The international narrative on the COVID-19 crisis is currently a source of worry to the Senior Cotton and Textiles Lead at Fairtrade Foundation, United Kingdom, Subindu Garkhel.
Garkhel is concerned that much of the narrative to date has overlooked many of the other very significant links within the fashion supply chain, despite their role being integral to the making of a dress or a pair of jeans, beautiful or ordinary.
‘’I’m referring to the cotton farmers, the ginners and spinners who are so often forgotten in the fashion debate and continue to be so in the face of the pandemic.
‘’I’m also talking about some of the most vulnerable people: migrant workers and seasonal workers and their communities.
‘’As brands announce the cancellation of $2.00 billion worth of current orders in Bangladesh alone, and there’s no clarity of future orders being placed, the effects will inevitably be felt by everyone.
‘’With no cash flowing down the supply chain in the face of this unexpected halt in manufacturing, it is the most vulnerable, lowest paid people, that feel the worst effects and there is a real threat of food insecurity and worse to come for many.
‘’With retailers globally shutting their doors and customers facing the uncertain future of being furloughed or laid off, fashion and buying new clothes are beginning to feel like the last thing on the long list of our new priorities’’, Garkhel said.
And whilst a few brands and retailers have begun to ingeniously shift their manufacturing efforts to produce masks, protective gear and other goods needed in the health care industry as part of their crisis response strategy, there has also been growing recognition of the toll that store closures and order cancellations are taking on the workers across the fashion value chain on a global level.
While most businesses are either cancelling in-production orders or reported suggesting payments would be delayed ‘indefinitely’, some loud and well-targeted public campaigning efforts have seen some businesses publicly confirming they’re willing to receive and pay for orders already placed.
Others have announced the creation of a fund to pay supply chain workers, but questions remain over some of the detail about which stage of the production of clothing orders this will cover. There are also unanswered questions about timelines.
At Fairtrade, cotton farmers are looking to the longer term and considering whether to divert land to producing food.
Continuing, Garkhel said, ‘’we are between two cotton crop seasons at the time of writing, and most farmers have already sold 80-90 per cent of their production from the last season before the lockdown.
‘’This means they are not seeing the immediate impacts of factory closures and cancelled orders yet, but are expecting it to arrive with full force in the autumn.
‘’In Africa, there are already signs that cotton prices are falling and there are forecasts of global cotton prices to drop by 22% this year.
‘’We’re bracing ourselves for delays in payments and lack of cash flow as the inevitable knock-on effect ripples down the supply chain. There is also the worry at the back of our minds posed by the threat of changing supply chains and nearshoring.
‘’I am in regular contact about our cotton farmers through colleagues on the ground, we are working hard to evaluate the short, medium and long term impacts and designing possible interventions and solutions to help our farmers.
‘’Fairtrade has already introduced flexibility in the process and use of the Fairtrade Premium so that producers can use it to manage financial risk during the pandemic. We will know more when the new crop season starts but until then,
‘’I’d like us to advocate for more government measures to ensure supply chain relationships, orders, payments and other obligations are met. Unless cash flows through the supply chain, workers will not get their wages and farmers will miss out on a fair price for their crops.
‘’My message to the fashion industry is this: please continue to support your direct suppliers and foster these partnerships. You can be instrumental in elevating this to be a virtuous chain of support and solidarity from a mere supply chain.
‘’All the people further down the tiers are relying on your support. The lesson that coronavirus is rapidly teaching us all is that we are all in it together, we are connected by the same narrative thread, one global community, no matter who we are.’’