India’s merchandise trade crossed the $1-trillion mark in calendar year 2022 with the share of exports at $450 billion and imports at $723 billion. This comes amid growing uncertainty on the external front. Outbound shipments grew 13.7 per cent year-on-year (YoY) in 2022, while imports rose by 21 per cent, commerce and industry ministry’s data showed. Exports witnessed a robust double-digit growth in the range of 34-20 per cent during the first six months of the year. Thereafter, the growth started falling to single digits July onwards, closing the year at a 12 per cent contraction. This comes as recession fears in developed economies weighed on exports from India. The sustained growth in exports can be attributed to the pent-up demand factor due to the opening up of most developed economies in 2021, with the easing of Covid restrictions. Besides, India saw a significant jump in exports to developed markets such as the US, Singapore, Hong Kong and European nations such as the Netherlands, the UK, Belgium and Germany, among others. Before this, over the last decade, merchandise exports from India hovered around $260-330 billion, with the highest being $330 billion in fiscal year 2018-19. Around this time, a substantial amount of goods were being exported to neighbouring countries, predominantly the ASEAN nations. According to a report published by Global Trade Research Initiative (GTRI), the $1 trillion total merchandise trade has been achieved despite gloomy conditions worldwide. “This also prepares us for a tough year ahead as GDP (gross domestic product) growth in major economies slows down to less than 3 per cent in 2023,” said the report, authored by former Indian Trade Service officer Ajay Srivastava. Of the total merchandise imports of $723 billion in 2022, two-thirds comprised five items — crude oil ($270 billion), coal ($80 billion), gold and diamond ($80 billion), electronics ($72 billion) and machinery ($55 billion), the report said. On the other hand, exports have been dominated by engineering goods, gems and jewellery, drugs and pharmaceuticals as well as electronic goods. Mounting geopolitical turmoil due to the Russia-Ukraine conflict, high inflation and monetary policy tightening in developed economies have resulted in recessionary trends in the US and Europe. Last year, the World Trade Organization (WTO) projected 3 per cent growth in volume of global merchandise trade in 2022 compared to 9.8 per cent growth in 2021.

Source: Business-Standard

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Around 300 textile industry plants to comply with new EU legal norms

Some 300 textile industry and 3,000 chemical plants in the European Union (EU) will have to comply with new legal norms adopted under the EU Industrial Emissions Directive to reduce their environmental impact. The new legal norms estimate existing installations to take four years to adapt, while new facilities are required to comply immediately. The new European Commission Decisions refer to the management and treatment of waste gas in the chemical sector and a series of activities in the textile industry. They stem from a coordinated effort by stakeholders, including industry, to agree on Best Available Techniques (BATs). It is another step by the European Commission towards the Zero Pollution ambition to reduce air, water, and soil pollution to levels harmless to health and the environment, according to the European Commission. In the case of the textile sector, the environmental legislative changes concern in particular the wet processing of textiles, which include treatments such as bleaching, dyeing, or finishing treatment to give specific properties to the textile, like water repellence. The new norm is part of the EU strategy for sustainable and circular textiles which aims to create a greener, more competitive textiles sector, the European Commission said. The new norm for the textile sector has a particular emphasis on emissions to air and to water and targets over 20 air and water pollutants including formaldehyde, total volatile organic compounds (TVOC), dust, as well as ammonia for emissions to air, or metals for emissions to water. The new norm focuses also on environmental issues relevant to circular economy—including energy efficiency and resource efficiency (water consumption, chemicals consumption, waste generation). It also promotes more sustainable industrial production through the substitution of chemicals that are hazardous, harmful, or have a high environmental impact by introducing an approach underpinned by a chemical management system. The chemical activities covered under the Common Waste Gas Management and Treatment Systems in the Chemical Sector (WGC) BAT Conclusions mainly include the production of organic chemicals, polymers, and pharmaceuticals, which are large emitters of volatile organic compounds (VOCs) with about 40,000 tonnes emitted to air each year. The new norms for WGC target emission standards for 34 key air pollutants emitted from the chemical industry sector and include stricter binding levels for volatile organic compounds (VOCs). A particular attention is paid to carcinogenic or toxic substances. In addition, they introduce a new approach based on a management system for preventing, reducing, and quantifying diffuse emissions (those emissions that are not channelled or ducted, such as leaks from equipment).

Source: Fibre2Fashion

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FibreTrace's new digital solution to map global textile supply chain

