FW
"As per The Dutch Agreement on Sustainable Garments and Textile (AGT), currently there are 4,268 production sites in India where participating companies produced goods in the past year. This sharp rise in the number of production sites is a result of more companies signing up the Agreement, as well as them gaining insight into their supply chain and production sites. A positive step towards transparency, this helps companies gain better understanding of the value chain and enables them to act on the risks identified. With this, NGOs and trade unions can get to the bottom of the prevailing working conditions at production sites raise any occurring issues within the Agreement."
As per The Dutch Agreement on Sustainable Garments and Textile (AGT), currently there are 4,268 production sites in India where participating companies produced goods in the past year. This sharp rise in the number of production sites is a result of more companies signing up the Agreement, as well as them gaining insight into their supply chain and production sites. A positive step towards transparency, this helps companies gain better understanding of the value chain and enables them to act on the risks identified. With this, NGOs and trade unions can get to the bottom of the prevailing working conditions at production sites raise any occurring issues within the Agreement.
Increase in participants
When the Agreement was incepted in 2016; it had only 55 brands on board. This has now increased to 79 brands; almost 42-45 per cent of the Dutch garment industry. It is expected that the Agreement will achieve its objective of 50 per cent market coverage in 2018. Participation in the Agreement though voluntary; is not free from obligations. The company’s efforts are assessed according to an established assessment framework.
Identifying the materials used
For the first time ever, the Agreement has systematically identified the materials used and subsequent quantity of ‘sustainable’ materials. It is clear that
cotton is by far the most frequently used material, of which 56 per cent is ordinary cotton and 44 per cent more sustainable cotton. This knowledge makes it possible to monitor the sustainable credentials of the choices that the companies will make in the years to come.
Risks faced by the companies
The participating companies, from the next year onwards, will also publish individually the greatest risks that they face in the factories where they produce, together with their policy for dealing with these risks. This will be done on the basis of IRBC (International Responsible Business Conduct) risk management (i.e. due diligence). This provides information on risks in the areas of, for example, a living wage, child labour, environmental damage and animal welfare. Within the Agreement, companies also cooperate with NGO's, trade unions and government, with the shared goal of tackling risks and negative impacts. This is done, for example, by holding discussions with local authorities or considering collaboratively how problems in the value chain can be best addressed.
Way ahead
At the end of its second year, the Agreement can show with these results that it has made progress on what was agreed in 2016. As Pierre Hupperts, Independent Chairperson, says, “Companies are making strides towards transparency in their value chains and the manner in which they deal with risks. Collaborative projects have also been launched, for example in the areas of freedom of association and the prevention of child labour. However, parties to the Agreement are also realistic: the Netherlands is a relatively small player in the world market and the problems are substantial.” Parties are therefore working on international upscaling initiatives, such as the German-Dutch cooperation launched at the beginning of 2018.
The European Fashion Award FASH took place with a new concept this year, as a reaction to the fundamentally changed study regulations, a new generation and the vital changes in the fashion industry. The Foundation of German Clothing Industry presented the European Fashion Award Fash was presented in In Berlin. The finalists and winners could take a critical view of the fashion industry and have fresh ideas for it.
The winners were: Annika Klaas from Reutlingen University and Maria Presser from AMD - Akademie Mode und Design, Berlin - in categories students and theses. The prizes are each endowed with 2,500 euros and individual coachin. The European Fashion Award Fash took place this year with a new concept. The 20 finalists experienced two days of intensive exchange, networking and mutual learning.
A jury of internationally experienced experts selected the winners of the Fash on the basis of defined criteria the prize is one of the most important international awards for fashion students. The aim of the Foundation of the German Clothing Industry SDBI is to promote young designers by introducing them to business and industry. In addition, the finalists chose a prize winner from among themselves.
US tariffs on Chinese imports have taken effect. With China having vowed to respond immediately in kind, the world’s two biggest economies took a high-stakes turn toward an all-out trade conflict. China has also imposed tariffs on imported US goods including autos and agricultural products.
The United States may ultimately target over $500 billion worth of Chinese goods, or roughly the total amount that the United States imported from China last year. The US has railed against China for intellectual property theft and barriers to entry for US businesses and a A$375 billion US trade deficit with China. Throughout the escalating conflict, China has sought to take the high road, positioning itself as a champion of free trade.
