Madhya Pradesh is attracting huge investment from Indian textile and apparel companies. In a round table conference held in Delhi, various apparel and textile firms has announced investments of more than Rs. 3,200 crore in the state.

Among them, Pratibha Syntex, a leading Indian apparel exporter, will set up a textile park for MSME units in Indore at an investment of Rs 100 crore in assistance with Apparel Export Promotion Council (APEC). Importantly, all these investments are expected to create employment of around 14,000 people.

These companies will have their plants covering major cities across the state like Bhopal, Gwalior and Indore. Now, garment units outside the industrial/textile parks will be eligible for incentives offered under the garment sector package of State Government garment policy.

For setting up of investment projects in the state, Madhya Pradesh offers immediate clearances and licenses for up to 40 services within 7 working days under the Time Bound Clearance Act.

The International Finance Corporation (IFC) has developed a web tool to help calculate resource consumption in Bangladesh’s readymade garment industry. PaCT (Partnership for Cleaner Textile) is a data-driven monitoring software that will provide real-time analytics for readymade garment factories, helping them in their efforts to improve use of resources like water and energy. Through programs like PaCT, IFC hopes to contribute toward improving sector competitiveness by promoting resource efficiency through innovative ways and evolving with global trends. IFC is a member of the World Bank Group.

Supported by Denmark, Australia, and the Netherlands, PaCT’s multi-stakeholder partnership has already helped the industry save 25 billion liters of water and 2.5 million megawatt hours of energy annually. Launched in 2018, PaCT works with 132 factories to adopt state-of-the-art efficiency and reduce water, energy, and chemical use to meet global standards.

Bangladesh is the world’s second largest clothing exporter. More than six per cent of world apparel exports originate from Bangladesh. The European Union is the largest customer of the fashion industry in Bangladesh. However, Bangladesh is expected to slow its fashion exports to Europe. In parallel, the Asian country is expected to enter the list of less developed regions in 2024.

Vietnam and India hope to boost bilateral trade of strong commodities. The two countries hope to boost trade and step up trade promotion activities and business exchanges, especially in 2020 – the year Vietnam and India mark the 48th anniversary of their diplomatic ties. India’s share in Vietnam’s imports of manmade fiber textile is 3.34 per cent. Of Vietnam’s total textile imports, India has a 2.29 per cent share. There is significant untapped potential for trade in the area of textiles between the two countries. India is one of the major material suppliers of Vietnam’s garment and textile sector. India hopes to be a reliable partner for supplying yarn, fabrics, and machinery at competitive prices. Under the India-Asean FTA most types of yarns, woven and knit fabrics can be imported duty-free from India.

Vietnam has high quality and competitive products such as agro-fishery and fresh fruits, especially dragon fruit and basa fish, which it hopes to export to Indian businesses and consumers. Besides agro-fishery products, Vietnam also has a developed garment-textile industry. However, in the context that China is suspending the operation of many manufacturing factories, Vietnam is facing difficulties in material supply for the apparel sector and has asked for India’s assistance in this field.

Linen is in vogue with growing number of young, environmentally conscious consumers. Creative minds of the linen supply chain are developing new manufacturing methods such as winter linen, formaldehyde and fluoride-free waterproof linen, denim and stretch linen as well as decorated linen with particular digital printing techniques. A new study presented during the Milano Unica fair highlighted the advantages of linen. The study presented by the Sezione Lino (linen section) of Sistema Moda Italia and the European Confederation of Linen and Hemp presented the study conducted by Centrocot. The study centered around Europe’s certified linen supply chain: the brand Masters of Linen® and it focused only around production phase of linen.

Linen is a naturally sustainable fiber which has a low environmental impact, especially when compared to other traditional fabrics such as cotton, wool, polyester and viscose. A point in its favor is that the agricultural stage doesn’t require large quantities of pesticides and fertilizers. The fact that the linen supply chain requires a lot of energy and that this comes mostly from renewable sources is another point in its favor. Linen is also highly durable, resistant, hypoallergenic, breathable, acts as a thermoregulator and comes in an array of different colors. Linen has many modern applications because it brings together characteristics recognised since antiquity, such as the fact that it doesn’t absorb humidity and that it’s naturally wrinkled, with technical performance criteria such as it being crease-resistant, waterproof and offering protection from UV rays. Nowadays, linen has a modern and sporty appeal to it thanks to its blending with other fibers and special finishing techniques.

