The government is likely to finalise the second edition of the production-linked incentive scheme (PLI) for garments, madeups and home textiles early next year, with a focus on promoting small and medium entities, officials said Wednesday. Discussions are ongoing for PLI 2.0 with investment thresholds between ₹15 crore and ₹45 crore, they said. These are lower than in previous round for technical textiles and manmade fibre, when minimum investment required was ₹100 crore and ₹300 crore. "We encouraged capital and machinery in the first edition of PLI but this time, we are looking at small and medium entities," said an official. Under the first scheme, 32 companies have begun investments of ₹1,500-1,700 crore, the officials said. "We encouraged capital and machinery in the first edition of PLI but this time, we are looking at small and medium entities," said an official. Under the first scheme, 32 companies have begun investments of ₹1,500-1,700 crore, the officials said. The textiles ministry had approved 64 applications under the ₹19,798 crore scheme. PLI 2.0 for the textile sector is being considered as the ministry has an unutilised budget of ₹ 4,000 crore. Bedspreads and textile accessories like lace, buttons and zippers could get covered under this.

Source: economic times

CAD likely to jump to a 37-quarter high of 4.4 pc of GDP in Q2

India's current account deficit (CAD) is expected to jump to a 37-quarter high of 4.4 per cent of GDP at USD 36 billion as against USD 9.7 billion or 1.3 per cent in the year-ago period, as per a report. This expectation of rise in CAD can be linked with falling exports and high crude prices. As a percentage of GDP, the previous high was in the first quarter of 2013-14 when CAD had scaled to 4.7 per cent, but in absolute terms the previous high was in the third quarter of 2012- 13 when it touched USD 31.8 billion. In the first quarter of this fiscal the deficit was USD 23.9 billion or 2.8 per cent, reported PTI citing an assessment by India Ratings. Global headwinds facing merchandise exports had the shipments contracting by close to 20 per cent in October 2022, first time since February 2021 and the agency expects merchandise exports to slip to an eight-quarter low of USD 88.2 billion in Q3FY23 which would be 17.4 per cent lower than Q3FY22. On the other side, falling commodity prices will help the country lower its import bill in the third quarter (Q3), even though crude prices were still 19.9 per cent in October-November. And the agency expects merchandise imports to decelerate to a three-quarter low of USD 171.9 billion in Q3, but will still be up 2.9 percent on-year. Overall, merchandise trade deficit will rise to a fresh high of USD 83.7 billion in Q3, which is 38.9 per cent higher than Q3FY22, according to its estimate. The agency expects the rupee to average 81.8 against the USD, up 9.1 per cent in Q3, further putting pressure on CAD. As against this merchandise exports stood at a three-quarter low of USD 112.5 billion in Q2FY23, up from USD 121.1 billion in Q1 due to the impact of global headwinds such as the Russia-Ukraine conflict, global growth slowdown and elevated inflation.

Source: economic times

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India's poly yarn prices steady; trade improves as brands buy actively

India’s polyester and polyester-cotton yarn prices remained steady today, even though trading activities improved as domestic brands were actively buying for the summer season. The recent fall in polyester prices encouraged buyers. Yarn prices may not improve due to higher production from spinning mills, but improved demand supported trading activities. Most varieties and counts of polyester and polyester-cotton yarn remained stable, according to trade sources. Surat also noted a steady trend amid better demand. 30 count PC combed yarn (48/52) was sold at ₹203-213 per kg (GST inclusive) in Ludhiana. 30 count PC carded yarn (65/35) was priced at ₹175-180 per kg. 30 count poly spun yarn was sold at ₹147-155 per kg. Recycled polyester fibre (PET bottle fibre) was at ₹75-77 per kg, according to Fibre2Fashion’s market insight tool TexPro. In the Surat market of Gujarat, trade improved as the domestic textile industry was actively buying. A trader from Surat market told Fibre2Fashion, “There was better buying not only in yarn but also in the entire value chain. Various brands are active for buying for the coming summer season which has led to better trade activities. However, yarn prices remained stable.” In this market, 30 count poly spun yarn was traded at ₹130-131 per kg (GST extra) and 40 count poly spun yarn was traded at ₹140-141 per kg. The prices came down to ₹2-4 per kg in the last few days after fibre prices declined. Reliance Industries Limited decreased the prices of purified terephthalic acid (PTA) and MELT for the current week and increased the prices of monoethylene glycol (MEG). On Friday, RIL fixed the prices as: PTA at ₹75.90 per kg (-1.10), MEG at ₹54.70 per kg (+2.00) and MELT at ₹83.87 (₹-0.27) per kg. Earlier, RIL had reduced the prices of PSF by ₹3 to ₹99 per kg for the current fortnight. North Indian cotton prices improved as the natural fibre was traded higher in futures. The prices increased by ₹50-100 per maund of 37.2 kg since last Monday. According to local traders, cotton arrival remained limited. The prices found support from strength shown in the future market. North India’s cotton arrival was estimated at 20,000 bales of 170 kg. The natural fibre was traded at ₹6,625-6,675 per maund in Punjab, ₹6,600-6,700 per maund in Haryana and ₹6,800-6,850 per maund in upper Rajasthan and ₹64,300-66,300 per candy of 356 kg in lower Rajasthan.