FibreTrace, a global leader in traceability technologies, has today released FibreTrace Mapped, a free advanced digital traceability solution for the textile industry, which maps the global textile supply chain from fibre to retail. The platform provides transparency in one easy to use, globally accessible platform with no fees attached, eliminating the barrier to transparency for producers, manufacturers, brands, and retailers. While policymakers, consumers and investors continue to apply pressure for transparent supply chain mapping, 50 per cent of the world’s largest fashion brands continue to disclose little or no information about their supply chain and only 12 per cent of brands worldwide publish any insights into their raw material suppliers. The shift in consumer consumption behaviours and growing demands for greater ethical and environmental responsibility has been a key driver for change. About 60 per cent of fashion consumers want more transparency about the production journey of their clothes and more than 40 per cent of consumers surveyed in the US, more than 50 per cent in Europe, and almost 70 per cent in China say they want access to more information about how their clothes were made. Governments and governing bodies are listening, and transparency has become a priority on political agendas and legislative development from the US’ FABRIC Act to the UNECE’s The Sustainability Pledge, FibreTrace said in a media release. The world is demanding tighter regulation and FibreTrace Mapped enables the industry to create a future that champions sustainable and ethical creation and consumption. “The lack of accountability within the textile industry has left the door wide open for social and environmental neglect and misconduct. Brands have an obligation to look at their supply chain, identify issues, and address them. At FibreTrace we believe that transparency shouldn’t cost the earth, so we decided to launch FibreTrace Mapped free of charge in the hope that we can encourage the industry to claim accountability and responsibility for their supply chains and be the change for a better future,” said FibreTrace chief executive officer, Shannon Mercer. Powered by Blockchain technology, FibreTrace Mapped provides a digital centralised chain of custody for unlimited users. Accessible anywhere, anytime, on any device due to the cloud-based software solution, with the functionality to upload order and shipping documentation, and incorporate existing environmental and social compliance credentials. The platform is system agnostic and can integrate with various product and data management systems and tools and allows users to set up their company profile, add colleagues, register their own sites, and invite partners across the supply chain. FibreTrace Mapped works with any fibre, any material, any certification, any document, any data, and any integration, in one intuitive system where all information is protected, private and secure. Transparency needs to be the cornerstone of any serious environmental or social responsibility strategy. For enhanced traceability, FibreTrace Verified combines physical tracing technology with the digital platform to provide trust, verification, and authenticity of fibre. “Global fashion and interior businesses can take the first step towards a transparent and responsible future by signing up for a free Mapped account online at fibretrace.io today,” the release added.

Source: Fibre2Fashion

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RMG exports fail to touch pre-Covid level; slowdown concerns remain

When India’s ready-made garments (RMG) exports were expected to touch the pre-Covid level, the ongoing recession and war in the Westerns world have become a roadblock for the sector. RMG exports from India touched $11.841 billion during the first nine months of the financial year 2022-23, up 6.5 per cent from $11.123 billion in 2021-22, based on data shared by Tirupur Exporters Association (TEA). The current year’s numbers are 44 per cent higher compared to first nine months of 2020-21 ($8.199 billion), while it had already touched $12.386 billion during the April to December period of 2017-18. In November and December 2022-23, RMG exports saw a rise of 12 per cent and 1 per cent respectively, after showing a decline for four consecutive months from July to October. Out of the total knitwear exports from India, 63 per cent is going to the US (34 per cent) and Europe (29 per cent), followed by 9 per cent to the UK, based on government data available for the April to November period of 2022-23. “People in the destination countries are giving much importance to the purchase of food articles, gas, power and payment of EMI. There are also apprehensions that 2023 will also be an inflationary year. Recession is building up and hence they are very cautious of spending. Almost all the European countries and the US has cut down on imports,” said Sivaswamy Sakthivel, executive secretary, Tirupur Exporters Association (TEA). From April to December, out of $6 billion total imports that the country saw, around $3.303 billion was coming from Tirupur only. For the last five months, exports from Tirupur was down in dollar terms, posting a decline of 14.7 per cent in August, 30.7 per cent in September, 39.9 per cent in October, 6.9 per cent in November and 10.1 per cent in December. Exports from Tirupur had increased from Rs 26,000 crore in 2018-19 to Rs 33,525 crore in 2021-22. This has already crossed over Rs 26,000 crore in 2022-23 rupee terms. Owing to a decline in demand, buyers were also asking for a discount of around 15 per cent from exporters in Tirupur. “Since yarn prices are better placed with India getting the cheapest yarn at the moment, we are getting strong enquiries for the next three months. We expect this to turn into good orders in the coming months,” said K M Subramanian, president, Tirupur Exporters’ Association (TEA). In its budget expectations, TEA has reportedly urged the government to announce the increasing of Interest benefit under interest equalization scheme to 5 per cent across the board and help to protect knitwear industry and employees depending on that.

Source: Business-Standard

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GST department to close net on fraudsters in textile markets in Ahmedabad

