Recently released statistics by the CCF Group indicate, textile and apparel shipments of Southeast Asian countries rose in value and volume on a year-on-year basis while they declined on a month-on-month basis in May 2022. Ttextile and apparel exports from Bangladesh and India fell by over 10 per cent while exports from Pakistan declined only 5 to 6 per cent. Vietnam was the only country that witnessed both a year-on-year increase in textile and apparel exports. Its exports increased 23.2 per cent Y-o-Y and 3.3 per cent M-o-M to $3,171 million.

Export value drops 10.3% M-o-M

The total export value of the four countries dropped 10.3 per cent M-o-M while it increased 27.9 per cent Y-o-Y in May 2022. Between Jan-May’22, total export value of these four countries increased 33 per cent. Bangladesh, Pakistan and Vietnam recorded their first month-on-month textile and apparel exports decline in May 2022. Exports from Bangladesh declined 19.7 per cent; Pakistan declined 5.5 per cent; India’s exports declined for two months in a row. In April it fell 9.5 per cent and 13.6 per cent in May compared to the same period last year.

China, US witness major drop in sales

Inflationary pressures bothered many countries in 2022, especially textile importers. The retail data from major apparel consumer countries show, the European Union and Japan did not witness a significant drop in sales due to rising inflation while sales in China and the US dropped to a large extent. China’s apparel exports grew only 1.4 per cent in April due to stringent epidemic controls in the country. In May, exports grew 20.2 per cent Y-o-Y. The combined exports of all the five countries grew 13.4 per cent M-o-M in May, Hence, the M-o-M decline in combined exports of all countries can be attributed to the returns of orders to China.

US’ price index rises to a 40-year high

As per the recently released inflation data by various countries, consumer price index (CPI) in the US reached 40-year high in May 2022 and rose 8.6 per cent Y-o-Y while the CPI of the European Union rose 8.1 per cent Y-o-Y. Japan’s CPI is predicted to have increased to its highest level in seven years at around 2.5 per cent. For the first time in five months, US’s retail sales declined in May this year as prices increased, indicating a fall in consumer spending due to rising inflation. Interest rates hiked in the second half of 2022. This along with a sluggish consumption and a rising risk of economic recessions indicates a pessimistic outlook for Asian textile and apparel exports in 2022.

India’s cotton consumption is likely to exceed its current crop this season. Consumption is likely to reach 360 lakhs bales while production will reach only 350 lakh bales. Of the total cotton produced, exports will be around 45 lakh bales. This will create a shortage of 55 lakh bales this year, which needs to be imported. By 2025, India’s consumption is likely to reach 500 lakh bales; exports will be 75 lakh bales. This will help the textile industry grow to $350 billion and exports touch $150 billion.

TMC 1.0 boosts cotton production and productivity

Currently, Indian grows 448 kg per hectare (kg/H)of cotton compared to China’s 1,850 kg/H and Brazil’s 1,800 kg/H. It may be recalled, in 1999, former Prime Minister Atal Bihari Vajpayee had introduced the Technology Mission on Cotton 1.0 (TMC 1.0), to improve production and productivity with internationally competitive fibre quality. The scheme was implemented in February 2000 with three mini missions.

Successful implementation of TMC 1.0 helped India improve production, productivity, quality, marketing infrastructure and ginning capabilities. Cotton production increased from 178 lakh bales to 398 lakh bales during 2013-14. India’s total area under cotton cultivation also increased from 92 million hectare to 128 million hectare during the period of TMC 1.0, making it the largest cotton producer in the world and a net exporter. However, now, India is losing its dominance in exports mainly due to the expiry of the BT technology license and no development in seeds, analyses Ripple Patel, Managing Director Fiotex Cotspin in Textile Value Chain.

