The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 24 NOVEMBER 2022

NATIONAL:

Maharashtra Govt sets-up committee to draft Textile Policy 2023-2028

Arvind plans extensive fibre rejuvenation programme

Duties on 100 percent tariff³ lines to be eliminated by Australia under the landmark India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA): Shri Piyush Goyal

India, GCC to launch free trade pact negotiations on Thursday

Report on sustainability suggests action plan for Indian suppliers

INTERNATIONAL:

BGMEA calls upon Li & Fung increase value-added apparels from Bangladesh

Cambodia's textile body GMAC is now officially renamed TAFTAC

Bangladesh earned $10.28 bn in FY23 Jul-Sep quarter from RMG exports

Disney-themed children's clothing recalled over risk of lead poisoning

Pakistan: Govt mulls duty on man-made fabric

NATIONAL:

Maharashtra Govt sets-up committee to draft Textile Policy 2023-2028

The Maharashtra government has formed a 24 members committee to draft the new textile policy for the state for 2023- 2028, according to a report in the Indian Express. The panel will comprise of textile commissioner, director from the Directorate of Marketing in Pune, director from the Directorate of Sericulture in Nagpur, representatives from Maharashtra Energy Development Agency, Sasmira, National Institute of Fashion Technology, Clothing Manufacturers Association of India, and wool manufacturers. On February 15, 2018, the government had come up with Textile Policy 2018 – 23, to give impetus to and promote business in the textile industry. The policy will expire at the end of March 2023. As per reports, the committee will assess the impact of the Textile Policy 2018 – 2023, the Centre’s policy, new avenues in the industry, and policies of neighbouring states. It will also suggest new measures to expand the silk cultivation in the state and propose new technologies that can be used in the textile industry. The state departments of cooperation, marketing and textiles have already issued a government resolution to this effect last week. “The textile industry holds a crucial position in the economy of the state. It has high potential to create employment, second only to agriculture. Keeping these aspects in mind, the textile policy was formulated in 2018 for five years. A new textile policy cannot be formed without studying the latest needs of the industry and the reality of its present condition,” government representative said. 

Source: The Knn

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Arvind plans extensive fibre rejuvenation programme

Leading integrated textile manufacturer Arvind, headquartered in Gujarat, India, has announced a partnership with Tulsa, Oklahoma-based PurFi Global, a technology company specialising in rejuvenating textile waste into virgin quality products. The two companies are currently planning the first in a series of fibre rejuvenation facilities close to one of Arvind’s manufacturing plants in India. It will process textile wastes – white and coloured cotton, denim and synthetics – into virgin-like fibres for reuse from two lines, each with a capacity of 5,500-tons, with plans to expand over the next five years. The investment for these two lines is envisaged at between $25-30 million and expansion plans include an additional production line that removes elastomers from fabrics utilising another of PurFi’s proprietary technologies. Currently, 85% of the world’s apparel contains elastomers, which makes recycling problematic. PurFi’s technology is the first commercially viable technology proven to safely remove elastomers without the use of toxic chemicals and preserve the host fibre, while also having the ability to recycle the elastomers that were removed. The joint venture is slated to start construction in the fourth quarter of 2022 with full production expected to commence in the fourth quarter of 2023. As the fashion industry has embraced calls for more circular and sustainable supply chains, PurFi’s proprietary technology – supported by more than 30 patents and 400-plus registered trade secrets – has emerged as a proven and complete solution for rejuvenating textiles back into virgin-like fibres. “Partnering with PurFi will enable Arvind to expand on a decades-long commitment to extending sustainable practices into every aspect of our business,” said Ashish Kumar, Arvind’s president and CEO. “For more than 25 years, PurFi has been developing and investing in state-of-the-art technology to rejuvenate industrial textile waste. Unlike the traditional ‘one-and-done’ recycling approach, PurFi’s technology can turn waste materials into virgin-like fibres 17 times, and it can be done at scale. Working together, we believe we can lead the textile and fashion industries into a new era of sustainable practices, transforming textile manufacturing into a truly closed loop cycle.” “Arvind immediately understood the value and promise of our technology and will increase efficiencies in its production with rejuvenated fabric,” said PurFi CEO Joy Nunn. “In addition, our unique tracers provide customers with a clear line of sight to the origin of the fibres they source. This authentic product identifier is of great value to manufacturers like Arvind.” PurFi’s technology requires significantly fewer resources than the production of virgin textiles. When compared with manufacturing virgin polyester, nylon or cotton, it uses up to 96% less water and 90% less energy. The process also generates 85-90% fewer greenhouse gas emissions. PurFi technology teases apart the fabric back into the original yarn, and from the yarn back to the original fibre. This process ensures the length is maintained and any resulting short fibres are filtered out. Source materials never touch unfiltered air or human hands once entering a rejuvenation line and are then penetrated by a  patented and trade secret technology to achieve a reverse spinning technique. The fibres have the option to be treated with a purification technology prior to being baled into fibre. This technology can embed the fibres with additional characteristics, including hydrophobic, hydrophilic, odour control and fire retardancy. Additionally, PurFi can blend fibres together to make customised fabric compositions. Importantly, textiles can be produced with 100% PurFi fibres, whereas conventionally recycled fibres must be blended with virgin fibres. Through Purfi’s partnership with Belgium-based Concordia Textiles, a vertically integrated textile manufacturer and finisher, the first global circular fibre company has already been established.