After the home department's special investigation team (SIT), the city's principal textile traders association has decided to join hands with the state tax department to catch fraudsters. The Maskati Kapad Market Mahajan will provide GST numbers of fraudsters to the state GST department and after proper investigation, the department will take action against such cheats. Maskati Mahajan office-bearers recently met senior officers of the state tax department seeking to work with the department to eradicate the menace of cheating. Milind Torwane, chief commissioner of state tax, Gujarat, said, "This is the first time an association has come forward to work with the GST department to catch fraudsters. There are many complaints of cheating in the textile market and association will provide us GST numbers of traders who have cheated others. We will work according to GST rules, raise tax liabilities on such fraudsters and take action. We will keep a watch on transactions involving these GST numbers, including who initiated the transaction and who is the mediator We can link bills produced and input tax credit details. We will even cancel GST registration of fraudulent traders after investigation. If such traders are registered in other states, we will inform those tax authorities too." In October 2020, a SIT for the textile sector was formed and it has so far recovered Rs 23 crore through settlements in hundreds of fraud cases. Maskati Kapad Market Mahajan president Gaurang Bhagat said: "SIT has helped textiles traders in a big way. However, there are some fraudsters who are untraceable. There are some 1,256 cases with the SIT and 460 cases with the Mahajan arbitration committee, in which fraudsters are either not traceable or are not making payments." He added, "We have approached the state tax department and we will provide GST numbers of such persons and the authorities will watch transactions of these GST numbers. We will also provide details of blacklisted firms to the state tax department. Such fraudsters will not be able to generate new GST numbers based on their PAN and Aadhaar cards. We believe this will burnish the credentials of genuine traders and the government will also be alert to fraudsters and ensure that no tax evasion happens." There are complaints in the Mahajan for cheating worth more than Rs 140 crore.

Source: Times of India

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India – from tailor to retailer

India’s textile is central to our identity. The earliest surviving Indian cotton threads date to around 4,000 BC. Many Indian regions invented astonishing and unique materials, weaves and dyes. The depth and range is unmatched. Assam’s Muga, Benarasi silk, Kashmiri Pashmina, Bengal’s Muslins, Lucknowi Chikankari, Rajasthani Block Prints, Gujarati Patola: the list is inexhaustible and spectacular. Roman and British trading networks burgeoned arbitraging Indian textiles. Replete with riches and heritage, one would expect India to house leading global apparel and home textile brands. However, among the world’s largest apparel and home textile brands, a list that encompasses Uniqlo, Zara, H&M, Gap, Ikea and Williams Sonoma, not one is Indian. What explains this paradox? Government of India’s Production-linked Incentive Scheme is a landmark legislation to springboard manufacturing in key sectors and make it globally competitive. Textile is deservedly part of the PLI scheme. It may enable textiles woven and manufactured in India to be competitively sold to global brands. However, PLI alone will not facilitate Indian textiles to mutate from tailor to retailer. China, despite emerging as the pre-eminent manufacturing superpower of the twenty first century, foundered in creating a consequential ecosystem to enable businesses to understand and serve customers. Thus, companies like Apple, Target and Walmart, while valuing China as a key vendor, were able to resource their merchandise from alternative geographies. Geopolitical and Covid concerns have offered us a case study. India, along with other emerging markets, ought to be beneficiaries of the global retailers’ “China Plus One” sourcing strategy. Becoming a factory to the world is a laudable aspiration that PLI seeks to thrust India into, however in textiles we ought to set a higher bar. We should certainly make, but also design, market and consume. Textile – apparel and home textiles – can provide an unprecedented opportunity for Indian preeminence in fashion, manufacturing, branding and marketing, and be globally recognised as a major producing country in an important sector of the economy, akin to the Swiss in watches, the French in luxury goods or Germany in automobiles. Textile industry can employ our farmers to grow cotton, silk and wool, our weavers and factory workers to embroider, print and manufacture, our designers and marketing professionals to exploit their talents, and for our entrepreneurs to find online and offline retailers to serve global, including Indian, customers. What will it take to achieve this? Can we learn from home grown illustrations? An intriguing fact that deserves further research is that several incumbent apparel and home textiles brands started as exporters – FabIndia, Anokhi, Sarita Handa, Kashmir Loom, Shyam Ahuja and Obeetee – were founded by expats, or Indians who worked with international brands, who discerned the depth and breadth of India’s textile craft heritage. Understanding and serving the global market with world class products can be the first step of building Indian brands. Ensuring quality control, standardised production systems, on trend designs and cutting edge marketing are learnings that need to be employed in Indian textile industry. The forthcoming budget may consider a bold and comprehensive textile policy providing direction and resources to create a world class textile ecosystem in India. An opportunity that is millennia in the making should be grasped forthwith.

Source: Times of India

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“VIRAASAT’ - Celebrating Handloom Home Décor to begin from January 20, 2023

