The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 02 JUNE, 2021

NATIONAL

INTERNATIONAL

Textile industry biz picks up as lockdown curbs ease

Garment and textile industry is upbeat over several states easing lockdown curbs that has ignited hope of movement of their goods in transit or not delivered to the warehouses and offices of their customers. Some of the industrialists have already started getting calls from their customers for discussing delivery and next consignment plans that has brought sense of cheer amongst businessmen. Vinod Thapar, chairman of Knitwear Club, said, “Maharashtra has relaxed lockdown curbs slightly in several cities from Tuesday, while Uttar Pradesh too lifting day curfew from districts having less than 600 coronavirus cases and Rajasthan also has announced it will ease the restrictions from Wednesday at some places. Though these states are not going to open up entirely this week but the unlocking has started and several business activities will start right away. This is a good sign for garment factories of Ludhiana that were under extreme pressure due to piling of goods worth several hundred crores in our factories, in transit and in godowns of transports after one after another state went into lockdown. We are assuming that in next 7-10 days the movement of goods will start though it is not going to return back to normal as of now but still something is better than nothing.” According to Harish Kairpal, finance secretary of Knitwear Club, “We have heaved a sigh of relief as we have started receiving calls from our customers based in states like UP, Rajasthan and Delhi for holding discussions about the goods that were in transit or are held up at the godowns and offices of the transport ever since the lockdown in those state started. We were very much worried about these consignments as these were undelivered due to closure of the shops, offices and warehouses of our customers due to the lockdown in their states. We are hoping that in majority of the states shops, showrooms will be allowed to open in a day or so and our customers will be able to receive the goods.” Narinder Mittal, general secretary of the Ludhiana Business Forum, said, “This is a big relief for us as there was huge uncertainty over the future of the already shipped goods. It is a common trade practice that we cannot push our customers for payment of the goods, which are undelivered, so we were not asking them for paying up for these goods, but now customers are themselves calling us for finalising the payment schedule of these consignments as they also know that they will soon get the goods after their state governments have announced easing the curb.

Source: Times of India

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Industry bodies urge RBI to put off new audit rules

Top industry associations have called on the Reserve Bank ofIndia to put o implementation of its new auditing guidelines for banks and NBFCs and reconsider some proposed rules, citing transition problems for both companies and auditors. Confederation of Indian Industries (CII), Assocham, and Finance Industry Development Council (FIDC) have all written to the central bank about the problems companies would face in implementing the proposed regulations for appointment of statutory…………

Source: Economic Times

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Manufacturing PMI slips to 50.8 in May, marking steepest fall in 10 months

 Job loss accelerated as Covid-19 'crisis intensifies' in sector, says private survey The growth of India’s domestic factory orders and production slowed to a 10-month low in May as most states restricted businesses to contain the spread of Covid-19. The overall manufacturing activity witnessed a significant loss of growth momentum owing to the escalation in Covid cases and its detrimental impact on demand, according to a private survey. The IHS Markit India Manufacturing Purchasing Managers’ Index (PMI) slipped to 50.8 in May from 55.5 in April. That was just above the 50 mark separating growth from contraction. In May 2020, manufacturing activity had contracted, with the PMI falling to 30.8. The decline in employment was slight but had accelerated since April, said the report, which is based on a survey of 400 manufacturers. The data has come ahead of the Index of Industrial Production (IIP) numbers for April, which will show the real impact of the second Covid wave on manufacturing and services sectors. "India’s manufacturing sector is showing increasing signs of strain as the Covid-19 crisis intensifies. Key gauges of current sales, production, and input buying weakened noticeably in May and pointed to the slowest rates of increase in 10 months. In fact, all indices were down from April,” Pollyanna De Lima, economics associate director at IHS Markit, said in the report. De Lima, however, said the detrimental impact of the pandemic and associated restrictions seen in the manufacturing sector was considerably less severe than during the first lockdown, when unprecedented contraction had been recorded. Firms scaled up production volumes during May, but the pace of expansion was modest in the context of historical data. In fact, the rise was the weakest in 10 months. Anecdotal evidence indicated that the upturn was curbed by the escalation of the pandemic and difficulties in securing raw materials. Although new export orders also increased at a softer rate, the upturn was solid and outpaced the long-run series trend. "Growth projections were revised lower as firms became more worried about the escalation of the pandemic and local restrictions. The overall degree of optimism towards the year-ahead outlook for output was at a 10-month low, a factor which could hamper business investment and cause further job losses,” said De Lima. The latest figure pointed to a marginal improvement in business conditions, which was the weakest in the 10-month sequence of expansion. Besides, new orders increased at a marginal pace, which was the slowest since August 2020. “The dip in the PMI we have seen is in line with the widening localised restrictions over the months of April and May and is also in line with soaring sequential momentum, which we have seen in many other high-frequency indicators,” said Aditi Nayar, chief economist, ICRA. Talking about job losses, De Lima said, “Amid a lack of new work, goods producers reduced headcounts again, with the rate of job shedding quickening in May.”

