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Yarn Shortage Affecting Textile Sector of Pakistan

ISLAMABAD — As the government has failed to resolve the yarn crisis, some 30 per cent work of the textile sector has been affected and majority of the textile units had close down due to the unavailability of the yarn from last few weeks, TheNation has learnt on Friday


According to the sources, unavailability of yarn even at the higher prices is getting serious with the passage of every day and majority of the industries in Faisalabad and Jhang and other countries had left the working. If the current crises remain for next few weeks’ country would not available to fulfill its export targets, the sources added.


It is worth mentioning here that in the ongoing year production of cotton in the international market is not sufficient and countries like China are importing it from Pakistan, which is considered one of the main reason for the yarn shortage in the country.


The sources further said that every year Pakistan exports about 25 per cent of the yarn to the other countries, while this year the export expected to be 30 per cent, which could create problems for the local industries.


Meanwhile, different associations of the textile industry believed that exporting yarn is the reason for the unavailability and they are demanding of the government to impose ban on the export of yarn in order to provide commodity to the local consumers. Small Power Looms Association already threaten to observe countrywide strike in the month of December if government did not impose ban on the export of yarn.


However, the government is totally failed to solve the said crisis as neither the talks, between the Minister of Textile Industry with all stakeholders, proved any good nor the Cabinet Committee on Textile found any solution to the problem. The cabinet committee on textile met under the chair of Federal Minister for Finance Shaukat Tarin few days back but did not announce any strategy regarding availability of yarn in the country.


The sources further said that if the government did not come with some strategy in next few weeks Pakistan would deprive of the textile orders of EU and USA that would further affect the growth of the textile sector.


Similarly, the yarn shortage emerged because of the black-marketing and storage of yarn in order to increase the prices. Domestic cotton prices have already surged by 25 per cent since the start of the current fiscal year. Neither the provincial governments nor the federal government took any action against those responsible for the blackmarketing


Federal Minister for Textile Industry Rana Farooq Saeed Khan said once that action would be taken against the hoarding and black marketing but despite passing of two weeks no step is taken.


Analysts and exporters anticipate further rise in the domestic cotton prices because of active buying by the international buyers who have flocked Pakistan amid a shortfall in world cotton production.


Source: PRGMEA


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India’s Textiles & Clothing Exports

India’s textiles and clothing exports stood at US$ 19.15 billion in 2006-2007 and improved to US$ 22.14 billion in 2007-2008. Textiles and clothing exports came down to US$ 20.94 billion in 2008-2009. However, in rupee terms the exports of textiles and clothing during 2008-2009 were of the order of Rs.96,309 crore as against Rs.89,121 crore in 2007-08, thus representing an appreciation of 8.07%. In absolute terms, the textiles and clothing exports as percentage of India’s total exports declined from 15.16% in 2006-2007 to 13.59% in 2007-2008 and further to 11.47% in 2008-2009. As per advance information received from some segments of the industry, there has been a considerable decline in the exports of readymade garment and cotton products during the first two quarters of the current financial year. This was stated by the Minister of State of Textiles, Smt . Panabaaka Lakshmi in the Lok Sabha today, in a written reply to a question by Shri Hansraj G. Ahir, Shri Jagdish Sharma and Dr. Murli Manohar Joshi.

The Government has been holding discussions at the highest levels with textiles and garment exporters to find out ways and means to counter the adverse effect of the global economic slowdown on India’s textiles exports. Various incentives have been introduced or enhanced for the sector under the Foreign Trade Policy 2009-2014, the Minister added.

News Source: Ministry of Textiles

BGMEA, labour leaders form nine bodies to monitor RMG sector

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and labour leaders have jointly formed nine committees to monitor the situation in the apparel sector, specially in Dhaka, ahead of the Eid-ul-Azha festival.


The BGMEA leaders and the labour leaders formed the committees at a meeting held at the BGMEA office in the city Saturday.


BGMEA officials said the committees would act promptly to address any disturbance in the apparel sector in Dhaka.


“The committees will closely monitor the labour situation and find out the ways to solve the crisis,” Abdus Salam Murshedy, BGMEA president, told the FE Sunday.


The BGMEA chief also said he already urged the garment factory owners to pay the wages and bonuses before the Eid-ul-Azha festival.


The meeting was also attended by Bangladesh Textile and Clothing Labour League president ZM Kamrul Islam, Bangladesh Jatiyatabadi Garment Dal president Shahidul Islam and Jatiya Garment Sramik League president Md Selim Reza.


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Macy’s posts slight sales decline as shoppers emerge

Macy’s Inc reported a 0.8 per cent dip in its October same-store sales, ahead of the retailer’s outlook and putting it on strong footing to meet or beat its second-half projections. Cincinnati-based Macy’s operates roughly 850 department stores.


Analysts surveyed by Thomson Reuters expected the Cincinnati-based department store chain to report a same-store sales decline of 0.1 per cent. Macy’s total sales slipped by 1.3 per cent to 1.69 billion dollars from 1.71 billion dollars a year ago.


For the fiscal third quarter, its same-store sales declined by 3.6 per cent. That tracks ahead of what Macy’s had projected for the second half of the year, which is a same-store sales decline of five to six per cent. Total sales dropped 3.9 per cent, to almost 5.3 billion dollars from 5.5 billion dollars.


News Source: AEPC India


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Menswear companies focus on carving up domestic market

On the 3rd Annual Meeting and Summit of Men''s Wear Commission, Jiang Hengjie, Executive Vice President of China National Garment Association said the competition within Chinese menswear industry has been upgrading; China's international competitiveness shifts from labor cost advantage to advantages in product development, product quality, brand creativity and cultural innovation.

During industrial structure adjustment and upgrading, industrial resources start to flow and restructure; industry regional distribution goes through minor adjustments. Rising competition appears in domestic market which becomes the focus of companies.

Italy Textile, Shoe, Leather, Eyewear Indus Want Government Support

Italy's textile, leather, shoe and eyewear industry leaders said Monday they have formed a united front to ask the government to help sustain jobs, salaries and investments, as the global economic turmoil batters the retail sector.

In a statement, the groups said they wrote a letter to Italy's Prime Minister Silvio Berlusconi, asking the government for an "urgent" meeting to discuss the negative effects of the global crisis on the sectors.

Italy is the largest exporter of clothing, textiles and shoes in the 27-member European Union. According to government agency SACE earlier this month, Italian export growth is expected to slow notably for the next three years.

The letter calls for the government to help maintain production with measures including facilitating credit lines for small- and medium-sized companies which make up the textile, shoe and eyewear industries, as well as cutting taxes on female workers, in order to improve their working conditions.

Female workers make up 65% of these industries' work force, the statement said.

Experts expect the luxury sector, which these industries serve, to face pressure into 2009. Bain & Co. expects worldwide luxury good sales to rise only 3% in 2008, from a 9% on-year increase last year.

News Source: chineseleather.org

Dayanidhi Maran exhorts jute industry to focus on product

The mantra for survival of jute industry is product diversification and the Jute Geo Textiles (JGT) provide an opportunity to the Jute Industry to diversify and capture new market, said Thiru. Dayanidhi Maran, Union Minister of Textiles while launching the International Project for the Development and Application of Potentially Important Jute Geotextiles, here today. Ambassador Ali Mchumo, Managing Director of the Common Fund for Commodities, Tmt. Rita Menon, Secretary, Textiles, Thiru. Sutanu Behuria, Chairman, International Jute Study Group (IJSG) and Thiru. Sudripta Roy, Secretary General, International Jute Study Group, and Thiru. Bhupendra Singh, Joint Secretary, Ministry of Textiles were also present.


The Minister said that Jute Geotech is a very cost effective and versatile material for ground modification and stabilization, however, in India the use of these materials remain inadequate and far below the potential despite the country having the second largest road network in the world and indigenous fibre base. It becomes our bounden duty to sensitize the stakeholders about myriad applications of Jute Geotextiles and its business potential, emphasised Thiru. Maran.


Jute Geotextiles (JGI) can have a business potential of Rs. 1,260 crore in the 21,000 kilometre National highway being upgraded by the Government, said Thiru. Maran. The Bharat Nirman, a time bound action plan for development of rural infrastructure, envisages laying of 24,000 kilometres of roads to provide connectivity to rural areas and Jute Geotextiles in this Programme can generate a market potential of Rs. 868 crore, said Thiru. Maran. The Government will spent US $ 78.5 billion for development of road infrastructure during the Eleventh Five Year Plan Period and the Jute Textiles Industry shall shape up to exploit the potential, said the Minister.


