FW
After two big incidents - Rana Plaza collapse and Tazreen Fashions fire that claimed several lives, the garment manufacturing sector in Bangladesh worked towards achieving better working conditions last year. The year also witnessed positive rise in its export performance. Between January and November, garment exports registered $26.26 billion, which is already the highest figure recorded by the sector at any given time, according to data from the Export Promotion Bureau. In 2014, the sector has reported $24.53 billion in exports.
Rising exports, augurs better business prospects
Exports grew phenomenally in the months of October and November 2015, by 18.40 per cent and 14.74 per cent respectively. Buoyed by the performance, the industry is optimistic about the year ahead. Experts point out that garment business moving from China to Bangladesh, low cotton prices and the restoration of international retailers' confidence building and workers’ safety in Bangladeshi garment factories led to the positive export numbers.
As Siddiqur Rahman, President of Bangladesh Garment Manufacturers and Exporters Association points out that with most factories inspected and announced safe, 2016 should be much better.
In the year ending on July 31, 2016, Bangladesh may import a record 5.75 million bales (each bale weighs 480 pounds, or 218 kilograms) of the fibre, up 6.5 per cent from a year earlier, according to the United States Department of Agriculture. The garment makers also received positive response from new destinations this year, which accounted for about $5.5 billion of the export earnings. Of the new export destinations, Australia, Japan, South Korea, Russia, Brazil, Chile, China, India, Turkey, Mexico and South Africa are among the most promising countries for Bangladesh.
www.bgmea.com.bd
In 2016, garment exports from Vietnam are likely to increase by eight per cent. At present, Vietnam is among the top five largest apparel exporters in the world. The increase in Vietnam’s clothing exports is predicted on the basis of the country signing free trade agreements and a boost in domestic production. Vietnam’s garment exports to major markets have grown at a steady pace of 12.95 per cent in 2015 to the US; 5.96 per cent to the EU; 7.95 per cent to Japan; and 8.77 per cent to South Korea.
Vietnamese textile and apparel exports to the US are presently subjected to a 17 per cent levy, which would either be halved or nullified under the TPP. In fact, the implementation of Trans-Pacific Partnership agreement, can double Vietnam’s apparel and textile exports to the US. China presently accounts for 37 per cent share in the US textile and apparel market, while Vietnam only has an eight per cent share. The TPP deal can help Vietnam capture a 10 per cent points share from China, as Vietnamese textiles and apparels would then enjoy greater benefits than products from China, which does not form a part of the TPP agreement.
As per the available estimates, while US cotton producers won’t put a limit to the number of acres planted in 2016, they seem to be increasing their cotton acreage in the coming season. Following a year in which they planted only 8.5 million acres of cotton – the lowest total since 1983 – they plan to increase cotton acreage by over 5 per cent in 2016. American cotton producers have indicated they will plant 9,085,000 acres of cotton in 2016, according to the annual Cotton Grower Acreage Survey.
While it does represent a higher total than what was planted in 2015, this projection would still represent the second smallest yearly acreage total dating back to 1983. If American growers do plant the projected 9.085 million acres, it would represent an over 30 per cent reduction in acreage from five years ago, when American cotton farmers planted 14.735 million acres of cotton in 2011, according to USDA data.
As always, the price of cotton in the commodity markets remains the single most significant factor in driving acreage totals. Prices have remained stagnant, hovering near the mid-60 cent trading range for much of the last calendar year, and many project that pattern to hold true for the foreseeable future. This has not encouraged new additions to cotton acreage in the US, although several other factors have helped cottonʼs cause, according to responses gathered in the Cotton Grower Acreage Survey.
Survey indicates that Texas will lead the way in 2016 acreage with a projected total – 5.216 million acres – that would represent nearly 60 per cent of total US acreage. The biggest factor in cotton acreage is price. It was the most frequently referenced reason survey respondents gave when determining their acreage projections. Respondents in Georgia, traditionally the state with the second largest cotton acreage totals, indicated their planting patterns will remain largely unchanged.
The Cotton Grower Acreage Survey concludes that American cotton producers are impacted by the commodity market fluctuations as well as industry developments.
www.cottongrower.com
Manufacturing in the US has fallen to its lowest level since 2009. Ten out of 18 manufacturing industries, including apparel, machinery, primary metals and electrical equipment, reported contraction in December. The six reporting growth included textile mills, paper products and chemical products industries.
