Polyester-cotton (PC), poly spun and recycled polyester yarn further dropped by ₹5-6 per kg today. Traders said that huge imports of Chinese polyester yarn, poor local demand and bearish cotton yarn are the main causes for concern. The imports are dampening market sentiments as domestic spinning mills are already running at 50-70 per cent capacity. According to trade sources, huge amount of polyester yarn is being imported from China and there is no improvement in buying from domestic and export markets. Cheaper cotton and cotton yarn added to the problems of the polyester value chain. “Domestic mills are running at a mere 50-70 per cent capacity due to lower demand. Chinese supply is eating into the domestic market demand,” a Ludhiana-based trader told Fibre2Fashion. A slightly improved demand was seen towards the end of the previous week as Vardhman, and some other companies had secured sizeable orders of polyester yarn. But the market again turned bearish as buying reduced. Sources said that the demand had improved because the market pipeline had dried up, but there was no improvement in consumption. According to trade sources, polyester-cotton, poly spun, and recycled yarn prices continued the downward trend in Ludhiana. PC, poly spun and recycled polyester yarn declined by ₹5-6 per kg. 30 count PC combed yarn (48/52) was sold at ₹230-240 per kg (GST inclusive), according to Fibre2Fashion’s market insight tool TexPro. 30 count PC carded yarn (65/35) was priced at ₹200-205 per kg. 20 count PC (recycled-O/E) PSF yarn (40/60) was traded at ₹160-170 per kg. 30 count poly spun yarn was sold at ₹152- 162 per kg. Recycled polyester fibre (PET bottle fibre) was at ₹88-90 per kg. Reliance Industries Limited had earlier decreased the prices of purified terephthalic acid (PTA), monoethylene glycol (MEG) and MELT for the current week. On Friday, RIL had fixed the prices as: PTA ₹84.10 per kg (-1.50), MEG ₹56.60 per kg (-0.80) and MELT at ₹91.57 (-1.56) per kg. PSF was priced at ₹110 per kg for the current fortnight. North Indian states recorded a steep fall in cotton prices as arrival increased. Spinners’ buying remained weak. According to traders, cotton arrival increased from 6,500 bales of 170 kg to 13,000 bales in north Indian region. Cotton prices decreased by ₹300-350 per maund of 37.2 kg. New cotton was traded at ₹7,150-7,200 per maund for ready delivery in Haryana, Punjab and Rajasthan. October delivery deals are at ₹6,650-6,700 per maund.
Source: Fibre 2 Fashion
The Department for Promotion of Industry and Internal Trade (DPIIT) and The Embassy of The Kingdom of The Netherlands officially signed the Joint Statement to formalize the bilateral Fast-Track Mechanism (FTM) between India and The Netherlands. Invest India, the national investment promotion and facilitation agency, is the executing body of the bilateral FTM. The Ambassador of The Netherlands to India, H.E. Mr. Marten van den Berg, and Secretary, DPIIT, Shri Anurag Jain, formally signed and exchanged the Joint Statement on 27th September 2022. The bilateral FTM between India and The Netherlands aims to serve as a platform for faster resolution of investment cases of Dutch companies operating in India. The mechanism functions in close collaboration between DPIIT, respective ministries and departments, Invest India and the Embassy of The Netherlands. The mechanism will strengthen and assist bilateral efforts to increase mutual investment activities, as well as support and develop business cooperation between companies in both the countries. “It is worthy of noting the strong economic relation between India and the Netherlands. Some Dutch companies have been operating for over 100 years in India, which illustrates this close bilateral relationship. We are keen to collaborate more with our Indian partners to further stimulate Dutch companies in India, particularly in key areas of economics, science and innovation,” highlights H.E. Mr. Marten van den Berg, Ambassador of The Netherlands to India. “I would like to highlight the opportune period during which we are signing this FTM – ‘Amrit Kal’, the celebration of 75 years of independence as well as our bilateral diplomatic relationship. India is one of the few countries which has a very open FDI policy, and we have worked to resolve several issues of Dutch companies even before the FTM process began. In this context, we are formalizing a relationship which was present since long before,” comments Shri Anurag Jain, Secretary, DPIIT. “The India-Netherlands economic link has been a cornerstone in our bilateral relations. On this important occasion, it is crucial to highlight our strong political, economic and commercial relations, along with several sectoral cooperations. It is our endeavor that all issues of Dutch companies get resolved even before we reach the stage of the FTM, and are continuously working in this direction,” conveys Shri Rajendra Ratnoo, Joint Secretary, DPIIT. “Today is a very important day for our bilateral relationship. The signing ceremony is a huge step towards promoting bilateral investments between both the partnering countries. There are significant areas of mutual interest, and we look forward to working together to make the India-Netherlands investment corridor more robust,” adds Mr. Deepak Bagla, MD & CEO, Invest India. Diplomatic relations between India and The Netherlands were formally established in 1947. Since then, the two countries have developed strong political, economic & commercial relations, and various sectoral co- operations. According to official Indian statistics, The Netherlands is the 4th largest foreign direct investor in India. Between April 2000 and June 2022, the cumulative flow of foreign direct investment from The Netherlands to India reached some USD 42.3 billion. In 2021-2022, bilateral trade between the two countries amounted to USD 17 billion. India's exports to The Netherlands consists mainly of mineral fuels and mineral-based products, organic chemicals, electrical machinery and equipment, aluminium, iron and steel and pharmaceutical products.
