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Despite the country facing a lockdown, Cotton Association of India (CAI) has retained its cotton crop estimates for the season 2019-20 at 354.50 lakh bales. Atul Ganatra, President of CAI maintains there is likely to be a good demand coming from Bangladesh as soon as the lockdown will be over. The association also expects good demand from China as well. Exports will also pick up when the lockdown ends

Currently, cotton procurement in the country has been stopped. Even Cotton Corporation of India (CCI) has stopped the purchase of Minimum Support Price (MSP) cotton because APMC markets are not working. CCI will start procurement of cotton once APMC markets open.

The cotton that is lying in the field has not been plucked. This is mainly due to manpower constraints. We do not know what the position of the crops will be. We will know in times to come if the crop is destroyed or not. We will know about it mostly in 10 days or so.

Wednesday, 08 April 2020 09:39

Levi's opens most stores in China

Levi Strauss & Co hased open majority stores in China, where the COVID-19 outbreak first emerged in December, with sales recovering on a weekly basis and digital sales rising last month. The company has also reported better-than-expected earnings and revenue for the first quarter ended February 23, even as sales in Asia declined due to store closures, sending Levi's shares up about 3 per cent.

Like many US retailers, Levi's has been hit by the COVID-19 crisis as lockdowns in China and the United States to curb the spread of the infection forced store closures. Levi's has stood through the world wars and the 1918 flu pandemic in its 167-year history.

The retailer has been investing more in its e-commerce business, adding features designed to attract young shoppers, to cope with decline in foot traffic to malls and department stores due to a shift in shopping preferences.

Levi’s now plans to furlough all its retail store staff in the country, a step taken by many retailers as they extend store closures. The company had about 7,300 US employees as of Nov. 24, according to its annual filing. It had borrowed $300 million on a credit facility to boost its balance sheet.

India - which has about 4,070 confirmed cases and at least 107 deaths - has pledged a $23 billion stimulus to provide food and cash to millions of its poorest citizens, along with $4 billion drawn from a welfare fund for construction workers. It has also asked companies not to fire workers or cut pay.

According to a 2019 study by the University of California, India’s garment sector employs at least 12 million people in factories, but millions more work from home - mostly women and girls from minority or marginalised communities.

About 85 per cent of home workers exclusively work in supply chains that export to the United States and European Union, it found.

India’s garment factories closed suddenly last month after the government announced a lockdown to run until Apr. 14, and officials have hinted at an extension until the end of April.

Home worker Anitha Nandakumar has been calling her factory agent every other day to find out when she will be paid for the work she completed in February stitching leather shoe uppers.

Despite the poor pay and long hours, several women said they had seen little choice but to work from home as their familal responsibilities meant they were unable to travel to a factory.

For those who were widowed or had a sick husband, the work provided the family’s only source of income, said Sonia Wazed, head of programme for the Society for Labour and Development.

The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) and Pakistan Hosiery Manufacturers & Exporters Association (PHMA) have appreciated the government's decision of exempting the industry from lockdown in view of providing financial relief to the workers. They pledged to take strict precautionary measures as directed by the government and health experts.

According to PRGMEA chief coordinator Ijaz Khokhar, opening the industry will retain millions of workers on their jobs, especially the women and the poor. The association also welcomed the government’s decision of releasing refunds of Rs 100 billion to the industry as this move will address the liquidity challenges faced by exporters, improving cash flow of the garment exporters and ensuring that workers will get their salaries on time.

PRGMEA regional chairman Sohail A Sheikh said orders worth millions of dollars from foreign buyers have either been cancelled or postponed. Under the prevailing circumstances, the small and medium enterprises immediately need government's financial assistance. Pakistan Hosiery Manufacturers & Exporters Association Vice Chairman Shafiq Butt suggested the government to take economic measures to keep industrial wheels running and save the livelihood of millions, including disbursement of all outstanding sales tax refunds at a fast speed.

Meanwhile, All Pakistan Textile Mills Association (APTMA) Punjab chairman Adil Bashir demanded the government should withdraw the ad hoc bills of Sui Northern Gas Pipelines Ltd (SNGPL). He also demanded extension in the last date for payment of gas bills issued for the month of March till lifting of the lockdown. Since there has been no production since March 23, 2020, therefore, there is no consumption of gas in the textile units.

