FW
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.
India’s spun yarn exports in July 2016 plunged 36 per cent in volume terms and value terms. Indian spinners faced a fall in their margins and found it difficult to compete on the international market. Thus, Bangladesh became the largest importer of spun yarns from India in terms of value in July.
In July 2016, 83 countries imported spun yarn from India, with Bangladesh at the top, accounting for 18 per cent of the total value with imports rising 24 per cent year on year in terms of volume and 22 per cent in value. China ranked second in July and accounted for around 18 per cent of all spun yarn exported from India. Peru was the third largest importer of spun yarns. These three top importers together accounted for around 42 per cent of all spun yarns exported from India in July.
China has significantly reduced cotton yarn imports from India. In July, India’s cotton yarn exports to China plunged 75 per cent year on year, both in terms of shipment and value.
In 2016, China’s cotton yarn imports dropped 30 per cent year on year. Imports from India declined 49 per cent. This significant drop is likely to impede Indian exports in coming months since China has now trained its eye on supply from Vietnam.
Well-known manufacturer of high quality components for man-made fiber processing, Retech is going to present a significant range of solutions for thermal treatment and drawing in the field of synthetic yarn production at ITMA ASIA 2016 + CITME 2016 to be held from October 20- 24 in Shanghai. The company has achieved a leading position in the market for heated godet rolls that are working in spin-draw plants all around the world. The initial equipping of new machines in close cooperation with the leading machinery manufacturers is the driver for innovation. Cooperation with important yarn producers, who develop new polymers and processes, gained importance in recent years.
Retech's components and installations are important links within the textile value added chain. As the market leader, the company possesses extensive know-how in design and construction of heating and drawing elements in order to provide high technology installations with excellent customer service.
The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) chairman Shaikh Mohammad Shafiq has said members of the association are thankful to PM Nawaz Sharif and FM Senator Mohammad Ishaq Dar for introducing zero rated regime ‘No Payment No Refund’ for five export oriented sectors viz value-added textiles, carpets, surgical instruments, sports goods and leather.
Shafiq said despite hurdles, the business community engaged with readymade garments was making strenuous efforts for enhancing the export in the larger national interests. He cited the high cost of doing business and said it has started hitting the textile industry badly. This was evident from the growing number of factory closures in the sector. As cut-throat competition with countries like Vietnam, Bangladesh and China is also giving a tough time to Pakistan’s exporters.
As far as wages are concerned, while the minimum wage is around $68 in Bangladesh, in Pakistan it is $125 and rising. The Pakistani government gives a rebate of 4 per cent on incremental basis while its competing countries offer on wholesome export as does Bangladesh. He wants the government to take drastic steps for enhancing exports and addressing the problems of industrial sector.
Nepal has appealed to the European Union to extend the Generalised System of Preference (GSP) facility in exports as a support to the local economy to recover from the devastating earthquakes last year which was then followed by months-long border blockade. The EU has been planning to phase out GSP facility which was extended to least developed countries (LDCs) from the beginning of 2017. Citing the blow to Nepal’s economy due to the massive temblor and disruptions of supply lines due to the border blockade in the southern plains, the Nepalese government has requested the EU for extension of the facility, says Rajendra Singh, senior officer at the Trade and Export Promotion Centre.
Like Nepal, other LDCs have also been requesting the 28-nation bloc for an extension of the facility as they are incapable of strengthening their economy sans the facility due to various circumstances. EU has been offering zero duty facility for products (except arms and ammunitions) manufactured in the LDCs during imports to the European market.
The EU had adopted a reformed GSP law on October 31, 2012 which offered zero tariff facility to the LDCs to provide them level with playing field in the markets of developed countries. The developed countries offered this facility so that the industrial (production) base of the LDCs could be strengthened. Every year, the European Commission submits its report on GSP in the European Parliament.
Mayer & Cie's Spinit 3.0 E technology that combines three operations viz. spinning, cleaning and knitting would be officially launched in the Chinese market this October. The machine, which will be unveiled at ITMA Asia + CITME, scheduled for October 21 to 25, 2016 in Shanghai. This is the first machine type to be equipped with Mayer & Cie’s spinit systems technology.
This three-in-one concept, presented at the 2015 ITMA in Milan in the shape of the market-ready Spinit 3.0 E, is a completely new approach by Mayer & Cie. Using false twist spinning process, roving is converted directly into high-quality knitwear. According to Mayer & Cie, the benefits of the Spinit jersey can be felt as well as seen. The resultant fabric is very soft, fluffy and even, with a slight sheen and the stitches do not twist after washing.
There are also numerous pattern options which are made possible with the fancy module, a system which enables the Spinit to vary the fineness of yarn during the production process and create entirely new patterns that cannot be knitted in any other way.
India is likely to chalk out amendments to its existing tax treaty with Singapore, on the lines of those achieved with Mauritius. Speaking at the 13th international tax conference, organised by Assocham, Akhilesh Ranjan, Chief Commissioner of Income Tax (International Taxation) said there may be small variations and some fine tuning but substantially similar to the amendments effected in the India-Mauritius treaty. Elaborating on the issue, Ranjan said that talks are going on and there are some procedures to be followed. Modalities are on. This remark is significant as it indicates that India would strive for attaining the taxing right on sale of shares of an Indian company, by a Singapore-based tax resident.
The existing India-Singapore tax treaty provides for residence-based capital gains taxation, capital gains on sale of shares would be taxable only in the country of residence of the seller, subject to satisfaction of limitation of benefits clause. With India-Mauritius tax treaty amendments notified, all eyes are now on how India-Singapore tax treaty would get reshaped. This is because the amendments in the Mauritius treaty would also result in the withdrawal of capital gains exemption for investors based in Singapore with effect from April 1 next year. At present, investments through Singapore accounts for nearly 16 per cent of foreign direct investment (FDI) (from April 2000 to March 2016) in India, second only to Mauritius.
Due to the ongoing political dispute, illegal protests and tough competition, more than 70 garment and footwear factories in Cambodia have been closed down in the first eight months of this year. Garment Manufacturers Association in Cambodia (GMAC) operations manager, Ly Tek Heng says the political situation has affected business. Political issues, illegal demonstrations and competition from other garment and footwear exporting countries like Vietnam, Bangladesh and Myanmar had deterred investors from investing in Cambodia and made buyers reluctant to order from the country. In the first eight months this year, more than 70 factories have been shut down while only 20 new ones opened. This came as orders dropped by almost 30 per cent, forcing closures and slashing of working hours.
Contesting Heng’s claim, commerce ministry spokesperson Soeng Sophary downplayed the news saying closures did not mean the industry was under threat. She blamed global insecurity for the closures citing the upcoming presidential elections in the United States, the recent referendum in Britain, as well as the high price of electricity.
Contrary to GMAC's figure of a 30 per cent drop in buyer's orders suggesting trouble in the garment sector, recent figures released by the Commerce Ministry painted a far better picture. The ministry stated that total garment and footwear exports in the first quarter of this year increased by 39 per cent to $2 billion. The garment and footwear industry, which is the kingdom's biggest foreign currency earner, has some 1,000 factories employing 754,000 workers.
