The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 13 APRIL, 2022

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INTERNATIONAL

 

We should take textile exports to $100 billion by 2030: Piyush Goyal

The textiles minister also said the exports would get a boost as the sector would get zero duty access in the UAE and Australia. Union Minister Piyush Goyal on Tuesday pitched for taking the textiles exports of the country to USD 100 billion by 2030 as the sector is recording a healthy growth. The textiles minister also said the exports would get a boost as the sector would get zero duty access in the UAE and Australia. India has signed a trade pact with both these countries. India is also trying to get zero duty access in the markets of the European Union, Canada, the UK and member countries of the Gulf Cooperation Council (GCC), he said here at a function. India is negotiating free trade pacts with these countries. The textiles exports last fiscal year stood at USD 43 billion as against USD 33 billion in the previous year. "The sector is growing at a fast pace and we should take exports to USD 100 billion by 2030. We will leave no stone unturned to achieve this aggressive growth and substantial target," Goyal said. He added that the current geopolitical situation is changing and it provides huge opportunities for the industry to boost exports. The minister further emphasised on the need to promote cotton production in the country as the current figure of about 500 kilogram per hectare is half of the world's average. The price of cotton is high today and the government is keeping constant control over that, he said adding there is a need to maintain the right balance so that farmers and the industry both get cotton at right prices.

Source: Economic Times

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More countries to accept Indian textile exports at zero duty: Goyal

‘The industry can achieve $100 billion in exports by 2030’ Europe, Canada, the U.K. and Gulf Cooperation Council nations are expected to welcome Indian textile exports at zero duty soon, Union Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles Piyush Goyal said on Tuesday. Speaking at the inaugural of the golden jubilee celebrations of the Confederation of Indian Textile Industry-Cotton Development and Research Association (CITI-CDRA) in New Delhi, he said the new Economic Cooperation and Trade Agreements with Australia and the UAE would open infinite opportunities for textiles, handloom and footwear, among other sectors. Indian textile exports to Australia and the UAE would now face zero duty. He said Indian textile industry had the potential to achieve $100 billion in exports by 2030. Pointing out that the world was looking for alternative manufacturing hubs for geopolitical reasons, he said Indian textile industry was in a position to grab the opportunities. It accounted for about 10% (approximately $43 billion) of India’s total merchandise exports. The textile and apparel industry should focus on sustainability and farmers should focus on the natural farming methods, he said. Vice-President M. Venkaiah Naidu, who inaugurated the celebrations, called upon all stakeholders to make concerted efforts to improve cotton yield and productivity to enhance the income of farmers. Expressing concern over the low yield of Indian cotton, compared with other major growers, he said farmers should be guided through better research and the best practices. Though India was the largest cotton producer (23%) globally and had the highest area under cotton (39% of the world area), the yield per hectare remained at 460 kg lint per hectare, as against the world average of 800 kg lint. He called for measures to improve the planting density and mechanise harvest, and priority for agronomy research.

Source: The Hindu

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Trade Agreements signed with Australia and UAE will open infinite opportunities for Indian Textiles - Shri Piyush Goyal

The Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal today said that new Economic Cooperation and Trade Agreements with Australia and UAE would open infinite opportunities for Textiles, Handloom, Footwear etc. He said that Indian textile exports to to Australia and UAE would now face zero duty and expressed confidence that soon Europe, Canada, UK and GCC countries would also welcome Indian textile exports at zero duty. Shri Goyal was delivering the Keynote address at the Golden Jubilee Celebrations of the 'Confederation of Indian Textile Industry- Cotton Development and Research Association' (CITI- CDRA) in New Delhi today. The Vice President of India, Shri. M. Venkaiah Naidu was the chief guest at the celebration. The Minister mentioned that Trade Agreements would help in increasing exports from labor intensive industries. He added that India must also be open to receiving new technology, rare minerals, raw materials which are in short supply in India etc. from the world at reasonable costs. This will only increase our production, productivity and quality, which in turn will increase demand for our products all over the world, he said. Shri Goyal also said that Indian textile Industry has the potential to achieve USD 100 billion dollars in exports by 2030. Referring to the theme of the event,'Kapas ki Adhik Upaj,Shudh Upaj', Shri Goyal said that the theme perfectly converged with the Prime Minister Shri Narendra Modi’s bid to boost farm production, productivity and raise farm incomes. He applauded CITI-CDRA for working towards developing a robust cotton ecosystem by directly engaging about 90,000 cotton farmers. The Minister observed that more than just a fiber, Cotton has been an integral part of Indian culture, lifestyle and tradition. Reminiscing the monopoly enjoyed by India on manufacturing of various cotton textiles for about 3,000 years, the Minister said that the entire world sang praises of the superiority of Indian fabrics. By mid-17th century, Indian Calico and Chintz were superhits in Europe, he added. The Minister also spoke of the Khadi 'Charkha' (spinning wheel) of Gandhiji which became a symbol of Swadeshi and resistance against British. Speaking of the need to achieve atmanirbharta in the textiles sector, Shri Goyal said that our textiles must become a symbol of Quality, Reliability and Innovation. Pointing out that the world today was looking for alternative manufacturing sourcing hubs owing to geopolitical reasons, the Minister said that Indian Textile Industry is in a very sweet spot to grab this opportunity and hit 'Mauke pe Chauka'. It may be noted that Indian Textile sector accounts for about 10% (approximately USD 43 billion) of India’s total merchandise exports. India is the largest producer of Cotton with 23% of global production, sustaining 65 lakh people directly and indirectly, the Minister said. Shri Goyal called upon Indian cultivators to adopt new technologies and global best farm practices. He spoke of the AI technology that is enabling farmers in Australia to control spraying operations, as cotton crop is sensitive to spraying through data-driven decision making. The Minister commented that modern Australian cotton growers were not just farmers but drone pilots, data analysts and agri-scientists. He said that we must augment the capacity of Indian farmers who are already very talented and capable, to make them experts in allied areas as well. Listing the various interventions made by government for enhancing the productivity of cotton such as High-Density Planting System (HDPS), Drip Irrigation, rainwater harvesting, inter-cropping etc, the Minister said that we must place greater focus on special varieties of cotton such as the Kasturi cotton. Shri Goyal asked textiles and apparel industry to focus on sustainability and farmers to focus on natural methods of farming. He said that we must encourage innovation, Research and Development and asked farmers to work in collaboration with ICAR, AgriUniversities, IARI and Cotton Research Institutes. He also asked research institutions of eminence working in the field of cotton farming and textiles to work with each other to maximize production and productivity. He called upon the nation to work together to achieve the 5F vision of Hon’ble PM for textiles - Farm to Fiber to Factory to Fashion to Foreign. The Minister also said that we must aim for global dominance in organic cotton. He urged the nation to be Vocal for Vocal and take Local to Global. Quoting Mahatma Gandhi, who said “I see God in every thread that I draw on the spinning wheel. The spinning wheel represents the hope of the masses”, Shri Goyal assured that the Government would extend its full-fledged support to the Textile and Apparel Industry to bring back the same old dominance of Indian Textiles in the global cotton industry. He expressed confidence that with a holistic vision and hard work, India would be at the forefront of global textile industry and atmanirbhar in every sphere of cotton Industry

Source: PIB

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Finance Minister Nirmala Sitharaman meets EU delegation to discuss FTA, other issues

"Finance Minister Smt @nsitharaman and Mr @berndlange agreed that there is keenness to move ahead on India-EU negotiations with Bilateral Investment Treaty, Free Trade Agreement and Geographical Indications Agreement," the ministry said in another tweet. Finance Minister Nirmala Sitharaman on Tuesday met an EU delegation led by Member of the European Parliament (MEP) Bernd Lange and discussed issues of mutual interests, including the India-EU trade pact. As two of the largest open market economies and pluralistic societies, India and the EU can work towards a partnership that promotes international rule-based order in the post-pandemic period, the finance ministry said in a tweet. "Finance Minister Smt @nsitharaman and Mr @berndlange agreed that there is keenness to move ahead on India-EU negotiations with Bilateral Investment Treaty, Free Trade Agreement and Geographical Indications Agreement," the ministry said in another tweet. Both sides underlined that synergised cooperation between India and the EU can harness opportunities to deliver on strong global value chains with transparent, viable, inclusive and rules-based inter-linkages, it said. There has not been much forward movement on the FTA with the EU. The Bilateral Trade and Investment Agreement (BTIA) has been held up since May 2013 as both sides are yet to bridge substantial gaps on crucial issues. Launched in June 2007, the negotiations for the proposed BTIA have witnessed many hurdles, with both sides having major differences on key issues like intellectual property rights, duty cut in automobiles and spirits, and a liberal visa regime. The two sides have to iron out differences related to the movement of professionals.

