Poly-spun yarn prices in India increase as a result of orders regarding anti-dumping duty
GST Council chaired by FM Nirmala Sitharaman to meet on Feb 18
U.P. exceeds targets, gets investment proposals of ₹21L cr
Customs duty changes in Budget will promote Make in India initiative: GTRI
How Indian textiles, from Kashmir to Kanyakumari, travelled the world and back
RBI likely to settle for 25 basis points repo rate hike: Experts
India ranks third in world 'start-up' ecosystem: Union minister Anurag Thakur
INTERNATIONAL
Bangladesh in efforts to promote trade with Southern Africa
Operating conditions of ASEAN manufacturing sector improve in Jan '23
Next Level Apparel, GK Global partner for nearshoring fabric supply
Fast fashion is harmful to the environment, experts say
NATIONAL
The prices of poly-spun yarn in India have increased by 3-4 per cent in the last fortnight as a result of a legal case fought by a Punjab-based company against the imposition of anti-dumping duty (ADD) on polyester-spun yarn. A decision by the Central Government has been set aside by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) to impose anti-dumping duty on imports from China, Indonesia and Vietnam. The Director General of Trade Remedies (DGTR) had recommended the imposition of the ADD on imports from Vietnam, China and Indonesia. On 18th January 2023, the Tribunal ordered the Government to reconsider the recommendations made by the DGTR. Arisudana Industries Ltd., a Punjab-based company, had filed a case against the DGTR, the Central Government and other concerned parties. With effect from 18th January 2023, all imports of 100 per cent poly-spun yarns are supposed to attract duty, in case the Central Government accepts the recommendations of the DGTR. “The price of polyester spun yarn increased after the order from the tribunal. There was expectation that the Government may reconsider imposition of anti-dumping duty on imports from China, Indonesia and Vietnam. However, the demand from downstream industry was not so encouraging. Weaving and garment industries are not too keen on purchases,” said an industry insider.
Source: Apparel Resources
The Union Minister of State for Textiles, Smt. Darshana Jardosh in a written reply to a question in Rajya Sabha today, informed that, the recycling and reusing Textile waste material is an effective method to build sustainability in the Textile Industry. Government in collaboration with United Nations Environmental Programme (UNEP) is implementing a project called ‘Enhancing Circularity and Sustainability’ in India. The main objective of the project is to minimize the negative environmental impacts of Indian Textile by promoting sustainable practices and mainstreaming knowledge on circular production based practices in the Textiles and Apparel sectors. Government has also approved 20 strategic research projects in the areas of Specialty fibres and geo textiles and amongst the 20 Research projects, 3 projects in the area of Textile waste recycling have also been approved.
Source: PIB
The GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising state counterparts, will meet on February 18. "The 49th meeting of the GST Council is scheduled to be held at New Delhi on February 18, 2023," the GST Council said in a tweet on Friday. he council may take up a discussion on the report of a group of ministers on taxation of 'pan masala' and 'gutka' firms and a report by a Group of Ministers (GoM) on setting up of appellate tribunals. The report by another GoM, chaired by Meghalaya Chief Minister Conrad Sangma, for GST levy on online gaming, casinos and horse racing may come up for deliberations. These three GoM reports were part of the agenda items in the last GST Council meeting, that was held on December 17, 2022.
