"The industry's talent is spread across every zone and this industry can generate lots of jobs commensurate with the talent. The future is bright but we seek a collective commitment from every exporter to contribute to increasing exports despite headwinds and challenges," said the minister. Union minister Piyush Goyal on Sunday said the world is now looking up to India and its industries and this is the right time for entrepreneurs and industry players to grasp the opportunity and grow exports. Entrepreneurial abilities in the country with innovation, new ideas, new ways of marketing and branding products can unleash the true potential of the country, the Commerce and Industry Minister said while addressing the 49th India Gem and Jewellery Awards. "On April 24, I have a meeting with ministers of the European Free Trade Association (EFTA), consisting of four countries including Iceland, Liechtenstein, Norway and Switzerland, who are keen to negotiate with India. "Other Gulf countries and Russia are also keen to negotiate with India. The world is now looking up to India and its industries, and this is the right time for the industries and entrepreneurs to grasp the opportunity and grow exports," Goyal said. Further, Goyal said jewellery exporters have shown good promise and good results and the gem and jewellery industry is the diamond of India's exports. "The industry's talent is spread across every zone and this industry can generate lots of jobs commensurate with the talent. The future is bright but we seek a collective commitment from every exporter to contribute to increasing exports despite headwinds and challenges," said the minister. The government is working towards ease of doing business honestly and efficiently and expects the industry players to engage in ethical practices, he said. Talking about the mega Common Facility Centre (CFC) in Santacruz Electronics Export Processing Zone (SEEPZ), Goyal said it is on track and is expected to be ready by 'Ganesh Chaturthi' this year. Meanwhile, the Gem and Jewellery Export Promotion Council (GJEPC) chairman Vipul Shah, who was present on the occasion urged the government to have dialogue with the US and the G7 to avoid imposing sanctions, which may cripple the Indian natural diamond cutting and polishing industry. "We met the top officials of the US and EU governments recently to deliberate and put forward our viewpoint on this," he added. Shah emphasised that time has also come to grow exports of plain gold and silver jewellery from India as only 10-15 per cent of gold and silver, which is imported is used to manufacture jewellery for exports. "We require the minister's direct intervention in the implementation of the Ad Valorem scheme for gold and silver, whereby the effective import duty on gold and silver procured from domestic market - just like GST - should be put into exporters' accounts at the rate prevailing on the day of exports to have a level-playing field with exporters from Singapore, Italy and Vietnam," Shah added. In 2022-23, the overall gem and jewellery exports grew 2.48 per cent to Rs 3,00,462.52 crore, as compared Rs 2,93,193.19 crore in the year-ago period.
Source: Economic Times
Union Minister of Commerce and Industry Piyush Goyal attended a Chintan Shivir, a brainstorming session on Technical Textiles. “India can emerge as a key player in the global technical textiles market,” Goyal said. Union Minister of State for Textiles Darshana Vikram Jardosh also attended the Chintan Shivir. The session was jointly organized with Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) and Indian Technical Textiles Association (ITTA) encompassing participation of more than 50 major industries in the application areas of home textiles and cloth textiles such as Industrial Sewing threads, Adhesive Tapes, Labels and Batches, Furniture and Coated Fabrics, Mosquito Nets, Fibrefill, Filter Fabrics, Household wipes, Stuffed Toys, among others. The Conference brought together industry leaders, manufacturers, researchers, line Ministries and user Departments of Central and State governments on a single platform to exchange ideas and deliberate on the future growth and development of the sector. Goyal chaired the 2nd meeting on Textile Advisory Group on Man-made Fibres with stakeholders of the MMF value chain. According to the Ministry of Textiles, to meet the growing internal and global demand for sustainable and circular products, India is also bracing itself and many Indian innovators are experimenting with technologies and techniques to make the different processes of the textile value chain resource-efficient and environment-friendly. The textile clusters in Gujarat and Tamil Nadu are frontrunners on the road towards sustainability. Great work is being done by them today to make the manufacturing processes more resource efficient through processes like zero liquid discharge, fibretofibre recycling, switching to alternative organic dyes/chemicals as well as shifting to renewable energy sources. Alongside this, work is also being done to promote worker well-being through improved working conditions and benefits, thereby targeting all elements of ESG principles. Under the ‘Ek Bharat Shreshtha Bharat’ Initiative, the Saurashtra Tamil Sangamam is being conducted in Gujarat from April 17-30 to celebrate the cultural links between Gujarat and Tamil Nadu. To celebrate the unity and highlight the oneness of the two regions with a shared history, the event is being held in four different places: Somnath, Dwarka, Rajkot and the Statue of Unity at Kevadia.