Vietnamese companies which import feedstock and raw material from China have started looking at alternative sources. The Coronavirus has affected Vietnam’s trade not only with China but also other markets and started hurting Vietnamese businesses. The impacts include prolonged delivery times and customs clearance due to the quarantine requirements on both sides. Trade by road, rail and air with China has slumped. The epidemic has caused Chinese businesses to shut down production. Vietnam’s textile industry sources a significant proportion of feedstock from China. Since many textile plants in China are likely to be closed until the end of February, or even longer, supply to Vietnam would be hard hit. If the epidemic continues for the next one or two months, Vietnam’s economy would be in trouble. Companies, especially small and medium-sized enterprises, need support in the form of preferential loans and access to new technologies to sustain their business.

With Chinese goods not available, Vietnam has been unable to source materials, which has affected its production and exports to third markets. Many textile and footwear enterprises are therefore looking at raw material imports from other markets such as South Korea, India, Bangladesh, and Brazil.

The epidemic has had a significant impact on public health, transportation, tourism, education, and, importantly, trade and commerce.

In 2018, Cambodian exports to Japan soared 27.3 per cent while imports grew by 17.8 per cent. The country is improving its production chain to provide added value to its textile products exported to Japan. Potential products for export from Cambodia to Japan are clothes, footwear and electronics. Of Cambodia’s total exports, Japan ranks fourth with a market share of 7.7 per cent. The main products that Cambodia exports to Japan are garments, footwear, sugar, fish and seafood. Imports from Japan are mainly machinery, automobiles, electronic products, beef, iron, steel and pharmaceutical products. Cambodia’s exports have been buoyed by efforts to assist its exporters, including the simplification of export procedures and in particular the implementation of an online system to process export documents.

Cambodia is geographically located in the center of Asean and provides favorable conditions for businesses with rapid infrastructure development and fast-rising economic growth, investment, trade and tourism. Currently, there are 137 Japanese investment projects in Cambodia, mainly involved in the manufacturing of electronic and electricity components, auto spare parts, agro-industry products and food processing materials, hotels, tourism, hospitals and malls. Most Japanese factories in Cambodia are located in special economic zones, which produce a lot of products that are exported to Japan. Japanese investment in non-textile manufacturing has contributed to diversifying Cambodia’s economic base and human resource development.

Bangladesh hopes to gain from the suspension of the European GSP facility to Cambodia. Post GSP removal, buyers are expected to shift sourcing from Cambodia with rising prices of Cambodian products. And since there are similarities between readymade garment products produced in Cambodia and Bangladesh for export to the EU market, garment exporters in Bangladesh hope to increase export orders. Some orders have already shifted from Cambodia to Bangladesh in anticipation of buyers for months precluding EU suspensions of GSP. Bangladesh is the second largest exporter of readymade garments to the EU with GSP facility. However Bangladesh’ss gain from Cambodia’s lost orders would mainly comprise low cost items.

The EU has partly suspended the Generalised Scheme of Preference facility to Cambodia. The European bloc generally offers duty-free benefit to some least developed and developing countries under the Everything But Arms deal to boost trade and business. GSP suspension would put Cambodia’s apparel industry in a challenging situation as it would now need to pay 9 to 12 per cent duty on exports to the EU.

Freudenberg Performance Materials (Freudenberg) will be presenting an innovation that meets the increasing demands of manufacturers and consumers alike in the footwear market. Made from nonwoven fabric, the innovative crimping material optimally combines high permanent moldability and shape retention with flexibility and suppleness. This unique crimping material enables manufacturers to reduce their production costs while consumers benefit from increased comfort. The world’s leading supplier of innovative technical textiles will present the innovation for the first time at the Milan Lineapelle trade show from February 19-21.

Consumers are increasingly looking for ever softer, more flexible and at the same time fashionable shoes. This in turn places greater demands on shoe manufacturers in terms of production technology. Freudenberg’s innovative nonwoven-based crimping material succeeds in reconciling the demands of consumers with the associated technical challenges for manufacturers.

The advantages at a glance:

Multi-directional stretching properties

In contrast to knitted linings, the material’s multi-directional stretching properties enable uniform longitudinal and transverse stretching over the entire vamp area.

Lower production costs

Compared to conventional knitted fabric-based crimping materials, faster thermoplastic moldability means shorter production times and thus significantly reduced manufacturing costs.

Improved fitting

The crimping material offers better shaping, last-true vamp mold retention and optimum shape and stability. Even after more than 72 hours of wear, the molded vamp still retains 100 percent of its true lasted shape.

Optimum wearing comfort and greater design freedom

The material’s extremely fine fibers allow shoes to be designed that are very soft in character and provide optimum comfort. At the same time, the exceptionally high cutting-edge stability increases the range of creative design possibilities.

Reduced weight

The significantly lower weight-to-area ratio of the nonwoven-based crimping material reduces the weight of the shoe while at the same time ensuring better shape retention.

