The government will unveil an ambitious new national textiles policy in July that seeks to create 35 million new jobs by attracting foreign investments, according to media reports. “The new national textiles policy aims at creating 35 million new jobs by attracting foreign investments. The policy will be announced in July after the Cabinet approval,” textiles secretary SK Panda told media persons in Mumbai. An expert panel had submitted the draft of the new policy, which aims at addressing concerns over lack of enough skilled workforce and labour reforms besides attracting investments and providing a roadmap for the textile and clothing industry. The panel was constituted last year. The textiles ministry has also sought Rs 12,000 crore for the Technology Upgradation Fund (TUF) scheme for the ongoing 12th Plan (2012-17), he said. The government is also considering setting up modern apparel garment manufacturing centres in each of the seven north-east states. “We have decided to establish one modern apparel garment manufacturing centre in every northeastern state. The Centre will spend Rs 20 crore for this new programme,” Panda added. Meanwhile, Clothing Manufacturers Association of India (CMAI) said it is hopeful of achieving exports target of $18 billion this fiscal, up from $16.8 billion in previous year. “We are hopeful of achieving an exports target of USD 18 billion in FY16 due to improving US economy. In view of the infrastructure issues and rising labour cost in Bangladesh and China, export growth looks brighter for us,” CMAI president Rahul Mehta said.

Bangladeshi exporters, including apparel makers, will now have to pay 0.6 per cent tax at source on their income from export from the upcoming financial year, as the government slashed the rate from the proposed 1 per cent, according to reports in the Bangladeshi media. At present, the National Board of Revenue collects 0.3 per cent tax from garment manufacturers on their annual income from exports. The rate is 0.6 per cent for other exporters. In his budget speech on June 4, Finance Minister AMA Muhith had proposed to increase the rate to 1 per cent for all exporters. The change was brought through the passage of the Finance Bill 2015 in parliament on June 29 along with some other changes. Muhith placed the changes in the House while making his closing remarks before the bill got through in voice vote unopposed. Originally, the bill was passed with 0.8 per cent tax at source for exporters. But Prime Minister Sheikh Hasina requested the finance minister to reduce it to 0.6 percent. She argued that if the exporters did well next year, the tax rate could be increased. The finance minister accepted the PM’s line of reasoning.

Egyptian cotton was once the gold standard for the world’s finest linens and clothing and its supple fibre is still prized for its softness and durability. But in Egypt, farmers are abandoning the crop that had become as legendary as the Pyramids. Farmers are switching to grains because long-fibre cotton isn’t profitable without government aid, and cash subsidies are ending as the country grapples with one of the biggest budget deficits. Production probably will tumble 35 per cent in the next season to the lowest on record, the US Department of Agriculture has said. Output has been declining for three decades as textile makers shift to cheaper, lower-quality fibre from Asia and fabrics like polyester. Demand for premium cotton accounts for less than 3 per cent of the global market, so Egypt decided subsidies for the crop didn’t make sense in a country that has become the world’s biggest wheat importer because it can’t grow enough grain to meet rising demand for bread. Egypt has struggled with political turmoil and the worst economic slump in two decades since the ouster of president Hosni Mubarak in 2011. The government cut energy subsidies and received $6 billion in aid from Saudi Arabia, UAE and Kuwait this year. Egyptian production has been slumping since reaching a record 2.49 million bales in 1970, according to the USDA. Output will drop this season to 340,000 bales, the third decline in four years and the lowest since USDA data began in 1960. The US, the other major supplier of premium cotton, has surpassed Egypt with pima, a variety grown mainly in California. The country will grow about 566,400 bales this season, about 40 per cent more than in 2009, the government estimates. The Egyptian government said in January it won’t provide cash subsidies next season because there’s not enough international demand and the crop is declining in quality. The problem with the old system was that farmers added other kinds of cottonseed to boost production, leading to an inferior harvest. “There is very limited demand, both in domestic and global markets for Egyptian cotton, particularly the long staple variety, and it is very expensive,” agriculture minister Adel El-Beltagy had said after the decided to stop cash subsidies. The minister said Egyptian textile mills have stopped using local cotton and are instead importing short staple variety, which are available at lower prices.

