FW
The Multi Commodity Exchange of India (MCX) has signed a MoU with Maharashtra to create a value chain with final market linkages for cotton farmers in Vidarbha. Special emphasis will be given to farmers’ training, education and awareness so that they can plan and produce quality crop that is marketable and benefit from the existing infrastructure of MCX.
MCX will partner with the agriculture department and other agencies to work closely with farmer producer organisations and help them connect to the MCX's organized market network for building their capabilities. The aim is to improve the lives of farmers in the Vidarbha region. MCX already has accredited warehouses in Yavatmal and Jalna and plans to provide delivery facilities in three or more new locations under the mission.
Commodity exchanges greatly influence a large section of society due to the trading of various agro commodities, base metals and bullion. The cotton futures market provides an efficient platform for farmers to move up the value chain and increase their realisations, use the MCX mechanism to deliver and/or hedge to get remunerative prices. This would support farmers in their upliftment and contribute to doubling their incomes by 2022.
The Multi Commodity Exchange, set up in 2003, is a platform for commodity traders that facilitates online trading, settlement and clearing of commodity futures transactions.
Interfilière Paris will be held from July 7 to 9. This is a tradeshow for the lingerie, swimwear and active wear industries and their suppliers. The show will also welcome 45 new exhibitors, including several international manufacturers.
This edition will bring in a variety of new specialists. This is why it focused on major names, which would be exhibiting for the first time. Last January, it showcased products by yarn manufacturers who weren't exhibiting, providing additional content for visitors.
Interfilière will also feature sections dedicated to industry trends and technology. The Forum Général section will present a range of seasonal colors for autumn/winter 2019-20 focused on pajamas, as there is a special emphasis on homeware in this edition of Interfilière. The Momenti di Passione section, dedicated to summer 2020, zooms in on athleisure and activewear and draws inspiration from the film Black Panther, featuring technical prototypes that combine design and new technology.
A new section called Cups, entirely dedicated to bra cups, will showcase innovations developed by cup manufacturers. Lectra, a specialist in industrial solutions, and design agencies will stage catwalk shows, workshops and talks on a range of subjects from big data to influencer marketing, sustainable development and Industry 4.0.
Indonesia’s exports of textile products from January to May 2018 rose 6.16 per cent while imports jumped 28.02 per cent. In the first quarter of 2018, exports of manufactured products grew only 3.2 per cent while imports jumped 23.5 per cent.
Textile and textile exports in the first quarter of 2010 rose 7.9 per cent while imports jumped 19.5 per cent. Imports of electronics, steel, pulp/paper, rubber products, footwear and furniture grew by 29.9 per cent, 33.9 per cent, 32.5 per cent, 82.1 per cent, 30 per cent and 46 per cent and other sectors experienced an average surge above 20 per cent.
The domestic market is flooded with imported products. The surge in imports is increasingly troubling producers, including textile producers. The trade deficit continues to affect the exchange rate. Sales in the upstream sector in May-June 2018 fell by 15 per cent. The utilization of fabrics by manufacturers is currently below 50 per cent so that all raw materials can be supplied by local producers.
In 2016, apparel exports from the Southeast Asian nation decreased 3.2 per cent due to several challenges including high logistics costs and gas and power tariffs being higher than other competitor countries’.
India may withdraw its decision to impose higher tariffs on US imports. Last week, India finally imposed higher tariff rates on 29 import items from the US, aimed at raking in $240 million worth of duties through higher tax up to 100 per cent. India’s list of tariffs targeted agro commodities such as apples, walnuts, and almonds, for which the US remains the largest source of inbound shipments.
India is also hopeful of securing exemption from the US on steel and aluminium tariffs, which had been imposed earlier by the US against all trade partners. The US may accede to the demands on exemption from tariffs as exports to the US in the category remain small.
Tariff hikes raise new trade barriers, make domestic manufacturing more attractive as the steep increases in customs duties make imports unaffordable. For agri products such as pulses, which have witnessed an increase from 30 per cent to 70 per cent, this would provide encouragement in increasing the cultivable area, on the back of good pulse production in recent years in India.
The price cost trend graph of hosiery products from Tirupur cluster reveal a raise on as many as 14 occasions since December 5, 2005. The products supplied from this cluster have cumulatively become costlier by 123 per cent, since the first collective decision of entire hosiery manufacturers to increase the prices in 2005.
Interestingly, prices were scaled down only once between December 5, 2005 and the latest decision taken a few days back by the South India Hosiery Manufacturers Association (SIHMA) to increase costs. The resolution to reduce prices on July 11, 2011, by 5 per cent was made due to a significant reduction in the cotton yarn prices during that period, even though the other costs like transportation and labour charges were going up. Prices increased the maximum number of times in 2010, when Tirupur cluster become dearer on four occasions with prices collectively going up 32 per cent.
