NATIONAL:
'Switching to man-made fibre will help apparel manufacturers get higher prices'
India-US trade may reach $500-600 billion by 2030: Piyush Goyal
Every campus must become incubators for startups, promote innovation: Piyush Goyal to institutes
FTA talks with EU to focus on goods and investments
US slowdown hits Noida apparel companies
The role of digitisation and analytics in manufacturing
INTERNATIONAL
CEPA: A doorway to Bangladesh-India trade
China & Vietnam claim 71% share in Japan's apparel imports in Jan-Sept
Bangladesh, Singapore to discuss FTA; apparel trade below 2019 levels
Partnerships will drive growth in Nigeria’s textile industry – Kern
Goods made of jute recycling can fetch $3b annually: BGMEA
The Future is Bright: Supporting Afghan Women Entrepreneurs
NATIONAL:
Switching to man-made fibre will help Bangladesh apparel manufacturers get higher prices, said André Wissenberg, vice-president of Germany-based Oerlikon Textile GmbH."Bangladesh has the potential to switch to the production of synthetic fibre-based textile and apparel to realise greater per unit values in the world market," he made the remarks while addressing a programme at the Radisson Blu Water Garden in the capital recently. The global consumption of polyester filament and staple fibre has been on the rise whereas the demand for clothing made with cotton has been on the decline, he said and hoped that Bangladesh's investment in the synthetic fibre sector will grow further. "Buyers are choosing man-made fabrics as substitutes to cotton fibre for sustainability and environmental issues.""Bangladesh is the world's second-largest exporter of textile goods while Germany is the second largest importer of the products from Bangladesh. Germany and Bangladesh are therefore in close bilateral dialogue," added André Wissenberg. Synthetic fibre makes up 78% of the world's clothings and the remaining 22% is made of cotton fibre, he said, citing the International Textile Manufacturer Federation. However, 70% of garments exported from Bangladesh are based on natural cotton while the remaining 30% are made of synthetic fibre.The global man-made apparel trade stood at around $179 billion in 2019, according to the Federation, with Bangladesh holding only 5% market share. Its rival Vietnam then held 10% of the man-made apparel trade, he added.Taking part in the programme, Mumbai-based Oerlikon Barmag Vice-President and Sales Director Debabrata Ghosh said Bangladesh has successfully contained the impact of the coronavirus by vaccinating over 120 million population and keeping the engine of the national economy on the right track.Citing the statement of former US Secretary of State Henry Kissinger who once termed Bangladesh a 'bottomless basket', Debabrata Ghosh said, "Bangladesh is now an Asian tiger." Dhaka North City Corporation Mayor Md Atiqul Islam and DSM Commodities Chairman and Managing Director Deepok Baral, among others, also spoke at the event, jointly organised by Oerlikon Textile GmbH and Company KG of Germany and Oerlikon Textile India to celebrate the founding centenary of Oerlikon Barmag and the golden jubilee of Bangladesh independence.Established in 1922, Barmag is one of the world's first companies to construct machines for the large-scale production of synthetic staple fibres.
Source: The Tbsnews
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Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal said the World today recognizes that India has arrived. He was speaking at a function organized by a media house in New Delhi today.
Shri Goyal said that both in the political world and the business world, everyone now acknowledges the India story. Elaborating on it, he said India’s story shows a lot of positive mindset, shows aspirations of a billion plus people desiring a better life for themselves. The story is not limited to economic growth only, it also shows political stability, which has a huge thrust on the corruption free society, he added. India is the one bright spot in the world, which will not only improve the lives of a billion plus people, but would also lend a helping hand to the world economy, he said. The world is dependent on India for not only its own economic growth and India's market, but also for India's demographic dividend and huge talent pool. Shri Goyal said he believes India is going to be a global superpower in the next 25 years.Shri Goyal said the Government gives top priority to the interests of India while entering into FTAs with countries. India doesn’t enter into agreements just for the sake of doing it but only after extensive consultations with all the stakeholders and in-depth brainstorming covering all the issues, he added. Shri Goyal informed the gathering that India negotiates from a position of strength but wants a fair and balanced deal. Shri Goyal highlighted that opting out of RCEP (Regional Comprehensive Economic Partnership) was a courageous decision made in the interest of our industry and our nation. Shri Goyal said that the new India had a bright tomorrow, a very powerful tomorrow and a very prosperous tomorrow. He termed India as the energetic youthful nation, which wants better things in life, which is willing to experiment, innovate, and take risks. Sharing his experience of interaction with the startup youths in Varanasi yesterday, he said there is a lot of positive energy in the country and high levels of nationalistic spirit. The mindset of the people is changing, India's confidence is getting stronger and India's future is secure, he added.
