DGTR India recommends levying ADD on VSF imports from Indonesia again
Textile sector contributes 7% to GDP, employs 45 Mn people: MoS Textiles
India to host special round for Pillars II-IV of IPEF: Piyush Goyal
India, Bangladesh agree to start talks for a trade deal at an early date
Five key trends that will affect India’s economy in 2023
Sixth round of India-UK FTA ends with detailed draft treaty talks
‘Got Rs 7 lakh crore investment proposals’
Fast fashion: if you pay so little for a dress, it’s because someone else is paying for it
North India's cotton yarn prices steady; market cautious of COVID wave
India gets BBB- rating; real GDP to grow at 7% in FY23: Fitch Ratings
PM Modi to take call on extending PMGKAY beyond Dec: MoS Shobha Karandlaje
INTERNATIONAL
Sri Lanka's garment export up 15.2% in Jan-Oct 2022, 12.9% down in Oct
US biggest market for Turkiye's home textile exports
EU energy price cap ‘still too high’, says Euratex
EU countries prepare for textile recycling big bang
ACIMIT introduces Digital Ready certification
Advancing life cycle sustainability of textiles through technological innovations
Germany's exports to third countries drop by 0.5% MoM in Nov 2022
FSM's clean energy projects get a boost as ADB approves $5 mn grant
B'Desh minister wants capacity of land ports on Indian border raised
Maritime transport's energy use to set back GHG cutting goals: UNCTAD
Headwinds strengthening for Vietnam in Q4 2022: Top ADB official
World Bank approves $274 million loan for Cambodia's economic recovery
NATIONAL
India’s Directorate General of Trade Remedies (DGTR) has recommended the levy of anti-dumping duty (ADD) on viscose staple fibre (VSF) imported from Indonesia. Industry has opposed the recommendation and appealed to the government to not accept the findings. However, trade data shows imports of VSF have risen sharply after the removal of ADD in July 2021. The DGTR has recommended levying $0.512 per kg as anti-dumping duty in a notification dated December 19. In August 2021, ADD on imports of VSF was withdrawn on the recommendation of DGTR. Meanwhile, the Southern India Mills’ Association (SIMA) has urged the central government to reject the recommendation. Ravi Sam, chairman of SIMA termed the recommendation as unrealistic. He emphasised on the survival of MSME spinning mills, decentralised power loom and handloom sector, and the garment sector. Data shows that imports of VSF from Indonesia increased rapidly post expiry of duty in August 2021. VSF (HS code 550410) imports from Indonesia were at $4.150 million (2.146 million kg) in Q3 2021 when ADD was withdrawn. The imports jumped to $10.207 million (5.135 million kg) in Q4 2021. The inbound shipment peaked in Q3 2022 to reach $29.211 million (13.437 million kg). It was noted at $14.710 million (6.804 million kg) in Q2 2022 and $8.842 million (4.277 million kg) in Q1 2022, according to data obtained from Fibre2Fashion’s market insight tool TexPro. The imports reached $52.764 million (24.518 million kg) in January-September 2022, which was higher than the imports of last year when it was recorded at $33.349 million (18.382 million kg).
Source: Fibre2Fashion
The central government on Wednesday said that direct employment in India’s textiles sector is estimated at 45 million. In a written reply to a question in Lok Sabha, Union MoS for Textiles, Darshana Jardosh shared that, as per figures from National Accounts Statistics, the contribution of textile industry in GDP in terms of percentage share of industrial output was around 7% during the last three years. She highlighted the various schemes implemented by the government to increase employment, investment and expansion of textile industry including modernization of weaving and processing viz. To increase the share of Indian textile products globally, the Government has approved Production Linked Incentive (PLI) Scheme for Textiles and PradhanMantri Mega Integrated Textile Region and Apparel Parks (PM-MITRA) Scheme for setting up 7 Mega Textiles Parks over a period of 3 years, said the MoS. The PLI scheme for textiles will promote production of high value Man Made Fibre (MMF), Garments &Apparel and Technical Textiles in the country.
Source: knnindia
Indian minister Piyush Goyal has invited all partner countries for the next special negotiation round for Pillars II-IV of the Indo-Pacific Economic Framework for Prosperity (IPEF) to be hosted by India from February 8–11, 2023. The invitation was extended at the recent virtual Ministerial Meeting on Economic Benefits for the IPEF. US secretary of commerce Gina Raimondo, along with other IPEF partners, was also present at the meeting. Goyal, Union minister of commerce and industry, consumer affairs, food and public distribution, and textiles, noted a consensus among members on setting up an investment forum consisting of private and public sector stakeholders to encourage investment in the clean energy sector during the recent round in Brisbane, Australia, according to a press release by the Indian ministry of commerce and industry. The minister expressed his belief that the IPEF will promote inclusive development through enhancement of trade and investment in the region. He also shared his views on some of the common tangible benefits like capacity building; technical assistance, including sharing of expertise and best practices; investments, innovative projects, and others expected out of the initiative. Goyal also shared in detail about some of India’s expectations under the IPEF. He stated that India can contribute towards supply chain resilience and clean technologies including on innovative projects which can be promoted beyond the IPEF in other developing countries. He further talked about the non-paper submitted by India on some of the ideas like mobilisation of financial resources for climate action at reasonable costs, added the release. Further, the Union minister expressed his full support for the negotiations schedule agreed upon at the Brisbane meeting held recently. Secretary Raimondo welcomed India’s offer to host the special negotiation round for Pillars II-IV of the IPEF and assured that the US IPEF team would work closely with India in this regard.