Source: The Innovationintextiles

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Duties on 100 percent tariff³ lines to be eliminated by Australia under the landmark India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA): Shri Piyush Goyal

Ministry of Micro, Small and Medium Enterprises (MSME) has received requests from stakeholders for inclusion of certain activities and clarification regarding National Industrial Classification (NIC) code. The requests are about inclusion of 'Drone Manufacturing', 'Portable Petrol Pump/portable service’, 'Biomass Pellet Manufacturing' and ‘Technical Textile (Packtech)’ under the NIC codes. R K Parmar, DeputyDirector (Policy), Office of the Development MSME has been directed to refer to these various requests from stakeholders received in the office.  Corresponding 5 digit as suggested by Ministry of Statistics and Programme (MoSPI) are 26515 in drone manufacturing, 47300 in 'Portable Petrol Pump/portable service, 38300 in Biomass Pellet Manufacturing and 13999 covered under NIC code in Technical Textile (Packtech). All MSME-DFOs/Director of Industries (States/UTs) and Industries Associations are asked for wide dissemination and NIC cell, O/o the DC(MSME) has been directed for necessary action.SENET Division, O/o the DC(MSME) is asked for uploading on the website of the office and on Udyam Registration Portal for information of Stakeholders and the General Public. 

Source: The Knn

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India-Australia trade pact to help boost garment exports: AEPC

Implementation of the free trade agreement between India and Australia will help boost garment exports, AEPC said on Wednesday. The agreement was approved by the Australian Parliament on Wednesday, paving the way for its rollout. Apparel Export Promotion Council (AEPC) Chairman Naren Goenka said the duty-free access for the sector to Australia under the trade pact will bring domestic exporters at par with global competitors and make local products competitive. "This will also provide a good opportunity for the Australian companies to embrace China plus one policy," he said. Recently, an AEPC delegation participated in the International Sourcing Expo in Australia. Goenka said that the Australian companies are eagerly waiting to forge stronger ties and source garment and textiles products from India and this deal will be a shot in the arm for them. "AEPC will be facilitating the Indian companies to connect with the right partners through its export promotion initiatives," he added. Australia has traditionally been a major trading partner for the Indian garment industry with exports occupying a share of about 4 per cent of total Australian garment imports. "The zero-duty deal with Australia in the southern hemisphere will keep Indian factories fully utilised during its lean period with orders for spring and summer products that Indian players are best in," he noted.

Source: The Economic times

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India, GCC to launch free trade pact negotiations on Thursday

