SIMA’s newly elected chairman Ravisam, has urged the government to expedite the process of signing FTAs with new countries. He says, though most global brands and buyers prefer Indian textiles and clothing for their robust quality and other advantages, India has not been able to increase export orders due to the lower prices offered by countries like Bangladesh, Vietnam, Pakistan, Cambodia, Sri Lanka, African countries, etc. Also, the SAFTA agreement signed by India long ago allows Bangladesh and other countries to dump their garments in India at zero duty. Therefore, India needs to introduce the ‘Yarn and Fabric Forward Rule’ rather than value addition and Rule of Origin help us gain advantage, points out Ravisam.

India’s textile exports have suffered due to various tariff and non-tariff barriers, coupled with logistic and external trade policies like GST, opines Ravisam. On the other hand, with $30 billion exports, Vietnam has emerged as a leading exporter to countries like China, Korea, Japan and Taiwan. Vietnam is also world’s leading textile importers, having imported over $15 billion worth fabrics last year. However, India’s share in Vietnam’s imports is negligible. It imports yarns from India at 5 per cent duty while fabrics are imported at 5 per cent, 6 per cent and 12 per cent duties respectively. Hence, FTAs with EU, UK and Canada will ensure a level playing field for home textiles and garments, he adds.

High import duties make India’s textile exports uncompetitive

Currently, India’s exports to EU and UK at 9.6 per cent duty and to Canada at 15 per cent duty that makes them highly uncompetitive compared to countries offering zero export duties like Bangladesh, Vietnam, Cambodia, Sri Lanka and Pakistan. Therefore, Ravisam has urged the government to explore early harvesting program during pre-negotiations scoping phase of the Enhanced Trade Partnership for zero duty. India and UAE also plan to sign a FTA with the Gulf Cooperation Council countries, the second largest destination for India. To be concluded by March 2022, the CEPA agreement will create more opportunities for India.

Enhanced GST rates to surge garment prices

Racisam also emphasized the need to address duty inversion in certain segments. Being entirely seamless, the cotton value chain does not need to address any issues. However, the manmade fiber value faces duty inversion where fiber attracts 18 per cent while yarn attracts 12 per cent and fabrics and garments attract 5 per cent GST. The government’s decision to increase GST rates from 5 to 12 per cent for fabrics and garments priced below Rs 1,000 may increase the price of garments steeply. It may also have a serious impact on the handloom, powerlooom and other MSME sectors that currently form 85 per cent of India’s total textile production. Ravisam also recommends a 5 per cent GST on the entire MMF value chain. This would enable the government to refund accumulated ITC for the few fibre producers.

Duty exemption to boost cotton exports

He also urged the government to withdraw 10 per cent import duty on cotton, as the country imports only 11 to 15 lakh cotton bales against the total consumption of 330 lakh bales a year. India’s cotton imports mostly include the Extra Long Staple Fibre like American PIMA, Egyptian GIZA for producing value added products and supply to nominated business of global brand.

The total value of India’s cotton trade is Rs 75,000 crore including Rs 25,000 crores exports and provides jobs to over 12.5 lakh people he says Ravisam. Cotton prices in India during off season severely affected the MSME sector, he adds. The prices of Sankar-6 cotton price increased from Rs 41,600 - to Rs 54,500 and DCH price increased from Rs 53,000 to over Rs 1 lakh per candy. This has destroyed export commitments of fabrics, garments and made ups producers in the country. Hence, the government needs to exempt ELS cotton from import duty, he emphasizes.

According to Pakistan Bureau of Statistics, Pakistan’s exports of textile commodities witnessed an increase of 2.92 per cent during the first quarter (Q1) of the current fiscal year as compared to the corresponding period of last year.

The textile exports from the country were recorded at $3469.585 million ($ 3.5 billion) in July-September (2020-21) against the exports of $3371.376 million ($3.4 billion) in July-September (2019-20), showing a growth of 2.92 per cent. The textile commodities that contributed in positive trade growth included knitwear, exports of which increased from $779.293 million last year to $860.758 million during the current year, showing growth of 10.46 per cent.

The textile commodities that contributed in positive trade growth included knitwear, exports of which increased from $779.293 million last year to $860.758 million during the current year, showing growth of 10.46 per cent.

Likewise, exports of bedwear increased by 8.40 per cent by growing from $601.024 to $651.487 while the exports of tents, canvas and tarplin grew by 78.71 per cent, from $15.771 to $28.184, the PBS data revealed. Exports of cotton cloth also decreased by 8.49 per cent, from $499.390 million to $457.060 million.

Though a fear of lockdown looms large over the country, the continuous surge in the demand for the leisurewear – in particular track pants and stretchy leggings – is now making it difficult for UK retailers and brands to keep pace with the demand.

