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September 15, 2011
Issue #297 The
McPete Sez Lingerie Newsletter & Women's
Organic Cotton Market
Neither the recession nor unstable economies have put a damper on the
fast-growing organic textiles industry, according to a new report, which shows the sector grew by 20% to an estimated $5.61bn in 2010.
The research released September 6, by Textile Exchange (formerly Organic Exchange) also names H&M, C&A, Nike, Inditex (Zara), Adidas,
Greensource, Anvil Knitwear, Target, Disney Consumer Products, and Otto Group as the
top ten organic cotton-using brands and retailers.
"Consumers continue to be committed to supporting the use of organic cotton and other sustainable
fibers, while brands and retailers continue to make their product lines more sustainable by continuing to increase
their use of such fibers and safer, more innovative manufacturing processes," said LaRhea Pepper, Textile Exchange managing director.
Several brands and retailers more than doubled their usage of organic cotton alone and plan to do so in 2012 as well, says the '2010 Global
Market Report on Sustainable Textiles.' Others with large programs are staying the course.
As a result, Textile Exchange projects the global organic cotton market will increase another 20% in 2011 to result in an estimated $6.2bn
market in 2011 and $7.4bn market in 2012.
Last year was the first time that data was requested on industry use of sustainable
fibers including recycled and cellulosic fiber.
Recycled polyester and Tencel were the two leading fibers in terms of quantity reported by responding companies, with all respondents
indicating substantial increases in use of those and other sustainable fibers
in the upcoming years.
Key areas identified for collaborative work in the future include developing a
harmonized definition of a sustainable or preferred textiles, and equipping more players in the textile, apparel, and home furnishings
industry to integrate sustainability into their business and product strategies through training, tools, and information.
India Ends Cotton Export
The Indian government has decided not to impose any restrictions on cotton
exports in the new season, which begins on October 1.
An official notice confirms that exporters need to register with the
Directorate General Of Foreign Trade to send shipments, but will be free to export any quantity they want.
India, which is the world's second-biggest producer and exporter of cotton, introduced a ban on raw cotton exports back in April last year, in
an attempt to halt soaring price hikes and exports. Shipments resumed on November 1, but with a cap of 5.5m bales, although this was raised to 6.5m
bales in May.
The government action came after cotton prices endured a period of huge volatility, peaking at INR62,500 (US$1,400) per candy in March.
However, the country's Cotton Advisory Board now estimates cotton production in 2011-12 (which runs from October to September) will
be 35.5m bales, while consumption by the domestic industry will account for 26.4m
bales. Exports are likely to be in the region of 7m bales.
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Strike Threats in Egypt
A strike planned by 22,000 workers at Egypt's largest state-owned textile factory has been called off after the government agreed to their demands -
but has prompted other Egyptian textile and clothing workers to threaten similar walk-outs.
The protest by workers at the Egypt Weaving and Textile Company in Mahalla
city was cancelled over the weekend following successful negotiations to increase monthly meal allowances from EGP120
(US$20) to EGP210 (US$35).
Monthly incentives are also to be raised to 200% for workers, 125% for assistants, 100% for shift supervisors and 25% for general managers,
according to newspaper reports in Cairo.
However, EWTC workers' successful demands have led to threats from workers
at the Kafr Al-Dawar, Seta, Al-Sayouf and Industrial Silk to go on strike if they do not get the same raises.
Meanwhile, profit distribution discussions at EWTC have been postponed until a general assembly of the state-run Holding Company for Cotton,
Spinning and Textiles can be held to debate the issue.
Last month the Cairo-based El Nasr Clothing & Textile Co (Kabo) said an
ongoing strike by workers had lost the company EGP4m (US$672,000) in production and disrupted exports worth EGP3m.
