High cotton prices to drag down consumption despite rise in global production
High export shipments from the US, limited improvement in Indian cotton arrivals and an increase in Pakistan’s cotton production fuelled international cotton prices to a new high during the Spring Festival holiday. However, the celebrations didn’t last long as the Zhengzhou cotton futures market rose limitedly on the first trading day with domestic cotton market weaker than foreign market.
US cotton exports rise 18.3 per cent
As per CCF Group analysis by January 27, 2022, inspection volumes of the US upland cotton grew by 18.3 per cent year-on-year to 3.5771 million ton, show USDA stats. The inspection volumes of upland cotton and Pima increased by 16.7 per cent year-on-year to 3.6466 million tonne, about 95.1 per cent of the forecast production. The proportion of the upland cotton tenderable against ICE futures amounted increased by 8.1 percentage point year-on-year to 83.5 per cent for the marketing year.
Since January, the promotion of upload tenderable against ICE futures has remained high. Weekly exports have also rose due to sustained production and quality. By the week ending January 27, upland cotton exports for 2021-22 declined 15.1 per cent from previous week while they increased 10 per cent from prior four-week average. Cumulative exports declined 6.1 per cent year-on-year to 2.7195 million tons. Weekly exports increased by 52.7 per cent to 68.5000 tons from previous week and by 80.8 per cent from prior 4-week average. Total export shipments declined 41.9 per cent year-on-year to 885.2000 tons. Exports of upland cotton and Prima surged by 86 per cent to 2.809 tons during 2020/21 while total cotton exports surged by 33 per cent to 926,000 tons. The rise in weekly exports was mainly attributed to the stimulus from China, Pakistan and Vietnam. Exports from India also increased in January 2021.
India’s cotton production to reach 5.67 million tons
According to AGM, by February 5, weekly Indian cotton exports increased by 93,000 tons to 200,000 tons from the same period of last year and by 26,000 tons from the prior 3-year average. Total cotton exports increased by 780,000 tons to 3.27 million tons, up 780,000 tons from the same period of last year.
Currently, about 66-72 per cent of Indian cotton is expected to arrive in the market, though arrivals are expected to slow down later. India’s cotton production is expected to reach around 5.67 million tons this season.
End in arrivals from Pakistan boost spot cotton prices
Statistics from the Pakistan Cotton Ginners' Association (PCGA) show, new cotton arrivals increased 33.2 per cent year-on-year to reach 1.15 million tons on February 1, 2022. Textile Mills’ purchase increased 43.3 per cent year-on-year to 1.121. Currently, arrivals have ended and production has settled. This has led to an exponential rise in spot cotton prices while the prices of seed cotton show limited growth.
Cotton planting in Brazil improves
By the week ending January 29, the sowing progress of cotton crops in Brazil increased by 22 per cent from the same period of last year to reach 78.8 per cent. The current sowing progress is equal to that in 2019/20 season.
Overall, a surge in cotton exports from the US, improved arrivals of Indian cotton in the market and a minor rise in Pakistan’s cotton production led to international cotton prices hitting a new high during the Spring Festival holiday. Nevertheless, on the first trading day returning from the holiday, Global cotton production shows signs of growth in 2022/21. However, high cotton prices may drag down the consumption.
Green garment factories in Bangladesh call for new measures to ensure fair prices
The ‘green dream’ of Bangladesh garment entrepreneurs seems to be going down the drain as they are not getting the expected benefits from retailers and brands. As per a Daily Star report, garment entrepreneurs in Bangladesh have invested hundreds of crores of taka to set up green factories across the country. Though these units are helping buyers source products from eco-friendly factories besides improving the image of the entire supply chain, they are not fetching premium prices from brands and retailers, said Md Fazlul Hoque, Managing Director, Plummy Fashions at the launch of an initiative of the Centre for Policy Dialogue (CPD) and the embassy of Sweden in Bangladesh at the Brac Centre Inn in Dhaka.
Hoque added, green garment factories get only a 2 per cent rebate on final settlement of income tax. Bangladesh currently has 157 green factories, the highest in the world. Nearly 500 more garment factories in the country are awaiting their LEED (Leadership in Energy and Environmental Design)-certifications, he informed
Industry leaders demand duty waivers
Nazma Akter, Founder and Executive Director, Awaj Foundation, a labor rights organization, urged buyers to pay fair prices for garment items produced at green factories as their production involves huge investments. Green factories should also attend to the welfare of the workers, especially female employees, she added. Consumers have been paying fair prices for goods produced in green garment factories. Yet, exporters fail to get their due, alleged Mohammad Hatem, Executive President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). To resolve this, the government needs to waive duties on imported chemicals used in green factories and reduce source tax, he opined.
