Cotton prices are expected to continue to rise despite experiencing huge volatility on US exchanges at the end of last week, according to Rabobank. Following record gains and a high not seen since the US Civil War, prices plummeted by the maximum amount permitted under exchange rules.

But Rabobank believes that continuing demand from China, the world’s biggest importer of cotton, coupled with low stock levels at leading exporter the United States will lead to continuing price rises in the near future.

However, the upward curve may be interrupted by further dips, thanks to continued concerns over global economic growth and the instability of foreign exchange markets. Calling the upward trend in pricing more sustainable than other recent increases, Rabobank said price increases were necessary to encourage farmers in the United States and Brazil to plant more cotton and ease the current shortages.

And demand is likely to be boosted further by shortages in flood-hit Pakistan as well as in China where this year’s crop levels have been lower than expected. Rising prices are sure to mean increased prices for clothing in major markets like the United States and Britain, particularly in the low-margin, budget clothing sector which is more exposed to such price volatility.

Source:http://www.aepcindia.com/international.asp?id=395&yr=2010

India - The National Launch of the Integrated Skill Development Scheme for the Textile & Apparel Sector, Ministry of Textiles, GOI with a total outlay of Rs 2300 Crores and an ambitious target of training about 2.56 lakh workforce in the next 2 years was flagged off along with the launch of the 1st state of the art ATDC SMART (Skill for Manufacturing Apparels through Research and Training) Centre to impart the skills envisaged in the scheme by Dr. Kalaignar M. Karunanidhi, Hon’ble Chief Minister of Tamilnadu on October 8th, 2010 at Egmore, Chennai.

The National Launch was presided over by Thiru. Dayanidhi Maran, Union Minister of Textiles. The occasion was graced by the presence of many other dignitaries like: Thiru. M. Subramanian, Mayor, Corporation of Chennai, Thiru. G.K Vasan, Union Minister of Shipping, Thiru. K.K.S.S.R Ramachandran, Minister for Backward Classes and Handlooms & Textiles, Govt. of Tamil Nadu, Thiru.

Parithi Ilamvazhuthi, Minister for Information, Govt. of Tamilnadu, Tmt. Rita Menon, I.A.S., secretary, Ministry of Textiles, Govt. of India, Shri V. Srinivas, I.A.S., Jt. Secretary, Ministry of Textiles, Govt. of India, Shri Manish K Gupta, I.A.S., Director, Ministry of textiles, Govt. of India, Shri Premal Udani, Chairman, AEPC & ATDC, Shri Hari Kapoor, Convenor, BOG, ATDC & Core Committee, SMART, Shri Vimal Kirti Singh, I.A.S., SG, AEPC and Dr. Darlie Koshy, Director General & CEO, ATDC & IAM.

The role of ATDC under the Integrated Skill Development Scheme: Apparel Training & Design Centre (ATDC) has been selected as a Nodal Agency under Component I of MOT, GOI Scheme to take forward the ideated mission. It is in recognition of ATDC’s new initiative over the past 2 years and Pan-India network of over 50 centres having trained over 55,000 workforce for the industry that the Govt. of India have nominated ATDC as a nodal agency for the implementation of the Integrated Skill Development Scheme of the Govt. of India.

The Govt. of India have “in principle” approved the ATDC’s proposal to set up about 100 SMART centres to train over 40,000 youth and women in the next 2 years and 1.7 lakhs over the next 5 years. The entire ATDC network is gearing up to meet this challenge and across India all ATDCs will focus on setting up SMART Centres within the Hubs and Centres while establishing new Spokes in existing and emerging apparel clusters and manufacturing centers.

Source:http://www.aepcindia.com/news.asp?id=392&yr=2010

Luxury goods maker LVMH SA said Thursday its sales rose nearly 24 percent in the third quarter thanks to strong demand for brands such as Moet & Chandon Champagne and TAG Heuer watches.

The French conglomerate behind haute couture label Givenchy, ready-to-wear purveyor Kenzo as well as the venerable Louis Vuitton leather luggage brand reported third quarter sales of euro5.1 billion ($7.12 billion), up from euro4.1 billion a year earlier.

In a statement, LVMH said sales growth through the first nine months of the year “has confirmed its confidence for 2010.”

