FW
In the Tirupur knitwear cluster, the recent High Court order on minimum wages announced in October 2014 for the tailoring industry has evoked mixed reactions. According to Tirupur Exporters’ Association president A Sakthivel, the court order is not applicable to hosiery industry but only for the tailoring industry.
Substantiating Sakthivel’s views, industry sources say another order by Madras High Court on March 17 this year, based on a petition by a Dindigul textile unit that has a production base in Tirupur, the court had mentioned hosiery and tailoring industries were different. CITU state secretary M Chandran meanwhile, said the court order should be implemented in categories of employees where the minimum wages given were found lower than in the October 10, 2014, order.
For example, tailors in Tirupur cluster are getting higher wages in the tripartite wage agreement signed by textile associations, trade unions and labour department compared to the scales in the 2014 order. But the scales of helpers and sweepers in units are quoted higher in the 2014 order. In such cases, arrears should be given, said Chandran.
However, the GO on October 10, 2014, issued by Labour department, on ‘Revision of minimum rates of wages for employment in tailoring industry’; had given room for confusion even then as the government had constituted minimum wages committee for employment in hosiery industry.
In a bid to nurture premium fashion and lifestyle brands of the country, the South Korean Ministry of Trade, Industry and Energy (MOTIE) has announced plans to invest around $27 million next year. Doubling the R&D budget and supporting the whole process, right from design to marketing for exports to other countries across the globe for seven categories which include furniture, bags, sports and leisure, accounts for an effort to boost exports of consumption goods.
In order to raise added value to fashion and apparel, the Korean Government will lend a helping hand to young designers in setting up their own businesses and will choose 200 promising designers and help them grow their international business by 2020. The Government also plans to promote new distribution platforms to assist 300 brands in showcasing their products at overseas online stores.
In line with its objective of diversifying trade beyond the European Union and the US, the Indian government plans to examine the feasibility of a free trade agreement (FTA) with Mexico. The North American country holds opportunities for India to expand trade and a visiting trade delegation has already been promised increased opportunities for sectors, including dairy, pharmaceuticals and telecom outside a free trade pact.
The Commerce Secretary recently led a trade delegation to Mexico including representatives from industries such as dairy, telecom, tyre manufacturers, pharmaceuticals and IT. After a series of productive meetings with both private industry and government agencies, it was gathered that there was a lot of potential to expand.
Way back in 2012, India had looked at a possible free trade pact with Mexico but it had not seemed a good idea because of limited trade at that time. While India’s total exports to Americas declined more than 10 per cent in 2015-16 to $52.882 billion and exports to the US declined 4.57 per cent to $45.3 billion, exports to Mexico, at $2.86 billion, remained unchanged.
India has been ranked the fourth most riskiest country in the world to do business in. Syria has been ranked the riskiest and occupies the top spot. Yemen was ranked number two, Libya ranked three, India at four, Burundi at five, Bangladesh at six, Mexico at seven, Myanmar at eight, Portuguese Territories at nine and Nigeria at 10.
This means Bangladesh is seen as comparatively less risky than India. The report offers investors in-depth analysis on Bangladesh’s intractable political crisis, the recent terror attacks and the deleterious impact unrest is having on supply chains.
Once Pakistan used to dominate the top 10-chart but this time the South Asian country has stayed out. The exercise has been undertaken by the European risk analysis firm Verisk Maplecroft, which has ranked almost 200 countries in terms of their exposure to protests, mass demonstrations, ethnic or religious violence.
France ranks 16th behind Argentina and barely in front of Afghanistan and Mali a former colony. It is the only European country in the top 20 and considered high risk. Greece, which almost got the boot from the euro, came in 25th. Germany and the UK are still considered low risk.
In a few days before there could be a rally in cotton prices, farmers from Texas can expect prices of the commodity to range between 65 cents and 78 cents over the next few months, according to a Texas A&M AgriLife Extension Service cotton economist at College Station.
Overall, there is a weak demand. Over the last 30 days, Texas cotton crop has been hit hard with excessive hot, dry weather. Harvest projections for Texas are 7 million bales on the higher side. The low side would be the five-year average for Texas excluding the 2011 result of about 5.5 million bales. Blacklands region has a few areas that could surprise a lot of folks once harvest activities begin in another month. Harvest activity in South Central Texas will begin in another 30 days or so. Timely rains will help boost yields leading to harvest.
Bangladesh’s Ministry of Jute and Textile has sent a letter to the Prime Minister’s Office, and the power, energy and mineral resources ministry requesting them not to increase gas price for captive power generation for textile industries. The decision came from an inter-ministerial meeting presided over by state minister for jute and textile Mirza Azam. In the meeting textile mill owners said that the proposed hike in gas price by 130 per cent to Tk 19.26 per unit from existing Tk 8.36 per unit would make the industry uncompetitive leading to loss of exports, closure of mills, unemployment and fall of foreign exchange earnings and retention.