Source: Fibre2Fashion
Union Commerce Minister Piyush Goyal and his Bangladesh counterpart Tipu Munshi met in New Delhi on Thursday and agreed to start talks for a trade deal at an early date. “Piyush Goyal, Union Minister of Commerce and Industry, Consumer Affairs, Food, and Public Distribution and Textiles, Government of India, and Tipu Munshi, Commerce Minister, Government of Bangladesh met in New Delhi today,” the Ministry of Commerce and Industry said in a statement. “Both sides agreed to starting the CEPA discussions at an early date,” the release added. The last meeting between the Commerce Ministers of the two countries was held in Dhaka in September 2018. The commerce ministry said both sides held comprehensive discussions to further strengthen bilateral economic relations. “A Joint feasibility study on a Comprehensive Economic Partnership Agreement (CEPA) has been carried out after the two countries agreed for exploring a bilateral FTA. The study confirmed the CEPA would provide a sound basis for substantial enhancement of trade and commercial partnership between the two countries,” the commerce ministry said. Further, both sides agreed that CEPA will create new jobs, raise living standards, and provide wider social and economic opportunities in India and Bangladesh. In addition, the partnership would establish reliable and sustainable Regional Value Chains (RVCs). The ministers discussed various issues of mutual interest including removal of non-tariff barriers and port restrictions, re-opening of border haats, harmonization and mutual recognition of Standards and procedures on both sides, settlement of trade in Indian rupees, strengthening connectivity and trade infrastructure, among others, to realise the full potential of India-Bangladesh economic ties. Both sides agreed to work together in order to resolve the issues raised during the course of the meeting and ensure that the outcomes expected in the Joint Statement by the two leaders, PM Narendra Modi and PM Sheikh Hasina, in September 2022 are achieved in letter and spirit at the earliest. (ANI)
Source: The print
After two tumultuous years, finally we will be ending 2022 with some optimism. The pandemic is behind us and while the Ukraine-Russia war lingers, its reverberations have subsided as the world learns to survive with it. The Indian economy is projected to record relatively healthy gross domestic product (GDP) growth of 6.9% in 2022-23 and inflation has started moderating. Corporate balance sheets are in good shape, with deleveraging over the last few years and banking sector non-performing assets having fallen. However, all is still not okay. Our problem of twin deficits has raised its ugly head again, with the current account deficit estimated at 3.6% of GDP and fiscal deficit budgeted at 6.4% of GDP in 2022-23. India is feeling the pinch of a global slowdown, with exports showing weakness. Hence, as we enter 2023, the big question is how India will weather the global slowdown. Here are five themes that are likely to have a significant bearing.
Source: livemint
The sixth round of negotiations between India and the UK to finalise a free trade agreement (FTA) concluded last week with detailed draft treaty discussions across 11 policy areas over 28 separate sessions, the British government said on Thursday. The UK's Department for International Trade (DIT) issued a joint outcome statement to confirm that the latest round, initiated by UK Trade Secretary Kemi Badenoch and Commerce Minister Piyush Goyal on December 12, concluded last Friday. The seventh round of talks, expected to be held in the UK, is due to take place in early 2023. "Technical discussions were held across 11 policy areas over 28 separate sessions. They included detailed draft treaty text discussions in these policy areas, the DIT statement reads. As with the previous five official-level rounds, the DIT said the latest round was conducted in a hybrid fashion during which a number of UK officials travelled to New Delhi for negotiations and others attended virtually. The joint outcome statement reads: "On 12-13 December, the Secretary of State for International Trade, Rt Hon Kemi Badenoch MP, visited India to initiate the sixth round of the UK-India free trade agreement (FTA) negotiations. She met with Piyush Goyal, Honourable Minister for Commerce and Industry, Government of India, where they welcomed the newest round of talks and discussed wider trade and investment opportunities for the UK and India. "On 16 December 2022, the United Kingdom and the Republic of India concluded the sixth round of talks for a UK-India FTA. According to official UK government data, India-UK bilateral trade currently stands at around GBP 29.6 billion a year. Both sides formally launched FTA negotiations at the start of this year with former prime minister Boris Johnson announcing a Diwali deadline for its conclusion. However, Prime Minister Rishi Sunak committed to working "at pace" towards an FTA that does not sacrifice quality for speed after that October deadline was missed amid political turmoil in the UK. The UK government has said its target for the FTA is to achieve a deal to cut tariffs and open opportunities for UK services such as financial and legal, making it easier for British businesses to sell to the India economy.
Source: business-standard
After visiting 16 countries, the eight delegations of 14 ministers and 35 officials on Thursday evening told Chief Minister Yogi Adityanath that they have returned with investment proposals of Rs 7.12 lakh crore and signed 149 MoUs. Following their presentations before the CM, the government said that Rs 4 lakh crore investment proposals have come from the US and the UK alone. The delegation of ministers and senior officials visited 16 countries in a bid to attract investment proposals ahead of the Global Investors Summit scheduled to be held in Lucknow in February next year. The UP government has set a target to achieve Rs 10 lakh crore investment proposals in the Summit. Officials said that sectors like hospitality, food processing, drugs and pharma, medical devices, chemical, tourism, logistics-warehousing, green hydrogen, EV battery manufacturing, MSMEs, dairy, education, defence & aerospace, semiconductor, drone manufacturing, agriculture, textile, steel manufacturing are the ones in which investors have shown interest. After their presentations, the CM directed officials to create a dedicated team for each country for follow-up with the investors. He also asked the teams to maintain constant contact with companies, institutions, and industrial groups with whom MOUs have been signed along with follow-up visits to the countries, if required, after January 15. “A dedicated team should be formed by nominating a senior officer as the nodal officer for each country. This team will provide every resource according to the needs and expectations of the investors,” an official said, quoting the CM. Officials were also told to create a separate desk for each of the 16 countries for better coordination. For similar roadshows within the country, it was decided that a new team will be formed comprising Independent charge ministers and ministers of state. These domestic roadshows should be completed by January 15, the CM said.
