Uniform rate of 12% for entire value chain of MMF textiles sector will reduce the compliance burden of the industry players;
The Government has notified uniform goods and services tax rate at 12 % on MMF, MMF yarn, MMF fabrics and apparel that has addressed the inverted tax structure in the MMF textile value chain. The changed rates will come into effect from 1st January, 2022. This will help the MMF segment grow and emerge as a big job provider in the country. The Textiles & Apparel (T&A) industry was having long pending (first under sales tax then, under VAT and finally under GST regime) demand for removal of inverted tax structure on manmade fibre (MMF) value chain. The GST on MMF, MMF Yarn and MMF Fabrics were 18%, 12% and 5% respectively. The taxation of inputs at higher rates than finished products created build up of credits and cascading costs. It further led to accumulation of taxes at various stages of MMF value chain and blockage of crucial working capital for the industry. Though there is a provision in GST law to claim the unutilised Input Tax Credit (ITC) as a refund, but there were other complications and resulted more compliance burden. The inverted tax structure caused effective increase in rate of taxation of the sector. The world textiles trade has been moving towards MMF but India was not able to take advantage of the trend as its MMF segment was throttled by inverted tax regime.
This 12% uniform GST rate is likely to contribute positively to the growth of the sector in the following ways:
i) The uniform rate of 12% for entire value chain of MMF textiles sector will be benefiting and save lot of working capital. It will reduce the compliance burden of the industry players. This is a welcome step by the Government with no inversion.
ii) The uniformity of GST rates will be helpful to resolve the ITC residues that accumulated due to the inverted tax structure earlier.
iii) The uniformity in the GST rates shall 12% GST on job work related to dying and printing services will benefit the industry to absorb and recover unutilised ITC.
iv)The significant portion of MMF products (output) is expected to be exported, it will lend a better scope for encashing the untilised ITC. Also since tax on input will get refunded, on output (export) which will be zero rated, it would not add to cost and make exports competitive.
v) Uniform 12% GST will help the industry having huge portion of piled up opening ITC by enabling them to encash the same progressively
Differential rates for garment creates problem in compliance of tax regime. MMF garment cannot be identified easily and cannot be taxed differently, hence there is need for uniform rate. Uniform rate makes it simple and since there is so much high potential of value addition in garment segment that the increase in rate is likely to be absorbed in value addition. It will provide clarity to the industry and settle, once and for all, the issues caused by inverted tax structure.
Source: PIB
The revamp of the Goods and Services Tax (GST) rates applicable to the textile industry to correct a tax anomaly from 1 January will save working capital for businesses, reduce compliance burden and resolve input tax credit related hassles, the textiles ministry said on Monday. The GST Council had in September decided to correct the tax anomaly called inverted duty structure—a situation where tax outgo on raw materials is more than that on the finished products. Accordingly, the government last week announced the new tax rates. Mint reported on 19 November that 18 items including, woven fabrics of cotton, silk and wool, coir mats, matting and floor covering, apparel and clothing accessories of sale value upto Rs. 1,000 and footwear priced upto Rs.1,000 a pair were moved from the 5% slab to 12% slab. The textiles ministry stated that the new rate-- uniform GST rate of 12 %--on manmade (synthetic) fibre, manmade fibre yarn, manmade fabrics and apparel has addressed the inverted tax structure in the manmade textile value chain. The rates prior to the change takes effect on manmade fibre, manmade fibre yarn and manmade fibre fabrics are 18%, 12% and 5% respectively. The taxation of inputs at higher rates than finished products created build-up of credits and cascading costs. It further led to accumulation of taxes at various stages of manmade fibre value chain and blockage of crucial working capital for the industry, textile ministry said. The changed rates will help this segment grow and emerge as a big job provider in the country, the ministry said. The tax anomaly had in the past led to a situation where businesses were not able to use the tax credits fully to settle their final output tax liability, leading to accumulation of unused tax credits. “Though there is a provision in GST law to claim the unutilised input tax credit (ITC) as a refund, but there were other complications and resulted more compliance burden. The inverted tax structure caused effective increase in rate of taxation of the sector. The world textiles trade has been moving towards manmade fibre but India was not able to take advantage of the trend as its manmade fibre segment was throttled by inverted tax regime," the textile ministry explained. This 12% uniform GST rate is likely to contribute positively to the growth of the sector, it said. The uniform rate of 12% for entire value chain of manmade fibre textiles sector will be benefiting and save lot of working capital. It will reduce the compliance burden of the industry players. Uniformity of GST rates will be helpful to resolve the input tax credit residues that accumulated due to the inverted tax structure earlier, the ministry said.