Source: The Print
The Directorate General of Foreign Trade (DGFT) issued a notification of new HSN codes for the technical textiles items on 17th April 2023 with reference to the DGFT notification no. 20/2015-20 dated July 07, 2022. It has been emphasised by the Ministry of Textiles that all importers and exporters must submit their Bill of Entry/Shipping Bill using the relevant HSN codes made available for technical textiles and man-made fibres under Input Tax Credit (HS) 2022, Schedule I (Import Policy). When goods are imported into a country, an importer or their authorised agent must file a bill of entry with the customs department. It is a statement of the type, amount, value, and country of origin of the imported products. As per the amendment of the Finance Act, 2002 dated March 30, 2022, the DGFT through the notification introduced newly created/deleted/merged/split ITC (HS) codes. With regard to the PLI (Production Linked Incentive) Scheme announced by the Ministry of Textiles for Textiles covering Man Made Fibre (MMF) and Technical Textiles as focus areas of growth under the Scheme, the DGFT had, among other things, notified total 32 New HSN Codes for Technical Textiles under Chapters 39, 54, 55, 56, 59, 60, 62, 63, and 68 of ITC(HS) 2022, Schedule 1 (Import Policy) through this notification. Based on the physical and chemical characteristics, technical textiles are materials that are created and produced for certain functional uses. In addition to comfort and aesthetics, these fabrics are made to serve certain purposes, such as enhancing performance, enhancing safety, and offering protection from harmful external elements including heat, cold, and radiation. Despite the fact that Technical Textiles have their own HS Codes, it has been observed that imports and exports have not been recorded under these codes, instead appearing to be recorded under other valid codes. According to the notification, members of Trade and Industry should immediately adopt appropriate HS Codes at the 8-digit level for such items if they ween that the current 32 HS Codes are too narrow to cover the Technical Textiles goods that they are importing or exporting.
Source: Tax Scan
• Reliance Industries Limited (RIL) will maintain the prices of PTA, MEG and MELT for the coming week. • However, RIL has increased the prices of PSF by ₹2 to ₹110 per kg for the current fortnight. • RIL reviews the price trends in China and crude oil fluctuations to fix the prices of polyester raw materials. • The Indian market follows RIL's pricing trend. Reliance Industries Limited (RIL), the largest player in India's polyester value chain, has decided to maintain prices of purified terephthalic acid (PTA), monoethylene glycol (MEG), and MELT for the upcoming week. However, the company has raised the prices of polyester staple fibre (PSF) by ₹2 to ₹110 per kg for the current fortnight. The prices of PTA and MELT were increased by the company for the week beginning on April 8, 2023, while MEG was kept stable. Market sources suggest that the prices of PTA remain at ₹89.70 per kg, MEG at ₹53 per kg, and MELT at ₹95.16 per kg. The pricing of polyester raw materials will come into effect from the coming Saturday. Recent fall in crude oil prices and price trends in China prompted the company to maintain the prices of raw material. RIL reviews the price trend in China and crude oil fluctuations to fix the prices of polyester raw materials. As RIL is the dominating player, the Indian market follows its price trend.
