FW
WTO member countries like the US, the European Union, Turkey, Japan have asked India to phase out export subsidies on textiles and the apparel sectors. WTO says India has crossed the export competitiveness limit (exports reaching 3.25 per cent of world trade) consecutively for two years in these sectors.
The sops that will have to be phased out include the popular Focus Product and Focus Market schemes under which exports to targeted markets are incentivised, the EPCG scheme and the interest subvention scheme for export credit. However, the government has not taken any decision on phasing out of subsidies.
India’s share in world trade for textile and clothing was 4.66 per cent in 2013 with exports worth $37 billion. Textile and clothing exports contribute more than 10 per cent to India’s export basket. They are the fourth largest product group in India’s outbound shipment basket.
As per the WTO, when the share of a developing country in global exports touches 3.25 per cent in any product category for two straight years, thereby gaining export competitiveness, it has to phase out export subsidies for the items eight years from the second year of breach. In case of nations with higher income levels, such subsidies are a strict no-no.
India, however, cites the WTO rule book to insist it has time until January 2018 as the multilateral trade body asked the country to consider phasing out the subsidies for textiles and clothing only in 2010.
The Federal Board of Revenue (FBR) in Pakistan has warned ginners to pay taxes of one billion rupees before or on March 30, 2015. Otherwise notices would be served to them in default of payment of tax at the rate of Rs 6 per maund on binola (cotton seed) as per the agreement reached between the PCGA and the Ministry of Finance.
The Pakistan Cotton Ginners Association (PCGA) has asked members to pay tax on the sale of binola cotton seed at the rate of Rs 6 per maund till March 30, 2015, to save themselves from any trouble otherwise they would have to pay five per cent general sales tax on oil-cake (khal) and two percent on binola oil.
The Federal Board of Revenue and the Pakistan Cotton Ginners Association have reached an agreement to pay Rs 6 per maund tax on cotton seed instead of five per cent GST on oil-cake and two per cent on cotton seed oil.
Ginners would have to pay more Rs one billion as tax against the sale of 165.44 million maund of binola. About 88,23,511 tons of raw-cotton (phutti) was arrived in the ginneries. Of them 66,17,633 tons of cotton seed were sold to oil expellers.
The eighth international symposium of intimate apparel was held in Hong Kong on March 17. It was organised by the Institute of Textiles and Clothing (ITC) of the Hong Kong Polytechnic University. The event was supported by the world's leading lingerie and beachwear trade show organizer Eurovet, the Hong Kong Intimate Apparel Industries’ Association and The Hong Kong Research Institute of Textiles and Apparel.
With the theme Intimate Apparel, Cradle to Cradle, the symposium held this year brought together local and overseas lingerie experts to share their insights and experiences. It discussed the latest product trends and development in the global lingerie market. It also sharpened the industry’s competitive advantage on future product lifecycle management. The aim was to promote the exchange of the latest knowledge in intimate apparel among academics and industrialists.
Among participants were lingerie designers, retailers, traders, suppliers, manufacturers and academics from Hong Kong, China, Asia and all over the world. Distinguished speakers shared their ideas and experience on the new development in sustainability of the global intimate apparel industry.
The Ace Style Institute of Intimate Apparel of ITC is the first lingerie institute in the Asia Pacific. Over the years, the institute’s research has reaped fruitful results and gained an international reputation.
Bangladesh's cotton consumption is expected to keep rising. At present, Bangladesh imports cotton from the US, India, Uzbekistan and a host of African countries.
In fiscal 2004-05, the country imported three million bales of cotton but within a span of 10 years the country’s consumption has doubled. Cotton imports grew 8 per cent in fiscal 2013-14 and 6 per cent the previous year. Currently, local spinners and weavers have the capacity to consume 10 million bales of cotton, but they are unable to go into full production due to inadequate supply of gas and power to industrial units. The 400 local spinners supply 90 per cent of the demand for raw materials for the knitwear sub-sector of the apparel industry and 40 per cent for the woven sub-sector.
