The interaction assumes significance as the commerce ministry has fixed an export target of USD 400 billion for the current fiscal. The outbound shipments of the country are recording healthy growth rates. The country's exports grew by 47.19 per cent to USD 35.17 billion in July on account of healthy growth in the outbound shipments of petroleum, engineering, and gems and jewellery. Prime Minister Narendra Modi will interact with heads of Indian Missions abroad along with stakeholders of trade and commerce on Friday with a view to expand export potential and increase the country's share in global trade, an official statement said. It added that exports have a huge employment generation potential, especially for MSMEs and labourintensive sectors, with a cascading effect on the manufacturing sector and the overall economy. "The purpose of the interaction is to provide a focussed thrust to leverage and expand India's export and its share in global trade. The interaction aims to energise all stakeholders towards expanding our export potential and utilizing the local capabilities to fulfil the global demand," the statement issued on Thursday said. The commerce minister and the external affairs minister will also be present during the interaction. It will also witness participation of secretaries of more than 20 departments, state government officials, members of Export Promotion Councils and Chambers of Commerce, it added. The interaction assumes significance as the commerce ministry has fixed an export target of USD 400 billion for the current fiscal. The outbound shipments of the country are recording healthy growth rates. The country's exports grew by 47.19 per cent to USD 35.17 billion in July on account of healthy growth in the outbound shipments of petroleum, engineering, and gems and jewellery. Imports during the month also rose by 59.38 per cent to USD 46.40 billion, leaving a trade deficit of USD 11.23 billion in July. Exports during April-July 2021-22 rose by 73.86 per cent to USD 130.56 billion, as against USD 75.10 billion in the same period last year.
Source: Economic Times
Union Minister of Textiles Piyush Goyal will inaugurate the Weavers Service Centre (WSC) at Raigarh on Kotra Road bypass virtually on August 7. Darshna Vikram Jardosh, the Union Minister of States for Textiles, will also be present. The event is being held as part of the National Handloom Day. August 7 was chosen as the National Handloom Day to commemorate the Swadeshi Movement, which was launched on this day in 1905. It is observed annually in honour of handloom weavers and to provide impetus to the handloom industry, an official communication said on Thursday.
Source: Daily Pioneer
The Micro, Small and Medium Enterprises (MSME) sector consists of private players and investments in this sector are made by the entrepreneurs themselves. The Ministry of MSME does not establish micro, small and medium enterprises in the country. Promotion and development of enterprises is a State subject. However, the Central Government supplements the efforts of the State/UT Governments through various schemes, programmes and policy initiatives for promotion, development and enhancing the competitiveness of MSMEs in the country. MSMEs can avail the benefits of schemes being implemented by the Government such as Prime Minister's Employment Generation Programme (PMEGP), Rural Employment Generation Programme (REGP), Micro Units Development & Refinance Agency (MUDRA), Credit Linked Capital Subsidy for Technology Upgradation Scheme (CLCSTUS), Scheme for Khadi, Village and Coir Industries, International Cooperation Scheme, Procurement and Marketing Support Scheme, Scheme for Credit Guarantee Fund for Micro and Small Enterprises, etc. This information was given by Union Minister for Micro, Small and Medium Enterprises, Shri Narayan Rane in a written reply in Lok Sabha today.
Source: PIB
As per Udyog Aadhaar Portal (since inception October 2015 to June 2020), the number of Micro, Small and Medium Enterprises (MSMEs) registered in All India was 102,32,468. On 1st July, 2020, after adoption of new definition of MSMEs, a new registration portal ‘Udyam Registration’ has been launched by M/o MSME and so far 41,37,443 classified MSMEs are registered on the portal in All India (from 01.07.2020 to 31.07.2021). As MSMEs are present in both formal and informal sector, data regarding temporary or permanent closure/suffered of the units is not maintained by the Government of India in Ministry of Micro, Small and Medium Enterprises (MSME). Studies have been conducted by National Small Industries Corporation (NSIC) and Khadi and Village Industries Commission (KVIC) to assess the impact of COVID-19 Pandemic on MSMEs including units set up under Prime Minister’s Employment Generation Programme (PMEGP). A. The main findings of the online study conducted by NSIC to understand the operational capabilities and difficulties faced by the beneficiaries of NSIC schemes amid Covid-19 pandemic are as follows: -
i. 91% MSMEs were found to be functional.
ii. Five most critical problems faced by MSMEs were identified as Liquidity (55% units), Fresh Orders (17% units), Labour (9% units), Logistics (12% units) and availability of Raw Material (8% units.).