Source: Economic Times
The state government had set a target to attract investment proposals of ₹10 lakh crore at the UPGIS-2023. The target was revised upwards to ₹17.3 lakh crore. With claims of getting investment proposals of ₹21 lakh crore, the state government has exceeded its targets. The Uttar Pradesh government said on Friday that it had received investment proposals worth ₹21 lakh crore ahead of the Global Investors’ Summit-2023 (UPGIS-2023), following investment-friendly environment that had been created in the state under the leadership of chief minister Yogi Adityanath. UPGIS-2023 is scheduled in Lucknow from February 10-12, 2023. The state government had set a target to attract investment proposals of ₹10 lakh crore at the UPGIS-2023. The target was revised upwards to ₹17.3 lakh crore. With claims of getting investment proposals of ₹21 lakh crore, the state government has exceeded its targets. Yogi has set a target of making Uttar Pradesh a trillion-dollar economy in the next five years. According to a press release, the manufacturing sector with close to 56 per cent of the total investment proposals stands first. Various domestic and foreign companies are planning to expand or set up their businesses in Uttar Pradesh, keeping in view the ‘ease of doing business’ as well as the ‘ease of starting business’in the state, it said. The agriculture sector is at second place with 15 per cent of the total investment proposals while infrastructure remains at third place with 8 per cent investment proposals. Textile sector with 7 percent remains at fourth place while tourism comes fifth with 5 percent of total investment proposals. The investment proposals have been received in sectors like education, IT and electronics, healthcare, warehousing and logistics, renewable energy and pharmaceuticals and medical devices. The state government’s policies, including the industrial development and MSME policies providing relief to the manufacturing sector, have contributed o attracting the investors. The state government has worked out 25 sectoral polices ahead of the UPGIS-2023. The chief minister had sent eight teams led by two deputy chief ministers, Keshav Prasad Maurya and Brajesh Pathak, abroad to hold international roadshows to attract investment. Later, Yogi led a roadshow in Mumbai and sent teams to seven other major cities to hold domestic roadshows. It may be mentioned that all the investment proposals do not necessarily translate into investment on the ground.
Source: Hindustan times
Customs duty changes for several products such as precious metals, small cars, bicycles, toys and telecommunication components in the Budget will help promote the Make in India initiative of the government, economic think tank GTRI said on Friday. The Global Trade Research Initiative (GTRI) also said the import duty changes in Union Budget 2023-24 affect products that count for less than USD 14 billion or 2 per cent of the value in India's current import basket. A large part of the Budget exercise was devoted to reducing the number of duty slabs and exemptions. The government continued with the current import duty structure, making changes only when it has big reason to do so. This will allow the firms to think long-term, GTRI co-founder Ajay Srivastava said.
Source: zee biz
The history of India has been written with a stylus, a chisel, a paintbrush and a needle. It has been written by scholars, sculptors, and artists, along with weavers, embroiderers and dyers. The backstory of Indian textiles forms the backdrop of this country; and to believe Deepika Shah, curator of a new textile exhibition initiated by Chhatrapati Shivaji Maharaj Vastu Sangrahalaya (CSMVS), sometimes even the world. “There’s so much of history that got shaped by Indian cloth. And, as Indians, we’re not even aware of how pivotal their contribution was,” she says. ‘When Indian Flowers Bloomed in Distant Lands’ has a sampling of 58 trade cloths from the Surat-based TAPI Collection. Founded by Shilpa and Praful Shah, of Garden Silk Mills, they have been acquiring centuries-old objects for half a century. “My mother-in-law has always been collecting,” says Shah, who married into the family in 1997, and has a background in art history. “When other people thought old was rubbish, she had the eye for it. And, my father-in-law, because they had a textile printing business, started collecting mainly as a design resource for inspiration. Together, they were such a dynamic duo that by 2000, the collection had become a formal assemblage of textiles.” With dates of birth ranging from 1250 to 1850, the heirloom textiles were born on the loom, but reared by artisans of different disciplines, and in distinct regions. “We’ve tried to showcase diversity in terms of the geographical spread, the chronological spread, even the artistic spread,” says Shah. There are 13th-century block prints from Gujarat, 17th-century embroidered bedspreads from Bengal, 18th-century kalamkari costumes from the Coromandel Coast (the south-eastern side of India’s coastline), and 19th-century striped pashminas from Kashmir. The phoren-returned textiles were all created for export, meant for sacred rituals in Indonesia and tea ceremonies in Japan. They were used as tunics for soldiers in Thailand, provincial flags in Sri Lanka, and prayer mats in Iran. Europe loved them as palampores (bed covers or hangings) and clothing, and the US even found use for them while shaving. “You see this thing,” Shah says, while pointing at an upside-down motif on a shaving bib. “I wondered, ‘Why is it ulta?’ It’s probably when he wore it, he could see it correctly.” In the official portrait of the current sultan of Yogyakarta, Indonesia, the king is even wearing hip patola pants. “In the East, the textiles were lubricating the wheels of commerce,” says Shah. “It’s just fascinating how the craftsmen, the textile makers, the dyers were able to create cloths that catered to so many different tastes and preferences. What would sell in Indonesia wouldn’t sell in Thailand, and vice versa. I believe that these kinds of textiles were the world’s first global consumer commodity. They were signifiers of wealth, indicators of status and rank, transmitters of design, and they were durable and portable. They were a wonderful medium of exchange, long before currency came in.” Often bartered for spices, sandalwood, and slaves (“a disturbing history, unfortunately”), the fabrics also found favour with colonisers. “When the Europeans came here, they found an insatiable appetite for Indian cloth in South and South-east Asia. They realised that these places did not care for bullion; they wanted Indian cloths.” Textiles for trade Ebeltje Hartkamp-Jonxis, former curator of textiles at Rijksmuseum, in Amsterdam, who retired in 2009, has written the catalogue for the exhibition, which focuses on the textiles traded to the West. In the city for the exhibition opening, she says, “As Europeans, we are burdened by our colonial history. But, I love the East and the West, and they meet on these textiles. Many of the European textiles in the TAPI collection are actually from Holland. Surprisingly, Indian chintzes (kalamkaris) were very popular in local costumes there, and they were fascinated by the colours and the motifs on them.” In the 18th century, kalamkari gowns and coats were even part of the street style in the Dutch town of Hindeloopen. But, its popularity was trailed by trade bans. Indian chintzes were declared illegal in France in 1686. With the Calico Act, England followed suit in 1700. “The Calico debates were some of the earliest arguments for economic liberalism,” says Shah. “These textiles were the catalyst for the Industrial Revolution. James Hargreaves’s spinning jenny and Richard Arkwright’s water frame were all textile innovations. They were to compensate for the failure of the domestic industries, as a result of Indian imports.” It was the kalamkari’s mordant and resist-dyeing technique, which took all the East India Companies by surprise. There’s a saying in Gujarati about it: ‘phatay pan phitay nahi’; tear it may, but fade it won’t. Even after repeat washes, the red buds and indigo veins of kalamkari flowers never lost their colour. “In Europe, there was linen, wool and silk, of which only linen could be washed, and silk was for the very rich,” says Hartkamp-Jonxis. “So, it was something quite new. It was only in the course of the 18th century that a French chemist found out the technique and imitated it. But in India, the technique really existed since Mohenjo-daro.” Here, the 10-step dyeing process was passed down from father to son, but the Europeans were able to reverse-engineer the process. Shah says, “It isn’t wrong to say that those were some of the earliest cases of industrial espionage.” To see the exhibition in its entirety, it is clear that there is more than one reason why India led the world in textiles. “India is the birthplace of cotton,” says Shah. “In 2500 BCE, they found spindle whorls and needles. Around 1700 BCE, they found dyed cotton. We had the knowhow, the creative genius, the entrepreneurial abilities, the design, the dye technology, the very advanced knowledge of chemistry, which was empirical. We had the coasts for the trade, the fertile soil for the dyes, and we had a great imagination. We had everything.” She continues this thread. “Textiles are our second skin. When we are born, we are swaddled in them; when we die, we are shrouded by them. They’re a part of our identity. And, they’re also a testament to our heritage. So, how can people not know? I want as many people as possible to come here. And, if they come away thinking, ‘It’s nice that we’re part of this amazing country,’ it’s a real ego boost, I have to say.”
