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The International Finance Corporation (IFC) is helping Uzbekistan in environmentally and socially responsible cultivation of cotton. The goal of the project is to increase the efficiency of cotton production by implementing the best world practices and minimize the risk of using forced labor in the cotton sector.
In the first phase covering 2017-18, IFC is implementing a pilot program, which involves the development and testing of a system of standards for sustainable cotton production in select areas. After successful testing, the system will cover 3,000 farms and agribusinesses that produce cotton in these areas. In 2019-22, it is plans to expand the application of the system of standards throughout Uzbekistan.
IFC’s project on the development of the cotton sector in Uzbekistan is aimed at accelerating the transformation processes in Uzbekistan and increasing the role of the private sector in the country’s economy. The introduction of best practices in the production of cotton is also expected to provide an opportunity to increase the global competitiveness of Uzbek cotton and textile products.
Uzbekistan ranks sixth in the world in terms of cotton fiber production and fifth in exports. The country yearly grows about 3,500 tons of raw cotton and produces 1.1 million tons of cotton fiber.
Himatsingka a vertically integrated home textile major that manufactures bedding, bath, drapery and upholstery, terry towel and bed linen is looking to enhance its manufacturing facility. Work has begun on an ultra-fine count cotton spinning facility. This facility, with an installed capacity of 2,11,584 spindles, will meet the cotton yarn requirements of the sheeting division. This will be the world’s largest cotton spinning plant under one roof. The integrated bed linen manufacturing facility, integrated ultra-fine count cotton yarn facility, and the integrated terry towel facility (proposed) are all located at Hassan in Karnataka, where as the drapery & upholstery manufacturing facility is located at Doddaballapur, Karnataka.
Himatsingka’s retail and distribution network caters to over 7000 points of sale at the global level. Armed with a strong portfolio of brands (both licensed and owned), the group is focused on strengthening its intellectual property portfolio across key global markets.
The portfolio consists of the most respected fashion labels as well as technology-driven brands that have led the industry. The group has been the leader in the branded cotton, track and trace space.
In fiscal year ’17, revenues from brands crossed Rs 1,000 crores and stood at approximately Rs 1,200 crores. Manufacturing revenues saw significant growth during the latter half of the fiscal. Himatsingka hopes to further improve utilization levels in the sheeting division. The new cotton spinning facility may be commissioned in the third quarter of fiscal year 2018. This will give the group greater control on the value chain and enhanced integration levels.
Global yarn production rose 11 per cent in the Q2, led by a 12 per cent gain in Asia and an 11 per cent increase in Brazil. Global fabric production improved nearly nine per cent in the quarter, with a 10.4 per cent increase in Brazil, a 9.8 per cent gain in Asia and a 9.2 per cent hike in Africa. Overall global fabric output rose four per cent compared to the second quarter of 2016.
Yarn stocks fell one per cent in the quarter, as Asia, Europe and Brazil saw their yarn inventories increase 0.7 per cent, 2.3 per cent and 11.5 per cent. But the world average was driven down by a 12 per cent decrease of yarn stocks in Egypt. The stocks’ improvement of 13 per cent compared to the year-ago period included decline of 40 per cent in Brazil and three per cent in Europe, balanced by increases of ten per cent in Asia and 112 per cent in Egypt.
Worldwide fabric stocks rose 3.3 per cent in the period, driven by a 23 per cent increase in Brazil. Global fabric inventories in the quarter decreased eight per cent compared to a year earlier.
Estimates for the third quarter indicate a stable trend in both global yarn and fabric production.
After seeing a fall for three months in a row, readymade garment exports from India rose by 25 per cent in rupee terms and 30 per cent in dollar terms in September. The increase is attributed mainly to the upcoming Christmas season in western markets. The other factor is inventories piled up due to GST are now being cleared.
Of the total readymade garment exports, 52 per cent is woven and 48 per cent is knitwear. The sector started the year in April with 27.60 per cent growth in rupee terms and a 31.65 per cent increase in dollar terms. But in the following month growth in rupee terms was only 3.84 per cent.
Garment exports this year are expected to surpass last year’s total exports as, generally, exports tend to grow in the second half. January to March are the crucial months for readymade garment exports. Around 30 per cent to 40 per cent of exports have taken place during these three months in the last few years.
