The Union Cabinet has approved the Mega Investment Textiles Parks (MITRA) scheme proposed in February this year. The scheme involves development of seven mega textile parks across India to create world-class infrastructure with plug-and-play facilities. A part of the government's 'Farm to Fiber to Factory to Fashion to Foreign' push, the parks will generate one lakh direct and two lakh indirect employments per park, says Piyush Goyal, Textiles Minister.

The MITRA scheme enables textile industry to become globally competitive and boost employment generation and exports. The scheme will have two parts, with the larger component being development support. Each of these parks will be set up with an estimated investment of Rs 1,700 crore. . First movers who establish anchor plants and hire atleast 100 people will get a competitive incentive support from the government. These businesses can secure upto Rs 10 crore in a year for three years or a total of Rs. 30 crore under this formula.

The government plans to establish 'holistic integrated textile processing regions' around these parks. This would include common services centers, design centers, research and development centers, training facilities, medical and housing facilities as well as Inland Container Terminals and logistics warehouses.

The COSATU-affiliated Southern African Clothing and Textile Workers’ Union (SACTWU) has called off its four week protected wage strike at SAKPRO, a bag manufacturing company located in White River in Nelspruit in our Mpumalanga Province.

SACTWU and SAKPRO management engaged in three rounds of plant level wage negotiations, earlier this year. Unfortunately, these negotiations deadlocked, and mediation processes facilitated by the Commission for Conciliation, Mediation & Arbitration (CCMA) could also not yield a settlement.

SACTWU then conducted a strike ballot, in which 79.7 per cent of its members voted in favour of strike action. They accordingly embarked on a protected wage strike, with effect from 9 September 2021. This strike caused a complete but orderly shutdown of the factory’s operations. The strike finally yielded an acceptable settlement on October 01, 2021.

In terms of the final settlement, SACTWU members will receive a 6 per cent wage increase, back-dated to 1 July 2021. In addition, they will also receive a 5.3 per cent increase in their monthly transport allowance.

Supported by higher cotton output, Pakistan’s gross domestic product (GDP) growth is likely to rise by over 5 per cent in the current fiscal year, predicts the All Pakistan Textile Mills Association (APTMA).

Pakistan’s cotton arrivals from farms have increased by 100 per cent to 3.8 million bales. By October 1, over 3.846 million bales of cotton had arrived in local markets as compared to 1.907 million bales by the same time in the previous year.

The country also plans to set up 100 new textile mills under the new textile policy, which would boost exports by over $20 billion, adds an APTMA official. The new units would help attract foreign investment of over $5 billion besides providing more than 500,000 jobs to the local people, he adds further.

In July-August 2021, Pakistan’s textile exports increased by 28.68 per cent to $2.93 billion as against exports of $2.28 billion in the same period of previous year, according to recent data of the Pakistan Bureau of Statistics (PBS).

Cotton yarn exports rose by 67.97 per cent to $193.39 million from $115.13 million in the corresponding period of previous year.

Likewise, cotton cloth exports surged by 24.74 per cent to $367.62 million from $294.72 million, whereas exports of cotton (carded or combed) increased by 100 per cent to $0.77 million.

At the upcoming Autumn Edition of Inter Textile Shanghai Apparel Fabrics, running from 9-11 October, four Asian country and region pavilions will return from Japan, Korea, Hong Kong and Taiwan, along with the Milano Unica Pavilion.

The Japan Pavilion this October will consist of 36 companies, including two brand new exhibitors. The very best of original Japanese designs will be on display along with exclusively produced natural and polyester fibres.

The Taiwan Pavilion will feature 15 exhibitors displaying the latest innovative textile and accessories. Highlighted products include world famous lace and embroidery pieces for wedding and high-end dresses, and functional fabrics with antibacterial and hygienic features.

The Hong Kong Trade Development Council (HKTDC) are the organizers of the Hong Kong Pavilion which will showcase ladieswear, casual wear and functional wear from eight suppliers, with a variety of quality embroidery and high-grade knitted fabrics to be discovered.

Organized by the Korea Trade-Investment Promotion Agency (KOTRA) and the Korea Fashion Textile Association (KFTA), the Korea Pavilion members will mainly focus on ladieswear, casual wear and functional wear. A variety of fancy and functional fabrics can be found among the 14 exhibitors’ collections, along with velvet, Modal, metallic, Tencel, nylon, rayon, cotton, jacquard, linen, wool, polyester, coated, printed and mixed woven fabrics.