Source: PIB
“Improved business activity is expected to yield better collections in the coming months,” the official said. The GST data for September will be released on October 1. On September 14, revenue secretary Tarun Bajaj had asked revenue officers to stabilise GST collections to around Rs 1.5 trillion from October data, which is to be released on November 1. At Rs 1.44 trillion, monthly gross GST collections in August (July transactions) crossed the over Rs 1.4-trillion mark for the sixth month in a row, reflecting improved compliance. GST collections reached a record Rs 1.68 trillion in April (March transactions)
Source: Financial Express
It was a survey of over 50 economists from the finance, insurance, professional services and technology industries, as well as international organizations and regional development banks. As per the findings, an average of seven out of ten economists consider a global recession to be at least "somewhat likely". Persistently high inflation and consistently falling real wages are making a global recession increasingly more likely, the World Economic Forum (WEF) said on Wednesday. These projections are based on the findings of a survey of chief economists from across the world. It was a survey of over 50 economists from the finance, insurance, professional services and technology industries, as well as international organizations and regional development banks. As per the findings, an average of seven out of ten economists consider a global recession to be at least "somewhat likely". Economists are expecting reduced growth, stubbornly high inflation and continuing fall in real wages for the remainder of 2022 and 2023, the findings showed. Real wages are likely to keep on falling across the world in 2022-2023, said the survey titled WEF Chief Economists Outlook report. Inflationary pressures, however, are expected to ease next year, it added. Globally, economic prospects fell further over the past few months with expectations for growth slashed across all regions. It also said the cost of living crisis is threatening social unrest. Food security could be at risk in many places over the next three years, the survey showed. Referring to rising concerns about food security triggering export restrictions, which risk exacerbating global supply disruptions, the report said India, the world's largest rice exporter, introduced a ban on exports of broken rice and a 20 per cent export duty on other grades of rice. "Given that the stability of rice prices in 2022 was instrumental in preventing a fully-fledged global food crisis, the prospect of higher rice prices could spell potential emergency conditions in already stressed regions," it added. Almost nine out of ten of the chief economists expected growth in Europe to be weak in 2023, while moderate growth is expected in the Middle East and North Africa (MENA) region, the US, South Asia and Latin America. The grim outlook for growth is being driven in part by high inflation, which has triggered sharp monetary tightening across many economies. With the exception of China and the MENA region, most of the chief economists surveyed expect high inflation to persist for the remainder of 2022, with expectations somewhat moderating in 2023. As the high cost of living reverberates around the world, the chief economists were in agreement that wages will fail to keep pace with surging prices in 2022 and 2023, with nine in ten expecting real wages to decline in low-income economies during that period, alongside 80 per cent in high-income economies. With household purchasing power weakening, the majority of the chief economists expected poverty levels across lowincome countries to increase, compared with 60 per cent in high-income countries. "Growing inequality between and within countries is the ongoing legacy of COVID-19, war and uncoordinated policy action. With inflation soaring and real wages falling, the global cost of living crisis is hitting the most vulnerable hardest, said Saadia Zahidi, Managing Director at the World Economic Forum. "As policymakers aim to control inflation while minimizing the impact on growth, they will need to ensure specific support to those who need it most. The stakes could not be higher," she added. The cost of living crisis is driving concerns around energy and food prices, the survey showed. Many chief economists appeared concerned about the risks of food insecurity in South Asia and Central Asia, while nearly 80 per cent of the respondents expected rising costs to trigger social unrest in low-income countries versus 20 per cent in high-income economies. The Chief Economists Outlook is a quarterly report that builds on the latest policy developments, consultations and surveys of leading chief economists on the most pressing economic topics.