The Minister said that there is an immediate need for standardization, if the Jute Geotextiles have to meet acceptability both in national and international markets. The Minister said that the five years US$ 3.96 million dollar project has also a social angle. The increased off take of jute will help in poverty alleviation in jute-growing areas and in improving the living conditions of farmers and workers. I compliment the Common Fund for Commodities (CFC) and the International Jute Study Group (IJSG) for their initiative, said the Minister.


The Minister hoped that the Jute Manufactures Development Council (JMDC) as the Project Execution Authority (PEA) will be able to fulfil its commitments with the support and co-operation of the partners of the project and lead jute sector to a better position in the interests of the farmers, the workers, the industries and all the stakeholders in the sub-continent.


News From: Ministry of Textiles


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Ban on export of cotton, thread demanded

Chairman All Pakistan Bed Sheet and Upholstery Manufacturers Association (APBUMA), Khawaja Muhammad Anees, has urged government to impose a ban on export of cotton and thread in order to ensure the maximum export of value added products and to earn reserves for the country.


Khawaja Anees said that increasing ratio of cotton export from the country has become a sign of threat for the local textile and spinning sector. Decline in cotton production target and the increase of thread export from the country has become the cause for the non-availability of crude material for local textile and power looms sector. Textile export has fallen due to export of cotton and thread. It is difficult to meet the export orders in future, he added.


He said that government had fixed the export targets in the trade and textile policy, however, due to low production during the current season. The price of cotton in the local market is increasing because of rising exports. He urged government to put ban on the export of thread and cotton so that the export orders of bed sheet, upholstery and other items could be delivered on time.


It is worth mentioning here that spinning mills have stopped the sale of thread in the local market, which is badly affecting the garments, power looms, hosiery and textile sector. The export of thread has increased after the dollar gains value. Exporters are minting record profit with the export of thread. However local industries are severely affecting with this trend.


News Source: PRGMEA


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American Apparel Q3 profit soars despite lower sales

Moves to streamline its inventories and switch towards higher-margin retail sales have helped lift T-shirt and casual clothing firm American Apparel Inc to an 82.6 per cent hike in third quarter profit.


The Los Angeles based firm, which makes and retails branded fashion basics, said its net income rose to 4.2 million dollars or 0.05 dollars per share, up from 2.3 million dollars a year ago.


Last year's figures were depressed by stock compensation payments, the company said.


"While we are pleased that we were able to deliver a profit in the third quarter in spite of the difficult environment, I believe the successes we had in terms of streamlining our inventories and significantly reducing our indebtedness will prove particularly valuable as we move forward," said chairman and CEO Dov Charney.


"While it is still very early, we are encouraged by some indications pointing to the beginning of momentum in our sales. "We believe that for the long term, our business remains on track as we continue to expand our brand's presence both in the US and internationally."
Looking ahead, American Apparel still expects its full-year sales to be in the range of 540 million dollars to 555 million dollars with a loss of one million dollars to a profit of four million dollars in the period.


News Source: AEPC India


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Hugo Boss Q3 profit drops 25% as sales fall

German fashion firm Hugo Boss posted a 24.8 per cent drop in third quarter net income amid a continuing slowdown in demand for luxury goods. The company said it doesn't expect to see profitable growth until next year.


For the three months to September 30, profit fell to 51.5 million euros from 68.5 million euros in the same period last year. Quarterly sales dropped to 450.4 million euros from 533 million euros, a fall of 15.5 per cent.


However, the company said it has "held its ground well" so far this year, with overall sales down 9 per cent to 1.24 billion euros from 1.36 billion euros last time.


Cost cuts and reorganisation -- including reducing the complexity of its collections to save production and logistics costs, and better materials management -- have also helped keep operating profit margin flat with last year's level of 18 per cent. The group added that its own retail operations made a positive contribution to nine-month sales whereas wholesale revenues fell.


Regionally, the biggest slowdown was in Europe where sales fell by 13 per cent to 852 million euros in the first nine months of the year. In the Americas, sales rose 2 per cent to 233 million euros with declines in North America offset by a 32 per cent jump in Central and South America.


Asia Pacific revenues were flat with last year at 122 million euros although revenues at Hugo Boss' own retail operations in China more than tripled.
Looking ahead the company said: "Due to the extremely weak overall global economic situation, Hugo Boss expects a declining sales development on the level of the first three quarters for the remaining fiscal 2009." The management also sees adjusted operating margin for the year at last-year's level, and expects a first positive upswing in 2010.


News Source: AEPC India

Pakistan - Unplanned export of raw cotton, yarn hurting apparel sector

Unrestricted export of cotton and cotton yarn has been creating serious problems for the apparel sector, whose exports are falling because of this issue.


The constant export of cotton and cotton yarn has pushed up their prices to new heights, ultimately increasing the cost of production of apparel sector, according to representatives of apparel sector.


Jawed Bilwani, Chairman, Pakistan Apparel Forum; Rana Muhammad Mushtaq khan, Central Chairman, Pakistan Hosiery Manufacturers Association (PHMA) and others said that unrestricted export of cotton yarn would have a serious effect on the exports of the value added apparels making it difficult to achieve our ambitious export target. The irony is that the cotton yarn is being exported to our competing countries, which is tantamount to arming them for competing in the finished product market. Value added apparel sector is converting raw cotton of 67 cent a pound into value added finished goods worth $5 to $6 a piece, earning valuable foreign exchange for the country.


Exports of raw cotton and semi-finished textiles have increased considerably in recent times, which is indeed alarming: Raw cotton exports were up 40 percent in FY08, 25 percent in FY09 and overall 20 percent from 2006 to 2009.


The month of May 09 alone registered an increase of 31 percent over the previous month, while June 09 registered increase of 117 percent over May. In the case of cotton yarn, exports increased by 4 percent in May 09, and by 14 percent in June 09. On the other hand, at the closing of financial year 2008-09, an unacceptable drop in exports was registered in major value added sectors, i.e., Knitwear -8 percent, Bedwear -10 percent, and Readymade Garments -4 percent, while exports of cotton increased by 25 percent while that of Yarn increased by 15 percent.


On the other hand, prices of different qualities combed and carded cotton yarn increased 24 percent to 33 percent in the last three months.


With the above rise in price of cotton yarn the cost of production of garments goes up by 10 percent. One can imagine the effect of this increase of 10 percent in these most crucial times with stiff competition form neighbouring and other competing countries, when the margin of profit of value added exporter of garment here is a mere 5 percent to 6 percent. “How can the exporter survive and exist under such circumstances,” they questioned.


India as well as China, main competitors of Pakistan, also export cotton and cotton yarn but they give regard to the requirement of the value added textile exporters and export only after determining the size of the crop and the exportable surplus, ensuring that the requirements of their value added textile exporters are properly met.


They said that our value added apparel sector is reeling under immense pressure of high costs of doing business, rising utility rates and several other problems. Further, this unrestricted export of major raw material, cotton and cotton yarn, has led to spiraling prices and is crucifying our exports of value added apparel which will lead to further closures of large number of export oriented units.


The EU and US—major importers of local textiles—are still trying to grapple with the deep-rooted economic problems. The IMF has predicted that GDP growth in the EU and US would remain flat in the current year.


Domestically, the power crisis, gas load shedding, high financing cost, other infrastructure problems and above all the deteriorated security situation caused a big dent in textile exports.


News Source: Daily Times


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Garments exports of Vietnam targetting new markets

Garment exports to new markets will account for roughly 5 percent of the industry’s total export turnover this year, according to the Vietnam Textile and Apparel Association (Vitas).


Vitas said that domestic apparel producers had recently won a number of export contracts in new markets such as Turkey and Egypt.


The Middle East had also become a major market for Vietnamese cotton clothing, while Russia had imported a high volume of children’s clothes – chiefly jeans and jackets, it had.


Vitas said it hoped sales to new export markets would partly offset a drop in orders from major markets such as the US and EU.


Due to the global economic slowdown, the country’s apparel export turnover to its traditional importers has shrunk markedly, forcing the industry to revise down its export target from US$10.5 billion to US$9.2 billion this year.


Vitas chairman Le Quoc An said the sector had earned US$5 billion from exports in the first seven months of this year.


With the monthly average export turnover expected to be about US$800 million from now to the end of this year, the industry’s total annual export revenue was likely to be US$9.2 billion, An said.


