Few counts and varieties of polyester and polyester-cotton yarn were traded higher today in Ludhiana owing to better demand. The hike in price of raw material of polyester staple fibre (PSF) by Reliance Industries Limited (RIL) supported prices of polyester value chain. But ease in freight charges and US dollar may cause decline in PSF prices.
A Ludhiana based trader told Fibre2Fashion, “Demand improved in polyester and PC yarn market. Domestic market focused Ludhiana market ultimately witnessed better buying. RIL had increased PSF raw material prices due to stronger dollar and other factors. The market leader of PSF and its raw materials had increased prices by up to 2.5 per cent for this week.” However, there was certain degree of uncertainty about the demand in the north Indian market. According to trade sources, container freight charges decreased by about 3 US cent per kg. Weaker dollar may also reduce landed prices of imported PSF and other material. Therefore, polyester value chain can see downward trend in near future.
In Ludhiana market, few counts and varieties of polyester-cotton and polyester yarn prices improved due to rise in raw material prices and better buying. 30 count PC combed yarn (48/52) was sold at ₹260-274 per kg (GST inclusive) with increase of ₹2 per kg, according to Fibre2Fashion’s market insight tool TexPro. 30 count PC carded yarn (65/35) was priced at ₹220-230 per kg. 20 count PC (recycled-O/E) PSF yarn (40/60) was traded at ₹180-190 per kg. 30 count poly spun yarn was sold at ₹175-187 per kg. High tenacity recycled fibre was priced at ₹88-92 per kg. The prices of 20 count PC (recycled-O/E) PSF yarn (40/60) increased by ₹5 per kg. High tenacity recycle fibre also gained ₹2-3 per kg.
Reliance Industries Limited had earlier increased prices of purified terephthalic acid (PTA), monoethylene glycol (MEG) and MELT. The price of PSF remained steady at ₹120 per kg. RIL has fixed prices of raw material as: PTA ₹88.10 (+2.50) per kg, MEG ₹56 per kg (+0.40) and MELT at ₹94.81 (+2.29) per kg, as per TexPro. Meanwhile, cotton prices gained further in north India as arrivals were minimal amid improving demand. According to traders, spot market prices gained ₹100-150 per maund of 37.2 kg. Cotton was sold at ₹8,800-9,400 in Punjab, ₹8,500-9,000 in Haryana and ₹9,250-9,450 per maund in Upper Rajasthan. Cotton was sold at ₹85,000-87,000 per candy of 356 kg in lower Rajasthan.
Source : Fibre2fashion
The aggressive promotion of the mini-textile park scheme by the Tamil Nadu government may pave way for the introduction of a viable industrial alternative to the traditional paddy cultivation in the delta region and Tiruvarur district, in particular. The recent call from the district administration to entrepreneurs in Tiruvarur district to utilise the financial support extended through the scheme for setting up textile industryrelated activities in the heartland of agriculture has been viewed as a promising gesture from the State government to assist them in their endeavour. Already, a group of industrialists have ventured into apparel manufacturing and have managed to sustain the activity for the past two to three decades in spite of the perennial problem of finding the manpower to run the units, according to Ravichandran of Tiruvarur District Small and Tiny Industries Association. In spite of the labour problems, the tiny apparel units have decided to diversify their activity by venturing into manufacturing of cotton threads by setting up small capacity spinning mills in view of a large number of farmers opting for cotton cultivation during summer in the region in the recent years. Bright prospects of sourcing raw material and utilising the manufactured product locally have formed the basis for the spinning mill proposal mooted and forwarded to authorities for sanctioning, he added. Hence, the State
overnment’s move to extend financial assistance of ₹2.5 crore, or 50% of the project cost, as subsidy for setting up of a mini textile park in an area of two acres with three textile-related manufacturing activities comes as a boon to the entrepreneurs. Further, setting up of spinning mills will in no way hinder or destruct the Protected Agriculture Zone status of the region since the raw material is sourced from the agriculture industry, he pointed out.