Switzerland based textile machinery manufacturer SSM AG has expressed complete satisfaction with its participation at the just concluded ShanghaiTex exhibition in China. According to a SSM press release, the Swiss inventor of the electronic yarn traverse system, showed two applications; the Dyeing/Rewinding machine and the Assembly Winder. It showed the versatility of the SSM TW2plus-W precision package winder which due to the electronic fastflex yarn laying technology, a high flexibility in producing made-to-measure cross wound package is possible. “The ergonomic design and enduring technology reduces maintenance and service expenses down to a minimum,” it said. SSM added, “Improved winding performance and package quality are further generated by digitens, the SSM technology for tension control during winding.” In case of the SSM TW2-D assembly winder, TW2 stands for innovative solutions, rugged technology and application of the essential. “The winder not only enables an improvement of the thread path, but also is a simplified superior winder,” the Swiss machinery producer informed. Combined with the easy adaptation to a variety of yarns, the TW2-D is the assembly winding system for an economically and consistently fulfilling of customer requirements. Besides these technologies, SSM also provides solutions in air texturing, false twist texturing, air covering, draw winding, yarn singeing, sewing thread winding and conventional covering.

Initial colours and materials for the coming season in addition to latest innovations and developments, will be on show at the pre-view trade fair View Premium Selection which begins July 15 in Munich. According to a press release from Munich Fabric Start, organisers of View Premium Selection, over 300 pre-collections made by internationally established weaving mills and manufacturers will be exhibited at the fair. With 22 new collections displayed in the View Fabrics and View Additionals segments, the carefully compiled portfolio will be extended to include those from high-quality suppliers. These include, Lanificio Fratelli Cerruti, Marzotto, Ercea, Lanificio Fratelli Bacci, Et Essenza Tessile, Sampietro, Lanificio Fratelli Balli, Metallbottoni and Nastrificio Victor. Additionally, the View Denim & Sportswear segments as well as View Design Studios will showcase recent denim and cotton developments as well as print and pattern novelties. “The rising demand for early presentation dates voiced from producers and ready-to-wear makers underscores the importance View Premium Selection has as a platform for the European market,” it added. “This is also confirmed by the selective expansion of ranges to include additional international suppliers from countries such as Italy, England, Portugal and Japan, to name but a few,” Munich Fabric Start noted. With a comprehensive line-up for women’s and men’s wear, the show gives the sector all the components it requires for developing their collections at this point in time. “Over two intense trade fair days the initial trends, colours and innovations for fabrics and findings can be spotted and directly incorporated into the production process,” the organiser observed. The current development highlights in A/W 16-17 will be staged at the View Trend Forum, an inspirational area in the foyer of the MVG Museum.

India and the European Union will resume talks in August after a two-year gap on the proposed free trade agreement for boosting two-way commerce and investment, the media has reported. “Sometime in August, the EU chief negotiator will be available for negotiations. They have also conveyed that in August they are available for talks,” commerce secretary Rajeev Kher told media persons in New Delhi. Talks for an FTA with the 28-nation bloc EU have been going on since 2007. The last round of talks was held in 2013 in New Delhi where the two sides failed to bridge substantial gaps on crucial issues. India’s textile industry would be hoping for a breakthrough in the talks to improve the state of garment exports. “Textiles and leather sectors are facing a beating in EU markets. So, by reducing tariffs, you can get greater market access. The benefits under the Generalised System of Preferences (GSP) has also gone,” he said. India’s textiles exports to that market are around US $2.5-3 billion annually. Kher, however, said: “We need to bring in craftsmanship and strategy in our negotiations rather than generic talks”. The India-EU trade talks, formally known as the Broad- based Trade and Investment Agreement (BTIA), remain stuck as the EU is not satisfied with India’s offers in areas such as government purchases and market access for automobiles and wines and spirits. The talks launched in June 2007, have missed several deadlines. The EU had also asked to include labour and environment related aspects besides liberalisation in multi-brand retail and legal services. India is reluctant to make commitments on these issues. On the other hand, India is insisting for data secure nation status and immigration quota from the EU. The status is crucial as it will have a bearing on Indian IT companies wanting market access in the EU. Kher said this is the right time to move on the proposed agreement as exports and imports with the EU are shrinking.

