FW
Non-compliance with many conventions of European Union (EU) related to human rights and environment may cause, Pakistan to lose its GSP Plus status. Pakistan’s compliance of its conventions and imports are being reviewed by the EU and its officials are visiting Pakistani factories, without notifying the government. The EU Ambassador had a meeting with businessmen at Karachi Chamber of Commerce and Industry KCCI.
A decline of orders from Pakistan is what prompted this move. Muhammad Ibrahim Kasumbi, acting president KCCI recently stated that trade facilitation would discontinue if the EU faces more compliance issues. In January, the EU would be having a review meeting.
In December 2013, Pakistan was granted GSP Plus status, which opened doors for huge opportunities. However, the country failed in getting full duty benefits for free exports. As per the status available until 2017, the country gets free market access to 96 per cent of the items exported to the EU markets. Provided that Pakistan implements 27 conventions of the EU. The government lacked in fulfilling the conventions, though the private sector was fulfilling many of them, said Kasumbi. He added that textile sector exports to the EU are about 80 per cent and comply with around 80 per cent conventions.
Capital punishment is prohibited according to the EU conventions, yet Pakistan has resumed it. However, continuity in exports show that EU may have ignored it, as Pakistan is fighting with terrorists who could emerge again if not punished. Besides, Pakistan has not utilised 10 per cent of its potential of exports to the EU.
Foreign buyers are increasingly sourcing Bangladesh-made terry towel products because of cheap labour, utility cost and duty-free access to the EU, among others. Experts say, this has helped the industry flourish over the last three decades. The industry though, could not flourish well mainly because of the absence of government policy support, they added. The industry has seen a total of Tk 55 billion investments during the period.
If gas supply, lower bank interest rates and incentives are ensured to retain its competitiveness, the country can earn $10 to $12 billion from export of home textile and terry towel products within a couple of years, feel industry experts. More than 100 units established in the last three decades produce both home textile and terry towel products. As per Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA), out of these about 71 are terry towel producing units that have 6,500 looms and production capacity of 135 million kilograms.
The country produces various types of towels like towel, bar mop, hand towel, bath towel, dish, glass, kitchen, shop towel, kitchen gloves, dish clothes, surgical towel and draw sheet. Khandkar Abdul Muktadir, Chairman, BTTLMEA said that these products are a must for household use, tourism and hospitality industries.
He added buyers are looking for an alternative to China where the production cost has increased significantly mainly due to higher labour cost. Thus, the sub-sector of the home textile industry has a huge potential. Besides, global tourism and hospitality industries are growing, and so, the demand for such products is also on the rise, Muktadir stated.
Yuan devaluation has sharpened the competitive advantage of Chinese products. This is worrying Indian manufacturers who import polyester yarn as a textile raw material from China. India imports a portion of its requirement from China and South Asian nations such as Malaysia and Indonesia. With currency devaluation, fears of dumping have now surfaced.
China on August 11 took monetary policy measures that resulted in its currency losing strength by about two per cent and more on consecutive days, triggering a rout in the global stock markets and improving prospects of Chinese goods in the global market, including India. The Indian market for polyester yarn hovers in the range of 1.8 billion kg, with a value of approximately Rs 2.16 lakh crores. The country’s largest yarn markets are in Ludhiana, Punjab, and Malegaon in Maharashtra. The Chinese yuan devaluation is meant to boost sagging exports.
Chinese polyester yarn is now increasingly made from recycling poly-ethylene terephtha (PET) bottles. A large portion of Chinese knitters and weavers has adopted recycling PET bottles. With more efficiency refinements, the quality of PET bottle yarn is slowly beginning to compare favorably with India’s virgin yarn produce.
Major clothing retailers sourcing from Myanmar have welcomed the minimum wages for the garment industry. Labor costs in Myanmar are ranked second lowest in the world. More than one new garment factory opened every week in the country last year, amid a wave of new orders from international players that has tripled export revenues from clothing in three years. Though Myanmar is blighted with extreme social and compliance risks such as poor working conditions, child labor and human trafficking, many investors see the country’s modest reforms as a move in the right direction compared to other major garment producing countries in the region.
The decision to set a minimum wage in Myanmar came after 13 companies including M&S, Primark and H&M indicated their support for such a move. The reasoning is that this would make the country more attractive to foreign investors. new minimum monthly pay for workers means Myanmar will retain a competitive advantage over rival garment manufacturing states such as Vietnam and Cambodia where the monthly minimum wage is higher. However, many factory workers say they are forced to work overtime to meet production targets and that they are not paid for extra work.
Mount Vernon FR and Carhartt, America’s premium work wear brand since 1889, have teamed up to launch the newest advancement in flame resistant (FR) clothing called the Carhartt Flame Resistant Rugged Flex Jean. The product combines FlexTex FR denim from Mount Vernon FR with Carhartt’s Rugged Flex stretch technology to provide comfort and protection in any work environment, while offering unique flexibility for maximum range of motion.
Known for manufacturing high-quality protective fabric, Mount Vernon FR is also leading the way in developing FR fabrics with added comfort in mind, such as Crossbill Flex FR, available exclusively with Carhartt. The Carhartt FR Rugged Flex Jean utilizes fabric with an elastometric fibre that has bilateral flex, allowing it to elongate sideways and diagonally, eliminating any sagging or bagging, and making reaching and bending easier for workers.
Carhartt FR Rugged Flex Jeans feature an arc-resistant button closure, a brass zipper fly with Nomex FR zipper tape, and Carhartt hallmarks like triple-stitched main seams for added strength and durability. The jeans are available in deep indigo wash, a premium shade that transitions seamlessly on and off the job in order to meet every work and lifestyle need. Finally, the finished jeans are mechanically washed to create a soft finish, ensuring that the wearer experiences the most comfortable fit.
