As many as 35 of the 56 major exporters to Russia, identified by the commerce ministry, have received payments, a senior government official told FE. After weeks of uncertainties, Indian exporters have started receiving payments for their goods despatches to Russia, with both the countries working towards resolving the payments issue that had hit the cash flow of scores of domestic traders. As many as 35 of the 56 major exporters to Russia, identified by the commerce ministry, have received payments, a senior government official told FE. Others, too, are expected to get payments soon, he added. Some Indian exporters had earlier claimed that $400- 600 million in payment was stuck, though there was no official word on it. Russian importers have made payments in euros through banks like Gazprombank that are outside the ambit of western sanctions, according to sources. This has made it easy for Indian banks, who had put on hold fresh deals with Russian lenders after the Ukraine war, to get into transactions with them. “Once the (Russian) importers deposit the euros there, the correspondent Indian banks convert them and release payments to relevant Indian exporters in the rupees,” one of the sources said. “We have about 100 authorised dealers-category-1 banks, which are allowed by the RBI to undertake capital and current account transactions. These banks can act as the correspondent banks,” he added. An exporter said the visit of Russian foreign minister Sergei Lavrov last week also “had a positive impact on bilateral trade and payment issues”. “If European countries can still deal with Russian suppliers, why shouldn’t we do business with the Russians?” he asked. However, the sources said these payments are meant for goods already despatched before the war. “Fresh supplies (after the war) to Russia are very limited, and exporters are trying to ship some goods to Vladivostok port there (through China). However, shipping lines are reluctant to offer services there now,” one of the sources said. Last week, Lavrov also pitched for a rupee-rouble mechanism to trade oil, defence equipment and other goods between the two countries. Already, following Russia’s attack on Ukraine, the US and its European allies decided to block certain Russian banks from the SWIFT financial-messaging infrastructure for cross-border payment. VTB, Russia’s second-largest bank by assets, VEB, another big player, and five smaller ones have been cut off from the SWIFT. This adversely affected various countries’ trade transactions with Russia. New Delhi buys substantially more goods from Moscow than what it ships out to the latter (its bilateral trade deficit stood at $4.34 billion in the first three quarters of FY22). So, payments shouldn’t be an issue, if a proper rupee-rouble architecture is worked out, exporters have said. India mostly buys petroleum products, diamonds and other precious stones and fertilisers from Russia. Similarly, it ships out capital goods, pharmaceutical products, organic chemicals and farm products to Moscow. Capital goods and certain consumer products made up 25% of India’s exports to Russia in the first three quarters of this fiscal, while pharmaceutical and organic chemicals accounted for over 22% and farm items 18%.
Source: Financial Express
'Geopolitical conflicts and their consequent impact on food, fertiliser and crude oil prices cast a cloud on the growth outlook globally' GatiShakti and Production-Linked Incentive Schemes will offset global headwinds and drive investment, resulting in high post-recovery growth for the Indian economy, a Finance Ministry report said. Geopolitical conflicts and their consequent impact on food, fertiliser and crude oil prices cast a cloud on the growth outlook globally, according to the monthly Economic Review prepared by the ministry. India may feel its impact although the magnitude will, of course, depend on how long the dislocations in energy and food markets persist in the financial year and how resilient India’s economy is to mitigate the impact, it said, adding transient shocks may not have a big effect on real growth and inflation. “Offsetting these potential headwinds, GatiShakti and Production Linked Incentive Schemes will drive investment, which will combine with supply chains strengthened by structural reforms taken in the past few years to deliver high post-recovery growth for the Indian economy," it said. With growing evidence of improving labour force participation and declining unemployment rate and the government's unwavering commit- ment to provide continued support to the economically poor (the PM Gharib Kalyan Yojana was extended for another six months, up to the end of September 2022), the growth path ahead will likely be a more inclusive one, it said.