Customers are sourcing from India as a part of a de-risking strategy. Customers have also started asking for a reduction in price after the rupee started strengthening against the dollar. Exporters have been under enormous stress in the last few months due to uncertainty over the duty drawback scheme which was brought down from 7.7 per cent to two per cent. Exporters were also hit due to the reduction in ROSL to one per cent from 3.5 per cent earlier. In addition to that the prolonged confusion over GST rates on knitwear and textile garments also cast a shadow on exports and overall the industry lost five per cent growth in the first six months. Tirupur saw a marginal growth in the first six months to around Rs 13,000 crores as compared to Rs 12,550 crores in the same period last fiscal.
Continued dependence on imports of raw and auxiliary materials will hurt Vietnam’s textiles and garment industry. It will prevent the country from taking advantage of the various free trade agreements and blunt the industry’s competitive edge further and reduce the value added component.
By the end of last year, 99 per cent of the cotton used in the textile industry was imported, a year-on-year increase of two per cent in quantity and 2.5 per cent in value. Each year, Vietnam earns of billions of dollars from textile and garment exports but businesses make modest profits because the garment industry spends more than half of its earnings on importing raw materials.
The textile industry is knotted in the middle i.e. highly productive in terms of making yarn and final products but stunted in the production of fabric and other materials. With the industry’s annual growth rate at about eight per cent, by 2025 the amount of fabric needed will double to 18 billion meters, meaning, without further investment in domestic production, Vietnam will have to import 15 billion meters.
It’s necessary for domestic businesses to invest in the dyeing process, implement a solid human resource training strategy and focus heavily on building an integrated value chain between domestic producers.
"Like every other industry, textile and specifically cotton producers need to get tech savvy to become more efficient and profitable. In the US, Randy Norton, Director, University of Arizona’s Safford Agricultural Center (SAC), has been mulling over the possibility of tech intervention for sometime. Currently, he is researching on 38 cotton projects in the Grand Canyon State (mostly varietal trials) designed to evaluate inputs, reduce costs, protect the crop, and increase yields. During his work, he found out equipment is a major expense on cotton growers’ operations, including the infamous cotton picker."
Like every other industry, textile and specifically cotton producers need to get tech savvy to become more efficient and profitable. In the US, Randy Norton, Director, University of Arizona’s Safford Agricultural Center (SAC), has been mulling over the possibility of tech intervention for sometime. Currently, he is researching on 38 cotton projects in the Grand Canyon State (mostly varietal trials) designed to evaluate inputs, reduce costs, protect the crop, and increase yields. During his work, he found out equipment is a major expense on cotton growers’ operations, including the infamous cotton picker. Today’s price tag for a new round bale picker or a square bale module picker is in the $750,000 ballpark; which is exorbitantly high. With new pickers, you need just one or two people and one machine to harvest the crop. This allows the grower to accomplish multiple tasks in a single pass. It’s a tremendous cost savings for growers, Norton said.
Picker technology
Norton points out the latest pickers eliminate the need for multiple buggies and module builders to service one older standard picker and its fiber load, and the employees to operate it. New systems allow growers to focus their employees on more important and timely tasks. Another benefit of ‘all-in-one’ pickers is the operational speed. Older pickers traveled down cotton rows at a snail’s pace from 2 to 2.5 miles per hour (mph). Today’s pickers about double this with a 5 to 5.5 mph picking speed, covering more ground in less time, which saves the grower money. New picker benefits and other technology are changing the harvest landscape in Arizona and across other cotton-growing areas. With higher picker costs, more producers are shifting to custom harvested cotton. In southeastern Arizona’s Cochise County, about 75 per cent of the cotton is now custom harvested.
As far as crop protection is concerned, Arizona cotton farmers used to spray an average of 15-plus times per season to control a handful of different pests. Today, the average is less than two sprays per season. Norton added that today’s transgenic cottonseed technologies combined with specific targeted insecticides have really made insect control much more efficient today.
Water use
Advances in irrigation continue to improve water use efficiency in irrigated Arizona cotton. Norton estimates consumptive water use in cotton is about 40-45 inches per acre. With lower irrigation efficiencies, it may take up to 60-65 inches to meet the demand and also manage higher salinity levels in the soil. Cotton can withstand electrical conductivity in the soil up to 7-8 decisiemens per meter before you see yield decline. It’s a very salt tolerance crop. Different growing stages of the cotton plant are more sensitive to salt, including seedlings. To combat salt, many Arizona growers use alternate furrow irrigation to push salt across the seed row. In Buckeye located west of Phoenix, cotton is planted dry and then irrigated up every other row to push the salt line across the seed row.