Source: Business Standard

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Additional tax likely for MNCs importing raw materials

Some traditional companies that do not have a PE in India could also nd themselves embroiled in the new tax framework, tax experts said. These rms may have to pay up to 42% of their income in taxes in the country, up from nil now. Some traditional companies that do not have a PE in India could also nd themselves embroiled in the new tax framework, tax experts said. These rms may have to pay up to 42% of their income in taxes in the country, up from nil now. Multinationals that import equipment or raw materials, or lease certain types of manufacturing goods, may have to pay additional taxes as government’s move to ta overseas companies’ income from digital transactions in the country has ended up covering offline transactions too. The significant economic presence (SEP) provisions announced in May primarily intended to target digital MNCs and startups that operate in the country without a permanent establishment (PE). Some traditional companies that do not have a PE in India could also nd themselves embroiled in the new tax framework, tax experts said. These rms may have to pay up to 42% of their income in taxes in the country, up from nil now. The intention of SEP provisions was probably to only cover digital transactions within the tax net, experts said. However, the wordings of the regulation appear to trigger unintended consequences for MNCs and even some Indian entities, they said.

Source: Economic Times

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How is India emerging as a Growth Hotspot for the Medical Textiles Market?

The healthcare industry has witnessed exponential advancements over the years. The healthcare sector is unpredictable. One cannot project how the demand for a specific product rises when a certain epidemic or pandemic emerges. The advent of the novel coronavirus pandemic has led to an increased demand for a variety of medical devices and products such as oximeters, oxygen concentrators, face masks, Personal Protective Equipment (PPE) kits, and others. The medical textile industry is experiencing a rise in the demand for PPE kits. These kits are made from medical textiles and hence, the medical textiles market will experience a positive growth trajectory. Medical textiles are fibrous fabrics made for safely treating wounds and medical conditions. Two main types of fibers are used in developing medical textiles: specialty fibers and commodity fibers. These textile types are different from normal textiles. The properties of medical textiles make them a perfect fit for various uses across the medical industry. Some of the major properties of medical textiles are: • Anti-microbial • Biocompatible • Non-carcinogenic • Non-toxic • Non-allergenic Medical textiles are used across medical or healthcare applications to minimize the risks from exposure to hazardous substances and prevent the risk of cross-infections. The healthcare and hygiene category forms the crux of the growth of the medical textiles market. The products included in the healthcare and hygiene category are PPE kits, bedding, mattress covers, surgical gown, wipes, surgical masks, and others. The pre-pandemic era saw the use of medical textiles in a plethora of applications for pressure garments, bandages, and others. While the post-pandemic era maintained a consistent demand for such applications, the exponential rise in the use of PPE kits and surgical masks led to the creation of a new demand trajectory within the medical textiles market. The unprecedented demand for PPE kits and surgical masks will shape the growth of the medical textiles market in the coming years. Before COVID-19 wreaked havoc across the globe, the demand for medical textiles was already high but there was never a moment when the demand was such that it outsmarted and burdened the supply chain mechanisms. With the emergence of the pandemic, PPE kits and surgical masks became prominent weapons for the frontline workers such as doctors, nurses, ambulance drivers, and other healthcare staff. The demand for medical textiles increased exponentially due to the overwhelming demand for PPE kits and surgical masks. This factor will prove to be a game-changer for the medical textiles market. TMR offers custom market research services that help clients to get information on their business scenario required where syndicated solutions are not enough, request for custom research report India Contributing Tremendously to the Medical Textiles Market From facing a great shortage of PPE kits and masks to becoming the second-largest manufacturer of PPE kits, India has come a long way. More than 450000 units are produced daily by over 1000 manufacturers in India. With the ease in restrictions on regulations and quick approvals, India has managed to scale PPE production to a great extent. Now, it is not just self-reliant in PPE kit production but is also one of the largest producers of PPE kits in terms of volume. The rise in the production of PPE kits and surgical masks is directly proportional to the growth of the medical textiles market. With an uptick in the demand for PPE kits, the production costs have gone considerably down, which eventually leads to an increase in sales. All these aspects will influence the growth of the medical textiles market to a substantial extent. As the COVID-19 pandemic continues to rage across the globe, the demand for PPE kits and surgical masks will remain constant. Thus, these factors will continue to add extra stars of growth to the medical textiles market.

