Leading fashion brand Lululemon has collaborated with leading sustainability material manufacturer Genomatica to create a lower-impact, plant-based nylon. As per an Apparel Resources report, the initiative will help Lululemon replace conventional nylon which forms the largest volume of synthetic material used by the brand in its products as of now.

Genomatica uses biotechnology and fermentation to convert plant-based ingredients into widely used chemical building blocks, like those used to make nylon. These building blocks are converted into pellets and yarns, and the two companies will be working closely with Lululemon’s fabric supply chain to incorporate this material into future products.

Through this collaboration, both the companies seek to create positive change within the $22 billion global nylon market by building more sustainable supply chains. Calvin McDonald, CEO, Lululemon, opines, Genomatica’s bio-based innovations, along with its distinctive track record of successful commercial applications, will help the brand achieve its goal of making 100 per cent of its products with sustainable materials and end-of-use solutions by 2030

After concluding an investigation under the commerce ministry, India’s Directorate General of Trade Remedies (DGTR) has recommended an anti-dumping duty (ADD) on polyester yarn from China, Indonesia and Vietnam for five years. Experts believe, the move will protect domestic players against cheap imports from these countries.

The investigation was conducted after a complaint by domestic players. DGTR concluded the yarn dumped by these countries at cheap rates is affecting India’s domestic yarn industry. The authority recommended a duty in the range of $4 per ton and $281 per ton. The finance ministry will take the final call to impose these duties.

DGTR has also recommended imposition of duty on imports of aceto acetyl derivatives of aromatic or heterocyclic compounds, also known as arylides, from China. Formed in May 2018 as an integrated single window agency, the authority provides comprehensive and swift trade defense mechanism in India.

Earlier, the Directorate General of Anti-dumping and Allied Duties (DGAD) dealt with anti-dumping and CVD cases, Directorate General of Safeguards (DGS) dealt with safeguard measures and DGFT dealt with quantitative restriction (QR) safeguards. The DGTR brings DGAD, DGS and Safeguards (QR) functions of DGFT into its fold by merging them into one single national entity. DGTR now deals with Anti-dumping, CVD and Safeguard measures. It also provides trade defense support to the domestic industry and exporters in dealing with increasing instances of trade remedy investigations instituted against them by other countries.

Denim manufacturer Nien Hsing Textile Co is in the process of terminating 2,500 workers from its C&Y Garments, Formosa Textiles, Global International and Nien Hsing International factories in South Africa. A fifth, Glory International, sent home 1,500 workers when it shuttered last year. As per a Sourcing Journal report, Nein Hsing Textile has laid off 4,000 workers over the past year, the result of a dearth of orders from American brands, the rising cost of salaries, unrest in South Africa and an ongoing pandemic.

The company manufactures jeans for reputed brands like Levi Strauss, Wrangler and The Children’s Place. It blames the negative impact of COVID-19 and other market forces for the job eliminations. Recent wage protests also precipitated a loss in revenue by crippling the company’s production, while fluctuating COVID-19 infections and riots in neighboring South Africa following the arrest of former president Jacob Zuma contributed to an uncertain business environment that made it difficult for the company to continue operating.

Most of Nien Hsing’s output is destined for the United States, where it benefits from the African Growth and Opportunity Act’s duty-free access for thousands of products, including apparel and textiles.

In Q2 FY2021-22, online luxury fashion firm Fartech sold 40 per cent more goods than a year earlier. As per an Evening Standard report, the total value of the goods by the firm totaled $1 billion (£730 million) during the quarter. The company also increased revenues in the three months to June to $523.3 million, from $364.7 million year on year. Floated in New York in 2018, Fartech lists thousands of products on its website on behalf of brands such as Balenciaga, Burberry and Vivienne Westwood. The retailer also provides tech services to a number of companies in the industry.

The firm was founded in London by entrepreneur José Neves in 2007. It has an office in Old Street, London while a large number of the over 5,000 employees are based in the capital. The company is amongst the few luxury firms that reported higher sales recently.

As a part of its structured breeding program launched through the National Livestock Mission, the Indian government imported 199 female and 41 male Australian Merino in 2019. After successful shearing for about five months, these sheep are expected to produce a batch of lambs that will offer the softest and the finest wool for apparels. A Down to Earth report says, these lambs are expected to reduce India’s dependence on raw wool imports, and boost pastoral economy. The government plans to replicate the program in Rajasthan, a state known for its superior carpet grade Chokla and Magra wool, informs Ashok Liladhar Bist, Additional CEO, Uttarakhand Sheep and Wool Development Board

Wool consumption drops to 10 per cent

The report says, one reason for the government’s growing sheep imports is the decline in domestic wool production. Data from the Ministry of Textiles indicates, as of 2018-19, India’s average annual yield in India declined to 0.9 kg as against the world average of 2.4 kg. During that year, India produced 40.42 million kg of wool against its consumption of 260.8 million kg. This increased its dependence on raw wool imports, particularly on Australia and New Zealand.