Source: Business Standard
Friction between Canberra and Beijing has brought a series of official and unofficial Chinese trade sanctions on Australian exports including coal, beef, seafood, wine and barley. The India-Australia comprehensive interim free trade agreement is well-timed for both partners and will ensure uninterrupted supply of key inputs to Indian industries,with Australian businesses gaining access to a more reliable alternative of China, which is resorting to sanctions against the Canberra, two people aware of the development said. So far, China dominates key Australian markets such as pharmaceuticals, textiles, plastics, toys, footwear and leather goods. Now the India-Australia Economic Cooperation and Trade Agreement (IndAus ECTA), signed on April 2, could make India an alternative to China, the two added on condition of anonymity. Friction between Canberra and Beijing has brought a series of official and unofficial Chinese trade sanctions on Australian exports including coal, beef, seafood, wine and barley. Confederation of Indian Industry (CII) president TV Narendran said that for Australia, India presents a good alternatives to China, and the ECTA agreement will certainly enhance bilateral trade engagements between India and Australia. “It has huge potential and the FTA will unlock it,” he said. Narendran, who is the CEO and managing director of Tata Steel, is heading a business delegation that is accompanying commerce minister Piyush Goyal to Australia. Tata Steel imports Australian coal worth about $2 billion annually. After the agreement comes into effect, India can import Australian coal cheaper than earlier, he said. Australian coal constitutes over about 70% of total imports from Australia to India and attracts a 2.5% duty. ECTA will allow zero duty import of Australian coal, which is a key raw material for the steel sector, Narendran added. The agreement is expected to be effective in about four months. India and Australia on April 2 signed a comprehensive interim free-trade agreement that permits zero duty trade on several items. Largely, India imports key raw materials and intermediates from Australia and exports finished products. After an interaction with businessmen from both countries, India’s commerce minister Goyal said that India’s manufacturing sector, particularly micro, small and medium enterprises (MSMEs) are interested in the Australian market. “Australia has a market for pharmaceuticals worth about ₹1 lakh crore or $12 billion. But Indian exports are miniscule [$345 million]. With this agreement, the regulations have been significantly eased to facilitate exports of medicines from India,” he said. Speaking about prospects of the interim FTA between India and Australia, Council for Leather Exports vice chairman RK Jalan said: “The agreement will certainly boost India’s footwear and leather exports.” “We currently have 3-5% market share in the about $2 billion Australian market [of footwear and leather accessories], which is largely dominated by China. After duty free exports, our products can compete with Chinese products and we can raise our exports by 25%,” he said adding that quality of Indian products are better than the Chinese products. Goyal said the agreement unlocks huge opportunities for Indian exports of automobiles, textiles, footwears and leather products, gems and jewellery, toys and plastic products. According to the two people cited in the first instance all these markets have been so far dominated by China with negligible 1-5% markeshare of India. Speaking to Indian students at University of New South Wales, Goyal said the trade deal will also encourage Indian investments in Australia, which would mean more employment opportunities for Indian students in their Australian facilities. “The trade deal has raised our hopes in getting internships and job opportunities in Australia,” said Kashish, a B.Com. first year student of the University who hails from New Delhi. Several students said that until now getting jobs was difficult in Australia without permanent residency. Cochlear Ltd CEO and President Dig Howitt said the 1.3 billion-people Indian market is the major attraction for both trade and investments. Cochlear is a medical device company that designs, manufactures, and supplies hearing implants. Goyal said that in 27 years Cochlear could sell only 27,000 implants in India. But, it can scale up its operations by setting up a facility in India, which will not only reduce the cost of implants but also provide export opportunities from India to other countries, he added. “This they can do without any commitment to technology transfer, as has been insisted by various other countries.” Howitt said he is encouraged by the deal. “I will expand my market in India and may also consider investing in India.”
Source: Hindustan Times
Indonesia, Vietnam, Malaysia and Singapore are among the favourable destinations for Indian enterprises to expand their footprint in the Association of Southeast Asian Nations (ASEAN) region. Indian companies with an ASEAN focus are quite optimistic about business growth in the region, according to a survey commissioned by Standard Chartered. Respondents believe Indonesia (61 per cent) is the most promising market for their organisation in terms of growth potential within ASEAN, followed by Vietnam (49 per cent), Malaysia, and Singapore (46 per cent each). Surveyed Indian companies expect their business to increase production in ASEAN, while 93 per cent of these firms project growth in revenues over the next 12 months. Access to the large and growing ASEAN consumer market (90 per cent), availability of an abundant and skilled workforce (51 per cent), and access to a global market enabled by a network of free trade agreements (44 per cent) are regarded as the most important drivers for expansion into the region by senior executives of the respondent Indian companies. Around 63 per cent of respondents indicated their company will increase investments into ASEAN over the next three to five years on the back of the ratification of the Regional Comprehensive Economic Partnership (RCEP) agreement, Standard Chartered said in a press release. However, the poll revealed that Indian corporations are well aware of the vast spectrum of hazards that exist in Southeast Asia. The pandemic and other health catastrophes (which received 85 per cent of the vote), delayed recovery of the economy, and a decline in consumer spending (which received 73 per cent of the vote), as well as geopolitical instability and trade tensions (54 per cent) were the top three dangers cited. More than three-fifths of the respondents agreed that the most significant challenges they will face in the next 6-12 months will be adapting their business model to industry practices and conditions in ASEAN, understanding regional regulations, payment methods, and infrastructure, as well as building relationships with suppliers and adapting supply chain logistics. To mitigate these risks and drive resilient and rebalanced growth in ASEAN, the survey respondents consider entering new partnerships to increase market presence (73 per cent), investing in leadership and talent development (59 per cent), and driving sustainability and ESG (environmental, social, governance) initiatives (41 per cent) as the most important areas for their companies to focus on.
