The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 18TH MARCH 2021

NATIONAL

INTERNATIONAL

Textiles ministry should accelerate process to set up 7 MITRAs on time

A Parliamentary panel has suggested that once Cabinet nod is obtained, the textiles ministry should take urgent measures to accelerate the initial formalities so that the intended seven mega textile parks are established within a definite time frame.

The government has announced the MITRA (Mega Integrated Textile Region and Apparel Parks) scheme aiming to attract large investment of Rs 10,000 crore and generation of 1,50,000 jobs in the sector to boost the domestic manufacturing and create world class infrastructure.

"The committee desire that once the Cabinet nod is obtained, the ministry should take urgent measures to accelerate the initial formalities so that the intended 7 MITRAs are established within a definite time frame," it said.

Expressing concern that during 2020-21, only Rs 24 crore could be disbursed as MUDRA loan to 4,278 sanctioned loans, the panel said the matter should be taken up at the appropriate level so that appreciable disbursements are made under the scheme for the benefit of handloom weavers.

The report of the standing committee on labour, tabled in Parliament on Tuesday, also said the textiles ministry should make the census process of handloom weavers more robust and foolproof to ensure genuine identification of weavers and actual dissemination of resources to them.

"The committee are concerned to note that during the year 2020-21 only Rs.24 crore could be disbursed as MUDRA (Micro Units Development and Refinance Agency) loan to 4278 sanctioned loans," it said.

Such low offtake of the MUDRA loans has been attributed to the COVID-19 pandemic, it said, adding the ministry has deposed that setting a target for banks will definitely help improve the disbursements under the MUDRA loan scheme. 

"The Committee desire that the matter be taken up at the appropriate level so that appreciable disbursements are made under MUDRA loan Scheme during 2021-22 for the benefit of handloom weavers," it said.

On cotton, it suggested to the ministry to earnestly endeavour to enhance the cotton exports and gradually reduce the imports.

It also said the ministry should earmark a part of the Budget allocated under ATUFS (Amended Technology Upgradation Fund Scheme) for research development on upgradation/modernisation of the textile industry so that the import of high quality machinery can be decreased gradually.

Further, it said anti-dumping duty, inverted duty structure, differential tariff rates, high labour and power cost and inadequate logistic arrangements are "seriously" impeding domestic textile and apparel industry to compete with international counterparts.

"The committee urge the ministry to follow up the matters at the appropriate fora so that systemic improvements are ushered in for leveraging the export potential of the industry," the report added.

Source: The Outlook

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Organic cotton industry is booming and here’s why!

According to the Organic Trade Association, there has been 31% of growth in the organic cotton industry in the past one year and it is expected to see a rise of 10% by the year 2021. In the Indian economy, organic cotton has an important role as India is one of the largest exporters and producers of cotton yarn.

India’s textile industry is predominantly organic cotton-based. Basically, organic cotton is known as non-genetically engineered cotton grown without using agricultural chemicals like pesticides and fertilizers. We spoke with Shikha Kumar, Director & Co-Founder of Nino Bambino, which only deals with organic clothing to enlighten our readers on how organic cotton is dominating Indian clothing industry, and this is what she had to say.

Employment opportunity

The textile industry in India has generated an enormous amount of employment for both types of labour, skilled and unskilled, According to Business Standard, the textile industry is considered to be the second-largest sector to produce employment. States like Gujarat, Karnataka, Madhya Pradesh, Haryana, Rajasthan, Maharashtra, Telangana, and Punjab are the major producers of cotton in India. According to Textilegence, around 16% of industrial capital and 20% of industrial labor of our nation are involved in this industry. Fortunately, we have witnessed exponential growth in the cotton industry in the past four decades.

What amount of organic cotton is grown globally?

Though growing organic cotton isn’t an easy task and requires many conditions to be fulfilled, one of them being the requirement of a huge amount of water for growing organic cotton as compared to the cotton grown conventionally. However, talking about the demand for organic cotton, the data shows exponential growth over the years.

The prominent states producing organic cotton

The cotton-growing areas of Ahmedabad are popular for cotton textile production and are also called as Manchester of India, An amount of cotton garments manufactured are exported across the globe. Another largely concentrated cotton-growing area is Mumbai, Maharashtra. There are many prominent factors behind these cities becoming popular for cotton production and some of them are cheap labour, humid climate, and to port facility. It is easier to carry out the production anywhere in India as far as energy and proximity water supply are available for dyeing.

