To further its commitment on sustainability, US-based Cone Denim is incorporating regenerative cotton in its premium denim styles. Being executed in collaboration with international agriculture initiative Regenagri, the initiative aims to increase the brand’s access to sustainably sourced cotton grown using agricultural practices besides working on various programs to help its customers and brands achieve key sustainability actions.
The project is also being supported by Control Union, which helps develop services around the sustainability of supply chains that feed into many markets including textiles. The project aims at providing fabrics created with integrity. It aims to assure operations transparency to customers, says Steve Maggard, President, Cone Denim.
Together with its parent company Elevate Textiles, Cone Denim has pledged to the UN’s Sustainable Development Goals and committed to source 80 per cent verifiably sustainable cotton by 2025.
After two years of pandemic-driven disruptions, the outlook for Indonesia’s textile and garment industry finally turned positive this year. However, the sector now faces a mix of factors. As per a Nekkei report, lenders’ reluctant to invest in the sector over lingering debt concerns is constraining growth besides increasing the cost of shipping and raw materials.
Boycott of China cotton over human rights issues presents new export opportunities for Asian countries like Indonesia. However, the proposed rules from the European Union forcing fast fashion companies to overhaul clothing designs, threatens growth. Following a contraction to 8.9 per cent in 2020 and 4.1 per cent last year, Indonesia’s textile and garment sector expanded 12.5 per cent Y-o-Y in the first quarter of this year, reveals Statistics Indonesia, as coronavirus lockdowns and shop closures weighed on sales and sent global logistics into disarray.
Besides operating with reduced capacity at factories and complying strict social distancing rules, Indonesian manufacturers have to contend with headwinds, including high shipping and raw material prices, limited access to funding and cheap Chinese imports undercutting local businesses.
Two of the country's largest listed manufacturers have had to ask their lenders to restructure their debt. These included PT Sri Rejeki Isman Tbk, or Sritex, which narrowly escaped bankruptcy in early January when most of its lenders agreed to a court-sanctioned debt restructuring process and producer of clothes for Ralph Lauren, Prada and Adidas, PT Pan Brothers, which needs to repay or refinance $309 million of debt, including a $171 million bond that matured in January, says Fitch Ratings.
In a letter to the finance minister, Bangladesh exporters have once again urged the government to maintain advance source tax on export proceeds at 0.50 per cent for the next five years instead of raising it to 1 per cent as proposed in the national budget for fiscal 2022-23. Signed by the representatives of BGMEA, BKMEA and Exporters Association of Bangladesh, the letter warned, any increase in tax rate, especially at a time when the cost of production has surged, might have a negative impact on exporters’ working capital, reducing their competitiveness in global market.
However, Ahsan H Mansur, Executive Director, Policy Research Institute opines, the increase in source tax is reasonable as exporters are earning more due to the recent depreciation the local currency, and besides, the government is offering incentives for exports, he adds. Latest Export Promotion Bureau stats show, Bangladesh earned over $47 billion from its garment exports in the first 11 months of fiscal 2021-22, with a year-on-year growth of 34 per cent. The figure is expected to cross the $50 billion mark by the end of the year.
The Confederation of All India Traders (CAIT) has urged the government to simplify current rules of Goods and Services Tax (GST) Act. The trade body plans to meet the finance ministers of all states to put its demand. It will also meet around 100 prominent trade leaders at a two-day convention in Nagpur from June 25-26, 2022, to devise a strategy for a national campaign on both GST and e-commerce which will begin on July 1.
Nearly 100 prominent trade leaders of all states will have a brainstorming session at Nagpur during the two days of the convention, CAIT said. Praveen Khandelwal, Secretary-General, CAIT also emphasized on the need for widening the tax base of GST by simplifying the GST Act, this will yield more revenue to both central and state governments.
A Joint GST committee in every district of the country comprising senior tax officials of GST and trade leaders of the respective district, should also be formed, stated Khandelwal.
The rationalization of the GST rate should be done after consulting stakeholders, he added. He emphasized on keeping textile and footwear under the tax slab of 5 per cent.
Traditionally, a major cotton exporter, India, for the first time is importing cotton yarn to guarantee uninterrupted supply to weavers and textile mills. Traders are selling imported cotton yarn at Rs 30 per kg lesser than the price of the local yarn, adding further pressure on dwindling profit margins. Atul Ganatra, President, Cotton Association of India notes, for the first time, traders and brokers have imported 4,000 tons of 40 counts of combed-carded compact yarn from Vietnam, Indonesia and Taiwan. A few weavers and mills are buying imported cotton yarn in small quantities to test their quality before ordering in bulk, he adds.