Ind-Texpo 2020 - a specialised Reverse Buyer Seller Meet in its 2nd edition, will take place at CODISSIA Trade Fair Complex, Coimbatore, Tamil Nadu from 17-19 March 2020. This one-stop sourcing platform for a variety of textiles across the value chain is supported by Ministry of Commerce & Industry and Ministry of Textiles, Government of India.

Show Highlights

• Featuring over 100+ quality importers visiting from over 25+ countries/regions

• 75+ Indian Textile companies to exhibit with the latest product offerings

• Showcasing Indian Textiles “Farm to Fashion”

• Textile Innovations showcased by selective suppliers

• Sourcing made simple under one roof

The 2nd edition will witness 100+ quality importers visiting the show from over 25+ countries and regions in their pursuit for de-risking their businesses and developing alternative sources of supplies on account of the shutdown in China due to outbreak of 2019 – nCoV.

The event showcases top quality yarns, apparel fabrics, denim fabrics, and choicest home textiles to include range of living room, bed, bath and kitchen products ‘Made in India’.

Buyers from countries including Colombia, Chile, Peru, Paraguay, Ecuador, Bangladesh, Sri Lanka, Vietnam, UAE, Middle East, Ethiopia, Kenya, etc. have already confirmed their registration to visit the show. There have also been increased enquiries from importers in EU and other countries to source Indian yarn, fabrics and home textiles.

Over 70+ Indian companies are expected to exhibit at the show with their latest product offerings and selective innovations to connect with the leading buyers from international markets.

As a part of its business matchmaking program, Ind-Texpo 2020 will also feature exclusive B2B meetings for the exhibiting companies to spend quality time with overseas buyers based on a pre-determined schedule of time slots during the exhibition.

Ind-Texpo, since its launch edition has been successful in integrating the textile value chain at a single global trading platform. Alongside the exhibition, the event also facilitates exchange of high quality market intelligence to support industry efforts to attain a competitive edge and move up the value chain with a renewed vigour and better understanding of global trade.

National Cotton Council economists point to a few key factors that will shape the U.S. cotton industry’s 2020 economic outlook.

This past year can be characterized as a year with significant uncertainty and volatility in the global economy and the world cotton market. On January 15, 2020, Trump signed the Phase 1 trade agreement with China. As part of the agreement, China has agreed to purchase an average of $40 billion in U.S. agricultural commodities, including cotton, over the next two years. However, the overall impact for cotton remains uncertain as commodity specific details have not been released.

While the Phase 1 trade agreement provided some cautious optimism for an improvement in the cotton economic situation, the China coronavirus outbreak in the early weeks of 2020 could delay China’s ability to increase purchases in the near-term. As a result, the potential impacts of the coronavirus represent a significant wildcard in the outlook for the world cotton market in the 2020 crop year.

In her analysis of the NCC Annual Planting Intentions survey results, Campiche noted that export markets continue to be U.S. raw fiber’s primary outlet. World trade is estimated to be higher in the 2019 marketing year, but the retaliatory tariffs and increased competition from other major exporting countries has led to a sharp decline in the U.S. trade share in China. Despite the continued U.S.-China trade disruptions, U.S. export sales to other markets have been very strong for the current crop year.

Sales reached the highest level in the marketing year during the week ending on February 6. While export competition from Brazil remains strong, the U.S. has had increased opportunities for export sales to other markets in the 2019 crop year. Lower production in Australia, Pakistan, and Turkey has led to higher U.S. export sales. As a result, the United States will remain the largest exporter of cotton in 2019 with 16.5 million bales.

Prior to the implementation of tariffs, the United States was in a prime position to capitalize on the increase in Chinese cotton imports. With the imposition of the 25.0 percent tariff, China has turned to other suppliers during the 2018 and 2019 marketing years, allowing Brazil, Australia, and other countries to gain market share. Vietnam is currently the top export market for U.S. cotton in the 2019 crop year, followed by China and Pakistan.

U.S. exports are projected to drop slightly to 16.4 million bales in the 2020 marketing year. For this outlook, the U.S. is assumed to export 2.5 million bales to China in the 2020 crop year as compared to an estimated 2.0 million bales in the 2019 crop year. However, with record stocks outside of China, increased production in Brazil, and a partial recovery in Australia’s production, the U.S. will continue to face strong export competition in 2020.

Based on the underlying assumptions and resulting cotton balance sheet, stable stocks outside of China, increased export competition from Brazil, recovery in Australia’s production, and low manmade fiber prices will have a bearish influence on cotton prices. A quick containment of the coronavirus and a successful implementation of the Phase 1 trade agreement would provide support to prices.