Major benefits of cotton clothing

While we consider the benefits of cotton clothing, there are many benefits in a queue. By the passing time, most of the people are genuinely interested in choosing organic cotton clothing all over the world because of its texture and comfort as they are inclined towards leading a healthy life, majorly because it is non-synthetic and breathable fiber. The other benefits include conservation of natural resources, better living of farmers growing organic cotton, less chemical usage, Higher quality products, Less corporate control, Non-allergic, Toxic-free dyes, a natural way of clothing, fair treatment with farmers, etc.

Summing up!

The whole world is witnessing the remarkable benefits of the production of organic cotton, be it clothing demand or employment opportunities. According to Economic Times, if we talk about the rates of organic cotton, it has increased by 8 to 12 percent or say 356/kg each. Major contributors of organic cotton across the globe are India, China, Turkey, Kyrgyzstan, Uganda, Greece, Benin, Peru, Pakistan, Thailand, and few other countries. The best part about expecting a good growth story in this industry is that it is grown using such materials and methodologies that have very little impact on the environment. Though there has been a negative impact on the production process of organic cotton due to coronavirus, the estimated horizon of production will be touched in the years to come.

Source: The Times of India

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Surat textile/diamond workers need to get tested once a week

In the wake of a rise in COVID-19 cases in Surat, people working in textile and diamond industries here are required to get themselves tested for the viral infection once a week, the city civic body has said.

In daily tests here in Gujarat, majority of those found infected are associated with the textile business, the Surat Municipal Corporation (SMC) said in a release issued on Monday evening.

Of late, Surat, a textile and diamond hub, has been reporting the highest number of daily COVID-19 cases in the state, as per official data.

"Considering the prevailing COVID-19 situation in the city, people associated with textile and diamond industries will be required to get themselves tested once a week, and daily checking with pulse oximeter (to measure oxygen saturation level) will be mandatory," the SMC's release said.

The textile and diamond industries will have to strictly adhere to COVID-19 guidelines, it added.

The civic body also said it has intensified testing in crowded places, including diamond and textile units and educational institutions.

On Monday, Surat recorded 240 new COVID-19 cases, the highest in the state, taking the infection count in the city to 42,716, as per the SMC.

Source: The Indian Express

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FDI policy in e-commerce sector should be enforced in letter and spirit

Domestic traders' body CAIT on Wednesday said the foreign direct investment policy in the e-commerce sector should be enforced in letter and spirit so that global players do not violate the rules. The issue was raised by Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal at a meeting called by the Department for Promotion of Industry and Internal Trade (DPIIT) to discuss about FDI in e-commerce.

The present policy, that allows 100 per cent FDI in marketplace e-commerce platforms and prohibits FDI in inventory-based model of e-commerce, is absolutely correct and in line with government's intent to protect the small merchants, he said.

"The policy should be enforced in letter and spirit," he added.

According to him, due to creative interpretations about the relationship between marketplace and sellers, global companies are controlling either the sellers on their platform or their inventory.

"The control of foreign marketplace platform entities, over the sellers on their platform, enables them to do anti-competitive practices such as predatory pricing and deep discounting through capital dumping that has led to closure of a large number of small merchants/ kiranas leading to job loss for lakhs of people every month," he said.

CAIT has time and again alleged that large multinational e-commerce companies have continued to indulge in prohibited inventory-based model of e-commerce by direct and indirect control over the seller's/inventory.

He also said the government should have the right to seek information and audit the accounts of the entities involved in e-commerce.

"An independent regulatory body should be constituted to regulate the sector and take immediate action on violations such as deep discounting, preferential arrangements with sellers, discriminatory treatments," he said.

The meeting was also attended by representatives of Retailers Association of India (RAI) and All India Consumer Products Distributions Federation. It was chaired by DPIIT Secretary Guruprasad Mohapatra.

Source: The Economic Times

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INTERNATIONAL

Maxxam Textiles launches eco-Maxxam crinkle stretch fabric

Innovative textile producer Maxxam Textiles, renowned for its pioneering seamless crinkle stretch Maxxam fabric developed and patented by Rosemary Moore in 1983, has launched eco-Maxxam featuring Q-Nova, a highly ecological state-of-the-art recycled nylon from Italy which aims to reduce CO2 emissions, consume less water and use renewable energy.

