FW
The Delhi High Court has restrained Hyderabad-based Nuziveedu Seeds from selling Bt cotton seeds using the trademark of US-based agro major Monsanto’s Indian arm Mahyco Monsanto Biotech. The HC also asked the Hyderabad firm to pay royalty to Mahyco Monsanto after selling the old stock manufactured before November 2015.
Mahyco said it was compelled to terminate the license agreements of Nuziveedu and its group companies owing to the latter’s refusal to pay trait fees (royalty) of Rs 165 crores on specious grounds, despite having collected the maximum retail price from farmers.
The court restrained Nuziveedu Seeds from selling seeds manufactured after November 2015. The license agreement between the two parties was terminated. It also appointed local commissioners to make an inventory of stocks available with Nuziveedu. The court’s order came on a lawsuit moved by Mahyco.
Lawyers appearing for the agro major submitted the domestic company was selling the product by infringing the Monsanto trade mark. Monsanto said Nuziveedu was selling Bt cotton seeds manufactured using the US firm’s patented Bollgard-II gene technology.
Mahyco has also approached the Bombay High Court over non-payment of about Rs 400 crores of royalty fees by some Bt cotton seed manufacturers including Nuziveedu.
www.mahyco.com/
Considering the steep reduction in fuel meant for power generation, the Southern India Mills' Association (SIMA) has urged the chief minister of Tamil Nadu to reduce the power tariff. In a statement SIMA has said that Tamil Nadu was facing acute power shortage since 2008 and therefore, power cost was exorbitant in the absence of grid power. Hence, the textile industry, a power intensive sector, has been undergoing severe financial stress due to high cost power.
According to SIMA, the power subsidy, interest subsidy and various other incentives offered by all the major cotton growing states like Gujarat, Maharashtra, Andhra Pradesh, Punjab, Rajasthan added fuel to the situation and brought the new investments to a grinding halt.
M Senthilkumar, Chairman, SIMA says, after long battle, Tamil Nadu has now become a power surplus state and the tariff of power available in the open market is quite competitive. In view of this said that the power tariff should be reduced now. While applauding the government's move to make state a power surplus, the SIMA chairman stated that the government could mitigate the power shortage in spite of steep increase of over 33 per cent power consumption in the state by expediting the projects in the pipeline, overcoming bottlenecks in the existing power plants and also establishing new power plants on a fast tract mode.
For promotion abroad and internationalization of Italian businesses, the Italian trade agency and ACIMIT has decided to host 12 Italian textile machinery makers to target the Vietnamese market at the upcoming Saigontex trade fair to be held next month.
Vietnam is ranked at eight among export markets for Italian textile machinery companies, with exports to Vietnam over the first nine months of 2015 reaching EUR 31 million, a 53 per cent increase compared to the same period for 2014. Among the products most in demand are finishing/ennobling and spinning machinery.
Meanwhile, Vietnam has recently become a major market for textile machinery manufacturers. Having emerged as an important manufacturing hub for the garments sector, due to low labour costs, the country has now received a further boost for developing its textile industry, through the free trade agreements recently signed with the European Union and United States.
Scheduled from March 30 to 2 April 2016 in Hochiminh City, Saigontex, the Vietnam Textile & Garment Industry Expo is the biggest and most important trade and information platform in Vietnam. The 12 Italian machinery manufacturers are all ACIMIT associated members and include: A. Piovan, Beta Machinery, Carù, Fadis, Ferraro, JK Group, Mei, Pozzi Leopoldo, Pugi Group, Ratti, Rollmac, Tonello.
In the back drop of farmer suicides in Punjab and Haryana due to extensive damage to the cotton crop in 2015-16 because of pest attack has led to a swing in official opinion against genetically modified (Bt) seeds. The two state governments appointed a Joint Action Committee to ascertain the causes and to suggest remedies for white fly infestation. According to its report, the native variety (arboreum) is immune to cotton leaf curl viral disease and comparatively tolerant to white fly and other sucking insect pests. Hence, its cultivation should be promoted in Haryana, Punjab and Rajasthan.
According to sources in the Haryana government, an effort is on to assess the availability of traditional variety seeds with the agriculture universities, the Central Institute of Cotton Research and private seed producers. They expect to replace 15-20 per cent of the area under Bt cotton seed with the traditional one this year (rabi 2016-17) and in the next few years to take it to 50 per cent. Co-existence of Bt and non-Bt crop would curtail the chance of spread of epidemics like white fly, as the two crops are resistant to different kinds of diseases. Monoculture in agriculture is one of the causes of widespread diseases in plants. Presently, 95 per cent of the cotton grown in Punjab and Haryana is the Bt variety and this triggered the quick spread of disease.
Owning wool combing mill in the Czech Republic, and buying about 90,000 bales of Australian wool each year, former director of Australian Wool Innovation (AWI), Laurence Modiano's family company is the biggest in Europe. Recently, Modiano released a petition co-signed by 70 per cent of the world's major early stage processers, calling for pain relief to be made a legal requirement for any on-farm surgical procedures for sheep of any age.
According to Modiano, new national animal welfare guidelines released last month, which recommended that pain relief be optional for sheep under six months of age, were an invitation for radical animal rights groups such as People For Ethical Treatment of Animals (PETA) to attack the industry.
Now Australian wool producers are encouraged to complete a National Wool Declaration for the Australian Wool Exchange, revealing whether their flock has been mulesed — the surgical procedure where skin is cut from the breech of lambs to prevent potential blow fly strike. This year more than 12 per cent of growers declared that they did not mules their sheep and about 21 per cent said they had used pain relief medication.