In order to meet its export targets, the sector must conduct more trade-promotion campaigns to find new markets, in South Africa, Africa and the Middle East, An said.


He added that Vitas would also look to promote Vietnamese garments in Asia.


Source: VOV News

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Rock Fashion Week Moves to Petersen

 


Rock Fashion Week and the Gen Art Fresh Faces in Fashion show are moving from Paramount Studios to the Petersen Automotive Museum.


This will be the Los Angeles debut of the two-day event, which is produced by New York–based Rock Media, one of the new players on the Los Angeles Fashion Week calendar.


“We had to make a decision about our venue and have made a decision to move from the Paramount to the Petersen Museum,” said Nicole Purcell, president and partner of Rock Media. “We have been in the middle of an exciting time for our company, as we recently merged with Gen Art. And our focus has been strategizing and preparing for all the programs we are creating. The Peter­sen makes sense as [Gen Art] has produced a number of shows there.”


Gen Art will host its show on Oct. 28, and lingerie label Biatta is also scheduled to host a runway show at Rock Fashion Week. A planned Halloween party on Oct. 31 has been canceled. Alicia Lawhon was originally slated to show her Reclaimed in L.A. collection at Gen Art, but the designer had to drop out of the show for personal reasons, according to Rock Media. Italian-born and Los Angeles–based designer Valerj Pobega will show in Lawhon’s place. Other designer collections on the lineup at Gen Art include Leyendecker, Rory Beca, Seneca Rising and MG Black and accessories labels CC Skye, The Generic Man, Ludevine and Stampd L.A.


Rock Media hosts similar Rock Fashion Week events in New York and Miami, as well as its three-day Haven fashion event, which bowed last February in the Hollywood Hills neighborhood of Los Angeles. (Haven featured a runway show that included Russell Simmons Argyleculture, Born Uniqorn and Yansi Fugel.)


“We have a formula that we augment to whatever city we’re in—we try to figure out what’s the flavor of each city,” said Rock Media Principal Scott Rosenblum earlier this year when he and Purcell were in town to put together a local team for the event.


“We are so excited to debut our Rock Fashion Week L.A.,” Purcell said. “It has been an ambition of ours to tap into this incredible fashion community, as we hope to be instrumental in supporting veteran Los Angeles talent, seek out emerging designers and be able to provide the international fashion community a chance to show with us.”


Rock Fashion Week will come at the end of nearly a month of fashion events in Los Angeles, including Downtown L.A. Fashion Week at the Geffen Contemporary at MOCA, Fashion on Broadway at the Los Angeles Theater in downtown Los Angeles, L.A. Fashion Weekend at Sunset Gower Studios in Hollywood and BOXeight in downtown Los Angeles, as well as many independent shows and parties.



News Source: Apparelnews.net


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US agrees to make changes in ROZs legislation

Pakistan has received positive response from the US on proposed changes in the Reconstruction of Opportunity Zones (ROZs) legislation, which envisages inclusion of garment industry and provision of setting up of ROZs in Balochistan. It was revealed to the Economic Co-ordination Committee (ECC) of the Cabinet in its meeting held on September 15 that Pakistan had proposed changes in ROZs legislation and received positive responsive from the US.


During the ECC meeting, an organisation at Federal level was proposed to be established to steer the programme of ROZs smoothly toward its completion. Institutional and infrastructure requirements were listed and it was stipulated that work on at least one ROZ in every province/area would start by March 2010.


During the presentation on Reconstruction Opportunity Zones (ROZs), the ECC was informed that a joint study group had been established in the US to discuss and finalise details for setting up ROZs.


Sources said that the ECC was informed that institutional arrangements were being made for implementing the ROZs scheme in Pakistan. According to the sources, the government plans to establish four regional ROZs in Fata, Azad Jammu and Kashmir (AJK), NWFP and Balochistan.


The ROZs initiative would provide duty-free export of a number of products, including textile and garments from designated areas of Pakistan to the US. It would provide Pakistan with an opportunity to enhance its exports to the US and stimulate economic growth in the under-developed areas of NWFP, Balochistan, AJK and the Fata.


The sources in Planning Commission said that the a Programme Management Unit (PMU) would be set up with an initial investment of Rs 80.605 million for a two-year period to develop a conceptual and institutional framework and steer the ROZs authority process forward.


In Pakistan, the ROZs will be established in NWFP, Fata, earthquake affected areas of Azad Jammu and Kashmir and parts of Balochistan for goods, including textile and garments, produced in the Zones, which would qualify for duty-free import to the US.


According to the sources, the PMU would be responsible for organising and managing consultation with the stakeholders, ie the Fata, NWFP, AJK and Balochistan; developing incentive package for investors as well as a system or enforcement procedure to guard unlawful trans-shipment of articles from the ROZs. The PMU would be a co-ordinating body with donor agencies in identifying projects for the ROZs, said the sources. The Planning Commission in its technical appraisal has held that the proposed PMU will outsource various short-term studies.

News Source: PRGMEA

FN Platform to Hit Vegas in February

Advanstar Communications and Fairchild Fashion Group are teaming up to launch a new global footwear trade show.


FN Platform, a partnership between Magic International and Footwear News, will debut Feb. 16-18 and run concurrently with Magic’s other trade show events in Las Vegas.


“Magic has [already] become an enormous [destination] for footwear,” said Chris DeMoulin, president of Magic and EVP of Advanstar Fashion Group. “We saw the opportunity to grow our presence and create a show that will allow both dedicated footwear buyers and ready-to-wear buyers to see all of the brands together.”


“As the leading publication in the industry, FN is delighted to partner with Advanstar on FN Platform,” added Fairchild Fashion Group President and CEO Richard Beckman. “This exciting new show will build upon the publication’s unique and powerful bond with the shoe business.”


Leslie Gallin, a former WSA executive who is now VP of Advanstar’s Fashion Group, will be managing FN Platform with her team at Magic.


“We’re going to create an environment unlike any trade show the industry has ever seen,” said Gallin. “Magic is pulling out all the stops to create that ‘wow factor.’”


The show, which will be housed adjacent to WWD Magic, will be divided into five distinct areas with innovative environments and buyers’ lounges that bring each category to life. The sections include women’s fashion, men’s fashion, athletic/outdoor, comfort and children’s.


Already, a roster of big footwear firms have signed on to participate, including Nine West, Steve Madden, Vince Camuto, Stuart Weitzman, Hugo Boss, DKNY and many others.


Gallin said the timing of the show would allow buyers to launch their product during New York’s FFANY show earlier in the month and continue to roll out their collections a few weeks later at Magic.


“This is a huge opportunity to unite the industry and help get the different shows in sync,” Gallin said.


The move marks an expansion of the relationship between Advanstar and Fairchild Fashion Group. The two companies already work together to operate the WWD Magic show.


“Expanding our successful WWD partnership with Fairchild to create FN Platform is a natural evolution,” DeMoulin said.


News Source: WWD.com

Export to EU marks 8.65pc growth in FY 2008-09

Export of Bangladeshi products to European Union (EU) witnessed an 8.65 per cent growth in the fiscal year 2008-09 ended in June.


Country’s shipment to 26 out of total 27 EU member countries reached US$ 8.2 billion at the end of last fiscal year, which was US$ 7.6 billion in FY 2007-08, data revealed by the Export Promotion Bureau (EPB) showed.


“We expected growth over 10 per cent in export to the EU,” a well-placed EPB officer told the FE adding that it began to slow down by the first quarter-end of last fiscal year (2008-09).


Shrinking purchase order in readymade garments (RMG) export triggered by global financial recession that started burning European markets by September 2008 was the main reason for the slower growth, the EPB officer said.


Export to Europe faced several other challenges during the period, he elaborated adding that “Self imposed ban on frozen food export and falling market of leather and jute items in Europe also worked as major catalyst to this slow down.”


According to EPB sector-wise export performance record, apparel export covers 85 per cent (US$ 7.1 billion) of the country’s total export to EU in fiscal year 2008-09. Frozen food was the second largest exportable items to EU, earned US$ 0.23 billion, covering 2.8 per cent of the country’s total earning, the data revealed.


Germany was the largest importer of Bangladeshi products in EU during last fiscal, followed by the UK. Export earnings from Germany registered an increase of 4.37 per cent at the end of FY 2008-09 comparing to the previous fiscal. Export earnings from the country totalled US$ 2.27 billion in FY 2008-09 against US$ 2.17 billion in FY 2007-08.