Source: Fibre2Fashion

India's WPI inflation falls further to 5.85% in November

India’s annual rate of inflation, based on monthly wholesale price index (WPI), declined further to 5.85 per cent (provisional) in November 2022, over November 2021, according to the ministry of commerce & industry. India’s WPI inflation had gone up to a record 15.88 per cent in May 2022, compared to single digit figure of 7.39 per cent in March 2021. The WPI inflation was 8.39 per cent in October 2022. “Decline in rate of inflation in November 2022 is primarily contributed by fall in prices of food articles, basic metals, textiles, chemicals & chemical products and paper & paper products as compared to the corresponding month of the previous year,” the Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT), under the ministry of commerce and industry, said. The official WPI for all commodities (Base: 2011-12 = 100) for the month of November 2022 was 152.1 compared to previous month’s 152.5. The index for manufactured products (weight 64.23 per cent) for November 2022 decreased to 141.5 from 141.9 for the month of October 2022. The index for ‘Manufacture of Textiles’ sub-group too decreased to 140.3 from previous month’s 143.4. However, the index for ‘Manufacture of Wearing Apparel’ increased slightly to 149.4 from previous month’s 149.3. The index for primary articles (weight 22.62 per cent) decreased to 177.7 in November from previous month’s 181.0, while the index for fuel and power (weight 13.15 per cent) increased to 159.6 from 155.2 in October 2022. Meanwhile, the all-India inflation rate for consumer price index (CPI) on base 2012=100 stood at 5.88 (provisional) in November 2022 compared to 6.77 (final) in October 2022 and 4.91 in November 2021, according to the National Statistics Office, under the ministry of statistics and programme implementation.

Source: Fibre2Fashion

Indian parliament approves bill to mandate renewable energy use

India’s Rajya Sabha has approved the Energy Conservation (Amendment) Bill that is aimed at encouraging use of green hydrogen and renewable energy. The act also gives the authority to Indian government to designate a carbon credit trading system. The bill has provisions to develop clauses to include industrial units for specific energy consumption standards. Designated consumers may be required to meet a proportion of their energy needs from non-fossil sources like green ammonia, biomass, and ethanol for energy and feedstock, according to Indian media reports. Carbon credit implies a tradeable permit to emit a specified amount of carbon dioxide or other greenhouse emissions. About 36 members of Rajya Sabha participated in the discussion on the Energy Conservation Bill. “The passage of Energy Conservation (Amendment) Bill, 2022, in Rajya Sabha today paves the way to enhanced use of renewable energy," tweeted power and renewable energy minister R K Singh. India had committed to achieving 40 per cent of its installed electricity capacity from non-fossil energy sources by 2030, and the country achieved this target in November 2021, nine years ahead of the set target, Singh informed the parliament in a session. India's target is to be a leading country in green hydrogen and achieve over 50 per cent of its power generation capacity from non-fossil fuels by 2030.

Source: Fibre2Fashion

INTERNATIONAL

EU's re-commerce market projected to grow to €120 bn by 2025

The European Union’s (EU) re-commerce market is expected to grow to €120 billion by 2025 (+60 per cent), as per a recent study. Over the next five years, the market share will grow from 10 per cent to 14 per cent. Re-commerce is the selling of previously owned items through online C2C marketplaces to buyers who reuse, refurbish, recycle, or resell them. In 2021, the EU re-commerce market was valued at €75 billion. Low price and sustainability appear to be two primary driving factors based on feedback from global companies in the flourishing re-commerce sector, according to a study carried out by Cross-Border Commerce (CBCommerce) with support from Checkout.com, FedEx Express, Lengow, nShift and Payoneer. Ninety-three per cent of consumers surveyed said that inflation impacts their decision to buy and sell pre-owned goods with an increasing emphasis on making and saving money, thus accelerating the growth of re-commerce. The relatively new term ‘re-commerce’ broke in the preserving retail business where unrecycled goods and landfilled waste wreak havoc on the environment. Taking the concept of the monetary value in pre-owned or second-hand goods, re-commerce marketplaces are sequestering unproductive business models and inventing the circular economy whereby unused or second-hand products are sold back, refurbished, or recycled Related ‘ecological re-commerce’ focuses on collecting used items for the sole purpose of repairing or recycling and reselling the reconditioned products.