The Ministry of Textiles is going to organize “VIRAASAT’ - Celebrating Handloom Home Décor – Special Handloom Expo - at Handloom Haat, New Delhi from 20.01.2023 to 30.01.2023 to showcase the Home Décor products made by Handloom. Meanwhile, nearly month-long exclusive handloom sari exhibition “VIRAASAT”- Celebrating 75 handwoven Saris of India’, concluded on Tuesday. The Ministry of Textiles organized the exhibition in which 160 participants from different parts of the country exhibited famous Handcrafted varieties of Saris. The event celebrated both tradition as well as versatility of the Handloom Sector. The exhibition focused on the age-old tradition of Sari weaving by showcasing exclusive handloom weaves from different parts of the country in their full fervor. The exhibition was organized in two phases from 16th to 30th December and 3rd to 17th January 2023 at Handloom Haat, Janpath, New Delhi in which famous Handcrafted varieties of Saris like Tie and Dye, Chikan embroidered Saris, Hand Block Saris, Kalamkari printed Saris, Ajrakh, Kantha and Phulkari, Jamdani, Ikat, Pochampally, Banaras Brocade, Tussar Silk (Champa), Baluchari, Bhagalpuri Sik, Tangail, Chanderi, Lalitpuri, Patola, Paithani, Tanchoi, Jangla, Kota Doria, Cutwork, Maheshwari, Bhujodi, Santipuri, Bomkai and several other varieties like Garad Korial, Khandua and Arni Silk Saris etc were showcased. The Sari Festival was inaugurated by Hon’ble Finance Minister Smt. Nirmala Sitharaman on 16th December 2022, along with Hon’ble Minister of State Smt. Darshana Jardosh and other women parliamentarians. Coinciding with the 75 years of Independence, “Azadi ka Amrit Mahotsav” there was an exhibition-cum-sale of Handloom Saris by 75 handloom weavers. Also, a series of activities organized for the visiting public such as: Viraasat – Celebrating the heritage: Curated display of handloom saris, Viraasat-Ek Dharohar: Direct retail of saris by weavers, Viraasat Ke Dhage: Live loom demonstration, Viraasat–kal se kal tak : Workshops and talks on sari and sustainability, Viraasat–Nritya Sanskriti : Famous Folk dances of Indian culture and 5 F theme Pavilion – (Farm- Fibre-Factory- Fashion- Foreign). For awareness of the general public and handloom connoisseurs, a publicity program was taken up to advertise this event through Print Media - Newspapers, Posters, invitation cards, Social Media, Cultural Program and Designers Workshops etc. A social media campaign under a common hashtag #MySariMyPride was also launched to support handloom weavers. The event has been a big hit, and along with impressive footfalls across age-groups, brought much needed attention to the sector and sales of handloom goods for the weavers.

Source: PIB

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India's CII business confidence index hits 67.6 for Oct-Dec 2022

The Confederation of Indian Industry’s (CII) business confidence index hit 67.6 for the October-December quarter last year—its highest in two years—compared to 62.2 in the previous quarter. “The sharp improvement in the value of the index was buttressed by subsiding concerns around the impending recession and its impact on the Indian economy,” a CII statement said. Despite tightening financial conditions and geopolitical tensions globally, around 73 per cent of the survey respondents expected only a moderate impact of the global slowdown on the Indian economy, CII said. Eighty-six per cent believe that the government’s focus on infrastructure is the biggest positive for the Indian economy, followed by the improvement in tax collections and good consumption recovery. “Growth is expected to moderate further in the next year on global headwinds….Hence, to support growth, it is critical that the RBI [Reserve Bank of India] refrains from raising the interest rates any further. Unsurprisingly, 47 per cent have indicated that they have already started feeling the impact of the policy rate hikes by the RBI on the overall economic activity,” said the statement, adding that high interest rates have impinged on private investment levels as well. “In addition to high borrowing costs, the prevailing heightened uncertainty has prevented firms from furthering their investment plans. The survey results, however, presents an encouraging prognosis with nearly all the respondents (90 per cent) feeling that their company’s investment cycle will recover during the next financial year,” it said. Policymakers have focused on the rural economy, which took a significant hit especially after the second wave of the COVID-19 pandemic and the more recent spike in inflation, respondents felt. “It is encouraging to note that given its bearing on the overall economy, a recovery in the rural demand is eagerly awaited and about 60 per cent of the respondents feel that a pick-up in rural consumption will take place in the next fiscal,” CII added.

Source: Fibre2Fashion

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India's CPI inflation likely to remain below 6% for rest of FY23: SBI

India’s consumer price index (CPI) inflation is expected to remain below 6 per cent for the remaining of fiscal 2023, according to the Ecowrap research report of State Bank of India (SBI). The country’s CPI decreased to a 12-month low of 5.72 per cent in December 2022. Due to low CPI inflation in December, SBI revised the estimates for the remaining months of this fiscal. Inflation will decline materially and come down to 5 per cent by March 2023. For the first quarter (Q1) of fiscal 2024 (FY24), SBI expects average CPI of 4.7 per cent. Against the evolving landscape, a little incentive for further rate hike is expected, with synchronised past actions on rate front yet to show the full impact. The core CPI also moderated to 6.09 per cent in December 2022, compared to 7.09 per cent in April 2022. However, in the past 20-months core CPI has remained above 5.7 per cent and average was at 6.07 per cent, which indicates that core CPI remained stagnant and elevated. Index of Industrial Production (IIP), for November 2022, has grown on a year-on-year (YoY) basis at 7.1 per cent to 137.1. IIP for manufacturing sector grew at 6.05 per cent YoY to stand at 136.7. IIP decline has been seen in textiles, wearing apparel, and leather. The gap between the country’s rural and urban CPI increased to 66 basis points (bps) in December 2022 as compared to only 1 bps in May 2022. The country’s rural CPI increased by 6.1 per cent in December 22 as compared to 5.4 per cent increase in urban CPI. Large and persistent divergence between rural and urban inflation could result in differences in real wage rates, real interest rates, and inflation expectations, which can pose challenges for monetary policy, as per the Ecowrap report.