Despite an overall rise in population, sheep numbers in major wool-producing states like Himachal Pradesh, Rajasthan, Gujarat, Andhra Pradesh and Jammu and Kashmir are declining. In Rajasthan, sheep population declined by 13 per cent from 9.1 million in 2012 to 7.9 million in 2019. Historically a wool hub, the state now also sells grains. In the last 10 years, India’s consumption of indigenous wool dropped to 10 per cent as the quantity produced is not sufficient reveals a study the Centre for Pastoralism, an initiative of Gujarat-based non-profit Sahjeevan.

Incentives can boost wool sector

Imports and crossbreeding are unlikely to resolve this issue and India needs to improve the quality of wool, say experts. The Down to Earth report says, Indian farmers also need to increase focus on sheep breeding for wool rather than for meat. The government needs to incentivize wool shearing and make it a lucrative option for farmers, says Sushma Iyengar, Founder, Kutch Mahila Vikas Sangathan, Thirdly, India needs to increase land pastures across the country. Grazing land in Rajasthan fell from 1.7 million hectares in 2007-08 to 1.6 million ha in 2017-18, shows data from the State Agricultrual Department shows, Land under grazing in other states like Gujarat is also shrinking, while in Uttarakhand and Telangana, it is out of farmers’ reach.

Decline in wool shearing can also be attributed to shepherds’ reluctance to adopt modern practices like machine shearing. These practices require uninterrupted electricity supply, which is difficult in rural areas, adds HK Narula, Head, Arid Regional Centre, Central Sheep and Wool Research Institute.

Awareness and access can boost prospects

Wool shearing in India also suffers from high machine costs. Most shearing machines are imported and cost Rs 1-1.5 lakh, adds Narula. The Ministry of Textiles and IIT-Delhi have launched cheaper versions of machines but they are still in the testing stage. Around 25 per cent farmers in Uttarakhand engage in machine shearing, as against five per cent three years ago. However, sheep care has not received adequate attention in the state.

The state offers abundant scope for better processing and marketing of wool, and even a minimum support price (MSP), like in crops, affirms Narula. Yet, wool shearing in the state fails to receive adequate attention, explains Mohammad Sharif, Former Managing Director, Jammu and Kashmir Sheep Development Board. The Textiles Ministry attributes the constraints faced by the wool sector to outdated and inadequate pre- and post-loom processing facilities, the ineffective role of state wool marketing organizations, the lack of an MSP system and no educational institute for wool technology. The Ministry urges the government to raise awareness about this sector amongst shepherds and improve their access to land pastures. The government also needs to facilitate wool marketing and ensure better prices for farmers.

The UK’s Enhanced Generalized Scheme of Preferences (GSP) poses a huge risk to Bangladesh’s apparel trade. The rule states, Bangladesh may lose duty-free access to the UK apparel market, post its graduation to a developing nation, if its apparel exports exceed the set limit. Thereafter, regular tariffs will apply to exports.

Tough times for Bangladesh textile, apparel exports

The rule may impede Bangladesh’s duty-free export facilities to the UK. In particular, it may obstruct textile and apparel exports if the export ratio exceeds 47.2 per cent. The proposed rules are similar to those stated in the EU's GSP Plus that provide GSP benefits to low-income and lower middle income countries. Under the enhanced rules, the UK market will include Vietnam, India, Indonesia, Pakistan and Sri Lanka. Bangladesh’s garment exports to this market are most likely to exceed 47 per cent after its status shift to a developing country. Hence, to continue benefitting from the GSP facility, Bangladesh needs to comply with 26 international agreements. It needs to comply with international human and labor rights, good governance and sustainability rules.

The Enhanced Framework directs countries to agree to comply with the 27 international conventions and their reporting requirements On the other hand, under the scheme’s General Framework, the World Bank classified low-income and lower middle income countries will continue to enjoy reduced tariffs on two-thirds of product lines.

Duty free access to UK market under theat

The Enhanced Framework also gives UK the right to cancel or suspend such facility for a country for reasons such as violations of human and labor rights, violation of international conventions on anti-terrorism and money laundering, violation of UN Single Convention on Narcotic Drugs and the failure to prevent illicit trade. Bangladesh fears this may prevent it from enjoying duty free access to UK market for another three years till 2029 after it moves out of the LDC status in 2026.