Policy makers urge for new marketing initiatives
Christine Johansson, Deputy Head-Mission, Embassy of Sweden, urged manufacturers to introduce new marketing drives to get better prices. Saber Hossain Chowdhury, Chairman, Parliamentary Standing Committee on Environment, Forest and Climate Change Ministry, also called for measures to increase apparel prices to solve current issues.
Khondaker Golam Moazzem, Research Director, CPD sums up, manufacturers should fashion their green initiatives according to workers’ needs. Meanwhile, the garment industry will soon set new environmental standards.
EEA highlights measures to curb industry’s environment impact
The European Environment Agency (EEA) has published two briefings that highlight measures to reduce the industry’s impact on the environment. As per Recyling Magazine report, the measures include curbing resource use, greenhouse gas emissions and microplastic pollution. The first of this briefing is titled ‘Textiles and the environment’ It provides updated estimates of textiles life-cycle impact on the environment and climate.
The briefing shows, textiles caused the third highest pressures on water and land use, and the fifth highest use of raw materials and greenhouse gas emissions in 2020. The industry required 9 cubic meters of water, 400 sq. mt. of land, 391 kg of raw materials, and caused a carbon footprint of about 270 kg per person during the year.
The briefing also looks at the ways circular business models and design can reduce the negative impacts from textile production and consumption by retaining the value of textiles, extending their life cycles and increasing the usage of recycled materials. It says, optimizing resource use and reducing emissions at production stage would also mitigate negative impacts as would better collection, reuse and recycling of discarded textiles.
The second EEA briefing ‘Microplastics from textiles: towards a circular economy for textiles in Europe’ looks at this specific type of pollution, highlighting three key prevention measures: sustainable design and production, controlling emissions during use and improved end-of-life processing.
The EEA briefing states, pollution can be reduced by using alternative production processes and pre-washing of garments at manufacturing sites with proper filtering of wastewater. The industry can also adopt other measures integrating filters into household washing machines, developing milder detergents, and generally taking better care of garment, to curb pollution, it says. Environment and climate impacts of textiles
A/W22 edition of Scoop X Pure ends on a successful note in London
The A/W22 edition of contemporary womenswear show Scoop x Pure ended on a highly successful note at London’s Turman Brewery. The fair held from February 8 to 10 offered an exclusive edit of over 172 contemporary and premium womenswear and accessory designer collections expertly curated by Creative Director of Scoop x Pure, Karen Radley.
The show celebrated an impressive line-up of new designers including premium collections from: Gee Gee, Lam, Freedom Moses, Blanca Pukara, Mou, Norr Copenhagen, Young Poets Society, Smith and Goat, Neon Denim Brand, Esmé Studios, and Thinking Mu. Returning favourites included: Primrose Park, Humility, Odd Molly, Mercy Delta, Conditions Apply, Christian Lacroix, Coccinelle, A. K jaerbede, D.A.T.E, Stardust, each showcasing their AW22 edits.
Buyers from across the country including buying teams from Anthropologie, Fenwick, John Lewis, and ASOS as well as a host of independent boutiques including The Place London, The Snooty Fox in Ireland, Velvet and Rose in Petersfield , Willow and Wolf in Marlborough among others attended the show. The next edition of Scoop will take place from July 12-14, 2022 at Old Billingsgate, London.
Fila and Krost collaborate for a new apparel and footwear collection
Expanding their partnership Fila and Krost have launched Krost x Fila, a collection of elevated apparel, footwear and accessories featuring premium fabrics and materials. The 22-piece collection features an assortment of men’s and women’s apparel, accessories, and the latest iterations of the unisex Krost x Fila Renno. The apparel range includes nylon tracksuits, tees, leggings, crewnecks, and biker shorts, as well as baseball caps, socks, and a duffle bag. It features terms like ‘Friends’ and Krost’s moniker ‘Support Your Friends,’ throughout the capsule, and is combined with the Fila F-box logo. All pieces are available in sizes XS - XL.
To complement the apparel collection, the two new colors have been created in neutral and navy hues. The first sneaker is designed in a white color with navy accents, while the second silhouette debuts in navy and white tones. The collection is crafted in recycled leather, mixed with materials including nylon, suede, and ripstop mesh.
Portuguese textile and clothing exports surge 16.5 per cent in 2021
Portuguese textile and clothing exports increased by 16.5 per cent to €5.419 billion in 2021 compared to 2020 and 3.9 per cent above the 2019 figure, according to the Textile and Clothing Association of Portugal (ATP). Export of knitted garments increased 9 per cent compared to 2019 to €2.336 billion. Home textiles exports increased 17 per cent to €763 million compared to the 2019 figure.