Source: Fibre 2 Fashion
The government should consider launching a 'PLI Plus' scheme with focus on development of new products, industrial designs and enhancing productivity with a view to boost domestic manufacturing, economic think tank GTRI said on Sunday. The government should consider launching a 'PLI Plus' scheme with focus on development of new products, industrial designs and enhancing productivity with a view to boost domestic manufacturing, economic think tank GTRI said on Sunday. A production-linked incentives scheme (PLI) is under implementation by the government with a budgetary outlay of about Rs 2 lakh crore for 14 sectors such as white goods, mobile, telecommunication and auto components. The Global Trade Research Initiative (GTRI) report said that creating sustainable and competitive manufacturing is imperative to increase the share of manufacturing in GDP to 25 per cent by 2030, up from 15 per cent at present. "This will require shifting focus to one step back. From quick manufacturing outcomes to R&D, reverse engineering, and deep work. "This can be done under the Make in India framework with the launch of eight PLI Plus initiatives. These initiatives will strengthen the foundation of Indian manufacturing and aspire to bring the expertise level at par with developed countries like Germany, the US, Japan etc," GTRI co-founder Ajay Srivastava said. Under the initiative, he called for focus on laying the foundation for new product development; enhancing productivity of entire product sectors; supporting industrial design, development and manufacturing to cut imports; and boost ease of doing business measures. For the initiative, he suggested the government use Rs 1 lakh crore from the existing funds. Creation of global quality basic science research set up; inviting more Suzuki, GE and Apple type of firms in india; developing end-to-end product ecosystems; supporting manufacturing of products made by small and medium-size firms; and localising production of fertilizer and plastics will help India strengthen foundation of its manufacturing and aspire to bring the expertise level at par with developed countries, it added. "India must develop expertise in basic sciences, chemistry, metals, electronics, etc. These require long-term and sustained investment and collaborations with institutions across the world. Most such expertise is available only with firms located in Germany, Japan, and the US," it said. India imported machinery of value USD 54 billion in 2022 and therefore India needs to reverse engineer these to enable local, high-quality manufacturing, it said, adding a beginning may be made by reverse-engineering products such as machinery for textiles sector, mining, and agriculture. "India imported fertilizers worth USD 17 billion and plastics products of value USD 27 billion in 2022. Technology for making these products is at least five decades old, and India has abundant raw materials. We must explore if most imports of fertilizer and plastics serve the interests of the trading lobby," the report said. Further, it suggested that the Ministry of MSME and the Department of Science and Technology devise an intensive program to identify highpotential existing manufacturers and handhold them to upgrade. "A beginning may be made with the following products. These are imported in large quantities," it said. The GTRI further said that most electronic products are made with lakhs of components and India must focus on developing this sector for sustainable advantage. Currently, India imports most components. "Our component strategy should concentrate on developing a component hub to facilitate quick imports, setting up manufacturing for low-end components, and allowing credit for duty-free imports to firms," it said, adding the government should look at setting up component hubs for prompt supply of imported components. Component hubs will be Bonded Cargo warehouses allowing vendors to import and store components without payment of duty. The hubs will trigger domestic electronic and IT hardware goods ecosystem development, the report said.
Source: Economic Times
Commerce and industry minister Piyush Goyal also said that the government is setting up an Environmental, social and governance (ESG) group- comprising industry and government officials- for the textiles sector, as it aims $100 billion exports and $250 billion value of production by 2030, and launched an e-commerce portal on handloom and handicraft products, which would be integrated with the Open Network for Digital Commerce (ONDC). Commerce and industry minister Piyush Goyal on Saturday said that international trade transactions would start in Rupee soon as several banks from different countries are opening special vostro accounts with Indian banks. The Reserve Bank of India has approved 60 requests to open Special Rupee Vostro Accounts of correspondent banks from 18 countries including the UK, Singapore, and New.
Source: Economic Times
As per the provisional figures, knitwear exports from Tirupur grew just 2.5% to Rs 34,350 crore in FY23, which is not only lower by the historical trend excepting the pandemic period, but was also lower than the country’s overall knitwear export growth of 3.76% in the year. The slowdown in its key markets like the US and European Union (EU) has hit knitwear exports from the Tirupur cluster, Asia’s largest textiles export hub, which accounts for more than half of India’s knitwear exports. Industry sources said the export markets continue to be dull, with few new orders, but expressed the hope that by June-July, the markets may return to normalcy, as the consumption season peaks. As per the provisional figures, knitwear exports from Tirupur grew just 2.5% to `34,350 crore in FY23, which is not only lower by the historical trend excepting the pandemic period, but was also lower than the country’s overall knitwear export growth of 3.76% in