Cotton yarn is a value added product in India but it has been excluded from export benefits like interest subvention. The industry wants cotton yarn to be included in the interest subvention scheme, saying that this will ensure only products are exported and not taxes and also will provide the much needed impetus in the context of rising cotton prices and the appreciating rupee which are eroding competitiveness. A rebate on embedded taxes like agricultural cess, mandi tax, power and fuel surcharge incurred in the production process is also sought. As of now cotton yarn is excluded from the ROSCTL scheme which rebates these levies.

Cotton yarn sector is one of the pillars of the Indian textile industry and is also highly modernised and technology driven and provides sustainable income to farmers. But cotton exports in the first quarter fell 33 per cent compared to the same quarter last fiscal. The steep fall has been caused by a variety of reasons including decline in exports to leading markets like China, Bangladesh, South Korea and the duty-free access given by China to cotton yarn from countries like Pakistan and Vietnam.

If the trend of declining exports were to continue in the next quarter, several spinning units are expected to close, resulting in layoffs.

Exports of cotton yarn from India in the first quarter have fallen 33 per cent. The steep fall has been caused by a variety of reasons, including a decline in exports to leading export markets like China, Bangladesh, South Korea and the duty-free access given for import of cotton yarn by China to countries like Pakistan and Vietnam. It is feared that if the current trend of declining exports continues in the next quarter, it will lead to the closure of several spinning units in the near future, resulting in layoffs.

Considering the large scale investment in spinning sector and sluggish demand in the domestic markets, exports are the only avenue to ensure uninterrupted production and capacity utilization. Even though cotton yarn is a value added product, it has been excluded from export benefits like interest subvention, the Merchandise Export of India Scheme and the Rebate of State and Central Taxes and Levies schemes. There is no rebate on embedded taxes like agricultural cess, mandi tax, power and fuel surcharge, which are incurred in the production process.

The cotton yarn sector is one of the pillars of the Indian textile industry and is also highly modernised and technology driven and also provides sustainable income to farmers.

For the second quarter Hugo Boss profit rose three per cent.

Sales were up two per cent.

In Europe – the company’s biggest market - sales rose two per cent in the second quarter, and especially in Asia, with sales expanding at double-digit rates in China on a comparative store and currency-adjusted basis. However, quarterly sales fell three per cent in the Americas.

Hugo Boss is a German luxury fashion house. Hugo Boss, known for its smart men's suits, has introduced more casual and sportswear styles to appeal to a younger audience. The group expects 2019 currency-adjusted sales growth to be at the lower end of an outlook for a mid single-digit percentage rise, and operating profit to be at the lower end of its forecast for a high single-digit percentage increase. The revamp of key stores is expected to boost the company’s performance with New York and Tokyo flagships already performing well since their reopening and renovations of others in Paris and Chicago soon to be completed. While the German fashion company’s share price has slumped by 19 per cent over the past year, its performance has been impacted by reorganisation costs, a higher marketing spend and the strength of the dollar.

India’s cotton exports to Iran jumped a phenomenal 1070 per cent last year. Amid slowing raw cotton exports in recent months, India has seen a sharp jump in cotton demand from Iran, an unexpected buyer. One reason could be the trade sanctions western nations have imposed on Iran. And Iran pays in rupee denomination and the payment comes directly to the Indian bank account. This is possible because Iran sells oil to India in rupees.

During the April-June period of 2019-20, India’s exports of raw cotton to Iran were up 813 per cent on a year on year basis. Many small exporters have already sent cotton consignments to Iran. All the same exports to Iran don’t make much of a difference to Indian overall cotton export prospects. These prospects are hampered by the non-competitive prices of Indian cotton in international markets. If the scenario of higher prices continues to persist, Indian exports may fall further next year.

India’s cotton exports were reported at 44.64 lakh bales till April 30, 2019. Exports for the season ending September 2019 are expected to hover at 46 lakh bales, which are lower by 23 lakh bales compared with the previous year’s cotton export estimate of 69 lakh bales.

Coats’ revenues fell three per cent in the first half of the year. Operating profit grew three per cent, driven by improved operating margins, strong cash flow generation and cost-cutting measures. Savings were reinvested in innovation, digital and talent. Adjusted earnings per share fell four per cent. EPS growth was four per cent.

The sewing thread maker’s market-leading apparel and footwear thread business benefited from a continued focus on product innovation, digital solutions as well as its leading corporate responsibility and sustainability credentials. In its Performance Materials business, it saw strong growth in some emerging markets and key strategic focus areas and an acceleration in the performance of recent acquisitions.

Coats opened innovation hubs in Turkey, China and the US. These dedicated centers at key locations around the world will develop pioneering new products and processes in apparel and footwear and hi-tech products for end uses in automotive, oil and gas, protective wear and telecommunications by providing creative and inspiring spaces where an innovative idea can be developed and worked up into a prototype design which is then manufactured in a standalone pilot factory. While the company remains cautious around the current macroeconomic uncertainties, based on its current assessment of business trends it anticipates delivering 2019 full-year performance.