Source: Hindustan times
With retail inflation showing signs of softening and the US Fed moderating the pace of increase in its benchmark interest rate, the Reserve Bank is likely to settle for a smaller 25 basis points repo rate hike in its forthcoming bi-monthly monetary policy due later this week. In its December monetary policy review, the central bank had raised the key benchmark interest rate (repo) by 35 basis points (bps) after delivering three back-to-back increases of 50 bps. Since May last year, the Reserve Bank has increased the short-term lending rate by 225 basis points to contain inflation, mostly driven by external factors, especially global supply chain disruption following the Russia-Ukraine war outbreak. RBI’s rate-setting panel – Monetary Policy Committee (MPC) – will start its three-day deliberations on the next set of monetary policy on Monday. The decision will be announced on February 8. Kotak Institutional Equities in a report said the global inflation environment is gradually turning benign although inflation is still well above every central bank’s target. Inflation will likely moderate further in the next few months, leading to the end of the rate hiking cycle by first half of 2023 and possible rate cuts in late-2023/early-2024. “However, given large global uncertainties, central banks’ levers for supporting growth through monetary easing remain limited, thereby risking higher rates for an extended period. “We expect the RBI MPC to hike policy rate by 25 bps to 6.5 per cent, followed by a prolonged wait-and-watch approach, as it assesses the lagged impact of monetary tightening on growth and inflation,” it said. The RBI has been tasked to ensure that retail inflation remains at 4 per cent with a margin of 2 per cent. However, it failed to keep the inflation rate below six per cent for three consecutive quarters beginning January 2022. However, the retail inflation based on the Consumer Price Index (CPI) has shown signs of moderation in November and December as it fell below the RBI’s upper tolerance level of 6 per cent. On his expectations from the MPC, Dhruv Agarwala, Group CEO, Housing.com said amid projections of slower growth than previously forecasted for 2023-24, the RBI will probably stick to a moderate increase in its benchmark lending rate in the upcoming policy announcement, before hitting a pause button on hikes later in 2023. “The move is likely to have limited impact on real estate demand as home purchase decisions are driven and determined by several factors other than just home loan rates. That said, borrowers would feel the pinch of this increase in rates as home loan EMIs for existing and new loans would go up,” he said. Amita Vaidya, Director, Sarla Anil Modi School of Economics, NMIMS Mumbai too said the monetary policy committee may ease its monetary tightening stance. “However, the downside of global economic outlook continues. Domestic economy is showing an uptick and resilience. Food inflation continues to have increased pressure from high cereal prices. Thus RBI may remain focused on withdrawal of accommodation and raise the policy rate by 25 basis points,” she said. On the other hand, Ranen Banerjee, Partner and Leader, Economic Advisory Services at PwC India said with the US Fed bringing down the quantum of increase to 25 bps, CPI within the tolerance range of RBI, yield differentials between US and India increasing to around 3.75 percentage points, sluggish exports and need to keep borrowing costs low for government and the private sector, the MPC does not have many reasons for a further rate hike. “The only argument for a rate hike would be too early a pause may lead to de-anchoring of inflation expectations. On this front too, given our inflation is mostly demand-led and not supply-led, the arguments are weak. “We should therefore not be surprised if the majority in MPC actually goes for a pause or a token 10-15 bps repo rate increase from a signalling perspective,” said. Recently speaking at the 22nd FIMMDA-PDAI Annual Conference, RBI Governor Shaktikanta Das said that with some ebbing of COVID-related restrictions and cooling of inflation in various countries, though still elevated, central banks have started what appears to be a pivot towards lower rate hikes or pauses. “At the same time, they continue to emphatically reiterate their resolve to bring inflation down closer to targets. High policy rates for a longer duration appear to be a distinct possibility, going forward. On the growth front, projections are now veering around to a softer recession as against a severe and more widespread recession projected a few months back,” he had said. In this hostile and uncertain international environment, Das said the Indian economy remains resilient, drawing strength from its macroeconomic fundamentals. “Our inflation remains elevated, but there has been a welcome softening during November and December 2022,” he said. Core inflation, however, remains sticky and elevated, the Governor added.
