The Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) has called upon Prime Minister, Mr. Narendra Modi, for announcement of a special Package for growth of the Manmade Fibre Textiles sector, in view of the recurrence of the covid-19 pandemic and severe impact of the second wave on the MMF textile segment. Mr. Dhiraj Raichand Shah, Chairman, SRTEPC, observed that 2019-20 and 2020- 21 have been very challenging for the manmade fibre textiles segment due to the COVID-19 pandemic. Textile activities as well as exports have been severely impacted during last two years. The estimated exports of Manmade fibre textiles during 2020-21 show a decline of – 19% as compared to 2019-20. Exports of all the four segments of Manmade fibre textiles have witnessed decline, such as fibre - 28%, yarn - 15%, fabrics - 18% and made-ups -23%, he informed. Mr. Shah indicated that though the latest DGCI&S data shows improvement in exports this is mainly because of very low base that was witnessed in the previous year. However, the ground situation in textiles export is alarming since outbreak of covid – 19 pandemic, he added. In view of the above scenario, SRTEPC Chairman has appeals to Prime Minister on behalf of the entire MMF textile fraternity to announce a special Covid-19 pandemic relief package. The SRTEPC Chief also appealed to the Minister of Finance, Minister of Commerce & Industry and Minister of Textiles for the Special Package requesting to consider favourable orders on the following measures: 1) Release all the pending dues of the exporters under Drawback, MEIS, IGST, ROSL, RoSCTL, TUFS on an urgent basis. 2) Grant moratorium for repayment of principal and interest for at least one year 3) Special Export incentive of 3% on fibre & yarn, 4% on fabric, 5% on made-ups for at least 6 months or till the impact of coronavirus subsides and global markets stabilise. 4) Allow option to restructure loans for one year without any additional charges/ penal interest etc. by Banks. 5) RBI to relax NPA norms for 6 months, so that no default will be eligible for being termed as an NPA account. 6) Provide at least 35% to 40% of the workers’ salary payments for a period of 12 months to protect the MSMEs reeling under the severe impact of COVID-19. 7) Extend ECGC support to address the cancelled and deferred orders. 8) Include entire MMF textile value chain viz., fibres, yarns, fabrics, made-ups, etc under RoDTEP Scheme & declare RoDTEP rates immediately with a minimum rate of 7%. Also factor in the MEIS benefits within the RoDTEP as objective of the MEIS was provide relief to exporters to offset infrastructural inefficiencies and associated costs. 9) MMF textile segment is highly capital intensive and important Segment for the growth of Indian textile industry. Therefore, to sustain investment and encourage new ones, it is requested to extend the EPCG Scheme for the next 5 years. 10) Rectify the Inverted Duty Structure prevailing in the MMF textile segment by introducing a uniform 5% GST rate for entire value chain in the MMF textiles segment. 11) Continue the Interest Equalization Scheme (IES) benefit for exports by covering the entire MMF textile value chain viz., fibres, yarns, fabrics, made-ups, etc. & enhance the IES to 5%. Further it is requested to extend 3% interest subvention on working capital. Mr. Shah pointed out that the above-mentioned measures are very important and urgent to help sustain the MMF textiles segment which has been in an extremely bad shape because of the second wave of covid-19 pandemic. If the above-mentioned points are favourably considered by the Government there will certainly be positive results both in production as well as in exports of Manmade fibre textiles, Mr. Shah assured.