Source: The Pib
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Commerce and Industry Minister Piyush Goyal on Saturday exuded confidence that the India-US bilateral trade in goods and services will reach USD 500-600 billion by 2030 as their relation continues to strengthen. The trade between the two countries stands at about USD 175 billion at present.On whether India will join the trade pillar of 14-member Indo-Pacific Economic Framework for Prosperity (IPEF), Goyal said it would depend on what India will get in return.While 13 member countries have joined all four subjects -- trade, supply chains, clean economy and fair economy-- under IPEF, India has opted out of the trade pillar as of now. It has joined the other three subjects."With regard to joining the trade pillar of IPEF, India decides its strategy on its own terms...If you want binding commitments (from India) on different subjects, tell me what I am getting in return. It has to be good for my people and my country. What you give me in return will determine whether I will join the trade pillar. You negotiate and if we see some advantage, then we will join."India and the US relations are continuously improving and strengthening and today we have a bilateral trade of about USD 175 billion (exports and imports of goods and services). I believe that in the coming 7-8 years , it will be USD 500-600 billion by 2030, when our exports in goods and services will be USD 2 trillion each," Goyal said.He was speaking at the Hindustan Times Leadership Summit 2022.On a free trade agreement with the US, the minister said America is not looking for a new trade pact with any country.The US is looking at India as its friend and a trusted partner, he added. The IPEF was launched jointly by the US and other partner countries of the Indo-Pacific region on May 23 in Tokyo. The 14 IPEF partners represent 40 per cent of the global GDP and 28 per cent of global goods and services trade. The members include the US, Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. On trade pacts, he said the government conducts comprehensive consultation with all the stakeholders before taking a call on these agreements. "We do not do FTAs for the sake of FTA," he said, adding trade pacts signed between 2008 and 2011 are "unbalanced and unfair". Further, on assembly elections in Himachal Pradesh and Gujarat, he exuded confidence that the BJP would form the government in both states with full majority.
Source: The Economictimes
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Campuses of all the institutes under commerce and textiles ministries should become incubators for startups and look for ways to promote innovation and entrepreneurship in the country, Union Minister Piyush Goyal said on Saturday. He suggested this while interacting with the heads and senior faculty members of the Indian Institute of Foreign Trade (IIFT), Indian Institute of Packaging (IIP), National Institute of Design (NID), National Institute of Fashion Technology (NIFT) and Footwear Design and Development Institute (FDDI) here. The minister also said these institutions should significantly increase their student intake. "The minister called for improving campus placements by marketing ourselves better to the world. He asked the institutions to introspect if their education is tailormade to cater to the needs of tomorrow," the commerce ministry said in a statement. The minister suggested considering having common campuses for more effective utilisation of resources and thinking about merging bodies to strengthen them. Goyal, who holds the commerce, consumer affairs and textiles portfolios, also called for modernisation of campuses, equipment, testing labs and technologies to make them world class. "The minister also urged campuses to locate prospective GI (Geographical Indications) products and nurture and develop them whenever possible. India has the potential to have upto 2000 GI products," it said. During the interaction, the institutes made presentations on the salient aspects of their structure and functioning and shared their suggestions and requirements for further growth and expansion. Textiles Secretary Rachna Shah suggested that a core group of the heads of the institution and senior ministry officers may be constituted for more intensive and sustained exchange of ideas and collaboration.