Source: Financial express
Union Minister Anurag Singh Thakur on Saturday said India is now the hub of 'Start-up' ecosystem in the world, ranking third with 90,000 'Start-Ups' and 107 unicorn companies worth 30 billion dollars. The Minister for Information and Broadcasting, and Youth Affairs and Sports was speaking at the valedictory function of 36th Inter-University North Zone Youth Festival (Antarnaad) under the aegis of Association of Indian Universities (AIU) at the Jammu University. More than 1,000 participants from 18 universities across the country participated in the week-long festival. "India is now the hub of 'Start-up' ecosystem in the world, ranking third with 90,000 'Start-Ups' and 107 unicorn companies worth 30 billion dollars which has been possible only by the contribution of India's youth," the minister said. Thakur said the world is looking towards New India under Prime Minister Narendra Modi as India is now the biggest exporter of vaccines, biggest exporter of mobile phones and defence equipment. He said for sustainable growth, the sustainable investment is required for the development of green economy leading to green jobs. "For that, India is moving towards becoming the global hub for green hydrogen producing five million metric ton, 10 per cent of the world in the next five years with Rs 8 lakh crore investment that will generate thousands of green jobs for the youth of this country," he said. Praising the various performances of the youth during the festival, Thakur said India has a great history with rich culture, art and tradition and the youth of this country have a great responsibility to preserve this culture, art and tradition which is not seen anywhere in the world.
Source: Economic Times
INTERNATIONAL
The exhibition featured jute, ceramic, textiles, leather, food products and handicrafts from Bangladesh.Leading SouthAfrican business federations, including Business Unity SouthAfrica BUSA and the Black Business Council of SouthAfrica joined SouthAfrican government officials and some local captains of industry at the event.Alam, who is on a week-long visit, detailed some of the emergent industrial sectors in Bangladeshwhich offered opportunities for SouthAfrican businesses and investors.Bangladesh has been identified by SouthAfrica as a country with enormous potential for the expansion of trade and economic relations. B angladeshi State Minister for ForeignAffairs ShahriarAlam is leading a delegation to SouthAfrica to improve trade and other relations between the two countries and its neighbouring states of Eswatini and Botswana. On Friday,Alam inaugurated an exhibition titled 'Made in Bangladesh' in Pretoria. The exhibition featured jute, ceramic, textiles, leather, food products and handicrafts from Bangladesh. Leading SouthAfrican business federations, including Business Unity SouthAfrica (BUSA) and the Black Business Council of SouthAfrica joined SouthAfrican government officials and some local captains of industry at the event. Alam, who is on a week-long visit, detailed some of the emergent industrial sectors in Bangladesh which offered opportunities for SouthAfrican businesses and investors. Bangladesh has been identified by SouthAfrica as a country with enormous potential for the expansion of trade and economic relations. Since 1994, bilateral trade between the two countries grew significantly from just Rand 28 million to approximately Rand 5.2 billion by 2021 before the advent of the Covid pandemic brought this down. SouthAfrican exports amount to Bangladesh are more than Rand 3.4 billion and SouthAfrica enjoys a trade surplus of Rand 1.6 billion. SouthAfrica's main export items to Bangladesh include citrus fruit, mineral products, chemicals, iron and steel products and pharmaceuticals. The primary imports from Bangladesh include clothing, textiles, leather and leather products, footwear, chemicals and machinery. The Black Business Council suggested that Bangladesh import various goods from SouthAfrica given the large and growing consumer market of Bangladesh, but that there were also opportunities for Bangladesh to export to the other countries of the southernAfrican region through SouthAfrica. Before the exhibition,Alam held a meeting with BUSA at their office in Johannesburg, where he called for joint efforts to realise the trade and business opportunities between Bangladesh and SouthAfrica. He mentioned the economic strength of both countries, especially in the export sectors. The BUSA delegation suggested holding mutual discussions to identify potential sectors of trade and Investment. The state minister invited the SouthAfrican dignitaries and chambers to join the 50th-anniversary programmes of the Federation of Bangladesh Chambers of Commerce and Industry in March 2023 in Dhaka. At a meeting with SouthAfrican Deputy Minister of International Relations Candith Mashego Dlamini,Alam discussed ways to pursue bilateral cooperation in defence, agriculture, law enforcement, transport and higher education and to expand private sector business-to-business engagements in support of trade and investment promotion. SouthAfrica established diplomatic relations with Bangladesh in September 1994, after Nelson Mandela became the country's first democratically-elected President following decades of white minority apartheid rule. The opening of the High Commission of Bangladesh in Pretoria followed soon after. SouthAfrica is non-residentially accredited to Bangladesh through the SouthAfrican High Commission in New Delhi, India. Foreign Ministry spokesman Clayson Monyela said Bangladesh and SouthAfrica share common views on a range of global issues, and SouthAfrica regards Bangladesh as an important partner in the advancement of the development agenda of countries of the South. SouthAfrica and Bangladesh share membership of the G77+China, the Commonwealth, the Non-Aligned Movement and the Indian Ocean RimAssociation (IORA). Bangladesh is the current Chair of IORA. Alamwill also be having official meetings with senior government officials as well as chambers of commerce and business entities in Eswatini and Botswana.
