What Does EU’s GSP+ Status for Pakistan Mean?

Editor-NCMFinally, the EU has granted Pakistan the Generalised Scheme of Preferences (GSP) Plus status from January 1, 2014 for four years till 2017. The EU is Pakistan’s largest trading partner. In 2012 total EU-Pakistan trade amounted to EURO 8.2 billion. GSP+ will reduce tariffs to zero on over 90 per cent of all product categories being exported by Pakistan to the EU. The newly acquired status would also enable Pakistan to compete with those of regional rivals like Bangladesh and Sri Lanka, which already have duty-free access to the EU market. All Pakistan Textile Mills Association (APTMA) has expressed the hope to double the textile exports to $26bn in four years. The association has projected the textile exports to rise by 3pc above the target of $14.2bn for the current fiscal to $14.6bn and by 5pc to $16.3bn during the next financial year. Continue reading →

Clothing Waste Recycling Trends

Editor-NCMIt should be possible to make the textile industry a waste-free sector because theoretically 97% of textile waste can be recycled. But in actual practice the process of textile recycling is quite complicated in terms of its availability, consistency of waste supply and the current uncertainty of ready market for recycled materials. Generally, apparel cuttings waste available with the manufacturers is new and clean and may be processed for recycling without any special treatments thereby which makes recycling quite feasible economically. The foremost step in the entire recycling process is the waste collection and it’s sorting according to color and fiber content. Continue reading →

Europe’s Firm Grip on Technical Textiles

Editor-NCMDespite the dramatic overall decline of the European textile industry in the last 30 years, Europe still stands on firm feet as a world leader in the technical textiles field which is growing at an amazing rate. There is a big competition in price, thanks to the globalisation. The main cost factors in textiles are labour cost, energy cost and capital cost. It is estimated that the labour cost differentiates between countries 1:40, energy cost 1:4 and capital cost also 1:4. But for Europeans the textile industry does not mean only textile production. It also means textile machinery, textile distribution and fibre. The high segment of the ring spinning machinery area is also dominated by two European machine producers – Rieter and Saurer – accounting for about 50 % of the high segment of the ring spin-, rotor- and air jet-machines. Continue reading →

Has China Had Its Day?

Editor-NCMOne of the most discussed topics these days – in the World of Conferences everywhere – is focused on China. All those connected with the Textile & Clothing (T&C)industry, the world over, want to hear from the top most US and European buyers and their agents the answer to the biggest and most difficult question as to whether China has had its day.

China’s exports of T&C in 2012 were of the order of 250 billion US$ contributing 12.4% to the total Chinese exports. During January to June of 2013, China has already recorded an export of 127.23 billion US$ in the T&C sector. According the China Chamber of Commerce for Import and Export of Textile and Apparel (CCCT), China’s textile industry suffered a setback in the EU market for the last two consecutive years, 2011 and 2012 because of the gradual growth of textile and clothing export in Southeast and South Asia. China’s T&C market share in EU market decreased from 42.5% in 2010 to 41% in 2011, further declined to 39.9% in 2012. In Japan also there was a decline from 77.1% in 2010 to 74.9% and 73.2% in 2011 and 2012, respectively. However, export from ASEAN to EU and Japan has registered a gradual increase of 8.3% and 13.7% respectively. Bangladesh has been able to increase its T&C exports to EU and Japan by 9.4% and 1.2%, respectively. Continue reading →

[email protected] Vs US$ : Is Currency Depreciation Good for Boosting Exports?

Editor-NCMThere has been a steep depreciation of more than 13% in the value of INR vis-a-vis USD in the past five months. In this scenario there exist two groups : one of gainers and the second one of losers. However, if we look at this from a national perspective, it will be extremely difficult to arrive at a consensus. The same is true for any industry sector as well because there are numerous categories of businesses that are linked with the INR’s value vis-a-vis USD to a widely varying degree. Apparently, exporters stand to gain whereas importers are the losers. This, however, is too simplistic a view because a number of important factors work behind the scene while running a business that have key influence on the overall performance of the business unit. The facts that the import content in the country’s textile industry is hardly 10 percent and the Chinese Yuan has appreciated by 3-4 percent, we can see yarn and garment exporters getting an advantage due to rupee depreciation. Continue reading →

Now, Jeans Are Available On Lease


Generally, it is the practice to lease durable goods and that also related to industrial or corporate use like vehicles, heavy machinery, office or factory spaces etc. However, in view of increasing cost of living and high prices of durable consumer goods, the practice of payment through installments (with or without interest) is quite established everywhere. We also occasionally hear people making statements – either out of frustration or for fun – that the days are not far off when we will have to buy our clothes also in installment. The possibility of this now seems to be real. In fact, The Netherlands based entrepreneur Burt van Son, who makes ‘Mud Jeans’ has started offering his product on lease basis. Continue reading →

The Changing World of Apparel Sourcing


Traditionally, the competition in the textiles/clothing sector has been among two categories of operators. The first group called ‘clothing operators’ (manufactures or retailers) who were specialists in forecasting and influencing the fashion trends. They enjoyed strong brand image and used to undertake marketing a product designed and developed long before the actual time of consumption. The second category of firms used to offer competition based on their ability to act fast by rapidly adjusting to the prevailing fashion trends created by others. They were able to supply products already known to be a market success as they specialized in ensuring ‘speed to market’. They were known for their rapidity and flexibility. Thus the key factors for success were different for these two categories of operators. Continue reading →

“Bangladesh RMG Sector Under Fire”


Bangladesh is in headlines these days in the global media for the reasons the country must be gravely concerned. The now famous “Savar Rana Plaza collapse” has killed more than 1100 garment workers. On April 24, the 9-storied building–Rana Plaza collapsed in Savar bus stand area of Dhaka which housed five garment factories, a branch of bank and a market. About 3000 workers are estimated to be present in the complex at the time of the collapse. The disaster has sparked angry reaction from international human rights and labour groups to poor working conditions there.

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“A Look at the Labour Cost”


Labour cost has been a major area of focus and an important factor for deciding the location of production facilities especially in the labour intensive textile and clothing sector. It’s a common knowledge that wages, costs, efficiency, productivity, and quality etc. are very much related with each other. We have – from time to time – witnessed scenarios where high wages not necessarily result into high productivity or, far that matter, even better work ethics or product quality. Per unit labour cost for first quality goods produced can be an acceptable norm but that also is not free from issues like working conditions, technology being used and management standards being practiced. Continue reading →

Union Budget Gets ‘A’ Grade


The Union budget for 2013-14, presented by Finance Minister, P. Chidambaram, on 28th February 2013, has received an ‘A’ grade from the textile leaders thanks to his eye catching announcement of bringing down the Duty on Branded Garments to zero percent under the optional route from 3.5% earlier. Trade associations have termed this as a major initiative which will restore competiveness of Indian RMG exports.

The FM has extended the much popular Technology Upgradation Fund Scheme (TUFS) in the 12th Plan as per the wishes of the industry. The power loom sector has been allocated Rs. 2400 crores for 2013-14 with a major focus on it’s modernization. Continue reading →