Source: Tech Bullion

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Second Covid-19 wave poses increased risks to India's sovereign credit prole: Moody's

Existing risks which included a persistent slowdown in growth, weak government nances and rising nancial sector risks, have been exacerbated by the shock, Moody’s said in a report on Tuesday. The severe second wave of Covid-19 has increased risks to India’s sovereign credit prole and its outlook, according to Moody’s Investors Service. Existing risks which included a persistent slowdown in growth, weak government nances and rising nancial sector risks, have been exacerbated by the shock, Moody’s said in a report on Tuesday…………..

Source: Economic Times

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Top five lifestyle retailers save Rs 2,700 cr in costs

Top ve listed lifestyle retailers and quick service restaurants - Aditya Birla Fashion and Retail, Shoppers Stop, Trent, Burger King, and Westlife Development - saved more than ₹2,700 crore mostly in operational costs last scal after negotiating with landlords and restructuring employee costs. Top ve listed lifestyle retailers and quick service restaurants - Aditya Birla Fashion and Retail, Shoppers Stop, Trent, Burger King, and Westlife Development - saved more than ₹2,700 crore mostly in operational costs last scal after negotiating with landlords and restructuring employee costs. These ve and………

Source: Economic Times

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SBI cuts FY22 GDP growth estimate to 7.9%; recovery to be 'W-shaped'

The economists at the state-run lender seemed to attribute the impact of the second wave of Covid infections as a key factor for the revision in the growth estimate, and pitched for faster vaccination State Bank of India (SBI) economists on Tuesday sharply slashed their FY22 GDP growth estimates to 7.9 per cent — the lowest among all analysts — from the earlier projection of 10.4 per cent. The economists at the state-run lender seemed to attribute the impact of the second wave of Covid-19 infections as a key factor for the revision in the growth estimate, and pitched for faster vaccination. “… our analysis shows a disproportionately larger impact on the economy this time and given that rural is not as resilient as urban, the pick-up in pent-up demand is unlikely to make a large difference in FY22 GDP estimates, and hence it could only be a modest pickup,” they said. The SBI economists said the increasing international commodity prices will also have an impact on the GDP growth, and added that the overall consumption trajectory will depend on the recovery in “trade, hotels, transport, communication and services related to broadcasting” services that support roughly 250 million households. They, however, said that at Rs 145.8 trillion, the real GDP for FY22 will be “slightly higher” than those in FY20, and called it a “W-shaped” — and not the earlier anticipated “Vshaped” — recovery with two troughs. The Reserve Bank of India has maintained its growth estimate at 10.5 per cent, despite the emergence of the second wave. It may have a relook at the number at this week’s policy review. Other analysts have been revising down their estimates after the devastating second wave, with an 8.5 per cent growth being lowest among the predictions. Official data released on Monday said the economy grew faster than expected at 1.6 per cent for the fourth quarter of FY21, resulting in a contraction of 7.3 per cent for the entire fiscal. The SBI economists said an “upward bias” to its growth estimate of 7.9 per cent is possible if the country delivers on the stated aim of 10 million vaccines a day by mid-July.