Source: Live Mint
The Powerloom Development and Export Promotion Council (PDEXCIL) has urged the State government not to increase Goods and Services Tax (GST) rates for any textile products as it would further affect the industry. In a letter to Chief Minister M.K. Stalin, its chairman M.A. Ramasamy said PDEXCIL catered to the needs of power loom industry that comprised synthetic fabrics and manmade fibre (MMF). The GST council had proposed to correct inverted duty structure from the present 5% to 12% for fabrics and apparels. The letter said increasing the rate would discourage the whole value chain and it would affect a lot of factors associated with it. The letter said earlier there was no VAT on fabrics and 5% tax was imposed after GST was introduced. Increase in yarn price, fuel price and packaging materials had caused hardship to the manufacturers and entrepreneurs who were facing loss. “This has resulted in cut in wages, reduction in quality of products and fall in consumption,” the letter said and added that further increase in rates would worsen the situation in survival of small fabric and garment manufacturers. The textile industry was providing jobs to 17 million workers in the country which was the second largest employer in the country. Increase in tax would affect millions of workers as manufactures would be pushed to go for job cuts. Most of the power loom units functioned on credit basis and further increase in rates would affect the weavers. The letter said any hike in rates would discourage producers to diversify their products and enter the field. Hence, considering the above factors, the Centre and State government and GST council should review their decision and find an alternative solution to resolve the issue of inverted duty structure without any increase in taxes, the letter urged.
Source: The Hindu
The exports are growing at a healthy rate and are expected to cross USD 400 billion by the end of the current fiscal. The country's exports rose 18.8 per cent to USD 20.01 billion during the three week period of this month (November 1-21), due to healthy growth in sectors such as petroleum products, engineering goods, chemicals and gems and jewellery, according to the preliminary data of the commerce ministry. Imports during the period increased 45.34 per cent to USD 35.11 billion as against USD 24.15 billion during the corresponding period last year, the data showed. The exports are growing at a healthy rate and are expected to cross USD 400 billion by the end of the current fiscal. In October, the outbound shipments jumped 43 per cent to USD 35.65 billion, while the trade deficit widened to USD 19.73 billion during the month. In October, the outbound shipments jumped 43 per cent to USD 35.65 billion, while the trade deficit widened to USD 19.73 billion during the month. Export sectors that are recording positive growth continuously include petroleum, coffee, engineering goods, cotton yarn/fabrics/made-ups, gems and jewellery, chemicals plastic and linoleum and marine products. Cumulatively exports during April-October 2021 stood at USD 233.54 billion, which is an increase of 55.13 per cent compared to the same period last year. During the same period, imports rose 78.16 per cent to USD 331.39 billion, leaving a trade deficit of USD 97.85 billion.
Source: Economic Times
US Trade Representative says priority is to iron out market-access restrictions India and the United States (US) are set to revive the Trade Policy Forum (TPF) on Tuesday after four years, in an attempt to bolster trade and investment flows between the two nations. US Trade Representative Katherine Tai, who is on a two-day visit to India, said she hoped to make progress in areas such as movements of goods and services between the two countries, and ironing out market access restrictions and high tariffs, and these would be taken up on priority with India. “I believe that a revived TPF can help our trade relationship keep pace with other important aspects of the US-India partnership … at USTR we hear very frequently from our stakeholders who are not shy on issues that will be familiar to those of you involved in moving goods and services between our two countries, market access restrictions, high tariffs, unpredictable regulatory requirements, restricted digital trade measures. These are issues where we intend to make progress and they will be on the top of my list while I’m here,” Tai said after meeting Commerce and Industry Minister Piyush Goyal. “I’m also looking forward to discussing how further collaboration on what we are calling worker-centric policies can benefit our trade relationship. President Biden and I are convinced that US trade policy requires a fundamental shift to ensure that our policies and actions focus on the impact that trade and trade agreements have on real working people,” she said. Established in 2005, the India-US TPF met last in October 2017. It was then replaced by negotiations between the two sides on a trade deal. With the Biden administration now insisting on resolving irritants first rather than going for a mini deal, the focus on the TPF has again emerged. “The trade relationship between our two countries is a top priority, both from President Biden and for me. That’s why it was important for me to come to India and relaunch the trade policy forum on my first trip to Asia,” she said. Goyal said the Trade Policy Forum was only the beginning of a new chapter in trade relations between the two nations and he hoped to revitalise the platform and resolve outstanding issues. “I hope our meetings will encourage business communities and investors on both sides to look at a greater degree of engagement,” Goyal said.