Most Arizona cotton fields use a furrow-flood type irrigation system with more than 50 per cent water efficiency, and reused tail water on another field. The maximum efficiency for this irrigation system is about 70 per cent. In sprinkler and drip systems, water use efficiency tops out at about 80-90 per cent efficiency. In the Coolidge area of Pinal County, many growers are flooding cotton on the flat without furrows. They can flash water more quickly on the field to gain higher water use efficiency.
Minya is the capital of the Minya governorate in Upper Egypt, located about 245 km South of Cairo. The minister of Investment and International Cooperation Sahar Nasr met members of the Council to discuss the possibility of involving the private sector in developing a free zone specialised in textile industries in Minya. Mohamed Kassem, Head of the Supreme Council for Textile Industries, said work is in progress to establish a partnership with a major Chinese company to develop this project which is looking at developing a free trade zone that will specialise in textile industries in Minya. He said the establishment of a company will commence, post issuance of approval to establish the zone.
A statement from the Ministry of Investment confirmed they are coordinating with the governor of Minya to complete all necessary project procedures to transform mainly Minya and Egypt, in general, into a regional hub for the textile industries in the Middle East and Africa.
Two industrial parks will open in Ethiopia by the end of this month. The Adama and the Dire Dawa industrial parks specialize in textile, apparel and agro processing. Both parks are close to the port of Djibouti, so it is expected that they will contribute to the facilitation of foreign trade for the country.
The parks are expected to create a total of 50,000 jobs on going operational. Anchor companies are being invited to enter the parks. As the parks are fitted with the provision of one stop services, companies that enter the parks will get services within the compounds.
The Hawassa industrial park in Ethiopia has attracted 18 leading global apparel and textile companies. It has the capacity to create employment opportunities for 60,000 people. As an eco-park, Hawassa is mostly powered by renewable electricity sources. The design and construction of Hawassa was conceived around energy and water conservation principles – including maximization of natural lightning and natural ventilation, fitting of low consumption bulbs, recycling of rain water, and solar powered LED street lights - making it Ethiopia’s first major eco-friendly development.
Ethiopia is Africa’s second most populous country, with an average GDP growth rate of 11 per cent for the past 11 years and a stable government with an ambitious 2025 vision to become Africa’s leader in light manufacturing.
The global technical textile market is likely to grow at a CAGR of 4.7 per cent over the next 10 years. By that time Asia-Pacific will be the world’s largest market for technical textiles. It has been estimated more than 50 per cent of global technical textile revenues will be earned by the Asia-Pacific region. The infrastructural development of this region increases the demand for technical textiles.
The meditech segment is projected to soar in the coming years because of its application in the areas of patient clothing and surgical equipment. By 2027 this segment is projected to show a rise of 4.9 per cent CAGR.
Demand for geotextiles is also increasing. These are being used in civil engineering, geotechnical and environmental design. Rise in civil engineering activities is also expected to promote the uptake of this material in the near future.
Companies like DuPont, Low and Boar, Ahlstrom, 3M, Avintiv, Arville Textiles, Milliken, Dickson-Constant, Baltex and Freudenberg are playing a leading role in the technical textile market. Possible chances of newcomers in the global market are likely to intensify the overall competition. Players are expected to focus on delivering customized solutions in the years to come to widen their consumer base.
For the period from July to September, the order index for Italian textile machinery manufacturers rose by six per cent compared to the same period in 2016. The primary foreign markets for Italian textile machinery showed a constant demand while growth has been ongoing for Italy’s domestic market, even if at a lower overall rhythm compared to the quarter from April to June.
Creativity, sustainable technology, reliability and quality are the characteristics which have made Italy a global leader in the manufacturing of textile machinery. Exports amount to more than 85 per cent of total sales. About 30 per cent of Italy’s revenue from the sale of textile machinery derives from the production of technical and innovative textiles. Demand for such products has consequently also driven a demand for ad hoc machinery specifically designed for this sector. The offering promoted by Italy’s textile machinery industry is thus expanding to the new demands of customers operating in this specific sector.
Italy is the world’s second largest producer of machinery for the textiles industry. In the production of machinery for tanning, and for the footwear and leather goods industry, Italy accounts for over 50 per cent of world production. The dynamic trend for Italy’s domestic market originates from a renewed climate of enhanced trust that is currently perceived in the textile sector. This has been triggered by the government’s commitment to enact a range of significant incentives for the country’s manufacturing system.
