There should be no anti-dumping duty on viscose staple fiber. So says the Tamil Nadu Federation of Powerlooms Associations, India.

In Tamil Nadu, says the federation, over two lakh powerlooms have switched over to 100 percent viscose staple fiber and contributed significantly to fabric exports. The removal of the anti-dumping duty of 28 per cent levied on imported viscose staple fiber enabled the sector to increase 100 per cent viscose staple fiber fabrics exports from 25.49 million sq m during 2019-20 to 61.39 million sq m during 2021-22.

The federation says the powerloom sector in India is the largest woven cloth manufacturing sector, accounting for 85 per cent of the total cloth produced in the country. The country currently has around 3.86 lakh powerloom units in the decentralized sector and 25 lakh power looms, including around 1.5 lakh shuttle-less looms, providing direct jobs to around 5 million people.

The high volatility in cotton prices had had a severe impact on the powerloom sector and the removal of the anti-dumping duty on purified terephthalicacid, monoethylene glycol, polyester staple fiber, acrylic fiber and viscose staple fiber enabled the powerloom sector to diversify into manmade fabric, which is the future growth engine of Indian textiles and the clothing sector, says the federation.

Caroline Taco is the executive director of International Cotton Advisory Committee. So far she has been business development manager. She joined ICAC in 2001 and is its longest-serving member. She will continue to also serve as business development manager. Taco has attended every ICAC plenary meeting since 2001 and has extensive experience, including the preparation of budgets, managing the flow of publications and committee documents.

ICAC provides public infrastructure that enables improvement through industry action. ICAC brings together governments and the private sector from producing, consuming and trading countries representing all sectors of the value chain. ICAC has contributed concretely to the lives of people in the cotton industry by facilitating cotton-friendly government policies, providing information for decision-making and by developing and disseminating technology. World cotton yields are higher, earnings are greater, and demand is stronger because of the work that the ICAC has been doing.

Formed in 1939, ICAC is an association of cotton producing, consuming and trading countries. It acts as a catalyst for change by helping member countries maintain a healthy world cotton economy, provides transparency to the world cotton market by serving as a clearinghouse for technical information on cotton production, and serves as a forum for discussing cotton issues of international significance.

Bemberg has partnered with PureDenim and launched a premium denimwear range.

The collection is made with seven fabrics made with Bemberg, either 100 per cent Bemberg or in blend with cotton, wool, and it applies the most advanced Pure Denim Technologies.

The fabrics made with Bemberg will also be dyed with Smart Indigo, an indigo dye technology internally produced by PureDenim, through a chemical-free production. The only elements involved are water, indigo pigments, and electricity. In terms of finishing, the fabrics’ looks and performances are enhanced by the Eco Sonic ultrasounds finishing technology which brings significant reduction of water used, increased aesthetic features and controlled discoloration.

Bemberg by Asahi Kasei is a unique fiber with a circular economy footprint obtained from cotton linters through a closed-loop process ensuring certified sustainability credentials through its transparent and traceable approach.

PureDenim is an Italian company whose strategy has been based on an entire re-design of the production system, inspired by circular economy principles that combines technology and innovative materials in order to offer the highest levels of design, innovation and real responsible values derived from an holistic approach to sustainability.

Pure Denim has revolutionized denim processes with new technologies, natural polymers and smart fibers.

Garment exporters in Tirupur are hopeful of bagging more orders in 2023. They expect a 30 per cent growth in orders once the trade agreement between India and the UK is signed.This is expected to bring orders to knitwear exporters all through the year.

Tirupur’s exports of knitwear and garments to the United Kingdom are growing by 20 per cent year on year. About 20 per cent of the knitwear hub’s annual exports of knitwear and garments go to the United Kingdom. Also India’s economic pact with Australia has come into force. Exports to Australia from India crossed Rs600 crores between January 2022 and June 2022. They are expected to have touched another Rs600 crores during the remaining period of the year.With the economic pact having come into effect from December 29, 2022, garment exports from India to Australia are expected to see almost a 30 per cent growth in the first year as Indian apparel products now have duty-free access to Australia.

Though the garment industry in Tirupur is largely cotton-based, manufacturers have started experimenting with manmade fiber and in another three years the share of manmade fiber-based products in Tirupur is expected to go up.

