FW
India has cut royalties seed companies pay to Monsanto by 20 per cent. This is the second time in two years such a cut has been made. The first time it happened, in 2016, the US company had threatened to leave India. At that time Monsanto's royalties were cut by more than 70 per cent.
Besides cutting Monsanto's royalties, India has also lowered prices of GM cotton seeds by 7.5 per cent to help farmers struggling with pest infestations. Farmers buy GM cotton seeds from Indian seed makers who pay to use Monsanto's proprietary technology to produce them.
The National Seed Association of India (NSAI) has threatened to halt supplies to eight million cotton farmers to protest the planned move to reduce seed prices. NSAI says the new, low price would impact seed supply and seed availability this year and also next year's seed production. It says seed prices have fallen since 2011 but fuel, labor and other supply chain costs have risen. NSAI had advocated for an increase in cotton seed prices but the suggestion was ignored. Last year India kept both royalties and the retail prices of GM cotton seeds unchanged.
Now Adidas has made shoes out of ocean plastic. These are wearable and stylish sneakers. Each pair is made from 11 reused plastic bottles, with the laces, heel linings and sock liner covers all made from other recycled materials. The shoes come in men’s and women’s sizes.
Adidas made the shoes in collaboration with the environmental initiative Parley for the Oceans. Shoes made from ocean plastic are just the beginning for the brand. Two years ago, Adidas switched from plastic bags to paper in its retail stores and as a result it has now eliminated about 70 million plastic shopping bags.
Adidas has also made headway in its efforts to cut per-employee water use and use more cotton sourced in an environmentally friendly way. Parley for the Oceans and Adidas have also collaborated to make other products such as tank tops, which are made from yarn that features Parley Ocean Plastic that’s created from recycled waste and leggings that are made of fabric that features Econyl regenerated yarn. With Adidas and other sports companies leading the way in creating a better environment, hopefully other brands will join too.
More than eight million tons of plastic are dumped into oceans every year. It’s feared that by 2050 there will be more plastic than fish in the sea.
Indorama Ventures is buying Brazil-based M&G Polimeros. M&G Polimeros produces PET resins for packaging applications. The plant is the largest PET facility in Brazil, with a capacity of 5,50,000 tons a year. The plant is strategically located and benefits from virtual integration with a manufacturer of Purified Terephthalic Acid (PTA), a key feedstock to PET.
Indorama is a petrochemical producer. The acquisition in Brazil is in line with the company’s strategy to further extend its market position and expand its global footprint in key markets with high growth potential. This strategic position allows Indorama Ventures to deliver products to key customers in Brazil and elsewhere in a cost-effective and efficient manner.
Indorama Ventures is well positioned to service its current global client base and M&G’s existing customers once this acquisition is complete and the plant is fully operational. The company expects immediate incremental revenues and cost synergies, driven by a substantial volume increase and potential value add through backward integration.
The acquisition will significantly advance Indorama’s strategy in its necessities business, where the company aims to deepen its global footprint and build scale in key markets.
Indorama now has unrivalled scale and global reach, being present in five continents with a uniquely balanced and integrated business model.
India has clarified that programs such as the Export Promotion Capital Goods Scheme offered to exporters are not subsidies.
These are given mainly to equalise the costs incurred by the industry with international costs and to induce adoption of better technology.
The US had challenged these schemes at the World Trade Organisation.
Industries face high logistics costs and state levies and these are not reimbursed. Schemes such as the Merchandise Exports From India are to offset these costs.
Total textile exports this financial year are expected to be about 40 billion dollars, almost the same as last year. But there are several reasons that are affecting exports such as contraction of international demand.
Apart from investments in the spinning and ginning segments, investments of more than Rs 30,000 crores happened in the last three to four years across the value chain under the Technology Upgradation Fund Scheme.
With the special packages announced for made-ups and garments, five lakh to seven lakh new jobs (direct and indirect) have been created.
Exports of value-added products such as garments, made-ups and technical textiles could help in pulling up the downstream segments of textiles and India is encouraging investors to invest in these sectors.
The United States has challenged India’s export subsidy programs. This has to be seen in the light of the US’ vocal opposition to the 50 per cent duty on Harley Davidson bikes levied by India.
Under WTO rules, countries with a per capita income of less than 1,000 dollars can provide export subsidies for particular sectors only until their share of exports is below 3.25 per cent of global trade. Once a country’s exports crossed this threshold and remained above it for two consecutive years, subsidies for that particular sector would have to be phased out over eight years, even if the per capita GNI of the country is below the 1,000 dollar threshold.
India’s textile exports crossed this 3.25 per cent threshold in 2010 and export subsidies will have to end this year. But the textile sector is hardly ready for a life without such schemes. It has lost the wage arbitrage advantage to countries like Bangladesh, Vietnam, Myanmar and Laos.
Withdrawing export subsidies will be politically difficult for the government in an election year and considering the fact that the exports sector as a whole is going through a difficult time. But one thing is clear: India will have to drastically change the way it helps its exporters.
India aims at doubling the annual revenue of the textile industry in the country by 2025. The country’s textile industry currently generates about 150 billion dollars in annual revenues — 110 billion from the domestic market and 40 billion through exports.
To achieve the target, production of synthetic clothes will have to be increased manifold.While the annual production of cotton textiles is pegged at 6.5 billion kgs, about 2.5 billion kgs of synthetic textiles are made.
