FW
Nagpur-based Central Institute of Cotton Research (CICR) hopes to release nearly 15 varieties of desi cotton seeds in March next year. This may be pitched against Bt cotton. This year, CICR, the apex central government research agency for cotton, began trial cultivation of 15 indigenous varieties of cotton seeds, the results of which will be out by December. In April this year, US-based Monsanto, which makes genetically modified Bt seeds, had threatened to quit the Indian market. Then, CICR had informed the government that it is coming up with Indian varieties which can substitute for Bt cotton.
Trials are currently underway at various locations throughout the country. The seeds were recommended for specific regions depending on the suitability. The seeds have similar qualities as compared to Bt seeds in terms of staple length and other features, said a source.
The new varieties are expected to increase the seed choice for the cotton grower other than the genetically modified Bt cotton. The Indian variety could be available at much cheaper rates. At present, CICR offers seven varieties of indigenous cotton seeds and 5-6 types of American variety. The introduction of nearly 15 new Indian varsities will increase the choice for farmers, said a senior official at CICR.
Monsanto has withdrawn an application seeking approval for its next generation of genetically modified cotton seeds in India. This technological breakthrough would have potentially pushed up crop yields. Monsanto’s decision to withhold introducing the technology could hurt Indian cotton farmers. The new seed variety helps fight against weeds, which sap the cotton crop of vital nutrients and depress yields.
An earlier technology introduced by Monsanto and approved by India in 2006 helped transform India into the world's top producer and the second-largest exporter of the fiber as output jumped fourfold. But this technology is slowly becoming vulnerable to bollworms and, as any technology, has a limited shelf life.
Monsanto is the world's biggest seed maker and it is objecting to a proposal that would force it to share its technology with seed companies in India. The company is also at loggerheads with India over how much it can charge for its genetically modified cotton seeds, costing it tens of millions of dollars in lost revenue every year.
Monsanto also protested a decision that it should share its proprietary technology with its technology partner in India. More than 41 million GM cotton seed packets were sold last year, earning royalties of $97 million for Monsanto.
For the first quarter of the current fiscal Vardhman Textiles’ net profit has risen 23.5 per cent year-on-year, the company will maintain its operating margins around 18 to 22 per cent in FY17. Vardhman Textiles, based in Ludhiana, is one of India’s largest manufacturers of yarn. The company reported a subdued top line growth in the first quarter. Top line growth was two per cent. This was due to a decline in the price of yarn and fabrics, the two biggest business segments for the company, by almost four per cent. But efforts are being made to compensate by an increase in productivity. Profits were better mainly due to a reduction in depreciation and better results of its subsidiaries Vardhman Acrylics and Vardhman Yarns & Threads. In the subsidiaries sewing threads has shown better results. There has been a reduction in depreciation. There was a little bit of productivity improvement and therefore production was a little higher in yarn.
Vardhman which began operations in 1965 has diversified into yarn processing, weaving, sewing thread, fabric processing, acrylic fiber manufacturing and into special or alloy steels. Over the years the group has expanded its spinning capacities besides adding new businesses.
Organic Cotton Round Table (OCRT) is a global stakeholder platform that supports and brings together the organic cotton community to be inspired mobilized, and equipped to act. In 2012, after many years of steady growth, production of organic cotton began to decline. Yet demand for organic cotton fiber continued to grow. OCRT was incepted in response to the decline.
Growers, processors and vendors of organic cotton operate in a highly autonomous market environment. On one hand this autonomy allows independence and a market-driven approach to address sustainable development, but on the other hand there is no central structure to support the organic cotton community.
The primary objective of the OCRT is to find ways to collaborate in order to grow the sector, share best practices at every stage, build supportive partnerships, and improve supply and livelihood security. OCRT aims to eliminate the barriers to growth in organic cotton production and consequently enable the current growth in demand from consumers to be met and capitalized on.
Many individual efforts are being made to advance organic cotton, and the OCRT brings stakeholders together to grow the sector and create a result that is greater than the sum of its parts. The 2015 Organic Cotton Round Table was held in Mumbai. Almost 200 producers, manufacturers, brands, retailers, and support organizations came together to share news and views on organic cotton.
