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India will import 20,000 cotton bales from Pakistan.This is because of high Indian prices following limited supply. India is the world's biggest cotton producer. Landed cost of imported cotton is lower than local prices.
The move is a role reversal from earlier this year, when Pakistan was buying cotton from India after its output had been hit by bad weather. Indian cotton prices have risen by 28 per cent since the start of the 2015-16 season as two years of drought have affected output. Pakistani supplies are available at about 70 cents per lb on a free-on-board basis.
India has so far imported about 1.2 million bales in 2015-16 and needs another 4,00,000 bales before the new crop starts arriving from the end of September.
In fact supplies are dwindling in both countries. Global cotton prices could rally sharply in the coming months as stocks become further depleted in key producing countries.
The sharp rally in Indian prices is making imports viable from Pakistan. But Indian buying has been pushing up prices in Pakistan. Mills in Pakistan say cotton exports to India should be restricted and the raw material should instead be provided for domestic textile production.
More than 1,200 exhibitors from 18 countries and regions will take part in the 23rd HKTDC Hong Kong Fashion Week for Spring/Summer, which runs 4-7 July at the Hong Kong Convention and Exhibition Centre.
The Fashion Week, under the theme ‘Garden Breeze’ will include a variety of themed zones, including: Men in Style, Footwear, Leggings & Socks, Knitwear, Womenswear, Fashion Gallery, International Fashion Designers’ Showcase and Fashion Tech.
Epson Hong Kong will showcase a series of cutting-edge printers in the inaugural Fashion Tech zone. Another Fashion Tech exhibitor, The Hong Kong Research Institute of Textiles and Apparel (HKRITA), will showcase their textile innovations in activity-based Carbon Footprint Modelling (ACFM) and display award-winning items from the International Exhibition of Inventions of Geneva.
International trend forecast groups such as WGSN and Fashion Snoops will hold seminars to share their 2017/18 fashion forecasts. Other seminar topics include ‘Fashion Sustainability – From Product Development to Manufacturing’ and ‘Tips to Stand Out Your Brand in E-tailing Era.’ At the event, students from the School of Continuing and Professional Studies, Chinese University of Hong Kong, Hong Kong Polytechnic University and the Technological and Higher Education Institute of Hong Kong will showcase their latest collections.
According to ICRA, Government of India’s latest package for the textile sector is likely to improve the competitiveness of the country's exports but achieving the target of USD 43 billion of apparel exports by 2018 remains a challenge.
The Government approved a Rs 6,000 crore special package for textiles ICRA apparel sector to create one crore new jobs in 3 years, attract investments of USD 11 billion and generate USD 30 billion in exports. These steps will lead to increased competitiveness of India's apparel exports and improve employment generation in the garment sector given its labour intensiveness.
However, achieving the target of USD 43 billion of apparel exports by CY 2018 appear to be a challenge, while the fiscal incentives under the package will improve capacity additions and increase the competitiveness of India's exports.
In ICRA’s view, the increased benefit of 25 per cent of capital subsidy under amended Technology Upgradation Fund Scheme (TUFS) for new garment units will further reduce the investments requirements for new units by 7.5 per cent.
In addition, the proposal would also benefit new garment units by way of savings of up to 3.7 per cent on labour costs and 1 per cent on total manufacturing cost of apparel due to government's contribution towards employer's share of EPF contribution, according to the report.
Meanwhile, India's garment exports grew at 4 per cent in 2015, whereby they increased to USD 17.1 billion from USD 16.5 billion in the previous year.
According to ICRA, Government of India’s latest package for the textile sector is likely to improve the competitiveness of the country's exports but achieving the target of USD 43 billion of apparel exports by 2018 remains a challenge.
The Government approved a Rs 6,000 crore special package for textiles ICRA apparel sector to create one crore new jobs in 3 years, attract investments of USD 11 billion and generate USD 30 billion in exports. These steps will lead to increased competitiveness of India's apparel exports and improve employment generation in the garment sector given its labour intensiveness.
However, achieving the target of USD 43 billion of apparel exports by CY 2018 appear to be a challenge, while the fiscal incentives under the package will improve capacity additions and increase the competitiveness of India's exports.
In ICRA’s view, the increased benefit of 25 per cent of capital subsidy under amended Technology Upgradation Fund Scheme (TUFS) for new garment units will further reduce the investments requirements for new units by 7.5 per cent.
In addition, the proposal would also benefit new garment units by way of savings of up to 3.7 per cent on labour costs and 1 per cent on total manufacturing cost of apparel due to government's contribution towards employer's share of EPF contribution, according to the report.