Source: Tecoya Trend
Union Minister of Commerce & Industry, Railways and Consumer Affairs, Food & Public Distribution, Shri Piyush Goyal today said that we will soon have the soft launch of the first phase of the National Single window system. The digital platform will allow investors to identify and apply for various pre-operations approvals required for commencing a business in India. There will be 17 Ministries/Departments and 14 states onboard in the first phase which is likely to be launched soon, the Minister said during the review meeting of Single window system held today.MoS, Commerce and Industry, Shri Som Prakash also attended the meeting. Shri Goyal expressed the hope that it will be a seamless interface where all the facilities from land purchasing to all the information needed to businesses and industrialists will be available. He said that the “Single window” would be a genuine one, acting as a onestop solution to all the problems or requirements of the investors. This would provide end-to-end facilitation, support, including pre-investment advisory, information related to land banks and facilitating clearances at Central and State levels, he added. It will facilitate the investors to know the approvals required to establish a particular business and let them apply for those approvals to commence business, see the status of those approvals as well as provide/seek clarifications regarding the same- all in one platform. Shri Goyal also emphasized on the security and the authentication of the critical data used in this platform. He said all security measures should be in place to safeguard the critical data. He also suggested for third party auditing of the platform before its launch. The Minister appreciated all the Ministries/Departments and states for showing enthusiasm, interest and open-mindedness in speedily working on developing the project, despite Covid-19 hurdles.“It is because of your exemplary contribution, cooperation and hard work that such a huge exercise has reached at an advance stage now”, he said. Shri Goyal said that learning from the past experiences we should go on improving it in the future. He hoped that its success will be a real tribute to Dr Guruprasad Mahapatra,Secretary DPIIT who recently left for his heavenly abode. The participants in the meeting gave status report on their preparedness on being on board of the portal. They were told to register in the portal, try out various use cases and identify areas for improvement.
Source: PIB
Announcing a ‘green tariff mechanism’ towards this end on Tuesday, Union power minister RK Singh said the necessary guidelines would be issued shortly. Currently, in most parts of the country, discoms supply power to industries from a common pool created out of purchases that include thermal and hydel power too, besides RE Industrial units and businesses across the country will soon be able to meet their entire power requirement via renewable energy (RE) sources, a move that could boost their goodwill image and help reduce their carbon footprint. Announcing a ‘green tariff mechanism’ towards this end on Tuesday, Union power minister RK Singh said the necessary guidelines would be issued shortly. Currently, in most parts of the country, discoms supply power to industries from a common pool created out of purchases that include thermal and hydel power too, besides RE. “The green tariff will the weighted average of the cost of procurement of green energy, which should be slightly lower than the overall energy prices,” Singh said. However, experts pointed out that green tariffs could vary from state to state, and for discoms which had contracted substantial quantum of renewable energy in the earlier years — when solar and wind power tariffs were significantly higher than the current rates — the average RE power purchase cost could even be higher than purchase cost of conventional sources of energy. Similar provisions for green tariffs are already in place in Karnataka since FY12. Recently, Maharashtra became the latest state to allow green tariffs for consumers willing to meet their power requirement through RE sources. The Maharashtra power regulator, through its March order, allowed discoms in the state to levy `0.66/unit green tariff over and above their usual power tariffs from interested consumers. Corporate India is increasingly trying to reduce their carbon footprint and many corporate consumers already receive RE power through the ‘open access’ mechanism. The upcoming guidelines are seen to support the industries which are either not eligible to avail open access or do not have the necessary resources and expertise. “If the industry wants to tie up with a developer for green power supply, then the open access applications for such systems will have to be approved within 15 days,” Singh said, adding that “now such applications take six months or even a year to get approved”. A provision for a separate green tariff is also seen to reduce the hesitation of discoms in going for power purchase from RE sources, as this mechanism will not impact general tariffs. In order to manage the infirm nature of RE power, discoms have to make alternative arrangements to procure balancing electricity for stabilising the grid. The cost of balancing renewables has been estimated to be in the range of `1.10/unit by Central Electricity Authority. The minister was addressing the media at a virtual curtain raiser press conference on “India’s role as global champion for the energy transition theme of the UN high level dialogue on energy 2021”. As FE has recently reported, Singh said that the government will put green hydrogen consumption obligations on fertiliser producers and petroleum refiners. “We are also coming up with bids for green hydrogen,” Singh stated, adding that “parties will set up greenfield solar, wind or solar-wind hybrid projects and the product I want is green hydrogen, and whoever agrees to supply green hydrogen at the least price, will get the order”. Solar and wind plants can produce green hydrogen through electrolysis, a process wherein the electricity generated is put in water to create hydrogen and oxygen.