India and the Gulf Cooperation Council (GCC) will announce the launch of negotiations for a free trade agreement on Thursday, which aims at promoting two-way commerce and investments between the regions, an official said. GCC is a union of six countries in the Gulf region -- Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain. India's exports to the GCC member countries grew by 58.26 per cent to about USD 44 billion in 2021-22, as against USD 27.8 billion in 2020-21, according to data from the commerce ministry. The share of GCC members in India's total imports rose to 18 per cent in 2021-22, from 15.5 per cent in 2020-21. Bilateral trade has increased to USD 154.73 billion in 2021-22, from USD 87.4 billion in 2020-21. "GCC officials will be here for the announcement," the official said. India has already implemented a free trade pact with the UAE in May this year. This would be a kind of resumption of FTA talks as earlier two rounds of negotiations had been held in 2006 and 2008 between India and GCC. Third round did not happen as GCC deferred its negotiations with all countries and economic groups. India imports predominately crude oil and natural gas from the Gulf nations like Saudi Arabia and Qatar, and exports pearls, precious and semi-precious stones; metals; imitation jewellery; electrical machinery; iron and steel; and chemicals to these countries. Besides trade, Gulf nations are host to a sizeable Indian population. Out of about 32 million non-resident Indians (NRIs), nearly half are estimated to be working in Gulf countries. These NRIs send a significant amount of money back home. According to a November 2021 report of the World Bank, India got USD 87 billion in foreign remittances in 2021. Of this, a sizeable portion came from the GCC nations. Bangalore-based Indian Institute of Plantation Management (IIPM) Director Rakesh Mohan Joshi said that the Gulf region holds enormous potential for Indian exporters. "India needs to have a long-term strategy to capture this market and FTA will definitely help in that," Joshi said. According to commerce ministry data, the share of these six countries in India's total exports has risen to 10.4 per cent in 2021-22, from 9.51 per cent in 2020-21. Similarly, imports rose by 85.8 per cent to USD 110.73 billion, compared to USD 59.6 billion in 2020-21, the data showed. The UAE was the third-largest trading partner of India in 2021-22. India's bilateral trade with the nation increased to USD 72.9 billion in 2021-22 as compared to USD 43.3 billion in 2020-21. Saudi Arabia was the fourth-largest trading partner last fiscal. Total bilateral trade has increased to about USD 43 billion in 2021-22, from USD 22 billion a year ago. India imports 8.5 million tonnes a year of LNG from Qatar and exports products ranging from cereals to meat, fish, chemicals, and plastics. Two-way commerce between India and Qatar rose to USD 15 billion in 2021-22 from USD 9.21 billion in 2020-21. Kuwait was the 27th largest trading partner of India in the last fiscal. Bilateral trade has jumped to USD 12.3 billion in 2021-22, as compared to USD 6.3 billion in 2020-21. Oman was the 31st largest trading partner of India in 2021-22. Bilateral trade with the nation has increased to about USD 10 billion in 2021-22, as compared to USD 5.5 billion in 2020-21. Two-way commerce between Bahrain and India stood at USD 1.65 billion in 2021-22 as against USD 1 billion in 2020-21.
Source: The economic times

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Report on sustainability suggests action plan for Indian suppliers

A report on sustainability by India’s Wazir Advisors anticipated that EU’s Strategy for Sustainable and Circular Textiles is going to have a far reaching impact on the global industry. EU-27 is the largest apparel importer from India. In 2021-22, India exported US $ 4.2 billion worth of apparel to EU-27 which is around 26 per cent of India’s total apparel exports. The report titled, Surviving the Rise of Sustainability Legislations says that it is very likely that once implemented, the sustainability strategy will actively target the issue of overconsumption through consumer awareness campaigns. The current trend of closets flooded with clothes will see a makeover. Producers as well as the consumers are likely to become more conscious of the products’ suitability, durability and ability to be reused and recycled. “Promotion of Design for the Environment (DfE) concept at garment design level under the new legislations will facilitate enhanced availability of such garments, increasing the recycled market share,” the report reads. It is pertinent to mention here that in March 2022, EU issued ‘EU Strategy for Sustainable and Circular Textiles’ that outlines its 2030 vision for textiles. By 2030, textile products placed in the EU market will be long-lived and recyclable, to a great extent made of recycled fibres, free of hazardous substances and produced in respect of social rights and the environment. Consumers benefit longer from high quality affordable textiles, fast fashion is out of fashion, and economically profitable reuse and repair services are widely available. The report suggests an action plan for Indian suppliers – product development targeted at use of recycled and alternate fibres, digitisation of all business processes, adoption of ESG guidelines and adoption of material traceability solutions are some of the steps required to be taken by the majority of Indian apparel exporters in this scenario.