Electricity tariffs have burdened Sri Lanka’s apparel exporters. In most factories electricity is the third highest cost incurred, after materials and salaries.

The price of electricity has increased by some 65 percent. So not only small and medium scale enterprises, but even large-scale companies are in trouble. Before the August 2022 electricity hike the cost of production was slightly lower in Sri Lanka than in its competitors.However, now the country is at a Vietnam cost level. The industry fears that with more hikes in the electricity tariff, its costs will be higher and it wouldn’t be able to compete.

Customers especially in a global downturn would not want to spend more on Sri Lankan products. Sri Lanka produces energy using highly costly sources, such as diesel, and there has been no attempt to move to cheaper alternatives.There is no plan to boost renewable energy production though there was a plan to move to 70 percent renewables by 2030. Before the tariff hike in August 2022, the daily demand for electricity was around 48 gigawatt hours but by December 2022, the demand had dropped to 36 gigawatt hours. Factory owners have curbed their use of electricity because they can’t afford to pay.

India’s exports of knitted T-shirts during January 2022 to October 2022 grew by ten per cent.

Exports to the US were up 20 per cent. Knitted T-shirt exports to Germany, UK, France and the Netherlands were up by 16 per cent, five per cent, five per cent and 23 per cent respectively. So there was export growth to the EU countries despite news about declining orders from European buyers.The US is the top destination for Indian knitted T-shirt exporters followed by the UAE, Germany, UK, France and the Netherlands.

Bangladesh and India have attained the highest growth rates of T-shirt production among the main producing countries. The increased exports from these countries is due to the export-oriented means of production, feasible as a result of cheap labor costs. Despite the fact that China remains a key global centre for the production of T-shirts, production is gradually shifting to other countries in Asia.

T-shirt consumption is set to maintain an upward growth trend in the immediate term, due to the recovery being seen in the global economy, the process of ongoing urbanization, the rising population, and increasing income levels. The global trend of the T-shirt market is expected to continue, with a growth of 1.7 per cent annually in the medium term.

Heimtextil will take place in Germany, January 10 to 13, 2023. This is a trade fair for home and contract textiles, interior design and trends.

Over 2,200 international exhibitors from 50 countries are expected. Heimtextil 2023 provides the perfect range of relevant market players and complements the benefits for buyers with an extensive supporting program. The overarching theme is that of sustainability.

Heimtextil Trends aims at setting standards for the future-oriented and sustainable textile furnishings of tomorrow. The focus is particularly on the subject of the circular economy.Circular economy also characterizes the staging of Heimtextil Trends. The area is as sustainable as possible with predominantly recycled materials and elements as well as a strict waste avoidance strategy.

Interior. Architecture. Hospitality, the specialist program for interior designers, architects and hospitality experts, will once again take place at Heimtextil on a large scale and in the usual high quality. The program includes renowned architects and hotel experts who will present their work and discuss current industry topics such as sustainability. Participants will be shown innovative textile solutions from the contract sector. A directory will list all the suppliers of contract textiles. In addition, the identification of the respective trade show booths ensures an effective trade show visit for the target group.

China’s apparel imports fell two per cent year on year from January 2022 to November 2022. On the other hand, textile imports of the country plummeted massively by 23 per cent year on year. Particularly in November 2022, Chinese apparel imports saw a substantial drop of over 16 per cent.

The drop in apparel imports has been attributed to the closure of markets due to lockdowns in China because of which retail businesses have suffered. On the other hand, textile imports of the country plummeted by 36 per cent in November 2022. China’s position as the top global cotton importer is also weakening as cotton shipments flow into flourishing textile industries in competing countries.

Following years of rising production costs, volatility from government intervention in the market, and government caps on the volume of imports, China’s cotton imports dropped from their peak of 24.5 million bales in 2011 to 4.4 million bales in 2015 before rebounding to 9.5 million bales in 2021.

Meanwhile, competing countries, including Vietnam, Pakistan, Indonesia, Bangladesh, and Turkey, have expanded their textile industries and boosted cotton imports over the same period. These countries’ combined imports now exceed China’s volume of cotton imports. This increasing geographic diversification of global cotton demand has helped US cotton exports to remain relatively robust despite volatility in China’s imports over the past decade.

