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Following a declaration by the US International Trade Commission (USITC) saying, increased imports of fine denier Polyester staple fiber pose a substantial threat to the domestic industry, President Joe Biden has imposed a Section 201 safeguard measure to restrict these imports. This will help protect US producers of similar products from potential injury caused by surging foreign imports.
The measure will introduce a strict import quota on fine denier PSF from Nov 23, 2024. It will set the quota for the first year at zero to ban imports under certin conditions. The quota will gradually increase by £1 million annually in each of the subsequent three years. This regulation specifically targets fine denier PSF imported temporarily under bond, falling under tariff codes HTSUS 5503.20.00, 5503.20.0025, and 9813.00.0520.
Fine denier PSF is a versatile material used in producing yarn, clothing, sanitary items, non-woven fabrics (like wipes, suit interlinings, and mattresses), carpets, upholstery, and other goods. The restriction applies to fine denier PSF that is not carded or combed, with a diameter of less than 3.3 decitex (three denier), whether coated or uncoated.
Certain countries, including Canada, Mexico, Australia, Colombia, Israel, Jordan, Panama, Peru, Singapore, and the CAFTA-DR countries, along with those benefiting from the Generalised System of Preferences and the Caribbean Basin Economic Recovery Act, are exempt from this quota if they meet specific conditions.
President Biden chose not to implement a broader tariff-rate quota, aiming to balance the needs of domestic PSF producers with the interests of US manufacturers who depend on fine denier PSF for textiles, defense-related products, and consumer goods. This decision reflects a careful approach to safeguarding American industries without overly burdening downstream producers who rely on this essential material.
Denim brand Lee has launched an eight-piece collaborative menswear collection with Alpha Industries.
Offering a bomber jacker, denim jacket and quilted jacket along with a flight suit, pants, anoraks and a T-shirt, the collection is being retailed across Lee and Alpha-owned stores and websites across the US and a few select Asia markets,
Owner of the Lee and Wrangler brands, Kontoor Brands has been focusing on collaborations lately. The brand’s timeless styles offer a wide field for collaboration, says Joe Broyles, Global Vice President –Collaborations, Lee.
The company seeks partners having an authentic connection and appreciation for its heritage, and seek to re-interepret Lee’s iconic denim and workwear for their consumers, adds, Broyles.
Terming the collaboration as a reimaging of military inspired designs with a contemporary edge, the companies say, it combines the heritage of both brands.
In 1959, Alpha Industries entered into an agreement with the US Department of Defense to design and manufacture outerwear for military personnel. Since then, the company has been creating military-inspired clothing and design through both its own seasonal collections and through collaborations. It recently collaborated with Highsnobiety, Dr. Martens and J.Crew Group-owned Madewell.
Meanwhile, Lee collaborated with designer Paul Smith and footwear band Heydude this year. In its most recent quarter, the brand registered a 3 per cent decline in its revenue though revenues from the US increased by 1 per cent. However, the brand’s international revenues declined by 7 per cent during the quarter.
On the other hand, the parent company Kontoor has launched a new initiative called ‘Project Jeanius,’ to generate $100 million in profit improvement and savings. In Q3. FY24, the company’s revenue grew by 2 per cent, making it the first quarter to register revenue growth in fiscal 2024.
Showing a notable increase, Pakistan’s textile exports grew by 10.44 per cent to $6.146 billion in the first four months of FY’24-25, spanning July-Oct as against $5.565 billion in the same period last year, as per figures by the Pakistan Bureau of Statistics (PBS). This increase highlights the resilience of the country's textile industry despite facing difficulties in certain raw material exports.
In Oct’24. Pakistan’s textile exports increased by 13.11 per cent to $1.625 billion as against $1.437 billion in Oct’ 23. On a M-o-M basis, textile exports rose by 1.30 per cent from $1.604 billion in Sep’ 24.
However, Pakistan’s cotton yarn exports contracted by 45.59 per cent during the first four months of FY25 to $221.76 million from $240.76 million in the same period last year. Although cotton yarn exports increased by 13.83 per cent M-o-M in Oct’24 to $59.18 million compared to $51.99 million in Sep’ 24, the Y-o-Y decline widened to 35.79 per cent compared to $92.16 million in Oct’ 23.