Source: Fibre2Fashion

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INTERNATIONAL

China's economic slowdown may adversely impact rising markets: Moody's

China’s (A1 stable) economy will strengthen in 2023 and 2024, with the cyclical pickup likely to be better than expected last year because of the recent loosening of COVID-19 policies in major cities, as per Moody’s Investors Service. Over the medium to longer term, however, China’s growth pace will likely decelerate due to structural factors such as the country’s aging population and declining productivity. “A prolonged slowdown in China will reverberate to other emerging markets beyond Asia-Pacific through a variety of transmission channels. In particular, economies with significant trade exposure to China’s commodity demand would bear the brunt,” said Deborah Tan, a Moody’s assistant vice president and analyst, in a press release. Emerging markets have pockets of vulnerability owing to large borrowings from Chinese lenders and weak repayment capacity post the pandemic. China has largely remained committed to its Belt and Road Initiative investments in Latin America and Sub-Saharan Africa, but some economies face an array of risks related to these exposures. For example, Angola (B3 positive), Congo (Caa2 stable), and Zambia (Ca stable) are among the most heavily indebted to China, based on 2019 estimates. “If a slowdown in China were to sustain, Chinese financiers’ lending capacity would be more constrained and selective, raising refinancing risks for heavily indebted borrowers. A reduction in lending support from China would delay progress in growth-enhancing infrastructure and heighten social risks in the medium term,” added Tan. Should a growth slowdown persist in China, capital flow reversals and currency depreciation pressures would occur on a global scale. The effects would weigh more on economies with stronger linkages with China, weaker debt affordability, and high exposure to foreign financing, rendering them more susceptible to changes in global financial conditions.

Source: Fibre2Fashion

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Redress Hong Kong to host Design Award 2023 for circular fashion

Environmental NGO Redress launched the Redress Design Award 2023, the 13th cycle of the world’s largest sustainable fashion design competition, at a prominent industry gathering in Hong Kong on January 11, where fashion industry leaders with global influence gathered, just days after the resumption of normal travel between Hong Kong and the mainland, to discuss the region’s opportunity to drive circular fashion globally. The Redress Design Award, which is supported by Create Hong Kong (CreateHK) of the Government of the Hong Kong Special Administrative Region (HKSAR) as the lead sponsor, educates and empowers emerging fashion designers about circular fashion, against the background that 80 per cent of a product’s environmental impact is laid down at the design stage, according to a press release by Redress. Homegrown in Hong Kong since 2011, the educational competition’s global footprint attracts applicants from over 50 countries and enjoys support from over 150 universities globally, with thousands of hopeful designers over the competition’s history battling to finesse and showcase their innovative design skills on the global stage to win the chance of collaborating with leading fashion businesses. Speaking at the Redress Design Award 2023 launch event in Hong Kong, Lowell Cho, assistant head of Create Hong Kong, thanked Redress for organising the competition again and looked forward to seeing the 10 international finalists meeting in Hong Kong in person, which would be the first time after the outbreak of the pandemic. The 2023 competition cycle is again partnering with VF Corporation, one of the world’s largest apparel, footwear, and accessories companies of iconic brands including Timberland and The North Face. Following the Grand Final Fashion Presentation in September in Hong Kong, the first prize winner will join VF Corporation’s innovative business for a sustainable design collaboration. Meanwhile, Timberland of VF Corporation is unveiling their sustainable Lunar New Year 2023 collection designed in collaboration with previous winner, Taiwan designer Jessica Chang. Among the collection pieces, Jessica’s two-in-one jacket design features a workwear-inspired inner jacket and an all-over printed vest that can be worn in multiple ways, offering a versatile design with longevity in mind for consumers. “Redress is galvanising the emerging designer sustainable design movement, creating change at the drawing board,” shared Sean Cady, vice president of global sustainability and responsibility, VF Corporation. “VF is passionate about magnifying the impacts of the Redress Design Award winners, and Timberland’s recent collaboration with Jessica demonstrates how the competition is positively influencing what’s available for consumers.” “Redress has a bold vision: to build a world in which fashion is circular,” said Dr. Christina Dean, founder of Redress, the Hong Kong-headquartered and Asia-focused NGO, at the official launch event of the Redress Design Award 2023. “Whilst the fashion industry has grappled with many challenging COVID-related supply chain impacts and a challenging economy, we can’t ignore fashion’s worsening environmental and waste crisis. Asia is the global fashion industry’s engine of production and, increasingly, consumption, and we must urgently raise our game and promote Asian innovation further. Together with emerging designers, academia, business, and government, we have great power to accelerate a circular fashion industry globally.” Asia accounts for around 60 per cent of global exports of garments, textiles, and footwear, and China is the world’s biggest fashion consumer market. Headquartered in Hong Kong, the heart of Asia and gateway to the mainland of China, Redress is in a prime position to address the issue of waste within the fashion industry. The equivalent of one rubbish truck of textiles is landfilled or burned every second, global textile waste is estimated to increase by 63 per cent by 2030, and the fashion industry is responsible for 10 per cent of global carbon emissions—more than all international flights and maritime shipping combined. Online applications for the Redress Design Award 2023 are open from January 12 and will close on March 16, 2023. Following semi-final judging, 10 finalists will be announced on May 10, and those residing abroad will come to Hong Kong in September for the Grand Final Week activities. The competition invites emerging fashion designers to pursue their dreams in community, being supported in their careers by their fellow designers and forging friendships along the way. Those who make it to the semi-finals or beyond will join the Redress Design Award Alumni Network, a community offering various career enhancement opportunities in sustainable design, with alumni achievements including fashion weeks, brand collaborations, and more. The network boasts over 270 alumni from the competition from 45 countries, 42 per cent of whom are residing in Asia, who are all pushing the movement forwards through launching their own sustainable brands or working at global brands to accelerate circular practices from all corners of the global fashion industry.

