FW
In 2005, Pakistan imposed an anti-dumping duty of up to 18 per cent on imported filament yarn from Thailand, Malaysia, Korea and Indonesia. At that time, 17 local yarn manufacturers were operating in the country. Since then the number of local manufacturers has come down to just four units.
In 2005, stakeholders agreed that in order to bring fabric trade under a legal umbrella, the maximum duty on fabric should not exceed 15 per cent. Hence the duty on yarn was fixed at seven per cent. But over the years the duty on yarn has escalated to 11 per cent without any reason, causing distortions and making raw material for the downstream industry more expensive. Yarn merchants say the yarn duty should be brought down to nine per cent to give benefits to the weaving and knitting industry.
Makers of polyester filament yarn in Pakistan can only meet 25 per cent of the downstream industry’s demand, while the remaining 75 per cent requirement is met through imported yarn. Yarn merchants say, the long term solution for dealing with this issue is to modernise and upgrade plants of local manufacturers besides enhancing their capacity to achieve economies of scale. They emphasise the regulatory duty is not the right solution.
A team from the University of Georgia College of Family and Consumer Sciences has won the first prize at maiden ‘Green and Sustainable Chemistry Challenge’ for their environmentally friendly textile dyeing technology using nanocellulosic fibers. The idea involves the production of nano-structured cellulose and the use of nano cellulose in a sustainable dyeing process that significantly reduces the amount of wastewater and toxic chemicals.
Conventional dyeing processes require large amounts of water and create toxic effluent, or waste, that can be costly to treat. The wastewater from dye facilities often contains synthetic dyes and toxic chemicals, which leave substantial ecological footprints.
The process involves using cellulose to dye materials. During a homogenisation process, cellulose, a readily available natural polymer found in the primary cell wall of green plants, is converted into a hydro gel material consisting of nano cellulose fibers.
Compared to cotton fibers, nano cellulose fibers have 70 times more surface area with high reactivity, allowing for the efficient uptake and attachment of dye molecules. Dyed nano cellulose hydro gels are then transferred to a textile by a conventional printing method.
By this method the amount of water and dye auxiliaries such as inorganic salt and alkali can be significantly reduced. Most textile dyeing industries are located in developing countries in which the regulations and societal concerns for environmental issues are loose compared to those in developed countries.
Although synthetic fibers are on the rise, quality cotton is still ahead, providing endurance that it offers. Cotton has long been one of the world’s most valuable commodities. It’s one of the 10 largest agricultural products worldwide, and the farming of cotton is a $23 billion global business. This year alone, 105.5 million bales of cotton is expected to be harvested across the world. Cotton production around the world has only increased being a staple fiber for the apparel industry and among the many countries that produce the fiber, here are the top eight producers from across the world. The ranking is based on statistics from Food and Agriculture Organization of the United Nations.
China
As the largest producer, China leads the pack with a total production of 6,298,989 tons. Not only is it the largest producer of cotton, as one of the largest apparel producer, China also consumes a lot of what it produces within the domestic market. Since there has been a decrease in production, from 2007 and 2008 when the country produced more than 7,000,000 tons of cotton, China needed to import large amounts of cotton to satisfy the domestic market’s needs. However, now the country has come up with a new Cotton Policy. China consumes about one-third of cotton’s annual global production, making it the most important market in the world, while sitting on 60 per cent of the world’s cotton stock. Some of the stockpiled Chinese cotton sold at auction last year at prices 26 percent less than what the government paid for it. A rumored sale of more stocks this summer will likely result in greater losses.
India
With a total production of 6,052,000 tons of cotton, India is one of the rare countries on the list that managed to keep a steady growth in cotton production through the years. Since the beginning of 2000s, cotton production in India has been increasing 5 to 10 per cent almost every year. It is estimated that with this pace India could easily emerge as world’s number one cotton producer. As per estimates, in 2015-16 global cotton production is projected at 99.8 million bales, 16 per cent below last season. India and China account for over half of the global crop, with India contributing 27 per cent and China supplying 24 per cent of the 2015-16 production, the US Department of Agriculture (USDA) has estimated.
United States
US is among the top cotton producer with total production of 2,842,000 tons. Cotton had a major influence on the history of the United States, with some history experts claiming that increased cotton demand led to the increase of slavery in the United States, causing American Civil War. It’s up to you to decide if there is a major connection. Regarding cotton production, the United States had their ups and downs over the past couple years, but they are still the world’s number one cotton exporter.