Source: The Zeebiz
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India and the European Union are likely to discuss issues related to investment and trade in goods during the third round of free trade agreement (FTA) talks, which will begin in Delhi on November 28. "The negotiators from the EU are coming here for the talks. Negotiations on goods and investment are high on the agenda," said an official, who did not wish to be identified.he two sides relaunched FTA negotiations after a nine-year hiatus and initiated separate negotiations for an Investment Protection Agreement and an Agreement on Geographical Indications in June. The EU has proposed an anti-fraud clause in the goods chapter which deals with preventing, detecting and combating breaches or circumventions of customs legislation related to the preferential treatment, said people with knowledge of the matter. The first round of talks, held in June, focused on the EU's proposals for 18 chapters. The second round took place in October in Brussels.Discussions have happened on chapters on issues including digital trade, government procurement, anticompetitive conduct, merger control and subsidies, state-owned enterprises, dispute settlement, good regulatory practices, and energy and raw materials. The EU's share in foreign investment inflows to India rose to 18% from 8% in the last decade, making the bloc India's largest source of foreign direct investment (FDI). Between April 2000 and September 2020, FDI inflows from the EU to India totalled $86.82 billion.
Soorce: The Economictimes
The economic slowdown in the US has hard hit apparel exporters from Noida, whose payments of Rs 3,000 crore have got stuck as buyers from the US have asked them to delay shipments. The exporters said the US buyers have asked them to ship the consignments that were supposed to leave in September during December-January period. Noida-based apparel exporters generally make fashionable apparels priced at $8-10 per piece, unlike Tirupur exporters who make basic items in the range of $4-5 per piece for overseas markets."Orders have slowed down from the US and also from Europe. The US is the biggest market for us. The buyers were not keen to pick up the orders that were supposed to leave in the month of September. This has created a lot of financial problems for the apparel exporters based in Noida," said Lalit Thukral, president, Noida Apparel Export Cluster (NAEC).
Source: The Economictimes
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In the age of automation, there is an extensive use of digital technologies as this enables faster data integration as well as smooth, accurate and efficient processes across machines, which helps businesses manufacture high-quality products at lesser costs. Industry 4.0 is a digital transformation that connects us through “smart” technologies like Blockchain, Internet of Things and Artificial Intelligence. It aids in revolutionising modern-day manufacturing by giving an in-depth understanding of product design and process, and by accommodating R&D experimentation. The ESG initiative of Energy Monitoring system has been implemented in the plants to reduce energy specific consumption in turn reducing the carbon footprint. As we peer into the future, we are looking for ways to find value through connected, virtual and human experiences – and even as Industry 4.0 continues to help businesses, it is paving the way for Industry 5.0. Still in its nascent stages, Industry 5.0 is advancing the collaboration between humans and machines as a response to increased customisation in products. Industry 4.0 puts smart technology at the forefront of manufacturing, whereas Industry 5.0 will focus on the collaboration between humans and machines. The union of the two will synthesise the accuracy of industrial automation with the perceptive and critical thinking skills of humans. However, in order for organisations to adapt to the next digital revolution, there are a number of things that organisations would need to look at:
Upskilling of the workforce
Upskilling of employees is crucial. This has several distinct advantages over hiring new workers, since veteran employees know the company culture, have a deep understanding of the company’s products and services, and have higher chances of being more committed to the company. Upskilling also helps to bridge the gap in digital skills and fosters a stronger connection between employees and technology. This is paramount as industry 4.0 moves ahead and gazes upon the next revolution. As business operations need to be more adaptable to the future, so does the workforce. The frontline workers are among the core strengths of businesses; more so for textile manufacturing companies. A business’ responsibility does not end with hiring the right manpower. Companies need to invest in educating and upskilling the workers regularly. At Welspun, we launched the DigiSmart programme to help all our workers. Built on an inclusive approach to learning, the programme provides training towards building critical capabilities of the workers aimed at a smart factory of tomorrow. Intensive training on data analytics, e-commerce, and Industry 4.0 skills and applications deployed on shop floor are some of the programs covered.
Boosting digital capabilities
Building digital capabilities and setting up cross-functional governance is now almost imperative for all organisations and manufacturing units in particular, along with hiring talent well equipped in technology; only then will digitisation prove to be efficient. It is important to have a long-term vision to understand the need for a digital transformation for an end-to-end process starting from raw material procurement to sales of the finished products to end customers. Welspun has actively incorporated Traceability into its production processes using advanced techniques of Blok chain. As we see the program evolve from Weltrak 1.0 to Weltrak2.0, the core vision is the complete track down of commodities like Cotton from Farm to shelf. Advanced analytics can help unearth opportunities to increase production yields and provide insights into what the customers want. The automatic towel counting system using Artificial Intelligence is an ideal example. The data thus gathered can be used to manufacture products that best fulfil the needs of their customers by enabling integration between data, man and intelligence as we move forward.