Source: The Devdiscourse.com
The fast fashion industry is a key cause of clothing waste resulting in landfills being overfilled and greenhouse gas emissions increasing. The production and effects of fast fashion are no different from single-use disposable plastics. Used a few times, discarded and then eventually polluting the environment. In short terms, fast fashion is defined as an approach to producing trendy designs quickly and affordable to consumers. However, the environmental effects put this production in a negative light, according to experts. Madeleine MacGillivray, Seeding Sovereignty climate advocate and plastics campaign coordinator, shared that fast fashion impacts the environment throughout all production phases. “Most of the fast fashion is made from synthetic textiles,” MacGillivray said. “So that just means plastic which comes from oil and gas. When it’s produced, greenhouse gas emissions are generated.” MacGillivray said that typically the garments people purchase for lower costs and are used only a few times, end up shedding lots of plastic microfibers into the environment, making up 35 percent of the overall microplastics. MacGillivray highlights the lack of compensation factory workers in the industry receive alongside the harsh working conditions are another factor to the issues within its production process. “Social justice implications of fast fashion are really a critical component to this,” MacGillivray said. “So when we fight for more sustainably made clothes, we should really just as much if not more be fighting for a livable wage and safe working conditions for the people who make our clothes.”Where these large amounts of synthetic textiles eventually get ‘dumped’ in are in landfills in countries outside of the U.S. and Europe, such as Ghana and Chile, MacGillivray said. The unusable clothing deteriorates into their oceans, becoming toxic waste in the environment. “Oftentimes these countries have less sort of power and are less developed in the sense that it’s hard for them to say no,” MacGillivray said. “So I think that all of these clothes are having a detrimental effect on people who are not responsible for getting these clothes.” Staff scientist at Healthy Gulf, Naomi Yoder details how the production affects the environment even beyond the microplastics. “Once the plastic is made, then we have several scenarios where those chemicals can enter the environment,” Yoder said. “That garment will start to break down over time and could also attract animals to eat it.”Yoder stated that essentially what happens is a biological and weathering process co-occurring. The material, plastic polymer, gets broken down and further distributed throughout the environment and transformed into chemicals. “Houston is the export capital for polyethylene which is like the building block for a lot of plastic materials,” Yoder said. “There are other chemicals that are produced along the Gulf Coast. It’s especially important for us to think about limiting production so we can have healthier communities.” Ethically made clothing can carry a higher price compared to the mass production of cheaper garments, so the question now is how to be sustainable in clothing and garment purchases. “Politicians have to enact legislation that demands companies to change, and technology and design need to improve so that things are made way more efficiently and items and materials are innovated in such a way that uses less energy, don’t use nearly as much plastic and can be upcycled and recycled,” MacGillivray said. MacGillivray stated that college is a unique place for community, a foundation of solutions and finding people who are like-minded and can demand change from sharing that emotional burden of the impact of fast fashion. Whether it be organizing around campus, hosting clothing swaps and living a sustainable life to halt the climate crisis. “Fast fashion is accelerating many negative aspects of our world,” said biochemistry freshman Tarun Pandey. “For example, climate change and exploitation of workers is increasing including child labor. Many of the youth are unaware of fast fashion and the detrimental and irreversible effects that it has. A lot of them contribute to fast fashion as trend cycles change so quickly. Clothes weren’t massed produced as they are now.” Pandey shared his ways of combatting feeding into fast fashion including shopping secondhand/ thrifting at local Goodwill bins. MacGillivray emphasized that the realities of seeing change lie within companies producing less and consumers purchasing a lot less. “I also think that there is a beauty in understanding our own agency,” MacGillivray said. “Kind of my main message is when you think about what can I do to try and help fight the climate crisis or to help fight social injustice, its a really personal answer.”