Pakistan
Producing 2,171,300 tons, Pakistan’s economy largely depends on the cotton industry and its related textile industry. The country had its biggest production jump of 40 per cent from 2003 to 2004. In the recent years, the production is rather steady and goes around 2,000,000 tonnes.
Brazil
Brazil was one of the largest suppliers of cotton in the world until the 1990s when government’s reforms decreased the production. Now, with a production of 1,127,675 tons, Brazil is trying to climb up the list of eight countries that produce the most cotton in the world by increasing its cotton production thanks to government support.
Uzbekistan Cotton is a major contributor to Uzbekistan’s economy due to the fact that production is mainly aimed towards exports. Uzbekistan produces 1,094,000 tons and is the world’s second largest exporter of cotton, supplying markets of China, Bangladesh, Korea, and Russia.
Australia
With a total production of 898,000 tons Australia has emerged as one of the largest cotton producing countries in the last few years. The country has rapidly increased its production in 2011 when they produced around 60 per cent more cotton than in 2010 and kept the production on a similar level in 2012 and 2013.
Turkey
Turkey productes 832,500 tons of cotton. Turkey has been increasing and decreasing its cotton production through the years. For example, they were producing close to 1,000,000 tons at the beginning of the 2000s but cut the production by almost 50 per cent in 2009. The main reasons for these ups and downs were increasing production costs and lower demand.
A World Bank book titled ‘Stitches to Riches’, offers specific policy recommendations for stakeholders to better leverage the apparel manufacturing sector's potential in South Asia. The book is focused on identifying key bottlenecks and areas for improvement in the South Asian countries compared with those of their closest competitors in the South East Asian region (Vietnam, Cambodia, and Indonesia).
The recommendations include:) removing trade restrictions to allow easy access to manmade fibers as inputs; increasing efficiency along the value chain such as integration between textile and apparel; and third improving social and environmental compliance by introducing better human resource practices.
At the country level, policy highlights include suggestions that Bangladesh should improve performance on non-cost factors important to buyers. Stitches to Riches says India must address constraints to firm growth (like integration of textile and apparel, and access to manmade fibers), and Sri Lanka should position itself as regional hub and take advantage of emerging markets.
The book also suggests that Pakistan should increase product diversity and reliability, and take advantage of new markets. Stitches to Riches has been motivated by South Asia's urgent need to create more and better jobs for a growing population.
Garment exporters in India say raising the minimum wages for contract labour to Rs 10,000 could result in a sharp drop in exports and lower employment. They say that with the proposed increase in wages, the industry will not be able to exercise its flexibility of engaging more labor to meet its peak-time requirements and will lose to competitors in Bangladesh and China, who already have a cost advantage.
The industry witnesses peak demand between October and February, while orders decline by around 30 per cent in other seasons.
According to exporters the higher wage burden could lead to a 10 per cent decline in export turnover and a proportionate decline in employment. The higher contract wages would also lead to a violation of wage parity norms (vis-à-vis workers on the rolls of a company) and lead to unrest in the industry.
The proposed wage hike is an effort to check exploitation of labor employed by the industry on a contract basis. If the provision is uniformly implemented across all states, the result will be an over 90 per cent increase in wages for contract labor in states such as Orissa and Rajasthan and over 30 per cent in most other states.
Pakistan’s textile industry faces high cost of doing business. About Rs 200 billion of refunds relating to sales tax, income tax, rebates and previous policy initiatives are yet to be paid. This is proving to be a major stumbling block in the smooth running of the industry.
The textile industry is not able to utilise resources due to sustained losses earlier and a liquidity shortage now. This is hindering the production of an exportable surplus.
The industry now wants refunds to be released on priority, the complete withdrawal of the Gas Infrastructure Development cess from the entire textile chain, payment of drawback of local taxes and levies at five percent to remove incidentals of taxes, cess, levies and duties on all textile exports. It wants a 15 per cent regulatory duty on imports of yarns and fabrics made from synthetics including polyester, viscose and acrylic, which have made serious inroads into domestic commerce.
The industry says the stuck up refund amounts are reflected in the revenue account, which is not a fair practice. It wants the eight-point textile industry package to be implemented in totality and not partially as is being done now. Also Pakistan’s currency is seen to be having an unrealistic value.
Planet Textiles will to be held in Denmark from May 11 will discuss supply chain traceability when it comes to man-made cellulosic fibers such as viscose and lyocell and how brands can avoid using raw material (wood) from endangered forests.