Source: Financial Express
The investor-friendly policies of the Yogi Adityanath government are attracting a large number of industrialists from diverse sectors to invest in the state and textile sector is no exception. According to the Textile department, big players in the Indian textile industry have invested Rs 8,715.16 crore in the last four years to set up 66 factories in the state. Of these textile factories, 12 have already been set up while construction of 18 others is underway and it will provide employment to 5,25,087 people. As many as 18 factories are expected to start production this year itself. Besides, the construction of 17 more textile factories is also expected to begin this year. These factories will start production next year. The officials further pointed out that a total sum of Rs 645 crore was spent for setting up the 12 textile factories that have become operational. As many as 2,870 people have also got employment in the 12 units. “UP was synonymous with fear, perennial insecurity and risks for these industrialists four years ago. They were afraid of investing due to rampant crime and red tape. However, things changed rapidly after Yogi Adityanath took over as the CM in 2017. He succeeded in changing this common perception about UP through his massive crackdown against organised crime. In the changed environment, investors in India and abroad consider UP as one of the safest places for investment and are investing as never before in different sectors including in textile, infrastructure, food processing, electronic manufacturing, real estate, and power and manufacturing sectors. The textile sector has emerged as the most preferred sector for investors,” the officials said. Meanwhile, with the setting up of these factories, Kanpur is emerging fast as a major textile hub. Kanpur Plastipack Limited has invested Rs 200 crore in Kanpur (Rural) while RP Poly Packs has invested Rs 150 crore in Rania for the production of polybags. GLKK Industries has invested Rs 25 crore in Ruma Kanpur for fabric production while Srishti Industries has set up a knitting factory in Kanpur (Rural). Furthermore, Gadgets Apparel and Anilikha Fabric have established garment and hosiery cloth factories respectively in Kanpur. Similarly, Rajlakshmi Cotton Mills has set up a garment factory in Noida at the cost of Rs 50 crore apart from one in Kanpur while Kalyani Innerwear has established an inner garment factory in Ghaziabad. TT Limited has established a garment factory in Amroha at the cost of Rs 50 crore whereas Sunwin Textile has set up a lace fabrics factory in Badaun. There are 28 more investment proposals related to setting up of textile factories, whose investors are yet to apply for land. Officials from the department are in touch with these investors and the land deal is likely to be finalised.
Source: Daily Pioneer
The online textile industry has turned the crisis into an opportunity. As retail sales were off bounds due to the lockdown, the online market has flourished. Did anyone ever think even in the wildest of dreams that one day the coronavirus will arrive in India, that too all the way from China, and change the existing things to such a great extent that it will impact our daily life? Everything has changed in the post-COVID19 era – our work from the office is now work from home, our travel and tourism are reducing to new lows, our meetings are now mostly virtual, events have gone online. But there is a silver lining as well: many people, sectors, and industries have turned the crisis into an opportunity. One such sector is the textile industry. The Indian textiles and apparel industry contributed 2.3% to India’s GDP, 13% to industrial production, and 12% to export earnings (as of March 22, 2021). Moreover, exports of readymade garments (of all textiles) were worth USD 1.04 billion (as of November 2020). Many textile industry experts have predicted that the trend of increased sales in the online textile industry will continue to persist in future as well.
Turning crisis into opportunity
The crisis situation has provided a big opportunity for the online textile industry. The sales in the online textile industry witnessed a jump in various cities and states of India during the lockdown. It goes without saying that cloth is one of the basic needs of mankind. It is nothing less than any essential commodity, and that’s why even during the lockdown online textile industry witnessed a boom in sales. The lockdown failed to leave any negative impact on the online textile industry because of its operations in the virtual space leaving no room for human or physical contact to further spread coronavirus in the country. The online textile industry even registered an increasing trend in sales due to no dependency on the offline industry, for example, wholesalers, semi-wholesalers, retailers, and middle persons.
The next unicorns in new-age India
With such an increasing and upward trend being witnessed in the online textile industry, retailers with a presence on the internet have a big possibility to become the unicorns (that is, a company with a value of over USD 1 billion) of new-age India. When the lockdown was imposed, it was the summer season, and people did their summer-related purchases online as retail shops were not allowed to open. With all these developments in place, businesses of the online retail industry also witnessed a spike in revenue sheets. The online textile industry has all the valid reasons to give birth to new unicorns in India. During the lockdown, shopping was taking place through the online route and most of the customers were happy with the online experience. Right from choosing items to trying them, even the return policies created a win-win situation for shoppers on the internet as customers felt very comfortable purchasing their stuff online. It has been predicted by many textile industry experts that the trend of increased sales in the online textile industry will continue to persist in the future as well. And, hence, the birth of online retailer unicorns is imminent.