Source: Business Standard

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ECLGS tenor repayment extension will help MSMEs: TEXPROCIL

The modification of Emergency Credit Line Guarantee Scheme (ECLGS) by the Indian government will help micro, small and medium enterprises (MSMEs), including textile MSMEs, The Cotton Textiles Export Promotion Council (TEXPROCIL) has said. The government has extended ECLGS for eligible MSMEs including borrowed credit under ECLGS 1.0 to five years. Borrowers who are eligible for restructuring as per RBI guidelines as of May 05, 2021 and had availed loans under ECLGS 1.0 of overall tenure of four years comprising of repayment of interest only during the first 12 months with repayment of principal and interest in 36 months thereafter will now be able to avail a tenure of five years for their ECLGS loan i.e. repayment of interest only for the first 24 months with repayment of principal and interest in 36 months thereafter. “The increase in the period for repayment of loans to 5 years has come as a huge relief for the MSMEs who are struggling hard to get back to business from the disruptions caused by the second wave of COVID-19 pandemic,” TEXPROCIL chairman Manoj Patodia said in a press release. An additional ECLGS assistance of up to 10 per cent of the outstanding as on February 29, 2020 to borrowers covered under ECLGS 1.0 has also been extended. "This is a very positive measure as it will lead to an increase in the much-needed cash flow for the MSMEs," Patodia said. The current ceiling of ₹500 crore of loan outstanding for eligibility under ECLGS 3.0 has also been removed, subject to maximum additional ECLGS assistance to each borrower being limited to 40 per cent or ₹200 crore, whichever is lower. Further, the validity of ECLGS extended to September 30, 2021 or till guarantees for an amount of ₹3 lakh crore are issued. Disbursement under the scheme is permitted up to December 31, 2021. The removal of the ceiling for eligibility under ECGLS 3.0 and also the extension of the ECGLS will enable more units to take the benefits under the scheme, according to Patodia.

Source: Fibre 2 Fashion

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CPEC faces new opportunities to boost industrial cooperation: Global Times

Since being officially launched in 2015, the China-Pakistan Economic Corridor (CPEC), the Belt and Road Initiative (BRI) flagship project, has begun to bear fruit. As construction of the CPEC project has come into the new stage of promoting industry and industrial park cooperation, Pakistan is facing new opportunities to fast-track the development of its industries which can help it compete globally, according to an article published by Global Times on Tuesday. Industry cooperation has come along slower, relative to other aspects in overall CPEC cooperation in recent years. At the early stage of the project, there were issues including energy supply shortage, infrastructure deficiency and inefficient implementation of the incentive policies. At that time, some in Pakistan lacked a clear understanding of the direction of industrial development, despite seeing the value of building on the country’s core competitiveness. Since the 1970s, Pakistan has started the process to promote economic liberalization and the economy’s opening-up. Joining the BRI and CPEC cooperation is part of the country’s efforts in accelerating its opening-up process. In these couple of years, the country focused on industrial park construction while trying to undertake industrial relocation from China. Now, Pakistan has largely surpassed India in many aspects when it comes to economic opening-up. Since the COVID-19 outbreak, the significance of the construction of the CPEC has become a key highlight for the country’s economic development. The construction of the CPEC will play a supporting role in Pakistan’s economic recovery in the post-pandemic era. Pakistan should seize the opportunity to formulate scientific development plans to advance domestic industries with competitive advantages. Since the 1970s, Pakistan has started the process to promote economic liberalization and the economy’s opening-up. Joining the BRI and CPEC cooperation is part of the country’s efforts in accelerating its opening-up process. In these couple of years, the country focused on industrial park construction while trying to undertake industrial relocation from China. Now, Pakistan has largely surpassed India in many aspects when it comes to economic opening-up. Since the COVID-19 outbreak, the significance of the construction of the CPEC has become a key highlight for the country’s economic development. The construction of the CPEC will play a supporting role in Pakistan’s economic recovery in the post-pandemic era. Pakistan should seize the opportunity to formulate scientific development plans to advance domestic industries with competitive advantages.