Source: The Apparel resources

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INTERNATIONAL:

BGMEA calls upon Li & Fung increase value-added apparels from Bangladesh

BGMEA President Faruque Hassan called upon Li & Fung to increase sourcing garments, especially value-added products from Bangladesh. He also requested Li & Fung to explore avenues of how they could collaborate with their suppliers in developing high-end products including man-made fibre-based apparels, home textiles and other products, and source those products from Bangladesh. He made the request to Spencer Fung, Executive Chairman of Li & Fung, who paid a visit to BGMEA on November 23. Chair of BGMEA Standing Committee on Press, Publication and Publicity Shovon Islam was also present at the meeting. During the meeting, they discussed various trade-related issues, including the global apparel market situation and Li & Fung’s plans of business expansion in Bangladesh. They also talked about how Li & Fung could collaborate with BGMEA to strengthen the capability of the Centre of Innovation, Efficiency and Occupational Health and Safety (CEOSH). Their discussions also included the possible scope of Li &Fung’s cooperation to develop the knowledge and skills of students of BGMEA University of Fashion and Technology (BUFT).Faruque Hassan said Bangladesh is increasingly focusing on moving up the value chain by diversifying products and upgrading technologies.

Source: The Unb

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Cambodia's textile body GMAC is now officially renamed TAFTAC

Cambodia’s industry trade body Garment Manufacturers Association in Cambodia (GMAC) will now be known as the Textile, Apparel, Footwear, and Travel Goods Association in Cambodia (TAFTAC) after it was officially renamed in a recently held ceremony attended by Cambodia’s army commander Lieutenant General Hun Manet. Kong Sang will remain the president of TAFTAC. “Garment exports surged from $3 billion in 2008 to $6 billion in 2014 and, with the inclusion of other textile-related items subsequently put under the association’s purview, ballooned to $11 billion in 2021,” Sang was quoted as saying by Cambodian media reports at the event. Sang reiterated that textiles, apparel, footwear, bags, and travel goods have come under GMAC’s scope of representation since 2015. “That year, a campaign was launched to encourage footwear factories to join the association, under the guidance of the ministry of commerce. The number of factories among the association’s ranks has increased from 400 in 2012 to the current 690, which directly employ more than 800,000 people with a total annual salary of $2 billion,” he added. The export of travel goods, bags, and other items under Chapter 42 of the harmonised tariff schedule jumped by 1,524.71 per cent from $97.340 million in 2015 to $1.581 billion in 2021, according to the General Department of Customs and Excise.

Source: Fibre2Fashion

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Bangladesh earned $10.28 bn in FY23 Jul-Sep quarter from RMG exports

Bangladesh’s export earnings from readymade garments (RMG) were worth $10.28 billion in the July-September quarter of fiscal 2022-23 (FY23), out of which woven garments contributed $4.62 billion and knitwear $5.65 billion. The total export figure was 8.14 per cent lower than that of the previous quarter but 13.41 per cent higher than in the same quarter last year. The total RMG export earnings in the quarter were 2.52 per cent higher than the quarterly target of $10.02 billion, according to the Bangladesh Bank. The United States, Germany, the United Kingdom, Spain, France, the Netherlands, Italy, Canada, and Belgium were the top destinations for RMG exports during the quarter. From these nine countries, Bangladesh earned $7.422 billion, accounting for 72.25 per cent of total RMG exports. The net export of RMG, determined by subtracting RMG raw material import value from RMG export value, was worth $5.29 billion in the quarter, or 51.49 per cent of gross RMG exports. The figure was 12.49 per cent lower than that of the preceding quarter, but 9.31 per cent higher than the same period of the previous fiscal. In FY22, the RMG sector contributed 9.25 per cent to the country’s gross domestic product (GDP). Bangladesh's overall RMG export earnings in that fiscal stood at $42.613 billion—35.47 per cent higher than that of the previous fiscal. After experiencing a higher growth in the previous quarter, export earnings from knitwear squeezed in the July-September quarter of FY23 to $5.65 billion, which was 7.30 per cent lower than the previous quarter but 9.40 per cent higher than the same period of the previous fiscal. Furthermore, knitwear exports were 3.06 per cent more than the target for that quarter. The first quarter of FY23 showed a declining trend of export earnings from woven garments, which stood at $4.62 billion—9.14 per cent down from the previous quarter but 18.73 per cent higher than that of the same quarter of the previous fiscal. Moreover, exports of woven garments were 1.88 per cent higher than the quarterly export target, the Bangladesh Bank said. The import value of raw materials (raw cotton, synthetic/viscose fibre, synthetic/mixed yarn, cotton yarn and textile fabrics and accessories for garments) was $4.98 billion in the July-September quarter of FY23, accounting for 48.51 per cent of total RMG export earnings.