Patel says, to regain its position, India needs to develop cotton with more GOT (Ginning Out Turn) rather than net weight of cotton ball. India has always focused on developing hybrid varieties of cotton. In 1970, India produced the Shankar Variety that gave better yield but the cost of production was high. It required more inputs, including fertilizers and water. The government should, incentivize production of this variety of cotton to bring down production costs and introduce integrated crop management for better yield. There is need to focus on the development of cotton hybrids that mature within 150 days, have high GOT and yield better fibers.

However, hybrid production is expensive compared to the pure in line varieties. Their recurring costs are high which ultimately increases farmers’ costs. To avoid this, India should produce more pure in line varieties. This will enable the country to grow 100,000 cotton plants per hectare.

Encourage public private partnerships and fertilizer use

Patel suggests, the government should encourage more public private partnerships between Indian seed companies and SAUs and ICAR to develop superior varieties of cotton. It should focus on developing agronomic packages using growth regulators. This will help increase to 35,000-40,000 cotton crops in Phase I and 55,000-60,000 cotton crops in Phase II.

Promote the use of micro, bio and specialty variety of fertilizers and ban unauthorized sale of fertilizers, seeds and pesticides. Encourage use of mechanized agriculture inputs like pheromone traps, lures, etc, to prevent pest attacks. Promote mechanized farming techniques and adopt a scientific approach to agriculture. Diversify Indian germplasm lines with new sources of ClCv disease tolerance to combat new more virulent recombinant strains of ClCv virus.

Make regulatory changes

Patel opines, certain regulatory changes including altering the Seeds Control Order 1983, Cotton Seeds Price (Control) Order, 2015, Essential Commodities Act, 1955, Seeds Act, 1966 are needed. Increase the limit per acre for Kisan credit card through E-rupi voucher. It should promote aerial mapping from various agencies to ensure sowing of crops. Productivity can be improved through detailed guidelines from National Cotton Committee. Trials can be done on 1,000 hectare to draw conclusions.

Align universities with textile ministry

The government should upgrade state agriculture and national agricultural universities and align them with the Ministry of Textiles instead of Minister of Agriculture. Also, establish a Cotton Excellence Centre governed by Ministry of Textiles in Gujarat and Maharashtra. Finally, Patel suggests India needs to introduce TMC 2.0 with the objectives of developing and transferring cotton technologies and developing new varieties of cotton lint.

Skechers a brand from Skechers USA, Inc has been awarded Men’s Footwear Brand of the Year for the second year at the Drapers Footwear Awards 2022. Skechers was praised by the panel of expert judges for its unique ability to cater to a variety of consumer tastes and they commended the brand on its strong sales growth, recognizing the menswear market is the hardest to crack within the industry.

In 2019 and 2020, Skechers was recognized by Drapers as Women’s Brand of the Year, followed by Men’s Brand of the Year in 2021. Drapers Magazine is the market-leading title offering unparalleled access to the UK fashion market, and the Drapers Footwear Awards are the most respected and prestigious in the footwear retail industry.

In addition to retired football player Jamie Redknapp, celebrity product endorsees for Skechers' collections for men in the UK include music artist Willie Nelson; golfers Colin Montgomerie, Matt Fitzpatrick, and Billy Andrade; and Los Angeles Dodgers pitcher Clayton Kershaw, as well as a slate of retired sports stars such as footballer Michael Ballack; American football players and broadcasters Tony Romo, Howie Long and Cris Carter; and iconic boxer Sugar Ray Leonard.

The Republic of India and the United Kingdom concluded the fourth round of talks for an India-UK Free Trade Agreement on June 24 after addressing 20 policy areas.

The talks were carried out in a hybrid fashion and some of the participating teams met in person in London while the majority of officials joined the technical talks virtually. The next round of negotiations, which will be the fifth round to date, are scheduled to take place in New Delhi next month, according to the UK Government.

Union Minister PiyushGoyal had stated while the fourth round of talks were still ongoing that he is confident that the India-UK FTA will be completed before the festive season of Diwali. Goyal also said that two of the three main areas that Indian industry needs to focus on to boost trade are garments and fashion jewelry, along with meetings, incentives, conferences, and exhibitions, which he is confident the FTA will aid.