On the other hand, woven garments exports declined 19 per cent to €796 million, compared to the 2019 figure. France saw the largest increase in absolute terms, with a 18 per cent rise in imports. The French market now accounts for 15 per cent of total textiles and clothing imports, according to a report in a Macau-based news portal.
The non-European Union market was dominated by the US with a 31.5 per cent rise in imports to represent 8 per cent of the sector’s total exports. Spain suffered the biggest drop of €220 million. In 2019, the Spanish market represented 31 per cent of the total imports, while in 2021 its share fell to 25 per cent.
MSMEs revenues decline 27 per cent in FY21: SIDBI Survey
Around 67 per cent of MSMEs were compelled to shut operations in FY21 due to the pandemic, said Narayan Rane in a Lok Sabha session. This caused a 27 per cent decline in their revenue he added citing a SIDBI survey. Over 50 per cent of the respondent units witnessed a 25 per cent decline in their revenues in 2020-21, he added. The survey was initiated by the Ministry of MSME to gauge the impact of the pandemic on the country’s small businesses. It showed a decline in profitability of around 66 per cent of respondents.
Surveying 1,029 MSMEs across 20 states and two Union territories, the findings revealed that around 65 per cent MSMEs had availed the benefits under the Emergency Credit Line Guarantee Scheme (ECLGS). Further, around 36 per cent had also taken loans under the Credit Guarantee Fund Trust for Micro and Small Enterprises scheme (CGTMSE).
Rajiv Chawla, Chairman, IamSMEofIndia, said, SIDBI’s findings reflect the plight MSMEs faced during the last financial year. He urged the government to help entrepreneurs and micro firms struggling to sustain their operations. The MSME sector employs 40 per cent of the country's workforce, contributes 30 per cent of its GDP, and is responsible for 50 per cent of India’s exports, he added.
India: Bhilwara Technical Textiles Q3 net profit declines to Rs 4.0921 crore
In its third quarter ended December, 2021, Bhilwara Technical Textiles’ net Profit declined to Rs 4.0921 crore as against net profit of Rs 7.0321 crore posted during second quarter ended September 30, 2021. The company’s total income increased to Rs. 5.4338 crore during the third quarter ended December 31, 2021 as compared to Rs. 3.4157 crore during second quarter ended September 30, 2021.
On a year-on-year basis, Bhilwara Technical Textiles’ net proft declined to Rs 4.0921 crore for the period ended December 31, 2021 as against net profit of Rs 6.1762 crore for the period ended December 31, 2020. The company’s total income increased to Rs 5.4338 crore during the period ended December 31, 2021 as compared to Rs 3.2768 crore during the period ended December 31, 2020.
Withdraw 12% GST on textile, urges CAIT
Confederation of All India Traders (CAIT) has urged NirmalaSitaramanan, Union Finance Minister, to withdraw the proposed 12 per cent GST tax rate on textile which was suspended by the GST Council on December 31 last year for implementation till February.
BC Bhartia, National President, CAIT and Praveen Khandelwal, Secretary-General, said that the proposed hike should be withdrawn in the larger interest of consumers of the country.
According to the trade body, a hike will load an extra burden of a 7 per cent tax rate on general consumers and will also hit the traders by blocking their capital with the department in the shape of refunds.
There was no tax on textile and fabrics for a number of years. Bringing the textile Industry back under the tax net itself was a big blow to the entire textile industry, the trade body added.
Further, the goods which are lying in stock of the businessmen and sold on MRP the additional burden of 7 per cent will be on the businessmen, it said.
The trade body believes that an increase in tax rate will not only hamper the domestic trade it will affect the exports adversely. Already the textile industry is not at a competent status with Countries like Vietnam, Indonesia, Bangladesh and China.
Reduced COVID impact, industries’ reopening to boost textile demand in FY23: Ind-Ra
Textile demand is likely to get a boost in FY23 from the reduction in impact of COVID-19's third wave, as well as accelerated re-opening activities, says a report by India Ratings and Research (Ind-Ra).
According to the ratings agency, reduction in logistics issues for export demand will aid in keeping healthy demand.
Demand for all the textile sub-sectors in the domestic market continued to improve in from 2QFY22, after a slight dip in 1QFY22. This along with the supply chain issues has increased the realisations, the report adds.
Increased demand in 2HFY21 led to reduced opening stock for the new cotton season. The rise in prices of cotton has led spinners to accumulate the stock, it adds
Furthermore, it says, that demand for MMF (man-made fibre) has continued to increase, mainly due to the rise in cotton prices, leading to a shift of demand from cotton to MMF, to an extent.
In addition, the agency cites that textile exporters in the cotton yarn segment continued to witness an improvement during 7MFY22 with volumes exceeding 47 per cent YoY over FY21.
