Reliance Industries Limited (RIL) has slashed the price of polyester spun fibre (PSF) by ₹7 per kg after reduction of prices of raw material like purified terephthalic acid (PTA), monoethylene glycol (MEG) and MELT. RIL is the largest manufacturer of PSF in India, so the market follows its prices. The prices are also influenced by fluctuation in China. According to the market sources, RIL has reduced PSF price to ₹120 per kg. PSF is the raw material for polyester and polyester-cotton blended yarn which is economical for the textile industry. Last Friday, PTA price was reduced by ₹9.40 to ₹85.30 per kg. MEG came down by ₹1.70 to ₹55.10 per kg, while MELT was reduced by ₹8.66 per kg to ₹92.09 per kg.
Source: Fibre 2 Fashion
A textile park will come up at Karnataka’s Khursapur village of Shiggaon taluk in Haveri district. State chief minister Basavaraj Bommai last week laid the foundation stone for the park and a garment factory of Texport Industries Pvt. Ltd. there. Infrastructure facilities would be created in three phases for the textile units and readymade garment factories. The state government has provided ₹25 crore for the first phase of the project, that will come up covering over 59.34 acres. The Texport unit would be set based on the anchor-promoter model with an investment of ₹42 crore, media reports from the state said. “In the coming three to four years, every taluk of the state will have a textile park for the help of local farmers and their educated children,” the chief minister said. "In the Shiggaon Textile park, around 10,000 jobs will be created, where most of the locals will be employed. In the first phase, around 3,000 jobs will be created and in the second phase, the remaining jobs will be created by September 2023. Like this, around 5 lakh women of the state will be getting jobs in their nearby textile factories in the coming days," he added.
Source: Fibre2fashion
Ludhiana: Almost a week after Punjab chief minister Bhagwant Singh Mann scrapped the textile park project at Mattewara in Ludhiana, city businessmen have said a textile park should not be shifted out of the district. They said it should be set up at a place in Ludhiana where there is ample government land which is not a forest area or panchayat land. Harish Kairpal, president, Ludhiana MSME Association, said, “The scrapping of textile park has sent shock wave among the textile and garment industry. The move may push back the progress of the industry by several years. So, we felt that the government needs to revive the project at the earliest in Ludhiana district itself. There are several areas like Malerkotla Road, Doraha to Chandigarh Road, Raikot where there huge chunks of land available but there are no issues like forest area or panchayat land.” Vinod Thapar, chairman of the Knitwear and Textile Club, said, “It is our request to the CM that no time should be wasted in identifying the land for a textile park. Despite several persons, even those within the Aam Admi Party, demanding that textile park should be shifted to some border area, no such move should be made. In case the textile park is set up far from Ludhiana, it would defeat the purpose of this project as all the raw material producing units, manpower and allied service providers exist in Ludhiana. By default, the textile Park should come up in Ludhiana. Thapar said, “We are of the opinion that CM should form a committee of officials of the state government which should also have representatives from the textile and garment industry. This committee should work on identifying and finalising the suitable land for the textile park project, which should be free from any controversy.”
Source: Times of India
A textile park will come up at Karnataka’s Khursapur village of Shiggaon taluk in Haveri district. State chief minister Basavaraj Bommai last week laid the foundation stone for the park and a garment factory of Texport Industries Pvt. Ltd. there. Infrastructure facilities would be created in three phases for the textile units and readymade garment factories. The state government has provided ₹25 crore for the first phase of the project, that will come up covering over 59.34 acres. The Texport unit would be set based on the anchor-promoter model with an investment of ₹42 crore, media reports from the state said. “In the coming three to four years, every taluk of the state will have a textile park for the help of local farmers and their educated children,” the chief minister said. "In the Shiggaon Textile park, around 10,000 jobs will be created, where most of the locals will be employed. In the first phase, around 3,000 jobs will be created and in the second phase, the remaining jobs will be created by September 2023. Like this, around 5 lakh women of the state will be getting jobs in their nearby textile factories in the coming days," he added.
