Ongoing political crisis in Europe, Sri Lanka and Pakistan, rising energy and other prices in Russia and other EU countries, and ripple effects from the COVID-19 pandemic, are having a deeper impact on the Indian textile industry, says Seshadri Ramkumar, Professor, Texas Tech University, US. The textile industry in India was in a bind due to rising cotton prices and taking heed the Indian government has slashed import duty on cotton for a specific period effective from April 14 to September 30, 2022. The news was welcome by the industry as they feel the domestic cotton market will now have to offer competitive prices for cotton.

High cotton prices causes 20% drop in production

In past one year, cotton prices had gone up almost 80 per cent which had badly affected the textile industry’s margins. Most firms were finding it tough to pass on the surge in raw material costs to their consumers. Most of India’s cotton cultivation is dependent on monsoon, which is mostly erratic. Gujarat is the country’s largest producer of cotton, with Maharashtra, Punjab, Haryana, Rajasthan, Madhya Pradesh, Andhra Pradesh, Karnataka, Tamil Nadu, and Odisha being the other producers. As per Cotton Association of India, price of ICS-105 variety of cotton in Gujarat was up almost 70 per cent from previous year. As for other varieties, the rise was nearly 80 per cent. The Ministry of Agriculture has estimated that cotton production will dip by over 3 per cent in the 2021-22 crop year.

The rise in cotton prices created havoc in Indian textiles sector with production declining and work in mills reducing each day. The political crisis in Sri Lanka has led to the diversion of many apparel orders to Tiruppur. However, the high cotton price in India complicated the situation, said Velmurugan Shanmugam, General Manager, Jayalakshmi Textiles.

Mills demand slash in import duty

With weavers unwilling to pay higher prices for cotton yarn, production in many Indian mills dropped by 20 per cent resulting in loses, Shanmugam explains. The present situation is worse than 2011 when cotton prices were steeper, he adds further. In fact, the past 15 months witnessed companies failing to meet advance order commitments, which is reflecting on their cash flow. Moreover, the garment industry is ruled by MSMEs which are incapable of bearing the burden of high input costs. To help MSMEs cope with liquidity problems, exporters reached out to the Finance Minister, seeking a hike in individual loan limit by up to 20 per cent under the Emergency Credit Line Guarantee Scheme (ECLGS). Textile mills had been urging the government to slash 11 per cent import duty on cotton to help create a level playing field with competing countries like Bangladesh, Vietnam, and Indonesia.

Efficient management, government support required

Rise in prices, and political crisis in some parts of the world has been affecting Indian millers and apparel makers. With reduced crop size in the US and other markets, global cotton prices have been up from 85 cents per pound during the previous season to 120 cents/pound during the cotton season of 2021-22.

Consumers are also concerned about the rising energy cost due to probable embargo on Russian gas and oil by EU countries. They are witnessing the ripple effects of the pandemic in Sri Lanka whose economy has collapsed due to mismanagement for over a decade and heavy foreign debts. Political crisis in Pakistan and Europe due to Russian invasion of Ukraine is further adding to the industry’s woes.

To navigate through this situation, the global textile sector needs to maintain their stock carefully, urge for adequate government support, manage workflow efficient and monitor global situation carefully, Sheshadri sums up.

Consumer prices in the United States increased by 8.5 per cent in March compared to a year ago, according to the monthly report by the Bureau of Labor Statistics.

Compared to February, prices increased by 1.2 per cent in March  on top of a 0.8 per cent rise in February.

Footwear prices grew by 6.6 per cent in March, year over year, according to data from the Footwear Distributors and Retailers of America (FDRA). This marks the third-fastest year over year increase in about 33 years, trailing behind February’s 7 per cnet increase and May’s 7.1 per cent increase.

The prices of men’s footwear surged by 5.1 per cent while women’s footwear increased by 5.8 per cent and kids’ footwear prices boosted by 11 per cent The rise in prices could be attributed to a variety of factors, especially heavy tariffs on consumer goods like footwear.

High tariffs and epic freight costs are now tripping up consumers with record high footwear prices, says Steve Lamar, President and CEO, AAFA. Apparel prices grew by 16.3 per cent year-on-year in March, making in the standout category for online inflation.

The first operational investment company dedicated to African heritage emerging brands, Birimian and Trail, the European asset management firm scaling up successful and promising entrepreneurs, have teamed up to support African fashion houses and premium emerging brands.

In its first phase the alliance will focus on an investment by Trail in Birimian’s dedicated investment vehicle. This financing will support Birimian’s ongoing investments in African brands, focused on building capacity and supporting brand development. The second phase will involve the creation of a long-term investment company co-managed by Birimian and Trail, “Birimian X Trail”, which will invest at least €5 million each year in a carefully selected portfolio of brands. The first close of this investment company is expected by year end.

Birimian and Trail’s partnership also offers an innovative alternative to the traditional private equity model, designed to support long term brand development. The new model will create increased value within African fashion – benefitting designers, investors and textile manufacturers alike.

Cone Denim® plans to launch a new US grown hemp denim collection at the Kingpins Amsterdam Show from April 20-21, 2022.

As per a Textile World report, to be launched in collaboration with expert hemp processing innovator, BastCore, Cone Denim’s US Hemp Collection includes a range of fabrics featuring classic 3×1 and comfort stretch to modern workwear constructions. The collection further expands upon Cone’s sustainability and traceability practices, driving the future of the industry. The proximity of the hemp, indigo, and cotton crops in the U.S. to the company’s mills in Mexico is also key in creating the smallest environmental impact and footprint possible.