Source : Business Standard
From January 1, the businessmen into the job work of dyeing or printing of textile and textile products will have to pay 12% GST on their sales as compared to the current rate of 5%. And in case they provide job work to any person not registered under GST, then 18% tax will be applicable. On November 18, the ministry of finance had issued a notification in this regard. At the time it had also issued a notification for an increase in the GST rate on fabrics and garments from 5% to 12%. Enraged, businessmen have given a call to gherao the residence of Prime Minister Narendra Modi on November 25. Naveen Thaman, a tax professional, said, “In a move to stop refund of accumulated input tax credit (ITC) on account of GST being higher on inputs than finished goods, the GST council increased it on service of job work of dyeing or printing of textile and textile products from January 1. Earlier, all types of job work related to textile and its products attracted 5% GST. Whether it was dyeing of yarn and fabrics or printing of fabrics and garments, the taxpayers were entitled to a refund of accumulated ITC as inputs for these job works—like dyes, chemicals and packing material—had an 18% GST, while these job works attracted 5% GST. Therefore, an ITC of 13% was claimed back. Now, if these job works are performed for assessees registered under GST, then rate will be 12% else 18%.” Thaman said, “From January 1, these job workers will not be entitled for refund of accumulated ITC. However, there will be no change in GST for other job works, like washing, stitching and embroidery, and it will continue to be 5%. Though the GST council has taken these steps to keep rate of tax for one industry same and to discourage fake billing for taking refunds, the charges for dyeing and printing will go up, leading to an increase in rates of garments for consumers.” Industrialist Tarun Jain Bawa, who is national president of Bharatiya Arthik Party (BAP), said, “The decision to increase GST by 7% is a ploy to destroy small units that are already struggling. But we are not going to accept these cruel acts of the Centre and have decided that thousands of businessmen will gherao the residence of PM Narendra Modi in New Delhi on November 25.” Harish Kairpal, president of Ludhiana MSME Association, said, “We feel cheated and humiliated. We were not consulted by the Centre before going ahead with the decision to increase GST to 12% from 5% on our end products and raw materials. Moreover, the notification has come as a sudden shock as no one knew about it till now. We came to know about it through the Times of India. It is our request to the Centre not to go ahead with this hike.”
Source: Times of India
Prime Minister Narendra Modi will inaugurate the Vibrant Gujarat Global Summit 2022 in Gandhinagar on January 10, a senior official said on Monday. The three-day event will be organised on the theme of "From Aatmanirbhar Gujarat to Aatmanirbhar Bharat", he said. Additional Chief Secretary, Industry and Mines, Rajiv Gupta, told reporters here that the Global Trade Show, a round table on the international financial institutions, will also be organised, and a meeting of around 15 Russian governors will be held under the chairmanship of PM Modi on the inaugural day of the event. "Tenth Vibrant Gujarat will be inaugurated by Prime Minister Narendra Modi on January 10, 2022...Chief Minister (Bhupendra Patel) has decided to organise this Vibrant event under the leadership of the Prime Minister. The theme of the 10th VGGS is, 'From Aatmanirbhar Gujarat to Aatmanirbhar Bharat,'" Gupta told reporters. He said events during the upcoming VGGS will be organised around Central schemes like the 'Gati Shakti' Plan, 'Aatmanirbhar (selfreliant) Bharat', and Production Linked Incentive (PLI) schemes, etc. He said despite less time for the preparations, the upcoming summit will be as big, or rather bigger, than the vibrant summits held in the past. On January 11, events will be organised on the Centre's "Gati Shakti Plan' on how this scheme will benefit Gujarat in the areas of infrastructure and investment, Gupta said, adding that Central departments will participate in this event. On January 12, events on the topic of 'Make In India', with a focus on Production Linked Investment (PLI) schemes, will be held to discuss at least 13 schemes in different sectors which were announced by the Central government, Gupta added. Discussions will be held on how these schemes will help to strengthen the industrial development in Gujarat in the areas of electric vehicles, battery, hydrogen, battery storage, as well as pharmaceuticals, textiles, etc., he said. Technology will be the