Duty removal pressurizes local spinners
A producer of 4.7 mt of spun and 3.4 mt o cotton yarn, India has world’s second largest spinning capacity after China. Around 65 per cent of the cotton yarn produced by domestic spinning mills is consumed by local weavers and textile mills and rest is exported. Removal of import duty on cotton procured from Vietnam has lessened the prices of Vietnamese cotton, leading to a reduction in capacities of local spinning units, says Jayesh Patel, Executive Committee Member, Confederation of Indian Textile Industry (CITI). This has further made it difficult for these units to sell products in the domestic market, he adds.
Big companies, with capacity to make cotton yarn, are importing cotton. For example, Welspun Group which is procuring cotton from Egypt to make yarn. The yarns are then sold at minimal rates to weaving units, notes Chintan Thaker, President.
Ahmedabad-based Chiripal Group, is importing 100 mt cotton from Nigeria. The company has taken precautionary measures like cotton hedging to prevent rising prices from impacting margins, says Ronak Chiripal, CEO. It has neither reduced nor cut down its installed capacity.
Textile mills rapidly exhaust quality stocks
Most spinning units are struggling as there is an acute shortage of quality cotton in the market, rues Gautam Dhamsania, Owner, Narmada Spinning. Mills are exhausting their stocks rapidly and would have to import cotton yarn for the next 3-4 months. Larger textile units like Welspun would also have to import raw cotton until fresh cotton stocks arrive in the local market, observes Dhamsania.
Net data from China Customs shows, China reduced its spandex imports 20.7 per cent to 7,140 tons from January-April’22 while exports declined only 9.5 per cent to 29.6000 tons from January-April’22. China’s net exports declined 5.1 per cent on annual basis and continued to fall month by month. Imports too remained low during the period.
Exports decline by 9.5%
During the January-April’22 period, China’s spandex exports declined 9.5 per cent to 29.6000 tons. As per a CCF Group report, the average export unit price of spandex increased $1.867/kg on the year. Exports dropped gradually month-by-month as suppliers bagged lesser orders. Spandex was exported to five more nations taking total export destinations to 91 from January-April, 2022. The biggest exports to Turkey followed by South Korea and Vietnam. Together, these three nations accounted for 50.5 per cent of China’s total spandex exports. On the other hand, China’s spandex exports to Bangladesh, Egypt, India and Taiwan declined 20-50 per cent over the same period of January-April,2022 last year.
Imports sees greater decline
China’s spandex imports declined 1,883 tons during the period to 7,140 tons. The average import unit price increased $2.446/kg Y-o-Y to $10.872/kg. China’s monthly spandex imports hit a four-year low as imports declined by 27.5 per cent M-o-M to 2,302 tons in April with import unit price averaging at $9.793/kg.
Major spandex import destinations remained Vietnam, Singapore and South Korea accounting for 77.7 per cent of total. China’s spandex imports from Vietnam, Singapore, South Korea and Japan declined 23.6 per cent, 12.5 per cent, 8.1 per cent and 30.6 per cent Y-o-Y respectively during the January-April’22 period.
Companies shift focus to Southeast Asia as China market weakens
The weakening of China’s spandex market led to many MNCs concentrating on other countries during this period. Demand for spandex also rose in other Southeast Asian countries as textile and apparel production resumed. A few MNCs also reduced Spandex distribution in mainland China and focused on consuming the material locally. China’s spandex imports also suffered owning stricter disinfection of imported goods, delayed customs clearance and high sea freight rates.
Athleta, the San Francisco-based apparel retailer has invested in the label Saysh founded in June 2021 by the American Olympic sprinter Allyson Felix and her brother Wes Felix.
The investment is part of an $8 million Series A funding round, led by Gap and consumer fund Iris.
Saysh will use the funding to scale its e-commerce business, wholesale distribution, and community-based retail footprint, according to a company statement Thursday.
The brand also plans to expand its product offering by launching new activity-specific sneaker lines.
Allyson Felix signed as Gap-owned Athleta’s first-ever sponsored athlete after leaving Nike in 2019. Felix called out Nike for allegedly proposing a 70 per cent pay cut in a new contract following the birth of her son.