Source: Fibre 2 Fashion
The two countries’ geopolitical compulsions, especially regarding containing china in the indo-pacific, have translated into closer trade ties Last week, after 10 long years of negotiations, India and Australia finally signed the IndiaAustralia Economic Cooperation and Trade Agreement in a virtual ceremony attended by prime minister Narendra Modi and his Australian counterpart Scott Morrison. Modi rightly described it as “a watershed moment for our (India-Australia) bilateral relations,” underlining that “consensus on such an important agreement in such a short period of time shows the mutual trust between the two countries.” Morrison emphasised the pact as the single-largest government investment in Canberra’s relationship with Delhi, and given the impending elections in his country, suggested that “this agreement opens a big door into the world’s fastest-growing major economy for Australian farmers, manufacturers, producers and so many more.” The interim agreement is expected to benefit several sectors in India, including textiles, leather, furniture, jewellery, and machinery, even as it lifts tariffs on more than 85% of Australian goods exports to India. It comes at a critical time as both India and Australia are reassessing their trade policies. India is trying to establish its credentials as a country ready to do business with trusted partners, and is busy finalising a number of “early harvest” pacts. Australia is seeking to reduce its trade dependence on China by diversifying its export markets after being at the receiving end of Beijing’s trade weaponisation. In the past, trade was seen as a means of reducing geopolitical tensions. “Let us trade more and become friends” was the mantra of the past. Today, it is moving to a phase where nations want to trade only with friends and like-minded countries. Geopolitics is driving the trade and technology agenda, and it is this geopolitical convergence in the Indo-Pacific that is also driving the present upward trajectory in the India-Australia relations. The Indo-Pacific maritime geography is the fulcrum around which New Delhi and Canberra are mapping their strategic priorities. As Australian high commissioner to India, Barry O’Farrell, has cogently articulated, “our (India and Australia’s) geography places us squarely in the middle of the world’s strategic center of gravity. And as the international system becomes more multi-polar, the region’s resilience will be tested.” Australia and India have, therefore, according to O’Farrell, accepted a shared responsibility to ensure a peaceful and inclusive Indo-Pacific where the rights of all states are respected regardless of their size. Despite the differences over the Ukraine crisis, India and Australia remain committed to maintaining an upward trajectory in their relationship. A multipolar Indo-Pacific will remain a mirage without New Delhi and Canberra stepping up their geopolitical game. What is interesting is that while this consensus has been there at the elite level, it is now percolating down as recent polling data shows how the public in India and Australia view each other as “trusted” partners. This belief in each other’s ability to shape the regional environment, thereby emerging as leading partners, owes a lot to the way in which top leadership in both nations view this partnership as essential to shaping the future of the Indo-Pacific. India-Australia relations have evolved rapidly over the past few years, with the two nations signing the Mutual Logistics Sharing Agreement, allowing the two nations to use each other’s military bases for logistics support improving military partnership. The two countries also elevated their ties to a comprehensive strategic partnership in 2020, which is based on “mutual understanding, trust, common interests and the shared values of democracy and rule of law.” This is symbolic of their commitment to strengthen their engagement in the Indo-Pacific for the promotion of an “open, free, rules–based Indo-Pacific region supported by inclusive global and regional institutions.” This comprehensive strategic partnership encompasses regular high level political, diplomatic and military engagements, resulting in gradual accretion of trust at various levels. China’s aggressive policy posturing, of course, has been one of the structural variables that has pushed the two nations to be more ambitious in their bilateral outreach. Amid this rising assertiveness by China, closer cooperation among like-minded nations has gathered momentum. For years, India has been trying to tread cautiously vis-à-vis China. Now, its calculations have changed. The choice to join hands and develop a stronger stance against China with like-minded countries no longer seems radical. For Australia and India, stronger partnership is essential to achieving a “free and open” Indo-Pacific. There have also been important