focus of the events on the third and concluding day of the VGGS, Gupta said. He said the topics on the maximum usage of technology such as blockchain and artificial intelligence; how they will help in employment generation and value addition will be discussed on the third day, before the concluding ceremony. A conference and roadshow focusing on the MSMEs will be organised during the trade fair on January 11 in which thousands of MSMEs are expected to participate, the ACS said. He said at least ten pre-Vibrant events, including a trade fair and international-level seminars and workshops on subjects such as textile, health, education, and export, will be held to discuss how Gujarat and the country will benefit from the Centre's policies towards a balanced industrial development. "These events will be organised from December 1 till January 9. Among the pre-Vibrant events, a few like those on start-ups and unicorn of Gujarat government's i-Create will be a one-of-its-kind event that was never held anywhere else in India," he said. National and international roadshows will also be organised in the run-up to the VGGS, Gupta said. "We will hold six roadshows across the country. The first roadshow will be held on November 25 in Delhi under the leadership of chief minister Patel. The second roadshow will be held in Mumbai on December 2. Other roadshows will be held in major cities such as Lucknow, Chennai, Bengaluru and Hyderabad, to be attended by different ministers and secretaries," Gupta added. He said 4-5 roadshows will also be organised abroad, in countries like the US, Germany, Netherlands, UK, France, Japan, and Middle East countries. The Gujarat chief minister is tentatively scheduled to visit Dubai, Abu Dhabi and other Middle East countries on December 8-9. The state chief secretary will visit the US for a roadshow, he said. "The MoU signing events will be held every Monday starting today, when MoUs attracting proposed investment of Rs 24,185 crore were signed," Gupta said. "There is a tradition of signing MoUs in every Vibrant Gujarat, and we have a strike rate of over 70 per cent. We have kept MoU in such a way that on the first day, around Rs 25,000-crore MoUs were signed in different sectors--chemical, fertilisers, pharma, manufacturing, life sciences etc. "The MoUs will be signed every Monday till the launch of the summit. All important and big MoUs, and the MoUs with the possibility of converting into a real project. We have informed 15-20 countries to partner through diplomatic channels, and many have been received and others are awaited," he said. The biennial summit was supposed to be held in January this year but was postponed due to the COVID-19 pandemic.
Source: The Week
Revenue Secretary Tarun Bajaj has said the government's tax collection kitty will surpass budget estimates this financial year on the back of good direct and indirect tax mop-up. The Centre could better its fiscal deficit at 6.6 per cent of GDP in this financial year on stronger-than-expected revenue buoyancy, even if the budgeted disinvestment target is not met, Fitch Ratings has said. The international rating agency had last week kept the sovereign rating unchanged at 'BBB-' with a negative outlook, and said that the risks to India's medium-term growth outlook are narrowing with rapid economic recovery from the pandemic and easing financial sector pressures. In an email interview with PTI, Fitch Ratings Director (Asia-Pacific Sovereigns) Jeremy Zook said the two key positive triggers that could lead to a revision of the outlook to stable are implementation of a credible medium-term fiscal strategy to lower debt burden and higher medium-term investment and growth rates without the creation of macroeconomic imbalances, such as from successful structural reform implementation and a healthier financial sector. "We forecast that the central government will achieve a deficit of 6.6 per cent of GDP in the current fiscal year, largely as a result of stronger-than-expected revenue buoyancy. Our forecasts assume that the government does fall short of its budget target for divestment," Zook said. In the 2021-22 (April-March) Budget presented on February 1, the government had pegged the fiscal deficit, or gap between the Centre's expenditure and revenue, at 6.8 per cent of GDP or Rs 15.06 lakh crore. At the end of September, which is six months in the financial year, the fiscal deficit touched 35 per cent of budget estimates. Revenue Secretary Tarun Bajaj has said the government's tax collection kitty will surpass budget estimates this financial year on the back of good direct and indirect tax mop-up. "After refunds also, we have touched almost Rs 6 lakh crore till