The readymade garment and textile sector of Bangladesh will see a year of possibilities in 2023.

Buyers from western countries, especially from the US, have started to shift their orders from China as part of reducing dependency on China for geopolitical reasons.This trend is expected to continue in the upcoming year. In this case, Bangladesh can be a good alternative for western buyers.

West looking at Bangladesh as a strong alternate

Western countries may also move out orders from Vietnam and Bangladesh will have a chance to grab them too. Especially in the last few months Bangladesh has received orders from the United States at a higher rate compared to two major suppliers-- China and Vietnam.

Bangladesh's garments exports to the US have seen 54 per cent growth at the beginning of the current year, 2023. Besides, China's moving towards high-tech industry and the latest coronavirus surge in that country can play big roles in diverting readymade garment orders to Bangladesh.

In 2004, there was much speculation about export growth while the quota system on garments exports was lifted. But those who invested have gained a good profit.Many world-famous commodity traders are planning to open warehouses in Bangladesh. If one company opens a warehouse in the country, others will follow. As a result, Bangladesh is going to have good prospects in the coming years. Buyers have confidence in Bangladesh’s suppliers and new buyers are also coming. Outerwear, sportswear, lingerie and cotton-based high-end products have good export potential and entrepreneurs have to be proactive in grasping these possibilities.

The way ahead

Uncertainties such as the war and the recession remain.This year should be the year of investment in the backward and forward linkage industry of the apparel sector. The industry has to prepare for the future and should look for future possibilities. Long-term planning is necessary. Policy support will also be required. Especially, the industry needs energy support, an investment-friendly environment, policy reform, upgraded logistics and corporate governance etc.The policy for economic zones needs reform. It is also important to modernise customs and port activities in the country. Trained manpower with technical knowledge is needed. Coordination is necessary between industry, policymakers and academia.

India’s domestic textile manufacturers want the Indian government to lower import duty of 11 per cent on cotton to facilitate outsourcing cotton from abroad as locally produced cotton still remains 10 to 20 per cent higher than those produced in other parts of the world. “The rate of Indian raw cotton is 10-20 per cent higher than the international cotton, including the Chinese cotton. This makes Indian spinning mills not to source cotton from India due to the higher rate. At the same time, the Government of India has imposed 11 per cent import duty. This spoils the level-playing field,” K Venkatachalam, Chief Advisor, Tamil Nadu Spinning Mills Association (TASMA) said in a recent media interview.

And as per Prabhu Dhamodharan, Convenor, Indian Texpreneurs Federation (ITF), “Cotton prices have dropped globally since there has been a contraction of about 30 per cent in retail sales of global fashion companies. November-end results show major contraction to the tune of 30 per cent for some global brands in China due to Covid issues.” The situation is indeed grim and the Indian government needs to act fast with stimulus packages for the entire textile industry, be it spinning, weaving, fabricating, readymade garments or home textiles.

The current price-led situation has had many manufacturing units working two to three days a week. Their efficiency now stands at 30 per cent. This price difference has also led to many textile manufacturers abandon cotton textiles for manmade fibres.

Aligning price for competitiveness

Indi’s cotton output is estimated at around 3.44 crore bales this year and prices will fall as new crops are released in the market. With fall in prices, spinning mills in Gujarat are now working at 70 per cent capacity and the industry is expecting a revival as India’s cotton prices are aligning with global rates and cotton yarn export orders are slowly increasing. Recently, China placed substantial order after nearly a whole year of silence as it grappled with its own issues. China’s textile exports were valued at $270 billion and domestic consumption at $300 billion and for such a large player encountering challenges and stopping imports first affected the US and later, India. Vietnam and Bangladesh are expected to source Indian cotton as news of its price drop has spiked interest in these countries.

The good news for the textile industry is at that the in the real world of trading cotton, the priced quoted are at least 20 per cent higher than what is officially quoted by the Inter Continental Exchange (ICE) based in New York. At lowered prices, Indian cotton is only 10 per cent more than quoted by ICE and therefore, less expensive than it used to be in November 2022.

The cotton textile industry in India is optimistic but cautious as sustaining export orders through 2023 may be questioned as China continues to struggle with Covid, the Ukraine invasion continues with no end in sight and Europe edging into recession and the US expected to follow.