Source: Fibre2Fashion

ADB estimates 4.2% economic growth in 2022 for developing Asia

The Asian Development Bank (ADB) has forecast 4.2 per cent economic growth in 2022 and 4.6 per cent next year for developing Asia and the Pacific regions. This forecast is lower than ADB’s previous estimates that were released in September, 4.3 per cent for 2022 and 4.9 per cent for 2023. ADB updated this data in December due to worsened global outlook. Monetary policy tightening by central banks globally and in the region, the protracted Russian invasion of Ukraine, and recurring lockdowns in the People’s Republic of China (PRC) are slowing down developing Asia’s recovery from the COVID-19 pandemic. Restrictions under the 'zero-COVID' approach, along with a struggling property market, have led to another downgrade of the PRC’s growth outlook, ADB said in a regular supplement to the Asian Development Outlook (ADO) 2022. ADB lowered its forecast for inflation in developing Asia and the Pacific this year to 4.4 per cent from 4.5 per cent. However, the bank raised its projection for next year to 4.2 per cent from 4 per cent, due to lingering inflationary pressures from energy. Gross domestic product growth projections for India were maintained at 7 per cent this fiscal and 7.2 per cent next fiscal. The PRC’s economy is forecast to expand by 3 per cent this year, compared with a previous projection of 3.3 per cent. The forecast for next year was cut to 4.3 per cent from 4.5 per cent, due to the global slowdown. Even with the downgraded forecasts, developing Asia will still do better than other regions globally, both in terms of growth and inflation. ADB’s growth forecast for Southeast Asia this year was raised to 5.5 per cent from 5.1 per cent, amid robust consumption and tourism recovery in Malaysia, the Philippines, Thailand, and Vietnam. Projections for next year, however, were lowered to 4.7 per cent from 5 per cent due to weakening global demand. The growth forecast for the Caucasus and Central Asia this year was upgraded to 4.8 per cent from 3.9 per cent, while the projection for the Pacific was raised to 5.3 per cent from 4.7 per cent, due to a strong tourism recovery in Fiji. “Asia and the Pacific will continue to recover, but worsening global conditions mean that the region’s momentum is losing some steam as we head into the new year,” said ADB chief economist Albert Park. “Governments will need to work together more closely to overcome the lingering challenges of COVID-19, combat the effects of high food and energy prices—especially on the poor and vulnerable—and ensure a sustainable, inclusive economic recovery.”

Source: Fibre2Fashion

China largest market for South Africa's fibre exports in Jan-Sept 2022

China was the largest market for South Africa’s fibre exports during January-September 2022 with a share of 36.32 per cent. It exported fibre worth $103.848 million out of its total shipment of $285.924 million in the period. Africa is developing its domestic textile industry, but China is a vast market to sell extra fibre, specifically cotton stocks. Despite being the largest market, African exports to China has witnessed high volatility. South Africa’s exports to China fell by 45.69 per cent year on year to $103.848 million in January-September 2022 from $191.218 million in the same period of last year, according to Fibre2Fashion’s market insight tool TexPro. The exports jumped by 36.27 per cent from the exports in January-September 2020. The exports had increased by 28.1 per cent to reach $212.977 million in January-September 2018 but decreased by 58.75 per cent to $87.846 million in January-September 2019. They spurted again by 59.21 per cent to reach $139.859 million in January-September 2020, as per TexPro. During January-September 2022, South Africa exported fibre worth $38.862 million (13.59 per cent) to Italy, $36.072 million (12.62 per cent) to Germany, $16.963 million (5.93 per cent) to Bulgaria and $11.498 million (4.02 per cent) to Mozambique.

