Merchandise exports in September fell by 6.6% to $26 billion. Exports during this fiscal have fallen 2.5% to $159.6 billion. The most worrying part is that labour-intensive exports, which create employment in large numbers, have been falling. Mint examines this decline.
Which sectors haven’t done well in exports?
One year after the global trade wars ignited, thousands of representatives from the Canadian apparel and textile industry – from designers and brands, to retailers, e-commerce sellers, importers and buying offices – were out in full force at the fourth annual Apparel Textile Sourcing Canada (ATSC) show in Toronto last week in search of trade policy updates, future market directions, and new opportunities for international trade and sustainable global sourcing.
India ranked fifth in the global textile and clothing exports in 2018 though it was in the second position between 2014 and 2017, according to the Confederation of Indian Textile Industry.
Sanjay K. Jain, chairman of the Confederation, has said in a press release that the space vacated by China was largely occupied by the least developed countries, including Vietnam and Bangladesh. India has not been able to tap the opportunities because of its competitive disadvantages and trade barriers in the international markets.
With production on a nosedive, all is definitely not well in the country’s largest man-made fabric (MMF) hub. Polyester fabric has decreased production by almost half from 13,000 metric tonne (MT)to 7,500MT per annum.
Sportswear brand Puma has warned that an increase in the price of its products is inevitable should proposed tariffs on more China-made products imported into the US come into effect.
Chief executive Bjorn Gulden has said the brand is already taking action in response to the situation. This has included moving some of its production from China to other countries like Vietnam, Bangladesh and Cambodia.
MMI Textiles, Inc., a diversified supplier of fabrics, trims, hardware and other notions has acquired the assets of Competition Textiles. Mike Wire, the former owner of Competition Textiles, has been in the textile industry for 40 years, and started Competition Textiles in 1996 after 17 years with Top Value Fabrics. Competition Textiles is a synergistic acquisition for MMI as they are also a woven fabric converter, as well as an importer of fabrics, that will enhance the existing stock line for MMI Textiles to offer their large, domestic and international customer base.
Even as trade war jitters and changes in sourcing have shaken the footwear industry in the United States and abroad, a new report claims the sector should still expect solid growth in demand over the next four years.
In its most recent batch of “Focus Reports,” The Freedonia Group, a division of MarketResearch.com, said the current footwear market will grow 4 percent in value, from $26.8 billion in 2018 to $32.6 billion in 2023. However, the growth will not be equally spread across categories.
Cotton prices were stable on the market on Saturday amidst modest trading. The Karachi Cotton Association kept its spot rate unchanged at Rs8,200.
Cotton experts said a steady trend prevailed in the market as the cotton arrival which is improving with each passing day.
They said the quality of cotton from Sindh is attractive for mill owners. Phutti (seed cotton) from Sindh is priced higher by Rs100 and ranged Rs3,600-4,225 while Punjab variety is pegged at Rs3,550-4,150.
China's Zhengzhou Commodity Exchange said it will promote the introduction of qualified overseas traders in the trading of cotton futures.
The exchange listed the goal in a recently-issued white paper on cotton futures.
As the world's largest producer, consumer and exporter of textile, China listed cotton futures on the exchange in June 2004 to help cotton-related enterprises hedge the price risk. Since 2004, a daily average of 144,000 lots (5 tonnes per lot) have been traded.
The China Cotton Association will submit an application on behalf of its members for a waiver on import duties on uncombed cotton from the United States, according to a statement on its website on Thursday.
The Ministry of Finance posted a list of goods, including cotton that has not been carded or combed, at the end of May that could be eligible for waivers on tariffs that China imposed in July on U.S. goods as part of the China-U.S. trade war.
Waiver applications need to be submitted by July 5.