The industry however, said based on sales figures of the registered surgical spray Tri-Solfen, which was developed for post-mulesing, the number of growers administering pain relief was more likely close to 70 per cent.
Accusing Agile Sweater (Cambodia) Company, part of a group that supplies clothing to Holister, Abercrombie and Fitch, and Nordstrom – of exploiting workers and firing hundreds who have spoken out about human rights violations within the factory, the Collective Union of Movement of Workers (CUMW) asked the Ministry of Commerce to stop the exportation of products from the Cambodian company.
According to Pav Sina, President, CUMW, his organization was asked to intervene by the Ministry of Commerce, because neither the Ministry of Labor nor Agile Sweater have shown a willingness to address worker’s problems. Workers at Agile Sweater have been on strike since December 2015, demanding better working conditions within the factory. Last month, CUMW sent five officials to assist the protesters, which lead to a violent clash with a rival union group and the arrests of the officials. CUMW now wants the Labor Ministry to accelerate their solution-finding process.
According to an official at the Dispute Resolution office, is coordinating a resolution at Agile Sweater (Cambodia) and said the case was very complicated because it involved multiple unions, all of whom accuse one another of not obeying the Labor Law.
Unethical labor practices have been detected at factories in Turkey which supply global fashion brands. As brands up their transparency efforts in relation to environmental impact, closer attention is likely to be given to their labor practices as well. Some of these brands are found to be breaking their sanctioned code of conduct and, even more damaging, their own standards.
Garment workers are subject to severe reprisals, punishments and even dismissals for attempting to unionize. Additionally, workers work hours exceeding the legal limit and many factories’ evacuation routes and emergency exits are not up to par.
Major fashion companies rarely own factories where their garments are made but sometimes they do and violations take place nonetheless. French leather goods house Hermès faced continued pressure from the People for the Ethical Treatment of Animals following the activist organization’s allegations in June 2015 of mistreatment of alligators and crocodiles that eventually become its handbags and watches.
As fashion brands advertise their spring collection to the fashion world, and boast record earnings to investors, it would be wise for executives to pay attention to consumer concerns. Fashionable people simply don’t want to wear clothing made by exploited workers. Likewise, consumers who choose to purchase leather goods do so in hopes that the animal was fairly treated.
Alliance, the platform of North American apparel brands and buyers in Bangladesh, has brought allegations of unethical engineering practices against three engineering firms in Bangladesh, saying they manipulated and tampered with safety reports. Alliance also says the firms lack practical knowledge to conduct engineering analysis and retrofitting designs. The other allegations by Alliance include part-time engineers, misguiding and harassing factory owners by giving false hopes, late and faulty detailed engineering assessment reports and negotiation with them to avoid retrofitting.
Fire, electrical and structural integrity in some 3,500 garment factories has been assessed by the initiatives Accord and Alliance. Some building owners or manufacturers have failed to provide the necessary documents, including building designs, during structural inspections.
However, one of the engineering firms says Alliance has forced its member factories to conduct engineering analysis by its nominated six engineering firms. So far, eight reports have been approved by both Accord and Alliance, while some are at the final stage of approval. Garment factories under Alliance have to submit reports within six weeks, a time frame which many say is too short.
Alliance has requested the apparel apex bodies such as BGMEA and BKMEA to inform their member factories they should desist from hiring the three firms.
www.bangladeshworkersafety.org/
Woven textile mills of Bangladesh meet only 35 per cent of the thread and yarns required by the booming garment sector. This means, 65 per cent of the requirements have to be met by imports, draining out a huge amount of hard earned foreign currency. Woven textile mills are suffering due to a lack of investment and policy support. Investments in this sector are not happening as business people see spinning as safer than weaving. The power crisis is a major barrier for investment in weaving. Captive power generators do not get new licenses and gas prices have doubled.
Capital machinery imports into Bangladesh in the fiscal year 2014-15 increased by 40.6 per cent over the corresponding period of financial year ’14. Woven textile mills in the country are manufacturing high technology based fabrics with state of the art machinery. But the readymade garment sector has to spend billions of dollars to import natural and cotton fabrics from China, India, Korea and from other countries.
There is certainly a market for woven fabrics in Bangladesh but the investment is not happening. The country has an aim of exporting garments worth 50 billion dollars by the year 2021.
Textiles Ministry is looking to disburse fresh funds to the tune of Rs 30,000 crores to the textile industry under the revised Amended Technology Funds Scheme by 2022. This is due to increased interest from the industry and the opportunities that lie ahead. Indian textile exporters are keen to make a bigger mark on the world stage.
The amount also marks a 67 per cent increase in disbursals from the original plan. Initially, Rs 18,000 crores were allotted for disbursal under the scheme. Under the new scheme, all new units in the textile sector would be facilitated with benefits. Existing units interested in upgrading their technology can also avail of the benefits of this scheme.
When the Technology Upgradation Fund Scheme was introduced in the early nineties, the scheme proved very successful in attracting investments. With the immense opportunities lying ahead in the textile sector, TUFS will be extended to make the textile sector more attractive and make India truly a textile manufacturing hub.
The aim is to bring the Indian textile sector at par with the textile industry in Vietnam, Cambodia, Bangladesh and Pakistan and get a larger global market access with low cost of manufacturing. With the Trans Pacific Partnership, Vietnam looks to upstage its competitors.