Source: Economic Times
India's trade policy needs to expand on what 'self-reliance' means India’s foreign trade policy was last updated in 2015. It was supposed to last for five years, until 2020. But, to an extent because of the complexities caused by the pandemic, it has been extended by six months at a time since then. The global economy has not yet emerged completely from the pandemic-related disruptions; and to those have been added the uncertainties due to inflationary pressures worldwide and the Russian invasion of Ukraine. Thus, the Union commerce ministry has postponed the release of a new foreign trade policy yet again. While it is understandable given the global situation, the fact is that a new comprehensive trade policy is overdue. This is because the broader attitude towards external trade links in the country has clearly changed since 2015, but there is no clarity about the new direction for policy. Clothing in natural fibres, bright hues and ethnic motifs is in demand for festive season: ReshaMandi
A data intelligence company recently highlighted that consumers tend to shop more during this festive season as compared to rest of the year. It also revealed that consumers plan to shop more this festive season in comparison to last year. ReshaMandi – India’s largest farm-to-fashion digital ecosystem for natural fibres – opines that the main emotion amongst the populace is a desire for calm and stability mixed with a sense of excitement and celebration as markets continue to open and economies recover. The company recently introduced a trend forecast report, a first for the industry, which focuses on the Indian fashion business and provides critical insights into the trends expected to prevail this festive and winter. According to the forecast, the season will be characterised by opulent and positive tones that provide a sense of hope and luxury for trying circumstances. Sarees are an essential component of Indian festival clothing. This year, traditional sarees such as those woven in the Kanjeevaram, Banarasi, Tant, Pochampally and Kota styles are likely to be more in demand. In terms of details, small border/borderless, micro motifs, digital traditions, updated zari, scalloped/lace edges, translucency are expected to be more popular. The fabrics that are anticipated to rule the holiday season are soft silk, cotton/cotton silk, organza/tissue, chiffon/georgette and banarasi silk. Traditionally, festive attire comes with embellishments such as sequins, glitter and sparkles, which may suit a specific occasion, but do not necessarily qualify as being ecofriendly. The good news is that Indians are now aware of how fast fashion continually affects the environment over the years. ReshaMandi is steadily building the framework for eco-friendly apparel, fabrics and home furnishing to establish a new world of textiles and transform the industry by offering consumers and businesses sustainable solutions that are accessible, available and affordable.