Source: Fibre2 Fashion

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Govt plans new export promotion council for technical textiles

The Centre set to announce new export target, says Jardosh The government plans to set up a separate export promotion council for boosting shipments of technical textiles. Inaugurating the Clothing Manufacturers Association of India's FAB Show, Darshana V Jardosh, Union Minister of States for Textiles, said there have been many export promotion councils for various fields of textiles and clothing. Being a new addition in textile field, the government is weighing the option of forming a separate export promotion council for technical textiles. Under the previous governments, she said there were no proper coordination between different ministries and nodal agencies but the present government has ensured that all concerned departments and ministries have smooth coordination and hence there is no need for a new textile policy. On Textiles Upgradation Fund Scheme, the Minister said the government has to bear the brunt of various financial incentives announced by the previous government without making enough financial provisioning. The financial burden of unpaid incentives of previous governments have to be met by the present government, she said. Export target Having surpassed the export target in the previous fiscal, the government is all set to announce new target, she said. Rahul Mehta, past-President and current Chief Mentor of CMAI said the first FAB Show (Fabrics, Accessories and Beyond) to be held till Wednesday will have 200 participants and buyers from 8 counties. Rajesh Masand, President, CMAI, informed that Surat, which is often described as India’s answer to China in fabric development, especially that of Man Made Fibre fabrics, will show case the latest innovations in MMF Fabrics.

Source: The Hindu Businessline

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India's retail inflation rises to 6.95% in March; IIP remains muted

Food and oil prices push inflation to 17-month high India’s annual retail inflation shot up to a 17-month high in March while factory output contracted sequentially in February, complicating policy choices for the central bank. The data released by the National Statistical Office (NSO) on Tuesday showed that the retail inflation rate rose to 6.95 per cent in March from a year ago, remaining above the tolerance limit of the Reserve Bank of India (RBI) for the third straight month. The Index of Industrial Production (IIP), on the other hand, grew 1.7 per cent on an annual basis in February but contracted 4.7 per cent month on month, signalling that economic revival is yet to find a strong footing. The Consumer Price Index (CPI)-based inflation was led by the edible oils (18.79 per cent), vegetables (11.64 per cent), meat and fish (9.63 per cent), footwear and clothing (9.4 per cent), and fuel and light (7.52 per cent) segments. Core inflation, which excludes the volatile food and fuel items, jumped to a 10-month high of 6.29 per cent in March from 5.96 per cent in the previous month. Sunil K Sinha, principal economist at India Ratings, said that though the gradual fuel price increase from end-March had a limited impact on inflation, structural health inflation, higher commodity prices, and a weak currency would keep the inflation rate elevated at least in the first quarter of FY23. Russian invasion of Ukraine has put upward pressure on food and commodity prices, forcing the RBI to reassess its accommodative policy stance. In its latest monetary policy review, the central bank kept key policy rates unchanged but signalled that it would now prioritise keeping inflation in check over incentivising growth. The RBI revised downwards its growth projection for FY23 to 7.2 per cent from 7.8 per cent while raising its inflation forecast for the year to 5.7 per cent from 4.5 per cent, assuming crude oil prices at $100 per barrel. Out of the six segments by use-based classification of the IIP, four -- primary goods, capital goods, intermediate goods, and infrastructure goods -- witnessed positive growth in February. However, consumer durables (-8.2 per cent) contracted for the fifth consecutive month while consumer non-durables (-5.5 per cent) shrank after a month’s gap. Aditi Nayar, chief economist at ICRA, said the surge in global commodity prices, disruptions caused by the Russia-Ukraine conflict, and supply-chain implications of the continued lockdowns in China since March following the outbreak of a fresh Covid-19 wave did not augur well for sectors like automobiles that were dependent on key raw materials provided by Russia, Ukraine or China, in the absence of any other alternatives. Rajani Sinha, chief economist at Care Ratings, said though demand was expected to improve for the industrial sector with the economy opening up, in coming days, the manufacturing sector would further feel the pinch of the rising raw material prices and supply bottlenecks due to the ongoing geopolitical conflict. “The rising inflationary pressure will also dampen consumer sentiments and consumer spending, which has already been weak. A pick-up in consumption spending is the most critical aspect for capacity utilisation levels to improve and for private capex cycle to pick-up,” she added.