Source: Fibre2Fashion

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Bangladesh's BERC postpones retail power tariff adjustment process

With Bangladesh’s energy and mineral resources division hiking the electricity price by 5 per cent through an executive order dated January 12, the Bangladesh Energy Regulatory Commission (BERC) has postponed the adjustment process of retail electricity prices. BERC's technical committee had recommended earlier this month a retail electricity tariff hike of 15.43 per cent and was supposed to come up with an order by January 30. "If we announce another tariff order, after the ministry hiked the price with a gazette, it will create a conflicting situation," BERC chairman Mohammad Abdul Jalil was quoted as saying by Bangladeshi media outlets. On November 21 last year, BERC raised the bulk electricity tariff by 19.92 per cent from Tk5.17 per kWh to Tk6.20 per kWh. The hike was effective from December. Following that, power distribution companies and the lone transmission company appealed the regulatory commission to adjust the retail tariff in line with the bulk one and to increase their distribution and transmission charges.

Source: Fibre2Fashion

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On-Demand Production Is The Sustainable Future Of Fashion And Textiles

Making fashion and textile production a cleaner, more responsive and responsible enterprise that unleashes creativity without limitations—all while answering the call for sustainability—is vital. Meeting that challenge means leaning into the digital transformation and producing on-demand, eliminating waste while expanding the number of products and applications we can create. Since the dawn of the internet age, we’ve seen a sea of change in the way brands and designers interact with the marketplace and the expectations consumers place on vendors. The pandemic economy accelerated the move to online selling, and brands fell by the wayside because they lacked the agility to adapt old ways. Creative people, whether starting a brand or merely creating for their own sakes, have more tools than ever to design, fulfill and market their inspirations. The market is increasingly driven by social media, viral moments, word of mouth and a growing ecosystem of apps unleashing creativity wherever it may be cultivated. And, perhaps most of all, there is a widespread call for more sustainable production practices; people are actively looking to be better stewards of our environment, and consumers increasingly spend according to their own values—a movement that has spawned entirely new industries devoted to responsible, eco-conscious manufacturing. But fashion and textiles are notorious polluters, as 10% of all carbon emissions are the product of what we do just to clothe the world’s people. Estimates indicate 25% of all freshwater pollution comes from processes on textile treatment and dyeing. The problem extends far beyond our direct carbon footprint. Addressing it brings financial incentives to match the conscientious incentives. An estimated 30% of all apparel produced is overproduction. I’ve seen stories of major brands and high fashion labels destroying inventory, writing off inventory—so much going directly to landfills or the discount rack, inevitably draining billions from the bottom line. Under longtime outsourcing production models, you’ve had designers and consumers on one side of the planet and a complex apparatus to fulfill their demand operating on the other. I find that traditional supply chains are slow in reacting to trends, slow to replenish inventory and a poor fit for meeting the changing demands of a hyperconnected Generation Z. If you lack transparency, you can be vulnerable to disruptions and inevitably end up holding inventory that will never sell. By the time product does reach your shores, it’s already out of style or more popular in a completely different region. Never mind the waste, time and energy devoted to creating and approving samples.

Benefits Of On-Demand Production

As the CEO of a company devoted to on-demand technologies, I find the beauty of digital production is that it flips the supply-and-demand paradigm on its head. Before, you would create a supply based on projections and do your best to sell inventory. We now have push-button speed to create unlimited applications quickly, eliminating betting on what’s going to be popular. On-demand production harnesses the immediacy and creativity of the internet age. It’s the logical evolution of a marketplace digitized, interconnected worldwide, driven by more data than we’ve ever had, and ideal to meet the industry’s economic and sustainability challenges. Digital production means creativity and self-expression no longer have a waiting period. You also make what sells, without overstock—prioritizing resources and labor to what generates the most profit. You can customize, personalize and think outside the box to answer unforeseen demand while shrinking supply chains, eliminating complex logistics and transport waste, and using sustainable pigment-based inks and consumables, making good on the commitment to sustainability without sacrificing quality or profit margins.

Transitioning Into On-Demand

Getting the most of on-demand production means harnessing as much market data as possible—via social listening, recognizing trends and being prepared to capitalize when new opportunities emerge. Digital transformation can make a difference in long-term prospects. End-to-end digitization of your consumer and production experience offers reactivity, versatility and agility to align production with demand. Going digital can mean a fundamental change in operations of any business accustomed to traditional analog processes. Maintaining new technologies requires a new skill set (aligning with an increasingly digital workforce). On-demand production minimizes materials waste to drive ROI and opens new sales channels and product opportunities. Creating more product and profit with less time, materials, energy and production footprint—its possible to train your workforces to do more and scale business for the long term.