Key textile commodities exported by Pakistan in Oct’ 24 included knitwear with exports worth Rs 136.36 billion, RMG with exports of Rs. 100.55 billion and bedwear with Rs. 76.28 billion exports. The strong performance in these value-added products compensated for the challenges in raw material exports like cotton yarn, reinforcing Pakistan's competitive edge in the textiles sector.
The consistent growth trend in Pakistan's textile exports, particularly in garments and value-added products, reflects the sector’s adaptability and strategic shift towards high-value commodities, despite ongoing challenges in the raw material segment.
Following recent political changes in the country, India’s RMG exporters are urging the Central Government to negotiate a Free Trade Agreement (FTA) with the United States,
A Sakthivel, Head-Apparel Export Promotion Council (Southern Region) and Chairperson, Apparel Made-ups and Home Furnishing Sector Skill Council (AMHSCC), says, by leveraging the current favorable positive relationship between the US President-elect Donald Trump and the Indian government, exporters aim to secure a favorable trade deal.
Emphaisisng on the significance of the US market for India’s RMG exports, Sakthivel notes, despite their exports reaching $2,568 million between Apr-Sep’2024, Indian exporters do not have an FTA with the United States. A free-trade agreement would help facilitate these exports, he adds.
From Apri-Oct’24, India’s total RMG exports to the US increased by 7.28 per cent to $468.27 billion from the $436.48 billion during the same period last year. Particularly in Oct’24, India’s total RMG exports to the US rose by 35.06 per cent, from $0.91 billion in October 2023 to $1.23 billion. Cumulative RMG exports from Apr-Oct’24 expanded by 11.6 per cent to $8,732.6 million.
This consistent month-on-month growth highlights the strength of India’s RMG exports, opines Sakthivel. The sector can achieve a further 15 per cent-20 per cent growth by this fiscal-end with exports from Tiruppur' reaching Rs 40,000 crore this year, he adds.
Echoing this sentiment, KM Subramanian, President, Tiruppur Exporters’ Association, adds, with 30 per cent Tiruppur’s knitwear exporters destined for the US, an FTA will allow Indian RMG exporters to better compete with other countries and secure more orders.
A new wave of research is exposing a stark reality: our wardrobes are overflowing with unworn clothes, a testament to the rise of fast fashion and a ‘buy now, wear once’ mentality. This global phenomenon is not only draining our wallets but also contributing significantly to environmental damage.
Cluttered wardrobes and unworn clothes
As per the first national survey of clothing use and disposal habits in Australia conducted by the Royal Melbourne Institute of Technology (RMIT), Australians acquire an average of 27 kg of new clothes annually, discarding around 23 kg. The average Australian owns 118 garments but has 26 per cent of their wardrobe going unworn for at least a year. This pattern of fast fashion consumption is mirrored worldwide, with alarming statistics emerging from various studies. A study by WRAP in the UK found similar results, with the average person keeping 118 items in their wardrobe and a quarter remaining untouched for a year.
Here are some interesting facts. The average garment is worn merely seven times before being discarded reveals Ellen MacArthur Foundation findings. In the UK, wardrobes hold an estimated 1.6 billion items of unworn clothing, reveals a WRAP study. And 30 per cent of donated clothes end up in landfills or incinerated, highlights a study by Hot or Cool Institute. While data varies across countries, the underlying narrative remains consistent: overconsumption and underutilization.
Table: The state of unworn clothes globally
|
Country |
Average items in wardrobe |
% clothes unworn for a year |
Source |
|
Australia |
118 |
26% |
RMIT University |
|
UK |
118 |
26% |
WRAP |
|
USA |
- |
20% (estimated) |
ThredUp Resale Report |
|
China |
- |
10% (estimated) |
Greenpeace East Asia |
The environmental cost of closet clutter
The implications of this ‘wearability crisis’ extend far beyond overflowing closets. The fashion industry is a major polluter, accounting for around 10 per cent of global carbon emissions. Producing clothes that are barely worn intensifies the strain on resources and contributes to textile waste.
The RMIT study highlights the need for greater awareness and behavioral change. As Alemayehu, lead researcher emphasizes, "We need to shift our mindset from disposability to longevity. This involves buying less, choosing quality, and caring for our clothes."