Source:Indian express
In recent years, ‘fast fashion’—a term describing the production of a high volume of cheap, low-quality garments to constantly meet new trends—has satisfied the consumeristic appetite of western countries, at the expense of the environment and supply chain workers in the developing world. Greenwashing campaigns are commonly used to answer consumers’ growing demand for sustainable products, however, GlobalData’s consumer sentiment survey found that the ‘easy & affordable’ mega-trend has remained a key purchasing influence throughout the years. Despite this, we are progressively heading to a de-globalized textile industry, which will come at the expense of our planet and our health.
From the 1990s to 2022
Fast fashion is a recent phenomenon that started in the 1990s. In the context of post-cold war globalization, western companies carried out the massive outsourcing of labour and offshoring of garment factories into developing countries. This explains the rapid decrease in the number of workers employed in the US textile industry from 1990 to 2011 (The Atlantic, 2022). The US fast fashion industry is a case in point. A study from Duke University (2013) showed that the US imports the highest number of garments and apparel from developing countries where the monthly minimum wages paid to garment workers fall among the lowest in the world. The list includes but is not limited to Bangladesh, Vietnam, Indonesia, and Cambodia as the top producers of garments sold in the US. Only recently, consumers began to take an interest in this theme and many documentaries came out. The 2015 documentary ‘The True Cost’ by Andrew Morgan is the best known of these. It tells the story of the tragic events of April 24, 2013, in Bangladesh. The Rana Plaza, a garment factory that supplied many of the biggest global fashion brands, collapsed and killed more than a thousand people who were working there. ‘The True Cost’ highlights that the structure of fast fashion brands is unsustainable by definition: 52 collections a year, one per week instead of one per season, with clothes being designed to last a short time. Essentially, if you pay so little for a dress, it is because someone else is paying for it. In the wake of the Rana Plaza disaster, Carry Somers and Orsola de Castro founded the Fashion Revolution, the world’s largest fashion activism movement, to raise awareness about the human rights abuses and environmental degradation caused by the fashion industry. Every year, to coincide with the anniversary of the Rana Plaza disaster in Bangladesh, Fashion Revolution week is celebrated. During this week, we remember the lives lost and demand that no one should die for fashion.
Greenwashing and fast fashion trends
With claims of “better” this or “greener” that, companies sell fake commitments. Consumers around the world see campaigns advertising new fabrics made with recycled plastic, organic cotton, responsibly sourced wool, and so on and so forth. And brands that partake in this greenwashing gain popularity by making trendy styles at affordable prices. With the recent higher interest of consumers in sustainability, these green initiatives have given companies a competitive edge and a better consumer perception compared to other fast fashion players. The problem is that that specific collection may be sustainable in itself, but it represents only a minimal part of the whole business. Some very recent trends are contributing to keeping fast fashion popular. For example, live streaming is a growing shopping channel, as it allows for direct one-to-many interactions to help encourage sales. This concept is popular in China, where retailers live stream products with influencer hosts who help shoppers make purchasing decisions. An easy link to the website or checkout is provided onscreen so consumers can purchase items simultaneously, leading to impulsive shopping from the comfort of their homes. Along the same line, haul videos (influencers showing and describing products they have bought) are extremely popular as well.
The environmental and health backlash
The outcome of western fashion trends and the current organization of textile supply chains is tragic. To give some examples, the Atacama Desert in Chile is one of the biggest open landfills, while Ghana is suffering a huge environmental disaster for fast fashion leftovers. The Environmental Protection Agency (EPA) states that about 84% of all clothes in the USA end up in either a landfill or an incinerator each year. As well as environmental issues, there are also health issues. The National Center for Biotechnology Information published the article “Chemicals from textiles to skin: an in vitro permeation study of benzothiazole” entailing the potential health risks of chemicals in clothing. In addition, wastewaters when not correctly disposed of are toxic and contaminate the water table and soil and kill aquatic life. Furthermore, WaterWorld reports that more than 700,000 microscopic plastic fibres and harmful chemicals could be released into the water during each cycle of a washing machine.
The easy & affordable mega-trend and the resurgence in de-globalization
Sustainable clothes originate from a short supply chain, fair trade, and tailored production. Cooperation and transparency between all aspects of the value chain in the textile and garment industry are urgently needed. However, the ‘easy & affordable’ mega-trend has remained a key purchasing influence throughout the years, says GlobalData in its ‘Consumer Survey Insights: Mega-Trend Tracking—Understanding Shifts in TrendSights Influence’ survey. The survey found that environmental and ethical concerns have not increased and that rising inflation, supply chain disruption, and the Ukraine conflict are fueling de-globalization—what was global is increasingly becoming local. Companies throughout Asia are exploring opportunities in the United States, México, and Central America. Why? Safety, or more appropriately, supply chain resilience. This might have a positive impact on the fast fashion industry in terms of regulation and workers’ rights.
