The extension of duty-free treatment to 98 per cent of tariff lines will help Bangladesh to further increase its exports to China, says, Wang Yi, State Councilor and Foreign Minister, Chinese Embassy in Dhaka.

During his recent visit to Bangladesh, Yi announced that the duty-free treatment of 98 per cent of goods in the different tariff lines originating from Bangladesh will take into effect on September 1.

This will further help to boost Bangladesh’s export to China.

China had been providing duty-free facility to 97 percent of Bangladeshi products, including all garment products, since July 1, 2021. Around 383 new products, including leather items, have been added to the list now, thereby expanding the benefit to 98 percent of the products.

Businessmen in the leather industry have already been focusing on the opportunity provided by the duty-free treatment, according to the Chinese Embassy.

Programs are even underway to facilitate Chinese manufacturing enterprises related to leather products to form business relations with Bangladesh’s leather exporters, it said

The Indonesian Textile Association (API) is organizing the TPT Indo Intertex-Inatex 2022 exhibition from August 10-13, 2022, According to JemmyKartiwaSastraatmaja, General Chair, API, this year's exhibition triggers optimism and investment interest among national textile business players in the post-COVID-19 pandemic. It echoes the spirit that the textile industry still has a long and bright future, he adds.

The Indo Intertex-Inatex 2022 exhibition is being held at the Jakarta International Expo after being delayed by two years due to the COVID-19 pandemic. The 18th edition of the exhibition presents over 130 participants from 16 Asian and European countries displaying products and technological innovations from textile and garment machinery, raw materials, digital printing machines, textile chemicals, accessories and other textile products.

Paul Kingsen, Project Director, PeragaExpo, says, the Indonesian textile and apparel industry recorded the highest growth and played an important role in the national economy.

Based on the Making Indonesia 4.0 roadmap, the textile and clothing industry is one of five manufacturing sectors that are being prioritized.

According to him, the Indo Intertex exhibition plays an important role as a credible platform to pioneer and lead the transformation of the local textile and garment sector by introducing new technologies from the world.

The industrial machinery and accessories on display allow companies to make a faster transition to Industry 4.0 without much hassle. Despite being one of the world's leading apparel manufacturers, until 2021 Indonesia still has not been able to enter the ranking of the top 10 world textile producers.

Previously, in 2017-2020 Indonesia was one of the largest apparel exporters in the world. Based on TexfilesBD, currently, the leading countries in textile exports include Asian countries like China, Germany, Bangladesh, Vietnam, India. Indonesia is considered to still have to struggle to encourage increased competitiveness to be able to compete better with these competing countries. The increase in competitiveness is carried out through the encouragement of regulatory improvements and industrial reforms.

The use of organic cotton is increasing amongst brands across the world. As per the Quint report the organic cotton market is expected grow at 40 per cent CAGR to reach $6,730 million by 2028. India, a major global cotton market, produces over half of the world’s organic cotton, according to the Textile Exchange, a global non-profit for the fibre industry. The government has launched the National Program for Organic Cotton Production that aims to provide an accreditation framework to consumers, producers, processors and traders across the country.

India also has over 5,000 GOTS-certified facilities. It currently produces organic cotton worth 1.23 million tons. Madhya Pradesh and Odisha are among the states with significant rise in production. As cotton requires plenty of water and harmful pesticides for cultivation, it has often been called the world’s dirtiest crop.

Natural fertilizers, less emission make organic cotton good choice

However, organic cotton replaces harmful pesticides with organically approved ones. Farmers use natural fertilizers to grow organic cotton. They also abstain from using genetically modified seeds. The entire cultivation chain in organic cotton is closely monitored. Farmers do not use artificial substances such as formaldehyde and chlorine to process and manufacture organic cotton. This makes clothes made from organic cotton more comfortable and durable. Also, carbon dioxide emitted from production of organic cotton is almost half of those emitted through conventional cotton production.

Challenges in cultivation

Despite these benefits, organic cotton production and manufacturing faces certain challenges. First, farmers often lack access to good-quality seeds suitable for organic farming. Similarly, organic fertilizers and bio-pesticides are not always available for the cultivation of organic cotton. To cultivate organic cotton, farmers to be trained to use natural fertilizers and create a healthy soil balance. They also need to keep pests under control instead of destroying them with the use of chemicals.

These challenges can be surmounted through an effective collaboration between farmers’ association with environmental bodies. These associations can arrange the terms of microcredit for farmers. They intervene to make organic cotton yields more attractive. In short, inputs and facilities can be made more readily available and the benefits of soil health can be properly communicated.

Setting global standards for organic fibers

Selling organic cotton with credibility requires proper labeling and certification. Global Organic Textiles Standard (GOTS) aims to achieve this by setting the global standard for organic fibers. To be GOTS certified, all processes and activities in the chain need to be periodically inspected on-site. GOTS certification also enables processors and manufacturers to export fabrics and garments in major markets.

In India, organic cotton production is monitored by state governments. The country currently has over 5,000 GOTS-certified facilities, the highest number in the world. GOTS recently cancelled all wrongly issued transaction certification after a thorough audit amid reports of faulty certification leading to fake organic cotton products, a thorough audit was conducted by GOTS. It is developing a revised system for raw material checks and reviews of certification bodies.

Transforming farming communities

The outlook for organic cotton in India is marked by rising production and increasing growth. Many organizations and industry experts are streamlining the supply chain to create favorable conditions for buyers and suppliers to promote the industry. A responsible supply chain is being created through the formation of a body called the Organic Cotton Accelerator (OCA).

India currently produces 1.23 million tons of organic cotton with Madhya Pradesh and Odisha leading production in the country. Besides, production in Maharashtra, Gujarat and Rajasthan has grown to 99 per cent of the total cotton production in the last five years. The Indian Council of Agricultural Research with associated bodies has released 64 non-GM cotton varieties and hybrids from 2017 to 2021. These varieties can be adopted by organic cotton growers to directly the crop.

Minimizing pollution and making the world a better place, organic cotton is thus transforming farming communities in India besides improving livelihoods and reducing climate change.

The Q1 FY’23 sales of one of India’s largest manufacturers and exporters of value added synthetic, mélange, blended spun yarns and denim fabric, RSWM surged by 38 per cent to Rs1,024 crore, up 38 per cent from Rs742 crore in Q1 FY22.

The company’s EBITDA increased from Rs. 90 crore in Q1 FY22 to Rs141 crore in Q1 FY23.Domestic demand of the company witnessed a strong growth, increasing 62 per cent Y-o-Y. Export sales were in-line with Q1 FY22 at Rs286 crore and exports-maintained momentum despite of recession concern. RSWM’s cost optimization program helped in maintaining the profit margin.

Strong realisation led to 81 per cent PAT growth to Rs67 crorefrom Rs37 crore in Q1 FY22. Higher raw material prices are getting absorbed by end users; but it still continues to remain a concern for the industry.

Additionally, a 30,000 spindles yarn capacity unit at Gulabpura and denim fabric and knitting units at Banswara undertaken last year, started commercial production from July 1, 2022.