Hemtextil India has brought buyers and exhibitors under one roof. While exhibitors looked happy with footfalls, visitors, were satisfied with the offerings and installations at the show. Organised by Messe Frankfurt India, Heimtextil started began in 2013 and since then, has provided a reliable platform for Indian exporters to highlight their innovative products to the right buyers. It is the season opener for new trends and textile innovations. With the boom in retail sector in the past decade, the fair has grown in relevance with each passing year. In fact, it has grown to such an importance that buyers and exporters alike look forward to it.
The co-located fairs (Heimtextil and Ambiente India) hosted over 165 exhibitors and attendees from countries like India, China, Indonesia, Switzerland, and Thailand, keeping exhibitors and visitors engaged.
The show saw knowledge sessions throughout the day, with keynote speakers like David Landart, Director, Carlin Group, France who spoke on interior trends of 2019. Trend Analyst and journalist Enne from Finland spoke about changes in lifestyle trends. Unique handicrafts and art specimens by Padmashree and National Awardees from around the country were displayed at the Council of Handicrafts Development Corporations, (COHANDS) Pavilion.
The main highlight of the show was a special experience zone where various interior design concepts were showcased. A panel discussion on textile looming for interior design also took place.
Exporters' association FIEO has expressed concern over dismal growth in exports by micro, small and medium enterprises (MSMEs) and labour-intensive sectors in May. MSME units particularly in labour-intensive sectors such as gems and jewelery, leather & leather products, RMG, jute manufacturing including floor covering, carpets, handicrafts, agri products and many other sector of exports are either showing modest or negative growth. These sectors are facing a liquidity crunch as banks and lending agencies are continuously tightening their lending norms, as reflected in sharp reduction in exports credit.
India's exports rose 20.18 per cent in May to $28.86 billion from $24.01 billion of merchandise shipped out during the corresponding month of last year but trade deficit widened due to high oil prices. Domestic issues including access to credit, cost of credit especially for MSMEs should be seriously looked into as global challenges and increasing protectionism, has also added to the woes of the exporters.
Forum for the Future, along with several industry partners which form the Cotton 2040 coalition have launched a new online guide to facilitate increase in sustainable cotton sourcing. The online guide – CottonUP -- provides accessible delivery, reduces the time and resources necessary for brands to investigate and understand which type of cotton to source from which supplier.
The project also addresses a long-standing need in the industry for clarity around cotton sourcing options by providing brands and retailers with the resources to help them go further, faster. Sustainability non-profit Forum for the Future took the lead on the project, with funding from the C&A Foundation.
The Cotton 2040 coalition behind this new industry tool comprises brands and retailers, industry standards bodies, and industry-specific initiatives. M&S, Target and Aditya Birla Fashion Retail make up the brand contingent, with BCI and Cotton Made in Africa (CMiA) and Fair-trade amongst the group of industry organisations and initiatives which form the coalition.
"While there’s a growing risk that supply chain and CSR managers are faced with, they also need to address other aspects of their businesses that are adversely impacted by loss of control of the supply chain. These include potential loss in market share, brand reputation, stolen IP, liability to recall, potential legal and accounting costs, and even criminal action. However, it seems that necessary measures are now being taken as more than 280 brands and retailers have signed a ‘Company Pledge Against Forced Labor in the Cotton Sector of Uzbekistan’. The pledge was initiated by the Responsible Sourcing Network, an organization dedicated to ending human rights abuse associated with materials in everyday products, and Cotton Campaign, a coalition of organizations aimed at eradicating forced labor in cotton production.
Human Rights First recent survey suspects that more than $140 billion worth of goods suspected of being made by forced labor enters the US market each year. In Uzbekistan and Turkmenistan, two of the largest exporters of cotton, forced labour organized on a mass scale demands engagement by up to one million people and possibly more during pick seasons. Another report by a media agency found that much of the cotton produced in Uzbekistan is missing labels or has labels with misleading statements of origin. This provides the opportunity for cotton obtained through human rights abuse to enter manufacturing supply chains often unwittingly.
While there’s a growing risk that supply chain and CSR managers are faced with, they also need to address other aspects of their businesses that are adversely impacted by loss of control of the supply chain. These include potential loss in market share, brand reputation, stolen IP, liability to recall, potential legal and accounting costs, and even criminal action. However, it seems that necessary measures are now being taken as more than 280 brands and retailers have signed a ‘Company Pledge Against Forced Labor in the Cotton Sector of Uzbekistan’. The pledge was initiated by the Responsible Sourcing Network, an organization dedicated to ending human rights abuse associated with materials in everyday products, and Cotton Campaign, a coalition of organizations aimed at eradicating forced labor in cotton production. Companies that signed the pledge committed not to knowingly sourcing cotton from Uzbekistan. Another pledge is soliciting signees for the same commitment against the problem in Turkmenistan.