B. The findings of the study conducted by KVIC are as under:-
i. 88% of the beneficiaries of PMEGP scheme reported that they were negatively affected due to Covid-19 while the remaining 12% stated that they were benefitted during Covid-19 Pandemic.
ii. Among the 88% who were affected, 57% stated that their units were shut down for some time during this period, while 30% reported drop in production and revenue. iii. Among the 12% who had benefitted, 65% stated that their business increased as they had units in retail and health sector and around 25% stated that their units benefitted as they were dealing with essential commodities or services.
iv. On the question of regular payment of salaries to the employees, around 46.60% respondents stated that they had paid the salaries in full, 42.54% reported to have partially paid and 10.86% reported to have not paid salary for some time during this period.
v. Majority of the beneficiaries expressed the need for additional financial support, relaxation of waiver of interest and marketing support for their products.
(b): The Ministry of Micro, Small and Medium Enterprises (MSMEs) implement various other schemes for the growth and development of MSME sector in the country. These include Prime Minister Employment generation Programme (PMEGP), Micro and Small Enterprises-Cluster Development Programme (MSE-CDP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS) and SC/ST Hub.
Post Covid-19, Government has taken a number of initiatives under Aatma Nirbhar Bharat Abhiyan to support the MSME Sector in the country especially in Covid-19 Pandemic. Some of them are:
All new and existing Micro and Small Enterprises engaged in manufacturing or services including trading activity are eligible to be covered under Credit Guarantee Scheme (CGS) implemented by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). CGTMSE has approved 4,35,520 guarantees for an amount of Rs. 30,168.57 crore during 2018-19, 8,46,650 guarantees for an amount of Rs. 45,851.22 crore during 2019-20, 8,35,592 guarantees for an amount of Rs. 36,899.39 crore during 2020-21. Under Interest Subvention Scheme for Incremental Credit to MSMEs, number of beneficiaries and amount are 13,62,355 and Rs. 541.51 crore during 2019-20 and 9,08,860and Rs. 431.07 crore during 2020-21 respectively. As part of the Aatma Nirbhar Bharat Abhiyaan, under the Emergency Credit Line Guarantee Scheme (ECLGS), around 1.09 crore MSME borrowers have been provided with guarantee support amounting to Rs. 1.65 lakh crore as on 02.07.2021. An online Portal “Champions” has been launched on 01.06.2020 by Hon’ble Prime Minister. This covers many aspects of e-governance including grievance redressal and handholding of MSMEs. Through the portal, total 35,361 grievances have been redressed upto 12.07.2021. As per the information received from Central Statistics Office , Ministry of Statistics & PI, Share of MSMEs in Gross Value Added (GVA) to All India GVA at current prices (2011- 12) for the years 2017-18, 2018-19 and 2019-20 was 32.7%, 33.5% and 33.1% respectively. This information was given by Union Minister for Micro, Small and Medium Enterprises, Shri Narayan Rane in a written reply in Lok Sabha today.