Manufacturers inventories rose slightly, but that was offset by an increase in customers’ reporting stocks of unsold goods were high. With activity weakening, manufacturers adjusted their hiring plans. The employment index fell to 48.1 in December from 51.3 in November.
Plunging crude oil prices, which have plumbed their lowest levels since 2004, have put pressure on oilfield services firms, forcing them to slash capital spending budgets. Construction spending slipped 0.4 per cent, the first and also biggest drop since June 2014, after a downwardly revised 0.3 per cent gain in October.
Economists have lowered their fourth quarter gross domestic product estimates by as much as three-tenths of a percentage point to as low as a 1.1 per cent annual pace. The economy expanded at a two per cent rate in the third quarter. Construction outlays were up 10.5 per cent compared to November of last year. Construction spending in November was held down by a 0.8 per cent drop in nonresidential construction. Outlays on residential construction rose 0.2 per cent.
Following its aim for ‘quality, purity and responsibility’, Cotton USA will putting responsible cotton cultivation in the United States at the center of its trade fair message for Heimtextil 2016, thereby showing its support for manufacturers and retailers, helping them in their quest to offer responsibly-produced products. At the Cotton USA booth, the trade can gather information on the global cotton market and responsibly-produced US cotton, as well as find out how the CottonLEADS program helps to identify suppliers using US cotton, ensuring they take the first decisive step towards a sustainable supply chain.
As a global brand for high-quality cotton products, the company stands for the most important natural fibre –cotton – which is one of the most environmentally-friendly and socially-compatible fibres in the global market. Responsibly-produced US cotton provides necessary sustainability throughout the entire supply chain. Sustainable agricultural practices have been used in the United States for more than 30 years. Such practices seek to preserve land for future generations, and to continually support environmentally-friendly and energy-conscious production. Since cotton in the United States is aligned with other food crops, there are extensive, binding federal regulations that must be followed in cotton production.
The industry and trade both face increasing challenges of transparency in the supply chain. To meet such a challenge, after ginning and classification, US cotton bales are assigned barcodes and sold worldwide. The PBI system, developed to identify bales in the United States, ensures the traceability of each bale from the textile mill to the cotton gin – to create transparency in the entire supply chain. The Cotton USA quality brand stands for innovative, advanced, environmentally-friendly and socially-conscious cotton cultivation and processing technology as well as unique, quality-oriented classification and control of all US cotton fibres.
At Heimtextil, CCI will present product samples from the new collections of international Cotton USA licensees such as Bassetti (Italy), Caliphil (Taiwan), Cogal and Camillatex (Italy), Graser Exclusive Bettwäsche (Germany), Kimpeks and Nesa (Turkey), Liztex (Guatemala), Ningbo Guangyuan, Sunvim and Shijiazhuang Changshan (China), Textiles Brito and Zermatex (Mexico) and Zucchi Group (Italy).
www.cottonusa.org
Factors like rising production costs and slowing demand from major export markets such as China and Europe are making a negative impact on margins of textile mills in Madhya Pradesh.
While slow economy is the cause of dwindling demand from Europe and China, on the domestic front cost of production has increased by about 10-15 per cent on the back of higher cotton prices, power tariff and labour wages. Madhya Pradesh has about 45 textile mills of which 35 are spinning mills and 10 are composite mills. Cotton prices have risen 5 per cent in a year on expectations of lower output in the country.
Exports of textiles and clothing during April-September 2015 declined by 2.69 per cent at $18.14 billion as compared with the same period a year ago. In 2014-15 exports from India were $41.4 billion against the target of $45 billion.
Ashok G Rajani has been elected as the new Chairman of Apparel Export Promotion Council (AEPC), by the Executive Committee of AEPC, for a term of two years. He is associated with AEPC since 1978 and has been on the board of AEPC since 1994. He was the senior vice chairman of AEPC and chairman (export promotion) at the industry body during 2000- 2001, 2006- 2007 and 2010- 2011.
Rajani is the Founder and Chairman of Midas Touch Exports, a leading manufacturer and exporter of readymade garments from India. He controls the management of all the Midas Touch Group of Companies. He is also actively associated with the various garment and textiles organisations and was on the board of Alok industries - one of the largest integrated textiles company in India. Currently, he is trustee of the Clothing Manufacturers Association of India (CMAI), Governor on the board of Institute of Apparel Management (IAM) and Apparel Training and Design Centre (ATDC). Earlier he has served as the president of the CMAI and board of governors of the National Institute of Fashion Technology (NIFT).