Rounding off the country and region pavilions, Milano Unica can be found in SalonEurope alongside suppliers from Switzerland, Turkey, France and the UK to name a few. Milano Unica is in fact returning to Intertextile for the first time since the start of the pandemic and will be formed of 38 exhibitors showcasing products from wool, cotton and functional fabrics to suiting and shirting fabrics. Meanwhile, the very best of made-in-Germany fabrics will be on display at the German zone with a focus on raw materials, finishings, functional textiles and more.

Intertextile Shanghai Apparel Fabrics – Autumn Edition is organized by Messe Frankfurt (HK); the Sub-Council of Textile Industry, CCPIT; and the China Textile Information Center.

More than 30 AATCC research committees will meet on November 15 and 16 at the Sheraton Imperial Hotel in Durham, NC, US.

The RA63 Water Resistance, Absorbency & Wetting Agent Evaluation Committee will focus on test methods to evaluate condensation on textiles in humid microclimates. The RA100 Global Sustainability Committee will review the newly-published test method on fiber fragments (“microfibers”) in laundering.RA111 Electronically Integrated Textiles Committee will discuss the work of other global organizations working on e-textiles, and the committee’s own work on evaluating stretch of e-textiles.C3 Technical Committee on Research includes brief updates from each of the committees meeting during the week

The research committee meetings will be part of a larger Week of Celebration commemorating AATCC’s 100th anniversary. Other events include the Textile Discover Summitand a tour of the AATCC Technical Center featuring displays of historic documents, photos, and artifacts. A time capsule from 1964 will be opened and a new one deposited for future generations.

The new generalized scheme of preferences (GSP) proposed by the European Commission is likely to limit Bangladesh’s gains from the current ‘GSP plus’ scheme, says a report by the Daily Industry. The report suggests, focusing on core issues like climate protection and good governance, the scheme lowers product graduation thresholds by 10 percentage points, enhancing competitiveness of large industrialized players in their preferred markets. The scheme maximizes opportunities for low-income countries to benefit from the GSP. It also ensures a smooth transition for all countries graduating from the least developed (LDC) next decade, as per European Commission’s legislative proposal for 2024-2034.

With the new scheme, countries will be able to retain access to the EU market and also apply for special incentive arrangement for sustainable development and good governance (GSP+).

Lower thresholds hamper Bangladesh’s competitiveness

To boost growth prospects for poorer developing countries, the new scheme lowers the threshold to 47 per cent and textile threshold to 37 per cent. This may be a major disadvantage for Bangladesh as majority of its products are above this threshold. It prevents Bangladesh from benefiting from products that have good export competitiveness, believes Mustafizur Rahman, Fellow, Centre for Policy Dialogue. In force from January 1, 2024, the new scheme enables all graduating countries to apply for the GSP+ facility. However, the scheme has certain conventions on labor rights that need to be amended.

Fazlee Shamim Ehasan, Vice President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) feels, the new scheme will enable Bangladesh to get GSP+ facility. However, it may create a few problems for woven garment exporters, he adds. Focusing on climate protection, the new proposal will mark a new beginning for Bangladesh apparel sector, says Md Saiful Islam, President, Leathergoods & Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB). To benefit from the proposal, the government needs to negotiate with the European players through political and diplomatic routes, he adds. Also, entrepreneurs need to comply with all environment and safety-related rules.

Ease of withdrawal on violation of rights

Another benefit of modernized framework is the widening of scope for withdrawal of EU GSP preferences in case of serious and systematic violations. Besides, human rights and labor contracts, the proposal also includes rules on environment and good governance. The new framework also adds two new rules on rights of the disabled and children, and another two on labor inspections and tripartite dialogue. It also incorporates a convention on transnational organized crime.

Rensje Teerink, Head, European Union Delegation to Bangladesh believes, GSP Plus will be the way forward for Bangladesh as it includes issues related to environment protection and good governance. Therefore, she advises Bangladesh to follow the core issues related to GSP Plus in detail post LDC graduation.

To be held by the British Wool from October 04-31, 2021, the Wool Week will run for the entire month of October this year. Each year this event is used to amplify the wool message to consumers. This year, it will target consumers with a few key themes during this period; selling and promoting British wool rich products, highlighting those organizations that have made a commitment to buy British wool, and promoting the sustainability as well as the many environmental benefits of wool and British farming.

