04 January 2022, Mumbai:

Sartirana Textile Show 2022 was scheduled to take place 14-23 January 2022 in Bergamo but due to the worsening pandemic situation in Italy, the Fair in Bergamo has been postponed to a future date. The show was planned to be concurrent with the events “Italian Fine Art” and “Bergamo Arte Fiera” and they are postponed.

According to the organizers a new schedule is not known yet and they hope to see  you in Bergamo when the situation gets better.

Jozan   (The news article has not been edited by DFU Publications staff)

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04 January 2022, Mumbai:

Despite these obstacles, the worldwide textile industry is predicted to grow at a 4.3 percent CAGR from 2020 to 2027, reaching 1,522.3 billion dollars. In 2020, the sector was estimated to be worth US$ 1,005.2 billion. 

According to ResearchAndMarkets.com's analysis, the global textile market size, trends, and growth opportunity, by raw material, product, application, region, and forecast to 2027. 

Over the projected period, the worldwide textile market is expected to develop due to an increase in demand for garments from the fashion industry, as well as the growth of e-commerce platforms.

North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa are among the five regions that make up the global textile market. In the North American textile industry, the United States is likely to be the largest market. 

North America is a major producer, exporter of raw cotton, and buyer of raw textiles. Fashion is the most popular application segment in the region, owing to the rapid-changing fashion trends and the ease with which they may be adopted thanks to the rise of online fast fashion companies.

According to the report, the shift in consumer demand toward sustainable products is prompting large textile companies to restructure their businesses and invest in sustainable manufacturing processes. In the North American textile industry, the United States is likely to be the largest market. 

North America is a major producer, exporter of raw cotton, and buyer of raw textiles. Fashion is the most popular application segment in the region, owing to the rapid-changing fashion trends and the ease with which they may be adopted thanks to the rise of online fast fashion companies.

According to the report, the shift in consumer demand toward sustainable products is prompting large textile companies to restructure their businesses and invest in sustainable manufacturing processes. 

Toray Industries Inc., PVH Corp., Hyosung TNC Corp., Aditya Birla Nuvo Ltd., Texhong Textile Group Ltd., Chori Co. Ltd., Nisshinbo Holdings Inc., Far Eastern New Century Corp, Industria de Diseno Textil SA (Inditex SA), B.C. Corporation, and others are listed in the report.

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04 January 2022, Mumbai:

FTAs have been a crucial catalyst in growing exports of LDCs or the buying country's preferred trade partners, particularly in the case of the United States, which is the country's top garment buyer. 

According to OTEXA data, the country's garment imports were US $ 69.85 billion from January to October of this year, up from US $ 69.85 billion in 2020. 

Around 16 percent of total import value was supplied by nations with FTAs with the United States, with import value under various FTAs totaling US $ 11.16 billion, representing a 28.30 percent annual rise.

In the first half of this year, the Dominican Republic and Central America accounted for roughly US $ 5.37 billion in US import values under the CAFTA-DR agreement, compared to US $ 4.03 billion the previous year. Under the USMCA, Canada and Mexico share FTA privileges with the United States, and both nations appear to have benefited this year. 

Canada's garment exports to the United States under the FTA totaled US $ 381.88 million, while Mexico's portion remained at US $ 2.30 billion.

Under the FTA, Peru sold garments worth US $ 573 million to the United States, while Colombia and Chile shipped US $ 198.77 million and US $ 4.73 million, respectively. 

According to OTEXA, other prominent destinations with FTAs with the United States are Israel, Jordan, and South Korea, with a combined value of US $ 1.32 billion in imports from these countries. 

In the United States, fashion categories have witnessed a resurgence this year, at least until October, as customers passionately but cautiously spend on clothes goods. It will also be interesting to monitor how FTAs affect US purchasing in the following months.

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01 January 2021, Mumbai:

Bangladesh and Thailand are near neighbors, connected by the Bay of Bengal. The development of these maritime ties would benefit both countries in terms of trade, investment, and regional communications. 

The two countries are in talks to sign a free trade agreement (FTA) to boost trade and investment. Bangladesh is geographically positioned as a gateway between ASEAN and SAARC with potential access to both for each other’s export-driven manufacturers.

ASEAN includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam, while SAARC includes Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka. 