Source: Fibre2fashion
According to media reports, cotton price is expected to dip to Rs 60,000 per candy by December 2022 because of the slump in demand and the wait-and-watch strategy of the market players Shares of textile companies were in focus on Monday as they rallied up to 19 per cent on the BSE in the intra-day trade amid heavy volumes on expectation of fall in cotton prices due to slump in demand and increase in cotton sowing. Vardhman Textiles (VTL) surged 19 per cent to Rs 318.05 on the BSE on the back of over 10-fold jump in trading volumes. A combined 4 million equity shares have changed hands on the counter till the time of writing of this report, as compared to an average sub 40,000 shares that traded in the past two weeks on the NSE and BSE.
Himatsingka Seide, meanwhile, soared 11 per cent to Rs 121.60, followed by Nitin Spinners (8 per cent to Rs 215), Ambika Cotton Mills (8 per cent to Rs 1,740), Welspun India (7 per cent to Rs 75.45), Gokaldas Exports (6 per cent at Rs 341), Nahar Spinning Mills (5 per cent at Rs 317.85), and Trident (5 per cent at Rs 38). In comparison, the S&P BSE Sensex was up 1.2 per cent at 54,361 points at 02:00 PM. The stock prices of these companies had declined by up to 50 per cent from their respective 52-week highs, due to rising raw material cost, mainly cotton. Inflation on the raw material, energy and supply chain fronts have had an adverse impact on the operating profitability of textile sector in FY22. Elevated cotton prices have been the pain point for Indian textile exporters. Although the management of companies expect inflationary headwinds to continue in the near-term, outlook for the industry continues to be optimistic. According to a Times of India report, after touching the lifetime high of Rs 110,000 per candy (356kg) in recent months, cotton price is likely to dip to Rs 60,000 per candy by December 2022 because of the slump in demand and the wait-and-watch strategy of the market players. Cotton prices have come down to about Rs 80,000-Rs 85,000 and forward bookings for October-November are priced at Rs 66,000-68,000 per candy. The Spinners Association Gujarat (SAG) believes that by December, cotton prices will go below Rs 60,000, the newspaper reported. The likelhood of an increased cotton production (at least 10 per cent higher sowing) in the ensuing year is likely to further reduce the prices of cotton. We believe that lower cotton prices would be beneficial for the entire textile value chain and should lead to improved utilisation and better profitability for all players in the cotton textile products, ICICI Securities said in a note.
Source: Business Standard
India is one of the top 8th trading partners of Vietnam while Vietnam is 15th largest trading partner of India and fourth in Southeast Asia. In 2021, bilateral trade turnover reached $ 13.2 billion for the first time. It is expected to reach the target of $ 15 billion set by the leaders of the two countries in 2022. Vietnam and India have a long-standing traditional relationship and trade and investment are one of the key pillars of the bilateral relationship. India is one of the top 8th trading partners of Vietnam while Vietnam is 15th largest trading partner of India and fourth in Southeast Asia. In 2021, bilateral trade turnover reached $ 13.2 billion for the first time. It is expected to reach the target of $ 15 billion set by the leaders of the two countries in 2022. The main Vietnamese exported products to India are mobile phones and components, computers, electronic products and components, chemicals, plastics, rubber, coffee, pepper, cashew. The main Indian exported products to Vietnam are iron and steel products, textile materials, fishery, corn, pharmaceutical and pharmaceutical raw materials; auto spare parts. On the occasion of the 50th anniversary of the Vietnam - India Diplomatic relations, the Ministry of Industry and Trade, Government of Vietnam organised a business delegation led by Do Quoc Hung, Deputy Director General of the Ministry and 20 business communities in multi-sectors to India from July 18th to 22nd. The delegation consists of 20 enterprises in the various fields such as agricultural products(Coffee, Rice, Pepper, Tapioca Starch, Desiccated Coconut, Tea, peanut oil, dry instant seed, black flute mist, dried fruits, vegetables); food & beverage (instant canned processed foods, nutritional drink, food supplements); industrial products (electric fans and fan motor, mechanical products and auxiliary industrial equipment); chemicals and chemical products (compound fertilizers, water purification materials and chemicals); building materials (limestone, resin beads, white limestone powder) textile and garment, and textile materials; pharmaceuticals; handicrafts. During the delegation's visit to India, the Ministry and Embassy conducted a series of business forums and meetings in New Delhi, Agra and Jaipur. This platform provides an opportunity to the business men from both the countries to interact one to one in various sectors like food processing, fast moving consumer goods, cosmetics, handicrafts, home furnishings, agriculture products, etc., Both India and Vietnam have great potential in these sectors. There are several initiatives being taken by the Vietnam government to attract investment. The recent changes in the FDI policies will attract investors and are optimistic that many investment-friendly policies will be implemented. The startup ecosystem with the right direction and reforms has the potential to grow.