Source: The Hindu
The Reserve Bank of India last month allowed importers and exporters to pay in the partially convertible rupee, a move widely seen as making trade with Russia and South Asian neighbours easier instead of relying on dollars. India expects bilateral trade worth $8-9 billion with Russia and Sri Lanka in the next two months after it allowed international trade in rupees, India's trade secretary said. The Reserve Bank ofIndia last month allowed importers and exporters to pay in the partially convertible rupee, a move widely seen as making trade with Russia and South Asian neighbours easier instead of relying on dollars. "The rupee-denominated sales will be a big, big advantage," B.V.R. Subrahmanyam told reporters late on Tuesday. "I see in the next two months $8-$9 billion of trade with Russia and Sri Lanka." He did not give a break down in trade by country. India's imports from Russia, mainly crude oil, jumped nearly five times to more than $15 billion between the end of July and Feb. 24 when Russia invaded Ukraine, compared to the previous year, according to a source with direct knowledge of the matter. But exports fell to $852.22 million from $1.34 billion in the same period, due to the lack of a payment settlement mechanism with sanctioned-hit Russia. Latest trade figures between India and Sri Lanka, which is in economic crisis, were not immediately available. India has refrained from condemning Russia, with which it has longstanding political and security ties, while calling for an end to violence in Ukraine. New Delhi defends its purchases of Russian goods as part of an effort to diversify supplies and argues a sudden halt would jack up world prices and hurt its consumers. India reported a record trade deficit of $31.02 billion for July, three times higher than in the same period last month, due to a fall in exports and high imports, according to the latest preliminary trade data. Subrahmanyam said the government was working on new trade deals with countries like the United Kingdom that would boost its exports and offset demand weakness in some of its markets. He expects India merchandise exports to jump to about $500 billion in the current fiscal year that started on April 1, from about $420 billion in the year-ago period.
Source: Economic Times
In a tweet, the Commerce and Industry Minister said "These numbers tell the power of a vision. A vision to see innovation & enterprise drive growth" India in its 75th year of Independence is now home to as many as 75,000 startups, Union minister Piyush Goyal said on Wednesday. In a tweet, the Commerce and Industry Minister said “These numbers tell the power of a vision. A vision to see innovation & enterprise drive growth." “India is now home to 75,000 startups in the 75th year of Independence and this is only the beginning," Goyal said in the tweet. The minister had recently said the country aspires to become the largest start-up ecosystem in the world. On another occasion, Goyal had appealed to startups to get incorporated and listed in India and not leave the country "just for few dollars more". The Ministry of Commerce and Industry stated that the latest 10,000 start-ups were recognised in 156 days, compared to the initial 10,000 start-ups that were recognised in 808 days. It added that 49 per cent of the start-ups are from tier-2 and tier-3 cities. Of the recognised start-ups, 12 per cent cater to IT services, 9 per cent to health care and life sciences, 7 per cent to education, 5 per cent to professional and commercial services and 5 per cent to agriculture.
Source: Business Standard
On top of these, elevated inflation has hurt discretionary spending in some of the advanced economies. Fears of demand slowdown in key markets such as the US and the EU, foreign exchange woes in Sri Lanka, Nepal and some African nations and persistent supply-side challenges are set to spell trouble for Indian companies, who had put up a stellar show in exports in FY22. On top of these, elevated inflation has hurt discretionary spending in some of the advanced economies. Some exporters told FE that unless the Ukraine conflict is resolved fast and the US and the EU economies start to grow meaningfully again, India’s export growth could come down to 10-15% in FY23 from 45% in the previous year (albeit on a contracted base). Exports had hit a record $422 billion in FY22, far exceeding the earlier peak of $330 billion, on the back of an industrial resurgence in advanced economies, which is now losing momentum. Goods exports fell, albeit marginally, for the first time in 17 months in June. In a recent earning call, Arvind Ltd said: “Consumer demand in the US is showing initial signs of slowing down in response to interest rate hikes. Also, the US brands and retailers have started inventory correction and postponement of buying; though we have not seen cancellations yet.” The company expects its performance in the Q2FY23 to be marginally muted compared to Q1 and “it will depend upon recessionary situation in global markets and commodity prices going ahead”. Rakesh Sharma, executive director, Bajaj Auto, said: “We are in the midst of the storm so there will certainly be some impact on shipments during the second quarter.” Currencies everywhere have tumbled against the greenback. “Over and above the devaluation, there is also a shortage of the availability of dollars. We are facing a more serious problem in the African belt, much less in Latin America or Asia,” Sharma said. Some other large companies have already flagged impact of a slowdown in the key markets on India. R Shankar Raman, chief financial officer at L&T, said last week: “All major economies are recalibrating their growth and India will be no exception. We need to wait and watch to see how the situation