The new British Wool e-shop will also be a focus for Wool Week. It will give the organization an ideal platform to sell its products directly to the consumer. British Wool has recently been involved in launching a number of new products and initiatives to help drive demand and ultimately the price for British wool. These include; a major 100 per cent carpet yarn (Wool Britannia) with the market leader in the residential carpet sector in the UK (Headlam Group Plc), a new traceable wool scheme that already includes brands such as Harrison Spinks and Devon Duvets and is being extended further to a major new customer in the coming months, plus numerous other new products such as a stunning 100 per cent British wool kilt cloth from Lochcarron of Scotland.

Nigeria has been unable to tap into the world cotton market estimated at $38.45 billion last year, says a Nation Online report. As per a Research and Markets report, the global cotton market is expected to hit $46.56 billion by 2027, with a compound annual growth rate (CAGR ) of 2.74 per cent within this period.

The Africa Cotton Market is expected to register a CAGR of 3.5 per cent from 2020-2025. The West Africa region comprises 12 cotton-producing countries, namely Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Côte d’Ivoire, Ghana, Mali, Niger, Nigeria, Senegal, and Togo. It produces about 2.5 million tonne of cottonseed, which is 5.8per cent of global production.

As per International Trade Centre statistics, Nigeria exported 3,108 tons of cotton seeds at $2.104million in 2020. The Central Bank of Nigeria (CBN) is working hard to increase cotton production. This year, the bank launched the Anchor Borrowers program that benefitted almost 130,000 cotton farmers.

Foreign buyers of garments and textile expect will increase sourcing from the Philippines to $1.2 billion this year, says Robert Young, President and Chairman, Foreign Buyers Association of the Philippines (FOBAP). Besides, easing quarantine restrictions, Philippines’ orders are growing with additional purchases due to Vietnam’s ongoing lockdown, adds Young. Orders from Myanmar are also shifting to Philippines, he adds. However, the Philippine garment and textile industry is still being threatened by unprecedented supply chain disruptions in the US that hamper the US economic recovery plan.

FOBAP is also one of the signatories of the appeal letters issued by the American Apparel and Footwear Association (AAFA) to the Biden administration. The letters urge the US government to look at using other tools beyond the tariff as trade leverage. The group also welcomed the introduction of the Ocean Shipping reform Act of 2021. Meanwhile, Young said major headwinds faced by the industry include empty clothing shelves, price increases of the products, lesser number of shoppers, outdated fashion items, aside from store closures and workers being terminated.

An important part of its manufacturing sector, the textile and clothing sector plays a crucial role in ensuring the economic and social well-being of European countries. With around 160,000 companies operating in this space and 1.5 million workers, it is an essential pillar of the economy across many EU regions. With over € 61 billion in exports, the sector has 3 per cent share of value added exports and a 6 per cent share of employment in total manufacturing in Europe.

Exports surge 49 per cent in Q2

The industry has recovered from the pandemic’s impact and surpassed 2019 growth levels. In Q2, FY2021 Q2, the European textile industry grew 3.3 per cent, while the clothing sector surged 7 per cent during the quarter. The European Union’s trade balance for the sector also improved during the quarter shows a report by Euratex. Compared to the same quarter of previous year, Europe’s textile and clothing exports boomed 49 per cent while imports declined 26 per cent on account of declining imports from some countries like China and the UK due to Brexit and weak demand in Europe.

The sector’s recovery also stabilized employment in the region. Compared to pre-pandemic levels, decline in employment in the textiles sector was restricted to 4.4 per cent while the decline in clothing sector was 11.8 per cent. New jobs in the textile sector grew -0.2 per cent quarter-on-quarter in Q2 FY2021 while jobs in the clothing sector recorded a -1.2 per cent growth in the sector.

Shipping, raw material prices threaten growth

However, higher shipping costs and increase in raw materials and energy prices threaten to derail this fragile growth by the industry. In particular, energy costs have increased over three times since the start of this year. Prices of carbon dioxide have risen above €60 since the announcement of the EU’s “Fit for 55” package. This has impacted the sector’s competitiveness on a global level. It has also threatened future recovery along with other factors including labor and equipment shortage.

The current supply chain and energy problems may disrupt the sector’s current recovery, says Dirk Vantyghem, Director General, Euratex, which ensures a favorable environment within the European Union for design, development, manufacture and marketing of textile and clothing products. Alongwith other EU institutions and European and international stakeholders, Euratex also focuses on developing an ambitious industrial policy, effective research, innovation and skills, free and fair trade, and sustainable supply chains.

To sustain its current growth, the industry needs to adopt sustainable production on a global scale besides proposing measures to avoid carbon leakage in the upcoming EU Textiles Strategy, Vantyghem sums up.