This year’s conference will be in Germany.
Leading fabric innovator, Nanotex that provides nanotechnology-based textile enhancements to apparel, home and commercial/residential interiors markets and Cotton Incorporated, the research and promotion company of US cotton producers together have launched Nanotex Dry Inside technology for cotton apparel. The patented technology aims to enable effective moisture transfer away from the skin, eliminating dampness and chaffing in 100 per cent cotton apparel while at the same time maintain the additional comfort aspects of garments made from natural fibre.
According to Nanotex, the processing technology enables cotton to effectively compete with synthetic fibre fabrications in the active and athleisure markets. Tests on the technology at the Laboratories of Cotton Incorporated, showed that Nanotex Dry Inside outperformed 100 per cent polyester and untreated cotton in one-way moisture transport and cling.
The technology applies an application to the back of the fabric allowing moisture to move away from the body through invisible channels. Once it moves from the inside to the outside of the garment, the moisture spreads and evaporates more easily leaving the wearer dry and comfortable without clogging the fabric weave or compromising the look, feel or breathability of the fabric.
Nanotex comprises has 11 products -- Resists Spills, Releases Stains, Neutralizer and Coolest Comfort, and includes important enhancement of the integration of a DNA marker to protect against counterfeiting. The brand has more than 100 manufacturer partners, including home textiles and contract and residential interiors markets besides branded apparel and outdoor gear.
Lenzing’s net profit has increased by 83.9 per cent in the first half year of 2016 compared to the first half year of 2015. Lenzing significantly increased revenue and profitability and substantially improved cash flow while continuing reduction of net debt. Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) improved by 54.3 per cent, boosting the EBITDA margin to 18.9 per cent compared to the prior-year level of 13.2 per cent. Earnings before interest and tax (EBIT) more than doubled. The EBIT margin increased to 12.5 per cent, up from 6.3 per cent in the previous year.
At largely unchanged production volumes, consolidated revenue rose by 8.3 percent as a consequence of higher fiber selling prices and an attractive product mix compared to the first half-year of 2015. Lenzing has a focus on profitable growth based on environmentally friendly specialty fibers. The company will expand its production capacities for specialty fibers.
The strong earnings figures for the first half of 2016 paired with the positive market environment reinforces the optimism of the Lenzing Group for the full year. Lenzing expects excellent business results in the financial year 2016 and consequently a substantial earnings improvement compared to the financial year 2015.
EU clothing imports from China dropped by a considerable volume of 9.9 per cent in the first three months of this year compared to that of last year, reveals Textiles Intelligence in a recent report. This drop follows a 12.5 per cent decline in the whole of 2015 which dragged imports down to the lowest level since 2006. The decline in both periods represented the steepest falls among EU’s 10 largest clothing suppliers. As a result, China’s share of EU clothing imports from all sources declined in both periods from 43.3 per cent in 2014 to just 35.1 per cent in the first three months of 2016.
Going by facts, China remained by far EU’s largest clothing supplier in the first three months of 2016 but a number of other countries gained market share. On the other hand, EU clothing imports from Bangladesh rose 4.2 per cent in the whole of 2015. This showed a rise of 8 per cent in the first three months of this year. As a result, Bangladesh’s share of EU clothing imports from all sources in the latter period reached 24.6 per cent.
During the first three months of this year, the average price of EU clothing imports from China fell by 0.3 per cent while the average prices of imports from Bangladesh, Cambodia, Myanmar and Vietnam rose noticeably.
On a few beaches in France, wearing a certain type of swimsuit might get one in trouble, with the police keeping a strict eye. And this seems to be the reason why authorities in many French towns have banned burkini which covers the entire body except the hands, feet and face. Women caught wearing a burkini in Cannes must pay a fine of $42.
And what proves the point is that only last week, a woman wearing a burkini in Nice was forced by armed police officers to remove her burkini in front of other beach goers. But the creator of the garment says bans haven’t stopped women from buying it.
Aheda Zanetti, 49, has been credited as the inventor of the burkini (a ‘burqa,’ and a ‘bikini’). She designed the swimsuit back in 2004 to fill a gap in the marketplace. But the burkini has not been kindly received on France’s beaches. This is not the country’s first foray into banning Muslim garments. Way back in 2004, headscarves were outlawed in public schools while in 2010, wearing of full-face veils known as niqabs wasn’t allowed in all public places.