Securing data and investing in smart factories
The role of digitisation in decoding manufacturing units would be first to turn them into Smart Factories. A smart factory possesses the capability to be fed with real-time data and analyse it to make decisions on new findings. The overall flexibility of the manufacturing process is greatly enhanced in smart factories and can help manufacturing units look beyond physical limitations. Welspun has successfully and continuously integrated smart technologies and analytics and apply the insights onto the production processes over its course. We have focused on reducing the gap between machines and data being treated in silos in multiple fronts of production including Cut&Sew, spinning weaving and packaging. Companies need to manage cybersecurity end to end to protect digitally-managed shop-floor operations and proprietary data as there are multiple cybersecurity risks associated with the huge capital investments required to set up a Smart Factory. Managing data as a valuable business asset is also important in securing critical control points for manufacturing companies as it can be used to make an analysis that would give insights into various aspects of the industry. Optimising production, flexibility and customer orientation, and providing opportunities for new skill sets and jobs are just a few benefits that are being ushered in by this revolution, while setting the precedent for the next one. Industry 5.0 is set to bring in a new collaboration between man and machine, allowing for quality creativity. Contrary to popular belief, this collaboration is not going to harm the human-machine balance in any way; it would rather increase the cooperation between people and intelligent production systems.
Source: The Times of India
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INTERNATIONAL
The post-Covid-19 world has witnessed a shift in regional economic cooperation strategy from multilateral to bilateral cooperation agreements. In the past years India–Bangladesh relations have been on an upward swing. The two countries have made strides in bilateral relations as well as in aspects relating to sub-regional cooperation. Cross-border trade has increased manifold with improvement in connectivity networks.Against this backdrop, India and Bangladesh have agreed to start formal negotiations for a Comprehensive Economic Partnership Agreement (CEPA). From trade to connectivity and from the socio-economic to the infrastructural arena, the agreement may bring forth a profound sense of cooperation and partnership Under this agreement, the two governments will recognize each other’s needs and requirements in the context of their developing economies and will explore all options, including economic and technical cooperation, for promoting, facilitating, expanding, and diversifying trade between the two countries based on equality and mutual benefit. CEPA is an instrument for facilitating bilateral trade between India and Bangladesh. The main benefit of CEPA is, it doesn’t have to clear the threshold of WTO, but is a more comprehensive framework in nature. India had earlier signed CEPA with three countries, namely UAE, South Korea, and Japan. Bangladesh will be the fourth country it will be signed with. Thus, India already has enough experience in negotiating a CEPA deal. Bangladesh needs to skillfully negotiate with India for mutually beneficial investment opportunities. Bangladesh’s graduation from the least-developed country (LDC) category in 2026 will also be a factor in the negotiation on the CEPA. Bangladesh needs to emphasize getting the privileges of this agreement even after the graduation from LDC. To identify the pros and cons of the deal, a joint feasibility study was also conducted. The result of the study showed that CEPA would boost Bangladesh’s export earnings by 190 percent and India’s by 188 percent. The same study also reveals that the gross domestic product (GDP) of the two countries is also expected to rise, by 1.72 percent and 0.03 percent respectively. Bangladesh is a large market for India with increasing consumer power. So, there are manifold investment opportunities for India in Bangladesh. Indian foreign direct investment (FDI) in Bangladesh has started to rise since 2014. Annual average FDI from India stood at $90 million in the last decade. It is, however, quite low compared to FDI from China which stood at $245 million annually on average. So, Indian investment is still small compared to other developing partners of Bangladesh. CEPA may be helpful in boosting this connection. This may benefit both countries under the Comprehensive Economic Partnership Agreement. Along with the investments, there