Various initiatives are being taken up across the world as a step towards greater sustainability. For example, the growing movement ‘One Year, No New Clothes’ challenge has participants commit to not buying any new clothing for a year, forcing them to re-evaluate their consumption habits and rediscover the potential of their existing wardrobes.
And initiatives like clothing swaps and rental services promote collaborative consumption and extend the lifespan of garments, offering alternatives to constant purchasing. Meanwhile brands too are focusing on ethical production and durable designs, encouraging consumers to invest in quality over quantity.
Indeed, the wearability crisis is a wake-up call and it's time to rethink our relationship with fashion, embrace sustainable practices, and ensure our wardrobes reflect our values, not just fleeting trends.
India's textile and apparel (T&A) exports registered a remarkable growth of 19.93% in October 2024, reaching US$ 3.06 billion compared to the same period last year. This positive trend is reflected in the cumulative figures for the April-October period, where exports grew by 7.08% to US$ 20.72 billion.
Key Highlights
• Overall Exports: India's total merchandise exports for October 2024 amounted to US$ 39.2 billion, an increase of 17.23% year-on-year.
Sector-wise Performance:
• Cotton Yarn/Fabs./Made-ups, Handloom Products etc.: Exports grew by 6.96% in October 2024 and 1.66% for the April-October period.
• Man-made Yarn/Fabs./Made-ups etc.: Exports witnessed a robust growth of 12.89% in October and 4.36% for the April-October period.
• Jute Mfg. including Floor Covering: Exports surged by 36.98% in October and 1.49% for the April-October period.
• Carpet: Exports increased by 16.79% in October and 12.26% for the April-October period.
• Handicrafts excl. handmade carpet: Exports grew by 32.67% in October and 13.99% for the April-October period.
• Apparel: Exports witnessed a significant surge of 35.06% in October and 11.60% for the April-October period.
Industry Optimism
Rakesh Mehra, Chairman of CITI, expressed optimism about the sector's sustained growth. He attributed this positive trajectory to several factors, including increased market share in the USA, supportive government policies like RoDTEP and IES, and the industry's focus on quality, innovation, and sustainability.
Looking Ahead
The textile and apparel sectors are poised for further growth, driven by increasing global demand, favorable government initiatives, and the industry's commitment to quality and innovation. India's strategic focus on sustainable practices and its emergence as a preferred sourcing destination are expected to further strengthen its position in the global market.
In a significant boost to industrial growth in Tamil Nadu, MK Stalin, Chief Minister, laid the foundation stone for a new footwear manufacturing unit by the Taiwan-based brand, Dean Shoes at the SIPCOT industrial park in Jayankondam.
Led by Long Yin Investment (Dean Shoes), the project is being developed with an investment of Rs 1,000 crore and will create employment opportunities for 15,000 people in the industrially underdeveloped district.
TRB Rajaa, Industries Minister, highlights, this investment would further strengthen Tamil Nadu’s position as a global hub for non-leather footwear manufacturing. It is expected to drive distributed growth across the state, positively impacting districts like Perambalur, Ranipet, and Ariyalur. More importantly, it will reserve 90 per cent of the jobs for women, which is a key pillar of the Dravidian Model, notes Rajaa.
Tamil Nadu has already established itself as a prominent footwear manufacturing hub, with global brands such as Nike, Crocs, New Balance, Adidas, and Puma now manufacturing in the state. The sector in the state accounts for over 32 per cent of India’s total footwear production, according to a social media post by Rajaa.
Besides this, Stalin also launched 53 new projects valued at Rs 120 crore and inaugurated 507 completed projects worth Rs 88 crore. This development marks a major step towards enhancing Tamil Nadu's industrial infrastructure and expanding its role as a key player in the global footwear manufacturing industry.
In Q2, FY25 spanning July-Sep’24, Grasim Industries reported a 66 per cent decline in consolidated net profit to Rs 390 crore, compared to Rs 1,164 crore in the corresponding period last year.
The leading fabric and yarn producer's revenue from operations rose by 11 per cent to Rs 33,563 crore in Q2, FY25, compared to Rs 30,220.68 crore in the year-ago period. This revenue growth was ‘driven by the superior performance of its Financial Services, Cellulosic Staple Fibre and Specialty Chemicals businesses, according to the company.