Source: Retail-insight-network
North India’s cotton yarn prices remained stable today amid limited buying. Recent reports of re-emergence of COVID dampened market sentiments, however, demand and prices were not impacted. Traders have adopted the wait and watch policy to assess its impact on the textile sector. Recycled yarn prices were steady in Panipat, even as shortage of raw materials persisted. No changes were witnessed in cotton yarn prices in Delhi. The demand was weak due to COVID scare. “Market is cautious while traders await more clarity on the issue. Hopefully, the fresh wave of COVID in China will pass without affecting the Indian population much,” a trader from Delhi market told Fibre2Fashion. In Delhi, 30 count combed yarn was traded at ₹285-290 per kg (GST extra), 40 count combed at ₹315-320 per kg, 30 count carded at ₹260-265 per kg and 40 count carded at ₹295-300 per kg, according to Fibre2Fashion’s market insight tool TexPro. Cotton yarn prices were steady in the Ludhiana market as well. The market saw limited trade as buyers were cautious about resurgence of COVID cases in India. Speaking to F2F, a trader from Ludhiana market said, “If India faces a fresh wave of COVID-19, the textile trade will be disrupted. But the probability of a new wave is not clear as of now. We must wait before assessing the actual risk.” In Ludhiana, 30 count cotton combed yarn was sold at ₹280-290 per kg (GST inclusive); 20 and 25 count combed yarn were traded at ₹270-280 per kg and ₹275-285 per kg respectively; and carded yarn of 30 count was steady at ₹255-265 per kg, as per TexPro. Like the rest of the markets in north India, Panipat’s recycled yarn market witnessed stability in prices too. Buying improved but buyers were cautious due to the reports of COVID infection in China. Traders felt that it is time to worry as COVID can pass international boundaries again. Spinning mills of recycled yarn were facing a shortage of raw materials. In Panipat, 10s recycled yarn (white) was traded at ₹90-95 per kg (GST extra); 10s recycled yarn (coloured - high quality) was traded at ₹105-110 per kg; 10s recycled yarn (coloured - low quality) at ₹80-85 per kg; and 20s recycled PC coloured (high quality) at ₹110-115 per kg. 30 recycled PC coloured (high quality) was at ₹150-155 per kg and 10s optical yarn was priced at ₹100-110 per kg in the market. Comber prices were noted at ₹150-155 per kg and recycled polyester fibre (PET bottle fibre) was at ₹75-77 per kg. Cotton arrival dropped to 18,000 bales of 170 kg each in north India. Earlier, cotton arrival was 21,000-22,000 bales on an average and it is not expected to improve, local traders said. Prices will depend on the demand. Cotton was steady at ₹6,350-6,450 per maund of 37.2 kg in Punjab, ₹6,350-6,450 per maund in Haryana and ₹6,600-6,650 per maund in upper Rajasthan and at ₹62,000-63,500 per candy of 356 kg in lower Rajasthan.
Source: Fibre2Fashion
Fitch Ratings has affirmed India’s long-term foreign-currency Issuer Default Rating (IDR) at ‘BBB-’ with a stable outlook. Sustained consumption and investment recoveries underpin the gross domestic product (GDP) growth forecast of 7.0 per cent in the fiscal ending March 2023 (FY23). Inflation has peaked and continues to ease, with headline inflation falling to 5.9 per cent in November 2022. The country’s rating reflects strengths from a robust growth outlook compared to peers and still-resilient external finances, which have supported India in navigating the large external shocks during the past year. These are offset by India’s weak public finances, illustrated by high deficits and debt relative to peers, as well as lagging structural indicators, including World Bank governance indicators and GDP per capita, according to a press release by Fitch. India is somewhat insulated from the gloomy global outlook in 2023, given its modest reliance on external demand. Nevertheless, declining exports and heightened uncertainty are expected with higher interest rates to slow growth to 6.2 per cent in FY24 (‘BBB’ median: 2.0 per cent). Consumption growth is also anticipated to moderate as pent-up demand fades.
Source: Fibre2Fashion
Prime Minister Narendra Modi will take a call on extending the PMGKAY scheme to provide free ration to the poor beyond December, Union Minister Shobha Karandlaje said on Thursday said stressing that the government has sufficient foodgrains stock. If Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) has to be extended, the decision will be taken by the Cabinet, headed by the prime minister. The Cabinet meeting is scheduled on Friday. In September, the government had extended PMGKAY for three months till December 31. "Covid-19 cases are coming. The scheme is till December. ...After that, the decision (on extending it) will be taken by the prime minister," Karandlaje, Minister of State for Agriculture, told reporters. In last 28 months, the government has spent Rs 1.80 lakh crore on distribution of free ration to the poor under PMGKAY, she said. The government has sufficient foodgrains stock to meet the requirement under the food security law and other welfare schemes, she added. The minister further said foodgrains procurement for Public Distribution System (PDS) and welfare schemes like PMGKAY is being done smoothly even as there were "misconception of production fall in rice and wheat" due to some impact of drought and climate change on crops in Uttar Pradesh, Bihar and West Bengal. Last week, the food ministry had said about 159 lakh tonne of wheat and 104 lakh tonne of rice will be available as on January 1, 2023, as against buffer norms requirement of 138 lakh tonne of wheat and 76 lakh tonne of rice as on January 1. As on December 15, around 180 lakh tonne of wheat and 111 lakh tonne of rice were available in the central pool, it had said. PMGKAY was started in April 2020 to help the poor whose livelihoods were shuttered by a nationwide lockdown aimed at containing the spread of the coronavirus. Under the scheme, 5 kg of wheat and rice is provided free of cost to 80 crore poor per month. Karandlaje also listed out steps taken to upgrade PDS with modern technology so as to check wastage and siphoning of PDS foodgrain besides making payment of support price for procured grains directly to farmers via DBT(Direct Benefit Transfer) mode. Renewed focus will now be on encouraging production and export of millets ahead of International Year of Millets to be celebrated in 2023, she added.