October in direct taxes... It is looking good. Hopefully, we should exceed it. "Though we have given a lot of relief in indirect taxes in petrol, diesel and edible oil, also there are some sunsets that have come in customs duty where the total benefit would be about Rs 75,000-80,000 crore. But, still, I think we should exceed the budgeted estimates on both direct and indirect taxes," Bajaj told PTI. With regard to disinvestment, as against the budgeted target of Rs 1.75 lakh crore, the mop-up so far stands at Rs 9,330 crore. Asked when Fitch expects a reversal in India's rating outlook to stable, Zook said, "We do not have a specific timetable for resolving the negative outlook which could result in a rating downgrade or stabilisation of the outlook at the current rating level. We normally aim to resolve such outlooks within a two-year time horizon, but it can take longer. We seek to review India's sovereign rating twice annually." India's general government debt rose to 89.6 per cent of GDP in FY21. Fitch forecasts the ratio to decline slightly to 89 per cent, still well above the 60.3 per cent 'BBB' median in 2021. The debt ratio should fall to 86.9 per cent by FY26 (ending March 2026) as per the rating agency. "The two key positive triggers could lead to a revision of the outlook to stable. First, implementation of a credible medium-term fiscal strategy to bring post-pandemic general government debt down toward 'BBB' category peers levels. "Second, higher medium-term investment and growth rates without the creation of macroeconomic imbalances, such as from successful structural reform implementation and a healthier financial sector," Zook added. Zook also said the forthcoming reviews will assess these triggers. "Conversely, negative triggers could result in a downgrade, namely, failure to put the general government debt-GDP ratio on a downward trajectory or a structurally weaker real GDP growth outlook, for instance, due to continued financial-sector weakness or reform implementation that is lacking," Zook added.
Source: Business Standard
Founded in 1925, Raymond Group will have five focused business areas including textile, fast moving consumer goods, real estate, education and engineering. The Raymond Group, with interests in textiles, apparels and realty, is working toward reorganising its businesses into five core revenue streams, deploying professional boards to raise growth capital in the future. Founded in 1925, Raymond Group will have five focused business areas including textile, fast moving consumer goods, real estate, education and engineering. "All our boards will be completely professional in the next 12 months. Our FMCG and manufacturing companies have already done that," said Gautam Hari Singhania, chairman of the group, in an exclusive interaction with ET. "When you have an independent company with professional boards, you can do so many things including attracting private equity, going to the public by way of listing or you can exercise any other option available with you to create value for shareholders at the right time." According to Singhania, the group had to relook at its strategy after facing huge challenges due to the pandemic and the subsequent lockdown. "All the businesses are uniquely positioned in a way that bringing professional boards will help to accelerate growth," said Singhania at his 13th floor corner office in Mumbai's upscale business district of Breach Candy that overlooks the Arabian Sea. independently focused. So if it's for argument's sake, for real estate...If I want to monetize that asset and I want growth capital and the kind of investor that will invest in it will be the guy who wants to invest in real estate in a very focused way. So we created these focused structures," said Singhania. The group had literally started its real estate business during the pandemic constructing its first project at its Thane land parcel, earlier a mill land. "We are the only real estate company that has announced the delivery date of the apartments and I'm saying it publicly so you can hold me to it that December 10 next year at 10 am we will give possession to the purchasers - two years ahead of the deadline," said Singhania. "Like many business houses, we entered into the business primarily to develop our mill lands but in future, we will expand in other geographies as well." Currently, Reymond Realty is developing a 1-million-sq-ft commercial project including grade A offices and high-street retail component o0n 9.5 acres out of its nearly 125-acre land parcel at Thane's Cadbury Junction. So far, Raymond Realty has sold over 70% of the total launched inventory of nearly 2,350 units at its maiden project 10X.