Zanetti believes the bans misunderstand the entire point of the burkini. It’s not meant to be a religious or political statement. Rather the burkini is all about a women’s freedom to choose her preferred beachwear, whether it’s a bikini, a burkini, or something in between.
"After a sharp rise in July, the benchmark prices for cotton showed a consistent and in some cases downward movement during the first half of August. While cotton prices continued to show little strength, in a way it kept costs down however, it also did not allow for pricing power down the pipeline. An US Department of Agriculture (US0D0A) reports shows spot prices averaged 72.06 cents per pound, down from 72.75 cents a week earlier but up from 60.92 cents reported the corresponding period a year ago"
After a sharp rise in July, the benchmark prices for cotton showed a consistent and in some cases downward movement during the first half of August. While cotton prices continued to show little strength, in a way it kept costs down however, it also did not allow for pricing power down the pipeline. An US Department of Agriculture (USDA) reports shows spot prices averaged 72.06 cents per pound, down from 72.75 cents a week earlier but up from 60.92 cents reported the corresponding period a year ago. Values for the December New York futures contract climbed to levels over 75 cents per pound in early August, but have since retreated to values below 71 cents per pound. The A Index followed a nearly identical pattern, with values climbing above 85 cents per pound in early August and then decreasing to levels below 82 cents per pound. The China Cotton Index also recorded slight decline in August as compared to July as in international value terms it slides to $ 1.01 a pound from $1.05 a pound in late July. The trends were noticed to be similar in markets like India and Pakistan.
US cotton production hit by inconsistent weather
As per a report released by Cotton Incorporated in August, changes in prices was primarily influence by extreme weather conditions over most of the US cotton belt for much of the past month. In West Texas, there were concerns about yield due to no irrigation virtually and series of storms kept the region under lash. The weather has also been a major influence affecting Indian prices. With a late onset of monsoon, there were concerns Indian acres would be driven lower and yields might suffer. However, timely arrival of monsoon in certain key parts of the country accelerated cotton planting.
Downward cotton price yields mixed market results
Downward cotton prices have mixed results for fabric firms and apparel manufacturers heavily seeded in cotton use. The International Textile Group recorded a 6.9 per cent increase in gross profit to $24.9 million in the second quarter due to by lower raw material and energy costs. The parent company of Cone Denim and Burlington Worldwide, also revealed lower selling prices in denim due to lower cotton prices leading to a 5.7 per cent decrease in consolidated net sales to $148.4 million. Similarly, Gildan Activewear also registered a fall in its net income in the second quarter as sales decreased 3.5 per cent to $688.9 million, owing to lower raw material and other input costs, and manufacturing cost savings.
As per Cotton Inc’s latest report in spite of a lot of cotton in the world, the process of working off excess built up in the wake of the 2010-11 price spike has made progress. The latest figures indicate that stocks at the end of the 2016-17 crop year will be 22.5 million bales lower than they were at the end of the 2014-15 season.
India's textile sector managed to grow approximately one per cent in financial year ’16. This stands out in comparison to a five per cent slump in the global textile market in the same period. And this growth also needs to be looked at in conjunction with lower fiber prices in financial year 2016, adjusted for which the growth in India’s apparel export quantity is estimated at three to four per cent.
Demand in the global market across sectors remains muted amid a slowdown. Though India has a marginal share of four per cent in global apparel trade, India overtook Germany in 2015 to become the fifth largest apparel exporter after China, Bangladesh, Italy, and Vietnam. In contrast to apparel exporters, domestic players continued to post steady revenue growth in financial year ’16, though it was moderate compared to the healthy growth seen in financial years 2012 and 2013.
Fabric production in the country remained flat in financial year 2016. Despite the volatility in cotton prices, as also the spread between cotton yarn and texturized filament yarn, the share of cotton fabric in India’s total fabric production has demonstrated a secular growth over the years. The aggregate revenue of 10 large fabric manufacturers in India grew by six per cent in financial year 2016.