Source: Business Standard

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Indian Railways transports polyester yarn from Vapi to Panipat

The home furnishing textiles hub of Panipat in north Indian state of Haryana is very excited due to the beginning of new goods train service from Vapi in western state of Gujarat. Industry experts in Panipat expect the new service to make it easier to compete by bringing down freight charges while also reducing transportation time to nearly half. Last week, the first train reached Panipat carrying yarn, which not only cut down the transportation time, but also reduced freight charges by 30-35 per cent. According to railway officials, the first train left on April 2 and arrived at Panipat’s Deewana terminal after a 38-hour run. The train connected two important textile hubs for higher productivity. Vapi-Silvassa is an important region for polyester yarn production, while Haryana’s textile and carpet manufacturing heartland Panipat is a large consumer of polyester yarn. Earlier, yarn manufacturing units in Vapi and Silvassa were transporting raw materials by road, which took up to 72 hours. In addition to saving time, it is predicted that train transportation will reduce logistics costs by up to 30-35 percent. Valsad railway station area manager Anu Tyagi said at the time of launch of the service, “Hoping for constant support from the textile industry, the railway is planning to make 22 trips from Vapi to Panipat in a month.” Sanjiv Davar, an industry expert from Panipat, told Fibre2Fashion, “Panipat furnishing industry consumes 75 per cent polyester yarn out of total fresh yarn consumption. Therefore, Panipat is very much dependent on supplies from Vapi-Silvassa region of Gujarat. Normally, factories receive supplies through trucks which is costlier and more time-consuming mode of transportation. As per the industry estimate, consumer industries of Panipat have to bear a cost of ₹5 per kg if they transport yarn consignment through road transport. The freight cost will come down to around ₹3-3.5 per kg if they use railway’s transportation.” Another industry expert, Suresh Durga, said that railway goods train service will reduce cost of transportation for consumer industries. “However, the yarn traders will have to pass on the benefit because of stiff competition. Consumer industries will be able to reduce cost of production and they will be able to compete in a better way in furnishing textile market. Furnishing textile items like carpet, curtain, bedsheet, pillow cover and sofa cover are supplied to domestic as well as to foreign market.” It is believed to be smart move from Indian Railway to enter into textile sector for transportation service. Earlier, the Indian textile industry did not feel comfortable for transportation of yarn through railways because of sensitivity of the product. Industry sources said that railway was not able to handle such high value goods which need more care while transportation. But now, the Indian Railways has made special arrangement for transporting yarn. Some people from the industry said that time will test the ability of railways, if it succeeds to transport yarn consignment, textile sector will use the service in a big way.

Source: Fibre2 Fashion

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Vice President Inaugurates CITI-CDRA Golden Jubilee Celebrations