Source: Business Standard
China recently expressed confidence overachieving positive foreign trade growth in the second half (H2) this year, with fresh measures aimed at stabilising such trade introduced amid weakening external demand, according to vice commerce minister Wang Shouwen, who said the slowdown in external demand growth is the largest uncertainty facing China's foreign trade now. Confident about the role of foreign trade expansion in shoring up the country's economic recovery, he attributed the drop in export orders partly to the economic slowdown in some major economies, citing a sluggish economic outlook and a slower growth in global trade in goods. Factors like rising inflation in some major economies and the high inventory levels of foreign importers also resulted in the decline in orders, which has affected not only Chinese firms but also exporters in Southeast Asia and other countries, Wang was quoted as saying by an official news agency. Earlier data showed China's foreign trade sustained growth momentum in the first eight months of the year, jumping by 10.1 per cent year on year (YoY) to 27.3 trillion yuan ($3.95 trillion). In August alone, however, the country's foreign trade volume registered an 8.6 per cent YoY increase, down 7.9 percentage points from that in July. Some export companies have seen a decline in the number of orders recently. To help companies navigate difficulties, China's commerce ministry recently issued a circular on stabilising foreign trade, which Wang said will strengthen the country’s capability of foreign trade companies to deliver contracts and further expand their presence in the global market. Efforts will also be made to ensure special funds for international economic cooperation and foreign trade are used fully and at an accelerated pace, and to enhance services for companies to participate in overseas exhibitions and conduct business negotiations. To stimulate innovation vitality, China will pilot market procurement trade on a new list of markets, develop a new group of innovation demonstration zones for the import trade and establish a number of new integrated pilot zones for cross-border e-commerce. Measures have been put in place to raise the efficiency of transportation of goods between inland regions and coastal ports, and to improve domestic land transport to accelerate transshipments as well as the inbound and outbound transport of goods, Wang added citing the circular.
Source: Fibre2fashion
The projection for Germany’s export industry has dropped to minus 6.0 points in September 2022, which is a further decline from minus 2.8 points in August 2022, according to the Ifo Institute for Economic Research. The expectation for exports is currently at its lowest level since May 2020. The Ifo Business Survey for September 2022 reveals that there are no signs of development in the exports sector of Germany currently due to the global economic slowdown. Moreover, any major changes in the medium term are deemed highly unlikely. For many manufacturing industries, expectations regarding exports are negative. The Ifo Export Expectations take into account 2,300 monthly reports from manufacturers across Germany. Acrylic staple fibre prices see sharp fall globally amid poor demand (Source: Fibre 2 Fashion, September 28, 2022) Acrylic staple fibre prices are under constant pressure in the global markets. According to the latest data, the product has witnessed a steep fall of around 5-7 per cent since July 2022. The man-made fibre has remained bearish since January this year due to limited buying and the prices are likely to remain rangebound in the coming months. The average price of acrylic staple fibre (1.5D) dropped by 6.47 per cent to $2,522.30 per MT (CIF) in north-east Asian market during July-September 2022, according to Fibre2Fashion’s market insight tool TexPro. The prices were at $2,735.94 per MT in January-March and $2,696.92 per MT during April-June 2022. Acrylic staple fibre (3D*64mm) slipped by 5.35 per cent and the average price was $2,634.93 per MT in July-September 2022 in the Chinese domestic market. It eased by 2.74 per cent to come down to $2,783.77 per MT in April-June. The product was priced at $2,862.10 per MT in January-March 2022. As per TexPro, FOB China price of the same product declined by 4.18 per cent to $2,806.45 per MT in July-September. It slipped by 3.16 per cent to $2,928.81 per MT in April-June 2022. The average price of the product was $3,023.31 per MT in JanuaryMarch. The downward trend continued till last week when the price of acrylic staple fibre (1.5D) dropped to $2,300 per MT (CIF) in north-east Asian market. Acrylic staple fibre (3D*64mm) slipped to $2,408.83 per MT in the Chinese domestic market. FOB China price of Acrylic stable fibre (1.5D*38mm) decreased to $2,684.66 per MT.