Although sales of textiles machinery have fallen in 2013 and in 2014, those gathered at the annual general meeting of the Association of Italian Textile Machinery Manufacturers (ACIMIT) showed optimism. This optimism, according to an ACIMIT press release, comes from the biggest textile machinery show returning to Italy after 20 years and which will be held in November 2015. “ITMA 2015, the industry’s most important trade fair provides an opportunity to showcase Italian technology and stimulate new investments from the textile sector in Italy and Europe,” it said. Italian textile machinery production dropped marginally by 1 per cent in 2014 over 2013 to amount to just over €2.3 billion. After falling the two previous years, exports in 2014 touched the same value as in 2013 at around €1.95 billion, with exports destined to Asia and Europe making up for 81 per cent of overseas shipments. However, whereas its exports to European markets grew in 2014 compared to the previous year, they actually fell in Asia. Exports to China which is one of the main export markets of Italian machinery fell by 25 per cent in 2014 as against the previous year, a result of less than expected robust economic growth. On the other hand, exports to India, Bangladesh and Vietnam were on the rise, and Italian textile machinery manufacturers also did well in Turkey, the US and Iran. During the current year, the industry stands to benefit from macro economic factors that are making forecasts lean towards a cautious optimism. However, ACIMIT expects to receive a boost to exports of textile machinery to China, which is one of its biggest export market and also to Europe. ACIMIT expects ITMA 2015 to be a driving force capable of energising Italian and European investments in the textile industry. “Our manufacturers are very confident about the event next November,” ACIMIT’s president Raffaella Carabelli said. “A total of nearly 430 exhibitors at ITMA are from Italy, covering around 31,000 square meters, up 50 per cent over the Barcelona edition and 30 per cent of total exhibition space at ITMA,” Carabelli noted. “There’s no doubt that within Italy, the textile machinery industry is one of its most important sectors, due to its strong showing in global markets,” Roberto Luongo, general director of Italian Trade Agency said. “Our textile technologies are considered of a very high qualitative level, which is an element of great pride and satisfaction for us, which urges us to support Italian businesses,” Luongo observed. “The ITMA trade fair in Milan represents a unique opportunity for Italy’s textile machinery industry, which is why, a project ‘Special ITMA Milano’ has been set up to help numerous manufacturers maximise individual efforts,” he too added.

Governor Ben Ayade of Cross River state in Nigeria has said the Calabar garment factory will generate over 1000 jobs when completed in August, according to the Nigerian media. Ayade said this on June 28 in Calabar while addressing representatives of the host communities at the project site. “Upon completion, the Calabar garment factory is expected to generate about 1000 jobs, the bulk of which would be women, particularly widows,” he said. He said that the inauguration of the factory was one of the projects being designed by him to celebrate his first 100 days in office. The governor said that equipment for the factory had been procured and promised that the project would be a major employer of labour. “Apart from women, the factory will also provide employment for the teeming unemployed youths roaming the streets,” Ayade stated. He said that his administration decided to build the factory due to the experience they had during the recent political campaigns. “During the just concluded political campaigns, we discovered that the T-shirts and caps worn by party members all across the country were imported from China. “That is why we decided to build this factory to ensure that these items can be manufactured here in Nigeria. “The factory will provide fabrics for the production of school uniforms, army uniforms, police and other para-military uniforms. “Cross River, being a border state and with the support of the federal government, will supply these items to the neighbouring states and countries,” he said. The governor said that the factory was also expected to enhance the revenue profile of the state. Ayade, however, said that the factory would be operated under a Public Private Partnership structure that would allow the state to have small per cent in the ownership of the factory.

The All Pakistan Textile Mills Association (Aptma) has decided to ‘voluntarily’ close down the textile industry because of the losses it had been suffering, its chairman S M Tanveer said on June 28, according to the Pakistani media. “An emergency meeting of Aptma’s general body has deliberated on the adverse circumstances and found it unfeasible to incur losses by operating mills partially,” Tanveer said in a statement. Tanveer said the member mills have decided on their own to put their operations off voluntarily because of the viability issue. “We do not want confrontation with the government therefore we are closing down mills voluntarily,” he said. According to the Aptma chairman, the cost of doing business in the textile sector has gone through the roof and the burden of incidental taxes, provincial cess, system inefficiencies and the punitive withholding tax regime have added fuel to the fire. Tanveer said the owners of mills in Khyber Pakhtunkhwa, Lahore, Faisalabad, Multan and Karachi had decided to close down operations and lay off millions of workers because they had nothing to offer their international buyers against the regional competitors. The Aptma has been railing against the government’s taxation policies, a chronic energy shortage and red tape that act as hurdles to the ease of doing business in Pakistan.