Textiles will be one of India’s top priority areas in the free-trade agreements (FTAs) being negotiated with more than a dozen countries, says NarendraGoenka, chairman, Apparel Export Promotion Council (AEPC). These FTAs can offer a great opportunity for growth, and the government is pushing hard for it. AEPC has also made a case for apparel to be included in the ‘early harvest’ of the FTAs. The commerce ministry is pushing for apparel exports, he adds.

Goenka opines, high raw material prices have been a major challenge for the apparel industry. Quoting government data, he adds, the sharp rise in cotton prices has resulted in 97-month high inflation of 8.84 per cent for clothing and footwear products.. Customers adjusted to the rising prices uptoa certain point, but now prices are out of control. They were seen resisting the price rise during the upcoming spring season sales of 2023.

The autumn edition of Intertextile Shanghai Home Textiles will be a hybrid event. The physical event will be held from August 15-17, 2022 at the National Exhibition and Convention Center, The digital edition of the event will include interactive webinars, live streaming product presentations and the Online Business Matching platform along with a variety of concurrent events for in-person visitors.

As per a Home Textiles Today report, the event will showcase product categories including bedding, bath, kitchen and table, upholstery and sofa fabrics, curtains and curtain fabrics, carpets andrugs, wall, design and technics, whole home, editors and contract business

The 2021 autumn edition drew 20,106 trade buyers from 41 countries and regions and 749 exhibitors from 10 countries and regions during the three-day fair. The show also saw the return of the Belgium Pavilion, which introduced a selection of high-end and premium products in its 10th consecutive year of participation.

The upcoming spring edition of Intertextile Shanghai Home Textiles is scheduled for April 14-16.

Foot Locker has inked a partnership agreement with Reebok for the United States market.

As per the agreement, Foot Locker will “deepen” its assortment with Reebok and carry select exclusive footwear styles for men, women and children in its company-owned stores and e-commerce websites in the States, including basketball shoes from Allen Iverson and Shaquille O’Neal.

Foot Locker Inc. will work with Reebok Design Group, the brand’s design and development hub, on the assortment that will be available in Foot Locker stores this fall.

This deal is similar to one that ABG made in December with JD Group, which operates JD, Finish Line, DTLR, Shoe Palace and other banners in Europe and North America. It also made a deal with Aditya Birla Fashion and Retail Ltd., or ABFRL, one of India’s leading fashion companies, to distribute and sell Reebok products through wholesale, e-commerce and Reebok branded retail stores in India, Bangladesh, Bhutan, Maldives, Nepal and Sri Lanka.

Coloreel has announced sale of six single-head units in the United States to Hirsch Solutions, the world's largest distributor of embroidery machines.

The deal is announced less than four weeks after the very successful Impressions Expo at Long Beach, Los Angeles US, where Coloreel and Hirsch demonstrated live, the unique capabilities provided by Coloreel's products and technology to several hundred interested visitors.

A Swedish textile innovation brand, Coloreel offers a groundbreaking technology for embroidery that enables high-quality coloring of textile thread on demand, unlocking a world of potential. The brand uses technology to both preserve the craftsmanship of embroidery and take embroidery to the next level. The unique solution makes previously complicated designs accessible, including gradients, textures and other stunning effects.

Incepted in 1968, Hirsch Solutions helps apparel decorators of all levels - beginners to professionals - dramatically grow their business.

The past year proved to be full of uncertainty and volatility for world cotton market. Prices reached decade high during the year as the COVID-19 restrictions relaxed and world economies reopened. However, the pandemic exerted exceptional strain on global supply chains. The situation continues in 2022 with the new Omicron variant of affecting global markets and cotton supply chain, says Jody Campiche, Vice President, Economics & Policy Analysis, National Cotton Council.

US cotton acreage to rise in 2022

In her survey titled ‘NCC Annual Planting Intentions’, Campiche says, the NCC projects US cotton acreage 7.3 per cent higher than 2021 at 12 million acre during the year. Input costs are also likely to surge on account of higher fertilizer and chemical costs. In 2022, the total area under cotton harvest in the US is estimated to be 9.8 million acre with abandonment rate likely to reach 18.9 per cent. Cotton production in the country is likely to touch 17.3 million bales with an average yield of 850 pounds per acre. This also includes 16.8 million upland bales and 438,000 extra-long staple bales.

Domestic mill use of cotton in the US is expected to rise to 2.7 million bales during 2022 crop year, says Campiche. Domestic cotton mills will continue to remain important for the US cotton industry as it accelerates new investments and adopts new technologies to boost trade, she adds.