Sales for the year to end-September were euro14.2 billion, up 19 percent from a year earlier, or 14 percent on an organic basis, which excludes acquisitions, disposals and exchange rate fluctuations.

Fashion and Leather Goods, the company’s largest business segment, reported nine-month sales of euro5.5 billion, up 14 percent on an organic basis thanks to Louis Vuitton as well as the Fendi and Donna Karan fashion labels.

At the watches and jewelry division, which includes De Beers diamonds and Chaumet rings and necklaces, revenue rose 22 percent to euro687 million in the nine-month period, in line with the growth seen in the first six months of the year.

Source: http://english.ctei.gov.cn/News/Companies/259500.htm

Discount-type display can be a good way to attract customers, but scattered products and confused patterns look out-of-order. The background is very characteristic of China’s cartoon image Nezha, which is full of visual appeal.

This is a flexible matching with the illustration pattern background. The models have two different shapes, reflecting the background. Display techniques and matching remind people a lifestyle, which is good for sales.

Dynamic and fashionable models reflect the outstanding performance of the new era lady. They are able to attract customers?? eyes, at the same time display the product’s comfort and casual characters.

Unique background and the combination of elegant dress are the best performance of female products. The exquisite accessories can enhance the joint sales. The three models display three different types women. But the impact of display is not as attractive as the clothes themselves.

Source: http://english.ctei.gov.cn/News/Companies/259053.htm

India - The exorbitant increase in price of raw cotton has forced prime readymade apparel manufacturers to raise prices of cotton garments by 10 to 20 per cent. This will pass on the added input expenditure to the buyers.

Most companies have raised prices of their branded apparels. Some companies have already started quoting 15 to 20 per cent price hike in their latest orders for certain apparel collections. The booking rates for new production orders have also been raised by clothing manufacturing companies.

Cotton rates have been varying between Rs 3,600 per maund (about 37.324 kg) to Rs 3,700 per maund. This is far more than the rate of Rs 2,400 per maund year on year. The soaring cotton prices have also affected the cotton yarn prices. The spinning mills have raised the price of 30 combed cotton yarns to Rs 190 per kg from Rs 180 per kg.

The cotton requirement of the textile mills has been the highest in north India with the sector requiring 5.5 million bales of cotton per year in both Punjab and Haryana.

Source:http://www.aepcindia.com/national.asp?id=394&yr=2010

India - India has approved the export of 3.9 mn bales (170 kg per bale) of cotton on Monday. The Textile Commissioner’s office has received applications for exporting 5.5 million bales which is the upper limit set by India Government. A senior executive from India who is responsible for cotton purchasing for a big textile conglomerate informed this correspondent that baring very few rejections from Commissioner’s office he expects that the traders from India will export maximum amount.

According to the senior executive, Sankar 6 variety reached the spot price of Rs. 41,500 per candy (356 kg) last Thursday/ Friday. On Monday (October 18) the spot price ranged Rs. 40,200- 40,500 per candy. Arrival of cotton is on the rise given that the monsoon is at its last leg. Although, it was raining in Mumbai on Monday, harvest is progressing in Northern states of Punjab and Haryana and the Western states of Gujarat and Maharashtra.

Within 2 weeks time, cotton will start arriving from the Southern state of Andhra Pradesh. Another leading cotton exporter who is also in the board of the Cotton Association of India, indicated that the nominal price of cotton to be shipped from the port in India on November 1st is $1.25 per pound. Currently, the production estimate for 2010- 11 season by the Cotton Association of India is 345 lakh bales (34.5 million bales of 170 kg each). However, the Cotton Advisory Board (CAB) of India has estimated the production to be 32.548 million bales (170 kg/bale).

The CAB in the latest meeting dated August 27th has estimated the mill consumption in 2010-11 to be 22.15 million bales and the total consumption which includes textile mills, small scale units and non-mill consumption to be 26.6 million bales. It is not clear whether the Cotton Association of India will release a new crop output soon. A clear picture will evolve after Diwali festivities after the first week of November 2010. A general consensus in India is that the crop is going to be big, this season.