Many retailers have said that buying supplies in time for autumn had been tough as several garment factories in Bangladesh, Vietnam and Thailand were shut for several months owing to the pandemic. Consequently, there is already a shortage of track pants, leggings and even sports shoes in the UK.

According to a fashion analysis firm Edited, there’s been an impressive jump of 17 per cent in sportswear items bought online in last 1 month. And if a lockdown happens again, the numbers could go up further.

Asos had recently raised concerns of having less stock owing to global shortage of lot of sportswear items including jogging bottoms and hoodies. Though JD Sports has said of having enough stock to meet the demand, it did agree that quite a few brands were running short of stock as they didn’t anticipate the level of demand.

As per experts at a virtual conference on October 14 held by Sourcing Journal, tariffs are a way to put pressure on China and scrutinize China’s repression of its Uighur minority. In December 2019, both China and the US reached a Phase 1 deal according to which US reduced some tariffs and keep others, while China agreed to buy more American products and services. Though progress on the deal has stalled, the two sides say the deal is moving forward.

Many US democrats have called for a hard stance on China. According to Ron Sorini, Principal at the firm Sorini, Samet & Associates and manager of its business development, consulting, and lobbying practice, Democrats see tariffs as a way to show they’re being tough. He thinks Democrats could even escalate the trade war over China’s treatment of Uighurs.

US engaged in a campaign increasingly likened to genocide against the predominately Muslim ethnic minority in the Xinjiang region, claiming it is cracking down on extremism. Uighurs are subjected to forced labor, including in the region’s cotton fields, which produce around 80% of China’s cotton. Concerns over clothing and products containing cotton made by forced labor entering the US have prompted the Democrat-controlled House of Representatives to pass a bill requiring companies prove products imported from Xinjiang are not made with forced labor.

If passed into law, the bill would create complications for clothing companies. It’s difficult to accurately assess conditions in Xinjiang, where auditors generally can’t work independent of monitoring or interference by Chinese authorities. Several auditing firms have recently stopped working there, while companies have been urged to stop sourcing from Xinjiang entirely.

Accelerating Circularity, a burgeoning collaborative initiative, spearheaded by Textile Exchange aims to promote circular textile-to-textile supply chains, says a Sourcing Journal report. Comprising of founding members such as Gap Inc., Lenzing, Nike, Target, Unifi and VF Corp, the initiative seeks to investigate the need and materials for recycling, How can textiles be collected and prepared for recycling and how can textiles be recycled—and by whom.

The report says, states like Alabama and West Virginia accounted for 7.7 million of the 16.9 million tonne of textile waste generated by consumers in annually in the country. A combination of U.S. Census data and the initiative’s research revealed that the East Coast makes up roughly 90,000 of the 120,000 tonne of post-industrial textile waste produced in the United States annually.

Diverting these textiles from incineration and landfill can lower the apparel industry’s ballooning greenhouse-gas emissions and slash back its exploitation of virgin resources, according to Accelerating Circularity, whose work is funded by Gap Inc., Target, VF Corp. and the Walmart Foundation.

Around 35 per cent of the 86 per cent of post-consumer textiles that can potentially be diverted from landfill or incineration are ‘readily recyclable’ using conventional mechanical means because they contain pure cotton, pure polyester or materials greater than 50 percent cotton with some level of polyester but little to no elastane.

Another 45 percent is ‘potentially recyclable,’ meaning it can be recycled with the commercialization of technologies that have a broader range of input specifications, including up to 20 percent elastane, manmade cellulosics in a blend and nylon. The rest is ‘not likely recyclable’ because their coatings, finishes or multi-material composition make them difficult or impossible to process using existing means.

As per a Workers Rights Consortium (WRC) and the Center for Global Workers’ Rights (CGWR) survey, buyers are urging suppliers to lower their prices for the same product by 12 per cent compared to previous year. Almost 75 factories in 15 countries, 65 per cent of suppliers reported that buyers have demanded price cuts on new orders that are bigger than the year-over-year reductions they usually ask for. As a result, 56 per cent suppliers have been forced to accept some orders below cost, with the majority anticipating they’ll have to do so in the long term.

The survey states, suppliers now have to wait an average of 77 days after they ship new orders to receive their payments. The average waiting period was 43 days, and only 34 percent of buyers took longer than 60 days.

At the same time, most suppliers now handle less than half the order volume relative to the same period last year. If evaporated volumes, discounts and drawn-out payment terms continue, 57 per cent said it is extremely or somewhat likely they will have to shut down business. Already, 75 per cent factories said they have had to reduce workers’ hours because of current buyer purchasing practices, with roughly a quarter of suppliers cutting working time by more than 25 per cent.

On average, suppliers have dismissed 10 per cent of their workers, and they anticipate letting go another 35 percent if nothing changes.

China's Shein is aiming squarely at the "Gen Z" social-media generation, using influencers on Instagram and TikTok, and discount codes, to attract younger shoppers, says Euromonitor International.