Source: PIB
Emergency Credit Line Guarantee Scheme (ECLGS) was announced as part of the Atma Nirbhar Bharat Package in 2020 with the objective to help businesses including MSMEs to meet their operational liabilities and resume businesses in view of the distress caused by the COVID-19 crisis, by providing Member Lending Institutions (MLIs), 100 percent guarantee against any losses suffered by them due to non-repayment of the ECLGS funding by borrowers. The eligibility criteria for availing credit under ECLGS are: · For ECLGS 1.0; MSME units, Business Enterprises, Mudra Borrower and individual loans for business purpose having loan outstanding upto Rs.50 crore and days past due upto 60 days as on 29.02.2020. · For ECLGS 2.0; Borrower belonging to 26 stressed sectors identified by Kamath Committee & Healthcare sector having loan outstanding above Rs.50 crore and upto Rs.500 crore and days past due upto 60 days as on 29.02.2020. For ECLGS 3.0; Borrower belonging to Hospitality, Travel & Tourism, Leisure & Sporting and Civil Aviation sector having days past due upto 60 days as on 29.02.2020. · For ECLGS 4.0; Existing Hospitals/Nursing Homes/Clinics/Medical Colleges/units engaged in manufacturing of liquid oxygen, oxygen cylinders etc. having credit facility with a lending institution with days past due upto 90 days as on March 31, 2021. ·The overall ceiling initially announced for ECLGS was Rs 3 lakh crore which was subsequently enhanced to Rs 4.5 lakh crore. However, ECLGS being a demand driven scheme, sanctions/disbursements are made by lending institutions based on assessment of borrower’s requirement and their eligibility. ECLGS is under the operational domain of Ministry of Finance, Department of Financial Services (DFS). As informed by DFS, as on 2.07.2021 an amount of Rs.2.73 lakh crore have been sanctioned under the scheme of which an amount of Rs.2.14 lakh crore has been disbursed. Total 1.14 crore borrowers have been issued guarantee under the scheme. In order to ensure easy and softer repayment terms on the credit extended to the MSME sector, Government has capped the interest rate under ECLGS scheme at 9.25 percent for Banks and Financial Institutions and 14 percent for Non-Banking Financial Institutions. This scheme also offers a one year moratorium on payment of principle component. In addition to this, the other scheme announced under Atma Nirbhar Bharat package i.e. ‘Credit Guarantee Scheme for Subordinate Debt’ also has moratorium clause of 7 years on the payment of principle component with the overall all repayment period of 10 years. Ministry MSME is implementing various schemes and programmes to provide access to technology upgradation. These schemes include Technology Upgradation Component of Credit Linked Capital Subsidy Scheme and Technology Upgradation Scheme (CLCS-TUS), Micro and Small Enterprise – Cluster Development Programme (MSE-CDP), MSME Technology Centres (MSME-TCs), Technology Centre Systems Programme (TCSP) etc. These schemes are implemented across the country including the state of Maharashtra. This information was given by Union Minister for Micro, Small and Medium Enterprises, Shri Narayan Rane in a written reply in Lok Sabha today.
Source: PIB
Bajaj said the government does not believe in retrospective amendments and the provision was being undone. “This was the sore point with the investor community,” Bajaj said, adding that a host of companies were at the cusp of deciding their investments and this will spur their decision. The government seeks to bury the hatchet and send out a strong signal to investors by moving to withdraw retrospective tax demands, revenue secretary Tarun Bajaj told ET. On Thursday, the government introduced a Bill in the Lok Sabha seeking to withdraw tax demands made using a controversial 2012 retrospective legislation to tax the indirect transfer of Indian assets and apply it prospectively. Bajaj said the government does not believe in retrospective amendments and the provision was being undone. “This was the sore point with the investor community,” Bajaj said, adding that a host of companies were at the cusp of deciding their investments and this will spur their decision. The bold step, Bajaj said, sends out a strong message to overseas investors. Investors have frequently raised the retrospective taxation issue. At an investor meet in the US on April 18, 2015, a participant had asked former finance minister, the late Arun Jaitley: “What would you say to an investor who says, ‘I can trust you, Mr Jaitley, I can trust this government, but as long as that law remains on the books, how can I be sure that in seven years, or in eight years, or in 10 years, or 12, it is not misused by another government that does not share your intentions?” The government was thinking of ways to address the problem — without compromising the sovereign's right to tax — after it lost the highprofile Vodafone and NSE 0.81 % cases in international arbitration, though it has appealed both the verdicts. Bajaj said since this was being done under the country's legal framework and not under arbitration, it established India’s sovereign right to tax.
Source: Economic Times
Uzbekistan and India discussed issues of support for small business and private entrepreneurship, Trend reports referring to Uzbek media. The mentioned issue was discussed by the head of the women's organization of the Federation of Indian Chambers of Commerce and Industry (FICCI FLO) Harjinder Talwar during a meeting held at the Embassy of Uzbekistan in India. During the meeting, the parties discussed the issues of support for small business and private entrepreneurship between Uzbekistan and India, comprehensive assistance in the development of this area, in particular, the further development of relations in the fields of healthcare, pharmaceuticals, information technology, light industry and textiles, agriculture and tourism were discussed. It was noted that Harjinder Talwar highly appreciated the large-scale reforms carried out in Uzbekistan for the development of entrepreneurship, as well as the favorable conditions created for foreign investors. Talwar expressed her intention to organize a visit of a delegation of member companies of the Federation to Uzbekistan to get acquainted with the reforms in this area and study specific opportunities for the implementation of joint investment projects. The Federation of Chambers of Commerce and Industry (FICCI), founded in 1927, is one of the largest and oldest business organizations in India, acting as a "bridge" between public and private entrepreneurs. The Federation has established close partnerships with various regional chambers of commerce in virtually all states of the country, and it brings together more than 250,000 business companies of various levels (multinational, medium and small). FLO is the women's wing of the Federation, representing the interests of women entrepreneurs.