pans out for us.” RIL’s CFO V Srikanth, too, said last week that recession fears were overtaking oilmarket fundamentals, resulting in lower prices and margins. Importantly, as some exporter said, some countries in Africa have started to cut down on discretionary imports to conserve their forex reserves at a time when the US interest rate hike has spurred a capital flight from developing economies. On top of these, crisisridden Nepal and Sri Lanka have restricted imports to a bare minimum. These, too, could potentially put a leash on India’s export momentum, said the exporters. The US and the EU together accounted for 33% (or $141 billion) of India’s exports in FY22. Similarly, exports to Nepal and Sri Lanka were to the tune of $15.4 billion last fiscal and shipments to Egypt and Ethiopia stood at $4.4 billion. The International Monetary Fund last week trimmed its 2022 growth forecasts for the US to 2.3% from 3.7% predicted in April. The Euro zone will grow just about 2.6% and 1.2% in 2022 and 2023, respectively, down from the Fund’s earlier projections of 2.8% and 2.3%. Curbs or outright ban on a number of items, including steel, iron ore, petroleum products and wheat, will also impinge on export prospects. Sectors ranging from textiles, gems & jewellery and transport equipment to plastics to rubber products are facing a slowdown in export orders, said the exporters. According to Ajay Sahai, director general and chief executive of apex exporters’ body FIEO, with major economies facing recession, demand will take a hit and it’s bound to impact new orders. “In some segments, such as steel and cotton yarn, demand has already come down. Unless the geo-political situation improves drastically, we may not see major improvement in export growth, especially on a high base,” he said. However, he firmly ruled out a contraction in exports. There is silver lining as well for some sectors, said the exporters. Sectors, such as pharmaceuticals and food and agriculture, are typically more insulated than others in times of recession. Even some segments of the engineering goods are doing well. R Uday Bhaskar, director general at the Pharmaceutical Export Promotion Council, said recession fears may not impact pharma exports. “These are not like any other products where recession will pull down demand.” “This fiscal, we were expecting the exports to go up to about $28 billion from $24.5 billion last fiscal and we will meet the target,” Bhaskar added. On Wednesday, commerce secretary BVR Subrahmanyam expressed optimism that exports, which have already hit $156 billion in the first four months of the fiscal, will likely jump to $500 billion in FY23. He conceded that any potential demand slowdown in the US and the EU due to recession is a matter of concern. However, possible diversion of orders from Covid-hit China, the benefits of trade agreements with the UAE and Australia signed earlier this year and stepped-up efforts to diversify markets will more than make up for any potential shortfall in any market, the secretary said.
Source: Financial Express
From Rohtak to Bahadurgarh and Sonipat to Panipat, production at industrial units badly hit, says a media report Demand for industrial products in the national, as well as global markets has steadily come down amid an economic slowdown in the western nations. This has resulted in the industrial units in Haryana taking a big hit. In Rohtak, the orders for automobile parts and nut-bolts from the local markets have come down by 80 per cent, while in Panipat, the foreign textiles business has come down by 50 per cent, a report by Hindi daily Dainik Bhaskar stated. While export orders have come down to Rs 8,000 crore annually from Rs 20,000 crore, exporters now send two containers in a week instead of ten containers previously, the report added. Meanwhile, the domestic market of over Rs 90,000 crore has now come down to Rs 54,000 crore. Dyeing units have also been mostly shut down as the textile sector has witnessed nearly 75,000 job losses while almost 90,000 people have taken a salary cut of 40 per cent, DB reported. While the industry, which works for six days a week, is currently working five days, discussions on reducing it to only four days a week are also happening. Nearly 20,000 people in the textile industry in Sonipat have lost their jobs, the report stated. Due to inflation in the US and the Russia-Ukraine war, the export of home furnishing has come to a standstill, exporter Vinod Dhamija, custodian exporter of the Old Industrial Area Manufacturers Association, told the Hindi daily. This resulted in more than 30 per cent of the employees leaving the industry, and those who were retained took a salary cut, he added. The dyeing unit has been running for only five days now, while due to the burning of the furnace, three shifts have been reduced to two, Dyers Association president Bhim Singh Rana told DB, adding that due to less work, a four-day work week is being considered. In Sonipat, the medicine, food, and steel industries' businesses are hit as many are working one shift instead of two. This has led to 20,000 job losses. Nischal Paruthi, a member of the Small-Scale Manufacturing Industrial Association, told DB that the raw material has also become four times more expensive. Automobile parts and nut bolts from Rohtak are exported to 10 countries, but the demand for goods in the local auto market has dropped to 15-20 per cent, while the prices for raw materials have doubled, the DB report stated. Due to this, industrialists have stopped making goods. A big exporter of automobiles and metals, Rewari, in July too only got a third of the export orders. The companies in Rewari have laid off 300-1400 contract employees even as metal prices have fallen by up to 25 per cent.
