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Pakistan is hoping for a FTA with Vietnam. But Vietnam is Pakistan’s competitor in textile and hence, unlikely to import from Pakistan. Its rice needs are met by domestic production and neighboring Asean countries. Hence, it is highly unlikely that demand will be generated for Pakistan’s top exports through the trade agreement.
Vietnam’s imports in 2016 were worth $200 billion of which Pakistan’s share was just $239 million. While demand for Pakistan’s textile products will be limited, there is potential to export cotton, cotton yarn and fabrics. The trade agreement with Vietnam can easily head in a similar direction to Pakistan’s trade agreements with other countries: imports of expensive value added products and exports of cheap resource-based goods.
The potential to import from Vietnam is far greater, especially with 2016’s auto policy in place. But it seems unlikely that potential gains in cotton exports can offset imports of auto parts and similar goods. The Asean countries have a strong auto sector. Under the auto policy, new investors can import non-localised parts at a duty ten per cent lower than before. Localized parts can be imported at half the previous duty than before by new entrants. The purpose of the auto policy is to increase competition in the local market and push existing players to improve their quality and product. However, it can also have the impact of increasing the import bill as foreign auto parts become cheaper.
The Rebate of State Levies (ROSL) and duty drawback have been restored to pre-GST levels. Duty drawback which was introduced to boost exports stood at 7.7 per cent before GST was introduced. ROSL was introduced in March and was fixed at 3.9 per cent. But soon after the introduction of GST, they were reduced to 2.2 per cent and 0.39 per cent respectively.
But then they were brought back to their earlier levels and are likely to remain so for the next three months. This was because of pressure from the knitwear industry, which felt the country had already lost its international market share in knitwear exports and would definitely lose its competitiveness with other countries like Bangladesh and Sri Lanka.
Unlike the non-GST regime, exporters will be getting a refund of three to 3.5 per cent on excise duty and service tax. Still there will be deficit to the loss of incentives created by the reduction in the rate of drawback and ROSL.
Meanwhile the knitwear industry in Tirupur is eager for a free trade agreement with the European Union and the US. Sri Lanka has a free trade agreement for readymade garments with the EU, so buyers in Europe do not need to pay import duties for goods imported from the island nation.
Cambodia’s exports of garments and footwear rose by 7.2 per cent in 2016 from 2015. Garment exports to the European Union grew by 14 per cent in 2016. About 640 factories hold export licenses. More than 7,00,000 workers are employed in the sector and over 80 per cent of them are women, most of them between 16 and 25 years old.
In Cambodia, with the support of the ILO Better Factory Program, a system of labor inspections in the garment sector has been developed. Advice and capacity development is provided to worker management committees to bridge their communication gap and foster understanding and respect, minimising conflicts and refusal to work. Project interventions at Cambodia’s garment factory level also focus on two more areas: nutrition and transport security.
Malnutrition is prevalent among female garment workers and contributes to mass fainting, frequent sick leaves and low performance and productivity in the factories. Workers’ nutrition is being improved through awareness raising and information as well as through advising on the establishment of factory canteens providing quality food. Transport security is being improved. At present garment workers are usually transported on trucks that are not made for public transport and often do not comply with any road safety standards.
Nilit, the manufacturer and marketer of nylon textile fibers has introduced Sensil, its new premium nylon 6.6 brand and apparel and fabric designers have taken to Sensil. Sensil was created based on extensive analysis of evolving consumer attitudes and rapidly shifting retail shopping trends and has rapidly elevated the quality standard for nylon 6.6. Nilit is looking to exhibit Sensil at upcoming Intertextile Shanghai.
Sensil aims at representing Nilit’s new way of conveying the benefits of its premium nylon 6.6 products to the industry and busy consumers looking for beautiful apparels that also meets their high expectations for value, performance, and quality.
Sensil is naturally softer, stronger, more durable, and more moisture-wicking and odor-resistant than other man-made fibers. Sensil creates fabrics with beautiful drape and hand. Sensil performance yarns are enhanced to provide additional attributes that consumers require in today’s advanced fabrics.
Sensil Breeze imbues apparel with a cooling effect. Sensil Body Fresh protects against the odors microbes can cause, which means clothes don’t have to be laundered as often. Sensil Heat provides warmth on chilly days while Sensil Aquarius wicks perspiration to stay comfortable on warm days. There’s even Sensil Innergy that helps energize cells and reduce the appearance of cellulite.
At, October 11 to 13, Nilit will feature knit and woven garments inspired by Sensil premium nylon 6.6 products.
Teijin Frontier and Nantong Teijin will participate in Intertextile Shanghai Apparel Fabrics, October 11 to 13, 2017.
Teijin Frontier is the Teijin group's fiber-product converting company and Nantong Teijin is the group’s textile manufacturing and sales company.
Teijin Frontier will exhibit a variety of special garment materials, including stretchable, shape-retaining Solotex, Deltapeak adopted in sports apparel, highly water-repellent outerwear material, materials made with Solotex, collaborative products made with the Beijing Institute of Fashion Technology, and undergarment materials made with Nanofront and Waveron.
Nantong Teijin will showcase a range of eco-friendly materials, including chemically recycled polyester materials, and Solotex, a partially bio-delivered material incorporating polytrimethylene terephthalate fiber. The stand will also present Microft, a moisture-permeable, water-repellent material made with high-performance microfiber, and new materials for fashion wear, uniforms and knitted materials.
Teijin is a technology-driven group offering advanced solutions in the areas of environmental value; safety, security and disaster mitigation; and demographic change and increased health consciousness. Its main fields of operation are high-performance fibers such as aramid, carbon fibers and composites, healthcare, films, resin and plastic processing, polyester fibers, products converting and IT. The group has some 170 companies and around 19,000 employees spread out over 20 countries worldwide.