For Bangladesh, UK is the third largest export market for apparel products. As per Export Promotion Bureau last year, Bangladesh exported garments worth $3.7 billion to UK, which was 9.68 per cent of the country's total exports. Of this, export of woven garments was worth $1.33 billion, knitwear $2.11 billion and home textiles $96 million from the country in FY21.

Unconditional GSP facility for RMG exports

Bangladesh Commerce Ministry hopes UK will continue GSP benefits even under the Enhanced Framework. Meanwhile, they will try to get unconditional GSP facility for RMG exports with relaxation under product graduation rule. Post-Brexit, UK plans to sign more bilateral trade agreements, says Khandaker Golam Moazzem, Research Director, Centre for Policy Dialogue. The country plans to sign free trade agreements with various countries to reduce the importance of unilateral scheme. Therefore, Bangladesh needs to ensure continuation of GSP facility for three more years after even after status shift from LDC.

Hyosung has signed an MoU with the Busan metropolitan government and social venture Netspa to produce Mipan regen Ocean, a recycled nylon textile made from abandoned fishing nets.

In addition to producing Mipan regen Ocean, Hyosung is expanding investment in a depolymerization facility that will improve the purity of ingredients by removing the impurities in fishing nets. Hyosung’s goal is to produce more than 150 tons of Mipan regen Ocean per month by Q2 of 2022.

The company has also partnered with the Ministry of Environment (MOE), Jeju Provincial Government, and startup Korean-based fashion brand, Pleatsmama, to produce and launch recycled polyester made from discarded PET bottles from South Korea’s Jeju Island. Earlier this year, it launched regen Jeju, which was adopted by The North Face Korea.

Regen Jeju’s success encouraged Hyosung to expand its domestic PET collection and recycling initiative to include the city of Seoul in order to produce regen Seoul 100 per cent recycled polyester.

India’s largest clothing export business, Shahi Exports, and the Apparel, Made-Ups, and Home Furnishing Sector Skill Council (AMHSSC) recently held a skill training program for women.

As per a Textile Value Chain report, the program aimed to uplift economically backward women by training them as sewing machine operators and self-employed tailors.

The program was sponsored by Haldiram Snacks, one of India’s most renowned snack and sweets companies.

Shahi Exports has launched a CSR program to provide employable skills to Indian women. The company aims to make these women a bigger part of the skilling eco-system and to help them secure employment. The Government of India has been proactively encouraging CSR-funded skill development activities to promote skilling, reskilling and upskilling on a massive scale.

India’s biggest apparel exporter, Shahi Exports produces women’s, men’s, and children’s clothing, as well as home furnishings, and has a client list to be reckoned with, including Gap Inc., Walmart, H&M, JCPenny, PVH, and Target among others.

Piyush Goyal, Minister of Textiles, Commerce & Industry, Piyush Goyal, conducted a meeting with the Export Promotion Councils (EPCs) to have a feedback on the export performance of the sectors and also seek inputs regarding various issues.

The meeting was attended by the Chairmen and Heads of around 35 EPCs, Commodity Boards along with the senior Government officers were present in this meeting.

Raj Kumar Malhotra, Chairman, EPCH raised the issue of enhancement of rates under Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.

He requested the Minister to intervene in the matter as handicrafts exporters who used to get higher MEIS rates, factor in the MEIS incentive in their pricing and low RoDTEP rates will make their products uncompetitive.

He specially stressed on the need for enhancement of RoDTEP rates for the handicrafts sector as the handicrafts sector engages 7 million artisans and any increase or decrease in exports affects their livelihood.

He also raised issues like restoration of provision of duty free import of essential embellishments, trimmings, tools consumables for handicrafts sector; restoration of MAI provision for opening of showrooms, warehouses and marketing offices abroad and display in international departmental stores; high container charges levied by shipping lines; policy framework for B2B e-commerce and others.

Sri Lanka’s textile and garment exports increased by 28 per cent year-on-year to $2.5 billion in the January to June period, according to statistics released by the Central Bank of Sri Lanka.

As per a report by Business of Fashion, textile exports increased by 47.8 percent to $156.6 million, while garment exports surged by 30.8 percent to $2.27 billion. The two categories accounted for 56.43 percent of all industrial exports from Sri Lanka during the first half of 2021, the report said.

From January-May 2921, Sri Lanka could maintain restrict the number of COVID-19 infections that helped it gain a competitive edge over neighboring textile and garment producers struggling with major COVID-related disasters.

However, from June onwards, Sri Lanka’s infections soared and reached historic highs in August. The government has rejected calls for a lockdown or curfews to help stem this rise in infections, saying the country is on track to vaccinate everyone over the age of 18 by September.