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Textile exports in Pakistan in June 2018 declined 2 per cent despite government’s efforts to boost shipments in an attempt to reduce trade deficit and rein in the runaway current account deficit. This fall in textile exports, which accounts for around 60 per cent of Pakistan’s total overseas sales, is attributed to rise in cotton prices this year and heavy sales in June last year.
Textile exports were recorded at $1.19 billion in June 2018, down 2 per cent on a year-on-year basis compared to $1.22 billion worth of shipments in the same month of 2017. This decline was primarily due to a significantly higher cotton price that went up in the past one year from around Rs 6,500 per maund (37.324kg) to Rs 9,500.
Cotton price have increased 22 per cent in the world market, but in Pakistan, it has gone up nearly 40 per cent due to rupee depreciation during the last year.
Taiwan and Myanmar are looking to boost bilateral economic ties. Taiwan will support Myanmar with capacity building and technical assistance in core sectors including textile and food processing.
Technology transfer from Taiwan is the main priority as Myanmar plans to expand its manufacturing capacity in export-oriented sectors like garments and textiles. Taiwan has advanced technology in agro-based food products and by using the latest technology manages to produce a wide range of value-added products. Taiwan has successfully transformed itself from an agricultural society into an industrial one with incessant efforts by both the public and private sectors. Both countries have agreed to prioritise two sectors: textiles and food processing. The cooperation would be strengthened through a number of training programs.
Taiwanese investors’ interest in Myanmar is also on the rise. This will not only stimulate the industrial upgrading of Myanmar but also extend the market for Taiwan’s industry, achieving mutual benefits on a win-win basis.
Bilateral trade volume has increased five-fold over the past three years. Vegetables and textile products are the top two categories that Taiwan imports from Myanmar. Mostly, Myanmar imports machinery, mechanical and electrical products from Taiwan. The training programs for workers, supervisors and technical staff at factories could yield tangible benefits for Myanmar’s garment industry.
With the US-China trade war gaining momentum, apparel manufacturing countries on the direct line of China-US fire are looking for alternative sourcing options. Central America for instance is emerging as a favorable option as companies look to accommodate speed to market and dodge trade bullets. In El Salvador in particular, factories all along the synthetic supply chain collaborate in a synthetic cluster to give customers the kind of vertical sourcing experience that keeps things quick and efficient. Each link in the synthetic cluster—from yarn to garment—is within one hour’s drive from the other, which also keeps the country’s carbon footprint down. Besides, Central America enjoys a duty free relationship with the United States under the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR).
In Bangladesh, manufacturers are rallying around to deliver quicker turns and improved sustainability as value adds for brands and retailers sourcing there. The country plans to use the blockchain technology that gives Bangladesh an advantage in traceability and transparency—and the country is looking into ways to incorporate it into supply chains.
Marci Zaroff, founder and CEO of Metawear, which operates one of its key international manufacturing platforms in India, believes that the country has incredible verticality, an astronomical workforce and opportunities in sustainability—particularly where cotton is concerned.
Though there’s been a challenge to secure organic cotton seeds in the country, and the weather has posed problems for the crop, the government is getting involved in sustainability as a competitive offering for the country.
For German sportswear maker Puma, second quarter sales rose a currency-adjusted 15 per cent, slowing from a 21 per cent jump in the first quarter. All regions grew fast, with footwear the main growth driver, but sales of apparel and accessories also increased at double-digit rates, although the strength of the euro dented reported sales.
The launch of new basketball products and partnerships with players were well received by retailers and basketball fans. Rap mogul Jay-Z will be Puma’s creative director of basketball, which it sees as critical to helping its position in the North American market, already bolstered by deals with stars like Rihanna and Selena Gomez.
Puma, which still lags German rival Adidas and market leader Nike, has revived its fortunes in recent years by spending heavily on sponsoring top soccer teams and partnering with celebrities such as singer Rihanna. That had raised analyst expectations that it might lift its earnings outlook for the year again.
However, Puma left its operating profit target at between 310 million euros and 330 million euros even as it lifted its forecast for a currency-adjusted rise in sales to 12 per cent to 14 per cent from 10 per cent to 12 per cent.
India has taken measures to address the problems of the textile industry. The increase in import duty on 76 textile items from 10 to 20 per cent and GST reduction on carpets and handicraft items have given a big relief to domestic textile, carpet and handicraft manufacturers.
The garment and carpet industry was under immense pressure after implementation of GST. After GST, the substantial drop in import duty encouraged cheaper imports. Total imports of textiles and garments increased in 2017-18 by 16 per cent compared to 2016-17. Total import of garments alone increased 30 per cent in 2017-18 compared to 2016-17.