Source: Business Standard
The burgeoning trade deficit is set to swell the current account deficit July’s provisional trade data should trigger early warning signals among policymakers, as the first year-on-year contraction in exports in 17 months, albeit marginal, and a 44% jump in imports, sharply widened the trade deficit to a third successive monthly record. The export performance is of concern, reflecting a slowdown in overseas demand for Indian merchandise, the competitive advantage gained by the rupee’s sizeable depreciation against the U.S. dollar notwithstanding. While the Commerce Ministry has sought to explain away the 0.8% slide in last month’s exports as largely being a result of inflation-control curbs, the Ministry’s preliminary disaggregated data suggest several key sectors including engineering goods, gems and jewellery, garments and yarn and textiles, and drugs and pharmaceuticals, which were mostly outside the purview of those measures, also suffered contractions. And viewed on a sequential basis, the slide in exports from June’s level is a disconcerting 12.2%. Engineering goods, which at more than 26% represented the largest share of merchandise shipped overseas in July, contracted 2.5% from a year earlier and also shrank 2.9% sequentially. Even granting that the Government’s introduction in late May of a stiff export tax on a range of steel products, with a view to boosting their domestic availability and cooling price gains, was likely to have constrained exports of this segment of engineering goods, the contraction in the broad category points to a clear slowdown in demand in the advanced economies. The latest S&P Global PMI data from the U.S. and the eurozone for economic activity in July is also far from reassuring. As per the PMI data, output across Europe’s major economies sharing the euro as common currency shrank for the first time since February 2021 as a worsening manufacturing downturn combined with a slowdown in the service sector to drag the composite index into contraction territory. The U.S. economy, which has now contracted for two successive quarters putting it on the edge of a recession, saw manufacturing PMI post its lowest reading in two years as output and new orders declined in July. Given that the U.S. and the eurozone combined consumed almost a third of India’s goods exports in the last fiscal year, the prospect of July’s export slowdown deepening as demand in these markets weakens appears increasingly more likely. Imports continued to expand at a robust clip, driven largely by the expanding domestic demand for essentials including crude oil, coal, edible oils and electronic items. Coal and coke alone exceeded $5.1 billion. The augury from the trade data is that the external sector faces increasing vulnerability as the burgeoning trade deficit is set to swell the current account deficit, adding pressure on the rupee at a time when portfolio investments from overseas have been negative, and foreign direct investment has been significantly weaker.
Source: The Hindu
However, in July, the domestic market remained the key source of sales growth as international demand for Indian services worsened further, the survey said. Amid an uptick in scores of economic indicators, India’s services sector lost momentum in July even as it remained in the expansion zone for the 12th straight month. The seasonally adjusted S&P Global India Services PMI Business Activity Index fell from 59.2 in June to 55.5 in July, the slowest growth rate in four months. The creators of the index attributed the fall in PMI to “demand somewhat curtailed by competitive pressures”, elevated inflation and an unfavourable weather. The services activity, as gauged by PMI, had expanded at the fastest pace in 11 years in June 2022, reflecting robust demand conditions. Manufacturing activities, measured by a comparable yardstick, scaled an eight-month peak in July, as new order intakes rose substantially, recovering the growth momentum lost in June. As per the PMI survey, service providers that reported higher sales in July mentioned favourable demand conditions and fruitful advertising. Pollyanna De Lima, economics associate director at S&P Global Market Intelligence, said the subtle easing in cost inflationary pressures to a five-month low was also welcomed by services firms struggling to preserve margins and contributed to a softer rise in prices charged. Yet, Lima said, survey participants again reported considerable strain from food, fuel, input, labour, retail and transportation costs. Sector experts, meanwhile, provide an optimistic outlook. As reported by FE recently, Services Export Promotion Council (SEPC) chairman Sunil Talati believes that a sharp slowdown in growth or recession in advanced economies may brighten the prospects for Indian services exporters, as these countries tend to start diverting a larger number of orders to cheaper destinations to cut down on costs. However, in July, the domestic market remained the key source of sales growth as international demand for Indian services worsened further, the survey said. Meanwhile, business sentiment in the service economy was subdued in July as only 5% of companies forecast output growth in the year ahead, while 94% firms predict no change in business activity from