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China’s production of extra-long staple (ELS) cotton could be three times last year's crop in 2015-16. Output could be as much as 1,80,000 tons, triple of last year's 60,000 tons. ELS cotton or pima cotton is top quality cotton and makes up a tiny portion of total cotton consumption. It is mainly used by luxury shirt brands and in high end bed sheets. Chinese mills consume most of the fiber but local output declined under a government stockpiling policy that paid generous prices to farmers for regular cotton and offered no incentive to growers of higher quality ELS.
ELS premium over regular cotton has risen significantly in recent years after drought and competing crops in California reduced production in the world’s top exporter. After China abandoned stockpiling last year, and offered new subsidies connected to market prices, farmers began to plant significantly more ELS. China’s subsidy for the fiber is 1.3 times the regular cotton subsidy.
A smaller US crop will do little to support prices, given China’s surge in output. Chinese traders are not interested in US imports, since they have expectations of lower Chinese prices. However, China will buy some US pima for certain types of yarn.
Partnering growth has been Birla Cellulose’s focus and to support this vision, the company has decided to partner LAPF members across the country. Liva was represented by three LAPF partners during the 4th edition of Galleria Intima, India’s largest intimate apparel show.
This initiative by Intimate Apparel Association of India (IAAI) proved to be an excellent opportunity for meaningful collaborations with brand owners, senior management of reputed brands, purchasing heads, product merchandisers of buying houses, importers and independent designers resulting in ideation and exchange of thoughts. Three reputed brands in the intimate apparel sector were represented at the Liva stall.
A leader in intimate apparel segment, Rupa showcased women’s wear brand, Femora’s zero per cent viscose and modal range of camisoles and leggings. An innovative leader in thermal category, Neva showcased their latest innovation in amicor viscose, acrylic-viscose, cotton modal and cotton viscose, whereas ARKAP Knits, Mumbai partnered leading retail brands through their innovative range of knitted fabrics like 100 percent viscose, modal, cotton modal, cotton viscose and melanges.
As Aseem Doda, Vice President-Hub Marketing, Birla Cellulose explained, “Modern India is waking up to and loving the benefits that a perfect innerwear can bring to their lifestyles. Liva innerwear has been appreciated by consumers and we are working towards collaborating with leading intimate apparel brands.”
In Srikakulam district of Andhra Pradesh, the Union Ministry of Textiles’ skill development programme is proving to be a success. Under this programme, training is imparted to women in operation of electronic sewing machines, and these machines are expected to double their income with less physical effort.
Reputed textile companies located in Karnataka and Tamil Nadu hired several women from rural areas of Srikakulam district with enhancement of skills. This is all because of the initiative of the Union government through various local agencies.
Savvana Umamaheswari, Founder, Gayatri Women Association for National Integration and Social Service, said women’s empowerment had become a reality with training programs sponsored by the Union government. She stated that as, Srikakulam women were good at operating electronic sewing machines, many textile companies preferred to hire them. Also, since they are hard working, it has helped them earn more— up to Rs 15, 000 per month. In the last one year, around 100 candidates bagged jobs with a decent income, some even started their own shops.
Besides, many women felt that by investing up to Rs 25, 000 on each machine, they could create self-employment. B Ramanamma, a resident of Srikakulam said that initially, they were afraid to operate the machines. However, the two-month training programme helped them learn its operation and new designs and now they feel confident about starting a tailoring centre and help other women to earn as well.
With the crash in China's markets and unfavourable policies of the government for sluggish business environment, cooperative textile mills in Maharashtra have decided to hold a one-day strike on September 1 to mark their protest. The decision was taken during a meeting of mill owners in Sangli. The executive director of Textile Federation of Maharashtra, S D Bauskar, said there is no option left other than shutting units in the face of low demand for yarn and some grave fundamental issues the industry has been subjected to due to the government’s apathy. Industry owners are incurring losses and shutting down is the only way to prevent this damage.
Stakeholders’ demands include subsidies on exports, a cut in power tariff and short-term loans, meeting their current requirement to pay wages. Experts, say, spinning mills are not the only ones facing the crisis, weaving and process houses are also going through this turbulent phase. Many power looms in Maharashtra are already closed for about a month or so.
Bauskar says the crisis may aggravate further if the state government does not pay any attention to the demands being made by the textile sector. The continuous indifference on the part of the government would only encourage the shift of the industry from Maharashtra to other states.
Bangladesh will probably remain the top garment sourcing destination for global retailers at least for the next five years. During this period, garment exports will grow 7 to 9 per cent year-on-year while India and Vietnam will be its nearest competitors. Some African countries are also coming up strongly in the global garment business. But China remains the undisputed leader in garment exports, with eight times the dollar volume of exports than the number two Asian apparel sourcing country, Bangladesh. Vietnam and India are tied for the third place.
Though Chinese apparel production has fallen since 2010, the dominance of global apparel sourcing market, the mix change toward Chinese consumers, and the substantial size of its growing middle class will keep China the apparel production powerhouse for the foreseeable future. Many of China’s garment makers are looking to open facilities in Cambodia, Vietnam and Myanmar as well as in other countries.
As for Africa, many governments in the region are using the textile and apparel industries as tools for industrialisation and economic development. By 2035, the working population in the region is expected to be the same as China’s today. Right now the top 10 garment exporting nations in sub-Saharan Africa have only a 0.55 per cent share of global apparel exports.