Garment exporters are looking to hit the $50 billion mark by the end of 2021, meaning more raw materials will be needed. This forecast for apparel exports looks optimistic. The country is the second largest cotton importer in the world after China. It recently hosted the first ever global cotton summit. Over 250 delegates from Bangladesh, India, Poland, US, Russia, Pakistan, China, UK, Turkey, Egypt, Switzerland, Singapore, Hong Kong and France participated.
In a big revelation, Bangladesh commerce minister Tofail Ahmed has alleged that foreign buyers are not paying fair prices for readymade garment products imported from the country. Tofail, while addressing a seminar ‘Bangladesh – Flaming the future: A high level conference on RMG and Beyond’ in Dhaka, said that money is required to usher in improvement in factories. Bangladeshi exporters are not getting a fair price for their products from overseas buyers.
Ahmed further said that export earnings will be more than $33 billion during the current fiscal and the country will transform into a middle income one till 2021. He expressed satisfaction over improved factory situation and RMG sector had been able to avoid any unwanted incident during last two years.
The Denmark Embassy in Dhaka and Danish Business Development Ministry jointly organised the seminar on the occasion of opening a new strategic sector initiative also marking the stepping into second year of the Rana Plaza incidence.
The Tirupur Exporters' Association (TEA) has urged the Tamil Nadu government to set up a textile board with a focused approach for the development of the sector in the state. It feels there is a good scope to increase global market share from the current level of about 2.6 per cent by exporting value added products and synthetic products.
TEA has also urged the state government to provide incentives for setting up technical textile units in Tamil Nadu. It says the state textile department needs to work closely with industry for the development of technical textiles. Requesting the provision of five per cent interest subsidy under the TUFS, exporters say the state textile policy should provide five per cent interest subsidy and 10 per cent capital subsidy for modernisation or it should include expansion of garment units on the lines of the Gujarat and the Maharashtra textile policy, which provide five and seven per cent interest subsidy respectively.
Tirupur contributes about 45 per cent of total knitwear exports from India and exports only cotton based garments. TEA says Tamil Nadu should bring out a separate state export policy in line with the foreign trade policy of the centre to give a focused approach for export development of the state.
www.tea-india.org/
The Ministry of Agriculture in Egypt is working to boost cotton cultivation and set a deadline for planting cotton. It is conducting laboratory tests to determine seed quality. In addition, the ministry will identify certain cotton varieties for cultivation across various governorates. According to the ministry’s Central Administration for Seed Production (CASP), Abdul Kareem al-Masry, they are serious about efforts to support the cultivation of cotton and to bring this sector back to life. He also added that a unified planting season should improve the situation.
Cultivated area is expected to reach 300,000 acres this year with crop yields expected to touch two million kantars, at a price of 1,250 to 1,400 Egyptian pounds ($164 to $184) each, depending on quality. In the year 2000, Egypt cultivated 518,000 acres of cotton, but the number fell to 325,000 by 2010 and 217,000 by 2014, he said.
The decline in cotton production was due to markets flooded with cheaper imported version, which has been able to compete with local production. Cotton cultivation is not the sole responsibility of the Ministry of Agriculture. The Ministry of Education also has to make efforts towards capacity building with schools offering training to students and encouraging them to take an interest in the cotton industry.
Greenpeace East Asia has released 'Detox Catwalk', an online platform assessing how effectively major fashion brands are in removing toxic chemicals from their supply chains and tackling water pollution. Inditex (the company that owns Zara), Puma and Valentino join 13 other Detox leaders in this year’s ranking, while sports brands Nike and Lining are labeled Greenwashers for their failure to take credible action to Detox.
Fashion companies that have committed to Detox over the past four years represent approximately 10 per cent of the global apparel and footwear market. This momentum is creating a new standard in sustainable fashion, sparking a transparency revolution and proving that zero discharge of hazardous chemicals is within reach by 2020.