will be prospects for employment opportunities in Bangladesh. So, the officials from both sides should start the groundwork of this agreement and exploit exclusive investment opportunities to facilitate bilateral trade as soon as possible. First of all, Bangladesh is the second-largest exporter of ready-made garments in the world and India is a very large market, whereas India has cotton and Bangladesh can do yarns and garments. Joint investment between the two countries can be increased under this agreement. Bangladesh is already in advanced talks with Tata Group and Ashok Leyland. Tata group already has an assembly plant in Bangladesh. It can bring a large automotive investment for Bangladesh. Other than these sectors, India can invest in the area of food, pharmaceuticals, leather and leather products, textile and apparel sector, agro-based Industries and farm machinery plants, automobiles, light engineering and electronics, ceramics, ICT sector, banking and financial services, telecommunications, and mega construction projects. Bangladesh is establishing three large Special Economic Zones for Indian entrepreneurs. In these special regions, Indian investors will be able to set up factories to cater to the supply chain needs of Bangladesh and the North-Eastern states of India, and to export to other parts of the world. India has huge opportunities to generate power from renewable sources, such as solar and hydro. At present, India has renewable energy plants with the capacity to generate 151 GW, which accounts for around 39 percent of its total power generation. Also, India has set a target of expanding its capacity to 500 GW by 2030. Bangladesh can increase the share of renewable and green energy in its total consumption by either investing in India’s renewable energy projects to get electricity through cross-border lines, or importing electricity without investing in generation projects. Not only that, the Bangladeshi market has a huge demand for the products of West Bengal due to the cultural similarity. But as of now, there had been no significant investments from West Bengal to facilitate any formal trade relations. Similarly, West Bengal has a large number of consumers who are highly interested in Bangladeshi goods (such as in the food and garments sectors). Bangladesh can be an exclusive area of investment especially for “West Bengal-centric” investors. On the contrary, Bangladesh can invest in India in the field of food and beverages, agro-processing, pharmaceuticals, plastics and rubber products, leather and leather products, textile and apparel, jute and jute products, cement, spinning mills, electronics and batteries, travel and tourism and ICT sectors. If the abilities and sources of the two countries will be used for each other’s growth, this may benefit both countries under the Comprehensive Economic Partnership Agreement. Along with the investments, there will be prospects for employment opportunities in Bangladesh. So, the officials from both sides should start the groundwork of this agreement and exploit exclusive investment opportunities to facilitate bilateral trade as soon as possible.
Source: The Pakistantoday
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China and Vietnam collectively supplied 71 per cent of the total apparel imported by Japan during January-September 2022. China’s exports to Japan were worth $10.310 billion or 55.76 per cent of the country’s total imports of $18.490 billion in the period under review, while Vietnam was the second largest supplier with a 15.35 per cent share. China and Vietnam supplied apparel worth $13.149 billion to Japan in first nine months of this year. Vietnam alone shipped apparel worth $2.839 billion in the period, according to Fibre2Fashion’s market insight tool TexPro. Along with geographical proximity with Japan, an understanding of buyers’ choices and quality preferences play a vital role in making China and Vietnam the top suppliers. It is believed in industry circles that Japanese buyers are particular and strict in terms of quality and standards of the products they buy. The other countries that make it to the list of top 5 exporters to Japan include Bangladesh (5.44 per cent), Cambodia (4.98 per cent) and Myanmar (4.19 per cent). Indonesia, Italy, Thailand, India, and Malaysia are the other suppliers enlisted as the top ten suppliers. But their share of supply was less than 3.2 per cent each, as per TexPro. In the year 2021, Japan imported apparel worth $23.804 billion. China’s share in it was 58.30 per cent with supply valued at $13.878 billion, while Vietnam’s share was 14.49 per cent valued at $3.450 billion. The other top 10 exporting countries had a marginal share in 2021.
