Textile Sphere News Roundup - 4th Nov 2024
1. Bangladesh Skips India,
Reroutes Textile Exports through Maldives
Bangladesh, the world’s
second-largest garment producer, has opted to bypass India to route its textile
exports through the Maldives for international distribution. This move impacts
India's airports and seaports, previously used for Bangladeshi cargo, amid
strained bilateral relations, according to Indian media reports.
Deepak Tiwari, Managing
Director of MSC Agency (India) Pvt Ltd, highlighted the revenue impact on
Indian ports due to the redirection. Bangladesh’s new route involves shipping
textiles by sea to the Maldives, then airlifting them to global clients,
including brands like H&M and Zara. According to industry experts, this
shift may offer Bangladesh more control over its supply chain and reduce
delays.
Indian officials are
reportedly considering ways to mitigate the impact on logistics and trade
collaboration, given India’s vested interests in Bangladeshi textile production
through Indian-owned facilities. The rerouting is seen as a strategic move by
Bangladesh to enhance supply chain reliability in the global textile market,
particularly for time-sensitive deliveries.
2. Textile Millers Seek
Cooperation in Fibre Recycling
The All Pakistan Textile
Mills Association (Aptma) has called for broader cooperation in fibre recycling
and renewable energy to boost Pakistan's textile exports and drive economic
growth. Aptma Central Chairman Kamran Arshad stressed the importance of
partnerships for sustainability and noted Pakistan’s plan to invest $7 billion
to establish 1,000 garment plants, generating $50 billion in exports.
Gherzi Managing Partner
Giuseppe Gherzi outlined emerging trends in the textile industry, emphasizing
the need for agility to stay competitive. He highlighted the rising importance
of recycling and sustainability, with biotech firms like Galy Co securing
significant investment to innovate cotton production. As the industry shifts
towards sustainable practices, companies are urged to adapt and innovate.
3. Ban Cotton Import, Buy
Crop at MSP, Patole Urges Modi
Maharashtra Congress President
Nana Patole has appealed to Prime Minister Modi to ban cotton imports and
instruct the Cotton Corporation of India (CCI) to buy cotton at minimum support
prices (MSP) to support local farmers. Currently, cotton prices hover around
₹6,500-6,600 per quintal, below the MSP of ₹7,122, causing many farmers to hold
onto their produce.
Patole warned that continued
cotton imports amid low prices could destabilize the market and severely impact
farmers already facing challenges from GST on agricultural equipment and
unseasonal rains. Maharashtra, a major cotton-producing state, has seen
increased imports, raising concerns over potential domestic price declines.
4. Sindh Overtakes Punjab in
Cotton Production
In a historic shift, Sindh
has surpassed Punjab in cotton output as Pakistan received a total of 4.291
million bales of cotton by October 31, 2024. Punjab, traditionally dominant in
cotton production, now lags behind Sindh due to various policy inefficiencies
and a significant production shortfall.
The Pakistan Cotton Ginners’
Association reports that Sindh's share in cotton arrivals has reached 57.06%,
while Punjab’s share has decreased to 42.94%. The ongoing season's production
is projected to fall short of the 10.874 million bales target, with total cotton
arrivals dropping 36.84% year-over-year.
As Punjab’s cotton output
declines, experts estimate a national production low of around 5.5 million
bales, signaling challenges for Pakistan’s textile industry amidst a difficult
cotton season.
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