With its 40-year heritage and renowned for its innovative seamless stretch, Maxxam has always been an efficient, cost-effective, and low waste fabric with its seamless one-size crinkle stretch enabling the same garment to fit from a women’s UK size 8 to size 20 and upwards. Q-Nova is a new development from Maxxam Textiles’ Italian spinner, utilising an environmentally sustainable recycled polyamide 6 yarn made from industrial waste and carries the Oeko-Tex Standard 100 and Global Recycled Standard (GRS) Certification, which has enabled the development of an even more sustainable version of the Maxxam fabric.

In the late 1980s, Maxxam took the fashion world by storm leading the trend for body conscious clothing. Previously made around the world under licence since 1983, Maxxam Textiles has in the last seven years acted as its own converter working with partner factories based in the UK to produce the finished fabric. With a huge revival in popularity from swimwear brands including Bond Eye, You Swim and many other brands, the new eco-Maxxam option now offers an even more sustainable choice for swimwear, activewear, leisure and loungewear, womenswear, and kidswear.

“I’m constantly striving for innovation and exploration in my work, using the latest textile machinery to push the potential of the Maxxam fabric innovation into the 21st century. While the original patented Maxxam fabric is low waste and cost-effective, since reshoring manufacturing to the UK I have been exploring more environmental and sustainable technology.

I am very excited to bring eco-Maxxam, featuring recycled nylon, to market and continue to discover the endless possibilities of Maxxam crinkle stretch fabric. We will also be expanding into cellulosic fibres as well as investigating more ecological polyurethane yarns,” Rosemary Moore, inventor of Maxxam and founder of Maxxam Textiles, said in a press release.

With a career spanning four decades Moore has worked with some of the world’s leading producers, designers and brands including Courtaulds, Ace Style Inc (Hong Kong), Fabrictex USA, Triumph, Speedo, Seafolly, Heathcoats, Liza Bruce, Liberty, Ichida Co Ltd Japan, Nitto Boseki Co Ltd Japan, Du Pont (Invista), Missoni, Swatch, Dunlop (developed in 1990 the seamless trainer), Charnos, Victoria Secrets, Issey Miyake, Katherine Hamnett, Falke, and Hunza. In 2010, Moore’s passion for working on sustainable and ethical projects led her to collaborate with Lance Clark on Soul of Africa.

The new collection from Moore Maxxam, a non-gendered slow fashion children’s activewear label co-founded by Moore’s daughter, the creative innovator and regenerative designer Iona Clive, is due to launch in March 2021 using eco-Maxxam.

Source: Fibre2Fashion News

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Philippine Textile Council urges more businesses to support Filipino weavers

Even before the COVID-19 pandemic hit the country, major challenges have confronted the Philippine weaving industry. This include issues on supply chain, lack of credit and funding facilities, and the price and supply of cotton available to Filipino weavers.

While there has been a renewed and vibrant interest in local textiles, these challenges disrupt the revival and sustainability of the Philippine weaving industry.

In order to flourish in the new normal, the Philippine weaving industry needs support not only from consumers but also from key decision-makers in the Philippine business community.

HABI: The Philippine Textile Council launches HABI Connects, a campaign to encourage more entrepreneurs, as well as mall and big businesses both local and foreign, to support the Philippine weaving industry and the many skilled weavers from Luzon, Visayas and Mindanao.

Through HABI Connects, the textile council aims to link more local and global brands and businesses with Filipino weavers from different parts of the country.

The campaign begins with a collaboration with Bayo, a like-minded homegrown Filipino fashion brand. It rolls out a collection that uses natural fiber textiles in cotton, abaca and piña from La Herminia in Aklan, Ambension weavers in Bulacan and Argao weavers in Cebu.

It also features weaves of polyester worked with cotton threads to upcycle industry scraps or production offcuts and avert them from ending up in landfills.

The collection is now available at www.bayo.com.ph and at www.shophabifair.com.

“We’re elated that more brands are using sustainable and local materials in their products,” Laida Lim, president of HABI, said.

“Our collaboration with Bayo is just the beginning. With the HABI Connects campaign, we hope that more entrepreneurs and businesses, not just in fashion and lifestyle but also in other industries, will follow suit and support our local weaving communities," Lim continued.

Since 2009, HABI: The Philippine Textile Council has been at the forefront of promoting, preserving and sustaining the local textile industry. Over the years, HABI has connected Filipino weavers with more consumers through the annual Likhang HABI Market Fair.