Source: Economic Times
The rupee has dropped nearly 7% against the US dollar in the year to date, falling to a low of Rs 79.96 to a dollar last week and even breaching the psychological 80- mark in the over-the-counter and derivatives markets. Nomura expects INR to fall to Rs 82 in the third quarter of this calendar year. In general, net exporters will gain as they will receive more rupees for their dollars while net importers will need to pay more to buy dollars for imports. Those with large foreign loans will also see rupee interest costs rise. ET looks at the sectors impacted the most. Information Technology: (Thumbs up) IT companies are the biggest gainers as they bill most clients in US dollars. Americas, including the US, contribute about 50-60% of revenue. Their rupee earnings rise as the Indian currency falls. Impact: A 100-bps fall in rupee against dollar translates into a 30-bps operating margin benefit 115-basis point operating margin expansion on average for IT cos Some of the gains are being offset by other cross-currency headwinds 2.Pharma: (Thumbs up) A net gainer sector as it’s a big exporter though raw materials are substantial imports. In FY22, India exported $24.62 worth of products, of which about 30% is to the US. Raw material imports were about $4-$5 billion. Impact: Exporters to the US stand to gain the most INR fall vs USD to add 0.1-0.15% to EBITDA margins Domestic-focused formulation, API players to face cost escalation 3.Garments: (Thumbs up) Sector to benefit given the significant exports and most input costs are locally sourced Impact: For every 1% fall in Rupee, profit increases by 0.25-0.5% Rupee fall may also make exports more competitive 5: Oil & Gas (Thumbs down) The most adversely impacted sector as India imports over 85% of oil and half of the gas it consumes. Impact: Purchase costs to rise for crude importers ( NSE 0.14 % , NSE -0.63 % , NSE - 0.68 % , NSE 0.18 % , Nayara), as well as gas importers ( NSE -0.03 % , GSPC) Margins to take a hit if pass through not allowed Local producers such as NSE 1.42 % , Oil India, NSE 0.29 % , RIL as well as fuel exporters like RIL and Nayara would see higher rupee realization 6. Renewable energy: (Thumbs down) Indian solar plants depend heavily on imported solar cells and modules. Impact: Project costs would rise, tariffs higher in future bids Margin compression for upcoming projects Every Re 1 fall vs Dollar leads to 2 paisa/unit increase in tariff/ 7. Steel: (Thumbs up) India exports between 10-15% of its steel production Impact: Makes Indian steel more competitive globally Balances the impact of the recent export duty on steel If INR falls to 85 vs USD, entire 15% duty will be absorbed.
Source: Economic Times
Karnataka Chief Minister Basavaraj Bommai stated that the state government intends to establish textile parks in all taluks within three to four years. After laying the foundation stone for the new textile park in Khursapur village of Shiggaon taluk on Saturday, Bommai said, "The textile industries create more employment, and the world is looking at India in this sector." Therefore, the government is planning to start textile industries in rural areas. "In the coming three to four years, every taluk of the state will have a textile park for the help of local farmers and their educated children," he added. The textile park that is to come up in Khursapur village will be constructed in an area spread over 59.34 acres. The entire facility would be setup in three phases for the textile units, and readymade garment factories . A sum of Rs 25 crore has been provided by the state government in the first phase. The new textile park will help to create job opportunities for more than 10,000 people. It is expected that in the first phase, around 3,000 jobs will be created, and the remaining jobs will be created by September 2023. Haveri district in-charge minister Arebail Shivaram Hebbar, agricultural minister B C Patil, MLC Basavaraj Horatti, MLA Virupakshappa Ballari and others were present. The state government is also considering mulling a new agriculture policy under which agriculture will be developed as an industry. (KNN Bureau)
Source: KNN
As the top recipient, India was expected to be one of the worst affected - with a projected decline of 23% - as the host country basket of the diaspora was vulnerable to the twin effects of economic slowdown and slump in oil prices. Remittances from the Indian diaspora in the US surged through the Covid months that saw a contraction in inflows from the traditional Gulf stronghold as jobs, contactintensive and outdoor-oriented, were lost in West Asia through the initial shutdowns. Research by central bank economists showed that the US surpassed the UAE as the top source country, accounting for 23% of total remittances in 2020-21. "This corroborates with the World Bank report (2021) citing an economic recovery in the US as one of the important drivers of India's remittances growth," said the research paper by Soumasree Tewari and Ranjeeta Mishra in the Department of Economic and Policy Research, Reserve Bank ofIndia (RBI). "A lot of the remittance flow has got to do with the jobs and economic conditions in the host countries," said Madan Sabnavis, chief economist at NSE 3.80 % . "Remittances from the Gulf region were almost nil because of the slowdown and many had to face job losses. But in the US where most Indians are employed in IT and other whitecollar jobs, the employment situation was more stable during the pandemic restrictions. Besides, the US government also helped its individual residents with cash transfers that made it easier for them to financially support their relatives back home." As the top recipient, India was expected to be one of the worst affected - with a projected decline of 23% - as the host country basket of the diaspora was vulnerable to the twin effects of economic slowdown and slump in oil prices. Defying the early projections, however, India remained the top recipient, accounting for 12% of total global remittances, recording a marginal decline of 0.2% in 2020 and a growth of 8% in 2021. "It implies that countries with a severe impact of Covid-19 received greater support than others for family maintenance from the overseas diaspora," the RBI economists said. "This finding validates the altruism motive of remittances." The views are of the authors and not of the RBI. Inward remittances as reflected in private transfers in India's balance of payments amounted to $89 billion in FY22.
Source: Economic Times
Several micro, small and medium enterprises (MSMEs) have also been impacted by a lack of fuel such as lignite Stakeholders of industry in Gujarat have estimated losses of around Rs 5,000-6,000 crore, even as the state government surveys the impact of torrential rain and floods in several parts. According to the Gujarat Chamber of Commerce and Industry (GCCI), heavy rainfall leading to flooding and disruption of goods movement and factory production have been severe in southern, western and parts of central and northern Gujarat. Heavy rains have already caused 207 major dams and reservoirs — including the Sardar Sarovar Dam — in the state to reach over 50 per cent capacity, according to a state government communique. Of these, 42 dams and reservoirs are either 100 per cent full or overflowing, leading to the state government issuing high alerts. On July 10 alone, several parts of Ahmedabad were inundated with the city receiving a record 115 mm rainfall in just three hours. The Indian Meteorological Department (IMD) had forecasted heavy to very heavy rainfall in Ahmedabad and other parts of Gujarat for the last week. Already, Gujarat has received over 50 per cent of the average seasonal rainfall of 850 mm. “The industry had earlier estimated losses to the tune of Rs 1,000-1,200 crore in Ahmedabad alone. With southern Gujarat, especially industrial centres like Surat, Vapi and Navsari, continuing to be battered by heavy rains and flooding, the losses could be even higher at Rs 2,000 crore. In addition, western and northwestern Saurashtra regions, too, may have seen similar impact,” said Pathik Patwari, president of GCCI, estimating the total losses in these regions at a cumulative Rs 5,000-5,200 crore. Similarly, transporters in the state, too, have estimated a loss of more than Rs 500 crore during the July 11-16 week. According to Akhil Gujarat Truck Transport Association president Mukesh Dave, this is not only due to rains across cities and interiors of Gujarat damaging roads but also because more than 5,000 trucks were stuck on highways in parts of Maharashtra and south Gujarat. “The turnaround of trucks has been disturbed with inter-state movement between Maharashtra and Gujarat getting delayed by an average of three to four days due to rains, water logging and even landslides in crucial places like Dharampur and Saputara in Gujarat through which the north-south corridor passes. The freight transport in Gujarat alone could be facing losses of over Rs 500 crore,” said Dave. Several micro, small and medium enterprises (MSMEs) have also been impacted by a lack of fuel such as lignite. “With flooding in Kutch, there has been hardly any loading of lignite on trucks and dispatches, and connectivity between Kutch and rest of Gujarat has been hampered. Overall, the Mumbai-Ahmedabad route sees on average 11,000 trucks a day but 50-60 per cent of movement was hampered last week. With rainfall subsiding now over the weekend, things are getting back to normalcy since Monday,” Dave added. According to Jitu Vakharia, president of South Gujarat Textile Processors Association, with lignite mining taking a hit due to heavy rainfall this year, more than 1,000 textile, chemical and other units that use the fuel across cities like Surat, Ahmedabad and Bharuch have seen a decline in production. “Gujarat Mineral Development Corporation, which is the major supplier of lignite, has not been able to dispatch due to heavy rains last week (July 11-17) thereby impacting production of units across sectors,” Vakharia added. On its part, GCCI has written to the Insurance Regulatory and Development Authority of India to direct general insurance companies to release at least 75 per cent of claim disbursals immediately and release the rest after paperwork and review is over. “Moreover, given the extent of the impact of rains, we have also requested for more surveyors to be deployed for quicker assessment of losses for swift claim disbursals,” Patwari added. However, according to S G Savalia, principal and dean-agriculture of Junagadh Agricultural University, a detailed survey of the state government is awaited for assessing the impact on crops. “Wherever pre-monsoon sowing has taken place, especially in crops like groundnut, and where there hasn’t been any flood-like situation, the rains have been largely beneficial. Nonetheless, the real impact would only be known when the government completes its survey,” Savalia added. Prime Minister Narendra Modi has, meanwhile, assured assistance to Gujarat, while Chief Minister Bhupendra Patel carried out an aerial survey of Chhota Udepur and Narmada districts recently.