While the initial volley of tariffs is not expected to have a major immediate economic impact, the fear is that a prolonged battle would disrupt makers and importers of affected goods in a blow to global trade, investment and growth. For companies with supply exposure to tariffs, they will move sourcing country of origin if they can; if they can’t, they’ll pass on as much of the tariff cost as they can, or see a cut in margins. The dispute has roiled financial markets including stocks, currencies and the global trade of commodities from soybeans to coal in recent weeks.
The theme for the Responsible Fashion Summit was Earth Sensitive, with nearly every stakeholder of the fashion supply chain sharing knowledge. It commenced with three key international designers, David Abraham, Sharleen Ernster and Heidi Gosman, who shared important perspectives, including disposal of the garments being considered, as part of the design thought process, which is something that has not been strongly followed by designers, resulting in landfill issues.
Responsible Fashion Summit is part of The Responsible Fashion Movement that focuses on responsibility, accountability and transparency. It has defined eight impact areas as the basis of solutions to issues that the global fashion industry faces.
The Responsible Fashion Movement has modeled itself on the most relevant aspect of solutions and longevity. Fashion currently ranks among the top three most polluting industries in the world. Yet action to reduce negative impact is still slow in gaining momentum. Sustainable fashion products continue to grow at a steady pace. An ever increasing population of aware and discerning consumers in the US, Europe and parts of Asia is beginning to put pressure on global fashion brands to open their doors to clean fashion.
Manufacturers who move in this direction earlier will have an advantage. There also exists a wide gap between the action of designers and manufacturers; hence so far every action is resting with manufacturers. The designers are in a position to lead the corrective action.
Source India 2018 will be held in Surat, September 21 to 23. This is a show for international buyers who are looking to source synthetic and blended textiles from India. It will assemble an array of more than 200 international importers from more than 40 countries who can transact business with more than 200 exporters in this sector.
India currently ranks among the top three suppliers of these textiles worldwide. Source India 2018 will cover the entire value chain in manmade fiber textile products and its blends. Fabrics (that include suiting, shirting, women’s wear), yarn, fiber, made-ups, home textiles and technical textiles will be showcased by leading exporters during the event.
The Global Reverse Buyer Seller Meet will provide a boost to the Make in India campaign in India’s second largest employment generating industry. More than 200 foreign buyers are expected from 40 countries in addition to more than 5000 visitors including domestic buyers, representatives of Indian and international buying houses, procurement managers from large retail brands, sourcing agents, CEOs, industry heads and business leaders.
Source India 2018 is the second edition of India’s largest sourcing show for textiles. The textile products will be spread over 10,000 sq m of air-conditioned space.
Penn Textile Solutions and Penn Italia have introduced Ecoinnovation, a fully sustainable product range. These products are created using Roica, a premium stretch fiber. Making stretch performance a specialty fiber generates new values for contemporary consumers.
Penn Textile Solutions and Penn Italia is a fully integrated company with over 50 years’ expertise in producing innovative warp and weft knit textiles that answer customers’ demands, including fantastic elastomeric knitted textiles.
Ecoinnovation consists of unique articles characterized by reinforced edges and seizing that includes the following recycled items; tulle, tulle galloons with dreamshape reinforced edge, tricot, dreamshape reinforced gripping edge (great for cycling shorts), stretch satin, polyester tulle and polyester double jersey perfect for laser cutting.
Beachwear brands use Roica in their latest collections. Roica is a premium stretch fiber produced by Asahi Kasei. It is the secret premium stretch ingredient used to provide comfort, enhance quality and confidence. Roica’s collection of superior functional fabrics is revolutionizing the premium stretch market, thanks to advanced yarn solutions dedicated to specific needs of the contemporary consumer.
Penn Textile Solutions, based in Germany, manufactures and distributes textile goods. The company markets linen goods, felt goods, padding, and upholstery filling to clothing and furniture manufacturers.
Indian-Dutch partner organisations are working toward the goal of sustainable and inclusive decision making. One example is the Circular Yarn Initiative which sees Indian and Dutch textile companies joining forces to produce circular textiles for the European market. This is achieved by pooling resources and expertise to incorporate innovative techniques in the supply chain to turn textile waste into new high quality materials.