Around 360 delegates from 33 countries will be present at the event. Among those participating are Swiss textile manufacturer Remei and the Canopy Style initiative featuring H&M and Birla. A special discussion by Canopy will look at supply chain traceability of man-made fibers to ensure endangered forests are not used to produce man-made cellulosic fibers. The aim is to ensure that material from endangered forests doesn’t end up in the textile supply chains.
Remei runs a long-established bioRe organic cotton project in Northern Tanzania and India. Remei is a well known user of organic cotton fiber to offer a range of ring-spun, combed or carded organic cotton yarns including mélange – as well as a range of knitted and woven clothing sold under the bioRe label.
The event is being organised by MCL News & Media, The Sustainable Apparel Coalition and Messe Frankfurt and is sponsored by Leadership partner, Oeko-Tex. Event supporters include Covestro, Historic Futures, TIPA Corp., Novozymes, Australian Cotton, Workplace Options.
Pakistan’s textile exports to the European Union rose by 21.3 per cent during fiscal year 2015. Cotton exports increased by 4.43 per cent. Footwear exports increased 12 per cent, carpet and rug exports increased by 17.35 per cent.
During the first three quarters of the current fiscal year (2015-16), overall imports into the country declined by 4.22 per cent compared to the corresponding period of last year. Imports into the country during July to March 2015-16 were recorded at 32.515 billion dollars compared to the imports of 33.948 billion dollars during July to March 2014-15. Exports from the country also witnessed a negative growth of 12.92 per cent by falling from 17.921 billion dollars last year to 15.606 billion dollars during the current year.
Overall trade deficit during the period under review was recorded at 16.909 billion dollars compared to the deficit of 16.027 billion dollars last year, showing an increase of 5.50 per cent. Total textile exports increased from 5,45,698 metric tons in 2013 to 6,62,475 metric tons in 2015. Among textile products, exports of textile garments increased from 1,37,399 metric tons to 1,79,901 metric tons in 2015, showing an increase of 31 per cent while homemade textile exports increased from 1,95,243 metric tons to 2,59,557 metric tons in 2015, showing a growth of 33 per cent.
Gujarat's textile policy, announced in 2012, has so far attracted investment commitments worth Rs 9,208 crores through varied units such as weaving, made-ups, processing, spinning, ginning and technical textiles. The plan is to attract Rs 20,000 crores of investment and 2.5 million new jobs by 2017.
Under the policy, 549 textile units have got approvals. The latest nod is for a textile and apparel park coming up in Surat. This park will come up on 62 acres, house 42 manufacturing units and generate 1,900 jobs. So far, 12 such parks have received an in-principle nod.
Approvals have been granted for 43 units, 42 of these units are weaving, made-ups, knitted fabrics, processing, embroidery, cotton ginning and twisting, and one unit for technical textiles. These units have bagged approvals for interest subsidy and value-added tax concession, apart from a power rate subsidy for weaving units. Nearly Rs 603 crores have been invested for plant and machinery. While made-up units will enjoy an interest subsidy of seven per cent, technical textiles and rest of the units will enjoy six per cent and five per cent respectively.
Maharashtra, too, has rolled out a textile policy aiming to attract Rs 40,000 crores of investment and create 1.1 million job opportunities in five years.
The Indian government believes elimination of export subsidies on cotton by developed nations of WTO would help domestic growers and also prevent dumping of subsidised natural fiber in India. The commerce ministry said in a statement that WTO's Nairobi Ministerial decision on elimination of export subsidies on cotton will be good for Indian exports as it will create a level playing field for domestic farmers, who were not entitled to it but other developed countries were providing the same.
India's push has helped in elimination of cotton export subsidies by developed countries. This will help Indian cotton growers in competing with other growers as well as prevent dumping of subsidised cotton in India, the statement said. The government is committed to the welfare of cotton farmers and has been taking steps to protect them. These include procurement through Cotton Corporation of India (CCI) at minimum support prices, the statement added.
The statement further said that cotton is an important crop and very high level of subsidies in developed countries have been a cause of worry for developing countries as they adversely affect cotton growers in the poorest nations. The WTO's Agreement on Agriculture (AoA) permits export subsidies on agriculture subject to the limits set-out in members' schedules of commitments. Export subsidies can still be used by the World Trade Organization (WTO) members, but only where they used them during the base period (1986-1988).