Source: Business Standard
Brokerage firm Morgan Stanley today reduced its forecast for India's GDP growth estimate by 0.4 per cent to 7.2 per cent for the FY23 due to slower global growth. It further said the growth will further slow down to 6.4 per cent in the FY24, which is 0.3% lower than the earlier forecast. "We pare our GDP forecasts by 0.40 per cent to 7.2 per cent for FY23 and by 0.30 per cent to 6.4 per cent for FY24 on the back of slower global growth," the American brokerage firm said in its latest estimates. According to the other major estimates including the RBI, the GDP growth rate in the FY23 is likely to be over 7 per cent. RBI has also estimated the GDP growth rate at 7.2 percent for the current fiscal. We see downside risks emanating from a weaker than expected global growth trend, supply-side-driven commodity price shock and faster than warranted tightening of financial conditions," the brokerage said in a note. The brokerage said it expects global growth to slow down to 1.5 per cent for the quarter ended December 2022 from 4.7 per cent registered in the year-ago period, which will have an impact on the export growth for India. However, it said that the domestic demand will provide a partial relief to the impact of the slowing export growth, noting that the government's supply-side response and the reopening vibrancy to partially counter the downside. The ongoing moderation in commodity prices is improving the near-term trajectory for macro stability and also cut its FY23 average inflation target to 6.5 per cent against 7 per cent earlier. On the inflation front, the agency said "However, we do not expect much change in inflation beyond FY23 and expect it to average 5.3 per cent in FY24. Nearterm risks to the inflation trajectory stem from changes in commodity prices and/or domestic food prices." The Reserve Bank will continue with the policy normalisation measures, and the repo rate will be at 6.5 per cent by April 2023 against 4.9 per cent at present, it said.
Source: Economic Times
Powerful consortium aims to demonstrate circular systems at scale. Accelerating Circularity Europe is moving into its first trials phase which will focus on post-consumer and post-industrial polyester textiles feedstocks as sources for both mechanically and chemically recycled new fibres. The organisation’s mission is to design and implement commercial systems in which textile waste is repurposed as new raw materials and for the last year, it has been working with partners to research, map and identify expertise and infrastructure to accelerate the move to circular systems “According to the EU Commission Strategy, by 2030, textile products placed on the EU market will be long-lived and recyclable, and to a great extent made of recycled fibres,” said Karla Magruder, Accelerating Circularity founder and president. “The circular textiles ecosystem will be thriving, driven by sufficient capacities for innovative fibre-tofibre recycling, while the incineration and landfilling of textiles will be reduced to the minimum. Our trials are completely aligned with this strategy. “Our work has been based on the collaborative efforts of more than 80 members of our working groups representing all levels of the value chain from the EU-27, plus members from Norway, Switzerland, UK, Morocco and Turkey. Our goal with the textile-to-textile polyester trials is to demonstrate circular systems at scale so our participants will be able to really demonstrate the feasibility.” Accelerating Circularity Europe’s system trials for polyester partners include Amazon, Antex, Avery Dennison, Brav, Covation Biomaterials, Craghoppers, Elis Textil Service, Enviu, Erema Group, European Outdoor Group, Eurotex, GIZ/Partnership for Sustainable Textiles, Gr3n, Jack Wolfskin, Oberalp, Recyclatex, Reverse Resources, Sympatex, Texaid, Vaude, WWF and Zalando. “To effectively close the loop of textile waste, at least national or even better international collection systems and infrastructures for end-of-life textiles have to be established,” said Martin Mayershofer, R&D manager at Sympatex. “Accelerating Circularity Europe systems trials for polyester will bring various players of a future circular textile value chain together to test and validate polyester fibre-to-fibre recycling at scale.” “Accelerating Circularity Europe has brought together the top minds in the European design and textile markets to develop real, achievable solutions that will sustainably change the apparel industry for the better,” added Regina Goller, director of fabric and trim management apparel for Jack Wolfskin.