Source: The Fibre2Fashion
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Bangladesh and Singapore are looking to boost their bilateral trade and investment through a free trade agreement (FTA), which they aim to sign this year. Bangladesh was the fifth largest apparel supplier for Singapore, however, the inbound shipment has not recovered yet after COVID disruption in 2020. FTA may boost the trade opportunity for both countries. Singapore and Bangladesh will begin negotiations very soon. Singapore’s officials will visit Bangladesh to sign a memorandum of cooperation (MoC) in this connection, as per media reports. Currently, the principal import products from Bangladesh to Singapore are knitwear, woven garments, home textile, agricultural products, and engineering products. According to Fibre2Fashion’s market insight tool TexPro, Singapore imported apparel worth $127.338 million in 2021 from Bangladesh which was slightly higher than the inbound shipment of $122.098 million in 2020. Before the pandemic, the country had imported apparel worth $196.576 million in 2019, $234.921 million in 2018 and $223.005 million in 2017. The inbound shipment of current year is not likely to touch pre-COVID level either. Its apparel imports from Bangladesh amounted to $116.272 million in the first nine months of this year. Monthly imports stood at $9.720 million in September, $23.109 million in August, $10.861 million in July and $11.5000 million in June 2022. Overall, Singapore imported apparel worth $1727.052 million in January-September 2022, and Bangladesh claimed the fifth spot with a share of 6.73 per cent, as per TexPro.
Source: The Fibre2Fashion
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Chandramouli Kern, consulate general of India, Lagos has urged players in Nigeria’s textile industry to explore joint ventures and partnership with technological companies who have the expertise to measure up to expectations.Kern disclosed this at the Africa Textile Manufacturing and Trade Policy Summit and exhibition 2022 organised by Leoht Africa and held in Lagos“Going through the history of India, you will see that there were joint ventures with technological companies from the West or other developed countries,” Kern said. “There is no need to do things from scratch by Nigeria, they can build on the expertise of India and they can leap also they can try to enhance the value chain rather than to start from scratch”“It is common knowledge that without manufacturing a country cannot grow,” Kern continued, saying “Indian companies present will explore the possibility to be able to partner and invest in Nigerian businesses in this exhibition and they can send business proposals. We will be ready to help with technology, training and expertise needed to build a vibrant textile industry in Nigeria.”“Apart from that, the African free trade area is in the final stages and I see a very profitable position for Nigeria because you have the strength, the resources and with the partnership with Indian big companies, you can supply for Africa.”Kern added that the consulate is fully functional in Lagos and ready to help industry players who have prospective business proposals with access to partners in India.“I will encourage all of you to write your business proposal to us. If you have decided that you want to collaborate with India, we will try to help with a match booking application,” he noted.In addition to that, Bunmi Aliyu, Leot Africa and organiser of the Source Textile and Apparel conference noted that the event is focused on making Nigerian apparel, accessories, textiles, footwear and leather relevant more than ever before to businesses who seek to source and cooperate internationally.’“It will help businesses and industries to reinvigorate their global sourcing activities and to build sustainable alliances with production partners,” she added. “The exhibition had industry participation from different countries and thousands of manufacturers, wholesalers and retails from across the continent and internationally,” Aliyu said.“For a country like Nigeria whose people are fashion-conscious, the Textile industry is bedeviled by challenges which have kept manufacturing at a minimal level,” Babajide Olusola Sanwo-Olu, Governor of Lagos State said in his address. Governor Sanwo-Olu, represented by Lola Akande, Commissioner, Ministry of Commerce, Industry and Cooperatives, added that the trajectory of the textile industry in Nigeria is one that leaves not much to be desired.“It is sad that an industry that was once very viable, creating employment and wealth has dwindled and lost its pride of place in the national economy,” she said.“However, it is heartwarming and assuring that the ‘Nigeria Industrial Revolution’ plan launched by the Nigerian Ministry of Industry, Trade and Investment to build the manufacturing GDP in some industries of which Textile is one, is recording some gains especially in the area of increased capacity utilization which have resulted in more jobs being created. Part of the gains is also the ease by which foreign brands can now source for locally-made fabrics such as Adire, Aso-oke, and Oja.”“It is my firm belief that this summit will open up greater opportunities for this sector as the outcome of the roundtable discussions hosted by representatives of the Federal Government, ECOWAS officials and other relevant stakeholders would proffer good and workable solutions to the challenges in the sector.”Buttressing the governor’s position,Folake Oyemade, president of Apparel Manufacturers Association of Nigeria said, “We have some of the biggest players in the both textile and apparel sector in Nigeria within our Association and I happen to know that a lot of us are looking for collaborations in terms of partnership for manufacturing within Nigeria, which is what we need in this country right now.”“We do not want to continue to run an import-based economy, we want to become a hub of manufacturers first of all to feed the local market and then also export to meet the demands of other African continents,” Oyemade added.