Source: http://www.tea-india.org/portal/pages/newsview.aspx?ID=3510

Karachi - The country is likely to lose at least a billion dollars of foreign orders next summer because of the acute shortage of cotton yarn on the local market, manufacturers-cum-exporters of value-added textile sector said on Monday. Expressing fear, they said the raw commodity’s scarcity could curb the value-added textile sector from meeting the export deadline for the coming Christmas and New Year events in the West.

“Exporters always book orders at least three months ahead of the next season, and if the raw commodity price is higher or short on the local market then striking deals with global buyers becomes difficult,” Value-added Textile Forum Co-ordinator Javed Bilwani said.

He said the value-added textile sector was facing a grim situation, as cotton yarn was not available on the local market while the nearing Christmas and New Year occasions had become a challenge for the sector to ensure shipment of garments before the deadline.

He said the local apparel exporters fear losing international orders for the next summer season, besides completing the existing orders for the coming Christmas and New Year events. Similarly, local exporters are unable to finalise deals with foreign buyers for next summer season in Europe and the US, as they were facing difficulties after the cotton yarn shortage, he added.

Source: http://www.tea-india.org/portal/pages/newsview.aspx?ID=3513

Bangladesh - The commerce ministry yesterday awarded the commercially important person (CIP) status to 81 business-people for 2009 to recognise their outstanding performance in business, especially exports. Of them, 49 people were awarded in the export category and 32 in ex-officio category of different trade bodies, said Monoj Kumar Roy, chief of the selection committee at the awards ceremony at Sonargaon Hotel.

The CIP status in the export category is awarded for sector-wise performance. This year, state-owned Export Promotion Bureau (EPB) invited applications from 22 sectors. EPB sets a sector-wise export ceiling, but loan defaults, payment of income tax and other details are taken into account in selection, a senior EPB official said. Under the CIP guideline of 2006, 125 persons were supposed to be given the CIP status in exports and 40 persons in the ex-officio category.

But that was not done, as the government took into account loan defaults and non-payment of income tax by some applicants. “But I hope the export target of $18.5 billion for 2010-11 will be exceeded for market diversification and the efforts of the businessmen,” said Roy. Addressing the businesspeople, Commerce Minister Faruk Khan said the government will soon make a policy to allow businessmen to invest oversees.

He asked the businessmen to be more compliant with the requirements of international buyers, and allow formation of workers’ welfare committees in industrial units as trade union is not allowed now. The minister emphasised that the bank interest rate should be brought down to a single digit. AK Azad, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), urged the government to offer equal facilities to the local investors as given to foreign investors in gas and power. Azad called for strict monitoring of the stockmarket to avert a repeat of the 1996 share market debacle.

Source: http://www.bgmea.com.bd/home/pages/81_businesspeople_get_CIP_status

Following last month’s strike by some 200,000 Cambodian garment workers in support of demands for a living wage, the Global Union representing workers in the sector has welcomed calls by the government for striking workers to be reinstated and for charges against them to be dropped.

The strike was called off after the government called the parties to the table, but hundreds of workers were then suspended or dismissed or faced legal charges filed by their employers in violation of the right of freedom of association. Even after a memorandum of understanding was signed between the partners over 300 workers continued to be barred from returning to work.

Says Patrick Itschert, General Secretary of the International Textile, Garment and Leather Workers’ Federation: “We strongly believe in the added-value of sound industrial relations and social dialogue. The Memorandum of Understanding signed by the partners on September 28 is an important milestone in that direction and must now be fully implemented”.

Source: http://www.itglwf.org/lang/en/CambodianGarmentWorkers.html

An ethics expert at British retailer Marks and Spencer (M&S) says that the company is giving more responsibility to its garment suppliers. Dr Anna Harvey, ethical trading manager at M&S, told an environmental conference in Britain that ethical sourcing goes beyond audits.

“At M&S we have a full and thorough auditing process for our suppliers. But more important than that we approach suppliers to help them manage issues for themselves. Our approach is to empower suppliers,” she said while speaking at the annual RITE Group conference in Westminster, London.

“At present the monitoring process manages the status quo, and there are significant limitations with auditing,” added Dr Harvey. “Audits might help to improve conditions but often don’t address the root causes of these issues. There are many reoccuring issues that need a more in-depth innovative process and tools to overcome, an example of this would be the global issue of wages.”

Source:http://www.aepcindia.com/international.asp?id=391&yr=2010