Ind-Ra expects export volumes to remain higher for FY22 over FY20 and FY21, on back of an increasing demand for Indian yarn. Fabric and apparel exports are also likely to sustain with the the opening up of economies and the adoption of 'China Plus One' strategy by importing countries, it adds.
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Fashion companies aim for a strong growth platform in 2021: Report
As per Fashion’s Newest CEO-the annual report published by Nextail, in 2021, fashion companies chose to hire CEOs with deep sector knowledge and leadership experience, as they sought to create a strong platform for growth and digital transformation.
Published with a view to highlight the expectations for 2022, the report analyzes all the major hires in the sector. It highlights the broadly conservative choices businesses have made when changing leadership in 2021. Furthermore, the appointments have been predominantly male and have, in the majority of cases, operational experience, as opposed to design or marketing.
With lockdowns and restrictions still in place at the start of the year, and the effects of the pandemic being felt throughout, it seems fashion businesses have chosen the tried and tested executive. These seasoned executives can have an immediate impact as they can steady the business and reset the foundations. It is also worth noting that there were 20% fewer new CEOs appointed in 2021 versus 2020.
Over 90 per cent of the incoming CEOs had fashion sector experience and almost 75 per cent of them had C Suite experience. Of the reasons given for hiring a particular candidate the most cited option was to deliver digital transformation and growth.
The luxury market was particularly active in bringing in new CEOs, with an 80 per cent YoY growth in appointments and accounting for close to 20 per cent of the total.
GartexTexprocess India to make its Mumbai debut in May 2022
GartexTexprocess India and Denim Show will make its Mumbai debut from May 12 – 14,2022 at the Jio World Convention Centre.. Taking centre stage this year will be the show’s ‘Fabrics and Trims’ segment along with the co-located Screen Print India exhibition.
While the focus segments under GartexTexprocess India will draw attention to innovations in garmenting and apparel machinery, Screen Print India will track technological advances in digital textile and screen-printing technologies expanding the machinery showcase. As fashion evolves, the need for variety in every aspect of garmenting increases, and the ‘Fabrics & Trims Show’ is a much-needed platform for bringing different fabrics, trimmings, embellishments and accessories on one plate.
The denim industry in India has evolved significantly with ever changing fashion trends making its way into other utility-driven products. With strong support from the Denim Manufacturers Association, the platform will celebrate the coming together of India’s biggest brands and denim mills. Innovative, fashionable, sustainable will define the Denim Show as the industry will get together to showcase their prowess at the Mumbai launch.
Jointly organized by Messe Frankfurt Trade Fairs India and Mex Exhibitions, the platform will also host a series of insightful sessions on the latest developments in textile, garment machinery and screen printing with the objective to encourage investments, new market development and enable India to be a globally competitive textile manufacturing destination.
Primark launches new collection with high street food chain
Irish fashion retailer Primark has launched a 11-piece collection in collaboration with high street food chain Gregg.
As per a Textile Value Chain report, the apparel range will be be introduced on February 19 in 60 Primark stores.
The retailer also plans to open a pop-up boutique on Dean street in London’s Soho. Tim Kelly, Director, New Business Development, Primark, says, the company aims to give its customers incredible store experiences by offering them collections from their favorite brands.
The partnership will also see Greggs launch ‘Tasty by Greggs’, which will be its largest ever branch inside Primark’s Birmingham flagship.
Earlier this week, globally well-known fast-food brand Burger King (Spain) also teamed up with Pull & Bear clothing retail company Inditex fashion group to invest in fashion.
Primark generated £7.79 billion in 2019, and is known for kidswear, womenswear, menswear, homeware and footwear, amongst others.
Growth momentum of Bangladesh garment exports to India to continue: BGMEA
Bangladesh’s garment export to India will continue to grow, saysFaruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Bangladesh garment shipments increased by 58.07 per cent to $365.95 million in the July-December period of the current fiscal year from the $231.53 million recorded in the same period a year ago, according to data from the Export Promotion Bureau.
Of the total, knitwear exports surged by 66.46 per cent to $161.69 million in value. The shipments of woven garment surged 52 per cent to $204.26 million at the same time.
Exporters say the demand for Bangladeshi garment items is rising in India because of the expanding middle-income groups in the world's second-most population nation. Many prefer garment items produced in Bangladesh as they cannot afford expensive Indian high-end garment items.
MdShahidullahAzim, Managing Director, Rupa Knitwear, says a lot of Indian businessmen are placing a good number of orders in Bangladesh to re-export to other countries.
Sharif Zahir, Managing Director, Ananta Group, adds, his group sells $10 million worth of garment items, mainly denim, ladies underwear, woven shirts and knitwear items in India every year