Source: business-standard
INTERNATIONAL
Sri Lanka’s garment exports stood at $4,622.7 million during January-October 2022 which grew by 15.2 per cent over the exports of $4,011.3 million in the same period of the previous year, as per statistics released by the Central Bank of Sri Lanka. Its garment exports dropped by 12.9 per cent in October 2022 due to the slowdown in the world economy. During the same period, textile exports from the island nation increased by 4.9 per cent year-on-year to $299.4 million. However, exports of other made-up textile articles stood at $98.5 million during January-October 2022, registering a negative growth of 7.9 per cent, according to the central bank’s report titled ‘External Sector Performance’. Textiles, garment, and other made-up textile articles’ exports together accounted for 56.91 per cent of all industrial exports from Sri Lanka during the period under review, the report showed. The exports of all textile products totalled at $5,020.7 million in January-October 2022 which was 14 per cent higher than the shipment during the same period last year. In October 2022, garment and textile exports from the South Asian nation declined by 13.1 per cent year-on-year to reach at $443.5 million. Category-wise, garment exports decreased by 12.9 per cent to $406.8 million, while textile exports fell 5.8 per cent to $28.9 million. The exports of other made-up textile articles were down by 39.1 per cent to $7.8 million. On the other hand, imports of textiles and textile articles rose by 6.7 per cent to $2,637.8 million, while clothing and accessories imports were up by 4.3 per cent to $184.2 million during January-October 2022.
Source: Fibre2Fashion
US was the largest market for home textile exports from Turkiye during the first nine months of 2022. The European nation exported over 22 per cent of its total home textiles to the US. As for the country’s apparel exports, the US was the fifth largest market during the same period with a less than 5 per cent share in Turkiye’s total apparel exports. Turkiye exported home textiles worth $869.947 million to the US, which was 22.28 per cent of its total exports of $3.904 billion during January to September 2022. European countries like Germany, France, Spain, Italy, UK, and Netherlands were the other prominent markets for Turkiye’s home textiles. Last year, the US accounted for 25.95 per cent of Turkiye’s total home textile exports of $6.129 billion, according to Fibre2Fashion’s market insight tool TexPro. On the other hand, Turkiye exported apparel worth $598.666 million to the US, making up just 4.58 per cent of its total exports of $13.081 billion during the first nine months of the current year. The US was the fifth largest market for Turkiye’s apparel after European countries like Germany, Spain, Netherlands, and France, which collectively accounted for over 45 per cent share in the country’s total apparel exports. Last year, the US’ share in Turkiye’s total apparel exports of $17.383 billion was just 3.86 per cent. It took the sixth position after Germany, Spain, Netherlands, UK, and France.
Source: Fibre2Fashion
The European Energy Ministry has finally set a 'market correction mechanism' and capped gas wholesale prices to support the economy and industry against wavering prices, however, Euratex says the textile industry needs more support against foreign markets. On Monday (19 December), the EU energy ministers reached a temporary consensus on setting the market correction mechanism to protect its citizens and the market from excessive gas prices after months of deliberation. This mechanism will be applicable from 15 February next year and activated automatically in case ‘market correction event’ occurs. The month-ahead price on the Title Transfer Facility (TTF) under this will be capped at EUR180 per megawatt-hour (MWh) if it exceeds three working days and is EUR35 higher than the reference price for LNG on global markets for the same three working days. Czech Minister of Industry and Trade, Jozef SÍkela, said: “We have succeeded in finding an important agreement that will shield citizens from skyrocketing energy prices. We will set a realistic and effective mechanism, which includes the necessary safeguards that will steer us clear from risks to security of supply and financial markets stability. Once again, we have proved that the EU is united and will not let anybody use energy as a weapon.” Based on the mechanism, while it is active, transactions ‘concerning the natural gas futures that are within the scope of the MCM above’ a so-called ‘dynamic bidding limit’ will not be allowed to take place. Although the European Textiles Association (Euratex) welcomed the adoption of the instrument and prospect to limit gas price speculations on the stock market, it said the cap at EUR180/MWh was still too high. “The complexity of the conditionalities triggering the cap may weaken its effectiveness and implementation: according to the legal proposal, the price level must be reached for three working days and European wholesale gas prices must remain, for the same length of time, at EUR35 above the global price of liquefied natural gas.” It is urging the Council of the EU again to improve this market correction mechanism. Adding further, Euratex insisted on the need to provide the industry with support measures to counteract competition from the US and other countries. Dirk Vantyghem, director general of Euratex, affirmed: “The Industry is at the heart of the European way of life and the fundament of our social market economy. The European textile industry is 99.8% composed of SMEs, which struggle with tight margins while being at the upstream part of the supply chain: the EU must do more to save its industrial structure, its competitiveness and its capacity to provide essential products to European citizens.” This comes after EURATEX called for a cap on Europe’s gas prices and the adoption of a “European vision” in response to the Energy Council’s proposal to address high energy prices earlier in October. Kadri Simson, Commissioner for Energy, while addressing the press at the Energy Council, said that the Commission proposed this measure on 22 November in a bid to “prevent episodes of excessive gas prices which do not reflect world market prices.” Simson remarked: “We have seen this happening for example in August this year, when gas prices spiked to more than 300 euros per megawatt hour. High and extremely volatile gas prices are damaging for our economy, for our households and our businesses. “With such a mechanism in place, Europe will be better prepared for the next winter season and for a new round of storage filling, which will be more challenging than it has been this year.”
Source: just-style
The environmental impact of the textile industry is significant. A 2021 report by the European Commission’s Joint Research Centre found that around 4-6% of the EU’s overall environmental footprint can be traced back to textiles. To address this, the Commission presented in March 2022 an EU strategy for sustainable textiles. Under the strategy, textiles placed on the European market would need to last longer, be easier to repair, and their lifetime would be extended by recycling the materials they contain into new high-quality products. Improving design at the manufacturing stage is also being considered to make recycling easier, with new standards expected to be adopted under the EU’s ecodesign regulation. The objective is that all textiles placed on the EU market are durable, repairable and recyclable, and made to “a great extent” from recycled fibres. The incorporation of minimum amounts of recycled fibres in new textile products is “really quite promising,” says Valérie Boiten, senior policy officer at the Ellen MacArthur Foundation, a charity which works to accelerate the transition to a circular economy. “There are different ISO standards out there, but for recyclability, not yet,” she told EURACTIV. “The challenge is that a product’s recyclability depends on several factors, including material choices, the way components are assembled, and the availability of infrastructure to collect, sort, and prepare the product for recycling,” she explained. Recycling rates for textiles are currently rather low, with 1.7 to 2.1 million tonnes of used textiles collected annually throughout the EU, according to the JRC study. The majority of the remaining 3.3 to 3.7 million tonnes are thought to be discarded in mixed household waste, the study found. However, the data must be taken with “a pinch of salt”, Boiten argued, explaining that there is no Europe-wide obligation to report on the amount of textile collected from consumers or companies. “There are obviously a lot of textiles that don’t get collected separately and that simply end up in people’s kitchen bins,” Boiten explained, adding: “We do not have a comprehensive overview of these flows.”