Rajani pioneered and led Midas Touch to become one of the most prestigious garment manufacturing companies in India. Dealing in both woven and knitted garments, the company mainly exports to USA, EU, UK, Portugal and Turkey. He has also been instrumental in providing impetus to the garment exports from the country over the last four decades.
www.aepcindia.com
Yarns, Fabrics and Accessories (YFA) Trade Show 2015, which was held over four days from December 14 to 17, 2015 at the NSIC Exhibition Centre in New Delhi received an overwhelming response with over 7,477 buyers expressing satisfaction over display of innovative and value-added fibres, yarns, fabrics and garment accessories.
The fair was inaugurated by Textile Minister, Santosh Kumar Gangwar, who said that the YFA Trade Show has done a great job by bringing entire textile value chain under one roof and this fair will be very helpful in growing of textile sector in this part of the country.
The impressive list of Indian and global textile industry exhibitors included Reliance Industries, Indorama Synthetics, Asahi Kasei fibres, Amarjothi Spinning Mills, TT Ltd, Madeira India, Garden Silk Mills, among many others. These companies exhibited and a few launched the innovative and latest developments in value-added textile products like specialty fibres, multifunctional yarns, mélange yarns, spandex yarn, embroidery yarn, bamboo fabrics, modal fabrics, metal garment accessories and various other garment accessories.
Visitors included decision makers like sourcing heads, purchase managers, merchandisers, sales heads and country managers as well as composite mills, spinning mills, knitters, weavers, yarn agents, importers, exporters, buying houses, designers and retail chains.
www.yfatradeshow.com
As per the available estimates, while US cotton producers won’t put a limit to the number of acres planted in 2016, they seem to be increasing their cotton acreage in the coming season. Following a year in which they planted only 8.5 million acres of cotton – the lowest total since 1983 – they plan to increase cotton acreage by over 5 per cent in 2016. American cotton producers have indicated they will plant 9,085,000 acres of cotton in 2016, according to the annual Cotton Grower Acreage Survey.
While it does represent a higher total than what was planted in 2015, this projection would still represent the second smallest yearly acreage total dating back to 1983. If American growers do plant the projected 9.085 million acres, it would represent an over 30 per cent reduction in acreage from five years ago, when American cotton farmers planted 14.735 million acres of cotton in 2011, according to USDA data.
As always, the price of cotton in the commodity markets remains the single most significant factor in driving acreage totals. Prices have remained stagnant, hovering near the mid-60 cent trading range for much of the last calendar year, and many project that pattern to hold true for the foreseeable future. This has not encouraged new additions to cotton acreage in the US, although several other factors have helped cottonʼs cause, according to responses gathered in the Cotton Grower Acreage Survey.
Survey indicates that Texas will lead the way in 2016 acreage with a projected total – 5.216 million acres – that would represent nearly 60 per cent of total US acreage. The biggest factor in cotton acreage is price. It was the most frequently referenced reason survey respondents gave when determining their acreage projections. Respondents in Georgia, traditionally the state with the second largest cotton acreage totals, indicated their planting patterns will remain largely unchanged. The Cotton Grower Acreage Survey concludes that American cotton producers are impacted by the commodity market fluctuations as well as industry developments.
www.cottongrower.com
The government of Maharashtra has announced capital subsidy for the upcoming self-financed projects in the state and special subsidy for the textiles units in North Maharashtra, Marathwada and Vidarbha.
As per the government GR No. 2015/151/Tex-5, capital subsidy will be provided under new textile policy 2011-17 to the self-financing textile project, wherein the spinning mills, cotton ginning, processing and printing units will be given 35 per cent capital subsidy, technical textiles and composite units will be given 30 per cent capital subsidy, and power loom and other textile related units will be given 25 per cent. The government resolution further said that the upcoming textile units in North Maharashtra, Marathwada and Vidarbha can avail additional subsidy of 10 per cent.
“Additional subsidy of 10 per cent is announced for these regions as they are cotton growing areas and establishment of new units in these areas will help the industry and in generating employment”, the GR said, adding, the government will provide the capital subsidy in above listed sector for the machineries which fulfill the Technology Upgradation Fund Scheme (TUFS) criteria of the central government.