Imports from Bangladesh are an area of concern for the industry. Due to full exemption from basic customs duty for Bangladesh, and lack of a regional cumulation clause under the treaty, third countries' raw material and fabrics get benefitted indirectly. Cheaper fabrics from third countries enter India through Bangladesh. Imports from Bangladesh increased 44 per cent in 2017-18. The industry sees the need to increase import duty on manmade fiber spun yarn as import of manmade fiber yarn-based fabrics have also increased sharply after GST.
The Cotton Textiles Export Promotion Council (TEXPROCIL) has stated the decisions taken by the GST Council will promote growth of the textiles sector. Texprocil Chairman Ujwal Lahoti says a very important decision taken by the GST Council is to deliver refund of accumulated input tax credit on account of the upturned duty structure to the fabrics manufacturers.
This will lead to decrease in prices of fabrics which in turn will make Made ups and garments competitive in the export markets. The GST Council has reduced GST rates on few textiles items like chenille fabrics , handmade lace, hand-woven tapestries, hand-made braids and ornamental trimming in the piece, handmade carpets and other handmade textile floor coverings etc, from 12 to 5 per cent.
The GST reduction will give a boost to SME sector as these products are mainly manufactured in this sector.
The European Commission is drawing up a list of $20 billion worth of US goods to impose duties if Washington imposes tariffs on imported cars. In response to the US metals tariffs, the EU has already imposed its own import duties on €2.8 billion ($3.3 billion) worth of US goods, including products like bourbon and motorcycles. The next potential round of EU tariffs would target €9 billion worth of general goods such as agricultural products, machinery, high-tech products and other things.
EU budget commissioner Guenther Oettinger suggested the EU would be ready to discuss mutual tariff cuts provided the Washington lifts punitive metals tariffs first. The two parties could try to forge a lighter version of the planned US-European trade deal known as the Transatlantic Trade and Investment Partnership (TTIP).
Panelists at Texworld USA recently discussed the importance of using preferred fibres. The discussion was divided into four areas: whether the fiber could be traced, if there’s a standard or certification under which it was produced, if a Life Cycle Assessment (LCA) or other third-party assessment was conducted, and whether choosing that fiber can have a positive environmental or social impact.
According to Karla Magruder, Founder and President of Fabrikology International, the traceability of materials can incorporate several standards but the one that’s most used is the Global Recycle Standard, which traces material origin. Organisations like Textile Exchange also have standards that trace where the fiber comes from.
Malvina Hoxha, Manager - Business Development for apparel and knits at Lenzing Fibers, noted that Lenzing’s fibers Tencel Lyocell and Refibra offer fiber identification, and its EcoVera viscose introduced in 2017 is the first viscose fiber that can be traced from fiber to yarn or fabric to end product. Depending on what it is and what your company needs, what’s important to it, you need to be looking at standards that will help you deliver that to your custome.
On LCA or what has become known as “scoring,” Sasso said Buhler concentrates on carbon footprint. This is mainly how much energy is consumed when producing a yarn by investing in the most energy efficient equipment to reduce the carbon footprint, as well as the water and chemicals used. As for having an environmental or social impact, Magrudar noted that there are several methods of making recycled polyester, for example, including mechanical and chemical, and each has its own environmental impacts.
Vidalia Denim will set up a denim production centre in Vidalia, Louisiana. The 900,000 sq . ft. center will produce 15 million yards of denim annually once it commences full commercial operations during the first quarter of 2019. The mill will specialise in lighter fashion weights with an emphasis on stretch and dual core stretch denim.
Vidalia Denim will use “next generation” indigo dye technology that uses less water and manages its power usage more efficiently than any other denim mill in North America. The slasher dyeing technology from Turkey allows for filtration and reuse of process water reducing total water usage by more than 60 percent of a legacy mill. Discharge water will exceed U.S. and EU standards for clean water discharge. Additionally, more than half of the mill’s energy needs will be met from renewable sources.
The company will also use e3 sustainable cotton for its operations. This cotton will be sourced from across the U.S. farm belt from various farmers enrolled in the e3 sustainable cotton program.
The Yamuna Expressway Industrial Development Authority (YEIDA) will set up a ‘textile park’ near the Jewar airport in Greater Noida. The authority has agreed to allot a 200-acre land to 100 textile businessmen for setting up the park. The textile park will give a boost to the industry. It will create nearly 5 lakh jobs; 90 per cent of these employees will be women. The Jewar international airport will help in the import and export of goods
The Yamuna Authority issued a list of 240 units for the park. The industries include those for textiles, telecommunications, X-ray machines, air-conditioning, copper metal parts, cotton, cycle, milk testing and its products. In addition to this, if the authority receives any new and unique type non-polluting proposals, they may consider it for allotment.
The eligible entities could be individual, proprietorship firm, registered partnership firm, registered trust, registered society, private limited company, public limited company, government/semi-government undertaking/department, etc. The scheme is for allotment of industrial plot having an area above 4,000 sq. mt. only.