The Vice President, Shri M. Venkaiah Naidu today called upon all stakeholders to make concerted efforts to improve cotton yield and productivity in India to enhance farmers’ incomes. Expressing his concern over the low yield of Indian cotton compared to other major cotton growers in the world, Shri Naidu said that steps must be taken to guide the farmers through better research and by adopting best practices. Shri Naidu called for increasing the global competitiveness of Indian cotton textiles and “capitalize on our traditional strengths, shift to modern agronomic practices and consolidate our position as a global leader in the cotton industry”. Noting the importance of the textiles sector as the second-largest employer in the country after agriculture, Shri Naidu emphasized on improving farm productivity, increasing mechanization, upskilling textile workers, and hand-holding small firms to give a boost to the sector. Shri Naidu also suggested diversifying into specialty cottons such as the extra-long staple (ELS) cotton and organic cotton. The Vice President was inaugurating the CITI-CDRA Golden Jubilee Celebrations from Vigyan Bhawan, New Delhi today. Confederation of Indian Textile Industry (CITI) is a leading industry chamber of the textile sector in India and the Cotton Development and Research Association (CDRA) is the extension arm of CITI, undertaking various seed development and extension activities in the cotton sector. Referring to the importance of cotton to the Indian economy, the Vice President said that cotton also has a “great symbolic value to our civilizational heritage”. He recalled that cotton played a crucial role in our freedom struggle, starting with the ‘Swadeshi Movement’. He said that by connecting all sections of society, “cotton was one of the most important binding factors for people to fight against the British Raj”. Shri Naidu expressed his concern over that despite being the largest cotton producer (23%) in the world and having the highest area under cotton cultivation (39% of world area), the yield per hectare in India remained at a low of 460 kg lint per hectare when compared to the world average of 800 kg lint per hectare. To address this, he called for improving the planting density, taking up mechanization of cotton harvest and giving a thrust to agronomy research. Recalling the benefits of the first Technology Mission on Cotton, the Vice President said there is every need to renew the Mission in an upgraded format. “We need to improve our seed technology, increase yield, adopt global best practices, produce clean and highquality cotton and brand it better to improve the farmers’ income”, Shri Naidu observed. The Vice President noted that while India has a strong global footprint in cotton yarn, it has to improve its competitiveness in fabrics and apparel. He called for hand-holding small firms and upskilling textile workers to give a fillip to the sector. He said government schemes such as the Amended – Technology Up-gradation Fund Scheme (A-TUFS) and SAMARTH (Scheme for Capacity Building in the Textile Sector) are aimed at achieving these objectives. While noting India’s improvement in export competitiveness of traditional textiles, Shri Naidu said “we cannot ignore sunrise sectors such as technical textiles, which are seeing a rapid rise in demand across the world”. On this occasion, Shri Naidu conferred awards to excelling cotton scientists and farmers in CITI-CDRA Project Areas. He also released a Coffee Table Book – ‘Millennial Shades of Cotton’ at the event. Shri Piyush Goyal, Hon’ble Union Minister of Textiles, Commerce & Industry, Consumer Affairs and Food & Public Distribution, Shri T. Rajkumar, Chairman, CITI, Shri P. D. Patodia, Chairman, Standing Committee on Cotton of CITI-CDRA, Shri Rakesh Mehra, Deputy Chairman, CITI, Shri Upendra Prasad Singh, Secretary, Ministry of Textiles, Shri Prem Malik, Co-Chairman, Standing Committee on Cotton of CITI CDRA and other dignitaries were present during the event.

Source: india Education Diary

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Stakeholders demand implementation of textile sector policies

