A significant decline in the area under cotton cultivation in Punjab, Haryana and Rajasthan, has caused cotton candy prices to rise by 0.4 per cent to Rs 57,640. 

The area under cotton cultivation in these three states has declined to10.23 lakh hectare from last year's 16 lakh hectare. In Punjab, the area under cotton cultivation has dropped sharply to 97,000 hectare from 7.58 lakh hectare. Similarly, cotton cultivation in Rajasthan declined from 8.35 lakh hectare last year to 4.75 lakh hectare this year, while Haryana's area under cotton fell from 5.75 lakh hectare to 4.50 lakh hectare in 2024.

Delays in shipments from the US and Brazil is also helping boost demand for Indian cotton from mills in neighboring countries. According to the 2024/25 US cotton projections, in June 2024, beginning and ending stocks are expected to remain higher compared to last month, with projected production, domestic use, and exports remaining unchanged. Ending stocks expected to increase by 400,000 bales higher to 4.1 million. 

Globally, the 2024/25 cotton balance sheet shows increases in beginning stocks, production, and consumption, with world trade unchanged. World ending stocks are projected to increase by 480,000 bales to 83.5 million from May 2024.

Technically, the market is experiencing short covering, with open interest remaining unchanged at 358 contracts while prices increasing by Rs 230. Cotton candy is currently supported at Rs 57,380, with potential testing of Rs 57,130 if prices fall below this level. 

Growing at a modest rate of 0.93 per cent, Pakistan’s textile and apparel (T&A) exports reached $16.55 billion in the FY 24 from $16.50 billion the previous year, as per the latest data from the Pakistan Bureau of Statistics (PBS). 

This marginal increase underscores the challenges faced by the sector including new taxation measures and rising energy costs, which may impact its competitiveness compared to regional counterparts.

Recently, the government raised the tax rate on exporters' personal income for the fiscal year 2024-25, a move that industry analysts believe will affect future export figures.

According to PBS data, Pakistan’s textile exports declined by 3.91 per cent Y-o-Y to $1.41 billion in June 2024 from $1.47 billion in June 2023, ending a five-month streak of growth. On a M-o-M basis, Pakistan’s textile exports also fell by 9.23 per cent in June 2024.

Within the textile sector, specific categories showed varied results for FY24. RMG exports increased by 2.05 per cent in value and 1.99 per cent in volume during the year, while knitwear exports decreased by 0.66 per cent in value but increased by 41.44 per cent in volume. Bedwear exports grew by 4.12 per cent in value and 15.27 per cent in volume to reach $2.8 billion. 

Towel exports increased by 5.55 per cent to $1.06 billion in value and 14 per cent in volume. However, cotton cloth exports declined by 7.7 per cent to $1.866 billion in value, despite a 16.15 per cent increase in quantity.

Conversely, the import of textile machinery plummeted, indicating a reduction in industry investments towards expansion or modernisation.

Better Cotton, the world’s largest cotton sustainability initiative, has partnered with FS Impact Finance to launch a fund aimed at supporting smallholder farmers in the cotton sector. The Memorandum of Understanding (MoU) between the two organizations outlines plans to pilot the fund in India.

The initiative will address the financial challenges faced by smallholders, who constitute over 90 per cent of the world's cotton farmers but often struggle to access financial support due to their Farmer Producer Organisations’ (FPOs) lack of credit history. In India, only a few of the 16,000 FPOs, which represent more than 5.8 million farmers, have access to formal financial markets.

The new fund will incentivize cotton farming communities to invest in women’s empowerment and climate resilience by eliminating traditional financing barriers. It aims to support FPOs in implementing gender and climate resilience activities, improving their credit history, and enabling them to develop sustainable growth plans.

Better Cotton CEO Alan McClay highlighted that the collaboration with FS Impact Finance could significantly advance ongoing efforts in India, emphasizing the initiative’s inclusive approach. FS Impact Finance Managing Director Martin Cremer noted that the fund aims to enhance conditions for smallholder farmers and contribute to the development and professionalization of local value chains.

Patagonia, the outdoor apparel giant, is facing a unique challenge: how to be a successful business while prioritizing environmental well-being. This struggle, known as the ‘Patagonia Paradox’, highlights the inherent tension between traditional business models focused on growth and sustainability efforts.

Fashion industry's environmental footprint

The fashion industry is a major contributor to pollution, relying on excessive production and consumption. Fast fashion, in particular, thrives on cheap, disposable clothing, leading to environmental damage and textile waste.

Patagonia's stance

Patagonia has long been a champion of environmental activism. The company encourages mindful consumption through its "Don't Buy This Jacket" campaign and focuses on building durable, long-lasting products. Additionally, Patagonia donates 1 per cent of its sales to environmental causes and recently converted itself into a trust dedicated to fighting climate change. It even restructured itself to make ‘Earth’ its sole shareholder. However, their core business – selling outdoor gear – inherently creates environmental impact. Every new item produced has an environmental impact. The company is exploring alternative models like resale (Worn Wear) to address this challenge.

Resale, a viable solution

CEO Ryan Gellert sees resale as a key strategy. Resale offers a more sustainable alternative to constant production. Patagonia's Worn Wear program allows customers to buy and sell used Patagonia gear. While profitable, resale is still a small portion of Patagonia's overall business. And critics argue resale simply encourages more consumption overall.

However, Patagonia isn't just focused on changing its own operations. Their 2011 "Don't Buy This Jacket" ad campaign famously urged consumers to reduce consumption. More recently, their mockumentary "The Shitthropocene" uses humor to address the environmental impact of fast fashion. However, some find such efforts preachy or lacking substance.

The paradox

Patagonia's efforts are not without criticism. Some view their sustainability messaging as hypocritical, and their use of plastics in some products contradicts their environmental goals. Their reliance on synthetics, even recycled ones, creates microplastic pollution. The company's lobbying efforts can be seen as contradictory. Additionally, their advocacy for stricter regulations can put them at odds with industry groups.

Despite the challenges, Patagonia remains a leader in sustainable business practices. Experts acknowledge Patagonia's positive impact while recognizing the inherent environmental footprint of a growing business. Patagonia's journey towards a more sustainable business model is ongoing. Challenges include finding alternatives to virgin plastics, navigating a changing regulatory landscape, and maintaining consumer trust. Despite these hurdles, Patagonia serves as an example for businesses seeking to balance profit with environmental responsibility. Whether their approach is a ‘magic trick’ or a work in progress, Patagonia's efforts are a step towards a more sustainable future for the fashion industry.