Source: Fibre 2 Fashion
South Korea’s National Assembly yesterday ratified a free trade agreement (FTA) with Cambodia, rounding off the final domestic procedure essential for the implementation of the FTA signed in October last year. The FTA, signed into law in Cambodia in January this year and ratified in June, is expected to boost Cambodian exports of garments, textiles and footwear to South Korea. The agreement also presents opportunities for value-added investments in Cambodia’s downstream processing industries through a ‘plus one business model’, in which South Korean companies could expand their supply chain network developed in not only China but also Vietnam or Thailand. The Cambodia-Korea Free Trade Agreement (CKFTA) is expected boost trade between the two countries with South Korea agreeing to remove tariffs on 95.6 per cent of products imported from Cambodia, while Cambodia will eliminate duties on 93.8 per cent of imported goods, according to media reports from South Korea. Cambodia-South Korea bilateral trade was valued at $885 million in 2020 and grew by 9 per cent to $965 million in 2021. Further, Cambodia imported goods worth over $600 million from South Korea in 2021 while exports reached $341 million to the East Asian nation. The National Assembly also ratified an FTA with Israel, signed in May last year. South Korea is the first Asian nation to have an FTA with the Middle Eastern nation.
Source: Fibre 2 Fashion
The new Horizon Europe project CISUTAC wants to support the transition to a circular and sustainable textile sector. As part of a consortium of 27 partners working on the project, Aimplas will focus on the extraction of contaminants and deinking of recycled polyester garments at pilot scale with solvent and non-solvent technologies. The production and consumption of textile products continue to grow, together with their impact on the environment, due to a lack of reuse, repair and recycling of materials. Quality, durability, and recyclability are often not being set as priorities in the design and manufacturing of clothing (EU Strategy for Sustainable and Circular Textiles, March 2022). CISUTAC aims to remove current bottlenecks in order to increase textile circularity in Europe. The objective is to minimise the sector’s total environmental impact by developing sustainable, novel, and inclusive large-scale European value chains. The project will cover most parts of the textile sector by working on 2 material groups representing almost 90% of all textile fibre materials (polyester, and cotton/cellulosic fibres), and focusing on products from 3 sub-sectors experiencing varying circularity bottlenecks (fashion garments, sports and outdoor goods, and workwear). CISUTAC will follow a holistic approach covering the technical, sectoral and socioeconomic aspects, and will perform 3 pilots to demonstrate the feasibility and value of repair and disassembly, sorting (for reuse and recycling), circular garments through fibre-to-fibre recycling and design for circularity To realise these pilots, the consortium partners will develop semi-automated workstations, analyse the infrastructure and material flows, digitally enhance sorting operations (for reuse and recycling), and raise awareness among the consumers and the textile industry. As part of the CISUTAC consortium, AIMPLAS will contribute its expertise in the extraction technology for removal of inks, dyes and other surface contaminations. This will enable large scale thermoplastic recycling of polyester textile and allow a wider range of textile waste to be used as input material because of the integrated purification and decontamination step.
Source: Recycling Magazine
• August merchandise exports income tops US$ 1.2bn • Apparel & textile exports up 15% to US$ 565mn • Jan-Aug. cumulative exports up 12% to US$ 8.85bn • Cumulative apparel & textile up 19% to US$ 4.08bn Sri Lanka recorded its highest merchandise export income so far for this year in the month of August amid increased export earnings from textile & apparel exports, the data released by the Export Development Board showed. August became the fourth consecutive month to report over one billion dollars of export income as the month saw a merchandise export income of US$ 1.21 billion, up 10 percent from the same month in 2021. Apparel & textile exports nearly accounted for half of the export income in August, as such exports generated US$ 565.37 million, up 15.03 percent from a year ago. Tea exports also rose 6.52 percent year-on-year (YoY) to US$ 124.41 million, while rubber-based exports rose 8.11 percent YoY to US$ 99.83 million. Diamond, gems and jewellery exports also rose 95.23 percent YoY to US$ 45.24 million in August. Seafood exports in August rose 37.04 percent YoY to US$ 25.53 percent and spice and essential oil exports edged up by 0.8 percent YoY to US$ 40.11 million. However, petroleum products exports fell 10.07 percent YoY to US$ 114.84 million while coconut-based products exports also fell 3.71 percent YoY to US$ 71.21 million. Meanwhile, for the January-August 2022 period, apparel and textile imports increased 19.30 percent YoY to US$ 4.08 billion. However, both tea and rubber cumulative export income for the period fell 7.16 percent and 0.46 percent to US$ 819.31 million and US$ 705.70 million respectively. Diamond, gems and jewellery exports rose 37.67 percent to US$ 234.83 million. During the January-August period the United States (US) emerged as the biggest export destination for Sri Lanka accounting for little over US$ 2.3 billion out of the cumulative export income of US$ 8.85 billion for the period, up 12.01 percent YoY. The United Kingdom (UK) and India were the second and third biggest buyers of Lankan produce. In terms of regions, the United States and the European Union (EU), excluding the UK, emerged as the top buyers of Lankan produce. Sri Lanka benefits from trade concessions from the US, EU and the UK. During January-August 2022 period, exports to Sri Lanka’s free trade agreement (FTA) partners accounted for 7.2 percent of total merchandise exports to US$ 623.17 million, up by 10.11 percent. Although exports to India increased by 12.77 percent YoY US$ 570.46 million, exports to Pakistan decreased by 12.28 percent YoY to US$ 60.08 million during the period under consideration. Meanwhile, the estimated value of services exports for the period of January-August 2022 was US$ 1.31 billion, up 5.58 percent YoY. The services exports estimated by EDB consist of ICT/BPM, construction, financial services and transport & logistics.