Shipments to lag in marketing year

In the 2021 marketing year, the US cotton exports are estimated to have declined to 13.8 million bales, according to USDA’s February 2022 estimates. So far in the 2021 marketing year, exports remained strong. However, weekly shipments are lagging well behind the five-year average pace due to lack of available supply and transportation issues.

In the current marketing year, cotton shipments are expected to reach 13.8 million bales. So far, 4.5 million bales have already been shipped. Compared to last year, shipments lag by 3.2 million bales while compared to a five-year average they lag by 1.1 million bales. To achieve the set target, the US needs to ship 370,000 million cotton bales weekly, adds Campiche. Decline in cotton exports in 2021 are also likely to impact US ending stocks that may increase by 1.2 million bales to 4.4 million bales, adds Campiche.

End stocks to fall

In 2022, global cotton production is expected to increase to 122.6 million as the total acreage area will increase. Similarly, global mill consumption of cotton is expected to increase to 125.9 million bales, leading to a 48.3 million bales rise in world cotton trade, Campiche affirms.

In 2022, US’ total cotton consumption is expected to exceed production, leading to 3.4 million bales fall in world ending stocks to 81.6 million bales. This will further result in a stocks-to-use ratio of 64.8 percent.

Cotton prices in the US are currently rising amid a tighter balance sheet, supply chain disruptions, speculative money flow, overall increases in commodity prices, and strong demand. However, analysts do not expect the celebrations to last as additional COVID-19-related restrictions, slowing of the world economy and a decline in manmade fibers may dent cotton prices in 2022.

Over the years, Maharashtra has emerged as one of India’s major textiles powerhouse with 10.4 per cent of the country’s total textile and apparel production. As per an Outlook India report, the state accounts for 12 per cent of India’s total yarn production. It also holds India’s 17 per cent spindles capacity with around 1.66 million spindles in total.

Easy availability of raw materials, skilled manpower and lower production costs has helped Maharashtra emerge a key stakeholder and growth driver of India’s textile industry. Besides having largest area under cotton acreage, the state also has the largest number of skilled workers in the country. Equipped with required infrastructure and skills, leading textile clusters in the state including Mumbai have emerged major export hubs. The state’s robust textile policies also enhance its climatic, demographic, and geographic advantages.

New policy to focus on sustainable textile production

Attracting investments worth Rs 20 crore, Maharashtra Textile Policy 2011-17 made the concept of fiber to fashion a reality. The policy helped generate 3 lakh new employment opportunities. The new textile policy 2018-23 has set a more ambitious target of creating employment for 10 lakh new workers in the next 5 years and attracting investments worth Rs 36,000 crore.

The aim is to strengthen India’s cotton, silk and wool production and also production of non-conventional yarns in the country. It will also promote skill development and research in the sector besides emphasizing on sustainable production techniques and green energy use. Another of the policy’s focus will be filling the gap between the theoretical and practical aspects of textile education by setting up a textile-focused university for innovation and research and developing projects in agricultural universities.

Capital subsidies for minorities

The new textile policy will also provide power tariffs and capital subsidies for minority categories. It will grant various benefits to women through programs dedicated to developing and supporting women entrepreneurs. The policy also makes a provision for setting up a Textile Development Fund to counteract hassles in funding. The fund will be collected from government equities, selling lands belonging to the textile department, and textile enterprises benefitting from government schemes and subsidies. The textile ministry will also form a vigilance and controlling committee for verifying textile projects to complement the scheme. All these measures are expected to make the state’s textile industry more comprehensive and inclusive and enable it compete globally.

New schemes to boost market position

Maharashtra has great capacity to manufacture fashion and garment products for the foreign markets. The state has set up several textile parks in Nagpur, Dhule, Ambernath and Amravati to boost production and encourage exports. The Amravati textile has emerged one of Maharashtra key textile clusters and a focal point for realization of the state's goals. The city boasts of 24 textile parks being developed by major units. The state government also plans to offer plug-and-play infrastructure in 4,000 acres across Amravati and Nagpur. The facilities will be granted under the Magnetic Maharashtra 2.0 Initiatives launched by the state. They will also include irrigation facilities and setting up cotton processing units in these areas.

For long, Maharashtra has served as a major incubator for India’s textile culture and industries. The state is now geared up to boost its position through the new schemes and policies introduced by the government. It aims to emerge as an ideal location for textile players by combing natural advantages with forward-looking regulatory support.