Besides that, Bangladesh’s export earnings from UK totalled US$ 1.5 billion in last fiscal against US$ 1.3 billion in FY 2007-08.


With the economic recession slowly easing out and export ban deadline on frozen food likely to over soon, Bangladesh’s export performance to the region likely to witness a healthier picture ahead, experts related to the country’s international trade forecast.


Other than textile and frozen food, Bangladesh exports tea, agri-products, leather and leather goods, raw and processed jute goods and some other exportable items to EU


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4th Japanese Trade Fair-2009 will be starting on Oct 15, 2009

The 4th Japan Trade Fair-2009 (JTF-09), organized by the Japan-Bangladesh Chamber of Commerce and Industry (JBCCI), is going to be held in the capital from October 15-17, 2009.



More than 35 companies from various sectors are expected to participate in the biennial fair, Toru Misabayashi, vice president of JBCCI said.


The fair will take place at the Bangabandhu International Conference Centre (BICC) and would remain open for public from 10:00am to 8:00pm, he said.


Addressing a press conference in a city hotel Wednesday, he said, renowned companies including electronics, automobiles, IT equipment, capital machinery, readymade garments, leather products, cargo transportation and logistics providers will exhibit their latest products in more than 100 booths at the fair.


Different Japanese government and semi-government organizations will also take part in the fair, he added.


Chairman of Japan-Bangladesh Joint Committee for Commerce and Economic Cooperation (JBCCEC) Tokyo will lead a six-member high-powered economic delegation from Japan to visit Bangladesh on a three-day tour, T. Uehara from Embassy of Japan said at the press conference.


They will also hold a meeting with the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) as per schedule, he said.


JBCCI organizes the trade fair in Bangladesh every two years in support of the Embassy of Japan, Japan External Trade Organization (JETRO) and Japanese Commerce and Industry Association in Dhaka. Windmill Advertising Limited will organize the trade fair this year.


News Source: apparel.com.bd

SIS garments workers stage sit-in for dues

The workers of SIS Garments staged a sit-in-demonstration at Muktangan in the city Wednesday demanding all outstanding arrears and the arrest of their employer.


The leaders of National Garments Workers Federation (NGWF) claimed that SIS Garments authority illegally closed the factory on September 13 without prior notice, said a press release.


They further claimed that the authority did not pay the wages of three months from July to September and overtime dues of five months from May to September.


The authority must pay rightful compensation with all the dues to the workers, the leaders demanded, added the release.


The federation President Amirul Haque Ameen, central leaders Faruq Khan, Arzu Ara and Bangladesh Garments Sramik Oikkyo Parisad leader Alomgir Roni, addressed the workers.


News Source: apparel.com.bd

Bangladesh garment exporters to use Pakistani fabric for EU

Bangladesh has agreed, in principle, to issue GSP "Form A" to imported fabric from Pakistan from January 1, 2010. This was stated by Federal Advisor on Textile Dr Mirza Ikhtiar Baig in a statement issued here on Tuesday. Dr Baig said that he had taken up the matter with the authorities in Bangladesh at several forums in the context of Sri Lanka, which also allowed a similar facility to Pakistani fabric.


He said that Bangladesh and Sri Lanka are members of SAARC, which allows duty free trade of ggoods among the member states. Dr Baig said that garment manufacturers in Bangladesh would buy Pakistani fabric after this facility, thus providing a boost to Pakistani fabric. He pointed out that Bangladesh Textile Manufacturers and Exporters Association was opposing the import of fabric from Pakistan for the manufacture of garments when European Union had allowed GSP Plus status to Bangladesh.



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Garment retailers urged to pay Asian living wage

Activists in 11 European countries are launching a series of campaigns this week calling for retailers to pay a living wage to all garment workers in their supply chains.


In particular they are pressing retail giants such as Carrefour, Tesco, Aldi and Lidl to take up a ground-breaking new proposal for an Asia Floor Wage (AFW) which would see the equivalent of a 475 dollars a month minimum wage throughout Asia.


"The Asia Floor Wage Alliance is uniting unions and NGOs in Asia around a common wage demand," says Mr Jeroen Merk of the Clean Clothes Campaign International Secretariat. "It's a powerful response to industry practices that have kept wages at a poverty level and play off workers against each other."


The AFW, calculated using the World Bank's purchasing power parity, would allow workers to purchase the same set of goods and services across key garment-producing countries in Asia, the campaigners suggest.


They add that a living wage is regularly denied to workers in the garment industry where workers, mainly women, who produce clothing for international retail chains often live in severe poverty.


The proposals will be formally launched with events in countries across Asia this week including India, Indonesia, China, and Bangladesh.


News Source: AEPC India


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Service reforms clothing accessory culture

Marketing measures like star advertisement, follow-up by imitation, discount and promotion adopted frequently in the past have all failed to be effective in the face of rational customers, many brand operators admitted.

For customers with little difference in culture, lifestyle and consumption demand, the clothing brands, transforming from focusing style to brand operation and owning the similar consumption groups, find it difficult to stand out from the comparable brands irrespective of the fact that they make a luxurious exhibition of their brand culture in fairs or promote the brand image by extensive advertisement campaign.

As the similarity of products, price, shopping environment and target consumers becomes more obvious, it has become an indisputable fact for the success of terminal stores that adopting the brand image to increase the product value and expediting the realization of product value by service value of the brands.

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Marks & Spencer unveils its autumn collection 2009

Marks & Spencer India has announced the launch of its autumn collection 2009 across all its stores in the country.


Deep, rich and opulent colours like blue, reds and pinks with fabrics full of detail and texture describe the autumn ’09 collection. Catering to the Global Indian, the new range includes menswear, womenswear, lingerie, kidswear and home decor, using fabrics and styles that are synonymous with style and comfort.


With something for everyone, the autumn collection 2009 promises to colour the season with high quality great value clothing and home products. Also launching this season some new product categories like luggage, men’s footwear, kids’ toys and books.

Employees Oldage Benefits Institution (EOBI) Now Made Part of Textile Policy

The government has for the first time made the Employees Oldage Benefits Institution (EOBI) part of the textile policy and allowed its reimbursement to encourage women employment in textile industry and support the handicapped employees in textile units registered with the Ministry of Textile.


A notification was issued in this regard on October 1, 2009 which specifies that the reimbursements under this notification shall be allowed for contributions made till 30th June, 2014. The documents available to Business Recorder state that this order may be called the Reimbursement of EOBI Contribution, 2009, which extends to the whole of Pakistan.


It shall be applicable only to the extent of payments made by textile units towards EOBI contributions for women workers and the handicapped in their respective units. It shall come into force at once. The reimbursements under this Order shall be allowed for payments made from 1st October, 2009 onwards.


The reimbursement shall be available to all textile units registered with the Ministry of Textile Industry. The unit shall be a registered sole proprietor, partnership or a company and shall be a member of a textiles association registered with the Directorate of Trade Organisations, Ministry of Commerce.


The registered units shall furnish data and any information related to the unit's operations, employees, domestic sales, accounts and exports as and when required by the Ministry of Textile Industry. The units shall submit modified PE-01 and PR01 forms specified at Annexure I and II respectively to EOBI along with special identification number provided by the Ministry of Textiles Industry and EOBI registration number.


Textiles units claiming re-imbursement shall submit revised PR-02-A form specified at Annexure III to EOBI on monthly basis. EOBI shall forward instructions duly signed by notified persons to NBP, on quarterly basis to make payments, to compliant textiles units' equivalent to contribution made by them for female and handicapped employees in the preceding three months.


NBP will make payments to the beneficiaries on receipt of instructions from EOBI. The payments will be made from the same branches through which the EOBI contributions were made and through the mode and method as may be determined by the NBP. The receipt of reimbursement payments shall be properly reflected in the book of accounts and other relevant financial statements of the unit.


Random, on-the-spot checks and audits shall be carried out where deemed necessary by the EOBI or its representatives to verify the authenticity of information provided by the unit and reimbursement received under this Order. Any unit which is in contravention of the provisions of this Order, through acts of omission or commission, and files fraudulent or false claims shall be liable to penalties under EOBI Act of 1976.


The appellate authority where penalties have been imposed shall be the Secretary, Ministry of Textile Industry. The Federal Government reserves the right to make any changes, additions, deletions and modifications in the scheme under this Order which it may consider necessary or to discontinue the scheme under this Order at any time. Any interpretation or clarification required regarding the application of this Order shall be made by the Ministry of Textile Industry.