The Chittagong seaport is the main seaport in Bangladesh. 90 percent of Bangladeshi trade is conducted through the Chattagram Port Terminal, with the rest being taken up by Bangladesh’s Ports at Mangla and Payra.    

Thailand’s Ranong Port is situated on the Kraburi River of the Kra Peninsula, across from Myanmar and on the Indian Ocean, coast and lies 1,220km from Chittagong. 

Thailand’s Southern Economic Corridor project, approved by the Government in August 2018, emphasizes the development of Ranong port as a gateway to trade with Bangladesh, India, Myanmar, and Sri Lanka. Using Ranong port for trade with Bangladesh’s Chittagong, Payra, and Mangla ports will reduce the distance between the two countries and boost trade. Then this connectivity can then be extended to India’s Kolkata, Chennai, and Mumbai ports. 

The launch of direct shipping services between Chittagong and Ranong ports has received a new push as trade between the two countries is increasing.

Bilateral trade between Bangladesh and Thailand reached US$837.08 million in 2019-20. Bangladesh’s total exports to Thailand in 2020 were US$35.46 million while imports from Thailand were worth US$801.3 million, very much in Thailand’s favor. 

Bangladeshi exports to Thailand are on an upward trend, however. This year exported values are expected to reach just under US$40 million, a 12 percent increase YoY. 

According to FDI stock data in Bangladesh, Thailand is the 15th largest investor in the country. This however would increase significantly if an FTA can be agreed upon, and the two countries build direct maritime connectivity between Chittagong and Ranong ports. 

There is precedent. When Bangladesh signed FTA with the SAARC members in 2006, its imports and exports doubled within ten years, being a relatively constant (there was a dip in 2011) and sustainable 10% GDP growth in trade per annum. 

In terms of commodities, Thailand mainly exports cement, cereals, plastics, man-made staple fibers, sugar and sugar confectionery, machinery and mechanical equipment, cotton and cotton cloth, salt, sulfur, clay, stone, and mineral fuels to Bangladesh. 

In the reverse direction, Bangladesh exports garments, vegetables, textile fibers, garments, animal products, electrical and electronic equipment, frozen fish, and crustaceans to Thailand. 

Direct sea connectivity between Chittagong and Ranang can be expected to play an important role in expanding trade and commerce between the two countries.

The time and cost of transporting goods between them can be reduced by 30 percent and are likely to play a key role in building ties with other Southeast Asian countries, including Myanmar and India. The introduction of direct shipping between the two countries will encourage traders from both to expand their regional trade and investment.

Thailand could increase trade ties with India, Bangladesh, and Sri Lanka under the framework of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).

ASEAN BRIEFING  

(The news article has not been edited by DFU Publications staff)

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04 January 2022, Mumbai:

Despite the global COVID-19 turmoil, Bangladesh’s readymade garment (RMG) export defied all odds to score a spectacular export performance in the first six months of FY2021-22.

From July to December of FY2021-22 RMG industry exported $19.9 billion, according to the Export Promotion Bureau (EPB) data. Gaining 28.02% compared to the same period last year – which was $15.545 billion.

At the same time, the two sub-sectors of apparel – the knitwear and woven garment also achieved tremendous performance in the July to December period of FY2021-22.

The knitwear sector exported $11.16 billion, which is 30.91% higher compared to the same period last year.

Asif Ashraf, Director, BGMEA said to Textile Today, “This outstanding 30.91% growth of knitwear sector is the reflection of apparel industry’s hard work. At the same time, the regional scenario of order shifting from China, Myanmar turmoil and the COVID situation in Vietnam has boosted our orders. under the leadership of BGMEA.”

“The BGMEA’s leading from the front has given the RMG industry the mileage it needed. Like in the COVID-19 situation, our leadership has convinced the govt. by emphasizing the risk of keeping the factories closed and at the same time benefits of keeping the factories open.

And ultimately showed the govt. that the garment industry can keep the factories open maintaining the health and safety standards,” Asif Ashraf said.

Asif added, “The increase in raw material price is one of the reasons that we got a little better prices this year.”

Another sub-sector, the woven segment suffered most in the pandemic period. But most amazingly the long underperforming woven sector exported $8.73 billion – achieving an outstanding 24.50% six-month period growth.