Shima Seiki will exhibit at Intertextile Shanghai Apparel Fabrics, October 11 to 13.
Shima Seiki is a flat knitting machinery manufacturer. It will collaborate with a number of partner companies including yarn suppliers and knit manufacturers together in a common booth. These are yarn supplier UPW; yarn supplier and knit manufacturers Shanghai Xinnuo and Yarns & Colors; knit manufacturers Jiaxing Diwei and Jiangsu YangFan.
Shima Seiki will also be demonstrating the synergy formed between its Wholegarment knitting technology and the latest version of its SDS-One APEX3 3D design system. With more production moving to Bangladesh and other Asean nations, demand for automation and labor savings, as well as other new forms of production, is rapidly increasing. So, too, is demand for Shima Seiki’s Wholegarment knitting machines.
Shima Seiki will also exhibit knitwear produced on its latest line of computerised knitting machines, including seam free Wholegarment knitwear that features superior fit, comfort and draping characteristics, as well as samples knitted on the SRY inlay machine featuring hybrid knit-weave structures.
Of special note are samples knitted on its SVR SP-type machines, which feature inverse-plating technique on every needle. When combined with inlay technique made possible with the machine’s loop pressers, as well as sinker patterns made possible with spring type moveable sinkers, extremely unique and novel patterns are produced.
GST on manmade items, synthetic filament yarn such as nylon, polyester and acrylic, artificial filament yarn, yarn of manmade staple fibers, real zari has been reduced from 18 per cent to 12 per cent. A provision has been made for refund of GST for the month of July by October 10 and for August by October 18 which will ease the working capital stress. A facility of e wallet has also been introduced for addressing the refund issue.
There have also been trade facilitation measures like starting refunds of IGST paid on goods exported outside India from October 10 itself, with the backlogs to be cleared expeditiously, proposed single window refunds of IGST paid on supplies to SEZs and of inputs taxes on exports under Bond/LUT and extending the Advance Authorization / Export Promotion Capital Goods schemes to sourcing inputs from abroad as well as domestic suppliers.
The AEPC feels these changes are expected to give relief to the apparel industry for the immediate term as the sector has been facing a severe liquidity crunch after the introduction of GST. However, since the duty structure remains inverted with fabric at five per cent GST, AEPC is hopeful that the embedded taxes arising out of this inverted structure will be refunded to exporters through appropriate mechanisms.
Textile companies in Zimbabwe don’t have the foreign currency for importing raw materials. The country is facing a serious shortage of forex. US dollars are being sold in the black market at exorbitant rates. Textile production has been greatly affected. Units can’t access forex needed for importing vital raw materials such as yarn, dyes and chemicals.
Thousands of employees are likely to be affected if things remain the same. The apparel sector in Zimbabwe currently operates at less than 30 per cent of its capacity. The industry that once used to employ over 40,000 people now employs only 8,000 workers.
Zimbabwe is flooded with cheap textile and apparel imports from Asian countries, especially from China. These low-priced textile and apparel imports have had a negative impact on the manufacturing sector in Zimbabwe. Textile and apparel manufacturers want a ban on imports of cheap polyester knitted fabric and finished blankets.
Other problems plaguing the industry in Zimbabwe are poor performance, low productivity, out of date technology, and lack of investment and government support. Production of cotton had significantly declined in recent years owing to the high cost of production and unending fights over pricing between farmers and merchants.
H&M’s net profit for Q3 dropped by 20 per cent. Sales grew 4.6 per cent. Its online sales continued to develop well. However, its growing online sales did not fully compensate for reduced footfall to stores in several of its established markets, which has resulted in H&M’s total sales development not reaching targets so far this year.
This meant that H&M entered the third quarter with an inventory level that was too high. An aggressive summer sale policy brought stocks down, and the autumn collection got off to a good start but sales slowed towards the end of September. The group’s online sales currently represent up to 30 per cent in some of H&M’s established markets. Online sales are expected to rise by at least 25 per cent per year in the future.
The competitive landscape is being redrawn, new players are coming in and customers’ behavior and expectations are changing, with an ever greater share of sales taking place online. Meanwhile, the Swedish fast fashion retailer is continuing to invest in bricks-and-mortar operations, having opened its first physical stores in Kazakhstan, Colombia, Iceland and Vietnam, with its first Georgia outlet coming later in the year.
Andhra Pradesh will inspect fields planted with an unapproved variety of genetically modified seeds developed by Monsanto. Farmers have already planted 15 per cent of the cotton area in the state with Bollgard II Roundup Ready Flex (RRF).
Bollgard II RRF is a proprietary technology owned by Monsanto, the world’s biggest seed maker. Bollgard II RRF is known for its herbicide-tolerant properties. Monsanto last year withdrew its application seeking approval from the regulator, Genetic Engineering Appraisal Committee, for this variety. When the US company withdrew the application last year, it was in the final stages of a lengthy process that included years of field trials.
There’s a fear that some seed companies, while suppressing their real intent of profiteering, are attempting to illegally incorporate unauthorised and unapproved herbicide-tolerant technologies into their seeds. The illegal sale of seeds violates India’s environmental protection rules. It’s estimated that 3.5 million packets of such seeds were sold this season. Gross misuse of patented and regulated technologies may pose numerous challenges to India's cotton ecosystem.
New Delhi approved the first GM cotton seed trait in 2003 and an upgraded variety in 2006, helping transform India into the world’s top producer and second-largest exporter of the fiber.