Source: En.trend
In a written reply to the Rajya Sabha, Minister of State for Textiles Darshana Jardosh said due to the COVID-19 pandemic and nationwide lockdown imposed by the various states, the production activities in all NTC Ltd mill units were put on hold from March 25, 2020. The government on Thursday said that no mill under National Textile Corporation (NTC) Ltd was closed down in the last two years. In a written reply to the Rajya Sabha, Minister of State for Textiles Darshana Jardosh said due to the COVID-19 pandemic and nationwide lockdown imposed by the various states, the production activities in all NTC Ltd mill units were put on hold from March 25, 2020. After lifting of the lockdown and as per availability of raw material, NTC restored operation of 14 mill units from January 2021 onwards. She said the second wave of COVID-19 pandemic again led to the closure of all NTC mill operations in April 2021. Now, NTC has restored operations in some of its mills in July 2021 as per raw material availability, and the employees were paid salary regularly as per their status by NTC out of its cash reserve, the minister said. "Under NTC Ltd, a Central Public Sector Enterprise under Ministry of Textiles, no mill was closed down during the last 2 years," she added. In a separate reply, she said under SITP (Scheme for Integrated Textile Park), 66 parks were sanctioned. "24 have been completed as per scheme guidelines, 32 are operational and at various stages of implementation and 10 parks have been cancelled," she said.
Bihar Min Shahnawaz invites Telangana investors to set up industries in the state
Bihar Minister for Industries Shahnawaz Hussain on Thursday called upon the investors and the entrepreneurs from Telangana to invest and set up industries in Bihar due to its much improved investor friendly and business environment. Addressing at the interactive session with the Federation of Telangana Chambers of Commerce and Industry (FTCCI) here on ‘Business & Investment opportunities in Bihar’, Shahnawaz told the investors that the state government will provide approval to their proposals in 7-workings days. While discussing about the opportunities and the locational advantages in setting up industries in Bihar, he extolled the entrepreneurs to come, visit and invest in Bihar with the Punch Line of ‘EK BAAR TO AAYE BIHAR ME’, for availing of various benefits including demographic dividend and together take the country ahead. The state of Bihar has got a new identity as a fast-moving state towards industrialization, the minister said. To promote the textile sector in Bihar, he mentioned that a majority of workers who have returned to the state were from the textile sector and are wanting a more decentralized industrial set up which can enable them to ‘work from home’. He explained the strategic location of Bihar in eastern India for both the domestic and export markets. He also explained that most districts, today, were easily connected via nearby airports in Bihar and/or adjoining states. The minister also emphasized on the stable and good governance in the state. In a presentation by E&Y Knowledge Partner for Investment Promotion and Facilitation Support, Department of Industries, Government of Bihar, it has been explained that the state has implemented the system of online filing of Common Application Form (CAF) to make the single window system effective. He said that over 53 per cent of the population in Bihar is below 25 years of age and hence Bihar is the most suitable for labor intensive industry. The draft policies for textiles were also discussed in the presentation. The session was followed by the queries from the investors from different industries, wherein the investors were keen on knowing the business conditions in the Bihar and knowing more about the opportunities in the state to invest. All the queries in the session were well responded to by the minister. FTCCI President K Bhasker Reddy said there are similarities between Telangana and Bihar in industrial development strategy - both the states have identified the same sectors as thrust sectors for rapid industrial progress such as food processing, textiles, pharma, information technology. The participants in the event were from leading textiles, food processing, pharmaceuticals, and information technology, leather and apparels industries.