Textile e-retailers: The game-changers of 2021
In 2021, e-retailers will prove to be a big game-changer by playing a pivotal role in the recovery of the Indian economy. When the economy shows green shoots, the future of the online textile industry looks promising in the wake of increased domestic consumption after a lockdown in addition to export demand playing an important role. Even the government has made it clear that the textile sector is one of the key focus areas of new policies being framed to achieve the target of becoming a USD 5 trillion economy. The government in its budget 2021-22 proposed a scheme for setting up mega textile parks to make the textile industry in India globally competitive. The initiative is also aimed to attract large investments and boost employment generation through the creation of world-class infrastructure. Seven mega textile parks will be established over three years as part of the scheme. They will have integrated facilities and a quick turnaround time for minimising transportation losses, eyeing big-ticket investments in the sector. Now, with such a massive level of production in the textile sector due to the unprecedented boost by the government, eretailers are going to be the biggest beneficiary of these developments. Online shoppers have already tasted the convenience, trust, and comfort of shopping on the internet and will continue to enjoy and avail benefits in the future as well. And, e-retailers will emerge as the biggest winners in this entire success journey of the online textile industry. The budget proposed a scheme to set up seven mega textile parks to enable the textile industry to become globally competitive and attract large investments. Role of technology and trends Technology can play the role of big brother in reviving, rejuvenating, and reinvigorating the Indian textile industry. Undoubtedly, tech support is vital to any sector but when it comes to textile, it becomes even more important due to the integral role of machines right from sourcing raw material to giving final shape to the products that eventually consumers are going to get. Further, our textile industry is expected to witness some new trends in the future – increased demand for natural fibers and shifting focus towards non-woven fabrics to name a few.
The Indian textiles industry’s potential
The Indian textiles industry has immense potential to register an indelible mark while contributing to the growth and success story of the nation, but the sector needs more support from the government in the form of policy initiatives and a crackdown on redtapism involved in availing schemes meant for the textile industry. The government has decided to rationalise the duties on raw material inputs. But more export promotion policies are required for the textiles sector, like in the past when the government allowed 100% FDI in the sector under the automatic route. The Indian textile industry is entering into a no-holds-barred phase where the sky is the limit, provided it gets robust support from the government in terms of policies, promotions, and incentives so that the domain can move up the ladder and chart its own course in the right direction. The Indian textile industry is entering into a no-holds-barred phase where the sky is the limit, provided it gets a robust support from the government.
Source: DQ India
“The proposal could be placed before the Cabinet for clearance very soon,” said a source. The government will offer guarantee on the security receipts (SRs) issued by the National Asset Reconstruction Company (NARCL) while acquiring bad loans from lenders. The finance ministry could soon seek Cabinet approval for a plan to offer sovereign guarantee to the proposed bad bank, which is estimated to cost the government Rs 30,600 crore over five years. “The proposal could be placed before the Cabinet for clearance very soon,” said a source. The government will offer guarantee on the security receipts (SRs) issued by the National Asset Reconstruction Company (NARCL) while acquiring bad loans from lenders. The IBA, which has pegged the cost of government guarantee at `30,600 crore, is working out the details and NARCL would be operationalised soon. A top banker had last week told FE that the cost to the exchequer won’t exceed this amount, as the prospects of recovery from some of the bad loans look promising. Although the government backed the setting up of NARCL, it wouldn’t infuse capital into it; instead, participating banks would put in the equity. Nevertheless, it is set to give guarantee on the SRs, which will make the resolution process more viable and attractive. Earlier, financial services secretary Debasish Panda had said banks would have the option to transfer several large stressed assets (of at least Rs 500 crore each) worth Rs 2.25 lakh crore to NARCL initially. The IBA is also working out an “exit strategy” for those accounts that remain unresolved even after five years. ARCL is expected to acquire stressed assets at net book value by offering 15% of it upfront (in cash), and the rest (85%) in SRs. Once the bad loan is resolved, realisation for the relevant bank would be in sync with its SR interest in that asset. Of the 101 non-performing assets (NPAs) initially reviewed, banks have zeroed in on 22 accounts amounting to roughly Rs 89,000 crore for transfer to NARCL in the first phase.