institutional developments in the Indo-Pacific, foremost among them US president Joe Biden’s elevation of the Quad to the leaders’ level. When the idea of a Quadrilateral Security Dialogue was initially conceived in 2007, both New Delhi and Canberra were not willing to invest wholeheartedly in such a platform. But when Chinese assertiveness went out of control from 2007-2017, the Quad was resurrected and since then, it has been a story of a dramatic rise. For the US, India, Australia, and Japan, the Quad provides a platform to underscore their commitment to common goals: a rules-based international order, freedom of navigation, and the peaceful settlement of territorial disputes. The rise of the Quad signals the acceptance, both within and beyond the member countries, of the “Indo-Pacific” as a strategic concept. Today, the Quad represents a maturation in thinking by major powers in the region. And the agenda of the Quad today is wide-ranging to tackle common challenges such as Covid, climate crisis, lack of critical technologies, and terrorism by pooling in their unique strengths and moulding the future Quad. As issue based coalitions that are more flexible, ad hoc, and political in nature compared to formal alliances make their mark in the Indo-Pacific, strong bilateral ties between like-minded nations such as India and Australia will remain critical to shaping the regional security architecture. With the recent trade deal, New Delhi and Canberra have signalled that they take this role seriously. The author is Vice-president for studies, Observer Research Foundation, New Delhi, and professor, international relations, King’s College London
Source: Financial Express
The Export Credit Guarantee Corporation of India (ECGC) has tightened the conditions for insurance cover for Indian exports to Sri Lanka. It said that it has modified underwriting policy for export transactions to Sri Lanka. The modification in insurance cover will be effective from today, April 7, 2022. After carrying out a review of the rating of Sri Lanka in view of prevailing economic and political crisis, ECGC, which offers credit guarantee has changed the cover category from Open Cover to Restricted Cover category (RCC-1). This category of export credit guarantee offers revolving limits and is normally valid for a year after being approved on a case-to-case basis. However, the premium rates for the shipments insured under the insurance covers will remain unchanged, ECGC said in a press release. Industry experts told Fibre2Fashion that the public sector export insurer has tightened the policy cover due to current crisis so that it can monitor the risk of underwriting. But previous policies issued for exports will remain unchanged and will be honoured as per the documents. According to ECGC, this change has been made to ensure that ECGC is able to assess and monitor risks covered under its export credit insurance policies and to place appropriate risk mitigation measures. It claimed that the measure will assist ECGC customers i.e. exporters in improving payment realisation prospects from buyers in Sri Lanka. ECGC has also asked to contact their servicing branch of ECGC for cover on shipments to Sri Lanka. "ECGC continues to monitor the situation and further review of the underwriting policy will be undertaken based on future developments," it said.
Source: Fibre2 Fashion
The apparel industry in Noida is betting big on the 22nd Global Textile Trade Fair in the US to tide over the Covid induced losses. Conceptualized by the Union textile ministry, the three-day fair is being organized by the Apparel Export Promotion Council (AEPC) and the Noida Apparel Export Cluster (NAEC) in Atlanta from June 9 to 11, with an aim to promote exports of readymade garments and textile exclusively to the US. This would be the first textile trade fair with pan-India representation in the form of a cluster of pavilions covering various states of the country, according to the organisers. There will be a special pavilion — ‘Noida, City of Apparel’, comprising 19 stalls — at the fair, where business worth US$ 250 million is expected. “There will be no competition with suppliers from other countries,” said Lalit Thukral, regional head of AEPC-North India and president of NAEC. “The fair will not only strengthen the trade between India and the US, but will also give recognition to Noida as the ‘City of Apparels’. The exhibitors from Noida will be able to target Canada and South America markets in the fair,” he said. Of about 3,200 factories in Noida engaged in apparel manufacturing, some 1000 are engaged in exports. “In this, while the overall investment is around Rs 10,000 crore, the readymade garment exported annually from Noida is approximately worth Rs 30,000 crore,” said Thukral. Moreover, the apparel sector in Noida provides employment to more than 10 lakh people, where 70% comprise women.
