FW
Due to the fluctuations in dollar and euro, Bangladesh lost millions on exports last fiscal year. This could have been avoided, if the country had adopted a multi currency exchange rate. The multi currency exchange rate is a system that allows importers and exporters of any country to use any suitable currency in international trade. Generally, the US dollar is the most widely used currency for payment settlement in international trade.
Conceptualised in 2008, the multi-currency exchange rate is still at discussion levels. Until now, no country has adopted the regime. The Bangladesh taka appreciated 1.45 per cent against the dollar last year, due to which export earnings were lower than they should have been. At the same time, currencies of competing countries like the Indian rupee devalued 4.73 per cent against the dollar, the Pakistani rupee by 3.12 per cent and the Vietnamese dong by 1.3 per cent.
Bangladesh garment exporters say they are losing competitiveness and that the profit level in the garment business has gone down. They want the issues over currency exchange rates to be addressed so that the country does not suffer. It’s believed that hedging in international trade can effectively address the currency exchange risks.
As per Euratex’s latest estimates, the European Textile and Clothing industry and its exports to the US, reached a turnover of €165 billion in 2014. It generated a value added of nearly €44 billion, employing 1.63 million workers. A large number of SMEs, largely, support the European industry though big brands and companies also exist. The industry structure in the 28 Member States is diverse and provides a complex and patchy picture. A fragmented image is reflected of production due to the breakdown. It is almost equally divided between textiles (51 per cent) and clothing products (49 per cent).
The extra-EU exports of textile & clothing products reached €43 billion last year. These were divided almost equally between textiles and clothing. US, Europe’s first customer has exports reaching €4.91 billion last year, which were also divided equally between textiles (€2.35billion) and clothing (€2.56 billion).
Textile and clothing products are part of one third of industrial goods for which the US MFN tariffs are far above 5 per cent, stresses Euratex. There are some peak tariffs, though, such as 11.4 per cent for sewing thread of man-made filaments, 14.7 per cent for woven fabrics of cotton or 28.6 per cent for trousers and 32 per cent for T-shirts. Rules of origin are the main issue for EU’s textile and clothing sector against this background.
A good move would be to simplify the rules, but even better would be to adapt enough to the industry patterns. This will allow EU companies to gain the more benefits from TTIP.
The second quarter of this year has seen a rise in orders for Italian textile machinery. Raffaella Carabelli, President of ACIMIT said that orders have gone up in the domestic market and there is optimism about ITMA 2015 and Iran market.
The Association of Italian Textile Machinery Manufacturers recorded a 15 per cent rise in orders over the same period in 2014 for the second quarter of 2015. The value of the orders index for this period amounts to 99.4 points. In foreign markets too, orders have risen, growing for the fourth consecutive year (+21 per cent over the same quarter for 2014). Italy is showing signs of recovery with domestic orders rising seven per cent against the same period last year.
Carabelli stated incentives implemented by the government, in all likelihood, might have been the reason for this recovery. The rest, he says, was achieved because the healthy situation of various sectors downstream. ACIMIT sources say that for many years, Iran was a benchmark for Italy’s textile machinery industry. The flow of machinery exports towards Iran was halted effectively by international sanctions in the process penalising many Italian manufacturers.
Recovery of investments in Iran’s textile technology by Italy’s textile sector seems a possibility now after the recent nuclear agreement. The negative trend for Italian exports halted last year. Sales of Italian textile machinery grew 170 pr cent compared to 2013, amounting to EUR 14 million.
Facilitating skill training across India
Safeducate, the education and training arm of supply chain and logistics industry leader Safexpress, has created an innovative model for skilling people, which can be easily and quickly be replicated to any location in India. This community outreach initiative by Safeducate could help the government provide high quality skill training even in the remotest areas of the country.
Inaugurating the Safeducate Container School, Rajiv Pratap Rudy, Minister of State for Skill Development and Entrepreneurship, said, “Safeducate has introduced an innovation, which will revolutionize the way skill training is imparted in the country. By launching India’s first Container School, Safeducate has set an example in the field of skilling. It is difficult to provide training to the youth in the rural areas of the country, where there is minimum availability of infrastructure and resources. By bringing down the cost and effort involved in developing infrastructure to meet education and skilling needs of people in India, this unique training platform will aid in providing quality education to the youth present in the remotest location of the country.”
Elaborating on the concept, Divya Jain, Founder & CEO, Safeducate said, “We have created the Safeducate Container Schools with a very high visual appeal to attract people even in remote areas. They have a very professional look-and-feel, and are equipped with all amenities present in a regular school. These schools will provide Safeducate the ability to conduct trainings at any location across India where skilling is needed. This school can be set up anywhere in a short time, with just the availability of land and electricity connection. Safeducate Container Schools will help in creating job opportunities across the country, while creating skilled workforce for the industry.”