Global cotton consumption is projected to increase 1.7 per cent in the coming season but if production grows at the expected six per cent, it will exceed production by about 3,00,000 tons. As a result, global stocks should swell to 18 million tons. These factors, combined with tepid expectations for global economic expansion, have dimmed hopes for next season’s cotton demand.

At 5.9 million tons, China is expected to remain the world’s largest producer in 2019-20, topping India’s projected 5.75 million tons. West Africa, meanwhile, is expected to see its production hit an all-time high of 1.3 million tons.

Cotton is the most recognized fiber in the apparel market, and is used, either in its pure form or blended with other materials, to make much of the world’s clothing. Global cotton production continues to be concentrated in a few countries. The top five cotton-producing countries are forecast to account for more than 78 per cent of total production. World cotton mill use is forecast to resume its growth after a 1.3 per cent decline last year. Global cotton consumption is projected at 2.6 per cent above last year’s. Mill use is projected to increase in each of the leading raw cotton spinners.

The Confederation of Indian Textile Industry (CITI) has revealed that exports of cotton yarn declined by 35 per cent in the first quarter of FY20 to $696 million compared to $1.063 billion in the same period last fiscal. Of this, exports in April 2019 declined by 21 per cent to $266 million compared to $337 million in the same month previous year. Those in May declined by 31 per cent to $241 million against $349 million in May 2018 while those in June declined by 50 per cent to $188 million compared to $378 million reported in June previous year.

Cotton yarn exports have been on a decline since 2014 when the Union government removed all incentives for the shipments. India lost its main market China to Vietnam which has duty free access to China while our cotton yarn attracts 3.5 per cent duty. To prevent these exports from declining further the industry needs rebate on state and central taxes and levies (RoSCTL) on an urgent basis.

The price of Indian raw cotton is the highest in the world despite the country being one of the largest producers. The 28 per cent hike in MSP disrupted the prices, leading to disconnect with international prices. To ensure that the industry gets international competitive prices for cotton, CITI recommends the introduction of direct benefit transfer’ to farmers.

As per the sixth annual Fashion Industry Benchmarking Study by the United States Fashion Industry Association’s (USFIA), nowadays sourcing executives are more cautious and less optimistic about the five-year outlook for the US fashion industry. A year ago around 84 per cent survey respondents were either optimistic about this outlook. This year that number has dropped to 64 per cent. And one-quarter of the respondents were reported to have taken a ‘neutral’ stance.

Conducted in conjunction with Dr Sheng Lu, Associate Professor in the University of Delaware Department of Fashion & Apparel Studies, the survey asked respondents about the business outlook, sourcing practices, utilisation of Free Trade Agreements and preference programmes, and views on trade policy. It surveyed executives from 39 leading fashion brands, retailers, importers and wholesalers including some of the largest brands and retailers in the country.

Another key finding of the survey was the biggest challenge faced by the fashion industry faced today being the impact of increasing production and sourcing costs. Around 84 per cent of respondents termed it as a major challenge.

In an economic report released during the Milano Unica 29, Confindustria Moda’s Research Center’s 2018 figures showed sales of Made-in-Italy textiles slightly outperformed expectations, with wool making up 42.7 per cent of total sales. Manufacturing data for 2019’s first quarter showed a -3.5 per cent downtrend, along with a similar performance for exports and imports.

Market segments, however were mixed: exports to the US grew by 15.5 per cent, and exports to China rose by 3.2 per cent especially for wool products. Exports of wool fabrics declined by 2.4 per cent, but worsted wools increased by 4.1 per cent while combed wool fabrics were down -4.7 per cent.

Milano Unica 29, the Italian Textiles Trade Show held between July 09-11, 2019 presented the Autumn/Winter 2020-21 collections of textiles and accessories featuring the very best of high-end products for men, women and children.

For the first time the show addressed the relationship between sustainability and style with its MU Sustainable Innovation Project, debunking the idea that sustainable apparel cannot also be beautiful and trendy.

As part of MU’s sustainability vision, it has partnered with Sistema Moda Italia and the Italian National Chamber of Fashion to offer a prize at the annual Green Carpet Awards, taking place this year on 22 September at the Teatro alla Scala in Milan. This prize will go to a young designer who demonstrates the ability to creatively interpret fashion in a more sustainable manner.

The sustainability movement has meant a sea change for raw material sourcing in the apparel industry. When making decisions on which fabrics to use in their lines, brands now have to put the environmental origin and impact of the ingredients that comprise their clothes top of mind. This begins with how the fiber is grown, harvested and extracted, as well as the textile processing and the end-use stage for that garment, and how the materials play into that. A key is using natural fibers that support farmers, enable a more traceable supply chain and help create transparency. It’s about collaborating with the right partners in the supply chain so that the fibers stay in a sustainable environment.

It’s nice to tell a sustainability story, but the aesthetic of the product is really important, as well. Products should be created to be desirable and have a long life. The same is true with building functionality and durability in products by making the correct material choices.

Lenzing’s Tencel with Refibra technology line introduced a couple of years ago—which uses cotton scraps blended with Tencel lyocell to create regenerated fiber produced in a close loop process—has been adopted by about a dozen brands and retailers.