Policy big bang
Textile recycling will also be greatly encouraged by a policy big bang, with new EU-wide waste collection and recycling targets kicking in as of 2025. The revision of the EU’s Waste Framework Directive requires EU countries to establish systems for the separate collection of textile waste by 1 January 2025. At the moment, there are no targets for collection, so there is no obligation for member states to report, with only 13 EU countries currently doing some reporting, the JRC report says. Of these, only Austria, France, the Belgian region of Flanders and Italy report annually on post-consumer textile collection, while other countries have mapped them once or twice over the course of the past decade, often with the assistance of non-governmental bodies. Additionally, there is no clear definition for textiles or of what should be included in the reporting, which means figures are not comparable across EU countries. The recent EU Strategy for Sustainable and Circular Textiles has not offered a definition or a description of the products that would be covered from a regulatory perspective. The EU Textile Regulation applies to “all products containing at least 80% by weight of textile fibres”. But this definition would exclude the majority of footwear as well as accessories. “Some might look at garments, some might look at garments and shoes, some might look at all possible textiles without really defining what a textile is. And I think that that’s already an issue where there is no EU-wide definition of textiles and what products fall under textile,” Boiten said. The upcoming revision of the EU Waste Framework Directive will also include a proposal to harmonise so-called extended producer responsibility (EPR) schemes for textiles – which place an obligation on manufacturers to finance waste collection systems at local level. Mandatory EPR schemes can provide the funding needed to collect discarded textiles separately, and divert them from mixed municipal waste. They can also help finance the infrastructure needed for sorting and preparing textiles for reuse or recycling. This is what is argued in a recent white paper by the Ellen Macarthur Foundation, which highlights the need for harmonised EPR regulations across all EU member states. These would achieve “significant economic and environmental benefits” by improving the economics for waste from textile products, which currently ends up in landfills or incinerated, the paper argues. France was a pioneer in this respect. In 2007, it became the first EU country to introduce an EPR scheme holding producers of textiles, household linen and footwear responsible for the collection and recycling of their products. “The French EPR scheme was put in place to help the country towards reaching its collection and recycling targets,” said Jennifer Cuenca of Refashion/Eco TLC, an eco-organisation of the French textile, household linen and footwear industry. The scheme promotes the ecodesign of products and supports repair and reuse. “It also supports efforts towards more transparency in the sector, improving consumer awareness, technological innovation, and overall better sharing between all stakeholders,” Cuenca told EURACTIV. As a result, the amount of textiles sorted in France has more than doubled in 10 years, rising from 96,000 to 196,000 tonnes, according to a 2019 report by Refashion.
Dutch to follow French lead
For eco-textile advocates, similar schemes should be implemented EU-wide and harmonised as much as possible in order to generate economies of scale. This is what the Netherlands have started doing. Next year, the country’s EPR scheme for textiles will come into force, obliging manufacturers of clothing, corporate wear and household textiles to contribute to the country’s waste collection scheme. “Not included are for example shoes, bags, belts, returned products, blankets, curtains and carpets,” explained a spokesperson for the Dutch Ministry of Infrastructure and Water Management. The Dutch scheme will be implemented in three stages: from 2024 onwards, producers will need to report annually on their put on market for the year before. From 2025, new targets will start applying – 50% of textiles must be recycled and 25% must be reused. And from 2026, producers must report about their progress towards these objectives. “At the moment we have a lot of EPR systems being developed in several EU Member States and they don’t all look very similar,” said Mariska Boer, corporate communications executive at Boer Group, a textile recycling company based in the Netherlands. “We envision a framework for an EPR system on the EU level, with enough room left for the member states to fill in the details themselves. But there needs to be a common framework,” she argued. Under current EU rules, textiles will need to be collected separately from 2025 onwards, and every member state will need a system to facilitate that, Boer said. “We are looking at a potential increase from 2.7 million tonnes of textiles being collected within the EU now, to 5.5 million tonnes of textiles in 2030. We do not yet have adequate infrastructure for collecting and capacity of sorting and recycling to handle this increased volume and rapidly need to expand,” she added. Currently, there are significant differences among EU member states when it comes to infrastructure for collecting and sorting textile waste. Some countries have “hardly any infrastructure”, while others have well-developed systems already in place – such as the Netherlands and Germany, Boer told EURACTIV. According to her, an EPR system could also facilitate in partially financing the expansion of capacity. In The Hague, officials are keen to see EU rules implemented to harmonise the collection and recycling of textile waste. “The Netherlands specifically attaches importance to mandatory targets for recycled content,” said a spokesperson for the Ministry of Infrastructure and Water Management. Other priorities for The Hague include EU requirements to improve the durability and quality of textiles as well as product requirements to minimise the presence of harmful chemicals and microplastics, the spokesperson said.