Source: Daily Times

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China’s economic boom leaves manufacturing hubs short of power

Factories ordered to shut for days after hot weather and coal concerns exacerbate supply problems. China’s runaway economic recovery has been so successful that it has caused power shortages across dozens of its manufacturing and industrial hubs in the south of the country. Factories across cities such as Guangzhou, Foshan and Dongguan, known for producing global consumer and high-tech products, have been ordered to use less power and even close for between one to three days a week to mitigate the shortfall. Klaus Zenkel, chair of the EU Chamber of Commerce in South China, said that about 100 of the organisation’s companies were affected and further shortages risked having an adverse impact on foreign investment in the region. “After the economic recovery postpandemic, companies are very busy and have a lot of orders . . . Now some have been asked to shut down three days a week. It’s quite unreasonable,” Zenkel said. “It’s an infrastructure issue that needs to be handled immediately.” As other economies struggle to return to growth, record demand for power from factories and industry has outstripped supply in Guangdong province, where the cities are located. The problem has been exacerbated by high temperatures as well as low rainfall in Yunnan, which Guangdong partly relies on for hydropower. Analysts said the central government’s carbon emissions targets had also made local governments reluctant to expand their reliance on coal-fired power, forcing officials to ration electricity instead. With China’s carbon plan . . . local governments are very nervous about their use of coal and thermal power,” Shan Guo, Partner at Plenum China Research, said. Lara Dong, from data provider IHS Markit, said limits on coal imports and domestic production was also a factor contributing to the shortages. Factories are worried that they will be unable to fulfil their orders in time after the China Southern Power Grid Company said on Saturday that 21 cities and regions across Guangdong would be included in the rationing or restrictions on usage. Companies have to limit the power supply or their electricity will be cut off. Mike Wang, the manager of an electronics factory in Dongguan hit by the shortages, said staff were “sweating profusely” through 36C days as they could not turn on the air conditioners and fans without breaching power usage limits. “I am really worried now. I don’t know how to explain to clients [that their orders would be late],” he told the Financial Times. He said that power shortages had hobbled his factory’s efficiency by 20 to 30 per cent. China has experienced one of the fastest economic recoveries in the world from Covid-19, driven mainly by its industrial and manufacturing sectors. Its economy grew 18.3 per cent in the first quarter of 2021 compared with the same period last year, though the growth rate was boosted by a low base in early 2020. From January to April, the total electricity consumption of a group of cities in Guangdong, across the border from Hong Kong and Macau known as the “Greater Bay Area”, increased by nearly 30 per cent year on year, the power company said. Provinces across China are under pressure to reduce their energy intensity — carbon dioxide emissions per unit of GDP — as part of central government efforts to reach peak carbon emissions by 2030 and reach “carbon neutrality” by 2060. Dong said there was a risk of more rationing as the province approached its expected peak in demand in July or August.

