FW
A rise in rates of raw jute in Bangladesh, witnessed in the last two months despite slow exports, which could lead to a drop in production level below last year’s level has put pressure on public and private mills, already under pressure for dwindling export orders. At present, raw jute is trading at Tk 1,600-1,800 a maund (40 kg) in producing regions, which is 13 per cent higher than last year. Subsequently, a section of stockists saw an opening for windfall in the off-season, hoarding most of the supply of raw jute that was made available in the past two months.
Now jute and textiles ministry has directed Department of Jute (DoJ) to take action to ensure adequate supply of the natural fibre in the market. It asked DoJ for measures so that none can hold 1,000 maunds of jute more than a month. The ministry also directed DoJ to prevent traders without licenses to buy and sell raw jute.
Raw jute exports slumped more than 100 per cent last fiscal year to 9.84 lakh bales, according to the DoJ. In case of processed jute, only yarn exports grew marginally but shipment of jute sacks and bags dropped as well in the last fiscal year. According to Export Promotion Bureau, between July and September of current fiscal 2014-15, exports were down 3.94 per cent in terms of value year-on-year.
Motj.gov.bd
The European Union is helping the Myanmar garment industry boost its productivity. This includes projects to enhance efficiency and quality, reduce waste and energy consumption and improve working environments.
For instance experts from a German textile company have suggested ways to improve production at six factories. A separate mission has seen the installation of production-flow software at some factories. This ensures staff is rewarded according to their performance and allows management to monitor production. The initiative’s aim is to work closely with companies and organisations in the country, building capacity and increasing skills, as well as helping the development of export and marketing strategies for the garment sector.
Specific actions will include a range of training initiatives, including a study tour to Europe for stakeholders, and the identification of showcase companies and benchmarking for best in class companies. Companies looking for alternative low-cost sourcing alternatives to China, combined with the lifting of economic sanctions by the US and Europe, have been looking at Myanmar's clothing industry with interest.
Myanmar’s garment industry is poised to become a major player in the global garment supply chain. The country has had a long history of making yarn, fabric and garment. Myanmar allows 100 per cent foreign investment in the garment industry, as well as joint ventures with existing manufacturers and potential ones.
Invista has opened a new laboratory in China. The laboratory is designed to improve product development cycle time, enhance technical services in the region, and ultimately provide innovative solutions to customers working with Invista.
The new facilities will allow performance testing and analysis of advanced textiles and polymers used in airbags and in products sold under the Cordura and Dacron brands in the Asia Pacific market. In addition to basic testing, technicians will be better able to examine many other properties such as flexibility, wear resistance, breathability and aging. This is intended to give Invista a clearer understanding of specific textile performance and innovation needs for the Asian market.
In the field of automotive safety the lab is designed to extend Invista’s knowledge of airbag fiber and fabric demands, accelerating cooperation with customers in product innovation, development and qualification. The lab is aimed at improving the efficiency of the company’s service to customers in China and Asia Pacific—supporting fiber and fabric innovation and speeding the introduction of new products to the market.
www.invista.com/en/index.html
Apparel factory owners in Bangladesh are increasingly becoming dependent on the country's stock market for raising low-cost funds to expand their business, thanks to higher interest rates of commercial bank loans. As per the initial public offering prospectus of some companies, most of the prospectus aimed at fund raising for paying-off bank term loans, capital investment, expanding of the existing plants, working capital purpose, purchasing new machinery, constructing new factory buildings, purchasing of land and land development.
Entrepreneurs want to be enlisted with the stock market as it reduces the cost of financing business expansion. A company has to count high interest for bank loans and thus the lion’s share of the profits is being paid as bank interest. Therefore, they prefer the stock market for raising low-cost funds. Also getting funds from outside the banking system would help reduce debt and increases the brand value with a further scope for indirect advertisements for the company. Currently, 36 textile companies are enlisted with the Dhaka Stock Exchanges and the sector represents 3.5 per cent of the total market capitalization.
India is the world's second largest producer of man-made fibers. These constitute almost two-thirds of the domestic textile market. However, India’s share in the global exports of man-made fibers is just about three per cent. A major anomaly in the excise duty structure is affecting the growth of Indian textile industry and preventing it from achieving a larger share of the global market.
In contrast, China has given a big push to synthetic textiles and this has helped it become the world's largest textile exporter. Almost 80 per cent of China's textile exports consist of synthetics. The excise duty imposed on man-made fiber and yarn in India is 12 per cent while cotton yarn and fiber are exempt from excise duty.
In the domestic market, poor consumers suffer as the least expensive polyester shirt or sari made of synthetic fiber costs Rs 100 or Rs 150 because of the excise duty. In contrast, no excise duty is paid on cotton fiber and yarn used to produce cotton shirts bought by consumers at prices ranging above Rs 1,000. Therefore, only the poor pay more tax on textiles in the domestic market while the better-off are favored with no excise duty on the premium cotton worn by them.
Pitti Immagine Uomo will be held in Florence, Italy from January 13 to 16, 2015. This is an international trade event showcasing men’s fashions and contemporary lifestyle trends including cutting-edge accessories and brands that have redefined sportswear.