Source: The Businessday
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Bangladesh Garment Manufacturers and Exporters association president Faruque Hassan on Sunday said that there was a potential for Bangladesh to earn $3 billion annually by recycling pre-consumer textile waste, known as ‘jhut’, if the government provided required policy support. At the opening ceremony of ‘Made in Bangladesh Week-2022’ held at Bangabandhu International Conference Center in the city, BGMEA president urged the government to take initiative to stop the export of pre-consumer waste and incentivise circularity, to help Bangladesh become the ultimate hub for textile recycling in the world. Prime minister Sheikh Hasina inaugurated the week-long event jointly organised by BGMEA and Bangladesh Apparel Exchange ‘Approximately 4 lakh tonnes of recyclable pre-consumer waste is produced in Bangladesh every year, of which less than 5 per cent is recycled locally, over 35 per cent is incinerated in boilers or landfills, and about 60 per cent is exported to India, Sweden, and other countries, where they are recycled and sold back to us as recycled yarn, at a higher cost,’ BGMEA president said. The recycling of pre-consumer textile waste provides a lucrative opportunity to Bangladesh, not only economically, but also socially and environmentally, he said. ‘The 4 lakh tonnes of micro-fibres and scraps that are disposed of as waste every year can be recycled to produce approximately 1 billion garments products, which has the potential to generate a revenue of about $3 billion yearly,’ Faruq said. Therefore, it is imperative to introduce policies to encourage local value addition to this waste, he said.BGMEA president said that there were already companies that have established recycling plants, like ‘Recover’ from Beximco and ‘Cyclo’ from Simco, and many other small facilities that were recycling Jhut in Bangladesh. Faruque said that it was important that the government take urgent steps to stop the export of pre-consumer waste and promote the pre-consumer waste recycling industry in Bangladesh. He also requested to allow the imports of discarded garments EU, USA and Japan. Country’s home textile exporters said goods including towel and bed sheet produced from recycle yarn has huge demand in the global market. This pre-consumer waste, or ‘jhut’, primarily consists of factory offcuts, scraps, fluffs, etc. According to the Export Promotion Bureau data, export earnings from home textile in the financial year stood $1.62 billion while the earnings from specialized textile were $314.82 million.
Source: The Newagebd
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"Without women's participation in the Afghan economy and labour force, the burden on humanitarian aid will continue to increase, and mid to long-term economic recovery in Afghanistan will not be possible," remarks Mr. Abdallah Al Dardari, Resident Representative of UNDP Afghanistan. "We need to ensure that women have a voice and agency. The aim is to support the creation of at least 1 million jobs for Afghan women in the next three years." y Firuz Saidkhadzhaev, Area Manager for Central region, UNDP AfghanistanLocated in the centre of Afghanistan's capital, Kabul, the Naweed Afghan Handicraft Company manufactures baby chairs for use in the home. The business, which has been operating for about 10 years, is owned by a woman entrepreneur, Adina Barakzai. "I migrated to Iran 20 years ago and began working in a tailoring company," says Adina. "After that, I returned to Afghanistan, where I hoped my skills would be put to good use. I initially ran my business from home. Learning to manage a business was tough, and I faced many challenges," she continues. "The hardest part was competing with imported goods from China and Iran. Their goods were cheaper, but I could compete by offering higher quality. All the embroidery was done by hand. It was a gamble, but I found that people were willing to pay a little bit more for a higher quality product made here in Afghanistan." However, running a business in a country buffeted by war and political and economic chaos has been far from easy. On top of this, like many businesses worldwide, Adina's company was hit by COVID-19. From producing 600 seats a month, output dropped to lower than 100 seats during the crisis. Then came the events of 15 August 2021, when the Afghan Government fell after the withdrawal of NATO forces, and the Taliban took over. The de facto authorities introduced severe restrictions on the types of work women could do in Afghanistan. On top of this, Afghanistan's economy collapsed. Since August 2021, more than four out of five Afghan households have experienced a significant decrease in income or lost their income altogether. Women have been hit particularly hard. In 2020, 80 percent of workers in the Afghanistan textiles and clothing industry were women. After August 2021, however, 28 percent of the women in the Afghan workforce lost their jobs, while the country's GDP dropped by over 20%[1]. Over