Meanwhile, India's garment exports grew at 4 per cent in 2015, whereby they increased to USD 17.1 billion from USD 16.5 billion in the previous year.
With eco fashion as one of the focal points, Berlin Fashion Week has a specific theme that clearly sets it apart from the fashion weeks in Paris, London, Milan and New York. The central hotspot for all things eco-fashion will be Greenshowroom and Ethical Fashion Show Berlin from June 28-30, 2016. This summer, the trade fair duo at the Postbahnhof will celebrate an anniversary and exhibitor record: 'A total of 168 international labels will give the event a scope that is greater than ever before, not just in terms of the surface area, but also the number of labels. The internationality of the event has also grown. Greenshowroom and Ethical Fashion Show Berlin is taking place for the tenth time.
The upcoming edition of the trade fair duo puts the topic of social responsibility firmly on the agenda and presents a variety of pioneering labels that place value on socially fair production conditions. During a three-day programme with talks and panel discussions, representatives from the worlds of industry, trade and design will highlight the important challenges and discuss solutions. The CSR day hosted by the Dialogs Textil-Bekleidung (DTB), which will take place in cooperation with Messe Frankfurt for the first time, tackles this topic. On the second day of the trade fair, June 29, 2016, at the club in the Postbahnhof, there will be a whole-day programme entitled ‘Responsible Management of Supply Chains – Social Compliance and Chemical Input.
The Cotton Association of India with over 400 members representing all walks of cotton trade such as merchants, brokers, spinning mills is opposed to all measures that negatively affect free trade in cotton.
Reacting to the recent reports from Pakistan about the opposition from All Pakistan Textile Mills’ Association (APTMA) to export cotton from Pakistan to India, Dhiren Sheth, President of CAI urged the Government of Pakistan not to support the call for export ban by APTMA.
Dhiren Sheth expressed that if issue for APTMA was the elimination of import duty on cotton, it has to be addressed directly as a separate issue. CIA has expressed strongly that it is opposed to measures hurting free trade such as import duty and has warned about the serious repercussions on the cotton trade and textile industry in Pakistan and India if APTMA’s push becomes a reality.
According to industry sources, although India is a leader in cotton production and is expected to export about 6 to 6.5 million bales (170 Kgs) this season, India needs to import little quantities of short staple from Pakistan and long staple from United States, Australia and Egypt to cater to the needs of its diverse spinning sector. In commenting on the end-uses of short staple cotton imported from Pakistan, the source said those cottons are spun into yarns that go to developing industrial application products such as coverall and wrapping bags.
"The outcome may see Britain embark on at least two years of complicated divorce proceedings with the EU, raising questions over London’s role as a global financial capital and putting huge pressure on its Prime Minister David Cameron to resign. Friday morning, Europe woke up to the news that more than half of British voters in the country's EU referendum decided they no longer wanted to be a part of the 28-nation bloc."
The outcome may see Britain embark on at least two years of complicated divorce proceedings with the EU, raising questions over London’s role as a global financial capital and putting huge pressure on its Prime Minister David Cameron to resign. Friday morning, Europe woke up to the news that more than half of British voters in the country's EU referendum decided they no longer wanted to be a part of the 28-nation bloc.
With 52 per cent of voters supporting a decision to leave, against 48 per cent for remain, Britain’s highly divisive referendum has been closely watched by financial markets and politicians around the world.
The pound plummeted to its lowest level against the dollar since 1985. The euro also fell 3.3 per cent against the dollar, its biggest one-day fall since the currency's inception. And Asian stocks dropped sharply as the markets began to digest the results.
In the run-up to the vote, major banks, corporations and governments around the world had warned against an exit from EU, including the IMF, who opined Brexit could cause ‘severe regional and global damage.’
The break up
England voted strongly for Brexit, by 53.4 per cent to 46.6 per cent, as did Wales, with Leave getting 52.5 per cent of the vote and Remain 47.5 per cent. Scotland and Northern Ireland both backed staying in the EU. Scotland backed Remain by 62 per cent to 38 per cent, while 55.8 per cent in Northern Ireland voted Remain and 44.2 per cent Leave.
Prime Minister David Cameron promised to hold one if he won the 2015 general election, in response to growing calls from his own Conservative MPs and the UK Independence Party (UKIP), who argued that Britain had not had a say since 1975, when it voted to stay in the EU in a referendum.