Grasim's revenue from its cellulosic fiber business increased by 6.07 per cent to Rs 4,125.19 crore in Q2, FY25. This growth was triggered by an improvement in CSF (Cellulosic Staple Fibre) prices. The brand’s CSF business achieved its highest ever quarterly sales volume at 219,000 tons, increasing by 4 per cent Y-o-Y, led by stable domestic demand. Its EBITDA margins improved due to higher sales volume and improving trend in global prices, the company says.
Grasim’s revenues from its other business including textiles increased by 2.13 per cent to Rs 777.37 crore during the quarter. The company’s capital expenditure for H1 FY25 reached Rs 1,884 crore. The budgeted standalone capex for FY25 is Rs 4,691 crore, of which Rs 3,000 crore is towards new growth businesses.
A leader in digital textile printing, Kabir Impex will showcase its innovative textile solutions at the 9th Morocco Fashion Style & Tex in Casablanca from Dec 04-06, 2024.
This event will feature industry professionals from Europe, Asia, and Africa who will explore cutting-edge trends in textile innovation. Kabir Impex will exhibit at Stand B16-D, where it will highlight its expertise in Reactive Digital Printing, renowned for exceptional color vibrancy, design precision, and durability.
Founded in 2008, Kabir Impex is a family-owned business based in New Delhi, with two state-of-the-art manufacturing facilities in Sonepat. Specialising in fabrics like cotton, viscose, linen, silk, and various blends, the company has become a key player in the textile industry.
Committed to sustainability, the company utilises eco-friendly printing techniques and maintaining strict quality control throughout its production process. Their comprehensive services include custom reactive digital printing, fabric design and development, as well as both large-scale and small-batch printing solutions.
Manav Kabir Chawla, CEO, Kabir Impex states, Morocco’s strategic location and the opportunity to engage with professional buyers from over 37 countries enables the company to form new partnerships and grow its presence in international markets.
Expected to attract thousands of visitors, The Morocco Fashion Style & Tex event offers Kabir Impex a prime platform to connect with influential buyers and industry leaders from key markets. With Morocco serving as a gateway to Africa and benefiting from free trade agreements with the European Union and the United States, the event represents a significant opportunity for Kabir Impex to expand its reach globally.
USDA has forecasted a 2 per cent decline in US cotton exports to 11.5 million bales for the MY 2024-25, marking the lowest level in nine years. As of now, the US has shipped about 1.5 million bales, only 13 per cent of the USDA’s export target, the slowest pace since the 2017/18 season.
This decline is attributed to a combination of factors, including reduced production due to adverse weather conditions in key growing regions and increased competition from other cotton-producing countries like Brazil and Australia.
In early 2024, US cotton prices surged to contract highs, making American cotton less competitive, particularly in markets like China. Brazilian cotton, which is cheaper, has become a strong alternative for Chinese buyers, further diminishing US export prospects. As a result, China has turned to other countries for cotton, impacting US shipments.
US exporters are now focusing on markets like Pakistan and Vietnam, where exports have risen significantly by 77 per cent and 60 per cent, respectively, in MY 2024-25. However, despite these gains, they have not been sufficient to offset the loss in exports to China. Much of the decline in US cotton exports can be attributed to global supply shifts, rather than broader economic concerns or reduced Chinese demand alone.
China’s cotton imports have surged in 2024, reaching 2.28 million bales by Sep’24, more than double the volume imported in the same period in 2023. Brazilian cotton has played a major role in this increase, as the country’s higher production and lower prices allowed it to overtake the US as China’s top supplier in 2023-24. As a result, US cotton exports have been further limited, despite a recovery in domestic production.
Meanwhile, Australian cotton exports, which were previously hampered by diplomatic tensions with China, are recovering. Although China’s demand for Australian cotton remains lower than before, shipments to countries like Vietnam, Indonesia, and Bangladesh continue to support strong exports from Australia.
Overall, the global cotton market is seeing shifts in supply dynamics, with Brazil’s growing competitiveness and China’s diversified sourcing strategies reshaping trade patterns.