Source: Fibre2Fashion

Austria's Lenzing gets triple A score for 2nd year in row by CDP

Austria-based Lenzing Group, a leading supplier of sustainably produced specialty fibres, has been recognised for leadership in corporate transparency and performance on climate change, forests, and water security by global environmental non-profit CDP, securing a place on its annual ‘A List’. Through significant demonstrable action on reducing climate impacts, water security risks, and deforestation, Lenzing is leading on corporate environmental ambition, action, and transparency worldwide, according to a press release. “We are very proud that we have now been awarded a triple A rating by CDP for the second time in a row. The rating shows that we are already on a very good path with our sustainability strategy and that the steps we are taking as the Lenzing Group to continuously improve and find solutions to the most pressing problems of our time are being seen and honoured,” said Stephan Sielaff, CEO of the Lenzing Group. “We are working hard to make our industries even more sustainable and to drive the transformation of the textile business model from linear to circular. Further efforts from the entire industry are needed for this transformation to take place.” “CDP saw environmental data this year, including 70 per cent of European companies by market value. COP27 showed the need for transformational change is more critical than ever if we are to limit warming to 1.5°C. I’m therefore delighted that European companies make up nearly half of all ‘A List’ companies around the world, including 15 with two A scores and eight with triple A scores for climate change, forests, and water security leadership. We must cut emissions by half and eliminate deforestation by 2030, alongside achieving water security on the same timescale—there is no route to 1.5°C without nature,” said Maxfield Weiss, executive director CDP Europe. “With the EU’s ground-breaking new reporting regulation, the CSRD, now agreed, CDP’s A List companies are showing they are ahead of the game—taking clear action to reduce emissions and to address environmental impacts throughout their value chains. This is the type of environmental transparency and action we need economy-wide to prevent ecological collapse.” Wood, the pulp derived from it and water are some of the most important raw materials for the sustainable production of cellulosic fibres from Lenzing and also part of the most important focus areas of the Lenzing Group’s sustainability strategy. Lenzing assumes responsibility by striving for sustainable procurement based on environmental certificates and responsible and efficient use of these valuable resources. Lenzing sources wood and dissolving pulp from sustainably managed forests and plantations and not from ancient, protected, or endangered forests. Lenzing’s biorefinery process ensures that 100 per cent of wood constituents are used: to produce dissolving wood pulp for fibre production, biorefinery products, and bioenergy. With its Refibra and Eco Cycle technologies, Lenzing offers solutions for transforming the textile and nonwovens industries towards a circular economy. In line with its vision for the circular economy, “We give waste a new life. Every day.” Lenzing is driving the industry toward a full circular economy by striving to give waste a new life in all aspects of its core business and developing circular solutions together with potential partners inside and outside the current value chain. Transparency forms the basis for credible sustainability performance and also creates trust among customers and consumers. That is why Lenzing is committed to promoting digital solutions throughout the supply chain and improving transparency and traceability in the textile and nonwovens industry. This is crucial as only an honest engagement with the industry can ensure traceability that verifies the origin of Lenzing fibres throughout the supply chain, all the way to the finished garment. Lenzing’s fibre identification system and e-branding service form the basis of the overall approach to transparency, while the TextileGenesis blockchain project leverages data to enable maximum traceability. This demonstrates Lenzing’s leadership in a very opaque industry and offers products with better sustainability credentials. A more comprehensive understanding of Lenzing’s suppliers as well as downstream customers is equally critical to minimising the Lenzing Group’s overall environmental impact, leading the company on the right path to achieve a low-emission and CO2 neutral footprint by 2050. Close digital connections throughout the network help to close loops in an efficient and holistic way and facilitate the transition from a linear to a circular supply chain, added the release. The world’s economy looks to CDP as the gold standard of environmental reporting with the richest and most comprehensive dataset on corporate and city action. In 2022, over 680 investors with over $130 trillion in assets and 280 major purchasers with $6.4 trillion in procurement spend requested companies to disclose data on environmental impacts, risks, and opportunities through CDP’s platform. A record-breaking 18,700 companies responded.

Source: Fibre2Fashion

World real GDP expands 5.7% in 2021, fastest growth since 1973: UNCTAD

After a sharp contraction of 3.4 per cent in 2020, the world’s real gross domestic product (GDP) expanded by 5.7 per cent in 2021, the fastest annual growth since 1973, according to the UN Conference on Trade and Development (UNCTAD). In 2022, GDP growth is nowcast to slow down to 3.3 per cent. Growth was unevenly distributed across regions in 2021. Large differences in GDP per capita persist throughout the world. In 2021, most developed economies produced an output per person greater than $30,000, with economies in Eastern and Northern Europe as the main exceptions. By contrast, almost half of the developing economies in Africa—all of them least developed countries (LDCs)–recorded a per capita output of less than $1,300. Most developing economies in the Americas, Asia and Oceania reached an output higher than $3,000 per person. Developed regions bounced back from the COVID-19 pandemic with a growth rate of 5 per cent. After a strong contraction of 2.7 per cent in 2020, developing Africa’s GDP expanded by 5 per cent in 2021. Developing Asia’s GDP growth rebounded from minus 0.4 per cent to 7 per cent in 2021. Developing America’s GDP increased by 6.2 per cent in 2021 following a 7.4 per cent drop in 2020. LDCs’ GDP grew by 2 per cent in 2021, remaining below the 7 per cent target set by the 2030 Agenda for Sustainable Development. At the same time, their GDP per capita declined by 0.4 per cent. Over the last 10 years, the global distribution of nominal GDP across economies has trended towards more equal. For example, in 2011, the poorest economies, accounting for 85 per cent of the world’s population, contributed 36 per cent to world GDP. By 2021, their share in GDP was 40 per cent. The last five years, however, did not show any clear reduction in inequality, UNCTAD noted. The highest GDP per capita, in nominal terms, was recorded for Luxembourg ($132,918), Bermuda ($126,972), Cayman Islands ($99,007), Ireland ($97,753) and Switzerland, Liechtenstein ($93,217).

Source: Fibre2Fashion