Stakeholders in the cotton, textile and garment (CTG) sector have called on the Federal Government to implement the industry road map policy which, according to them, is critical to the revival of textile sector in the country. The stakeholders in the value chain held a one-day seminar on national dialogue on the CTG policy in Abuja where they highlighted the need to increase cotton production, capacity of ginneries and textile companies in the country. The event was coordinated with the collaboration of the German cooperation agency, Deutsche Zusammennarbett, the European Union (EU) and Nigeria’s federal ministry of industry, trade and investment. Other key stakeholders are Cotton Production Merchant Association of Nigeria (COPMAN), Nigeria Textile Manufacturers Association (NTMA), Cotton Ginners (GAMAN). At the meeting, the president of National Cotton Association of Nigeria (NACOTAN), Achimugwu Anibe, said the implementation of the policy will not only enable stakeholders leverage the success, but will also enhance relationship among them. Recall that the Central Bank of Nigeria (CBN), mid last year announced plans to resuscitate the cotton textile and garment sector. The plan is to enable the country attain self-sufficiency in cotton production and create jobs, while enhancing the skills of Nigerians across the value chain of cotton production. Offering his perspective on ways to revive the sector, Anibe reiterated the stakeholders’ views that for industries in the value chain to survive, the government must consistently implement relevant policies. The NACOTAN president was confident that if provisions contained in the CTG roadmap were implemented, the sector would be able to surmount its numerous challenges. He said the seminar was a follow up to an earlier meeting held on Februrary 22, 2022 which called for fashioning of a roadmap for the implementation of the CTG policy. On his part, the president of Nigerian Textile Manufacturers Association (NITMAN), Folorunsho Daniyan said encouraging attendance by stakeholders underscores the importance which players in the industry attach to the issues affecting the sector. Executive secretary, Cotton Ginners Association of Nigeria, Samuel Oloruntoba, lamented the pitiable state of cotton ginner in the cotton value chain. He said Nigeria had close to 52 ginneries in the past but that only 21 are operational at the moment. “As a result, there is only 100 tonnes of cotton being ginned per annum instead of the potential of 600 tonnes. This translates to a loss in both capacity and benefits”, he said.

Source: Business Day

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Paramount Textile invests in power for business diversification

Paramount Textile PLC, a listed company belonging to Paramount Group, is diversifying its business portfolio in the power sector after faring well in the textile sector. Considering business prospective, Paramount Textile has now decided to invest in a solar plant by acquiring a 49% stake in Dynamic Sun Energy Private Ltd in Pabna. Shapoorji Pallonji Infrastructure Capital Company Pvt Ltd (SP Infra), a subsidiary of Shapoorji Pallonji Group of India, has an investment in Dynamic Sun Energy. The two companies together will build a solar plant to supply electricity to the national grid. Paramount Textile will invest in the plant from its own sources and bank finance. It is engaged in manufacturing the woven fabric that is consumed by the export-oriented garments industries in Bangladesh. The company produces high-quality woven fabrics which include 100% cotton yarn-dyed fabrics, cotton solid white fabrics, striped and check shirts and stretch fabric. Additionally, the textile company has already invested in two more power plants that have already been in production. According to company sources, the portfolio is being diversified keeping in mind the longterm plans and its future business because the Covid-19 pandemic has shown that it is not possible for a business to survive by relying on just one sector product. So even if one sector suffers, the business is being diversified with the aim of making a good income from other sectors. "The business portfolio is being diversified with a long-term plan. Not only this, the investment in the textile sector has also been increased. The existing production capacity of the textile sector has been almost doubled," said Md Robiul Islam, company secretary of Paramount Textile. "There will be a big jump in the company's revenue and profits in the future so that the shareholders will benefit from the investment," he added. Acquiring 49% in Dynamic Sun Energy shares Paramount Textile is a partner in the construction of a 100MW (AC) powered grid-tied solar PV power plant. The joint venture will acquire 49% of the total paid-up capital of Dynamic Sun Energy. The estimated project cost of the solar plant would be around Tk1,300 crore, according to a stock exchange disclosure published on Tuesday. The company has signed a 20-year agreement with the Bangladesh Power Development Board to supply electricity to the national grid. The company's tariff per unit of electricity has been set at $0.1195. 49% stake in Paramount BTrac Energy Paramount Textile owns 49% shares of Paramount BTrac Energy (PBEL) which had established a 200MW HSD fired engine based power plant at Baghabari of Sirajganj. The plant went into operation in February 2019. Paramount BTrac Energy, a special vehicle company, holds 51% and it will act as the lead & operating member. According to its annual report for FY21, the company has invested around Tk105.28 crore, and its profit was Tk37.28 crore. Purchased 80% of Intraco Solar Power's shares As a part of portfolio diversification and option for lucrative return, the company has executed an agreement for purchasing 80% shares of Intraco Solar Power Limited (ISPL) on 15 November 2020. It also signed a share purchase agreement with Intraco CNG for purchasing a 29% stake or 43,50,000 shares of Intraco Solar Power. Paramount Textile purchased the portion of Intraco CNG at a value of Tk18.48 crore. $85.45m investment to increase production capacity Last year, Paramount Textile invested $85.45 million or more than Tk700 crore (Tk86 per dollar) to increase the production capacity in order to increase the company's revenue by $7 million per month, the company said. The company had businesses in yarn dyeing, weaving, solid dyeing, and a digital printing unit. However, with the new investment, the knit fabrics unit has been introduced, which has a production capacity of 400 tonnes per month. In addition, Paramount Textile has increased the production capacity of existing units. Md Robiul Islam said, "The main focus of the company is in the textile sector. The new investment will have a big impact on the company's revenue." Profit increased despite income drop Although the revenue of Paramount Textile has decreased a little in the fiscal 2020-21, the profit has increased. For this, the company has increased the dividend by 10% over the previous year. Paramount Textiles has given 20% cash and 5% bonus shares to the shareholders in FY21, compared to 15% cash and 5% bonus shares in the previous year. In fiscal 2020-21, its revenue was Tk502.07 crore, which is about 2.58% less than the previous year. After paying taxes, the company had a net profit of Tk66.19 crore, up from Tk65.88 crore in the previous year.