Source: Innovation in Textiles
Vietnam’s export of textiles and garments to Japan reached nearly $1.67 billion in the first half of 2022, as per the latest data from the General Department of Customs. Other groups of export goods valued at more than $1 billion were machinery, equipment, tools, and spare parts ($1.364 billion) and means of transport and spare parts ($1.2 billion). Vietnam’s exports to Japan went up to $11.38 billion in the first half of 2022, which was a nearly 13 per cent rise over the same period last year. On the other hand, imports from Japan touched $12 billion, which is an increase of 10.6 per cent year-on-year. Japan is Vietnam’s fourth biggest trade partner after China, the United States, and South Korea. In 2021, bilateral trade between Vietnam and Japan totalled up to almost $43 billion, of which Vietnam’s exports were estimated to be $20.13 billion and imports were pegged at more than $22.8 billion.
Source: Fibre2fashion
The country’s apparel export industry is facing a “serious threat” due to a crippled economy resulting from a sovereign-debt crisis and ensuing political instability, according to a local manufacturing association leader. Over recent decades, the island nation has become an increasingly important production and sourcing hub for global fashion brands but the crisis beginning in 2019 has culminated in protests, looting and violence in the streets this month, raising concerns for the future of the sector. Police in Sri Lanka’s commercial capital Colombo imposed a curfew after firing tear gas and using a water cannon on protesters who blame former president Gotabaya Rajapaksa for what has become the country’s worst economic crisis since independence from Britain in 1948. Rajapaksa resigned on Thursday. The country’s manufacturing purchasing managers’ index (PMI) declined 6.2 points last month compared to May, according to the Central Bank of Sri Lanka. The monetary authority said fuel shortages have affected production levels directly and indirectly due to transportation challenges. Many export-orientated manufacturers have witnessed lower than anticipated orders as foreign buyers worry about the fragile political and economic condition and possible disruptions to order fulfilment. Kolonna Manufacturing chief Ranjith Koralage, earlier this year said his facility, which produces garments for Levi’s, Puma, and Victoria’s Secret, is one of many that is having trouble meeting its production goals because of fuel shortages, power outages, and escalating expenses. “Owing to unprecedented national economic mismanagement, this sector, which has long served as a fundamental pillar to the Sri Lankan economy, is now under serious threat,” said Yohan Lawrence, secretary general of the country’s Joint Apparel Association Forum. Sri Lanka’s apparel export industry accounted for approximately 44 percent of total exports, providing about 33 percent of the manufacturing employment in the country, according to the US International Trade Administration. “Any plan for economic revival must prioritise support to apparel manufacturers large and small and leverage this strength to help stabilise the Sri Lankan economy,” Lawrence added. Yet despite the crisis, some investors are betting on the resilience of Sri Lanka’s apparel industry. “We have not reduced our sourcing from Sri Lanka,” said Sandro Veronesi, president of Italy’s lingerie retail chain Calzedonia. “We are increasing the volumes that we source from this country.” Sri Lanka’s Board of Investment (BOI) told media outlet Just Style it has secured agreements worth $76 million for new investments and expansions in the apparel and textile industry for this year. “We have been receiving multiple queries regarding the availability of suitable land from investors looking to further expand their apparel manufacturing plants in Sri Lanka since many of them have seen an increase in orders,” said Renuka Weerakone, director-general of BOI.