Source: Times of India
“Companies cleared out more stocks due to year-end push, which increased dispatches and utilization of loading capacity of each truck as well,” All India Transporters Welfare Association (AITWA) joint secretary Abhishek Gupta told FE. With the e-way bills generated for inter-state trade in goods under the goods and services tax (GST) regime touching a record in March, the monthly GST collections will likely hit an all-time high of around Rs 1.5 trillion in April (March transactions). E-way bills came in at 78.16 million for March, the highest monthly data since the online system was rolled out on April 1, 2018, reflecting an uptick in demand and shipments before the year-end closure by companies for accounting purposes. GST collections hit an all-time high of Rs 1.42 trillion in March (February transactions), indicating robustness in consumption, efficient plugging of tax evasion and a sustained shift of business to the formal sector of the economy. “April GST collections will set another all-time high new record,” a senior official told FE. E-way bills generation is a proxy for GST revenues. In February, E-way bills generation rose 0.5% on month to 69.15 million whereas March GST collections (February transactions) rose 6.8% on month to `1.42 trillion. With the E-way bills rising 13% on month in March, the GST collections will see a substantial jump despite a likely increase in GST refunds. “Companies cleared out more stocks due to year-end push, which increased dispatches and utilization of loading capacity of each truck as well,” All India Transporters Welfare Association (AITWA) joint secretary Abhishek Gupta told FE. Almost 99% of e-way bills are generated under the road category, Gupta said. Continued buoyancy in GST collections for several months in a row would help allay the state governments’ concerns about a revenue shock they might have to deal with once five-year revenue protection ends on June 30. For the Centre, the high mop-up would mean its share of the tax as Central GST would be higher than the revised estimate of Rs 5.7 trillion for FY22 by Rs 20,000 crore or thereabouts. Given that an incipient pick-up in consumption has resulted in a more-than proportionate jump in GST revenues, a stronger economic recovery could allow the collections to settle at an elevated level, proving the high revenue productivity of the broad-based consumption tax. Cotton Demand And Shortage Organically grown demand for cotton from distributors and companies increased substantially in 2020, with an increasing number of companies attempting to make it a major component of their materials and fibers.
Source: Financial Express
Bangladesh foreign minister AK Abdul Momen recently urged businessmen in the United States to invest in Bangladesh as Prime Minister Sheikh Hasina has allocated a special economic zone (SEZ) to American companies. He was addressing a meeting in Washington, DC, with US Chamber of Commerce's US-Bangladesh Business Council on business cooperation. Momen was accompanied by a high-level business delegation from Bangladesh to the meeting, where 20 US company executives engaged in discussions on commerce, trade and investment. Momen noted that US companies can support Bangladesh in fields like telecommunication infrastructure, digital economy, pharmaceuticals, blue economy, information and communication technology, financial technology and digital payments, according to Bangla media reports. Momen later visited Miami, Florida, to inaugurate the new consulate general of Bangladesh there.
Source: Fibre2 Fashion
Techtextil, Texprocess and the Heimtextil Summer Special will open their doors in Frankfurt am Main from June 21-24. After the COVID-related break, exhibitors and visitors are looking forward to personal interaction. The trade fairs taking place in parallel will cover textile value chains from textile fibres and processing to the end product. With Techtextil, Texprocess and the Heimtextil Summer Special, Messe Frankfurt will bring textile value chains together at its exhibition centre. After two years of the pandemic, the organisers are finally able again to look forward to new international faceto-face contacts, inspiring business encounters and a holistic, bundled and efficient market overview. In parallel, the D2C Neonyt Lab of Messe Frankfurt and numerous public events of Frankfurt Fashion Week, organised by the City of Frankfurt, are planned to take place in the city itself. This offers unique synergies all at one location. Exhibitors benefit from cross-selling opportunities and can establish business relationships in entirely new constellations. In one place, visitors will find global trends, products and innovations along textile value chains. The range spans from yarns and fibres to functional textiles, textile technologies and finishing processes to end products for textile furnishings, performance textiles, functional clothing and fashion. In the context of the increasing awareness of a sustainable circular economy, modern recycling processes will also be presented. With regard to the current Corona measures, the events can take place without capacity and admission