Source: Financial Express
B K Birla group company Kesoram Industries Ltd has put its rayon factory under suspension of work in West Bengal's Hooghly district. The company management blamed the slump in demand due to COVID-19 led disruptions for the suspension of work till further notice B K Birla group company Kesoram Industries Ltd has put its rayon factory under suspension of work in West Bengal's Hooghly district. The company management blamed the slump in demand due to COVID-19 led disruptions for the suspension of work till further notice. B K Birla group company NSE 2.03 % on Tuesday has put its rayon factory under suspension of work in West Bengal's Hooghly district. The company management blamed the slump in demand due to COVID-19 led disruptions for the suspension of work till further notice. "We had to issue a suspension of work as there is no demand for the product due to COVID-19 situation. If we continue our loss will triple from current losses," a senior company official told . The company employs 2,500 people in the loss making rayon plant. The finished products are used in textile and textile decoratives and the pandemic has led to sharp slump in demand for textiles. Rayon division contribution is negligible for the company that is struggling to bring down its Rs 1,900 crore debt to a sustainable level. Kesoram Rayon was established in 1959. The division manufactures quality viscose rayon filament yarn (VFY), cellulose transparent paper and has a chemical manufacturing unit.
Source: Economic Times
The Budget 2021 had brought in a provision which mandated that non-filers of income tax returns for past two fiscal years would be subjected to higher tax deducted at source (TDS) and tax collected at source (TCS) rate if such tax deduction was Rs 50,000 or more in each of those two years. The income tax department has developed a new utility to help TDS deductors and NSE 0.39 % collectors identify the 'specified persons' on whom higher rate of taxes will be levied from July 1. The Budget 2021 had brought in a provision which mandated that nonfilers of income tax returns for past two fiscal years would be subjected to higher tax deducted at source (TDS) and tax collected at source (TCS) rate if such tax deduction was Rs 50,000 or more in each of those two years. The Central Board of Direct Taxes (CBDT) issued a circular on Monday on implementation of Sections 206AB and 206CCA with respect to higher tax deduction/collection for certain non-filers. "New functionality issued for compliance checks for sec 206AB & 206CCA to ease compliance burden of tax deductors/collectors," the I-T department had tweeted. The CBDT said that since the TDS deductor or the TCS collector would be required to do a due diligence on whether the deductee or collectee is a 'specified person', this could lead to extra compliance burden on them. The new functionality -- 'Compliance check for sections 206AB and 206CCA' -- would ease this compliance burden, the CBDT said. Through the functionality, the TDS deductor or TCS collector can feed PAN of the deductee or collectee on the functionality and get to know whether the deductee or collectee is a 'specified person'. 2018-19 and 2019-20 as the two relevant previous years. The list contains names of taxpayers who did not file return of income for both assessment years 2019-20 and 2020- 21 and have aggregate TDS and TCS of Rs 50,000 or more in each of these two previous years.