As pandemic subsides in the US and consumers go for the much-needed travelling break, swimwear has gained immense attention

According to the latest official custom data of US, the country imported $1.09 billion worth of swimwear products in 2021, growing by 33.28 per cent on Y-o-Y basis.

US has also recorded a 1.87 per cent rise in swimwear imports during the year with China topping the tally with an export turnover of $ 338.56 million in the US market, noting 33 per cent Y-o-Y growth. However, China lost big share as compared to 2019 when it exported US $ 461.28 million worth of swimwear to the USA.

On one hand, China declined big time, while Vietnam, on the other hand, seemed to have grabbed China’s share…The South East Asian country clocked $300.86 million in its swimwear exports to the US in 2021, as compared to just $ 227.77 million export values earned during 2019.

Bangladesh too impressed the export fraternity with its sturdy performance in swimwear category. The country shipped swimwear worth $40.86 million to the US in 2021, growing by 48.61 per cent on yearly note and by 146 per cent over 2019.

Pakistan’s exports of textile products witnessed sharp increase of 25 per cent to $11 billion during first seven months (July – January) 2021/2022 7MFY22, according to data of the Pakistan Bureau of Statistics (PBS) released on Wednesday.

The exports of textile products were $8.76 billion in the same months of the last fiscal year.

In Pak Rupee (PKR) terms, the same has clocked in at Rs1,861 billion, up 30 per cent YoY due to 4 per cent currency devaluation, analysts at Topline Securities said.

During 7MFY22, key export driver was increase in value-added exports where knitwear segment contributed the most as it increased by 33 per cent YoY to $2.9 billion followed by Ready-made garments (+22 per cent YoY to $2.2 billion) and Bedwear (+19 per cent YoY to $1.9 billion) exports, respectively.

On MoM basis, Pakistan textile exports is down 4 per cent to $1.5 billion in Jan-2022, led by lower value-added exports segments mainly in Knitwear (down 12 per cent MoM) and Ready-made garments (down 4 per cent MoM) respectively.

Compared to last year, Pakistan textile exports are up by 17 per cent YoY (29 per cent YoY up in PKR terms) in Jan-22 led by significant recovery witnessed in value-added segments, largely in knitwear (up 19 per cent YoY), Ready-made (up 17 per cent YoY) and Bedwear (up 21 per cent YoY).

Increased volumetric growth and improved pricing were the key drivers resulting in higher exports.

The prices of Cotton, PSF and VSF prices have increased after the Chinese Lunar New Year holiday. However, as per a CCF Group report, these prices vary greatly as there are no big differences in cotton and rayon grey fabric sales after the holiday.

The mainstream price of VSF has gained by more than 1,000yuan/mt to 13,000yuan/mt since New Year's Day while that of cotton 3128 has also risen from 22,300yuan/mt to 23,000yuan/mt. The prices of cotton yarn have also increased by 1,000yuan/mt after the holiday, while the latter is just quoted up by 300-500yuan/mt and there is even smaller growth of trading price. The prices of C32S has risen from 28,500yuan/mt to 29,700yuan/mt, while that of R32S have surged from 18,000yuan/mt to 18,300yuan/mt.

To conclude, the prices of grey fabrics have not thoroughly recovered as trades of the commodity remain limited. The prices of cotton yarns have surged higher due to a rise in demand,

In its draft proposal for the financial year 2022-23, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) demanded continuation of the existing source and corporate tax rates for another five year to help the industry cope with emerging challenges. The current source tax is 0.50 per cent while the corporate tax is 10 per cent and 12 per cent for green and other garment factories respectively. The industry is facing a number of problems like liquidity, second COVID-19 wave and new virus variants. It will have to invest a huge amount of money for remediation and retrofitting of factories, says BGMEA.

The industry is facing challenges like a 2.22 per cent decline in prices, increase in production costs and freight and other utility changes. It is also facing an erosion of duty benefits in major markets like the EU. To help the sector face these challenges, the current source and corporate tax rates need to be maintained. Value added taxes for subcontracting factories also need to be withdrawn in addition to the existing 10 per cent advance income tax on cash incentives given by the government against export earnings.

BGMEA also demanded a waiver of the VAT facility, relaxation of the provision of mandatory inclusion of harmonized system of codes in bond licence in releasing imported raw materials under the bonded facilities. The BGMEA also proposed allowing import of industrial racking system, industrial thermostat dehumidifier and other safety equipment with a reduced tax rate to secure more global orders, arguing that the buyers are putting pressure to install the system.