India’s Buying Agents Association (BAA) recently appealed to large international companies that source apparel, handicrafts, leather goods and carpets, especially from small and medium companies in India, not to cancel export orders. The step would support the livelihoods of artisans and craftsmen.

BAA believes small and medium enterprises that rely on exports are particularly vulnerable. The association has also petitioned the government to support exporters as well service providers in the export sector. Its recommendations include exemptions in goods and services tax to all such service providers for the next six months as well as tax holiday for those with up to 10 crore turnover in exports.

BAA, formed in 2016 with the support of buying agencies and the Export Promotion Council for Handicrafts, represents buying agents that act as a bridge between overseas buyers and Indian exporters and work with key international companies. A large chunk of India’s exports across apparel, leather goods, furniture, carpets and handicrafts among other sectors, is facilitated by BAA members.

Regulations giving effect to the government’s commitment to assist ailing industries and workers through the Unemployment Insurance Fund are being gazetted. The first agreement is between the South Africa’s Minister of Labour and the National Textile Bargaining Council states that the regulations apply to all employers in the industry, not just council members, but only to those employees earning ‘wages’ and not ‘salaries.’

It guarantees an amount equal to full pay for the three-week period of the lockdown for those not working, jointly paid by employers with subsidies from the fund through its Temporary Employer-Employee Relief Scheme (TERS).

While these regulations do not specify the rand amounts, the standard industry agreements reflected that the scheme would pay out between R3,500 - the minimum wage - up to a maximum of R17,712 per worker on a sliding scale. The regulations state that the issue of relief for salaried workers is to be referred to a Rapid Response team, established to consider and resolve any unforeseen matters.

The preamble to the regulations records the intention to ensure that workers are not left destitute and to protect the industry. In order to claim, both the company and the employers need to be “in good standing” with the fund.

The secretary to the council has to open a designated bank account into which the funds will be paid out to qualifying employees. Companies must provide proper documentation for any drawdown of funds, and these must be made immediately available to the fund on request.

The agreement records that post lockdown, any overtime required to make up lost production will be paid at a normal rate.

Kering has partnered with the CDC Foundation to provide personal protective equipment and other vital supplies to assist in meeting the urgent needs of healthcare workers across the region. Kering and its Houses (Gucci, Saint Laurent, Bottega Veneta, Balenciaga, Alexander McQueen, Brioni, Boucheron, Pomellato, DoDo, Qeelin, Ulysse Nardin, Girard-Perregaux, as well as Kering Eyewear) will collectively donate $1 million to the CDC Foundation, to support the valiant efforts of frontline healthcare workers in the United States, particularly in highly impacted states such as, New York, New Jersey, California, and Florida, and locations in Latin America.

The CDC Foundation is the independent nonprofit created by Congress to extend the lifesaving work of the Centers for Disease Control and Prevention (CDC) through public-private partnerships. As the global coronavirus pandemic escalates rapidly across the United States, and around the world, there is a growing concern that U.S. community health needs will rapidly outpace capacity. The CDC Foundation’s Emergency Response Fund allows for the deployment of flexible resources to fulfill priority response needs where appropriated funds are not available or cannot be deployed quickly enough. Thus, Kering’s contribution hopes to create complementary impact alongside government in ways that will protect and provide lifesaving support as together we work to combat this unprecedented pandemic.

In addition, with the stance of aiding the American fashion industry impacted by the pandemic, Kering will support A Common Thread, the CFDA/Vogue Fashion Fund initiative, as well as ‘Your Friends in New York™ Want to Help.’ an organisation launched by Kerby Jean-Raymond with a mission to create rapid local impact within the community. These contributions follow those already made by Kering in France, Italy, and China in recent weeks and the production of over 1 million surgical masks and gowns for healthcare personnel.

TAI completes 81 years marks it as Incorporation DayThe Textile Association (India) today completes 81 years of its inception. To celebrate this landmark event, the association is celebrating April 8, 2020 as its ‘Incorporation Day. Established on April 9, 1939, by ten visionary technocrats, TAI was formalized along with 126 likeminded technocrats and managers. The objective of the association is to facilitate free exchange of information on technical cooperation. It aims to create a common platform for technocrats and leaders from small and big industries to come together to bring laurel to the industry and country at large.