While commenting on this order, Federal Secretary for the Ministry of Textile Ministry and Industry Waqar Masood Khan told Business Recorder on Friday that for the first time EOBI has been made part of the Textile Industry under the new textile policy. He further said that the new policy encompasses indigenization, women employment support programme and support for disabled, and handicapped. Waqar said that there is no age limitation and a person with one year service could also benefit under EOBI.

News From: PRGMEA
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FPCCI’s Nominated M A Jabbar as Chairman

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has nominated M A Jabbar as chairman standing committee on World Trade Organisation (WTO).


He has been also advised to revive the WTO resource center initially se up during 2003-04 at the PFCCI. The resource centre was supported by department for International Trade Development, UK, as part of its programme to develop the capacity, says a press release.

News from: PRGMEA
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Government provides Rs. 5 crore to upgrade the National Handicrafts and Handloom Museum

The Government has provided Rs. 5 crore to upgrade the National Handicrafts and Handloom Museum (Crafts Museum), said Thiru. Dayanidhi Maran, Union Minister of Textiles while inaugurating a month-long exhibition of arts and crafts titled “India Craft Journey”, here today. Also present on the occasion were Tmt. Rita Menon, Secretary (Textiles), Ms. Jaya Jaitley, Dastkari Haat Samiti and Thiru B..K Sinha Development Commissioner , Handlooms .

The Minister said that an amalgamation of crafts and textiles representing the tradition of each State, the exhibition is being organized by the National Handicrafts and Handloom Museum (Crafts Museum) in association with Dastkari Haat Samiti. Describing the exhibition as a “living folk culture” of the country, Thiru. Maran said it will highlight the map project started by the Samiti in 1994 with the intention of educating the public about the rich arts and crafts. These precious maps will be kept intact at one place so that discerning art lovers can see and understand our culture heritage, said Thiru Maran.

The Minister said that the art installations focus on aesthetically beautiful crafts procured from village markets, created at design workshops or sold at commercial outlets, and the message of the exhibition is that craft are everywhere and it is for our people to recognize their value and enrich their lives with them. The array of textures, the vibrant colours, the craft pieces of each composition, some unusual, some traditional but shown in a new context, attempt to capture the essence and richness of the local cultures of India, said Thiru. Maran.

Check complete News at "Ministry of Textiles" website

BPL cards to be issued for garment workers in Karnata

In order to procure foodgrains at subsidised rates to garment factory workers, the Karnataka state government is planning to provide them below poverty line (BPL) ration cards, according to minister for food and civil supplies H Halappa.

It has been estimated that over four lakh people are working in garment units of Bangalore and a majority of them live below poverty line, Mr Halappa said while rejecting allegations made by the opposition that the state government does not distribute ration to BPL card holders.

During government’s verification process to weed out ineligible families and bogus cards, about 6.3 million BPL card holders out of 7.8 million had submitted their photo identity cards, the minister said.

News From: AEPC

EU textile industry exempt from carbon trading plans

Key elements of the European Union (EU) textile and clothing industry are likely to be exempt from the EU's plans to auction carbon dioxide emissions permits from 2013 for a number of other industries.

The European Commission has unveiled a draft list of businesses it fears could relocate to jurisdictions with weaker climate change rules, which included textiles.

Under the list released on September 18, selected industries would have free carbon credits from 2013 to 2020; pollution permits would be capped at the 2007-08 levels of the most efficient 10 per cent of companies in a particular sector.

Clothing and textile industry sub-sectors receiving this treatment include manufacturers of cotton, wool, silk and flax-type fibres, the manufacture of starch products and dyes, and the manufactures of underwear, knitted and crocheted clothing and other apparel among others.

Brussels will review the list for final approval by the New Year, adding or removing some industries. This would follow December's UN Copenhagen conference and its hoped-for international climate change agreement.

News from: AEPC

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French luxury brand owners target Chinese consumers

French luxury brand owners are launching an online campaign to try to drive sales in the Chinese market.

The Comite Colbert, whose members include Chanel, Christian Dior, Lacoste and Louis Vuitton, will unveil cColbert in October-end in a bid to introduce Chinese consumers to "the world of French luxury."

The campaign is aimed at China's younger, internet-savvy shoppers, and reflects the Colbert strategy of opening up to emerging markets, particularly in today's slow business environment.

China is the cornerstone of this strategy, it says, with companies belonging to the Comité Colbert seeing the average share of the Chinese market in their global sales climb from 4.5 to 8 per cent since 2005.

"The French luxury sector is leading the way both by opening up the market and pioneering new practices on the internet," said Ms Elisabeth Ponsolle des Portes, president and CEO of the Comite Colbert.

Extra support for small exporters

Trade Minister Simon Crean today announced that the Federal Government will make it easier for Australian exporters and overseas investors to obtain financial assistance.

The Federal Government will simplify and expand the powers of the Export Finance and Insurance Corporation (EFIC) to enable it to more effectively provide financial support.

Under the changes, a new broader eligibility test for small-to-medium-sized enterprises will be introduced.

Mr Crean said the changes reflected the increasingly sophisticated role Australian businesses play in the global economy and would help them respond to the global recession.

“Australian exporters face many challenges and find it difficult to access finance for expanding their operations internationally,” he said.

“Expanding EFIC’s powers to better support Australian exporters will give a boost to this growing and dynamic sector of Australia’s economy.”

“The Government is working to help Australian businesses looking to export,” Mr Crean said.
Under the changes, the simplification of EFIC’s powers will reduce the cost burden on exporters of accessing EFIC’s services by streamlining the eligibility criteria.

A new net economic benefit test for exporters will allow EFIC to provide assistance in broader circumstances to exporters which have an annual turnover of their corporate group of up to $100 million.

The broader test has been designed to provide effective assistance to exporters seeking to establish global supply and distribution chains and harness the opportunities from the globalising economy.

A business survey by Dun and Bradstreet released this month showed growing confidence among Australian companies with 46 percent of respondents expecting increased sales in the December quarter. However, 45 per cent of those surveyed also expected a negative impact on their business from difficult credit market conditions.

The expansion of EFIC’s mandate will require changes to the EFIC Act.

As the Australian Government’s export credit agency, EFIC helps Australian exporters and overseas investors to overcome financial barriers by providing finance, finance guarantees, insurance and bonding facilities.

News From: AUSTRALIAN MINISTER FOR TRADE

China Hi-Tech Fair 2009 – 'Hong Kong Pavilion'

The China Hi-Tech Fair (CHTF) is a state-level, international hi-tech event held annually in Shenzhen. It is approved by the State Council of the People's Republic of China and jointly hosted by nine government departments and Shenzhen Municipal People's Government. Since its inception in 1999, the CHTF has provided a platform for technology companies all over the world to showcase their technological achievements, exchange information, identify collaboration partners and explore business opportunities. The CHTF 2009 will be held on 16-21 November 2009.

The Innovation and Technology Commission and Hong Kong Trade Development Council will jointly organise the 'Hong Kong Pavilion' at the CHTF 2009 to showcase the latest innovative and technological capabilities and achievements of Hong Kong to the world. Enterprises registered in Hong Kong are eligible to apply for exhibition space in the 'Hong Kong Pavilion'.

For Complete informatios please visit: www.itc.gov.hk

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Upcoming Fair - JITAC European Textile Fair 2009

Industry: Textiles & Fabrics
Date: October 27, 2009 - October 29, 2009

Venue:
THE JAPAN IMPORTED TEXTILES AGENCY COUNCIL
5-1 Marunouchi, 3-chome
Chiyoda-ku, Tokyo 100-0005, Japan
Web: www.jitac.jp

19th JITAC European Textile Fair 2009 will be held on 27th – 29th Oct, 2009 at Tokyo International Forum. European Textile Fair 3 years has passed since JITAC(Japan Imported Textiles Agency Council) had been authorized as a cooperative organization.

Now the time has come to renew the organization more attractive and vital. We make this theme possible by integrating full experienced staff with young energetic members. With increasing nember of visitors, we are glad to say that the JITAC European Textile Fair, taken place twice a year, has become a significant role to see where the world fashion trend is heading thanks to Premiere Vision and all suppliers' great supports.

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International Conference on “GLOBAL TEXTILE OPPORTUNITIES

The Textile Association (India) Mumbai Unit (TAI) organized the International Conference on 16th & 17th January 2009 at Hotel Intercontinental the Lalit, Mumbai. The theme of the Conference was “Global Textile Opportunities – Vision India.