Source: TBS News

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China’s climate goals: Beijing aims to recycle 25 per cent of all textile waste, increase recycled fibre output by 2025

• Country hopes to greatly increase its recycling capability and have a waste textile recycling system ‘initially established’ by 2025 • Beijing’s guidelines show it plans to focus on raising public awareness and acceptance of upcycled fibres, Novetex Textiles’s Ronna Chao says China aims to recycle 25 per cent of all its textile waste and churn out 2 million tonnes of recycled fibre by 2025 as part of its push to peak its carbon emissions by 2030 and become carbon-neutral by 2060. It hopes to greatly increase its recycling capability and have a waste textile recycling system “initially established” by 2025, according to a document jointly released by the National Development and Reform Commission (NDRC), the ministry of industry and information technology and the ministry of Commerce on Monday. According to the document “Implementation Opinions on Accelerating the Recycling of Waste Textiles”, the government hopes to have in place by 2030 a relatively complete system achieving a recycling rate of 30 per cent for waste textiles and producing 3 million tonnes of recycled fibre. “With the continuous improvement in people’s living standards, more and more used clothing [is being put to waste], and the problem of recycling textile waste has become increasingly prominent,” Zhao Kai, vice-chairman of the China Association of Circular Economy, said in a statement on the NDRC’s website In 2020, China produced around 22 million tonnes of textile waste, and had a recycling rate of around 20 per cent, according to the NDRC. Around 1.5 million tonnes of recycled fibre was produced from textile waste that year. Monday’s document will help to promote the development of a resource and waste material recycling industry and holds “great significance” in helping China achieve its goals of carbon peaking and carbon neutrality, Zhao said. Measures outlined in the document include promoting green and low-carbon production in the textile industry; improving China’s recycling network; and promoting the comprehensive use of textile waste. Awareness among producers and consumers of the importance of recycling was also expected to be significantly raised by 2030, according to the document. Beijing’s guidelines show that it did not simply want to recycle old garments, but also plans to focus on raising public awareness and acceptance of upcycled fibres, said Ronna Chao, chairwoman of Novetex Textiles and creator of the Billie System, which turns textile waste into usable yarn. “Recycling garments into low-quality scraps in huge quantities is not what the world is looking for today. Promoting and supporting the production and consumption of upcycled products that also satisfy our needs in terms of style, functionality, comfort and pricing will contribute significantly to a circular economy,” Chao said. The textile supply chain was the source of multifaceted environmental degradation, and recycling was key to improving the sustainability of textile production. About 2,700 litres of water are required to produce a single cotton T-shirt, enough to sustain one person for 900 days, according to calculations made by the World-Wide Fund for Nature. Every tonne of recycled cotton yarn saves half a hectare (1.2 acres) of agricultural land, cuts 6.6 tonnes of carbon dioxide emissions and conserves 2,783 cubic metres of irrigation water, according to a paper by researchers at the Hefei University of Technology, published in 2020 in the International Journal of Life Cycle Assessment. Young consumers were also becoming increasingly aware of the unsustainable nature of the fashion industry and its supply chain, according to Credit Suisse’s “The young consumer and a path to sustainability” report in February. Almost 60 per cent of the 10,000 consumers aged between 16 and 40 from 10 countries surveyed said they would swap to sustainable fashion alternatives, while around a quarter said they intended not to buy unsustainable fashion items at all in the future, Credit Suisse said.