present levels. On the prices front, services companies reported a further increase in their average expenses during July, with food, fuel, materials, staff, retail and transportation cited as the key sources of inflationary pressures. Input costs rose sharply, though at the slowest pace in five months. “The subtle easing in cost inflationary pressures to a five-month low was also welcomed by services firms struggling to preserve margins and contributed to a softer rise in prices charged. Yet, survey participants again reported considerable strain from food, fuel, input, labour, retail and transportation costs,” Lima said. On the jobs front, July data showed a negligible increase in services sector employment across India. The rate of job creation was fractional and broadly similar to June. The vast majority of firms left payroll numbers unchanged amid a lack of need to raise workforces. Meanwhile, the S&P Global India Composite PMI Output Index — which measures combined services and manufacturing output — fell from 58.2 in June to 56.6, highlighting the slowest increase since March.
Source: Financial Express
India’s export of readymade garments (RMG) dipped slightly in July 2022 over the same month of 2021 as exporters faced higher production cost due to costlier cotton and other inputs. They are also getting fewer orders from foreign buyers and global brands. Exports of RMG of all textiles slipped 0.63 per cent to $1380.45 million in July 2022. The ministry of commerce and industry said in a release that India’s RMG exports were $1389.22 million in July 2021. The exports had increased in previous months over the same period of last year. RMG contributed 3.92 per cent in total merchandise export of July 2022. The export of cotton yarn, fabrics and handlooms products, etc continued to show down trend in July 2022. The export declined to $943.50 million in July 2022 which was 28.27 per cent lower than $1315.42 million of July 2021. The export of non-RMG textile products contributed 2.68 per cent in total merchandise export of July 2022. However, RMG exports from India registered growth of 22.45 per cent year-on-year and reached at $5871.34 million in the first four months of current fiscal 2022-23. The export was $4794.93 million in April-July 2021. The export of RMG contributed 3.75 per cent in the country’s total merchandise export in April-July 2022. The export of cotton yarn, fabrics and handlooms products, etc declined 12.26 per cent to $4107.66 million in April-July 2022. The export was $4681.56 million during the same period of last year. The export contributed 2.63 per cent in the country’s total merchandise export in April-July 2022. India has recorded merchandise export of $35.24 billion in July 2022, almost at similar levels of $35.51 billion in July 2021. Merchandise export in April-July 2022-23 was $156.41 billion with an increase of 19.35 per cent over $131.06 billion in April-July 2021-22. Merchandise import in July 2022 was $66.26 billion, an increase of 43.59 per cent over $46.15 billion in July 2021. Merchandise imports in April-July 2022-23 was $256.43 billion with an increase of 48.12 per cent over $173.12 billion in April-July 2021-22.
Source: Fibre2fashion
Hopes are now pinned on bilateral FTAs. Merchandise exports in July shrank marginally from the same month a year ago as India's main trading partners, the US and the EU, saw their economies cool down and the effects of domestic restrictions on select items were felt. Seven in 10 of the top export categories posted declines during the month. But GoI hopes to meet a $500 billion target for 2022-23 with bilateral free trade agreements (FTAs), such as the one with the UAE, which have come into play, or are about to, like those with Britain and Australia. India's trade performance in 2021-22 was aided in large measure by recovery in advanced economies. The next leg of growth in a slowing global economy is expected to come through improved access to a broader set of markets and production-linked incentives (PLIs) to manufacturing: electronic exports continue to power ahead. Imports in July kept up the tempo, although there was a slight easing from the previous month as commodity prices came off recent highs with synchronised monetary tightening across the world. Growth in crude oil and coal imports during the month pulled down the average rates for April-July, and gold imports declined with the imposition of a duty. Machinery imports - a marker of India's growth prospects - remained buoyant, as did edible oils, where the scope for import substitution is limited. Filtering out crude oil and gold - admittedly, a big filtration - imports during July grew faster than the average for the first four months of 2022-23. The trade deficit in July at $31.02 billion is almost three times the $10.63 billion it was a year ago, and at $100.01 billion so far in 2022-23, it is over twice the $42.07 billion clocked up in April-July 2021-22. Capital flight since last year is exerting pressure on the rupee and a widening current account deficit (CAD) limits the scope for managing the currency's descent. As foreign exchange reserves dwindle - these are now below the 11 months of import cover considered safe - the option to restrict imported energy inflation may become too costly.