About 40 per cent of the vendors at this edition will be from more than 30 countries. Pitti Uomo will offer an unique and original view of the many links between art, fashion, sport and design. It’s a platform for major names and international fashion groups to launch new projects and take new steps in their development. Little-known names see Pitti Uomo as the ideal place for establishing their identities and generating business. For the fashion system’s international players the fair is the springboard for presenting new concepts on the world’s stage.
For this edition Pitti Uomo has entered into a collaboration with the US trade show Liberty Fairs. Liberty Fairs and Pitti Immagine will present a selection of some of the best US brands ranging from classic styles to sportswear. There will be approximately 1,090 brands at Pitti Uomo, plus 70 women’s collections at Pitti W.
Over 30,000 visitors attended the last edition representing the world’s major department stores and small retailers.
www.pittimmagine.com/en/corporate.html
Cambodia has raised the controversial monthly minimum wage for garment workers by 28 per cent, a decision likely to infuriate unions seeking a higher increase and revive calls for strike action. Cambodia deployed armed troops in the capital in September as garment workers held rallies to revive a campaign for higher wages that had helped to stoke a year-long political crisis.
The growth of the garment sector has been a boon for the fledgling economy, providing as many as half a million jobs and generating $5 billion annually, but frequent protests by increasingly assertive unions, complaining about poor wages and bad conditions, have tested the government's patience. At stake, if the campaign leads to prolonged strikes, is the possibility of reduced orders from firms that outsource to Cambodian factories, such as Gap, Nike, H&M and Zara.
Two unions, the Coalition of Cambodian Apparel Workers Democratic Union and the Free Trade Union, have said that they didn't agree with the new figure and will hold meetings with their members about what to do next. The government however, feels that with revised wages workers will improve their living conditions, factories will be able to pay and production will increase.
An Italian textile technology training center has been opened at Ichalkaranji, Kolhapur. This follows the signing of an agreement two years ago between ACIMIT, the Association of Italian Textile Machinery Manufacturers, and the DKTE’S Textile & Engineering Institute of Ichalkaranji.
The project provides transfer of equipment on loan from Italian manufacturers for a maximum of three years as well as training courses. The project will be responsible for organizing all on-site activities. The initiatives planned include a mission to Italy in November consisting of DKTE’S professors and Indian textile operators associated with the institute.
The students of DKTE can be directly exposed to state-of-the-art Italian technology and this will further enhance their skills for research and development projects. The technology training center is part of the broader Machines Italia project. The goal of the Machines Italia project is to lay the foundation for future business opportunities in a market that is already important for Italy’s machinery manufacturers.
The Indian market ranks third as an export destination, with €28 million worth of machinery exported in the first quarter of 2014. ACIMIT represents an industrial sector comprising around 300 companies. The quality of Italian textile technology is evidenced by the export of Italian machinery to around 130 countries worldwide.
H&M is facing allegations of using cotton from Ethiopian farms that were subject to land grabbing. However, the world’s second-biggest fashion retailer has clarified it’s making every effort to ensure its cotton does not come from appropriated land. The company says it does not source cotton from the Omo Valley region, where there is a higher risk of land-grabbing.
H&M began small-scale buying of clothes from suppliers in Ethiopia in 2013. This was its first sourcing from an African country. Its operations are widely seen as part of the Ethiopian government’s plans to build up a garment production industry. The company said it had undertaken an analysis that showed land-grabbing did not occur in the area where its direct suppliers are located but that it was not possible to trace any land-grabbing further down its cotton delivery chain.
The Ethiopian government has leased large swathes of land, mainly in its western Gambella and Benishangul Gumuz regions, to large companies such as Indian firm Karuturi Global, hoping to boost agricultural productivity. Critics, however, say many people — poor farmers in particular — have been forced off their land under the scheme. Land is often bought or leased in developing countries, by foreign companies, without the consent of affected local communities.
www.hm.com/
Cotton made in Africa (CmiA) has less impact on the environment compared to conventional and irrigated cotton. CmiA cotton emits up to 40 per cent fewer greenhouse gas per kilo of cotton fiber than conventional cotton. CmiA is not organic cotton, but is grown using a minimum amount of pesticides. It saves more than 2,100 liters of water per kilogram of cotton fiber, compared to the global average, because it is only cultivated using rainwater.
The low amount of efficiently used resources and production facilities makes it possible to minimize greenhouse gas emissions that result from cotton production. Thanks to rain fed agriculture, a tremendous amount of water can also be saved. Rather than send money to Africa, the Cotton made in Africa initiative follows the principles of social business. This is aid by trade, helping people to help themselves by means of commercial activities. The African smallholder farmers who have joined this initiative are partners on an equal footing.
Cotton made in Africa does not aim to maximise the profit of individuals. It seeks to improve the conditions of life of a large number of African cotton farmers. In order to do that, it is building an alliance of international retail companies, which have targeted demand in the global market for sustainably produced cotton, and use this material in their products.
www.cotton-made-in-africa.com/