Source: Financial Times

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China says trade envoy talks with US treasury secretary

China’s chief trade envoy talked with Treasury Secretary Janet Yellen on Wednesday, the Chinese government said, but gave no indication when negotiations on ending their tariff war might resume. Talking by video link, Vice Premier Liu He and Yellen discussed the economic situation, bilateral cooperation and other ”issues of mutual concern,” according to a Commerce Ministry statement. It gave no details.President Joe Biden, who took office in January, has yet to say what approach he will take to the conflict launched by his predecessor, Donald Trump, who raised tariffs on Chinese imports over complaints about Beijing’s industrial policy and trade surplus. China retaliated by suspending purchases of US soybeans and raising tariffs on other goods. Liu talked by phone last week with Trade Representative Katherine Tai, the head of the US delegation to the tariff talks. Tai’s office said she discussed her ?ongoing review? of the trade relationship. Negotiators haven’t met in person since before the coronavirus pandemic began in early 2020. Lower-level officials hold monthly meetings by phone on the status of carrying out the ‘Phase 1’ agreement from early 2019 aimed at ending the conflict. The two sides agreed in the ‘Phase 1’ deal to suspend further tariff hikes on each other’s goods and to roll some back. China promised to buy more American soybeans and other exports. Beijing fell behind on meeting that commitment after the pandemic disrupted global trade.

Source: Financial Express

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IAF and Euratex open registration to unique double convention in Nov

From November 7-9, 2021, the world of apparel and textiles will meet in Antwerp, Belgium, for a unique double convention: the 36th World Fashion Convention on November 7-8, hosted by International Apparel Federation (IAF), and the 9th European Textiles and Apparel Convention on November 8-9, hosted by European Confederation of Apparel and Textiles (Euratex). Covid-19 has shaken the foundations of the textiles, apparel and fashion industry. Global supply chains have been disrupted, retailers are restructuring their sourcing options, consumer behaviour is changing, IAF and Euratex stated in a joint statement. At the same time, public authorities are introducing new environmental standards, and digitalisation is rapidly changing the nature of our business. To understand above mentioned trends and address their impact on our industry, IAF and the Euratex have decided to organise a double convention. “Delegates can choose to register for the IAF’s 36th World Fashion Convention, for EURATEX’s 9th European Textiles and Apparel Convention or for a combination of both, which the organisers of course recommend. The IAF Convention, carrying the theme ‘Transition of the Global Fashion System’ focusses on global industry developments whereas the Euratex convention, themed “A new paradigm for the European Textiles and Clothing Industry”, has a strong European focus. Therefore, the two conventions are perfectly complementary,” the release said. The Antwerp Convention will be the first ‘live’ meeting for our industry in nearly two years’ time. That’s why the convention will combine knowledge with social events, notably the IAF and Euratex joint networking dinner on November 8 in the Antwerp Fashion Museum. Euratex and IAF conventions are well established industry events featuring a high level of speakers and delegates. Previous speakers came from PVH, Hugo Boss, Zegna, as well as European Commission, McKinsey, OECD, and London College of Fashion. “We expect about 150 delegates at each event, from over 20 countries. This event will bring together industry leaders, leaders of industry associations, public authorities, NGOs and academia,” the release concluded.

Source: Fibre2 Fashion

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World economic recovery likely to remain uneven: OECD

Prospects for the world economy have brightened but the recovery is likely to remain uneven and, crucially, dependent on the effectiveness of public health measures and policy support, according to the OECD's latest Economic Outlook. Economic recovery will be modest in many emerging-market economies where access to vaccines are limited, the report states…………….

Source: Fibre Fashion

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Fast fashion: What's the big deal?

Cheaper prices and shorter fashion cycles mean shoppers are encouraged to keep buying more to stay in style. What does it mean for the planet? Human contribution to climate change often seems abstract and therefore easy to ignore. Rising sea levels, increasing temperatures and CO2 emissions, all feel a bit, well, distant. It's a different story, however, with our clothes, because every time we get dressed in the morning, the human impacts of climate change touch the surface of our skin. That's because the textile industry has become one of the world's worst polluters and drivers of climate change. Take denim jeans, a worldwide favorite. Making just a single pair requires up to 10,000 liters of water — that's roughly enough to quench the thirst of an average adult for more than 13 years.