Nanjing-based Shein, founded in 2008, offers low-cost styles, uploading hundreds of new designs to its app every week. The price for a dress is around half that of Zara, according to a recent Societe Generale price survey.

The COVID-19 pandemic has boosted online sales at retailers, giving online-only players like Shein, Britain's Asos and Germany's Zalando an edge over Inditex-owned Zara and H&M which have big city-centre stores.

In September, the Shein app saw 10.3 million downloads globally from across the App Store and Google Play, Sensor Tower data shows. In comparison, H&M's mobile app hit about 2.5 million, and Zara saw 2 million.

To date, Shein has reached 229.4 million downloads, versus H&M's 123.5 million and Zara's 90.6 million, the data shows.

According to the statistics of CCFGroup, operating rate of spandex downstream mills continues moving up after the National Day holiday, with that of covered yarn plants, warp knitting units, braid mills and circular knitting plants in Zhejiang, Jiangsu and Guangdong at around 60-90 per cent and that of lace knitting plants in Fujian and circular knitting plants in Foshan, Guangdong at around 50-60 per cent.

Operating rate of fabric mills is higher than anticipation after the National Day holiday. Sales of fabrics are smooth and even hot in some plants. Sound demand pushes up run rate of downstream mills to historic high. Order schedule can continue into H2 Nov in many fabric mills.

Affected by moderate demand since the middle of Q3, supply of spandex exceeded demand before but turned to behind demand at the end of Q3. Price of spandex climbed up mainly supported by surging downstream demand. In addition, ascending cost was another upward momentum.

Operating rate of spandex has been around 90 per cent now, but supply of conventional descriptions remained tight after earlier stocks decreased. Price increment kept increasing in the second half of Sep. Supply of spandex 20D-40D was tight. Stimulated by rising cost and low stocks, mainstream spandex companies such as Huafon, Xinxiang, Tayho, Huahai and Aoshen increased price by around 2,000yuan/mt from Oct 15 amid tight supply and restricted large orders.

Organized by World Textile Information Network (WTiN) and sponsored by RICOH, rhe textile and apparel industry’s pioneering virtual trade show, Innovate Textile & Apparel, features over 160 exhibitors from 26 countries. The show went live on October 15 and will run until 30 October.

The Innovate Textile & Apparel virtual trade show provides an opportunity for companies from across the globe to showcase innovation in manufacturing technology and materials, network and forge new partnerships, while respecting travel bans and safety measures brought on by the COVID-19 pandemic.

Based around technology and materials, the event features manufacturers of textile technology as diverse as manmade fiber production through to garment assembly and finishing, alongside material producers for apparel, sportswear, personal protective equipment (PPE) through to smart fabrics.

With over 10,500 visitors from 50+ countries, the Innovate Textile & Apparel virtual trade show allows attendees to explore two virtual halls with separate but with interlinking themes: technology and materials. The Technology Hall will showcase technological innovations, textile machinery and software, whereas the Materials Hall will display innovations in fibers, yarns, fabrics and apparel.

Exhibitor’s virtual booths contain everything from videos of machines operating to fabric technical specifications, and booth visitors can make appointments or use a chat option to communicate with exhibitors. The platform allows for lead generation and visitor insight.

Besides a conference and a multitude of seminars, the event also hosts daily roundtable discussions with key industry figures across wide ranging topics from biodegradable materials, PPE, and sustainable finishing to reshoring, localized manufacturing and the digitalization of the textile & apparel value chain.

The event is sponsored by global technology company RICOH. The Innovate Textile & Apparel platform itself was designed and built by WTiN so that a customized, flexible experience can be provided to exhibitors and visitors, along with the best and most reliable technology.

The CMP garment sector in Myanmar has been hit hard by the coronavirus impacts amid the global demand slump, said Myanmar Garment Manufacturers Association (MGMA).

The import of CMP raw materials declined to $2.17 billion in the past financial year 2019-2020, from $2.37 billion recorded in the 2018-2019FY, according to the Ministry of Commerce. Myanmar manufacturing sector has mostly concentrated in garment and textiles produced on the Cutting, Making, and Packing basis, and it contributes to the country’s GDP to a certain extent. At present, some CMP garment factories have shut down on the reason for the lack of raw materials due to the COVID-19 negative impacts, leaving thousands of workers unemployed. To deal with the shortage of raw materials for the CMP garment factories in Myanmar, the Ministry of Commerce, the Myanmar Garment Manufacturers Association and the Chinese Embassy in Myanmar, the China Enterprise Chamber of Commerce in Myanmar (CECCM) have jointly imported raw materials through border trade channels and airlines. However, import values of raw materials by CMP businesses in the last FY dropped by $197.7 million compared to a year-ago period.

Exports of garments manufactured under the cut-make-pack (CMP) system were valued about $4 billion around the past eleven months in the last financial year 2019-2020, said the Ministry of Commerce.