Source: Uni India
The civic body found that customers were entering the textile store through a backdoor and making purchases after closing the front door. The Thiruvananthapuram corporation cancelled the license of Pothys textiles in the city on August 4, Wednesday, as it was allegedly found breaching COVID-19 protocol in the state. On August 3, the police and health department of the corporation found that people were entering an outlet through a backdoor staff entry and making purchases after closing the front door. Textile stores were allowed to open only on Monday, Wednesday and Friday. However On August 4, after a revised government order, all shops are allowed to open six days a week. The action was taken against the textile store before the revised order. The notice from the corporation said that the action against the textile store was taken based on Section 447 of Kerala Municipality Act, the Kerala Epidemic Disease Ordinance and orders from disaster management authorities. This is not the first time that the corporation is taking action against Pothys for breaching regulations. Earlier, action was taken against Pothys hypermarket that functions in the ground floor of the Pothys shopping complex. Textiles are on the first, second and third floor. In July 2020, the corporation cancelled the license of shopping malls Pothys and Ramachandrans for allowing crowds, following which scores of their employees contracted the coronavirus. Though Pothys provide disposable hand gloves and ensure a temperature check before a customer enters the store, there were many complaints over physical distancing not being maintained inside the store. Few months ago, Pothys hypermarket introduced a huge discount for vegetables, which made people rush to the store. After a video of the crowd surfaced on social media, they were warned by authorities, following which the discount was suspended. Pothys is a multi-storey shopping complex situated in Ayurveda college junction of Thiruvananthapuram, that has a hypermarket, textile store and homeware sections. It is one of the busiest shopping areas in the city.
Source: The News Minute
Vietnam’s garment and footwear sector is expected to miss full-year turnover targets by around US$6bn as the country grapples with rising Covid infections and vaccine constraints which have forced factory shutdowns. Covid risks breaking textile and garment supply chains in Vietnam, according to Vu Duc Giang, the chairman of Vietnam Textile & Apparel Association (VITAS), as factories shutdown and workers migrate home to avoid the epidemic. The entire textile and garment industry is currently only operating at 10-15% of its capacity, he said. The Delta variant is sweeping across Southeast Asia with the region’s death toll now has nearly overtaken Latin America as the world’s worst, according to a report published by Bloomberg. Last month, the American Apparel & Footwear Association (AAFA) called on US President Joe Biden to ramp up the distribution of excess US vaccines to Vietnam and other key partner countries. The body also called on the Vietnamese Prime Minister to take several key emergency actions to help control the spread of Covid-19. Specifically, it called for the government of Vietnam to prioritise the distribution of vaccines to Vietnam’s apparel, footwear, and travel goods industries and urges collaboration with AFFA trade association counterparts – VITAS and LEFASO – to quickly develop and implement flexible and effective protocols to make sure these industries can safely produce and transport goods. VITAS voiced concerns of labour shortages across Vietnam as factory workers return to home villages from cities to avoid catching Covid. According to the body, 62% of export turnover is generated by factories in the southern region. But currently, only Ho Chi Minh City deploys vaccinations for workers of textile enterprises in industrial zones. “The remaining 18 provinces out of the 19 localities have not injected or injected very little,” it says. Consequently, there is a fear around the risk of order loss due to supply chain disruptions with poor circulation of goods and raw materials. Giang also raised concerns over the government’s strategy around social distancing in factories, with fears also growing over the loss of orders to competitor sourcing markets. Vietnam recently overtook Bangladesh as the second-largest exporter of clothing and textiles in the world. It now boasts a 6.4% market share “It is impossible to predict the situation at the end of the year. With the assumption the situation is under control from August to restore production, it is expected textile and garment export turnover for the whole year will only reach about $32-33bn, much lower than the target of $39bn,” Vu Duc Giang said.