Source: Philstar.com

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Indian govt looks forward to Japan participating in PLI schemes

India and Japan will be the most preferred strategic partners in days to come, according to Guruprasad Mohapatra, secretary of the department of promotion of industry and internal trade (DPIIT). India looks forward to Japan participating in the performance-linked incentive (PLI) scheme for 13 key sectors, he told the 44th India-Japan Business Cooperation Committee Meeting.

The meeting was organized by the Federation of Indian Chambers of Commerce and Industry (FICCI).

Japan is one of the key investors in India with a cumulative investment of more than $30 billion, which represents 7.05 per cent of the cumulative inflows received till date, he said.

"India-Japan investment promotion partnership focuses on the next generation infrastructure, connectivity, smart cities, manufacturing, rejuvenation of river, water security with special interest to India," Mohapatra was quoted as saying by a FICCI press release.

India and Japan are collaborating in the form of an industrial competitiveness partnership that will work towards enhancing India's industrial competitiveness.

The COVID-19 pandemic, has led to foreign exports to Japan, and this provides India with a unique opportunity to attract fresh Japanese investments, he added.

Source: Fibre2Fashion News

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UK GDP hit less than feared by Jan lockdown, Brexit hits trade with EU

When the United Kingdom went back into a coronavirus lockdown in January, its economy shrank by less than feared in that month, but trade with the European Union (EU) was badly hit as new post-Brexit regulations were introduced. Gross domestic product was 2.9 per cent lower than in December, according to data released by the Office for National Statistics (ONS).

The country suffered its worst economic slump in three centuries last year when it shrank by 10 per cent. But the country is racing ahead with vaccinations and, economists expect the economy would shrink by 2 per cent in the first quarter of this year, half the hit forecast by the Bank of England (BoE) in February, a global newswire reported.

The ONS figures also showed exports and imports from Britain to the EU plunged by the most on record, although there was a delay in gathering some of the data and there were signs of a pick-up towards the end of January.

Source: Fibre2Fashion News

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Take steps to contain further deterioration in exports, imports: Parliamentary Panel

A parliamentary panel has suggested to the Department of Commerce to take appropriate measures to check further deterioration in exports and crucial imports for preventing more disruptions in the supply chains. A report by the department-related Parliamentary Standing Committee on Commerce said the committee is perturbed to note the "precipitous" decline in both exports and imports in 2020 which is to the tune of around USD 50 billion and around USD 150 billion, respectively.

The sluggish growth in exports before the occurrence of the COVID-19 pandemic has further witnessed a downturn in the event of measures taken globally to combat the pandemic, it said.

"The committee recommends the department that any further deterioration in exports and crucial imports may be checked by taking requisite measures for preventing further disruptions in supply chains in the trade," it said.

On free trade agreements, it said in a globally competitive world wherein the international trade equations play a significant role, India may sign considerably more agreements with like-minded, democratic and friendly countries like the US and Australia.

"The committee, therefore, recommends that the department should explore the opportunities of FTAs with such nations by having wider consultations with relevant stakeholders and, accordingly, persuade the government to ink more trade pacts and agreements with them that are mutually beneficial," it added.

The committee suggested a comprehensive study to identify the major issues/challenges impacting the trade activities in India in the times of the COVID-19 pandemic.

It has also recommended that a spur in the growth of both exports and imports is required by addressing the supply side constraints and easing the trade procedures.

"The study would help in identifying the structural infirmities existing in trade and exports that aggravated the deterioration of overall commerce of the country in times of crisis," it added.

It has also recommended that any sudden and abrupt changes in freight rates may be countered by interventions by the government to impose regulations against cartelisation of rates and increasing the container production and shipping services.

"To tide over the paucity of the containers which was aggravated during Covid-19 pandemic, resulting in increased freight charges by shipping companies, the committee recommends that the prospect of manufacturing containers in the country may be explored with the infrastructure available in existing shipyards by providing them facilities/incentives," it added.

To regulate the shipping freight rates in a fair and transparent manner, a national shipping regulatory body may be constituted on the lines of the Insurance Regulatory and Development Authority (IRDA) and Telecom Regulatory Authority of India (TRAI), it added.

On the scheme for Remission of Duties and Taxes on Exported Products (RoDTEP), it said the determination of ceiling rates for refunds under the scheme by the G K Pillai committee should be expedited to avoid any delay.

The panel has also recommended to further extend the interest subsidy scheme for a year since the abrupt discontinuation would adversely impact the MSME exporters in these difficult times.

Source: The Economic Times

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