Safeducate Container School has been created by joining four refurbished containers together that were earlier being used for the purpose of logistics. First school has a training capacity of 189 students per month, with residential facility for 23 students. The school facility includes three classrooms, computer lab, activity area, recreation area, library and staff offices. Firms like CONCOR and SCI scrap over 5,000 containers every year so there is a huge potential for scaling up this model across all 680 districts of India.
The 12-country pact, the Trans-Pacific Partnership, the biggest ever free trade deal covering 40 per cent of the world economy, at the Hawaiian island of Maui, concluded without reaching any agreement. After one week of what was termed as ‘productive meetings’ by US Trade Representative, Michael Froman, negotiators walked away without settling the deal.
The Trade Promotion Authority (TPA), was passed by the Congress recently, which allows President Obama to introduce trade deals to Congress for an uncomplicated up or down vote without amendments. The measure though, is now in place, failed to push the deal forward to a feasible conclusion. As per reports, dairy has been a sticky wicket, as some countries negotiating, for e.g., New Zealand, are reluctant to back a deal that doesn’t open dairy markets further.
The US seeks 12 years of patent protection time for pharmaceutical drugs, while Australia has five at present and Chile, zero. Countries such as Malaysia and Vietnam have concerns about public health if access to cheaper generic versions of drugs is too many years out. Thus, the length of time to extend patent protection for pharmaceutical drugs was also under dispute.
Ambassador Froman is confident that TPP would pan out and will support employment and economic growth. He added that they had made quite a progress and would continue to work on resolving few issues and reaching a viable conclusion of the Trans-Pacific Partnership negotiations.
Southern Mills, based in Georgia, US, manufactures protective clothing fabric for industrial and military use. The company offers outer shells and thermal barriers for firefighters, flame-resistant garments for military personnel and industrial garments for welders, petroleum, electrical, and gas utilities workers. Its products are used in wild land firefighting, technical rescues, emergency medical services, oil exploration and production, petrochemicals, molten metal processing and by military personnel. The company was founded in 1925.
In 2004 the company was acquired by Royal Ten Cate, a Dutch-based multinational maker of technical textiles. Since then it has been doing business as TenCate Protective Fabrics USA. Southern Mills has filed a patent infringement action on July 15, 2015, against International Textiles Group, a Delaware corporation.
It says an International Textiles product marketed under the Glide trade name infringes a patent. In addition to direct infringement, the complaint alleges indirect infringement by inducement. Further, Southern Mills claims that International Textiles contributes to direct infringement by end users and garment manufacturers, pointing specifically to marketing materials.
The complaint alleges that International Textiles’ actions are willful and seeks a finding of infringement, an injunction, damages, including enhanced damages, attorney's fees and expenses prejudgment interest and costs.
www.semills.com/
After increasing 16 percent to 9.4 million tons in 2014-15, stocks held outside of China are expected to decrease by 4 per cent, to 9 million tons, by the end of 2015-16. Much of the world’s excess stock is held by the Chinese government due to purchases made by the China National Cotton Reserve Corporation under its stockpiling policy from 2011-2014. The reserve made its final purchases of the 2013-14 crop in March 2014 with sales continuing through August 2014, ending with an accumulated volume of around 11.3 million tons. On July 10, the Chinese government started selling its stockpiles at prices close to the current domestic market price in the hopes of maintaining market stability. The cumulative volume of cotton sold through the end of July is around 40,000 tons.
India’s ending stocks are estimated at 2.2 million tons in 2014-15, which is the second largest volume of stocks. Part of the increased volume is held by the Indian government, which procured stocks under its minimum price support program. Government purchases in 2014/15 are estimated at around 1.5 million tons, and sales through the end of July at around 650,000 tons. However, exports from India have fallen by 51 per cent to 980,000 tons, also contributing to the piling up of stocks.
Stocks to decrease in 2015-16
Cotton stocks are expected to reduce in 2015-16 as consumption overtakes production for the first time in five seasons. World production in 2015-16 is forecast down 9 per cent to 23.8 million tons. Output is expected to fall from 2 per cent to 16 per cent in the five largest producing countries. Rising costs of production and a decreased subsidy in China are likely to lead to a 16 per cent drop in production to 5.4 million tons. India’s production is forecast down just 2 per cent to 6.4 million tons due to improved yields from better monsoon weather this season and low prices for competing crops reducing the loss of cotton area. World consumption is projected to rise by 2 per cent to 24.9 million tons in 2015/16. China’s consumption is forecast to remain stable at around 7.7 million tons. However, mill use is expected to grow in the next four largest consuming countries.