Beginning the transition to on-demand production, there are several key focus areas:

• Lean into digitized, end-to-end workflow. B2B and B2C companies are looking to shift their production models, and you can meet customers wherever they are—adapting to demands and capitalizing on opportunities as they arise.

• Create leaner operations and minimize to zero inventory to maximize profit margins. This goes together with onshoring and nearshoring. A recent pre-Covid survey by McKinsey & Co. indicates a shift toward nearshore production to align with demand-focused apparel value chains. You can eliminate significant logistics, risk and time-to-market by establishing on-demand closer to consumers.

• Manage resources and expectations accordingly. Companies want to expand business and add on-demand production alongside traditional methods to optimize medium and longer production runs. On-demand production allows a focus on customization and personalization for short and medium runs and other “long tail” product and applications. Digital, single-step systems for both nearshore and short-and-medium mass production are becoming more common, which makes it possible. When choosing on-demand solutions, it’s important to identify the customer and ensure you’ve invested in a technology that fulfills demands quickly, efficiently, consistently, without sacrificing quality or design capabilities. Consider market disruptions to come, and plan for the versatility and agility that may be required to mitigate risks or capitalize on new opportunities. We’ll continue to see significant transformations in how brands and designers interact with the marketplace. Creators, designers and consumers demand personalization, customization and sustainability. On-demand production fulfills the promise of a digital marketplace and delivers a better world where we can all bond, design and express our identities—one impression at a time.

Source: The forbes.com

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Trade fragmentation could cost global economy up to 7% of GDP: IMF

The cost to global output from trade fragmentation could range from 0.2 per cent of the gross domestic product (GDP) in a limited fragmentation-low-cost adjustment scenario to up to 7 per cent in a severe fragmentation-high-cost adjustment scenario, according to an International Monetary Fund (IMF) staff discussion note issued this month. The note, titled ‘Geoeconomic Fragmentation and the Future of Multilateralism’, explores the potential economic ramifications of a policy-driven reversal of global economic integration, a multidimensional process that the authors at IMF refer to as geo-economic fragmentation (GEF). With the addition of technological decoupling, the loss in output could reach 8 to 12 per cent in some countries, IMF said. The benefits of globalisation propagate through multiple channels; the adverse consequences of GEF would be felt in many areas as well, it noted. Estimates of the costs of GEF from economic modeling vary widely. Available studies suggest that the deeper the fragmentation, the deeper the costs; that technological decoupling significantly amplifies losses from trade restrictions; that adjustment costs are likely to be large; and that emerging market economies and low-income countries are likely to be most at risk due to the loss of knowledge spillovers, the note said. GEF could strain the international monetary system and the global financial safety net (GFSN). Financial globalisation could give way to ‘financial regionalisation’ and a fragmented global payment system, the IMF authors commented. With less international risk-sharing, GEF could lead to higher macroeconomic volatility, more severe crises, and greater pressures on national buffers. Facing fragmentation risks, countries may look to diversify away from traditional reserve assets—a process that could be accelerated by digitalisation—potentially leading to higher financial volatility, at least during transition, they wrote. By hampering international cooperation, GEF could also weaken the capacity of the GFSN to support crisis countries and complicate the resolution of future sovereign debt crises, the IMF note added.

Source: Fibre2Fashion

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Kenya committed to fully revive manufacturing sector: Top official

Kenya is eager to strengthen its manufacturing capacity and create more jobs, according to state department for industrialisation principal secretary Juma Mukhwana, who recently said plans to revive collapsed companies like Ken Knit Raymond and Farmers Choice are under way. He was on a tour of Rivatex East Africa Limited, a textile company in Eldoret town. “Rivatex had previously collapsed and it has undergone a significant makeover. I want to applaud the factory’s management for bringing it back to life, it has now created employment to more than 1,000 people. I am confident that the new Rivatex will boost this administration’s efforts to create more jobs for the youth in the future,“ said Mukhwana. “The government has invested up to Ksh 7 billion in the factory over the past five years and has unveiled plans to expand the textile manufacturing industry with the goal of increasing revenue ten times than of the previous year which was Ksh 50 billion, while increasing employment from 50,000 to 500,000 over the next five years,” he said. Investments in the textile sector are in line with the government’s ‘Buy Kenya, Build Kenya’ agenda, he said. The country is yet to fully exploit the export benefits offered by the US African Growth Opportunity Act, he was quoted as saying by Kenyan media reports. The government is encouraging farmers to grow cotton on a large scale as the market is readily available, noted Mukhwana. “When the factories stopped running farmers stop planting, and as a government we have allocated 50 million for cotton purchases, and this year we have set aside 200 million for the same therefore we will have cotton buying centers for farmers to sell because up to 80 per cent of our cotton supply is imported,” the official said. Counties that Rivatex has partnered with include Elgeyo Marakwet, West Pokot, Baringo and Kitui.