Source: Just-Style
Around 30-35 per cent of textile and garment factories in Vietnam have closed due to the COVID-19 pandemic, according to the Vietnam Textile and Apparel Association (VITAS). VITAS chairman Vu Duc Giang recently told an online meeting that a number of these factories, especially small and medium enterprises, will have to close for a long duration. Businesses, he said, do not have enough funds to pay for three-on-site working arrangements to support employees to return to work. This is a huge challenge to stabilising Vietnamese textile and garment enterprises, he said. In addition, the vaccination rate of Vietnam's textile and garment industry is still quite low, particularly in key production areas in the southwestern and southeastern provinces, he said. VITAS and three other industry associations sent a memorandum to the prime minister proposing speeding up vaccinations or supporting businesses to buy vaccines to give to workers of export industries. Up to 90 percent of supply chains in the sector are currently broken. VITAS data shows the export value of the textile and garment industry reached $18.7 billion in the first six months of the year, while the target for the whole year is $39 billion. With the pressure of a seasonal manufacturing industry in which timeliness is imperative, failing to deliver on time would cause customers to cancel orders which would impact the industry in the medium term, Giang added.
Source: Fibre 2 Fashion
It’s estimated that the fashion industry is responsible for 10 per cent of global carbon emissions – which is more than international aviation and shipping combined. It’s a sector that needs to be addressed, and one such way it can be is through the Circular Economy Bill that Cabinet approved earlier this year. But how does the Bill plan to tackle the impact of the fashion industry? And what will it change about how we shop for our clothes and how we dispose of them?
The Waste Action Plan
The Bill is set to implement many actions from the Government’s Waste Action Plan, which has a specific section dedicated to textiles. A core element of the plan is going to be the creation of a Textiles Industry Action Group to explore options relating to textile circularity. It is understood that this action group will be formed by the end of 2021 and that it will include representatives from the voluntary/charity sector. A spokesperson from the Department of Environment, Climate and Communications told The Green News that focus of the Bill is “firstly on education and awareness – working with the public, retailers, and producers.” “We also need to improve data on textile waste; to regulate for how clothes banks operate more effectively; and to promote better and more sustainable design,” they added. https://twitter.com/CRNIreland/status/1413427040880001026
Separate Collection
The plan also states that textile waste will be banned from the general waste bin, landfill and incineration. This is in accordance with the EU Waste Framework Directive (WFD) which requires member states to set up separate collection for textiles from January 2021. So what does this mean in practice? Well, that’s still being worked out. Currently the EPA estimates that 63,000 tonnes of textiles are going into our general waste bins annually. That’s roughly three times the amount that are donated to charity shops each year. Of this 12,000 tonnes of garments are sold for reuse (about 11 million clothing items) with the remaining 11,000 unsuitable for sale and sold to commercial textile recyclers. Due to a lack of regulation, it’s difficult to get an estimate on what percentage of this 11,000 tonnes are being exported for resale but it is understood that it is the majority of this figure. The Community Reuse Network Ireland (CRNI), with support from the EPA, are currently working on a project to develop a circular textile system for Ireland. As part of the project, due for completion in October 2022, they are testing 3 different collection methods to see which works best to reduce the number of textiles entering general waste. The project also aims to gain a better understanding of the quality of the textiles that are going to be recovered through different collection streams and what can be done to reuse more textiles and manage them locally. So are we on track to achieve separate collection by 2025? “The Department could probably argue that we have separate collection at the moment,” according to Claire Downey, Executive at CRNI. “There are textile banks quite well distributed throughout the country at the moment. You can bring your textiles to charity shops and there are a few other random kilo sale shops and that kind of thing. What we are trying to see is how can we make it as easy as possible,” she said.
Second hand exports
As we discussed in a previous piece, the second-hand export trade in its current state is contributing to pressures on the waste management infrastructure of importing countries in Africa. The Waste Action Plan doesn’t specifically outline how issues within this sector will be addressed, although it does state that in developing separate collection framework proposals account will be taken of “the potential global impacts of the international trade in used textiles and in consultation with existing collection operators.” We reached out to the Department to gain some clarity on this point. A spokesperson told The Green News, “ The department is aware of issues surrounding the flow of secondhand textiles, particularly the concerns about the damage such material flows can cause for developing countries. That’s why data is now being gathered on textile waste flows, to give us a better understanding of what is happening to these materials.” The spokesperson went on to say that as part of its work, the Textiles Working Group will look at existing regulations to see what changes may be needed. The Bill does however, state that a review of regulations on textile collection banks will be undertaken to ensure compatibility with sustainable development goals, which should have an impact on the second-hand clothing trade. Currently there’s no guidelines or permissions required apart from the local landowner when it comes to clothing collection bins. It’s something Claire Downey refers to as a point of contention in the sector. “One thing that the charity retail sector is working on is to get some kind of obligation to declare who manages or who is the beneficiary of the donations,” she told The Green News. She highlights that while most collection banks will have a charity name associated with them, there are only 5 charities that have collection banks and channel their textiles direct to retail stores. The rest are commercial recyclers who donate only 5 or 10 per cent of their profits to the charity they are affiliated with.