In December alone, the woven sector broke all previous records after attaining $1.86 billion, the maximum in a single month and up 48.17% year-on-year, according to EPB data.

Industry experts say with the opening of global economies the brands and retailers were placing adequate orders as demand increased for formal wear.

Though, since the local weavers can supply only 40% of raw materials for woven garments, manufacturers have to depend on Chinese suppliers for the rest of the fabrics. And any disruption to the Chinese supply chain may sternly affect Bangladesh’s garment export. So, local garment manufacturers need to reinforce their capacity in the woven sector.

Asif highlighted the future perspective of the apparel export trend. He said, “As we are in the market, we can see that this upward trend will sustain in the long run.”

“We are at a critical juncture of the apparel manufacturing shift. We might miss the train if we do not take the right decision at the right time,” Asif said.

“For us, the govt. need to facilitate the RMG industry with better logistics support, raw material support to cut lead time – which will also cut cost – to sustain the growth. For example, only Benapole land port is open to import cotton and yarn from India – as till now a majority of cotton and yarn comes from India. BGMEA has urged the govt. to permit all the land borders to facilitate cotton and yarn import.”

“Recently, BGMEA sat with Bangladesh railway – it showed that the railway has the logistics to bring cotton and yarn from Banglabandha land port to the west side of the Jamuna Bridge rail station. And this will reduce lead time and reduce cost.

Overall if the apparel industry is given all the necessary facilities, then the industry will move to a new height.”

TEXTILE TODAY 

 (The news article has not been edited by DFU PUBLICATIONS staff)

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The Goods and Services Tax (GST) Council resolved on Friday, at its 46th meeting, to postpone the proposed increase in the textiles sector's tax rate from 5% to 12%, which was set to take effect on January 1. 

The GST rate for textiles will remain unchanged for the time being, with a ministerial panel reviewing the rate structure by February, Finance Minister Nirmala Sitharaman said after the meeting.

"Beginning in December, representations began to arrive, and on December 29, a letter from the Gujarat FM arrived, prompting the emergency meeting." 

"The emergency Council meeting today decided to keep the status quo and not go to 12%, from 5%, which means we won't perform the correction now in the case of textiles," she explained.

When the taxes on output or finished product are lower than the taxes on inputs, an inverted duty structure results, resulting in an inverse buildup of the input tax credit, which must be returned in most situations.

The government has been forced to rethink the duty structure due to the inverted duty structure, which has resulted in a stream of revenue loss. To remedy the inverted duty structure, the GST Council suggested certain rate changes for footwear and textiles during its 45th meeting in September.

The meeting on Friday was conducted to examine one item on the agenda: rate revisions in the textiles industry.

The Finance Ministry announced a standard 12% rate for manmade fibre, yarn, textiles, and apparels in November, as well as a 12% uniform rate for footwear.

The rate increase was announced to take effect on January 1st. At the moment, the tax rates for manmade fibre, yarn, and fabrics are 18%, 12%, and 5%, respectively.

The proposed rate hike for textiles from 5% to 12% has raised concerns among many states and industry organisations. Amit Mitra, the West Bengal Chief Minister's Principal Chief Advisor, urged Union Finance Minister Nirmala Sitharaman to reverse the proposed raise last week.

He predicted that the new tariff structure will result in the closure of 1 lakh textile firms and the loss of 15 lakh jobs across the country. KT Rama Rao, the Telangana Industries Minister, has also requested the Centre to drop the proposed GST rate hike.

Gujarat wrote to the Union Finance Minister, expressing concern that the decision to raise the GST rate on textiles from 5% to 12% will affect a large number of taxpayers in the textile industry. The textile industry has warned that such a decision might have a detrimental impact, resulting in a decline in demand and recession, according to the state. Sitharaman stated that the industry felt "there could be a temptation not to come into the formalised system and the immediate pressure to be in the realm of the informal segment of the business" while making its representation, adding that it was also felt that burdening the lower end of the buyers was not the intention. She went on to say that every state minister is on board with fixing the inverted duty system. She went on to say that the ministerial panel, which is already looking into rate rationalisation, will now look into the textiles sector as well, and that the Council will likely discuss the group's proposals in late February or early March.