World cotton trade is expected to remain stable at 7.7 million tons in 2015-16. In 2015, the Chinese government limited import quota to the volume required under WTO rules of 894,000 tons, in part to spur demand for domestic cotton and Reserve sales. Given the large volume of stocks within China, it will likely maintain the restricted import volumes through 2016, and China’s imports could fall 10 per cent to 1.6 million tons in 2015-16. Imports outside China are forecast to increase by 4 per cent to 6.1 million tons.
The Maharashtra Textile Department and Industries Department has called for investment in its recently inaugurated mega textile park Nandgaon Peth in Amravati district. As per the state textile policy, the Maharashtra Industrial Development Corporation (MIDC)-initiated project will have benefits of 10 per cent capital subsidy and up to seven per cent subsidy. It has seven stars facilities including a common effluent treatment plant.
Nandgaon Peth is intended to be India’s one-stop textile destination for investors. It also has other benefits like an industrial promotion subsidy and stamp duty and electricity duty exemption incentives by the industries department.
The park, houses A to Z support structure in textile manufacturing. At present 500 hectares land has been acquired and out of that 100 hectares have been allotted. Till date, one project is operational, two are under construction and other projects are in progress.
This Amravati textile park has eight major textile units with an investment of Rs 1,243 crores, giving direct employment to 3700 people. More such parks will be set up in Maharashtra. Some of these will be in Yavatmal, Parbhani, Buldana, Nanded, Beed, Jalana and Aurangabad. Cities are selected on the basis of cotton production in the last five years.
Planet Textiles 2015, a conference, which addresses environmental and social impacts of global textile supply chain, will take place on October 14, 2015 alongside the Intertextile Shanghai Apparel Fabrics trade fair. Jointly presented by MCL Global and the fair’s organiser Messe Frankfurt (HK), the conference features 10 presentations from leading experts in the field of sustainability, covering both global and China-specific topics.
After announcing keynote TED.com speaker Hans Rosling, the organisers have said that three high profile presenters from Adidas, VF Corporation and the Beijing-based NGO: Institute of Public & Environmental Affairs will be part of the conference. Ma Jun, Director of the Institute of Public and Environmental Affairs (IPE) will be speaking, along with confirmed speakers Philip Courtenay, Senior VP of apparel sourcing at Adidas Group, and Sean Cady, Vice President of product stewardship and sustainability at VF Corporation.
Ma Jun is a very well-known Chinese environmentalist, environmental consultant, and journalist, who received the Goldman Environmental Prize in 2012 and made the list of FP Top 100 Global Thinkers in the same year. In addition to Cady and Courtenay, speaking on behalf of VF Corp and Adidas respectively, other speakers for the event include senior executives at Bayer Materials and Bluesign technologies. Hans Rosling’s award-winning lectures cover contemporary environmental, economic and social world changes, accompanied by animations and graphics of global trends.
MCL Global, publishes Ecotextile News, Sustainable Nonwovens, Detox Deconstructed, Knitting Trade Journal, EcoComposites, Cotton Horizons and the biannual Eco-Textile Labelling Guide.
www.mclglobal.net
A comprehensive energy management system (EMS) was implemented by 71 textile units who came together for this initiative, coordinated by the Indian Texpreneurs Federation (ITF). The EMS helps monitor energy consumption of every machine round the clock. With this initiative ITF’s aim was to continuously evaluate the machine health and operating practices via the hardware and software installed as part of the EMS.
Karthik Durai, Executive Member, ITF and the coordinator of EMS implementation opines that EMS is unique, in that, it ensures that every machine in these 71 units is fitted with a metre. This metre is capable of reading various parameters such as voltage, current, load consumed and other power factors and the data generated is sent to a common server in the unit to monitor using a software programme.
In the usual energy audits that are occasional, they analyse the total energy consumed with respect to what is required. However, this conventional method can’t find the micro-level defects that are the cause for energy losses. Thus, the new method would not only help the units identify the defects and aspects in individual machines that lead to energy losses, but also the units can adopt corrective measures accordingly. Besides, the ITF has also placed orders for the metres and software solutions that form the EMS with two companies in Chennai and Bangalore. The ITF, instead of just buying products from what these two manufacturers could offer, has based the orders on the monitoring requirements of units.
Karthik added that about 10 per cent energy could be saved by the textile units when the EMS becomes operational, as there’s a round-the-clock monitoring facility.