Overconsumption
Ms Downey is keen to stress that while there are issues to be tackled in the second-hand export sector, the problem needs to be tackled at its root. “The very first thing we need to deal with in all of our countries is overconsumption. That is the real problem here. We are exporting because we don’t deal with our own textiles and we consume far too much and the textiles we consume are very low quality. So why are we generating all this stuff in the first place?” The Waste Action Plan also opens the door to looking at an Extended Producer Responsibility Scheme down the line, something CRNI have pushed for at a national and EU level. Ms Downey also points to a number of regulations and policy initiatives that can be implemented at an EU level, including applying eco-design regulations to textiles. This would mean that manufacturers would be obligated to make sure products are repairable. The Bill also states that reuse targets will be mandatory, something Ms Downey points to as a positive development as it means it should have some form of support for the secondhand industry behind it that will help build the industry. “We need more options for people, more places you can get second hand. What if you had department stores that had second hand racks alongside new?”, Ms Downey said. She also notes that more support needs to be given to those already in the industry through more sorting centres, supports to make second-hand online businesses more viable, quality marks and reduced rates. So are we on the right track and moving fast enough? In Ms Downey’s view the pace of change has picked up in the last year or six months. “But is it fast enough? Probably not but it’s starting to move properly. I think we all need to buy into this, everyone needs to buy into this change.”
Source: Green News
In the past 20 years, Bangladesh's GDP per capita increased 500%, two-and-half times that of Pakistan Bangladesh, the country whose infrastructure was ravaged by the Pakistani occupation force in 1971, has stridden far ahead of Pakistan, the country it obtained independence from, in the last 50 years, observed IFFRAS, an international think tank headquartered in Toronto, Canada. Praising Bangladesh for its resilience in dealing with the economic challenges during the pandemic, International Forum for Rights and Security (IFFRAS) remarked that the global economy is mired in its deepest recession since World War 2, and multilateralism and the international order are confronted with unprecedented challenges, which has created considerable obstacles to South Asian development in the economic and other fields. In its article, titled ‘Bangladesh and Pakistan – Formerly one Nation, today a World Apart’, published on July 30, IFFRAS (International Forum for Rights and Security) described how Bangladesh became a "miracle story" and Pakistan a "disaster tale". Bangladesh's growth rate was way above Pakistan, even before the pandemic; in 2018-19 it was 7.8% compared to Pakistan's 5.8%, said IFFRAS in the article. Bangladesh and Pakistan are a world apart today because they perceive their national interests very differently, it also mentioned. Bangladesh sees its future in human development and economic growth. Goalposts are set at increasing exports, reducing unemployment, improving health, reducing dependence on loans and aid, and further extending microcredit, it said. For Pakistan, according to IFFRAS, human development comes a distant second. "The bulk of national energies remain focused upon check-mating India and nurturing extra state actors..." Bangladesh's foreign exchange reserves in May 2021 hit a record $45.10 billion amid the Covid-19 pandemic, which is more than double compared to Pakistan's $17.1 billion in June 2021. The real marvel lies in the fact that even in FY 2020, when economies around the world contracted as a result of pandemic induced lockdowns, Bangladesh managed a 5.24% growth, IFFRAS noted. In 2021, Bangladesh's GDP per capita had grown by 9% rising to $2,227. Pakistan's per capita income, meanwhile, is $1,543, it said. In 1971, Pakistan was 70% richer than Bangladesh; today, Bangladesh is 45% richer than Pakistan, the global think tank mentioned. With macro-economic stability as its cornerstone, Bangladesh's economy has increased by 271 times over 50 years, IFFRAS said. Bangladesh's successful journey is a good example and in just two decades, Bangladesh has overtaken Pakistan on key economic indicators. Over the past 20 years, Bangladesh's GDP per capita increased 500%, two-and-half times that of Pakistan, said IFFRAS. There are thousands of garment factories in Bangladesh, a country that does not grow cotton. But by importing cotton worth a couple of hundred million dollars, Bangladeshi factories are exporting it in the form of readymade garments worth $35 billion, it said. On the contrary, Pakistan -- despite being a cotton-growing country -- has failed to increase its exports of garments and textile products beyond $10 billion, said IFFRAS, adding that even worse, Pakistan is now importing cotton. In fact, a lack of innovation and commitment on the part of the authorities in Pakistan because of its feudal and tribal structures, it is unable to make use of its agricultural resources, particularly cotton, to increase its exports of textiles and textile made-ups, the article also mentioned.