The repercussions
Going by prevailing scenario, the US government recently banned import of goods made with Turkmenistan cotton under a law prohibiting import of 
goods made with forced labour. There are chances that the government might ban cotton exports from Uzbekistan too. In order to get the situation in control, a Cotton Campaign delegation interacted with Uzbek officials and guided them towards reforms process. Recommended actions include legal and policy reforms, a time-bound plan to dismantle the structural underpinnings of the forced labor system, and accountability mechanisms.
Today it’s not just the NGOs who are stern against forced labour, consumers are becoming increasingly conscious about unethically-produced cotton and are putting pressure on the industry with their most powerful asset, their pocketbooks. Roughly three in five Americans (61 per cent) responding to a survey said that if they discovered a brand made their bedding/clothing products from raw cotton that was picked by child/forced labourers, they wouldn’t buy it.
Tech to the rescue
There are technologies to verify the origin of the cotton and its path throughout the supply chain. Fibre Forward traceability with DNA uses DNA molecular tracers and applies them onto the cotton fibre itself. Portable DNA testing systems can be installed on-site at a mill or at the gin for quality control purposes. Cotton genotyping uses natural biomarkers that designate the DNA fingerprint of the cotton species, some of which may be associated with a geographic region. Additionally, there are blockchain platforms, which provide open transparency across transactions between supply chain partners. It is essential, however, to ensure the initial data entered into distributed ledgers comes from forensically verified (such as with DNA methods) sources. Otherwise, blockchains may be inadvertently used to propagate mis-information.
"As per Worker Rights Consortium (WRC) they had urged many large international brands that source from Shahi to pressure the company into taking appropriate action. But the brands continued to work with the company, even though they haven’t taken steps to redress the situation at the Unit 8. These brands include the four that the specific factory was producing for directly, and more than a dozen others that Shahi supplies through other facilities: American Eagle, C&A, Children’s Place, Decathlon, Gap, Inditex (owner of Zara), Marks & Spencer, Primark, Puma, PVH Corp. (owner of Calvin Klein and Tommy Hilfiger), Tesco, Uniqlo, VF Corp. (owner of Vans and others), and Walmart."
Fast fashion retailers like H&M, Abercrombie & Fitch, Columbia Sportswear, and Benetton, are reportedly ignoring incidence of violence and other abuses happening at their sourcing factories. One incident that has spurred speculation is of a Bengaluru factory owned by Shahi Exports. Here the mangers brutally repressed attempts by workers to unionise and stifled an increase in workers’ wages.
As per Worker Rights Consortium (WRC) they had urged many large international brands that source from Shahi to pressure the company into taking appropriate action. But the brands continued to work with the company, even though they haven’t taken steps to redress the situation at the Unit 8. These brands include the four that the specific factory was producing for directly, and more than a dozen others that Shahi supplies through other facilities: American Eagle, C&A, Children’s Place, Decathlon, Gap, Inditex (owner of Zara), Marks & Spencer, Primark, Puma, PVH Corp. (owner of Calvin Klein and Tommy Hilfiger), Tesco, Uniqlo, VF Corp. (owner of Vans and others), and Walmart.
Scott Nova, Executive Director, WRC, points out Shahi’s customers are leading brands. All have policies supposedly prohibiting physical and verbal abuse of workers and protecting the right to unionise. This case reflects that such companies do not take their own human rights commitments seriously. As a result, neither do their suppliers.
Companies’ reactions
Columbia Sportswear spokesperson reacted to and said Shahi management should take immediate action to address the situation, including: reinstating
suspended workers, paying medical expenses of workers, returning any personal property of workers, engage in constructive and meaningful engagement with the union, and discipline any employees found to have engaged in violence or acts of discrimination. Similarly, H&M spokesperson asserted it has an ongoing dialogue with factory management and the worker representatives, who are supported by the global trade union IndustriALL. It is doing its best to facilitate a dialogue between the parties involved to get to a solution, as well as to give the supplier the right stimulus to set up a different approach to industrial relations and strengthen their policies.
As per American Eagle’s statement it took the concerns raised by WRC seriously and has been in communication with the factory to discuss their response. Its goal is to create strong, supportive relationships with its factory partners and work collaboratively to improve working conditions in its supply chain. Gap Inc.’s Code of Vendor Conduct (COVC) expressly prohibits any efforts to undermine workers right to freedom of association, and any harassment or abuse. While Gap Inc. has never had any production in Shahi’s Unit 8, it does work with Shahi in other facilities, and as such expect their company to fully abide by their ethical sourcing standards and to respect the rights of workers.
To push the development forward when it comes to workplace dialogue and industrial relations, H&M group signed a Global Framework Agreement, GFA, with the global trade union IndustriALL and the Swedish Trade Union IF Metall in 2015. Apart from acting as a framework for local capacity building, this has also proved to be a good platform to engage around dispute resolutions.
