jute goods, mostly jute sacks, worth about $2.5 crore to Sudan in 1992. After one year of the shipment, the Sudanese government paid only $1.1 crore and total dues with interest now stand at $16.9 crores.
The export of textile goods from Pakistan showed a marginal improvement of 2percent to $1.08billion in April, says recent data released by the Pakistan Bureau of Statistics. At the same time, value-added textile segment saw good growth, an impressive 11percent on year-on-year basis to $607million. This is mainly attributable to a 4percent yearly depreciation of the rupee and the country’s enhanced market access of the European Union region. The value-added sector benefitted from higher exports of knitwear, bedwear and garments.
During the month, garment exports rose 15percent to $174million due to a 16percent increase in realised prices, despite a 1percent reduction in volumes. Knitwear exports went up 9 percent to $190.7million as prices rose by 22.6percent. Bedwear exports jumped 11 percent to $177.5million, as a 9.6 percent reduction in prices corresponded with a 22.8 percent growth in sales volumes.
However, basic textile declined by 9 percent year-on-year to $341million, led by an 8 percent decline in cotton yarn exports. On a sequential basis, textile exports grew 5 percent in April, whereas value-added exports went up 10percent. However, basic textile exports decreased 3percent over the previous month.
www.pbs.gov.pk
A parliamentary standing committee recently pulled up the Textile Ministry for spending just 39 per cent of the outlay approved for the 12th Plan period (2012-17) in the first three years, and sought a concrete plan of expenditure for the next two years. The committee sought to know why the ministry hasn’t been able to spend the allocated amount and asked if it would be able to utilise the remaining 63 per cent of the approved outlay in just two years. The ministry has blamed the step-wise procedures and time-lag in the implementation of schemes from concept stage to in-principle approvals to consultations with states, among others, for the delay. It said it had been able to firm up all the major schemes after due procedures at the end of the third year of the current plan and expenditure has been accelerated since 2014-15.
When the committee wished to be apprised of the concrete plan of action to optimally utilise the plan outlay in the next two years, the ministry said weekly monitoring was being done by the secretary (textile) in the presence of all senior officers, which has led to higher expenditure under most schemes.
The ministry also said for schemes which require proposals from states, regular interactions with chief secretaries of those states are being done. States have also been told to expedite fund transfer to the implementing agencies for various schemes, among other things.
Figures from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) show the number of taking Utilisation Declaration (UDs) that reflects the trend of production to be performed has increased in April compared to previous months. RMG product manufacturers have taken 2,704 UDs, which were 2,415 in March, BGMEA data revealed.
Bangladesh exports have been suffering because of political unrest and other issues that have had a negative impact on the country’s export orders. As per Export Promotion Bureau (EPB) data, in July-April period of the current fiscal, Bangladesh earned $20.56 billion by exporting clothes, which is 2.98 per cent higher compared to the same period in last financial year. Currently, RMG sector contributes over 81 per cent to the total export earnings. The government has also set an export target of over $26.89 billion for the apparel sector, which employes over 4.4m workers, mostly rural women.
Apparel apex body-BGMEA recently held a meeting with buyers' forum, where more than 40 representatives of top global apparel buyers, brands and retailers participated. The aim was to assure them of improvement in the situation and smooth supply of products. Even buyers expressed their willingness to increase sourcing from the country but players are now skeptical about fulfilling demand due to fall in production.
www.bgmea.com.bd
Chinese-made textiles have flooded the Nigerian market. Traders say cheap imports have been disastrous. Nigeria has a history of weaving and textile manufacturing dating back centuries. Factories have shut and trade in home-spun fabrics has dwindled, prompting calls for foreign investment within Nigeria rather than cheap, mass importation, as well as better regulation.
The Chinese have effectively edged Nigerian traders out of business, leaving them with nothing but huge debts and heaps of goods in their shops. After having taken over the import and distribution of textiles, the Chinese are now into retail trading. The troubles began a decade ago when Chinese textile merchants started massive imports of textiles in Nigeria after Africa’s most populous nation opened its doors to foreign trade.
The WTO deal gave the Chinese unfettered access to Nigeria’s textile market, although Nigerian laws prohibit foreigners from retail trading. There are rumors locals are being recruited to conduct business on behalf of the Chinese in return for a cut in profits. Hundreds of textile dyers staged street protests against what they view as a Chinese takeover of their trade. The dyers accuse the Chinese of faking their products and selling inferior cloth at a fraction of the price.
The way out is to regulate Chinese trading. That could include quotas, stricter enforcement of import regulations, duties and taxes as well as fuel subsidies to boost local manufacturing and help home-grown businesses.