Check full details at: www.textileassociationindia.com/press%20reports.html

Check Exporters & Importers of Textiles at: www.textileimporters.co.cc

BGMEA Demands Stimulus Package

BGMEA leaders today reiterated their demand for a stimulus package for the ready-made garment (RMG) sector to offset the adverse impact of the global financial crisis.

BGMEA President Abdus Salam Murshedy said the garment sector was ignored unfortunately in the proposed budget for the fiscal year 2009-10.

The RMG manufacturers had been lobbying with the ministers and other government high-ups for the last few months for the stimulus package as they are facing the crisis of global recession.

The finance minister in his budget speech on June 11 did not propose any stimulus package for the country's main export earning RMG sector although he proposed a stimulus package worth Tk 5,000 crore. But the minister did not mention which sector would be benefited from such reserved fund.

"We did not get anything from the interim stimulus package and in the proposed budget the RMG sector was bypassed which is very unfortunate for the sector," Murshedy said at a post-budget press conference at the BGMEA office.

He demanded 5 percent subsidy on bank interest rate and subsidy on diesel purchase at Tk 10 per litre for their survival during the recession.

The president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said the government should give export performance bonus or cash incentive at a rate of 10 percent against export.

He said the VAT on all usages of utilities by the garment factory owners should be withdrawn.

Murshedy criticised the provision to allow whitening of undisclosed money in the proposed budget, as the honest taxpayers would feel discourage to pay taxes.

The BGMEA chief also urged the government for reinstating the tax-holiday facility up to 2015 and fixing 1 percent import duty on export-oriented capital machinery.

The government should give long-term loan for setting up effluent treatment plants (ETPs) in the factories to save country from environmental pollution, he said.

He also urged the government for extending the loan rescheduling facility without down payment up to 2010 from the existing June 30, 2009.

"We demand that the taskforce committee on global recession will meet soon to give allocation for the RMG sector from the proposed stimulus package of Tk 5,000," he said.

News From: BGMEA

Textile exports decline in July-August

Textile exports have declined by 8.36 percent during the first two months of the current fiscal as compared to the same period of last year. Provisional trade figures, released by the Federal Bureau of Statistics (FBS) on Thursday, showed that the textile exports during July-August 2009-10 had declined to 1.617 billion dollars as compared to 1.765 billion dollars during the same period of last year.

Detailed analysis of the data showed negative growth in six of the total 13 exporting sub-sectors of textile group. Cotton cloth showed a negative growth of 27.30 percent during the period under review; cotton corded or combed: 80.87 percent; knitwear: 12.44 percent: bed wear: 11.30 percent; towels: 10.68 percent; and tents, canvas and tarpaulin: 37.40 percent.

Export of cotton cloth declined during the first two months of current fiscal to 225.081 million dollars from 350.884 million dollars for the same period of last year, exports of knitwear declined to 320 million dollars from 365 million dollars and bed wear to 259 million dollars from 292 million dollars.

The exports of towels dipped to 103 million dollars during July-August to 115 million dollars whereas tents, canvas and tarpaulin to 6.68 million dollars from 10.673 million dollars for the same period of last year. According to FBS figures, the export of cotton raw cotton showed 33.50 percent growth to 19.653 million dollars during the first two month of the current fiscal from 14.721 million dollars for the same period of last year.

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The first Chinese shoe wholesale market to open in Moscow

The shoe wholesale market is located in Signahl Street in Moscow with a business area of 3600 square meters that can provide over 200 stores for Chinese traders, it has been planed to open business at end of this year.

It is said the project is invested by an overseas Chinese businessman, all the shoes and related products sold in this market will come from China but must be through the official customs clearance, it is estimated the wholesale business will reach to 30 billion rubles in the first year.

President of Russia-China Center for Economic and Trade Cooperation said this will be the first shoe wholesale market for Chinese businessman since closure of Cherkizovskya market.

News From: www.chinaleather.org

Fuzhou in Fujian province increases its shoe export to Africa

Fujian Inspection and Quarantine Bureau said shoe export from Fuzhou shoemaking sector to African countries increased 3.72% and 10.91% both in volume and value in the first eight months, value increases to 60.636 million U.S. dollars.

The organization attributes the growth to quality improvement and enhancing management on shoe production.

News From: www.chinaleather.org

Argentina-Hide market collapse hits beef prices

BEEF INDUSTRY CRISIS FALL IN HIDE PRICES.

The downturn in orders for finished leather in Argentina, has sent the prices of hides tumbling at the meat plants of country. The price per hide has gone from US$35-40 to US$10-12 per hide.

This money was traditionally relied on by the beef plants, to cover the costs of production and transport, leaving change of US$10-12 per head. The reality today is that the beef plants, have to pay an addition US$15 to produce their beef.

The embattled United States is not buying leather for upholstery in the car industry.

Argentina is a leading global supplier of finished leather, as no hides are allowed to leave the country raw, they must be processed into leather within the country.

There have been 1,200 tannery workers laid off in the last two weeks, more lay offs are expected.

While China still remains the main market for leather, the United States have always preferred Argentine leather for their automobile industry, making them the second largest market

The leather industry is worth well in excess of US$1.2 billion a year, to Argentine exports.

News from: www.chineseleather.org

Textiles Ministry and FICCI to jointly organise Workshop on Applications of Technical Textiles in Agriculture & Environment

Ministry of Textiles and FICCI are jointly organising a Workshop on ‘Strengthening-Government-Industry-Consumer Partnership on Agrotech and Oekotech Textiles’ here tomorrow . Senior Officers from the Central and State Governments will address the delegates. Over 100 delegates from various sectors like Agriculture, State Governments, Agricultural Universities, Forest Departments and Institutes are attending the workshop.

Technical Textiles products used in the agriculture are known as Agrotech and those used for environmental protection are called Oekotech. The technical textiles are used in agriculture to fabricate shade-nets, crop-covers, mulch-nets, anti-hail nets, bird protection nets, fishing nets and greenhouse covers. The use of these items is very limited in the context of Indian agriculture. The major applications of Oekotech are for landfill waste management. It includes products used to prevent leakage of municipal or hazardous waste in landfills and suitable use of waste. The consumption of these technical textiles products remains limited despite their perceived benefits. With rapid urbanisation, the waste management has because major issue in India and Oekotech applications provide an effective way of managing the waste in an environment friendly manner.

The objective of the workshop is to sensitize stakeholders about myriad applications of technical textiles in agriculture and environmental engineering and to create awareness amongst the stakeholders about the benefits of these items. The Workshop will also focus on various rules/legislations that need to be amended to facilitate the use of these textiles in various applications.

Shri Vijay Sharma, Secretary, Ministry of Environment & Forests, Smt. Rita Menon, Secretary, Ministry of Textiles, Dr. U.K. Gangopadhyay, Director, Synthetic Art Silk Mills Research Association (SASMIRA), Shri Kamlesh Bhatia, Member, FICCI Taskforce on Technical Textiles and Shri Ranjit Dash, Member, FICCI Taskforce on Technical Textiles will address the Workshop.

News From:  www.pib.nic.in

INDIAN AGROTECH TEXTILES MARKET TO BE AROUND RS. 1,300 CRORE BY 2012-13

The applications of technical textiles in agriculture will help to bring in the second Green Revolution in Indian Agriculture, said Smt. Rita Menon, while addressing the workshop on Agrotech and Oekotech Textiles, here today.

Agriculture is the main stay of Indian economy and 70% of the population is dependent on Agriculture for their livelihood, and it is the bounden duty of the Government to ensure foods security for its citizens, said Secretary (Textiles).There is little scope for increase in land for agriculture activities, with conflicting demand for industry and allied activities, and there is an immediate need to increase yield and stem the post harvesting losses, said Secretary (Textiles). Agrotech will play an important role and we hope to double the fruit and vegetable production to 340 million ton in next five years from 170 million ton at present with the judicious use of Agrotech, similarly, post harvest foodgrain wastage can be reduced from 7% to 4% by applications of Agro Textiles, said Secretary (Textiles).

Secretary (Textiles) said that the Agrotech textiles have a huge potential, and its market size is expected to increase from Rs.553 crore in 2007-08 to over Rs. 1,300 crore by 2012-13. There is an urgent need to develop standards, procedures and manufacturing capacities of international standards, if India is to compete globally and ensures food security and income security to farmers, emphasized Secretary (Textiles).