Source: Business of Fashion
The rationing of electricity will hamper industrial production, as the industry is already facing a shortage of gas. If quality power supply decreases, that might take a toll on industries as it will increase the cost of doing business. The government may ensure quality supply of energy for industries aiming to minimise the cost of production. In the textile industry, if we have to shut units for once, that causes all raw materials to be ruined in the process. The industry has no capacity to adopt this additional cost, as the raw materials price has already been hiked 40%. This will affect the price of products and in turn take a toll on the garment industry as their raw materials price will increase further. That will hit our competitive advantage in the country. VAT on solar panels also hurts its uses, although those have the potential to be another alternative source of renewable energy. As per an independent estimation, Bangladesh has potential to produce up to 32,000 megawatts from solar systems. Also, major usage of gas is in the boiler units for textiles mainly. Solar option is not viable for this as heavy large capacity boilers cannot run using solar. Previously the prime minister had encouraged the use of step-down power from the national grid. But the quality of electricity is not good enough for industrial use on a large scale as it is prone to fluctuations which results in damage to machinery. If it was of good quality then reliance on gas and LNG would have come down in industrial units.
Source: TBS News
After depending on cheaper Chinese imports that ruined South Africa’s farmers and producers, major fashion retailers in the country want to source fabrics from the domestic market. Mr Price, Truworths and Foschini are some such retailers that have committed to domestic procurement, which could resuscitate the country’s farmers and manufacturers.
The issue came up for discussion late last month during the Africa Textile Talks panel discussion. The discussion centred around farm-to-fashion strategies, highlighting the importance of locally-produced apparel, and reigniting the sustainable fashion philosophy, according to a report in a South African newspaper. Farmers, producers, designers and retailers benefitted from a thriving cotton textile industry in South Africa, but that changed when South Africa opened to trade with China in the late 1990s. As retailers started importing cheaper fabric and clothing from China, the demand for local production reduced and the domestic manufacturing industry's capacity sharply dropped. From around 20 cotton spinning plants in the early 2000s, the country had just four in early 2010s. Cotton lint output had fallen by more than 90 per cent by 2012. Natasja Ambrosio, head of sustainable value chain for cotton at the Mr Price Group, said Mr Price's push towards procuring locally-farmed cotton started in 2013 when it received criticism for destroying the domestic cotton industry by importing from China. Ambrosio said most of its procurement had shifted to Africa in recent years, with up to 75 per cent of some of Mr Price's businesses relying solely on domestic production.
Source: Fibre2fashion
Business leaders fear that the rationing of electricity through rolling power outages for one hour every day might feed into their already-increased business costs. The decision to offset the power generation deficit following the operation suspension at diesel-based power plants has come at a time when a number of industries, such as textiles, steel, and cement, are already operating with reduced capacity because of gas supply shortages, they point out. The area-based load shedding will take them out of the frying pan into the fire, they say, expressing worries. Great Wall Ceramic Industries Ltd, the country's largest tiles manufacturer, has drastically reduced its production owing to low gas pressure. Md Shamsul Huda, vice-president at Bangladesh Ceramics Manufacturing and Exporters Association and managing director of Great Wall Ceramic, told The Business Standard, "We kept our factory closed for 15 days in June owing to low gas pressure. We are somehow running the factory on a single shift only." The one-hour recurring blackout will put them into more trouble, he said. Kamruzzaman Kamal, director (Marketing) at Pran-RFL Group, "If we face power outages, our production will be hampered, which will put a negative impact on our exports." He demands that the government keep the industrial sector out of the purview of the rolling power outages. Seeking anonymity, a leading textile factory entrepreneur told TBS that gas pressure has now come down to 1.5-3.2 psi against the demand for 15 psi. That is why their production has drastically reduced. However, talking to TBS, Kutubuddin Ahmed, chairman at Envoy Textile Ltd, said the electricity rationing decision comes as part of a crisis management policy by the government. "Industries will be able to cope with an hour of load shedding by captive power but we should go back to full supply of electricity as soon as possible." Entrepreneurs should prioritise the country over their businesses, he also said. Mohammad Ali Khokon said, "Every country is facing such a crisis, we should go for austerity to run the wheels of industries." "We must take decisions to keep industries alive, otherwise the economy will not survive," he added.
Source: TBS News