Source: SCMP

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Stable growth for VN apparel sector

Despite the devastating impact of the Covid-19 pandemic, Vietnam’s textile and garment industry has seen stable growth, recording an export turnover of $8.84 billion in the first quarter of 2022 with an increase of 22.5 per cent against the same period last year. In many industries, especially labour-intensive ones like the textile and garment industry, labour shortages during the Covid-19 pandemic have directly impacted apparel manufacturers’ production and business activities. Tran Tuong Anh, deputy director-general of Hoa Tho Textile and Garment JSC, said that early last month, 1,719 employees at her company were tested positive for Covid-19, accounting for 15 per cent of the firm’s total staff. With a large number of employees taking off from work, the company encountered many difficulties in arranging its production plans. In addition, after returning to work, their health remained poor, and they could not keep up with daily work, leading to low labour productivity. Therefore, the company was forced to negotiate with customers to reschedule delivery times, rearrange production plans, and prioritise urgent orders first. Employees who previously worked indirectly now have been directly involved in production. The company has also arranged different workplaces and canteen for those who tested positive for Covid-19 to work once health authorities approved it, said Tuong Anh. Garment 10 Corp has affiliates in many provinces and cities. During the pandemic, the company still maintained its production as many workers tested positive for Covid-19, said Bach Thang Long, the corporation’s deputy director. Meanwhile, 8-3 Textile Co Ltd struggled with labour shortages worsened by the crush of new Covid cases forcing many into isolation. However, the company’s board of directors were flexible in changing shifts and rotating workers to ensure production and business activities. Over the past two years, particularly in the fourth wave of the pandemic, apparel companies have always faced difficulties due to disruption of the global supply chain, leading to a temporary closure of many companies. Hoang Van Linh, chairman of Aligro JSC, said fabrics were based on the seasons. Therefore, his company prioritised garment orders and had enough raw materials. To cope with uncertainty during the pandemic, the company determined to ensure social and welfare interests for employees to make them feel secure at work, said Linh. A representative of Hoa Tho Textile and Garment JSC said workers were required immediately to leave work for treatment if they were infected with Covid-19. After recovering from illness and returning to work, employees were supported with finance and meals for two weeks. To deal with labour shortages due to isolation, the company has also been flexible in changing shifts and rotating work to ensure stable production. Vietnam has changed its strategy from a Zero Covid policy to safe and flexible adaption and effective control of the Covid-19 pandemic while recovering and developing the economy. Textile and garment manufacturers under the Vietnam National Textile and Garment Group have received orders until the end of the third quarter and the whole year, thanks to their flexible responses during a pandemic and the robust responses of relevant bodies. The industry is expected to thrive and earn $43 billion in exports this year. Manufacturers should seize opportunities and work with partners to tap into the growth potential of the world’s textile and garment market.

Source: Phnom Penh Post

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UK GDP grows by 0.1% in Feb after 0.8% growth in Jan

Monthly real gross domestic product (GDP) of the UK is estimated to have grown by 0.1 per cent in February 2022, following 0.8 per cent growth in January, and is now 1.5 per cent above its pre-coronavirus level (February 2020). The main contributor to the recovery from February 2020 to February 2022 was human health and social work activities followed by professional, scientific and technical activities and information and communication. GDP grew by 1 per cent in the three months to February 2022, the Office for National Statistics said in a press release. Output in consumer-facing services, that includes retail trade, grew by 0.7 per cent in February 2022, following 2 per cent growth in January (revised up from 1.7 per cent). Consumer-facing services are now 5.2 per cent below their pre-coronavirus levels, while all other services are 4 per cent above. Services grew by 0.2 per cent and was the main contributor to February's growth in GDP; this was partially offset by production, which fell by 0.6 per cent.

Source: Fibre2 Fashion

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