Source: Dhaka Tribune
Sustainability, Profitability, and Transparency: The Future for the UK Fashion and Textile Supply Chain In collaboration with the UK Fashion & Textile Association (UKFT), Tech Data, and the Future Fashion Factory, IBM is working to design, prototype and pilot a new technology platform based on its own technologies to drive sustainability, profitability and transparency in the UK fashion and textile supply chain. Aside from the four collaborators, Next, H&M, N Brown, New Look and Laxtons will partake in the initial pilot. “Working together, we are pleased to support the development of a new supply chain platform tool for the apparel and textiles sector, to facilitate the gathering of robust sustainability data and provide clear visibility of environmental and ethical impacts to empower better decisions,” said Joanne Poynor, Head of Sustainable Development at Next. “We are delighted to be taking part in the UKFT SSCO Project as part of New Look’s core strategic commitment to integrate sustainable practices across the business. We recognise that collaborating on this project will help remove complexity, increase transparency and help develop sustainable solutions with more reassuring visibility of the people and the environments impacted throughout the value chain. We anticipate that by bringing new technologies and global networks together, UKFT will accelerate change and allow the provenance of the products we sell to open up from origin to end user,” added Sue Fairley, Head of Sourcing, Sustainability and Quality at New Look.
The Global Fashion Industry
Commenting on the fashion industry, IBM highlights that it is “one of the biggest global polluters and one of the greatest producers of waste, while issues around unsafe workplaces, labour abuses and low wages continue.” “There's debate whether it's the third, fourth or fifth most polluting industry, but it's generally well known that about 4% of global carbon emissions and about 20% of water pollution comes from the fashion supply chain. So obviously it’s massive. On the US side, we dispose of about 70 pounds, which is about 30 to 32 kilogrammes clothes every year. So it's a growing impact that has dramatically started impacting the world,” said Sara Swenson, Global Senior Manager Sustainability at Avery Dennison in the August issue of Supply Chain Digital. But one of the major obstacles preventing organisations from implementing more sustainable and responsible practices, and preventing consumers to be more sustainable is the lack of transparency and visibility across different stages in the supply chain. “Data is siloed, systems tend to operate in isolation and parties have had little to no incentive to share data with the rest of the ecosystem due to the significant manual effort,” added IBM.
The Project
Awarded £1.4mn in funding by Innovate UK - part of UK Research and Innovation, on behalf of the Industrial Strategy Challenge Fund (ISCF) Manufacturing Made Smarter Challenge -the new technology platform will combine emerging technologies (blockchain, AI, and sensors) to digitise the key processes of the supply chain. In doing so the project aims to create a shared system of data that different parties can trust and easily act on. “For example, it will be possible to gain a much better understanding of where and how each garment’s fabric was processed and finished, by whom and in what conditions. It will be easier to spot potential disruptions before they have a chance to affect delivery. It will also be possible to better monitor production processes and flows resulting in a real chance to reduce waste and optimise stock,” highlights IBM. This level of insight will allow real, measurable, and auditable actions across the entire supply chain, and enable increased understanding of and compliance with the UN’s Sustainable Development Goals (SDG), and improve operational efficiency. “In essence, the platform will be designed to help make a complex and disjointed global supply chain more sustainable, resilient and able to cope with unforeseen disruptions," states IBM. “We are delighted to offer our experience in supply chain management and technology platforms, our expertise in new technologies such as IoT, artificial intelligence, and data analytics, and our deep relationships with retail ecosystem partners to this exciting project. Our team is looking forward to working with the consortium to develop and deliver a sustainable, transparent and efficient solution for the UK fashion and textiles industry,” said Neil Cornish, Business Manager, Ecosystems Programme UK, Tech Data.
Source: Manufacturing Global