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Apparel Firms Sign Uzbek
More than 60 of the world's best known apparel companies and brands, including Adidas, Burberry, C&A, Levi Strauss, Li & Fung, Liz Claiborne,
PVH Corp and Wal-Mart Stores, have vowed not to source Uzbek cotton harvested using forced child
The companies, who also include Carrefour, New Balance, PPR Group, Target Corporation, The TJX Companies, The Jones Group and VF Corporation, will
maintain this promise until the end of the practice is independently verified by the International
Labor Organization (ILO).
The American Apparel and Footwear Association, representing more than 800 brands, has also signed the pledge, which is being
coordinated by the Responsible Sourcing Network.
The signatories want to persuade the Uzbek government to end the use of forced child
labor in cotton harvesting.
Their action builds on efforts started in 2004 by a number of European and
US advocacy organizations and Uzbek human rights groups.
Brazil Issues New
Regulations To Prevent
Illegal Textile Imports
Several new regulations have been issued by the Brazilian government with
the aim of reducing illegal and irregular imports of textiles and apparel as part of an overhaul of its customs system.
While the changes should give authorities a greater overview of domestic businesses, they may also present firms shipping products into Brazil with
delays, slower processing times and additional customs controls if they have not meet the new requirements.
According to an update from Sandler & Travis Trade Advisory Services Inc,
a new Brazilian customs regulation includes special inspection procedures which may delay the release of imported goods up to 180 days.
The new procedures apply to textiles and apparel classifiable in chapters 61 and 62 of the Harmonized System - and the resulting delays could also
result in additional storage or other costs.
Brazilian customs authorities have also enacted other regulations that will allow stricter monitoring and control of textile and apparel import
These include Normative Instruction 1.169, related to the control of goods
that are suspected of being irregularly imported and are subject to seizure; and Normative Instruction 1.181, concerning procedures for the
customs compliance of foreign operators, which are defined in the regulations as the producer, manufacturer or exporter of goods to
Customs authorities must also register any import irregularities in the importing company's file within the government's RADAR (Brazilian
Foreign Trade Authorization for Import and Export) system. This database comprises
all Brazilian customs and trade data on goods and can be used to identify future divergences in customs data provided to authorities.
Additionally, in a move that will raise another obstacle to textile and
apparel imports, from December 1, the Brazilian government will raise the Cofins (Contribution for the Financing of Social Security) for
imports of textiles, shoes and furniture from 7.6% to 9.1%.
India Lifts Import Barriers
India will allow the duty-free import of previously barred goods from
Bangladesh, including a number of textile and garment items.
Prime Minister Dr Manmohan Singh announced the news while on a visit to Bangladesh, during which he said the Indian government was “fully alive”
to the issue of trade imbalance between the two countries.
He added that India had undertaken a number of measures to facilitate Bangladesh’s exports to India, giving it greater access to the market
and to other neighboring countries.
The easing of the barriers comes after Bangladesh lobbied for the removal of 61 items from the list of protected goods kept by India under the South
Asian Free Trade Agreement, 46 of them textile and garment-related.
Bangladesh has also complained about difficulties with exporting to India because of testing, delays and bureaucracy at border crossings.
However, India’s textile industry is concerned about the impact of the easing of the restrictions, especially because Bangladesh
typically enjoys lower production costs.
Chinese Government to
Build Cotton Stockpiles
The Chinese government is to begin building up the country's cotton
reserves again in a move designed to stabilize domestic cotton production and help avoid fluctuations in cotton prices.
The cotton purchasing and reserve program will run for seven months from September 1, 2011, until the end of March 2012. During this time the
government will step in to buy standard cotton at CNY19,800 ($3,099) per
ton if local market prices fell below this level for five consecutive days.
Purchases will be conducted by the National Cotton Reserves Corporation under plans drawn up by the National Development and Reform Commission,
according to the state-run Xinhua news agency, and will apply to 13 cotton
producing areas in China.
China is the world's top cotton producer, consumer and importer.
A lady was picking through the frozen turkeys at the grocery store, but couldn't find one big enough for her family. She asked a stock boy, "Do these turkeys get any bigger?"
The stock boy replied, "No ma'am, they're dead."
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