The EU has changed a lot since then, gaining more control over Briton’s daily lives, they argued. According to Cameron, It is time for the British people to have their say. It is time to settle this European question in British politics.
How long will it take to leave the EU? The minimum period after a vote to leave will be two years. During that time Britain will continue to abide by EU treaties and laws, but not take part in any decision-making, as it negotiated a withdrawal agreement and the terms of its relationship with the now 27 nation bloc. In practice it may take longer than two years, depending on how the negotiations go.
No nation has ever left the EU. But Greenland, one of Denmark's overseas territories, held a referendum in 1982, after gaining a greater degree of self government, and voted by 52 per cent to 48 per cent to leave, which it duly did after a period of negotiation.
What happens next?
David Cameron said he would be stepping down as prime minister by October. He said he would leave it to his successor to invoke Article 50 of the Lisbon Treaty, which kicks off the two-year process of negotiating a new trade relationship with the UK's former partners.
Britain leaving the EU will send shockwaves across the world, not least for its fashion industry, which contributed an estimated £26 billion ($38 billion) to the UK economy in 2014.
Luca Solca, head of luxury goods at Exane BNP Paribas said that the industry has to brace for more demand retrenchment. The most important consequence of 'Brexit', is a dent to global GDP prospects and damage to confidence. This is likely to develop on the back of downward asset markets adjustments. Hence, more than ever, the industry will have to work on moderating costs and capital expenditure.
Foreign Direct Investments (FDI) to Rwanda have increased by 78.1 per cent in 2014 from 2013. Mauritius investments in Rwanda are leading with 113.5 million dollars followed by Switzerland. The United States of America and Luxembourg come on third and fourth positions.
For the last seven years (2009-2014), a total of 338 investment projects fully owned by foreign investors or in joint ventures with local investment have been registered with a pledged investment value of 2,607 million dollars and planning to create 55,141 jobs.
In 338 pledged projects, 211 are operational, 69 are in implementation phase, and 32 have closed, while 36 remain committed to start their activities.
The performance is attributed to several reforms in doing business including a tax holiday of up to seven years, government’s protection of investments, settlement of disputes, transfer of funds and special economic zone facilitations.
The major profitable sectors are finance and insurance specifically in the banking sector, manufacturing and agriculture.
In 2015-2016 Rwanda improved its world ranking in ease of doing business to 46th position in the world, up from 48th the previous year. In Africa, Rwanda retained the third position and number one in the East African Community.
China is upgrading the textile sector in Pakistan.
China is already running a training program for its unskilled people, which would be replicated in Pakistan. Chinese companies will train Pakistani laborers in various industrial disciplines. Under this plan, various universities would be linked up with industrial sectors.
An apparel park is coming up in Pakistan. The Quaid-e-Azam apparel park is expected to generate an additional two lakh jobs. There is a vast possibility of Chinese investment in the Quaid-e-Azam apparel park, which would lead to the need of skilled labor, possessing knowledge of Chinese work ethics.
China is collaborating on several other parks in Pakistan.
The apparel park in Punjab province has been declared a Special Economic Zone. The apparel park is a state of the art project which is being constructed on 1,536 acres of land. Construction is underway at a fast pace.
The setting up of the textile park would promote the development of the textile sector in the region, while also strengthening the national economy. The construction of the textile park would also mean that Pakistan would be availing of the benefit of modern technology and technical skills that are currently practiced in the Chinese textile sector. It would also contribute to enhancing Pakistan’s exports.
South Korea’s exports may rebound in the second half of the year from a falling streak that has lasted more than a year. Recovery in advanced economies and rising global oil prices will help.
Exports from July to December are likely to grow 0.9 per cent from a year earlier compared with an estimated 10.1 per cent drop for the first half of the year.
Shipments have been on a steady decline since January last year on sliding commodity prices, a slowdown in growth in China and a sluggish global economy.
While exports of display components, machinery, semiconductors and textiles will see improvement , those of ships, smart phones and cars are unlikely to notch sharp rebounds anytime soon.
Meanwhile, monetary policy tightening in the United States and accelerated competition from emerging economies remain downside risks for Asia’s fourth-largest economy.
Exports dropped at a faster-than-expected pace of six per cent in May and are likely to be worse this month as 20-day exports notched a 12.8 per cent fall.
South Korea has an export oriented economy and its exports accounts for more than 50 per cent of GDP. Major export partners are China, the United States, Hong Kong, Vietnam, Japan and Singapore. Others include India, Taiwan, Mexico, Australia, Saudi Arabia and Philippines.