restrictions and thus without proof of vaccination. Hygiene measures such as online ticketing, fresh air supply, generous hall planning and intensive cleaning processes will continue to be implemented, Messe Frankfurt said in a press release. The last two years have shown: As the world market leader for textile trade fairs, we have a great responsibility for the industry. In this role, we have successfully accompanied the textile industry through the crisis. Through our worldwide events, we have not only been able to maintain orientation and global business relationships in the market in uncertain times - but also our top position," explained Detlef Braun, member of the executive board, Messe Frankfurt, at the joint press conference. Recent global trade show highlights ahead of the strong re-launch in Frankfurt include Texworld Evolution Paris in February 2022, Interior Lifestyle in Tokyo in June 2022, and six other "Techtextil" and "Texprocess" brand events in North America and Asia. Heimtextil will be held in June as a one-time Summer Special with 800 announced exhibitors and a high level of international participation from 47 countries. Both the international high-volume business and the retail trade are focus topics of the summer edition. Retailer-oriented suppliers can be found specifically in advance via the exhibitor search. Exhibitors with innovative textile solutions in the field of contract textiles will also be showing their new products in the summer. This summer's Heimtextil Trends "Next Horizons" has a clear focus on sustainability and resource conservation – located at the center of the exhibition grounds in Hall 4.0. The layout of the area is based on the Material Manifesto: local resources, environmentally friendly or loaned materials will be used for the stand design. Visitors can expect inspiring stagings of colors, materials, curated exhibitor exhibits, lectures and DIY activities. In the latest episode of the Heimtextil podcast, curator Anja Bisgard Gaede also looks at the trends from a very special angle and gives retailers practical preparation basics for their visit to the trend area. The "Heimtextil Conference Sleep & More" in Hall 3.0 will offer representatives of the bedding trade, environmentally conscious retailers and decision-makers from the hotel industry a first-class line-up of speakers with, among other things, the latest findings in sleep research, tracking technology and sustainability in the hotel industry. Exhibitors will present their innovations in the field of technical textiles and nonwovens as well as the processing of textile and flexible materials at the leading international trade fairs Techtextil and Texprocess. More than 1,100 exhibitors from 45 countries, numerous joint stand participants and 13 international pavilions are looking forward to presenting their products to an international trade audience. Techtextil and Texprocess highlight innovations, new processes and developments and progressive approaches with a view to sustainability. These include new production processes, materials and machinery. High investments in research and development over the past three years promise high innovative strength. At Texprocess, international manufacturers will showcase the latest machinery, equipment, processes and technologies for garment manufacturing and textile and flexible materials – ranging from design, cutting, sewing, knitting and embroidery to finishing, IT and logistics, the release added. "Exhibitors and the public set high expectations for Texprocess, the leading trade fair. After a break of three years, exhibitors present their developments to an international audience and anticipate investments. Visitors are looking forward to innovative solutions for more sustainable, more flexible and also more regional production. Texprocess drives the industry forward and finally enables personal exchanges and the forging and strengthening of business relationships once again," said Elgar Straub, managing director of the VDMA Textile Care, Fabric and Leather Technologies Association. With twelve application areas, Techtextil promises a wide variety and breadth of product offerings as well as innovative strength on the part of suppliers – from car makers, fashion designers, medical technology specialists to industrial specialists. Exhibitors at Techtextil offer innovative materials for all requirements. For the first time, a digital extension of the two trade fairs will be offered. This enables visitors who cannot attend in person to experience Techtextil and Texprocess digitally and to exchange ideas in a virtual space. Exhibitors benefit from an additional digital presence alongside their stand on the exhibition grounds. For around four weeks, from June 13 to July 8, 2022, the digital extension will be available before, during and after the trade fair days. Sustainability@Techtextil and Sustainability@Texprocess will once again focus on the topic of sustainability this year. Innovative and sustainable materials and their ecological processing with minimal waste and water consumption as well as digital solutions will be presented and awarded at the trade shows.