a year later, a staggering 85 percent of women-led households are now in debt, and survive by selling their belongings or reducing their daily food intake. or Adina, the effects were devastating. "I had to sell my machines and let go of my staff. It felt like cutting off my limbs. Soon, there were only six workers left in my company." Adina considered selling her business altogether. That was when she came across an advertisement regarding the provision of small grants and support for women-led businesses. This was being administered under the Women's Entrepreneurship Recovery Grants (WERG) scheme, an initiative run by UNDP Afghanistan as part of its countrywide ABADEI programme. Implemented by UNDP alongside its non-profit partner, Harakat, the scheme develops entrepreneurs and provides business grants to existing women-owned businesses. Businesses are selected for support based on a variety of criteria, but a key criterion is that they employ women. Adina's company was accepted onto the scheme. Today, the WERG scheme supports 26 out of the 32 new employees of Naweed Afghan Handicraft Company, has procured electric sewing machines to speed up production, and assists with the running costs of the business. "The turnaround has been phenomenal," says Adina. "We are now producing and supplying more than 1,400 quality baby seats per month thanks to modern machinery, better resource organization, and planning. We are reaching a production capacity that is even better than at our peak before the pandemic." Adina's company hires young, previously unemployed women as a priority. The 32 women employees each take home up to AFN 8,000 (US$ 100) monthly, more than twice the salary of pre-COVID times. "I have a bachelor's degree in economics, but there was no opportunity for me to work in offices," says Hadia, one of the new employees. "I did not have the financial opportunity to continue my education to a higher level, so Naweed was the best place for me. I have learned practical things and can earn more income to support my family," she adds. WERG also provided four days of hands-on training on business management, planning, finance, and marketing. "We learned about cost-benefit analysis and marketing," says Adina. "Thanks to UNDP, we have also been able to hire a marketing professional to improve our branding, leading to wider reach and recognition," says Ms. Barakzai. "we are now working towards putting our products on Amazon." Altogether, UNDP Afghanistan has so far supported 34,000 women-owned Micro, Small, and Medium Enterprises (MSMEs) under the ABADEI programme. ABADEI aims to reach 54,000 women-led enterprises across the country by the end of 2022. "Without women's participation in the Afghan economy and labour force, the burden on humanitarian aid will continue to increase, and mid to long-term economic recovery in Afghanistan will not be possible," remarks Mr. Abdallah Al Dardari, Resident Representative of UNDP Afghanistan. "We need to ensure that women have a voice and agency. The aim is to support the creation of at least 1 million jobs for Afghan women in the next three years." Adina acknowledges the challenges that still face her company in the future. "I do see things which could make scaling up of the business difficult over the next few years, such as lack of access to finance because of the banking system collapse, lack of stable access to electricity, and the fact that people generally have less money to spend on consumer goods. There is also the problem of our female employees being unable to visit markets to promote our products and talk to salespeople because of cultural restrictions." Nevertheless, she is optimistic about the future. "I would have had to leave the country if it wasn't for the support I received," says Adina. "My greatest achievement is providing jobs to those who desperately need them. My products will expand beyond the Afghan borders and motivate other women to launch their own. The future is bright." The Women's Entrepreneurship Recovery Grants (WERG) Project is an initiative under UNDP Afghanistan's broader initiative on support to women-led and owned MSMEs, implemented in partnership with Harakat under the ABADEI programme. Through women-led and owned MSMEs, UNDP supports women economic empowerment in Afghanistan, contributing to the New Ten Point Action Agenda on Gender in Crisis (10PAA). The WERG project has so far supported 20 existing women-led businesses in the Central region, creating 120 jobs for women who need them most. An average increase of 15% in revenue has been reported amongst the supported enterprises. UNDP Afghanistan thanks #PartnersAtCore, a pooled funding that allows us to respond quickly and flexibly when crises strike. #PartnersAtCore support has been vital in supporting Afghanistan, now battling a double humanitarian and development situation, by addressing its socio-economic impact, strengthening community resilience, and tackling structural inequalities.
Source: The Undp
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