Source: euractiv
On the road to digital transformation, ACIMIT, the Association of Italian Textile Machinery Manufacturers, is introducing Digital Ready certification specifically for its textile machinery manufacturers. The certification is designed to simplify the production process, making use of a standard language and unique data reading system that allows different types of machinery to dialogue with production systems. The certification aims to build customer loyalty while establishing a virtuous link between textile machinery manufacturers and their customers. It has been developed in partnership with the Manufacturing Group at Politecnico of Milano to provide standardisation of the machine’s management and production data and simplify use. The international certification body RINA, a long-standing ACIMIT partner, is authorised to issue the certification to associated member companies. A company intending to obtain Digital Ready certification for its machinery is required to abide by a framework that includes identification of the machine and collection of data, an analysis of all documents and on-the-spot audits and verifications by RINA. The Digital Ready itinerary implemented for a manufacturer’s specific machine will lead to the obtainment of certification valid for all machinery of the same production type, for which there will be no need to replicate the procedure. The certification has a duration of five years. “For the textile sector, digital transformation involves achieving a complex balance between modernisation and technological advancement while maintaining a focus on the creativity and craftsmanship that remains crucial to securing success in the international arena,” says ACIMIT president Alessandro Zucchi. “Much progress has been made by Italian textile machinery manufacturers since the last ITMA in 2019 in enabling digital transformation in the three critical stages of design and planning, production and machine and parts maintenance. According to preliminary ACIMIT data, the value of Italian textile machinery sales in 2022 will exceed €2.6 billion – up about 10% from 2021. Exports account for more than 85% of this value.
Source: innovationintextiles
Throughout their life cycle, textiles produce 5–10% of global greenhouse gas emissions and consume the second-largest amount of the world’s water with polluting microplastics and chemical agents released to waterways. Here we examine the state-of-the-art technology developments meant to solve these problems in a cradle-to-grave fashion. We analyse their impacts with respect to the Sustainable Development Goals in the United Nations Agenda 2030, particularly those concerning the deployment of natural resources, energy and environmental impacts. We follow a systematic analytical framework that identifies and elucidates impactful technologies. We further discuss future directions along which the green transformation of textiles could be accelerated.
Source: nature
Germany’s exports to countries outside the European Union (third countries) in November 2022, were down a calendar and seasonally adjusted 0.5 per cent month-on-month (MoM), while they rose by 13.6 per cent year-on-year (YoY), as per the provisional data of the Federal Statistical Office (Destatis). Germany exported goods to the value of €61.8 billion in November 2022, on a seasonally and calendar-adjusted basis, according to Destatis. Germany’s goods exports to third countries (original values) increased by 13.8 per cent YoY in November 2022, and were valued at €65.7 billion.
Source: Fibre2Fashion
The Asian Development Bank (ADB) has approved a $5 million grant to finance the preparation of ADB-supported clean energy projects in the Federated States of Micronesia (FSM). This move by ADB will fund assessments, planning, and capacity building to implement clean energy projects, including solar and hydro, and promote energy efficiency. ADB is providing $5 million from its Asian Development Fund (ADF) for the grant, while the government of the FSM is contributing $500,000 in-kind support. ADF provides grants to ADB’s poorest and most vulnerable developing member countries. “The project readiness financing (PRF) will create an enabling environment for the introduction of innovative technology solutions and business models for clean energy projects. This will help resolve medium-term challenges, including reliable access to affordable electricity while accelerating the FSM’s clean energy transition,” said Len George, ADB principal energy specialist for the Pacific. Each state in the FSM is served by a state-owned utility that generates, distributes, and supplies electricity. Some utilities also offer services including water, sewerage, and telecommunications. The decentralised structure imposes constraints on standardised design, procurement, and staff training that impact cost and service delivery. The PRF will expedite the preparation of clean energy projects with cross-sectoral benefits, including access to drinking water through support for feasibility studies, engineering designs, and advance procurement; small-scale pilot-testing of relevant commercially deployable clean energy technologies; assistance with coordination for national clean energy investments and strengthening the capacity of utilities and key agencies in the energy sector. The projects advanced under ADB’s PRF will contribute to the FSM’s Strategic Development Plan, 2004–2023 and will align with the FSM’s priorities of 100% electricity access and a shift toward clean energy sources.
Source: Fibre2Fashion
Bangladesh commerce minister Tipu Munshi recently called for increasing the capacities of land ports on the border with India as the latter is a major trading partner of the former and there is a huge demand for Bangladesh products in the Indian market. He said this while meeting the new Indian high commissioner in Dhaka Pranay K Verma at his ministry. "Bangladesh is a good friend of India. The Indian government has always given importance to Bangladesh. India's business, trade and cooperation with Bangladesh have increased a lot. The communication system has improved. Bangladesh's communication with India's bordering states has become easier. As a result, trade between the two countries has increased," he was quoted as saying by a news agency.
Source: Fibre2Fashion
As maritime transport’s importance will grow in the coming years leading to a rise in its energy consumption, under the current energy paradigm based on fossil fuels, it would set back the greenhouse gas (GHG) reduction goals established by the International Maritime Organisation (IMO), the European Union (EU) and others, according to the United Nations Conference on Trade and Development (UNCTAD). International and European institutions must act collaboratively to ensure that efforts are made towards the reduction in GHG emissions, and to grant access to renewable energies for all parties concerned, Estela Morante wrote in an article in the UNCTAD Transport and Trade Facilitation Newsletter for the fourth quarter this year. The maritime sector presently accounts for about 2.8 per cent of all global GHG emissions, mainly due to its rapid growth, its dependence on carbon-intensive bunkers, and the sheer size of its business. More than 80 per cent of the world merchandise trade by volume is transported by sea. Setting up a roadmap to the decarbonisation of the maritime sector will require a consideration of three different fundamental aspects: technology, policy and investment in research, development and innovation, the article said. First of all, efforts must be made towards replacing the use of fossil fuels with others of renewable origin, and development of these new fuels must be carefully guided by criteria of sustainability, it said. Secondly, as a consequence of the development of new fuels, changes will be needed in the propulsion systems of ships to enable them to run on said fuels; and great economic and technological efforts will have to be made to secure adequate access to their supply at a global scale by building new infrastructure or adapting existing ones, it noted. And finally, the maritime industry is working on the conceptual development and construction of ecological, zero-emission ships; and important technological efforts are also being made towards increasing the efficiency of ship engines and propellers, or the implementation of on-board energy sources, which can have a significant impact in reducing GHG emissions. Other methods of operational efficiency such as speed reduction, proper maintenance of the ship's hull and better planning of voyages are also key to reducing energy consumption, the article noted. In order to achieve the ‘4th industry revolution’ in shipping and a better coupling of the maritime transport and energy sectors, investment in research, development and innovation must be scaled up significantly, the article added.