Source: The Daily Cougar
The collaboration between Next Level Apparel (NLA), provider of luxury blank apparel, and GK Global, a diversified international textiles business, is the latest step towards making NLA’s apparel line entirely of cotton grown in the US. To maintain the integrity of its supply chain, the supplier will employ origin testing processes. Partnering with GK will help strengthen their ideas. “There are many benefits of this partnership with GK, including shorter lead times and reduced exposure to geopolitical risks, said NLA chief executive officer Randy Hales. Adding, “Bringing our fabric production closer to home allows us to have complete supply chain transparency, including upstream traceability to the cotton.” NLA, founded in 2003, is a designer, supplier, and manufacturer of quality blank apparel for the retail, printwear, brand speciality and other decorated garment sectors. The company says its dedication to excellent craftsmanship fueled the development of more designs, effectively creating the Next Level Apparel brand. Three decades ago, GK Global said it became one of the first foreign textile investors in Honduras. It has since initiated vertically integrated production covering the textile supply chain. GK Global chairman, Yusuf Amdani, said: “In 2022 GK invested more than $236m aimed at expanding our world-class operations and allowing us to bring the full strength of our global supply chain to our relationship with NLA. “We are proud to partner with the leading print wear brand and to grow together by delivering the highest quality and responsibly sourced products available in the market today.”
Source: Just-style
Before independence Kenya imported nearly all textiles from the UK, India, and Uganda. The independence government developed a major program to grow cotton in semi-arid regions, fully equipped with ginneries. Textile industries were located in Thika, Eldoret, and Kisumu. The Agricultural Finance Corporation (AFC) funded cotton growing while the Industrial and Commercial Development Corporation (ICDC) funded industries in partnerships with private investors. Fiscal interventions were instituted to discourage imports. The first threat to cotton was the advent of synthetic fabrics from Japan in the 1960s and 1970s. Then in the early 1990s, the IMF-prompted economic structural reforms allowed uncontrolled importation of new and old clothes. This paralysed cotton farming and the supporting industrial infrastructure. Today there are only two surviving textile industries at Eldoret and Thika running undercapacity and using limited quantities of locally grown cotton supplemented with cotton imports from Tanzania. The William Ruto government's plans to multiply economic opportunities and jobs in agricultural value chains, including agro-industries, and cotton, is a ready candidate. A recent 2020 study (cotton and pyrethrum revival ) indicated that a number of counties (Busia, Kitui, Kwale, Homa Bay, Lamu ) are ready with plans to multiply cotton production. The adjacent counties can quickly mobilise cotton growing. Bt/GMO cotton seeds have been successfully introduced in some counties, with strong recommendations that KALRO develops high-impact Kenyan seed varieties to eventually reduce reliance on unsustainable importation A sure roadmap to textile industry revival should involve scaling up whatever cotton growing that is already happening in various counties. Departments of Trade, Agriculture, and Co-operatives, and counties will need to jointly allocate resources to multiply cotton crop production, reorganise farmers' co-ops and modernise ginneries while inviting investors to participate in textile milling capacity This way, the promised economic impacts (agricultural and industrial jobs, import substitution, and exports ) will be delivered. In Kenya, cotton fabrics have a large niche market, which is currently unfulfilled. There is therefore no immediate need to interfere with competing second-hand clothes imports that satisfy a different market segment. Kenya should also target exports of surplus cotton lint and fabrics to generate forex. Other by-products from ginneries are oil and cotton-seed cake, which is much needed for animal feeds formulation. For information, I chaired the 2020 National Steering Committee that undertook the cotton/pyrethrum revival study. I currently chair the Pyrethrum Processing Company of Kenya where we are reviving pyrethrum value chains.
Source: Business daily Africa