Secretary (Textiles) said that the Government have set up a Centres of Excellence (CoE) for Agrotech group of technical textiles at Mumbai to provide one-stop facilities for testing, human resource development and research and development. Already Government has removed fiscal anamolies affecting the development of technical textiles and we are providing 10% capital subsidy under Technology Upgradation Fund Schemes (TUFS) for machinery used for manufacture of technical textiles, said Secretary (Textiles).

The environmental sustainability and waste management has become the prime focus of policy maker, said Shri Vijai Sharma, Secretary, Ministry of Environment & Forest. Daily 150 million tons of waste is generated in our country and we are recycling only 10% to 20% of it, compared to 60% to 70% in developed countries, said Secretary (MoEF)). We have to increase consciousness of the community about the need for sustainable development and waste recycling and there is an urgent need to set standards, higher level of definitiveness and creates synergy between Industry and Government to increase the use of Oekotech group of technical textiles. We should immediately institutionalize the consultative process and set up an Inter-Ministerial Group on these issues with participations various stakeholders. If this initiative has to succeed there is a need to develop of public private partnership modle and develop entrepreneurship to sustain the momentum, said Secretary (MoEF).

Technical Textiles products used in the agriculture are known as Agrotech and those used for environmental protection are called Oekotech. The technical textiles are used in agriculture to fabricate shade-nets, crop-covers, mulch-nets, anti-hail nets, bird protection nets, fishing nets and greenhouse covers. The use of these items is very limited in the context of Indian agriculture. The major applications of Oekotech are for landfill waste management. It includes products used to prevent leakage of municipal or hazardous waste in landfills and suitable use of waste. The consumption of these technical textiles products remains limited despite their perceived benefits. With rapid urbanisation, the waste management has because major issue in India and Oekotech applications provide an effective way of managing the waste in an environment friendly manner.

The workshop sensitized the stakeholders about myriad applications of technical textiles in agriculture and environmental engineering and to create awareness amongst the stakeholders about the benefits of these items. The Workshop also focused on various rules/legislations that need to be amended to facilitate the use of these textiles in various applications.

News from:
www.pib.nic.in

IAM announces India’s first Fashion Innovation Lab in association with Tukatech Inc., U.S.A.

The Apparel Export Promotion Council (AEPC) today said the Foreign Trade Policy for 2009-14 has measures which are much short of those required to boost exports in the current global economic scenario.
Duty-free scrips, which are currently worth two per cent of export values for the United States and the European Union, should have been increased to five per cent. Nor has the scheme been extended beyond September, said AEPC chairman Rakesh Vaid.
“This will cripple our export performance as over 70 per cent of Indian exports are to the European Union and the United States,” he said.
Also, the zero duty under Export Promotion Capital Goods Scheme for textile and apparel will not benefit small and medium exporters as it excludes current beneficiaries under the Technological Upgradation Fund Scheme and beneficiaries of the Status Holder Incentive Scheme in that particular year.
The addition of 26 new markets under Focus Market Scheme as announced in the policy may yield marginal results in the short run, said Mr Vaid.
The policy also increased cash assistance available under Focus Market Scheme from 2.5 to three per cent. At the same time, incentives available under the Focus Product Scheme have been raised from 1.25 to two per cent.
The Market Linked Focus Product Scheme has been expanded for synthetic textile fabrics, textile made-ups, knitted and crocheted fabrics if exports are made to 13 identified markets – Algeria, Egypt, Kenya, Nigeria, South Africa, Tanzania, Brazil, Mexico, Ukraine, Vietnam, Cambodia, Australia and New Zealand.
“These measures do not compensate for a comprehensive and competitiveness enhancement strategy in the form of a stimulus package as Indian goods are over 20 per cent costlier than those supplied by some competing countries like China, Bangladesh, Vietnam and Camabodia,” said the AEPC chairman. The higher cost is due to higher credit rates, wages for labour and
transaction costs.
Full News at: www.aepcindia.in

BDS Jeans stores opened in towns

Will the brand speciality stores be opened in downtown area to establish a garment brand? Li Daobin, general manager of Pinghu Yonglian Clothing Rinse Co., ltd., has just done the opposite. The company decided not long ago to open one franchised store at every town of Pinghu city within a year after establishing a BDS jeans store in towns of Huanggu and Quantang respectively. The monthly sales amount of each store can reach RMB 80,000 to 90,000 only after operation of two or three months, far exceeding expectation.
News From: www.cnga.org.cn

Textile standard and quality seminar to be held in Keqiao in September

According to the source of related departments, the seminar on national textile standard and quality to be held in Keqiao from September 28 to 29, is jointly hosted by China Textile Information Centre (CTIC), Testing Centre of China National Textile and Apparel Council (CNTAC), and Standards and Testing Committee of China Textile Engineering Society (CTES), and attended by the relevant people in charge of quality standards of textile and garment enterprises nationwide, the heads of textile testing institutes, and experts from Standardization Administration of China (SAC) and AATCC American Association of Textile Chemists and Colorists), ASTM (American Society of Testing Materials ), ISO (International Organization for Standardization).

Chinese national standards & testing technology, and laws & regulations, the group discussions on special topics will also be conducted at the seminar, where the attendees can exchange their ideas and consult experts face to face on the issues of textile testing, besides the latest topics on the international textile standards.
News from: www.cnga.org.cn

China National Garment Association being awarded as 4A industry association

On June 23, in the Great Hall of the People, China National Garment Association was assessed by the Ministry of Civil Affairs as 4A industry association. Jiang Hengjie, Executive Vice President of CNGA, said that it is the joint efforts of government departments, all members under CNGA and CNGA itself to make this happen. He believes that we have to take this opportunity to hold the reform and innovation spirit and strengthen infrastructure construction and deepen the internal reform and governance, and to play a greater role in the development of China's garment industry.
News From: www.cnga.org.cn

China International Clothing & Accessories Fair

Originated in 1993, China International Clothing & Accessories Fair (CHIC) is held annually in Beijing. Over the past decade, CHIC has been growing with the development of Chinese garment industry. CHIC is distinguished by an exhibition area of 110,000 square meters, nearly 1000 exhibitors from over 30 countries and regions, and more than 100,000 professional visitors. CHIC is not only the biggest clothing trade fair in Asia, but also widely recognized as a world famous industry exhibition. It has become the best platform of market expansion, brand promotion, business negotiation and international exchanges for clothing companies, as well as a valuable apparel exhibition brand.

News From: www.cnga.org.cn

Apparel export sector let down by interim trade policy

An apex body of garment exporters today said it is extremely disappointed by the government’s inaction to help the sector tide over impact of global economic downturn.
“The textile and apparel sector has been total ignored,” said chairman of the Apparel Export Promotion Council (AEPC) Rakesh Vaid. “No impetus has been provided in the two economic stimulus packages or the interim foreign trade policy.”
The procedural simplifications announced under the duty entitlement passbook (DEPB) scheme and cut in customs duty from five to three per cent under the export promotion capital goods (EPCG) scheme will have only marginally beneficial impact, he said as there is no move to enhance new production capacity by the industry to reverse falling profit margins.
The textile and apparel sector employs 35 million people directly and is the second largest provider of employment after agriculture, contributing 14 per cent to the industrial production and four per cent to the GDP.
India exported garments worth 9.7 billion dollars in 2007-08 and ranks sixth among top exporters worldwide.
Due to falling sales in the United States (the largest importer of readymade garments) and Europe, Indian exports have been hit badly resulting in massive job losses. About one million workers will be out of work by March-end, according to industry estimates.
Apparel exports from India are likely to stagnate this fiscal year, said Mr Vaid.
News from: AEPC

Garment exports fall short of $11.6 billion target due to economic slowdown

New Delhi, Apr 29 – Garment exports from India fell 14 per cent short of the 11.62 billion dollar target for 2008-09 but leveled 4.6 per cent over last year’s performance.
Provisional figures released today by the Apparel Export Promotion Council (AEPC) showed that 10.13 billion dollars worth of garments were exported in the last financial year compared to 9.68 billion dollars in 07-08.
In rupee terms, the figures work out to Rs 46,628 crore for 08-09, up 19.55 per cent from Rs 39,002 for 07-08.
“We are happy that garment exports have crossed 10 billion dollar mark for the first time,” said AEPC chairman Rakesh Vaid. However, he expressed concern over consistent deceleration in growth rate over the past two years.
Mr Vaid hoped the new government (after general elections) will take steps to boost the sector so that India can retain its share in international markets.
AEPC officials said the first four month of 08-09 were good with apparel exports moving up to 963 million dollars in April compared to 682 million dollars in the same month of previous year.
The figures were up again in May 867 million dollars (779 million dollars), in June 891 million dollars (764 million dollars) and in July 876 million dollars (810 million dollars).