About 2.5 lakh new jobs were created in the garments and made-ups sector since June 2016. Garment makers were able to get benefits to the tune of Rs 55 lakhs for every crore in new investments committed under the package. The capital subsidy under the amended technology upgradation fund scheme was increased to 25 per cent from 15 per cent. A new scheme was introduced to refund state levies which were not refunded earlier. The move cost the exchequer Rs 5,500 crores but it helped in boosting the competitiveness of Indian textile exports in foreign markets. Overtime hours were increased from three hours to eight hours a week. EPF was made optional for workers earning less than Rs 15,000 a month.
The readymade garment industry is the largest contributor to the country’s textile exports and employs about 12 million persons now.
Gartex which is India’s leading trade show completely dedicated to garment and textile manufacturing solutions and technologies will showcase the biggest and most comprehensive trade show. With the immense success of last two editions, MEX Exhibitions is back with its third edition of Gartex, arranged from 18-20 August 2018. More than 150 companies will display around 300 brands related to the theme at Pragati Maidan in a larger scale over 10,00,000 sq. ft. of exhibit area.
India’s most comprehensive trade show Gartex 2018 is India’s fastest growing and one-of-its-kind exhibitions on garments and textile machinery, fabrics, accessories and allied industries.
Gartex 2018 decided to expand the size for the show this year, facilitating a further bigger floor space to accommodate around double the number of exhibitors with an enhanced area for displaying a complete value-chain of garment and textile manufacturing solutions. This year edition will offer a lot of opportunities to manufacturers as well as buyers to get updated on new trends and business opportunities on a bigger scale.
Gartex is a great platform to highlight your product range to key decision makers. Broad exhibit categories include embroidery machines, cutting and sewing machines, fabrics and accessories, needles and threads, laundry and washing equipment, finishing equipment, laser cutting machines, digital textile printing machines, automation and software’s.
The targeted visitors include garment exporters, garment manufacturers, fashion designers, apparel industry professionals, home textile players, textile printing companies, sports & apparel manufacturers and buying houses.
Textile Forum was held in the UK, March 14 to 15. This is a fashion fabric trade show. Exhibitors and buyers sought to tap into a flourishing high-end textile scene and an increasing appetite for newness.
More than 100 collections were on show at the exhibition, which attracted top companies and high-quality designers. This was up from 70 at the October edition.
There was an uptick in visitors compared with previous editions. While some bemoaned the dominance of students, dressmakers, designers, buyers and manufacturers from small businesses and start-ups dominated the mix, which suited the ambitions of the brands.
There was an overwhelming London-based attendance. International visitors were almost non-existent. UK manufacturers met and networked with others in their sector.
Intricate lace and floral embroidery were the standout approaches from the event, while shimmering materials and delicate detailing also found a place on many stands. Stripes were also reported to be popular with buyers – a move away from the current catwalk infatuation with plaid and checked styles.
Lots of UK designers were looking for small minimums. This gives designers more flexibility, so they don’t end up with too much fabric.
Future editions of the show will increase the focus on ethical and sustainable fabrics.
In a move to improve the livelihoods of garment workers and help improve supply chain transparency and efficiency, Gap has started a bold new goal for all of its tier 1 suppliers approximately 800 factories in about 30 countries to make the transition from a cash-based system to digital payments by 2020.
More than 60 percent of Gap’s supplier factories already provide digital payments methods, such as online transfers to bank accounts or mobile wallets. The new goal will help scale this progress across the company’s global supply chain and positively impact the lives of more than one million garment workers.
According to the company, women make up about 80 percent of the world’s garment industry workforce but often live in a cash-only environment and lack access to formal financial services. Electronic wage payment methods have the benefit of drawing previously unbanked workers into the formal financial system, allowing women greater control over their finances and a safer way to save, send money, and invest. Suppliers benefit from increased efficiency and speed. All parties also benefit from increased accountability, transparency, and security.
The company’s focus on promoting an inclusive digital payment ecosystem is the latest move by Gap to partner with suppliers to improve the livelihoods of the garment workers who make its clothing. The company’s Supplier Sustainability team continues to move beyond an “assess and remediate” model to a more innovative approach – with more cooperative, productive, and positive working environments as the end goal.
Gap is a leading global retailer offering clothing, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic and Athleta brands.
Euratex has launched a new strategic course to strengthen the voice of the European textile and apparel industry.
This will better reflect its members’ objectives and priorities which in addition to trade and industry policies encompass policy areas such as sustainability, innovation and skills.
Euratex is the European Apparel and Textile Confederation. It interacts with European policy institutions in Brussels as well as governmental bodies and partner organizations around the globe.
Over the last ten years the European textile and clothing industry, representing an annual turnover of over 171 billion euros, some 1,78,000 companies and 1.7 million workers, has been able to modernize and reinvent itself into a forward-looking, innovative and export-oriented sector.
Euratex’s member companies which are overwhelmingly small and medium-sized enterprises cover a broad industry cross-section in terms of product, market segment and geographical spread.
The EU-27 is the largest world market for textile and clothing products. Further, it is the second world exporter in textiles as well as in clothing.
The board of directors of Euratex has decided to undertake a comprehensive strategy review. This process will be concluded at the end of 2018 and will be led by three newly appointed policy directors, Isabelle Weiler (Trade and Industry), Lutz Walter (Innovation and Skills) and Mauro Scalia (Sustainable Businesses).