Steve Maggard, President, Cone Denim says, BastCore’s innovation of American hemp opens great opportunities to create sustainable denims made from US sourced agriculture products located in close proximity to Cone’s manufacturing operations in Mexico.

An Italian Pavilion of 17 machinery manufacturers will be organized by ACIMIT, the Association of Italian Textile Machinery Manufacturers, and the Italian Trade Agency at Techtextil North America in Atlanta from May 17-19.

  The ACIMIT companies to participate in the exhibition include 4M Plants, Aeris, Arioli, Computer House, Fadis, Flainox, Guarneri Technology, Ima, Kairos Engineering, MCS, Ramina, Siltex, Stalam, Testa and Willy.  

US textile sales exceeded $64 billion in 2020, with approximately 300,000 workers and about 15,000 companies. The industry’s strength lies in both cotton and manmade fibres, and a wide variety of yarns and fabrics, says ACIMIT

  From January-September 2021, Italy’s sales to the US surged by 74 per cent in value to €93 million compared to the same period of the previous year.

Men’s fashion label Jack & Jones plans to increase the use of Tencel in its collection. As per Carved in Blue report, the brand is among the first to use carbon-zero Tencel ™ Lyocell. For these fibers, Lenzing first reduces the environmental footprint as much as possible, and then offsets the impact that cannot be avoided. The result is a raw material with a net-zero carbon footprint.  

These carbon neutral fibers are being used in a new range of Jack & Jones jeans. For the Tim Original CJ 415 and Tim Original CJ 515, 38 percent carbon-zero TENCEL™ is blended with cotton and recycled elastane.  

Mikkel Hochrein Albrektsen, Creative Buying Manager, Jack & Jones – Jeans Intelligence, says, The Tencel™ lyocell fiber adds comfort without compromising on the look. The carbon-zero initiative by Lenzing is helps us give back what we take from the environment.

A leading fashion house, G3+ Fashion has ventured into the casual wear segment - helping customers get everything they need to complete or reinvent their wardrobe from a single destination.

One of the leading players in the fashion industry, G3+ Fashion not only houses a plethora of exceptional readymade outfits, but also creates customized  pieces tailored to suit a customer’s specific requirements. Incorporating the plushest fabrics and magnificent designs, all its apparels are designed to seamlessly blend comfort with glamour. Through its Video Shopping feature, G3+ Fashion connects both its local and global customers with trained sales professionals, who guide them in finding the perfect ensembles with precision. 

 G3+ Fashion also offers an exclusive ‘G3+ Video Shopping’ facility  which allows local as well as global customers to browse through all their collections live from the convenience and safety of their own homes, via video calling platforms such as FaceTime, Skype, and WhatsApp. This unique feature was started to banish the scepticism about online shopping from the minds of shoppers, by providing them with a virtual in-store experience that goes above and beyond the realms of ordinary online shopping. 

Bangladesh’s RMG exports increased 24 per cent to $4.21 billion during the July-February period of FY2021-22. As per a Textile Today report, Bangladesh has been reporting a significant improvement in garment exports since the outbreak of COVID-19. The country’s exports to the US, UK, Canada and the European Union (EU) have been surging while exports to new markets are also recording a growth of over 10 per cent.

Export Promotion Bureau’s (EPB) stats show, Bangladeshi entrepreneurs exported garments worth $4.21 billion to new markets during the eight-month period. Their exports amounted to BDT 38,290 crore in domestic currency while export earnings surged 23.61 percent ahead of the same period of the previous financial year. Mohammad Hatem, Executive President, BKMEA says, Bangladesh is emerging as the most preferred garment supplier amongst other apparel exporting countries like Vietnam, Cambodia, Myanmar etc.

In the first eight months of the current financial year, Bangladesh exported RMG products worth $ 27.49 billion. Of these, 13.65 billion worth of products were exported to the EU countries, 5.77 billion to the US, 2.93 billion to the UK and 0.82 billion to Canada. Among the new markets, exports to Japan totaled $730 million during July-February FY2021-22 while garments worth $560 million were exported to Australia.

Russia’s RMG imports increased 35.30 per cent to $480 million in the first eight months of the current financial year.

India and the European Union a comprehensive FTA deal to raise bilateral trade to over $220 billion in five years. Trade negotiations between the two nations halted in 2013 over the movement of Indian professionals and high Indian tariffs on European farm produce. The India-EU FTA will make it easier for both countries to negotiate for a comprehensive trade deal within this framework, says Ajay Sahai, Director General & CEO, Federation of Indian Export Organizations (FIEO).  

 On April 2, Piyush Goyal, Commerce Minister said, India plans to sign new FTAs with the UK, Canada, Israel, Gulf Cooperation Council, and the EU. It recently signed the India-Australia Economic Cooperation and Trade Agreement (ECTA). According to him, the India-EU FTA will double bilateral trade between the two partners from the existing $110 billion.

  The India-UK FTA may materialize happen before the EU deal as UK does not wish to resort to interim deal. The current value of bilateral India-UK trade is $50 billion. Negotiations on this FTA are set to start before the end of the year.

Bangladesh Denim Expo plans to organize a physical edition after a two-year gap in the International Convention City, Bashundhara (ICCB) in Dhaka from May 10-11, 2022. As per Spin Off report, the 12th edition of the show will focus on the theme ‘Beyond Business.’  It will show industry players new opportunities to be successful while offering sustainable solutions.

Scheduled to host 79 exhibitors, the show will include both local and international participants showcasing their latest fabrics, garments, threads, machinery, finishing equipment and accessories. They will represent the Bangladesh denim industry that considers itself the second-largest denim exporter to Europe and the third largest one to the US.