Speaking f on the occasion, Ashok Juneja, National President of the association congratulated founders, trustees, predecessor presidents, committee members and the entire textile industry for their support over the years. “It is a privilege to lead such a prestigious association which has had eminent presidents during its glorious journey from Late Dr Nazir Ahmed to Late Homi Modi; Late Dr Vikram Sarabhai; Late N V Ullal, Late Maj R P Poddar, JJ Randheri, MK Mehra, RK Dalmia, RC Kesar, Mathivanan, Dr PR Roy and many other eminent personalities,” he said.

Awarding eminent dignitaries

One of the largest national associations for textile professionals TAI currently has over 25,000 strong members through 26 affiliated chapters, spread throughout the length and breadth of the country.

In all these years, TAI, has conferred prestigious awards and honorary memberships to highly respected personalities like Nazir Ahmed, Kasturbhai Lalbhai, K M D Thackercy, Gulzarilal Nanda, Homi Modi, GD Birla, GD Ambekar, Vikram Sarabhai, Arvind N Mafatlal, Naval H Tata, Padampat Singhania, Neville Wadia, Maj. R P Poddar, Gaur Hari Singhania, Abhaykumar S Kasliwal, Mukesh D Ambani, K K Birla, Dhirubhai H Ambani and other distinguished people who have contributed towards the growth of textile industry in India.

Facilitating professional growth

TAI provides opportunities for professional growth of technologists in the Indian textile industry across all sectors. The association organises seminars, conferences, workshops, refresher courses and exhibitions of textiles and allied machines for the benefit of members. These activities are held across the country with the help of all 26 federal units, which are autonomous in their activities.

Conferences and publications

Till date, TAI has organized 75 Annual All India Textile Conferences (AITCs) at an international level. These conferences focus on contemporary and innovative topics with high profile speakers. Eminent industrialists, policy makers, reputed professionals and renowned experts from different parts of the world have presented their research papers at these conferences.

TAI also publishes small tablets and textbooks for the benefit of practicing professionals and students. It publishes study materials to help members acquire textile qualifications by appearing for standard examinations.

Internationally, TAI is the founder member of the Federation of Asian Professional Textile Associations (FAPTA). TAI’s national president is one of the members in International Advisory Committee of FAPTA. TAI is also the co-sponsor of India ITME Society and the national president is one of the vice chairmen on their steering committee.

Future plans

In future, TAI aims to stay more connected with the industry through various ground activities organised by different units across the country. One such initiative started by the association includes an interaction through JTA. “We welcome more and more industry engagement through JTA. Readers can send us their contributions as expert articles, researches, reports and developments in their work space. This will add to everyone’s knowledge,” Juneja informs.

“Our vision is to be internationally renowned as a leading association of textile technocrats and professionals promoting scientific and technological knowledge and training with benchmarking performance,” Juneja added.

Zahid Mazhar, Chairman – All Pakistan Textile Mills Association, Sindh-Baluchistan Region, has appreciated all the positive steps the provincial and federal governments have under taken to control wide spread of Coronavirus (COVID-19) Pandemic and to combat its adverse impact.

He said that due to drastic slowdown of domestic as well as international markets and delay in receipt of payment from them in addition to cancellation of export orders even from big organizations and large scale buying houses, export oriented textile industry is facing worst ever liquidity crisis.

He said the Coronavirus (COVID-19) Pandemic is having extremely negative impact on Pakistan’s economy. Mr. Zahid Mazhar said that though the Government has taken some positive steps like deferring loan repayments and speeding up of refunds but it will fall far short of keeping the industry afloat. He further said that drastic situation needs drastic measures to be taken to save our export oriented textile industry from the negative economic impact of Novel Coronavirus (COVID-19) as it is showing adverse impact on exports. The government has to save lives together with livelihood.

He demanded the government to provide immediate relief in the best interest of industry, economy and the people as the impact of slowing of economy and lockdown can only be shielded by the industry for a month or two beyond which there will be no capacity to retain workers leading to massive unemployment. He also emphasized that currently there is an acute shortage of liquidity and it is impossible for the mills to pay the utility bills. He requested the government to come to the rescue and immediately announce the deferment of payment of gas and electricity bills by the industry for a period of atleast one month. He further demanded deferment of payment of interest on short term loans for at least three months. He also pointed out the dire need to immediately bring down the rate of interest to 5 percent.

He requested the Government of Sindh to allow running of those textile mills which have labour residing within their residential colonies as well as those export oriented units which have export orders in hand.