The Detox Catwalk assesses how committed companies have performed against key criteria like: how they are working to eliminate known hazardous chemicals, including hormone disrupting chemicals such as PFCs, nonylphenols and phthalates, from their products and processes; what steps they are taking towards full supply chain transparency.
The four-year Detox campaign is changing the way companies are working with their suppliers and is starting to shift chemical regulations in manufacturing countries. It demands fashion brands to commit to zero discharge of all hazardous chemicals by 2020 and require their suppliers to disclose the release of toxic chemicals from their facilities to communities at the site of the water pollution.
With numerous overseas exhibitors looking to take advantage of the burgeoning regional textiles market the Intertextile Shanghai Apparel Fabrics-Spring Edition 2015 took off in China. This edition has a number of country and region pavilions from Asia. And there were many returning pavilions from Japan, Korea, Pakistan and Taiwan, as well as the Texprocil Pavilion from India. These are in addition to the recently announced Portugal Pavilion, Germany and France zones, and Milano Unica Pavilion from Italy.
The ongoing fair is taking place at the National Exhibition and Convention Center, Shanghai for the first time. The hall is almost double in size compared to the exhibition area of last year’s spring edition. More than 2,000 exhibitors are displaying their latest collections at the venue, over 35 per cent increase compared to 2014.
After an absence, the Japan Pavilion returned this spring. The pavilion has around 20 exhibitors and is organised by Japan Fashion Week Organization. The Korea Pavilion also returned after appearing at both editions of the fair in 2014. Over 90 exhibitors are showcasing a wide range of man-made and functional fabrics. Organised by the Korea Fashion Textile Association (KFTA), the exhibition space has expanded by nearly 50 per cent compared to last year.
Taiwan suppliers have a strong reputation for quality and innovation, and around 50 exhibitors at the Taiwan Pavilion are displaying their latest accessories, cotton, denim, embroidery, jacquard, knit, lace, polyester, spandex, wool blends and woven fabrics. Shifting focus to South Asia, India is represented by the Texprocil Pavilion, organised by The Cotton Textiles Export Promotion Council, and is showcasing a wide range of cotton fabrics and yarn. this year’s Pakistan Pavilion with seven exhibitors is dedicated to cotton fabrics for casual wear and jeans wear. The pavilion is organised by the Commercial Section of the Embassy of Pakistan.
As demand continues to grow in the Chinese textiles industry for premium European products, the fair is also displaying leading apparel fabrics and accessories suppliers from SalonEurope and the Milano Unica Pavilion. Over 2,000 domestic and international exhibitors are participating in the fair this year. The Milano Unica Pavilion has developed a reputation for showcasing only the best of the best from Italy, and this year is no exception. Around 120 producers are presenting their latest collections of premium apparel fabrics and accessories for ladies and men’s wear. Making a repeat appearance at the Spring Edition is the Portugal Pavilion, organised by Associacao Selectiva Moda, which has over 10 exhibitors showcasing high-quality shirting fabrics. Also in SalonEurope is the France zone, which after a strong showing at the Autumn Edition 2014, has made its debut at this year’s fair.
Bangladesh Accord on Fire and Building Safety, a platform led by European brands and retailers, has debarred a local apparel making company due to noncompliance. Accord also issued warning letters to another 13 factories where remedial works for ensuring safety were not satisfactory.
Accord engineers identified serious fire safety lapses in Mega Chois Knitwear and asked the authority to evacuate the building temporarily for necessary remedial works, but the factory owner refused.The safety concerns were of such an extent that the building was determined unsafe for production and occupancy until such time that urgent remedial measures were completed and a proper exit system established.
As per the findings, the factory has only one exit for over 600 employees which has created an extremely unsafe situation. Mega Chois Knitwear is considered a non-compliant supplier and ineligible to produce for any Accord signatory companies. The factory owner says, he is not willing to upgrade safety standards as per recommendations of Accord as the company manufactures mainly for Korean buyers who are not concerned over safety standards. Accord has warned of cutting business relations with 13 more factories for their failure to take remedial steps.
bangladeshaccord.org/