But the downward movement started in August when retail orders from the United States, the European Union and elsewhere began to feel the impact of global economic recession. Garment exports tumbled to 792 million dollars in August 08 from 800 million dollars in the corresponding period of previous year.
In September, the figure slid further to 656 million dollars (683 million dollars). In October, the exports totalled 658 million dollars (713 million dollars) which moved down further to 700 million (709 million dollars) in November.
The depreciating value of rupee against US dollar, however, helped in December and January as exporters were able to lower prices and bag more orders from competing countries like China, Bangladesh and Vietnam.
So Indian garments worth 920 million dollars were exported in December 08 compared to 890 million dollars in the same month of previous year. In January 09, the figure moved up to 972 million dollars compared to 923 million dollars in January 08.
It declined again in February to 908 million dollars (951 million dollars) and 933 million dollars (963 million dollars) in March.
Many garment exporters say the negative trend is likely to continue during the first quarter of current fiscal (April to June 09-10). Significantly, the unit value realisations have also slipped in recent years.
For example, the realisations for garments exported to the United States fell from 3.6 dollars per piece in 07 to 3.4 dollars in 08 to 3.3 dollars in January and February 09.
Recent surveys conducted by the AEPC in clusters where garment manufacturing in concentrated suggest many exporters have temporarily shut their units, or cut down the number of working days from seven to five or four, or cut the number of shifts from three to two or one.
The AEPC represents over 8,000 small, medium and large exporters. The country ranks sixth among the top garment exporting countries globally.
Nearly 78 per cent of garments exported from India are cotton-based. The main products are ladies garments, blouses, skirts and T shirts, trousers.
News From: AEPC

Demand from textile cos firms up starch mart

The domestic starch makers are witnessing a rise in demand for their finished products. This upsurge can be attributed to the textile sector which players say will sustain. According to them, growth in demand will help firm up starch prices.
The starch prices have increased to Rs 800 for a bag (1 bag = 50 kg) from Rs 725-730 a bag in the last couple of weeks, and are expected to rise to Rs 840 a bag. Starch is essentially produced from maize as a raw material.
“Demand from the textile industry for starch, which declined to as low as 30 per cent, has bounced back to 40 per cent,” said Navin Vij, general manager (marketing) of the Delhi-based Bharat Starch Industries.
Normally, during summer the demand for starch goes up and sustains till rains set in by June-end. Higher prices of tapioca starch is another factor which is boosting maize-based starch. On an average, cost of tapioca starch is ruling around Rs 20 a kg, Rs 4 higher than that of maize starch.
“This parity in prices has also boosted demand for maize-based starch,” added Majithia.
Amol S Sheth, president of the All India Starch Manufacturers’ Association, told Business Standard, “Demand is on the upside and will reflect on the prices as well in the near term. The prices should go up by around 5-10 per cent.”
Concern over adequate availability of maize continues to haunt the starch manufacturers. Presently, the producers are hardly keeping stocks for a month since prices of maize are up.
“It makes no sense to keep a lot of stocks at such a higher price,” said Vishal Majithia, managing director of the Mumbai-based Sahyadri Starch. According to him, the landing cost of maize at the factory for the company is Rs 850 a quintal. Likewise, in case of Bharat Starch, landing cost at its factory in northern part of the country is around Rs 900-950 a quintal. “Higher minimum support price (MSP) of maize is the main culprit which has pushed up the prices of raw material,” said Vij.
News from: AEPC

Carlyle invests $20 mn in women's fashion house Ellassay

Global private equity firm The Carlyle Group announced its US$20 million investment in Ellassay, a high-end Chinese women's fashion house. The investment, funded by Carlyle Asia Growth Partners (CAGP), will enhance Ellassay's product development, brand building, market expansion, business ties and the overall management. Further financial details were not disclosed.

Since opening its first store in Shenzhen in 1995, Ellassay has expanded to a sales network of more than 280 retail shops across the country and has seen revenue increase by 30-50 percent annually. Ellassay has become a top-tier female fashion brand in China that is known for its elegant style. It was recognized as a top Chinese fashion brand of year 2008 by China International Clothing & Accessories Fair. With Carlyle's support, Ellassay aims to continue its growth in China and gain recognition in international markets.

Alan Xia, President of Ellassay, said: "Our partnership does not merely focus on capital injection, but more importantly, on shared objectives of how to expand our brand, advantageously deploy Carlyle's resources and develop Ellassay into a sustainable international brand. In times of economic downturn, it is imperative to set sight on our long-term strategic direction and brand positioning in order to sustain and prosper for years to come. " He added, "This investment is a ringing endorsement of our success story and ability to continue to lead China's fast-expanding high-end fashion industry."

Wayne Tsou, Managing Director and Head of CAGP, said, "This transaction follows our investments in fast growing domestic branded Chinese consumer companies such as restaurant chain Babela and leading fashion sportswear enterprise Xtep last year. We maintain our confidence in the Chinese consumer and retail market and our commitment to invest in China. Carlyle has accumulated extensive experience in brand building and management in the consumer and retail space, which is a core industry focus of the firm. We look forward to sharing with Ellassay our successful experiences and industry ties in the relevant space. We believe further investment in research, resources, talent, channel development, and information technology management systems are beneficial to growing a high-end fashion brand such as Ellassay. "

Founded in 1995, the brand name of Ellassay derived from "Avenue des Champs-Elysees", representing the French-style chic and elegance. Born with internationalized horizon and solid brand equity, Ellassay dedicates to providing modern ladies with apparels of delicate lifestyle. Ever since 1995, Ellassay has started its way of spreading out the charm of the characteristic design. The company expanded from Shenzhen to Guangzhou, and then to Beijing and Shanghai.

News Source : CNGA

U.S Association of Garment & Leather Shoes visits Vietnam

A 17-member delegation of the U.S. Association of Garment and Leather Shoes and the law firm ST&R met with representatives of Viet Nam's Ministry of Planning and Investment, Ministry of Trade and Ministry of Industry in Ha Noi on Jan. 21.

The delegation led by Vice President of the Association, Fawn Evenson.

The U.S. guests also met with representatives of the Viet Nam Chamber of Commerce and Industry, the Textile and Garment Corporation, the Leather Shoe Corporation and the Viet Nam Leather Shoe Assocation.

The guests were briefed on business opportunities, Viet Nam's policy on foreign investment, trade policy, working conditions at textile and garment, and shoe enterprises and workers' income.

Later, the U.S. business delegation made a tour of several textile and garment establishments.

The U.S. delegation will visit some garment and shoe establishments in Hai Phong and Ho Chi Minh City, before completing the tour.--VNA

News Source: Emabssy of Vietnam

Indonesia: Garment exports to continue momentum in to next year

The economic turmoil has started taking its toll worldwide and has started affecting operations of a majority of countries in the business of exports of textile and clothing. But the one country to beat this trend seems to be Indonesia which has a booming garment export industry and which accounts for 60 percent of all shipments from the textile sector.
This has come about due to the massive investment to the tune of US $363 million in the garment industry in the current year, which is expected to bring a growth rate of 11.4 percent in the present year and 10 percent in 2009. Clothing shipments are projected to touch $6.4 billion by end of this year compared to $5.82 billion last year.Clothing shipments are expected to grow at a faster pace than the 8 percent projected for the textile sector as a whole.
Sectoral exports are anticipated to reach $10.8 billion from $10.3 billion achieved in the last year. In spite of massive layoffs in the core textile industry, the garment industry has added 50,000 employees to its headcount of 1 million workers in 2008. This level of employment in the apparel sector has been made possible only because of the substantial investment in the sector in 2008, which is the highest in five years. Irrespective of the layoffs in the textile sector, the booming garment sector has still not witnessed any closures or part closures leading to layoffs till date.
Exports from the garment industry account for a marginal 3-4 percent of global exports and ranks 11th among all global exporters, but is expected to better in future years, if it complies with best manufacturing practices as prevalent in a few other Asian countries. Experts aver that the biggest stumbling block faced by exporters is lack of proper communication and marketing tools and also to a great extent research and development activities.But they add that the markets of the US and EU will continue to be the main markets from the sector, with Russia and the Middle East acting as buffers. The US is the major destination with a market share of 26 percent, followed by the EU with 12 percent, ASEAN 5 percent and Japan 3 percent.

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