Source: Economic Times
The annual budget is a reflection of the government’s priorities. Alternatively, it is an opportunity to materialise economic recovery, growth, and inclusivity through fiscal management. On June 11, the current government announced its fourth budget with a total outlay of Rs8.487 trillion and gross revenue receipts (tax and non-tax) of Rs7.909 trillion. The budget is presumed to be growth-oriented, as the focus has been shifted from stabilisation to a growth-centric phase where some incentives have been offered to various sectors. Among these, support to industrialists, exporters, stocks traders, and construction and services sectors through reduction or exemption in duties or taxes are the obvious ones. Likewise, social protection to marginalised groups, loan facilities to lowincome households, fiscal stimulus through 61% increase in the Public Sector Development Programme (PSDP) have all been setting the stage for continuity in growth. These incentives notwithstanding, the budget entail a deficit of Rs3.99 trillion which may further aggravate Pakistan’s debt situation. In other words, we have to understand the dynamics of the growth-debt trade-off in order to ensure sustainability in growth without adding further to the country’s debt-burden. In 2020-21, amid the Covid-19 pandemic and the consequent global slowdown, Pakistan surpassed growth projections, with GDP growth of 3.96% against a target of 2.1%. The GDP growth is based on 2.77, 3.57 and 4.43% growth in agriculture, industrial and services sectors, respectively. Thanks to the growth in large-scale manufacturing, and wholesale and retail trade combined with a surge in remittances which made this progress possible. Growth with stabilisation in terms of improved fiscal deficit and current account is encouraging but needs sustainability. In other words, economic growth must spur investment as periods of higher economic growth in Pakistan have usually been associated with higher final consumption, especially household consumption, leaving little space for capital accumulation. To ensure continuity, the government set a growth target at 4.8% for 2021-22, with a claim to put the economy on path of a growth rate of 6-7% in the next two to three years. In order to make it possible, the government has approved around Rs2.135 trillion developmental budgets, including Rs900 billion federal PSDP while Rs1.235 trillion for provincial PSDP, which is around 61% higher than that of previous year. The priorities in this regard are water and food security, CPEC-related projects, climate change, social sector, projects under public-private partnership (PPP), allocations for marginalised areas, etc. In addition to increase in PSDP, the budget offers a variety of incentives to the private sector. To support industrial sector, the government aims to give away Rs119 billion to industries and individuals. These include Rs42 billion relief in customs duty (CD), Rs19 billion in sales tax (ST) and federal excise duty (FED), and Rs58 billion in income tax (IT). For instance, withdrawing FED on industrial units in the erstwhile Fata/Pata, reduction in FED from 17% to 16% on telecommunication, withdrawal of FED and value-added tax (VAT) and reduction in ST on small cars are some of the relief measures. Likewise, reduction in CD and additional customs duty (ACD) on 328 tariff lines related to raw materials, chemicals and intermediate goods for the chemical, engineering and leather industry would boost exports in these sectors by lowering the cost of raw materials. Similar would be the effect of reduction or exemption in CD, ACD and RD on imports of 584 tariff lines including fabric in the value chain of the textile sector. With respect to trading, the reduction in capital gains tax on stocks from 15% to 12.5%, removal of withholding taxes on banking transactions, stock exchange transactions, margin financing, air travel services, debit and credit card-based international transactions, and mineral explorations would encourage economic activities in the country. Further, support to SMEs through the allocation of Rs12 billion, and focus on low-income households through Rs500,000 interest-free business loans, Rs200,000 interest-free loans for tractors and machinery, and Rs2 million worth of low-interest loan for house building would have beneficial effects on the country’s economic growth. As far as the cost side of this fiscal stimulus is concerned; the budget entails a gross deficit of Rs3.99 trillion. Of the gross revenues of Rs7.909 trillion, the center will have a net amount of Rs4.497 trillion after transferring Rs3.142 trillion to provinces under National Finance Commission (NFC). As is proposed in the budget, the deficit will be plugged by Rs1.2 trillion in external financing and Rs2.4 trillion in domestic financing, with the remainder from privatisation proceeds. A combined allocation of Rs4.43 trillion for defense and debt-servicing implies that the entire PSDP and around 41% of the current expenditure will be financed through borrowings. Given proceeds from privatisation of around Rs252 billion and a forecast surplus of Rs570 billion from the provinces, a gross of Rs3.168 trillion will be added to total debt of the country which constitute roughly 6% of GDP. At present, the debt-toGDP ratio is approximated to be around 87% in June 2021 while the limit fixed in Fiscal Responsibility and Debt Limitation Act of 2005 is 60% of GDP. These statistics suggest that we have already crossed the optimal limit of debt to GDP ratio. In other words, we are pursuing expansionary fiscal policy amid a huge burden of debt, including both the domestic and external components of debt. What needs to be done amid this growth-debt trade-off? I would like to posit that a twopronged strategy should be pursued. First, economic growth must be pursued as growth is essential for sustainability of debt. A simple arithmetic shows that if our economy grew by 7% for 15 years, our prospective GDP would be around $700 billion at current exchange rate in 2035. This translates into an increase in revenues of around $100 billion if we impose a simple flat tax rate of 20% on the growth component of GDP. However, this increment in revenues can only be capitalised on if we contain fiscal deficit during the same period. In fact, deficit financing is a short-run phenomenon which is worth if it generates economic growth and if it does not, then it is a debt-increasing instrument. Thus, as a second strategy, we have to keep fiscal deficit in a manageable limit, which can be assessed by comparing economic growth with the cost of borrowing. It is shown in a recent knowledge brief of Pakistan Institute of Development Economics (PIDE) that as long as the cost of borrowing is less than economic growth, the debt-burden will not rise. Thus, we can ensure the sustainability of the current debt by higher economic growth and reduction in reliance on future borrowing.