Source: Economic Times
Bangladesh has the potential to produce $1.2 billion worth of recycled textile and garment items as the country has a big production base of cotton fibre made clothing items, according to a new study by the Global Fashion Agenda (GFA) and the McKinsey & Company. In total, six major manufacturing countries—Vietnam, Turkey, India, Malaysia, Indonesia and Bangladesh— have $4.5 billion market opportunity in this post-industrial recycling opportunity, according to McKinsey's analysis. These are all markets with high viability for such a model, given the economic significance of the textile industry and the commitment of policymakers to support the sector. "There is huge economic potential to scale this model beyond Bangladesh," according to the Circular Fashion Partnership (CFP) Scaling Circularity Report. Less than 1 per cent of material used to produce clothing is recycled into new clothing, representing a loss of more than $100 billion worth of materials each year, said the study that was launched virtually today. The government will remain with the project although there will be a lot of challenges to implement it in the country, said Faiyaz Murshid Kazi, director general of the foreign ministry's wing for west Europe and European Union. The apparel industry of Bangladesh has been showing its resilience even during the time of pandemic, he said. Circular materials are key to ensuring a more sustainable fashion industry as 40 per cent of greenhouse gas (GHG) emissions come from material production. Based on reverse resources analysis, 35 per cent of total waste from fibre to garment production is lost during production. From November 2020 until November 2021, the CFP has mapped and traced 1,013 tonnes of textile waste on the Reverse Resources platform (0.2 per cent of waste in Bangladesh), now regularly tracing over 200 tonnes a month. The CFP is a cross-sectoral programme, led by Global Fashion Agenda with Reverse Resources and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), with the support of Partnership for Growth. Mumit Hasan, head of operations in Bangladesh of the Reverse Resources; Jasmin Malik Chua, sourcing and labor editor at Sourcing Journal; Peder Michael Pruzan-Jorgensen, interim chief impact officer of the Global Fashion Agenda; Irene Maffini, sustainable investment expert; Martin Stenfors, chief operating officer of Renewcell, and Corinne Sawers, associate partner of the McKinsey & Company, also spoke.
Source: The Daily Star
Mongolia’s top export destination during the period between January 2021 and October 2021 was China, accounting for close to 86 per cent of its total exports. China also accounted for 39.7 per cent of Mongolia’s total imports, thus becoming the biggest import supplier for the country during the same period, as per the Mongolian National Statistics Office. The statistical agency also said that Mongolia’s foreign trade volume touched $13.2 billion between January and October, recording a 26.3 per cent increase compared to the same period in 2020. Mongolia traded with 151 nations during the first 10 months of this year.
Source: Fibre 2 Fashion
Beijing and Phnom Penh recently agreed to bring the Cambodia-China Free Trade Agreement (CCFTA) into force in January and renewed a pledge to boost their annual bilateral trade figure to $10 billion, according to Cambodian Prime Minister Hun Sen, who had a virtual meeting with his Chinese counterpart Li Keqiang to explore avenues to strengthen economic ties. Li vowed to push for joint mechanisms and work plans between the two sides to draw up and renegotiate quotas on the direct import of Cambodian milled rice and other agricultural goods to China. According to Cambodian commerce ministry spokesman Pen Sovicheat, for the CCFTA to enter into force, both parties must sign a joint notification, which indicates that their respective internal procedures have been completed. “The Ministry of Commerce hopes that the volume of trade between the two countries will continue to grow after this agreement enters into force, and especially that exports from Cambodia will increase further,” Sovicheat was quoted as saying by Cambodian media reports. Bilateral trade between Cambodia and China reached nearly $7.968 billion in the first nine months of 2021, increasing by more than 38.36 per cent year-on-year, the commerce ministry reported. In January-September, the Kingdom exported $1.093 billion, up by more than 52.74 per cent year-on-year, and imported $6.875 billion, surging by 36.32 per cent compared to the same period in 2020.
Source: Fibre2 Fashion
Natural fibres such as wool, cotton and mohair have historically been in competition for the same buyer. Now these industries are joining forces to take on new textile labelling laws in Europe over the very definition of sustainable. The "Make The Label Count" campaign aims to influence proposed European Union labelling laws which would see swing tags include a sustainability rating on every fashion garment. However, there were concerns the Product Environmental Footprint (PEF) would leave natural fibres like wool and cotton worse off compared to synthetic textiles. Claire Press, a sustainable fashion expert and the presenter of The Wardrobe Crisis podcast, explained the current methodology may not give consumers the full story. "In sustainability, we've got a bit of a problem that there's no standard methodology or standard agreement on what we mean when we talk about a more 'sustainable' product," Ms Press said. Right now there is some controversy that natural fibres will be worse off under the current EU PEF methodology. "It's understood the current method would preference synthetic textiles because they may be more recyclable, may in some cases, have a lower carbon footprint as well as reduced water use compared to cotton or wool," she said. However, wool and cotton industries were concerned the methodology did not factor in issues including the use of fossil fuels and growing concern about microplastics. According to activist group, Fashion Revolution, 34 per cent of all microplastic pollution in the oceans comes from synthetic textiles. In the same vein, wool brokers have told ABC Rural they were concerned plastic bottles recycled into clothing had become popular among those promoting sustainability, but that did not take into account those clothes ending up in landfill.