Source: Economic Times
With the participation of more than 200 companies, Gartex Texprocess India is gearing up for a power-packed edition in New Delhi from August 4-6, 2022. The recently announced association with FABEXA will bring fabric manufacturers and suppliers from Gujarat on the show floor to deliver a strong push to the region’s textile and apparel sector. Following the success of its first-ever Mumbai edition earlier this May, Gartex Texprocess India, the leading B2B platform on garment and textile machinery, fabrics, accessories, and allied industries is ready to open the curtains in New Delhi at Pragati Maidan from August 4–6, 2022. It is being organised by Messe Frankfurt India and MEX Exhibitions Pvt Ltd. Affirming strong support and recognising the potential impact of Gartex Texprocess India, Upendra Prasad Singh, secretary, ministry of textiles, government of India, said, “lndia is one of the prominent textiles and clothing producing countries in the world. Domestically, it is the second largest employment providing sector and accounts for 11.4 per cent of lndia’s global merchandise exports during 2020 – 21 and holds a 4 per cent share on the global trade in textiles and apparel. Gartex Texprocess India New Delhi will not only provide opportunities to overseas buyers to source their requirements but also provide a platform to domestic exporters, especially SMEs for expanding their export potential.” Co-located alongside Denim Show, Fabrics & Trims Show and Screen Print India, the three-day show will converge more than 200 companies to create an extensive display of manufacturing technologies and finished products, the organisers said in a press release. Top textile and apparel machine manufacturing brands such as: Aura, Fabcare, Jaysynth Dyestuff, Wenli, Baba Textile Machinery, Orange-O-Tec and Jack will participate at Gartex Texprocess India, while the Denim Show unite leading denim producers of India such as: Jindal Worldwide Ltd, Arvind Ltd, Raymond UCO Denim Ltd, LNJ Denim, Siyaram Silk Mills Ltd,Kanchan Group and many more under its wing. Meanwhile, Screen Print India will showcase manufacturing technologies for textile, digital and screen printing from brands such as DCC Print Vision LLP, JN Arora, Konica Minolta, Epson and Green Printing Solutions, among others. With an aim to promote localisation in the fabrics’ sector, the organisers have joined hands with FABEXA, an arm of Ahmedabad’s nodal textile trade body Maskati Cloth Market Mahajan for the Fabrics & Trims Show. The FABEXA pavilion will host around 70 fabric manufacturers from Gujarat to demonstrate their expertise in fabric, cotton and natural based fabrics, including: Nakoda Fashion Pvt Ltd, Shashwat Textiles Pvt Ltd, Bhavna Processors Pvt Ltd, Viru Textile Mills Pvt Ltd, Panam Texfab Pvt Ltd and Shree Chamunda Fabrics. The trade fair will also welcome about 300 fabrics sourcing representatives as hosted buyers over the span of three-days. As a highly recognised industry exhibition, Gartex Texprocess India New Delhi 2022 is backed by the support of ministry of textiles as well as chief industry associations and trade bodies, comprising: The Confederation of Indian Textile Industry (CITI), Denim Manufacturers Association (DMA), Maskati Cloth Mahajan, Retailers Association of India (RAI) and the Apparel Export Promotion Council (AEPC). Entering its seventh edition, Gartex Texprocess India will provide industry buyers an excellent platform to source the latest manufacturing machineries and behold the progress taking place in textile, garment production, screen printing and other allied sectors.