Source: Fibre2Fashion
Headwinds are strengthening for Vietnam in the last quarter this year, and key economic indicators have shown weakening global demand for the country’s exports, according to Asian Development Bank (ADB) country director in Vietnam Andrew Jeffries, who recently said manufacturing purchasing managers index (PMI) in the country dipped to 47.4 in November from 50.6 in October. He, however, attributed Vietnam’s economic growth in 2022 to a strong performance across sectors. Policy responses for the country need to strike a dedicated balance among curbing inflation and maintaining economic growth, and also ensuring the stability of the financial sector, he advised. For monetary policy, he suggested that maintaining price stability should be the primary focus, and Vietnam’s monetary stance should continue to be vigilant of inflation in 2023. Further policy rate hikes may still be warranted in 2023 if inflation picks up, he said. There should be greater and more efficient coordination between the fiscal and monetary policies, he told the Vietnam Economic Forum in Hanoi. Vietnam’s economy expanded by 8.8 per cent in the first three quarters this year. Its exports grew by 13 per cent year on year (YoY) and imports expanded by 10 per cent YoY, resulting in a trade surplus of $10.6 billion in the first 11 months of 2022, he was quoted as saying by a news agency. Disbursements of foreign direct investment increased by 7.8 per cent YoY, estimated at $7.7 billion, the highest disbursement in five years. Domestic consumption in November was up by 2.6 per cent from the previous month and up by 17.5 per cent over the same period last year, the ADB official said. Employment was also down due to declined economic activities, he said, pointing out that recent monetary tightening, irregularities in the corporate bond market and slow disbursement of public investment tightened liquidity for economic recovery.
Source: Fibre2Fashion
International financial institution and loan provider World Bank has credited a $274 million loan to Cambodia for the country’s Growth and Resilience Development Policy Operation. This new financing, approved by the World Bank’s board of executive directors, will help bolster Cambodia’s economic recovery and strengthen long-term resilience. The operation supports reforms that will streamline the business registration processes, promote competition, and expand access to finance for small and medium enterprises. Other reforms will enhance fiscal resilience, including by improving the management of public private partnerships and facilitating the issuance of government debt in the domestic market, the World Bank said in a press release. The operation will also facilitate the timely provision of relief to a broader set of vulnerable households in the event of a natural disaster or economic shock. The operation is anchored in the government’s post-pandemic economic recovery plan, which has three broad objectives of recovery, reform, and resilience, and builds on the $200 million Cambodia Relief, Recovery, and Resilience Development Policy Financing operation approved in 2021. The financing provided by this operation will help to alleviate some of the fiscal pressures that the government is now facing, having run relatively large deficits in recent years. The $274 million credit is provided by the International Development Association (IDA), the World Bank’s fund for the poorest countries. Cambodia’s economy was badly affected by the COVID-19 pandemic, with GDP contracting by 3.1 per cent in 2020, the country’s first recession in 30 years. Simulations show that the poverty rate increased by 2.8 percentage points, pushing about 460,000 individuals into poverty. The government responded quickly and effectively to the pandemic, assisting business and vulnerable families, but the associated rise in spending has meant that fiscal consolidation will be required in the period ahead. While the economy has recovered in 2021 and 2022, the weakening external environment means that returning to the strong rates of growth seen prior to the pandemic will prove challenging. The ongoing war in Ukraine, economic slowdown in the United States—Cambodia’s largest export market—and slower growth in China will all affect Cambodia’s trade prospects. The country is also highly vulnerable to the impacts of climate change, with high exposure to floods and drought. “While Cambodia’s ‘Living with COVID-19’ strategy has helped rebuild the economy, the country remains vulnerable to downturns in external demand and disruptions in global supply chains,” said Maryam Salim, World Bank country manager for Cambodia. “This new operation will help Cambodia boost private sector competitiveness, strengthen its fiscal position, and provide assistance to its most vulnerable people.”
Source: Fibre2Fashion
Paramount Textile – a part of Paramount Group of companies in Bangladesh – was established in 2006. The company manufactures a diversified range of dyed yarns and dyed, finished, and printed woven fabrics. In 2021, the company exported more than USD 60 million worth of merchandise worldwide. Dr. Christian Schindler, Director General of ITMF stated that “ITMF is delighted to welcome Paramount Textile as a new Corporate Member. The decision to join the Federation is a clear indication that companies from the entire textile value chain see value in being part of a neutral international platform that provides relevant information as well as a unique international network. The ITMF Annual Conference 2022 in Davos, Switzerland highlighted the importance of discussing emerging trends with experts and colleagues face to face. Meeting old and new friends and colleagues in a relaxed atmosphere outside the regular business environment is helping people to better understand the ongoing dynamics in the global textile industry. Meeting persons from the entire textile value chain – from fiber producers to brands/retailers as well as affiliated industries like textile machinery producers, textile chemical producers, etc. provides a wider spectrum of perspectives.”
Source: textile world