Bangladesh’s textile sector has been passing through a tough time due to slow global economy, Britain’s exit from the Eau and the recent terror attack. Under these circumstances, if the government increases gas tariff, textile sector will lose its competitiveness and the country will have to depend on export for yarn and fabric, BTMA president Tapan Chowdhury said. He said that the proposal to increase gas price for the captive power within a year was not acceptable. Bangladesh government increased the price of gas for captive power by 100 per cent to Tk 8.36 per unit from Tk 4.18 per unit on September 2015.
Affected by sluggish economic recovery in the country's single-largest destination for overseas sales, exports from Bangladesh to the United States saw the momentum slowing down in the first half of the calendar year compared to the year-earlier, reveals a new study. The study, conducted by the United States Fashion Industry Association (USFIA), also revealed that the US-based fashion companies are more cautious about sourcing goods from Bangladesh.
Bangladesh roped in $2.84 billion from the US marking a 1.33 per cent growth in the January to June period this year compared to the corresponding period last year, the data from Office of Textiles and Apparel (OTEXA) affiliated with the US Department of Commerce indicated. Export earnings grew by 4.14 per cent during the first quarter of 2016, the data revealed. Out of the total receipts, the readymade garment (RMG) fetched $2.72 billion in the same period.
On the other hand, Chinese apparel exports witnessed negative growth of 5.20 per cent to $ 11.95 billion in the first half of this year. Meanwhile, garment exports from Vietnam grew by 3.24 per cent to $5.10 billion and India's slight 0.86 per cent to $2.02 billion during the same period.
The study on "2016 Fashion Industry Benchmarking Study," jointly conducted by USFIA and the University of Delaware, was launched in June last. It surveyed 30 executives from the US based fashion companies between March 2016 and April 2016.
FESPA Mexico scheduled from August 18 to 20 in Mexico City will display new technologies in wide format, digital and screen print, garment decoration, signage, software and consumables. For instance, Bordeaux Digital will showcase a newly developed EDEN PG pigment suitable for printing processes on various fabrics with textile applications in fashion, home textiles, upholstery, drapery and soft. Roland DGA will display the new TrueVIS VG signage. printer/cutter with four improved FlexFire heads and a new eco-solvent printer, the Roland DG SOLJET EJ-640 and Texart XT-640 and RT-640 textile digital printers.
Fassi Digital will demonstrate its dye-sublimation Mogk Calandra MTC-1800 which sublimates at a speed of 6 metres per minute. The MHM SPM 5000, the latest screen printing model will display high speed setup along with increased print production rates and a direct-to-garment printer with industrial speeds of up to 950 metres per hour. While Caldera will present its latest TextilePro software edition designed to make production of decorative or industrial products quick, precise and profitable.
The show will see 160 manufacturers and suppliers exhibiting over 12,000 sq. mt. of space at which over mainly 9,000 industry professionals are expected to attend.
Recognising the progress made in line with the Sustainability Compact, the European Commission has asked the Bangladesh government to ensure workers' rights in the country's readymade garment sector.
The commission also suggested in a new report addressing the concerns noted by the ILO Committee on Application of Standards regarding the freedom of association and protection of rights to organise as a matter of immediate priority.
The European Commission recently released its third annual report on the progress achieved in the Bangladeshi garment sector through the Sustainability Compact for Bangladesh-an international response to the 2013 tragic collapse of the Rana Plaza factory complex.
The report reflects the views of the European Commission, based on information from a number of sources, including the Compact partners, in particular their latest follow-up meeting held in Dhaka on January 18 as well as Bangladeshi and international private sector and civil society, including the International Trade Union Confederation (ITUC) and Human Rights Watch.
The European Commission has released its third annual report on the progress achieved in the Bangladeshi garment sector through its Sustainability Compact for Bangladesh – an international response to the 2013 tragic collapse of the Rana Plaza factory complex. Since the launch of the initiative, the Compact has contributed to tangible improvements in workplace safety. However, workers' rights remains a challenging area with a particular urgency on freedom of association, says the report.
While some improvements can be noticed, sizeable efforts still need to be made to ensure that real change takes place and is sustained over the long term, according to the report. As regards legislative improvements, the EU expects further development of labour-related legislation and enforcement of the existing rules in full compliance with the fundamental rights to freedom of association and collective bargaining, as defined by the International Labour Organisation (ILO).
On administrative aspects, the report points at the need for a new strategy for safety inspections and re-mediation, ensuring effective coordination between key Bangladeshi regulators with competences in that area. The EU also calls for further reinforcement of administrative capacities through recruitment and training of inspectors and for a full transparency as regards the outcomes of factory inspections.
Further to that, the EU report underlines the need for continuous education, training and capacity building on issues such as labour rights, and occupational safety and health.
The report, along with recommendations also formulates the wish for a strong longer-term engagement of international private companies involved in business operations in Bangladesh, which have been key in bringing progress on the ground over the last years.