Source: Fibre 2 Fashion
President Abdel Fattah Al-Sisi met on Tuesday with Prime Minister Mostafa Madbouly and Minister of Public Enterprise Hisham Tawfik to follow up on the state’s strategy to develop the textile and ready-made clothing industry in Egypt, according to a statement by Presidential Spokesperson Bassam Rady. In this context, Tawfik reviewed his ministry’s efforts to establish the largest spinning factory in the world in the city of Mahalla. He added that the factory will be inaugurated in 2023, will span an area of 62,000 sqm, and will include the latest equipment and machinery in the industry using the experience of major international companies. Furthermore, the factory will deal with all types of cotton, which contributes to capitalising on Egypt’s competitive advantage in cotton production worldwide in light of its quality and reputation in international markets. Tawfik also presented his ministry’s extensive efforts to develop the marketing of Egyptian products from the textile industry by establishing a company for marketing, sales, and supply chain management for these products. Additionally, the president was presented with samples of the luxury cotton textiles that the company has been marketing. Finally, the minister discussed the latest developments regarding an enabling system for the implementation of bids on Egyptian cotton that is being implemented in cooperation with the Egyptian Commodity Exchange to ensure adequate execution. For his part, Al-Sisi directed the continuation of all efforts to promote the textile industry in order to restore Egyptian cotton to its former glory within the framework of the comprehensive development pursued by the state, which contributes to maximising the use of Egyptian capabilities inherent in this framework, and thus supporting the national economy, especially that the textile industry is a labour-intensive industry.
Source: Zawya
Circular economy’ initiatives ranging from take-back programmes to rental services are enabling fashion retailers to enhance their green credentials. But how effective are such schemes in reality? The task of establishing a circular fashion economy is widely accepted as crucial, given that a truckload of textiles is being incinerated or buried every second, according to a global estimate by the Ellen MacArthur Foundation. The charity has also calculated that the under-use of clothing and a lack of garment recycling costs the global economy more than $500bn (£420bn) a year. The longer-term price paid by the environment is likely to be far greater. The microplastics that the synthetic fibres in our clothing shed when washed have been found in human blood, placenta and, most recently, snow in the Antarctic. Developments such as the EU’s circular economy action plan of 2015 and the UK’s circular economy package of 2020 have prompted many fashion retailers into action. The EU strategy for sustainable and circular textiles, published this March, also stressed the importance to the industry of a credible long-term strategy for durability, recycling and waste management. In June, Boris Johnson even pledged £80m of public funding to help establish a “circular fashion model”. But critics of the fashion industry’s historically profligate practices argue that ‘circularity’ has become a mere buzzword, used by firms seeking to apply a coat of greenwash over their continuing wasteful ways. Clothing take-back programmes have become central to the sector’s circularity drive. The charity Waste & Resources Action Programme (Wrap) estimates that such schemes – adopted by the likes of H&M, M&S and Primark – prevented 620,000 tonnes of used textiles from ending up in British landfills in 2018. H&M has reported that its “Close the loop” recycling and repairing initiative collected 18,800 tonnes of unwanted clothes – the equivalent of 94 million T-shirts – in 2020. Juliet Lennon, programme manager at the Ellen MacArthur Foundation, says: “Rental, resale, remake and repair have the potential to make up 23% of the global fashion market by 2030, representing a $700bn opportunity.” Retailers work with white-label services such as Yellow Octopus and I:CO, which sort garments into categories for reuse or recycling, depending on their material properties and condition. In theory, such innovations are welcome, yet not all clothes collected are suitable for either process. I:CO, a partner in H&M’s take-back programme, recently reported that 8% of what it received was neither reusable nor recyclable and would therefore have to be incinerated. More concerning is research published by Greenpeace in April, which claimed that no more than 30% of used clothes are staying in the country of donation. Much of the remainder is sent to countries in the Global South, where it often ends up “on huge dump sites, on open fires, along riverbeds and washed out into the sea”. Kantamanto Market in Accra, Ghana, illustrates the scale of this problem. About 15 million garments enter the market every week. Some of these can be used to support the local textile industry, but researchers estimate that 40% of the items are of such poor quality that they are deemed worthless on arrival and are either buried or burnt. Viola Wohlgemuth, a campaigner for Greenpeace Germany, says that countries such as Ghana “don’t have the infrastructure to cope with the large volumes of textiles that are arriving, even if all of them were reusable”. The large-scale dumping of unwanted textiles is creating a socioeconomic and environmental crisis for local communities. The waste material is a health hazard, as its decomposition not only releases microfibres