Southern India Mills Association (SIMA) plans to organize an exhibition of textile machinery, accessories, and spares in Coimbatore from June 24 to 27.
The event will be held at CODISSIA Trade Fair Complex on the four days and will have 233 exhibitors displaying machinery and accessories in 312 stalls.
This year, it will focus on import substitution and the growing demand for electrical, electronics, spares, and components made indigenously.
The exhibition will be a platform for launching over 50 products. It is expected to generate a business of Rs 1,500 crore.
The exhibition will have 140 exhibitors from Tamil Nadu, the rest from other States and a few representatives of overseas companies. The fair, for which entry is free, is expected to attract one lakh visitors.
Sri Lanka’s garment exports surged by 13.7 per cent during January-April 2022 to $1,769.9 million as against exports of $1,556 million in the same period of previous year, according to the statistics released by the Central Bank of Sri Lanka.
Sri Lankan textile exports increased by 13.3 per cent year-on-year to $112.2 million during the period. However, exports of other made-up textile articles declined by 4.3 per cent Y-o-Y to $42.6 million during January-April 2022, according to the Central Bank’s report ‘External Sector Performance – April 2022’.
On the other hand, Sri Lanka’s imports of textiles and textile articles rose by 23.8 per cent to $1,161.7 million, while clothing and accessories imports surged by 25.3 per cent to $93.9 million during January-April 2022.
During the month of April 2022, garment exports increased 21.5 per cent to $409.3 million. The export of textiles rose 37 per cent to $28.2 million from the same period of last year while exports of other made-up textile articles up 19.7 per cent to $10.2 million in the same period.
Prices of cotton and yarn have declined in the recent weeks, say SK Sunderaraman, Deputy Chairman and Ravi Chairman, Ravi Sam, Southern India Mills’ Association (SIMA).
According to them, yarn is currently being sold at a discount price of Rs 20 to Rs 25 a kg in Tiruppur. Despite this, mills have been able to sell only 50 per cent of the yarn produced. Most of the mills have reduced production.
Cotton prices have also fallen significantly. The spot price quoted for Shankar-6 variety of cotton has fallen to Rs 91,000 (approximately) compared to almost Rs 1 lakh a candy last month.
With the Union Government permitting duty free imports till September 30 cotton prices started declining. The mills have sought extension of the exemption till December 31.
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Viscose transforms from ‘Artificial silk to sustainable innovation
Viscose, often dubbed ‘artificial silk’ earlier, has a long and complex history in the textile industry. A regenerated cellulose fiber,... Read more
Rethinking Textile's Future: Innovations in sustainable fibers and circularity
The textile industry is increasingly focusing on natural fibers and circularity, with new research and initiatives pointing towards a more... Read more
IHKIB hosts successful ‘Turkish Apparel Industry’s Transformation Journey’ event…
Customs Union modernisation key to EU competitiveness Mustafa Gültepe, Chairman of the Turkish Exporters Assembly (TIM) and Istanbul Apparel Exporters’ Association... Read more
Where do your old clothes really go? Unraveling the secondhand clothing journey
The fate of our old clothes is often shrouded in misconception. A widely held belief suggests that most donated garments... Read more
Theory of Constraints, weaving success in global apparel and textiles sector
In the fast-paced, ever-evolving world of fashion, apparel, and textiles, efficiency and agility are paramount. The Theory of Constraints (TOC),... Read more
Gartex Texprocess India 2025 Mumbai edition draws record crowd, sparks industry …
Gartex Texprocess India 2025 concluded with a record-breaking turnout, reaffirming its importance as a key sourcing and technology platform for... Read more
LuxExperience: How the Mytheresa-YNAP merger will reshape online luxury retail
The digital scenario of luxury retail has irrevocably altered with the successful completion of Mytheresa's acquisition of Yoox Net-a-Porter (YNAP)... Read more
US Apparel Imports: Scenario changes subtly as China's dominance reduces
For years, China reigned supreme as the undisputed king of US apparel imports. While still the largest supplier in aggregate... Read more
US Apparel Imports: Scenario changes subtly as China's dominance reduces
For years, China reigned supreme as the undisputed king of US apparel imports. While still the largest supplier in aggregate... Read more
Built to Break: Is our ‘waste problem’ just a design flaw?
The air in numerous pockets of the country hangs thick with the stench of discarded refuse, a stark testament to... Read more