Source: Tribune
The Ministry of Commerce expects the Regional Comprehensive Economic Partnership (RCEP) agreement – signed by Cambodia and 14 other countries in November – to enter into force on January 1. Ratification of the trade deal is expected to open up more new markets as well as upgrade the Kingdom’s value chains and integrate them within the region and beyond. A virtual intergovernmental meeting was held on June 21 to present a draft law authorising the RCEP’s ratification to a National Assembly committee. The world’s largest regional trade deal was initiated in November 2012 at the 21st ASEAN Summit in Phnom Penh, but it was not endorsed until November 15, due to the complexity of negotiations. Leaders of the 10 ASEAN states, Australia, China, Japan, New Zealand and South Korea witnessed the signing of the agreement via video link following the conclusion of the 4th RCEP Summit on the same day. The chief purpose of the deal was to promote trade between the 15 signatory Asia-Pacific countries. Speaking at June 21’s meeting, Minister of Commerce Pan Sorasak stressed that, with its numerous merits, the RCEP is “absolutely necessary” for the economic integration of Cambodia into the region and the world. “The RCEP will establish a modern, comprehensive and high-quality partnership framework as well as mutual economic benefits that will facilitate the expansion of supply chains, trade and investment in the region,” he said, adding that he expects the deal to be ratified on January 1. This, the minister said, would provide the world “a symbol of support for a multilateral free trade system based on the rule of law, and in particular, its rapid contribution to the economic recovery of Cambodia and the region from the Covid-19 crisis”. The RCEP has a combined gross domestic product (GDP) to the tune of $26.2 trillion, or 30 per cent of global GDP, and engages 2.2 billion people, or 30 per cent of the world’s population, he said citing 2019 data. Hong Vanak, director of International Economics at the Royal Academy of Cambodia, told The Post on June 22 that ratification of the RCEP would drive the Cambodian market to another echelon. Before signing the agreement, the Cambodian government carefully weighed potential products that could meet the perceived needs of the signatories, he said, suggesting that the Kingdom must now ramp up the volume and quality of production and raise its level of diversification. “Although the RCEP agreement links us to more trading partners and provides special conditions on the export and import of goods, what’s more important is – can our products match other countries’ needs? This is an important detail that must be seriously pondered over,” he said. He suggested that everyone should aspire to push for a prompt ratification of the RCEP, given the economic potential of Cambodian exports, such as finished textile products and agricultural goods. Cambodia Chamber of Commerce vice-president Lim Heng stressed that trade deals, whether bilateral or multilateral, are a net positive for the national economy, creating opportunities for exports and improving access to investments. “Because the RCEP is a regional agreement with major markets in large countries, Cambodia must strive to expand its production with a focus on high quality to bring more revenue into the national economy,” he said. Last year, the Kingdom exported $17.21537 billion worth of goods, an increase of 16.72 per cent over 2019, the commerce ministry reported. With RCEP negotiations and additional research as a base, the Jakarta-based Economic Research Institute for ASEAN and East Asia (ERIA) found that the RCEP would boost the Kingdom’s gross domestic product (GDP) an additional two per cent, increase exports by an extra 7.3 per cent and raise investment by an added 23.4 per cent.