into watercourses but also produces dangerous levels of flammable methane gas. Most circularity claims are greenwashing. Fewer than 1% of clothes produced are actually made from recycled textiles Moving clothes from one country to another is by no means circular. The practice simply shifts the burden to a territory with limited capacity to handle it and weaker environmental laws. Chile, for instance, has long been a hub for used and unsold garments from all over the world. The port city of Iquique accepts nearly 60,000 tonnes a year, but less than half of this material is bought by merchants for resale. The rest is simply dumped in huge mounds in the surrounding Atacama Desert, where it could take two centuries to biodegrade. Wohlgemuth recounts a recent visit to Gikomba, Kenya, where she found herself walking along the banks of the Nairobi River and realising that they mostly comprised piles of textile waste, from which garments would fall and be swept downstream. It’s not surprising that such experiences have led her to conclude that “the system is not working”. Transparency is key to encouraging participation in any sustainability initiative. A recent survey by Wrap found that 42% of consumers deemed it important to know the likely destinations of their donated garments. “When people give back clothes, they expect these items to be reused, to raise money for charity or to benefit people that need them,” Wohlgemuth says. “They wouldn’t expect them to end up in huge, overflowing landfills in Africa.” Some retailers operate incentive schemes that offer customers discount vouchers for donating used clothing, but such initiatives have drawn criticism for fuelling further consumption, which works counter to the circular economy. There has been “little evidence of plans to reduce the flow of fashion – a precondition for any meaningful attempt at circularity”, Wohlgemuth argues. When donating clothes or buying ‘sustainable’ garments made from recycled polyester, consumers should proceed with caution, she adds. Regulations such as the Competition and Markets Authority’s green claims code are designed to prevent companies from making misleading statements, but she argues that “most circularity claims are greenwashing. Fewer than 1% of clothes produced are actually made from recycled textiles.” Sarah Gray, senior analyst for textiles at Wrap, recommends that companies build “a solid evidence base to ensure that they can verify details on recycled content to make certain that their claims about circularity are truthful”. Genuine and effective circular initiatives call for higher standards of reporting on supply chain risks; efficient monitoring systems; investment in technology to enhance transparency; and legally compliant collection processes. Lennon believes that “economic and regulatory incentives are needed to increase the viability of circular business models, as voluntary commitments by industry leaders alone will not achieve the scale required”. Retailers should focus on consistency too. Any firm that’s vocal about plastic packaging as part of its circularity drive, yet doesn’t publicly disclose the volume of synthetic material in their collections, should reconsider its approach, for instance. Doing so will be key to its long-term survival. Opaque reverse-logistics operations and half-hearted circularity initiatives are leaving companies vulnerable to several ESG risks – and investors, if not consumers, are watching closely.
Source: Raconteur
The government wrote letters to the two lenders seeking $1 billion each from them to help the economy cope with the ripple effects of the war in Ukraine and energy price shocks Bangladesh is seeking assistance from the World Bank and Asian Development Bank amid efforts to bolster its foreign exchange reserves, according to people familiar with the matter. The government wrote letters to the two lenders seeking $1 billion each from them to help the economy cope with the ripple effects of the war in Ukraine and energy price shocks, said the people, who asked not to be named because the matter is not public yet. The requests come days after the government sought a loan from the International Monetary Fund, in a move seen as a pre-emptive measure to shore up the country’s foreign exchange reserves amid concerns over contagion risks. South Asian neighbors Sri Lanka and Pakistan are already in talks with the IMF for loans to tide over crises in their respective economies. “Not only the IMF, but we will also go to the World Bank and the ADB,” Bangladesh Finance Minister AHM Mustafa Kamal said at a media briefing in Dhaka on July 27. Phone calls to Kamal, and Sharifa Khan, secretary of the economic relations division -- a government unit that mobilizes external assistance -- remained unanswered. Bangladesh’s foreign exchange reserves slipped to $39.48 billion as of July 27 from $45.7 billion a year earlier. The country’s trade deficit widened to a record $33.3 billion in the fiscal year ended June. The government and the ADB opened initial discussions on at least four projects, including $250 million in loans for economic recovery from the pandemic, one of the people said. Another project to help rebuild after floods that devastated the northeastern region is expected to receive as much as $250 million in loans. Discussions are ongoing between the government and the ADB, the person said, without giving more details. On Wednesday, Kamal told a press conference in Dhaka that the pressure on consumer prices would ease in a month, and the taka would stabilize. The economy would get back on track “very soon,” he added.
Source: Bloomberg
