The European Commission approved 800 million euros ($1.1
billion) of public funding for the Spanish textile and
clothing sector. The funds would promote research, exports,
training and maintain aged workers in their jobs. After an
in-depth investigation, the Commission is satisfied that the
Spanish textile programme does not unduly distort competition
in the single market.
The Indian Industries Association (IIA), the micro, small
and medium enterprises body, has urged the Uttar Pradesh
government to set up a textile park in Farrukhabad district of
the state. Farrukhabad is famous for textile printing and over
the last 200 years has been a source of livelihood for local
craftsmen.
EU cotton denim imports significantly fell in the current
year, reflecting a new decline in denim clothing production in
Europe. Spanish imports of low-cost fabrics from Morocco,
however rose while Tunisian shipments of higher-priced
products fell heavily. Turkish suppliers continued to dominate
a rapidly collapsing European market.
China's textile and clothing sales were not affected by US
and EU quotas, the WTO confirmed while releasing its
preliminary data on global trade. Major trends in textile
trade stayed unchanged to the benefit of poorest Asian
countries such as Bangladesh, Cambodia and Vietnam.
Recently China Textile Industry Association released its
annual report of “Social Responsibility of China's textile and
garment industry from 2008 to 2009". The report says that the
textile enterprises in China have been hardly hit by this
round of financial crisis; widespread losses of the
enterprises have caused more than 7.50 million textile workers
in the state of job insecurity.
The African Growth and Opportunity Act’ (AGOA), the free
trade pact with the US provides preferential access to
Sub-Saharan countries in to US markets till 2015 and also has
special provisions for exports of textiles and apparels. This
act was enacted to help these African countries open their
economies and build free markets in the region.
US imports of cotton bed sheets strongly declined in the
first quarter this year, partly due to a sharp fall in prices.
Pakistan took advantage of the price pressure on the market
for printed bed sheets while India gained market shares on the
non-printed segment, although its exports fell to the United
States. On the other hand China is seriously losing ground
this year.
The Indian Pollution Control Board (PCB) has recommended
the closure of 10 textile dyeing units for violating pollution
control rules. PCB sources said 70 textile dyeing and
printing units were closed for violation of pollution control
rules in Erode district two years back. Last year 11
industries were closed. Power connections were disconnected
in some textile dyeing and printing factories for violation of
Pollution Control Act, which were discharging their untreated
effluent into water sources.
According to latest Chinese survey in 17 provinces, the
49.2 %companies showed their intention to quit textile
business and restart some other business. 27.3% companies said
that the pressure of appreciation of Yuan is becoming
unbearable. 44.4% have started selling export-oriented
products. Investment in textile industries / business has been
cut by 15.5% while profit margins are squeezing drastically.
Two thirds of the surveyed companies admitted that their
profit margins have reduced to 0.62%. It is worth mentioning
that Chinese exports to US are completely free from all
restrictions so its exports particularly of textile goods have
increased since then while exports of other countries have
shown negative growth.
India's textile exports declined by about 2% in 2008-09 to
US$ 21.75 billion due to slump in demand from global economies
like the US and Europe which are reeling under the impact of
financial meltdown.
The Japan Spinners’ Association reported that the nation’s
imports of cotton yarn fell by 40% in May 2009, year-on-year
to a historically low level of 16,812 bales. In addition to a
decrease in domestic demand for cotton yarn caused by the
recession, demand entered an off-season period. Imports from
China dropped to 58%, along with those from Pakistan by 32%
and India by 54%. Since Japanese cotton yarn production has
also been moving at a low level, the fall in imports can be
said to remarkably indicate a serious drop in domestic cotton
yarn demand.
According to the China National Bureau of Statistics, the
profits of industrial enterprises (with an annual turnover of
over 5 million yuan) decreased by 22.9% during January-May
2009 year-on-year to 850.2 billion yuan. Of this, the man-made
fiber industry posted a 34.7% decline.
Yarn prices may now decline in China, as a result of an
expected fall in cotton and polyester fiber prices. Viscose
yarn prices recently surged by contrast, after staple fiber
prices sharply raised. Demand for yarns may however be now
depressed by the seasonal decrease in domestic textile
production while inventories have been replenished.
Nisshinbo Textile Inc, Japan and the Indian textiles
major, Vardhman Group will set up a joint venture company to
manufacture shirts in Ludhiana in Punjab, India, which will be
exported as well as sold in the domestic markets, with
Nisshinbo looking after export markets and Vardhman, local
markets. Nisshinbo is a world-class textile manufacturer, with
comprehensive operations including spinning, weaving,
knitting, finishing and sewing.