Okay, but at least I don't fly

Nice try Turns out, the fashion industry is worse for the environment than aviation. Much worse. In 2018, air travel — both freight and passenger — accounted for up to 2.5% of global carbon dioxide (CO2) emissions. The fashion industry was responsible for four times that. Belching out pollution is one thing, but making clothes also sucks up finite resources — using around 93 billion cubic meters of water a year. Cotton, one of the industry's favorite raw materials, is so thirsty it's responsible for 2.6% of global water usage. According to recent research, the textile industry has also become a major contributor to microplastic pollution. This is caused by synthetic textiles, such as polyester or nylon which shed tiny bits of plastic. These fibers — often too small to see with the naked eye — find their way into our oceans where they harm sealife by altering their feeding behavior, slowing appetites and blocking digestion. They also end up in our food and water. Researchers estimate that a single European consumer of shellfish eats up to 11,000 pieces of microplastic a year. It's still unclear exactly how what damage this does to the human body. I don't eat seafood and I'm not interested in fashion That doesn't mean you don't benefit from the industry's fast fashion culture. Whether your wardrobe is bursting or you just get a pair of socks for Christmas, overproduction in the fashion industry has made clothing instantly available to consumers at prices that are not sustainable. Take UK fashion retailer Pretty Little Thing, which was selling a dress on its website for just €0.09 ($0.11) last year. Fast fashion is a business model that creates a sense of urgency to encourage impulse buying. This, in turn, fuels garment production. If population growth continues as predicted, some estimates suggest the global fashion industry could go from selling 62 million tons a year in 2017 to 102 million tons by 2030. As brands drive new trends by rotating their stocks of cheap clothes, shoppers are likely to buy more items they wear less frequently, creating a spiral to the bottom. Across much of the EU, household spending on clothing dropped between 1996 and 2012, though the number of garments EU citizens buy has risen by 40% over the past decades. To date, the biggest markets for the sale of clothes are in China, the US and the EU. But with increasing economic development and population growth in Africa, India and South America, the demand and taste for a fast fashion lifestyle is expected to grow.

I could buy eco-friendly clothes

True. And some designers are going all out to be environmentally friendly, but such products are not within everyone's budget. High street brands have also responded to environmental concerns by launching various sustainability lines. H&M says clothes in its ‘Conscious' collection, for example, are made with at least 50% sustainably sourced materials. But vague and undefined words like "conscious," "ethical" and "sustainable" have led to accusations of "greenwashing," meaning brands convey a false impression of being environmentally sound while continuing bad practices. This was made clear in a study by retail analyst Edited which showed that between 2017 and 2019 fashion brands in the US and UK were describing new clothes as "eco," "vegan" and "conscious" at record levels. In fact, the word ‘sustainable' increased by 125%. Yet, at the same time, these products made up just 3% of all the items available online.

What am I supposed to do about it?

We'll come to that, but first, let's talk about legislation. To clean up the textile industry, laws need to be passed by the biggest polluters such as China and the US which was the world's biggest fashion market until 2019. The election of President Joe Biden in 2020 brought a new tone to US politics as he rejoined the Paris Climate Agreement and signaled a commitment to force more transparency within supply chains. Exactly what that might mean for the country's fashion industry remains to be seen. For its part, the EU has adopted a Circular Economy Action Plan, which sets out targets to boost recycling and reduce landfill waste. Goals include an obligation for Member States to collect textile waste separately by 2025. So, I'm off the hook then? No. Responsibility also rests with the consumer. Competition among the biggest fashion brands is so tough that environmental improvement will be slow if we continue to buy polluting materials. That said, shunning fast fashion is already becoming a trend in its own right. Options such as upcycling materials, buying vintage or mending broken items are increasingly snatching the limelight. According to one 2020 study, the online thrift boom that emerged during the COVID-19 pandemic, could lead secondhand clothing sales to outgrow fast fashion by 2030. Bur for the tides to really turn, it will take a concerted effort on many fronts. If we can achieve that, the clothes we wear could cease to be just the latest fashion, but also become part of the climate change solution.

Source: DW

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