Source: Lanka Web
A consortium of 27 partners including EURATEX (European Apparel and Textile Confederation) has launched the new Horizon Europe project CISUTAC (Circular and Sustainable Textiles and Clothing) to support the transition to a circular and sustainable textile sector and economy. CISUTAC aims to remove current bottlenecks in order to increase textile circularity in Europe. The objective of the project is to minimise the sector’s total environmental impact by developing new, sustainable, and integrated large-scale European value chains, according to a press release by EURATEX. The project will include most parts of the textile sector: comprising the two groups of fibres that represent almost 90 per cent of all textile fibres (polyester and cotton/cellulose) and focusing on products from three sub-sectors experiencing most circularity bottlenecks (fashion garments, sports and outdoor goods, and workwear). CISUTAC will follow a holistic approach covering the technical, sectoral, and socio-economic aspects of textile value chain, and will perform three pilot phases to demonstrate the feasibility and value of repair and disassembling; sorting (for reuse and recycling); and circular garments through fibre-to-fibre recycling and design for circularity. To realise these pilots, the consortium partners will develop semi-automated workstations, analyse infrastructure and material flows, digitally enhance sorting operations (for reuse and recycling), and raise awareness among consumers and the textile industry. As part of the CISUTAC consortium, EURATEX will facilitate the circular economy transition; liaise with other projects and initiatives; support the development of training and education material, including masterclasses and MOOC; raise awareness in Europe of the environmental impact of textile; and provide input for policy, standardisation, and certification to facilitate the transition to the circular economy, added the release.
Source: Fibre2fashion
The value of textile and garment exports from Pakistan increased by 4.18 per cent in July-August 2022, the first two months of the new fiscal 2022-23 (July-June). During this period, Pakistan earned $3.056 billion from textile and apparel exports, compared to $2.933 billion in July-August 2021, according to latest data from the Pakistan Bureau of Statistics. Category-wise, knitwear exports rose 16.95 per cent year-on-year to $884.759 million during the period under review, while exports of non-knit readymade garments were up 8.49 per cent to $634.596 million. As for textiles, cotton yarn exports decreased by 17.03 per cent to $160.453 million, while exports of cotton fabric rose by 2.65 per cent to reach $377.374 million in July-August 2022. Bedwear exports declined by 3 per cent to $512.291 million during the period, the data showed. Synthetic fibre imports decreased by 29.15 per cent year-on-year to $115.030 million, while imports of synthetic and artificial silk yarn dropped 24.04 per cent to $117.182 million during the same period. Meanwhile, the value of textile machinery imports by Pakistan decreased significantly by 35.38 per cent year-on-year to $93.330 million in July-August 2022. In fiscal 2021-22 ended June 30, textile and garment exports from Pakistan increased by 25.53 per cent to $19.329 billion over $15.399 billion in the previous fiscal. In fiscal 2019-20, the exports amounted to $12.526 billion.
Source: Fibre2fashion