Source: Phnom Penh Post
World Textile Services Congress (WTSC) 2021 to be held in Frankfurt, Germany on November 30-December 1, will gather industry leaders from around the globe to explore the market outlook, post-COVID recovery and the intersection between sustainability, circular economy and technology innovation. It will be co-located with Texcare International event. The conference will also explore research and consumer insights on hygiene and related opportunities for reusable textiles, the organisers International Textile Services Alliance (ITSA) said on the official website. The topics will be addressed by external experts and industry leaders in interactive formats and informal networking opportunities will provide a rich exchange of ideas and connections. Attendance at the event will be exclusive to linen, uniform and facility services CEOs, executives and owners and sponsoring supplier partners’ CEOs and senior executives. The event will be hosted by German Textile Cleaning Association (DTV), European Textile Services Association (ETSA), Belgian Federation of Textile Care (FBT), Laundry Association of Australia (LAA), TRSA North America and Textile Services Association (TSA) UK.
Source: Fibre 2 Fashion
The Lenzing Group is proud to announce the extension of its revolutionary fiber identification technology to TENCEL™ branded lyocell and modal fibers, solidifying its commitment to providing supply chain transparency along the entire textile production process. The successful launch and feedback from the industry on the system used for LENZING™ ECOVERO™ branded fibers, as well as the growing number of wood-based cellulosic manufacturers, encouraged Lenzing to further expand the technology for the TENCEL brand to ensure traceability of its products.
Pioneering technology to increase visibility for brands and consumers
Lenzing’s fiber identification technology provides physical identification of fiber origin at different stages of textile products such as the fabric and garment level. This enables full traceability of the fiber, protects from counterfeiting and provides assurance to brands and retailers that their products are made from TENCEL branded lyocell and modal fibers. It also guarantees that the fibers are produced in state-of-the-art-production facilities that meet high standards for resource efficiency and environmental and social responsibility. This allows brands and consumers to have full visibility of how and where their products have been made. Fiber identification will be a vital part of the fabric certification process within Lenzing E-Branding Service. As of November 2021, all fabrics will be tested for fiber identification, enhancing the security of Lenzing’s online services and testing facilities and increasing transparency and security between value chain partners. By the first half of 2022, additional services for brands and retailers will be integrated onto Lenzing E-branding Service.
Enhancing sustainability in the supply chain
The textile industry has always been aiming to tackle environmental issues such as pollution and carbon emissions. Increasingly, brands are embracing sustainability, but the take up has been slow, especially for manufacturers and suppliers. In order to enhance the industry’s ability to manage its value chain more sustainably, both brands and consumers must be fully aware of the nature and magnitude of the issues within the process. Tracking and traceability of raw materials in the final product can ensure raw materials originate from responsible resources, comply with industry standards and thereby prevent usage of materials from controversial sources. In the long run, this will help improve the overall sustainability of the industry thanks to informed decisionmaking by all parties. “As the awareness of sustainability grows, we see the need to continuously improve transparency and traceability of our products, so as to make sure our brand credentials are well protected and trusted by industry stakeholders and consumers,” said Florian Heubrandner, vice president, Global Textiles Business at Lenzing AG. “By extending the TENCEL brand’s effort on supply chain transparency with our fiber identification technology, we hope to enable the textile industry to become more sustainable, as well as ensure our brand partners have the credibility to communicate their sustainability efforts and combat greenwashing.”
Protecting brand credentials with eco-friendly assurance
As a result of the push for sustainability in the fashion industry, more brands are looking to commit to sourcing cellulosic fibers from eco-conscious producers with stringent wood sourcing policies and industry-recognized production guidelines in terms of ecological and social impact. Using Lenzing’s fiber identification technology and being able to track fibers throughout the process, provides consumers with an assurance that the clothing and home textile products they buy are made of sustainable TENCEL branded fibers.
Fostering the future of raw material transparency through fiber identification technology
As brands and consumers become more aware of the importance of informed purchase decisions, it is becoming more imperative to offer proofs around the production process. The combination of both physical and digital traceability allows brands to easily verify the materials used in their products – this will become a key driver in the textile and fashion industry. Through Lenzing’s partnership with TextileGenesis™ to launch a blockchainenabled supply chain traceability platform, in addition to its innovative E-branding Service, Lenzing has been at the forefront of digital traceability and has been creating an unprecedented level of traceability. “Over the next few years, branded fiber products will employ fiber identification technology on a broader level, and, in time, it will be possible to real time track and trace materials through the supply chains. We hope that our success can provide the industry with an example of how innovation empowers sustainability and help to shift perception towards proven sustainable solutions,” comments Heubrandner.
Source: Textile World