Source: Fibre2Fashion

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Faltering exports – the longer term for textiles

When India was partitioned “West Pakistan” had only two cotton yarn spinning mills and “East Pakistan” had no jute mills. Almost all our cotton and jute were exported and we would purchase fabric and clothing from all over the world. Today, what is now Pakistan, it imports about 50% of its requirement of cotton, and of course all the jute. We supply basic cotton textiles to the whole world. If you consider volumes, we are the biggest suppliers of cotton yarn, fabric, bed linen and towels in the world. In the above fields we dominate the lower priced segment of the market. In volume and value of garments exported we are still way behind India, Bangladesh, China, Vietnam and of course, European countries like Portugal and Italy. In most garments price is only a consideration and quality, design and the brand are more important. The writer is well-informed about the field of towels in particular and household textiles in general and can give an accurate assessment on what we have achieved and where we can progress in these fields. In the field of towels and “made ups” we are the biggest exporter by volume in the world. The product is such that it is ideally suited to our country. The raw material is short to mid staple cotton of which we always had aplenty until a few years ago. Our industry has grown to use all the 12/13 million bales of short to mid staple cotton that we normally produced. In the last few years, we have had a number of disastrous crop failures, only partially due to the floods this season. The reasons are manifold, but mostly to do with negligence and poor policy. However, that is a separate subject. The industry was exporting about 50 million dollars of towels in the year 81/82, from there we grew to 250 million by the turn of the century and last year we crossed a billion dollars in exports. The growth rate for the years 2020/21/22 has been over 25% per annum! In the thirty odd years the industry has been transformed. The export of “made ups” has shown an equal rate of growth. That has also now grown in tandem to almost 800 million dollars. These are also items similar to towels but classified under a separate HS code. These are mainly kitchen towels, bar mops, wipes aprons, etc., largely produced by towel units. In the field of bed sheets, we did not grow from small ill-equipped factories to bigger well-equipped ones. The trade was taken up by the large textile mills like Gul Ahmad, Mohammad Farooq and Nishat from the vey inception and they were better equipped, financed and had technical knowhow.

Hence, they got off to a better start and grew rapidly to get their share of the lower quality end of the world market.

Product: HS Code 6302 Home Textiles

Indian figures of value look suspect but we can see the volumes. HS Code 6302 consists of both bed linen and towels. The value of bed sheets exported is around three billion dollars. Their unit value is around six dollars a kilo whereas the towels are still below five dollars a kilo. There is greater value addition in producing printed duvet covers, bed sheets and pillows etc. There is one inescapable conclusion, Pakistan gets the lowest values for its merchandise. Our volumes in Home-textiles are now quite respectable and probably as big as anyone else, yet the value per unit is the lowest in the world. This is even when we compare to India or Bangladesh. We are the cheapest country to buy from. Why?

1) We make our products from the worst quality of cotton in the world. It is short staple and brittle.

2) Most of our factories were poorly equipped and under- funded as compared to our Indian competitors who were established well before partition.

3) Perhaps the most important reason for all is the poor level of skills, education and training amongst our entrepreneurs, managers, workers and sales persons.

4) The perception that our country is a hotbed of fanaticism and is dangerous to travel in, and do business with. It is unreliable and prone to frequent manmade catastrophes.

Let’s try to remove these drawbacks and we will be able to grow the value of our exports even if the growth in volume slows down. In value we have a long way to go before we catch up with our regional rivals, not to talk of the Chinese or European manufacturers. We need to overcome certain obstacles, including paucity of research and adaptation, without any further loss of time. This is something we need to do not just for our cotton, but wheat, rice, and all other agricultural produce. This will not cost much, but will require a seriousness of purpose and consistent support for a few years and then the whole process of knowledge enhancement begins to gather momentum and attracts its own resources. Skill development in our workers and management will need better schooling, widespread technical skills training and enhancement institutes. Our emphasis up to now has been on developing, among other things, religious and Pakistan studies, law and the arts and languages.This will assist our poor labourers heading abroad as simple unskilled loaders and construction workers to get better wages as skilled workmen. The lack of any diversification in our exports is striking. Even in the fields we dominate we have no clue of alternate fibers, like microfiber, vegetable fiber, silks, wool and linen. The country has the diversity to excel in all these and their development will give a much broader base to our textile industry as well. Insofar as the last reason— the perception of our country as a terrorist state—is concerned, enough has been said and written about it for me to state the obvious.

Source: The Brecorder

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Vietnam's exports to CPTPP members reach $38.8 bn during Jan-Oct 2022

Vietnam exported goods valued at $38.8 billion during January–October, 2022—an increase of 21 per cent year-on-year (YoY)—to members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The Southeast Asian nation has witnessed a significant rise in exports to CPTPP members ever since the partnership came into effect three years ago. From January to October 2022, Vietnam gained a trade surplus of $4.4 billion. In 2021, the country earned $45.7 billion in revenue from exports to CPTPP members, which is a rise of 18 per cent YoY, according to local media reports. Vietnam’s garment and textile and leather shoe industries boosted shipments to CPTPP members by 15 per cent when compared to before the agreement. Local firms benefit from the tax preferences put on Vietnamese goods by the CPTPP.

Source: Fibre2Fashion