Indus is an entrepreneurial network which aims to improve sustainable and inclusive innovations in both Indian and Dutch businesses and is made possible through the support of MVO Nederland, the Dutch Embassy in India, Center for Responsible Business, Indian Institute for Corporate Affairs, TERI and CII-ITC Centre of Excellence for Sustainable Development.
India and the Netherlands are collaborating in areas including agribusiness and horticulture, water management and sustainable business. Netherlands is a huge importer of fabrics and also a champion of labor and environment issues. It pursues a successful environmental policy that is resulting in cleaner rivers, reduction in carbon emissions, reduction in waste streams, and the cleanup of contaminated soil.
National environmental policy is directed to contributing to sustainable economic development and to the health and safety of people by maintaining and improving the quality of the environment.
India is likely to outdo China in the textile sector. Contributing factors are cheap labor and modernization. With quality and skilled labor and machinery, India can easily overcome Chinese competition in the textile industry as labor costs in China are very high compared to India’s.
High-tech machines which help deliver quality goods will enable India to reach the set targets at the production level. Tamil Nadu alone accounts for 39 per cent of the total textile production in the country. There are 4.13 lakh handlooms in Tamil Nadu providing employment to 6.08 lakh weavers while the 3.66 lakh power looms and 1,889 spinning mills provided employment to another 2.40 lakh people. Knitwear and woven garment production units provide employment to over five lakh people.
India aims at doubling annual revenue from textiles by 2025. The Indian textile sector contributes 16 per cent to the country's GDP. Foreign direct investment is being encouraged in the textile sector, which has the potential to create millions of jobs. The textile sector is capable of strengthening the rural economy and creating large-scale employment.
However, the Indian textile industry is over-dependent on the European Union and the US for exports. But when the season goes away in those markets, there aren’t enough orders.
Guwahati-based Fabric Plus has received best handloom exporter award from North Eastern India at the 28th National Handloom Award function. Textile minister Smriti Irani felicitated handloom weavers and exporters from across the country in Chennai for their fineness in separate categories of the handloom sector. The award function was organised by Handloom Export Promotion Council under Ministry of Textiles, Govt. of India.
Fabric Plus is a manufacturer of yarn, fabric and apparel using exclusive Eri and Muga silk from Assam and has brought livelihood to hundreds of families in the North Eastern India.
Dilip Barooah, Managing Director of the company stated the company feels proud to get recognised as Best Handloom Exporter from North Eastern region. At the same time, North Eastern India in spite of having highest handloom density in the country no other company could manage to get any award.
Fabric Plus started off as a merchant exporter in Mumbai in 2003 with Assam silk as the flagship products. It was founded by the present Dilip Barooah.
The textile industry has demanded the government put in place a distribution mechanism for the industry, winding below the pressure due to various reasons, for getting the raw material at reasonable rates. While welcoming the 28 per cent hike in minimum support price (MSP) of cotton to safeguard farmers get at least 50 per cent profit of their actual cost of production, the Confederation of Indian Textile Industry (CITI) cited that at one level the move would increase farmers’ income, leading to an increase in domestic consumption that would eventually support the overall Indian economy.
However, there is a need to examine the event from different perspectives and understand that lakhs of farmers gain should not impact the $120 billion industry which employs more than 10 crore people directly and indirectly. MSP was increased by Rs 1,320/quintal in 2009-10 to 2017-18, and in 2018-19, it has been increased by Rs 1,130/quintal. The impact is huge and possibly unprecedented.
Sanjay K Jain, chairman, CITI stated textile and clothing being an integrated industry, the proposed hike in MSP based on 1.5 times the A2+FL costs would impact each segment along the supply chain raising the final price of the product. Jain pointed out that higher MSP would further compel huge cotton procurement by the state-run Cotton Corporation of India (CCI).
Previously the Centre raised cotton MSP (medium staple) by a record 39 per cent in 2008-09, driving up CCI’s procurement to an all-time-high of 8.9 million bales. Industry hopes that a clear CCI policy is spelt out, so that in case it needs to make a massive procurement, the industry gets regular offering from them throughout the season at international parity prices.