The export of textile goods from Pakistan showed a marginal improvement of 2percent to $1.08billion in April, says recent data released by the Pakistan Bureau of Statistics. At the same time, value-added textile segment saw good growth, an impressive 11percent on year-on-year basis to $607million. This is mainly attributable to a 4percent yearly depreciation of the rupee and the country’s enhanced market access of the European Union region. The value-added sector benefitted from higher exports of knitwear, bedwear and garments.
During the month, garment exports rose 15percent to $174million due to a 16percent increase in realised prices, despite a 1percent reduction in volumes. Knitwear exports went up 9 percent to $190.7million as prices rose by 22.6percent. Bedwear exports jumped 11 percent to $177.5million, as a 9.6 percent reduction in prices corresponded with a 22.8 percent growth in sales volumes.
However, basic textile declined by 9 percent year-on-year to $341million, led by an 8 percent decline in cotton yarn exports. On a sequential basis, textile exports grew 5 percent in April, whereas value-added exports went up 10percent. However, basic textile exports decreased 3percent over the previous month.
www.pbs.gov.pk
Chinese-made textiles have flooded the Nigerian market. Traders say cheap imports have been disastrous. Nigeria has a history of weaving and textile manufacturing dating back centuries. Factories have shut and trade in home-spun fabrics has dwindled, prompting calls for foreign investment within Nigeria rather than cheap, mass importation, as well as better regulation.
The Chinese have effectively edged Nigerian traders out of business, leaving them with nothing but huge debts and heaps of goods in their shops. After having taken over the import and distribution of textiles, the Chinese are now into retail trading. The troubles began a decade ago when Chinese textile merchants started massive imports of textiles in Nigeria after Africa’s most populous nation opened its doors to foreign trade.
The WTO deal gave the Chinese unfettered access to Nigeria’s textile market, although Nigerian laws prohibit foreigners from retail trading. There are rumors locals are being recruited to conduct business on behalf of the Chinese in return for a cut in profits. Hundreds of textile dyers staged street protests against what they view as a Chinese takeover of their trade. The dyers accuse the Chinese of faking their products and selling inferior cloth at a fraction of the price.
The way out is to regulate Chinese trading. That could include quotas, stricter enforcement of import regulations, duties and taxes as well as fuel subsidies to boost local manufacturing and help home-grown businesses.
A parliamentary standing committee recently pulled up the Textile Ministry for spending just 39 per cent of the outlay approved for the 12th Plan period (2012-17) in the first three years, and sought a concrete plan of expenditure for the next two years. The committee sought to know why the ministry hasn’t been able to spend the allocated amount and asked if it would be able to utilise the remaining 63 per cent of the approved outlay in just two years. The ministry has blamed the step-wise procedures and time-lag in the implementation of schemes from concept stage to in-principle approvals to consultations with states, among others, for the delay. It said it had been able to firm up all the major schemes after due procedures at the end of the third year of the current plan and expenditure has been accelerated since 2014-15.
When the committee wished to be apprised of the concrete plan of action to optimally utilise the plan outlay in the next two years, the ministry said weekly monitoring was being done by the secretary (textile) in the presence of all senior officers, which has led to higher expenditure under most schemes.
The ministry also said for schemes which require proposals from states, regular interactions with chief secretaries of those states are being done. States have also been told to expedite fund transfer to the implementing agencies for various schemes, among other things.
Readymade garment workers in Bangladesh will soon benefit from the added security of insurance. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has directed its member factories to institute worker insurance or face export embargoes.
The country’s central garment sector organisation has also said it would cancel a facility’s membership for denying insurance. BGMEA is prioritising secure work environments and worker safety. Factories that are non-compliant with the direction would be spared from all kinds of facilities BGMEA provides. The organisation would be monitoring insurance implementation closely.
It isn’t uncommon for factory owners to forego insurance installments in favor of pocketing it for profit. Factories opting out of providing insurance won’t be able to export goods without the necessary documentation that only BGMEA can provide. Two of the major services BGMEA provides are issuance of utilisation declaration, a record of raw materials imported duty free, and utilisation permission, a written consent from customs mandatory for the sale of duty-free goods.
BGMEA is one of the largest trade associations in the country representing the readymade garment industry, particularly the woven garment, knitwear and sweater sub-sectors. Started in 1983, BGMEA takes care of an industry that is the backbone of Bangladesh’s economy. The association is dedicated to promoting and facilitating the apparel industry through policy advocacy to the government, services to members, ensuring workers’ rights and social compliance at factories.