Source: Fibre 2 Fashion
Lenzing Group and Cittadellarte – Fondazione Pistoletto have joined hands to foster a sustainably aware future. While looking to place art in direct interaction with different sectors, especially with fashion and different processes and dynamics of the textile value chain, Cittadellarte found a match in Lenzing’s commitment to evolve business innovatively. An Austrian-based company that has focused on fibres for more than 80 years, Lenzing took to heart its ecological footprint long before the word sustainability was even coined, let alone applied as a concept. Its priority has been, from its very start, to produce fibres for many sectors (fashion, beauty care, cleaning, hygiene and home textiles) in a sustainable way. Each Lenzing product is made of cellulose from wood, a renewable natural resource, coming only from certified sustainable sources. An important characteristic of cellulose is its biodegradability and compostability: at the end of their life cycle, cellulosic fibres can re-enter the ecosystem and create a closed-loop production process, mirroring the circular concept of nature where water and chemicals are re-used over and over, and re-circulated within the system, the company said in a press release. Tencel-branded fibres, dedicated to a variety of highly specialized applications, are a leading protagonist of the textile production chain, appreciated for their outstanding characteristics – softness, smoothness, luxurious shine and flow – and feature in many of the most sustainable collections in the world. A selection of pioneering technologies that cater for Tencel branded fibres have therefore been under the spotlight throughout the collaboration with Cittadellarte – Fondazione Pistoletto: - Tencel Lyocell fibre with Refibra technology, using cotton textile waste and wood pulp as the feedstock for cellulosic fibres, creating a circular solution; - Tencel branded fibres with Indigo Color technology, infusing pigment into fibres directly during the spinning process; - Tencel Luxe branded Lyocell filaments, providing superior aesthetics, performance and comfort to be the perfect partner of other noble fibres such as silk, cashmere or wool; Tencel branded Lyocell fibres, offering carbon-zero CarbonNeutral-certified products by Natural Capital Partners; - Tencel Modal fibres with Eco Clean technology, bringing totally chlorine-free-bleached Tencel Modal fibres to the textile industry. In their shared desire to advance a genuine sustainable agenda for fashion as a whole, these two realities started a common journey already in 2019, when Lenzing chose to partner in multiple initiatives promoted by Cittadellarte – Fondazione Pistoletto, and in 2022 continues to embrace this cause through several touch points which have taken place in the past few months, for example the recent activations during FILO Milano, White Milano and the exciting collaboration with BMW. “From the very beginning we have immediately felt a strong connection with Cittadellarte – Fondazione Pistoletto as we completely agree on what the backbone of tomorrow’s fashion should be: sustainability. When this becomes intertwined with art, philosophy, innovation, business culture, it shows all its effectiveness with regards to the actual world and this is the only way to not only talk the talk, but really walk the walk, together with the talents and designers that will lead the change in the present and in the future,” said Carlo Covini, business development manager Italy & Switzerland for Textiles – Lenzing. “We cannot wait for the next initiatives that will see us together”. “The Third Paradise is a myth that can be pursued if we set out with others along the road that forms before us when we combine different, or even conflicting (or supposedly so), disciplines, areas of expertise and even interests. When economics and ecology meet along this road, businesses are created that are good for the planet and at the same time function as economic and productive enterprises. Lenzing is one of them, and walking together with them towards the Third Paradise is already part of the result we aspire to: opening up spaces for co-creation and continuous learning for the common good, for the good life,” explained Paolo Naldini, director of Cittadellarte - Fondazione Pistoletto.
Source: Fibre2 Fashion
H&M is coming out with a new line of baby clothes that can be recycled in an unexpected way once they're worn out - composting. The 12-piece organic cotton collection for newborns (priced from $4.99 to $17.99) launches in May and includes tops, bottoms with adjustable waistbands and cuffs, jackets, hats and blankets. Abigail Kammerzell, H&M's US head of sustainability, said all items are 100% biodegradable, including the pigments used to print designs on the clothing. She said the pieces are also deliberately absent of buttons or any metal trim. This is to ensure that each piece can be composted when it's at its end of use, even by just putting them in an athome compost pile. Kammerzell said the collection is certified by the environmental group Cradle to Cradle for using materials free of chemicals that are harmful to humans and the environment and producing the items with 100% recycled water and renewable energy. "This is the first of any of our clothing collections that is compostable," Kammerzell said. Given H&M's global scale, with over 4,000 stores worldwide, she said the company is in a position to "enable big changes in the fashion industry and we hope to be a leader in sustainability and keep clothes out of landfills." This latest