Greenwashing on the rise The EU was the first jurisdiction to look to regulate labelling to give consumers transparent information on sustainability. Earlier in the year the EU conducted its annual sweep of websites and for the first time targeted the rise of greenwashing amongst brands. In more than half of the cases, the survey found the trader did not provide sufficient information for consumers to judge the claim's accuracy. In 37 per cent of cases, the claim included vague and general statements such as "conscious", "eco-friendly" or "sustainable" which aimed to convey the unsubstantiated impression to consumers that a product had no negative impact on the environment. Didier Reynders, Commissioner for Justice said in a statement: "The Commission is fully committed to empowering consumers in the green transition and fighting greenwashing." Clare Press said the fashion industry needs regulation to overcome misleading marketing campaigns. "Greenwashing is absolutely rife … it is a real problem in this industry." "As more customers demand or look for greener and more eco-friendly products. "Of course, marketers rush to try to sell them those things. "Right now, for example, the fast-fashion giant H&M is pushing a PETA-friendly vegan collection," she said. The People for the Ethical Treatment of Animals has campaigned for animal-friendly fashion that uses recycled polyester and upcycled nylon "instead of animal or oil-derived products", according to H&M's website. "And the intimation is that it is also friendly for the planet." "But coming back to this idea of synthetics, microfibres and also the fact that they're derived from petroleum and fossil fuels, well that [planet-friendly principle] is not the case." Wool worse off Dalena White, secretary general of the International Wool textiles Organisation based in Brussels, said the current methodology would leave natural fibres like wool, cotton and mohair worse off. "It will have a serious implication for our natural fibre industry right through to our farmers — which are the most vulnerable in this position," Ms White said. "Really, we have to understand that at the moment, the playing field is not fair — it's not level." The recently launched Make The Label Count campaign brought together Australian Wool Innovation, Cotton Australia, as well as anti-plastics campaigners to make the case there are gaps in the methodology. "We know that the rest of the world is really trying to cut down on the use of fossil fuels, and somehow that point is not really being elaborated on in the process," Ms White said. "So when we look at biodegradability, that is currently not accounted for, in the PEF process. "Microplastic pollution, which we know is a huge issue on our planet, it's not accounted for. "And then the fact that our natural fibres come from renewable sources, that fact is not being accounted for. "This is such a fantastic opportunity, but we have to make sure the law is right and fair." Sustainable fashion expert Claire Press said this was a complex field that required a nuanced approach when comparing sustainability claims. "The EU is leading on this and it's brilliant … I'd love to see us do it in Australia," Ms Press said. "Now personally, my view is that wool is a fantastic fibre. "It's basically natural, biodegradable requires only sunlight and feedstock to produce and if you look at circularity and fashion waste, then I think natural fibres are the way to go. "But I also do see the kind of argument for recyclability, which is what's underpinning some of this push towards synthetics. "I think this is complex and there isn't a simple answer when it comes to sustainability." Can consumers make a difference? While it was not expected that the EU would implement textile labelling until at least 2023, it would be closely watched by other markets. Until regulation was in place, some experts believed a shift in consumer behaviour was part of what was needed to turn around the fast-fashion model. "Until we do have universal standardised labelling for sustainability, I think the onus is kind of on the consumer to do a bit more research and ask more difficult questions of brands about how they produce their stuff."
Source: ABC News
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Faruque Hassan has called on dyes and chemicals manufacturers to explore more costeffective and eco-friendly dyes and chemicals as well as technologies for sustainable textile manufacturing. He also urged technicians to stay updated on the latest technologies to reduce wastage of chemicals and dyes during production. Hassan said that the prices of yarn, chemicals and other raw materials in the global supply chain have gone up, resulting in increase of production costs in garment manufacturing. He thus requested brands and buyers to increase price taking the context into consideration. He made the call while addressing a programme organised on the 25th anniversary of Swiss Colours Bangladesh Ltd in Dhaka recently.
Source: Fibre 2 Fashion