Source: Fibre2Fashion

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Disney-themed children's clothing recalled over risk of lead poisoning

More than 80,000 pieces of children's clothing, featuring Disney and Star Wars characters, are being recalled over a risk of lead poisoning. Bentex, which makes the kids clothes, issued the recall after the Consumer Product Safety Commission found the lead content in the textile ink used to create the characters exceeded federal standards. Lead is toxic if ingested by young children and can lead to health issues including damage to the brain and nervous system, as well as developmental and learning problems. The Consumer Product Safety Commission says there have been no reports of any injury. The clothing recall includes nine Bentex children's clothing sets, with Minnie Mouse, Winnie the Pooh, Disney Descendants and baby Yoda, sold at TJMAXX, DD's/Ross, Burlington, Army & Airforce Exchange Service, as well as online at Amazon between November of 2021 and August of 2022. The nine items include the Minnie Mouse jersey leggings set, the Minnie Mouse bike shorts set, the Winnie the Pooh girls shorts set, the Disney Descendants girls shorts set, the baby Yoda boys shorts set, the Mickey Mouse 3-pack shorts set, the Mickey Mouse 3-pack pants set, the Winnie the Pooh and Tigger children's shorts set and the Minnie Mouse children's leggings set. All of the item and batch numbers, which can be found on the clothing label inside the neck or side of the garment, are listed on the Consumer Product Safety Commission's. Parents are being instructed not to allow their children to wear any of the recalled garments.

Source; The Upi

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Pakistan: Govt mulls duty on man-made fabric

Despite a gap of over three-fourths between the demand and supply of man-made fabric, the government is considering imposing a 5% regulatory duty on the import of filament yarn, apparently to give protection to the local manufacturers. Pakistan Yarn Merchants Association (PYMA), a body largely representing the importers, has appealed to Prime Minister Shehbaz Sharif to intervene and stop the increase in tax burden. The association has written to the premier that the imposition of 5% regulatory duty on the import of yarn, which is a raw material for the textile sector, on the pretext of discouraging imports will increase the cost of production. A summary may soon be tabled in the Economic Coordination Committee (ECC) of the cabinet for seeking its approval for the regulatory duty. Cotton has been replaced with yarn across the world and most of Pakistan’s textile industry depends on the imported yarn. About 500,000 power looms and knitting machines use yarn as a raw material for the manufacturing of textile products. Commercial importers also import yarn for consumption by such manufacturers. The association claims that the demand for yarn for local consumption stands at approximately 450,000 tons per annum, of which 350,000 tons are imported, which shows a gap of 78%. Yarn demand cannot be fulfilled in any way through local supplies, which raises questions over the motive behind imposing the regulatory duty to discourage imports. The association also points out that the local yarn manufacturers are still using outdated machines, which are not energy efficient. Such energy losses are built into yarn prices. Currently, there is a gap of at least 8.5% in the duty structure on the import of raw material of yarn and the import of yarn and any increase in the duty will give undue advantage to the local manufacturers. Despite the huge gap in supplies, the yarn manufacturers could not tap the market due to the low quality of their product and high cost of production. Efforts should be made to increase the efficient production capacity instead of imposing the regulatory duty. Textile products produced from the imported yarn are mostly used by the ordinary people due to their affordability. The duty imposition will directly impact the inflation reading and will further worsen the situation. On the other hand, the yarn manufacturers will also increase prices in line with the landed cost of imported yarn which will, in turn, raise the cost of finished textile products. The impact on inflation will be twofold. Moreover, the export of textile will be no more competitive due to the high cost, resulting in possible closure of small and medium enterprises (SMEs). The association has appealed to the PM that in light of the facts and in order to save hundreds of thousands of power looms from closure, the existing duty structure may at least be left unchanged if the duty gap is not reduced. It has also demanded that no regulatory duty should be imposed on the import of yarn to provide undue protection to the local textile industry that is not able to meet the entire consumer demand.

Source: The Tribune

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