effort from the Swedish fashion retailer comes amid rising volumes of global clothing waste and growing concern over fast fashion's contribution to it. According to the Environmental Protection Agency, 17 million tons of textile waste - with discarded clothing being the main source - was generated in the United States in 2018, the latest data available. The recycling rate was just 14.7%, with 2.5 million tons recycled. The EPA said landfills received 11.3 million tons of that 2018 textile waste, which represented 7.7% of all municipal waste that ended up in landfills. H&M and other fast fashion sellers including Zara have recently taken steps to curtail clothing waste. In 2013, H&M launched a global garment collecting program and has set a goal of having all clothing sold in its stores be made from recycled or sustainably sourced materials by 2030. That figure currently stands at 80%, according to the company. The retailer collected more than 29,000 tons of garment for its recycling program in 2019 but said the pandemic slowed the effort in 2020 and 2021, with nearly 16,000 tons collected last year. Similarly, customers can drop off used clothing, footwear and accessories at more than 1,300 Zara stores. In 2019, the Spanish fast fashion chain (which is owned by Inditex) announced that all of the cotton, linen and polyester used by the company will be organic, sustainably sourced or recycled by 2025. Kammerzell said H&M has tripled the share of recycled materials used in its garments from 5.8% to 17.9%, with the goal of reaching 30% by 2025. But she acknowledged that challenges remain for the industry to more fully embrace sustainability efforts. "We're not on board with new suppliers who have coal boilers on their premises," she said. "There are lots of factories in the industry that still use them." Jessica Schreiber is the founder and CEO of FABSCRAP, a nonprofit initiative that provides pickup and recycling services for fabric scraps from businesses in New York City and Philadelphia. Schreiber said she's excited too see a big industry name like H&M continuing to push for innovation in sustainability. But she's cautious that these are incremental solutions to combat a much bigger problem. "It's always a step forward for a company as big as H&M to show it is making an effort. But fast fashion retailers also put out so much clothing regularly," Schreiber said. "To really turn the tide and slow down the volume of garments that's ending up in the waste stream will consistently require much bigger moves."
Source: abc30
Production in spinning mills in this peak season has remained halted over the past six days because of a severe crisis of gas for overhauling at the Bibiyana gas field. Following the suspension in production, the millers are fearing that the export of garment items will be affected because of delayed supply of yarn to the export-oriented garment factories. Usually, textile and spinning mills require supplies of a substantial amount of gas. The suffering spinning and textile mills are in the major industrial zones like Gazipur, Savar, Ashulia, Shreepur, Dhaka, Narayanganj, Narsingdi and Bhaluka. The gas pressure came down to 1 pound per square inch (PSI) to 2 PSI whereas the requirement was 15 PSI to 20 PSI, for which the production in the mills had remained almost suspended. On an average day, Md Khorshed Alam, chairman of Ashulia-based Little Star Spinning Mills, can produce 12 tonnes of yarn. But over the last five days he is producing 2.50 tonnes of yarn per day to serve weavers for the production of garment for the domestic markets. Primarily, he has been incurring Tk 40.50 lakh in production losses every day, Alam told The Daily Star, adding that the gas crisis had been prevailing for quite some time but worsened over the last five days. Similarly, Estahak Ahmed, managing director of Bhaluka-based Nortex Textile Mills and Basher Spinning Mills, said his production capacity declined to 8 tonnes to 9 tonnes instead from 50 tonnes per day because of the gas crisis. He supplies yarn to export-oriented garment factories. "If we cannot supply raw materials timely to the garment factory owners, the factories will lose the buyers and work orders in the peak season," Ahmed pointed out. Fazlul Haque, managing director of Shreepur-based Israq Spinning Mills, said his production declined to 25 tonnes over the last five days while on an average day he can produce 125 tonnes. He also apprehends that his buyers might not accept goods if there is a delay as the work orders were placed for a season. If the season passes, the buyers will not want to take the goods, he said. Monsoor Ahmed, chief executive officer of Bangladesh Textile Mills Association (BTMA), said every day members were complaining of losses and halts in production in the mills for the acute shortage of gas in the mills. "We are getting ready to assess the losses in the factories over the last few days," he said. He, however, said on an average, the factories which used to produce 30 tonnes of yarn daily had cut down to only five tonnes a day. Mohammad Ali Khokon, president of the BTMA, said state-owned gas company Petrobangla had informed that the crisis had been prevailing since December last year but turned acute over the past one week. "Almost all major textile mills have remained shut over the past five to six days because of the severity of the gas crisis. We want a quick solution as we have to supply raw materials to our buyers," he said. Officials of Petrobangla could not be reached for comment despite repeated attempts yesterday.
Source: Daily Star