the year. India’s knitwear exports stood at `63,239 crore in FY23. According to K M Subramanian, president, Tirupur Exporters’ Association (TEA), exports from the hub have slowed since August, with negative growth all subsequent months except November. Despite that, we could surpass last year’s figures. Our major markets such as US and EU were in slowdown during those period.” The TEA president further said that the situation is gradually improving in the US and EU markets and the orders are coming in slowly. “By June or July, these markets will hopefully come to nomalcy allowing normal exports growth”, he said. For most of the part of last fiscal, the knitwear exporters in Tirupur had been facing problems such as power tariff hike, and dwindling export orders from the main markets, besides increased yarn prices. Russia-Ukraine war undermined purchasing power of the European clients resulting in reduced export orders from there while the US customers too placed lesser orders. In August 2022. Tirupur showed first signs of degrowth, with the exports decreasing by 14.6% to Rs 2,711 crore. There was sharper contractions of 24.4% in September, with exports of Rs 2,367 crore and Octcober (34.2%, Rs 2,164 crore). But things went to worse yet again, exports dwindled by 6.6% in December to Rs 3,079 crore, 8.2% to Rs 2,782 crore in January and 11.1% to Rs 2,790 crore in February and 22.6% to Rs 2,680 crore in March. The exporters under Tirupur Exporters’ Association (TEA) had been seeking a new technology upgradation fund (TUF) scheme (interest benefit on capex loans) for units, which have already made investments as well as those planning to make new investments. The exporters say continuous modernisation of machinery is need of the hour to fight the intense competition in the global export marketplace. The exporting units were under the anticipation that the new TUF scheme would come into effect from April 1, 2022 immediately after the expiry of the amended technology upgradation fund scheme (ATUFs) on March 31, 2022. Based on this expectation, the garment units including MSMEs started making investments in purchase of machinery and installing in their units. The exporters’ association had recently sought minimum Rs 10 crore as investment limit for industries that want to benefit under the second Production Linked Incentive (PLI) scheme for textiles. Tirupur cluster has 1,233 exports units and provides employment to 0.6 million people directly and 2,00,000 indirectly, 60% of them are women workers.
Source: Financial Express
• Russia has become India's top crude oil supplier, increasing imports from Russia while exports have not risen proportionally, leading to a larger trade deficit. R • India's garment exports to Russia dropped by more than 56 per cent to $29.848 million in 2022. • India's garment exports to Russia accounted for only 0.46 per cent of its total exports in 2022. Russia has become India's top crude oil supplier amid changing geopolitical dynamics following the Ukraine crisis. This has led to an increase in India's imports from Russia, but exports have not risen proportionally, resulting in a sharp increase in India's trade deficit with Russia. In terms of textile trade, India is a garment supplier for Russia. However, India's garment exports to Russia halved to $29.848 million in 2022, and its share in Russia's total garment imports is negligible, below one per cent. India exported garments worth $66.394 million to Russia in 2021, but the war with Ukraine disrupted trade and normal life, leading to a drop of more than 56 per cent in garment exports to just $29.848 million in 2022, according to Fibre2Fashion's market insight tool TexPro. The Russia-Ukraine war began in the second half of February 2022. Garment shipments to Russia were registered at $57.674 million in 2020, $75.326 million in 2019, and $76.571 million in 2018. India's garment exports to Russia were negligible compared to its total exports, accounting for just 0.46 per cent of India's total exports in 2022, as per TexPro. India's total garment exports reached $14.354 billion last year, with Russia remaining far below the list of top 10 markets for Indian garment shipments. India's garment supply to Russia also held minimal value compared to Russia's total garment imports, which ranged between $6-7 billion per year in recent years.
Source: Fibre 2 Fashion
• Weakening demand is the major concern across the global textile value chain since July 2022, due to a relatively high inventory built up during 2022. • Other concerns include inflation, high energy prices, and high raw material prices. • All regions suffer from weakening demand except for North and Central America, where inflation is a bigger concern. ‘Weakening demand’ is more than ever—and by far—the major concern in the global textile value chain since July 2022, as per the International Textile Manufacturers Federation (ITMF). Companies in all regions and across the value chain suffer from weakening demand. The main issue is not so much demand destruction at the consumer level that requires order cancellations but rather a relatively high inventory built up during 2022 that requires correction. For 68 per cent of the survey respondents, ‘weakening demand’ is their major concern for the next six months—up from 60 per cent last January. ‘Inflation’ at 46 per cent, ‘high energy prices’ at 32 per cent, and ‘high raw material prices’ at 30 per cent, were the next biggest concerns reported by participants. ‘Geopolitics’ keeps gaining in importance and is now worrisome for 27 per cent of respondents, ahead of ‘higher interest rates’ with 22 per cent, according to the 19th ITMF Global Textile Industry Survey (GTIS) conducted in March 2023. ‘Weakening demand’ was the main concern in all regions but in North and Central America where it was trumped by ‘inflation’. In all other regions ‘inflation’ is considered the number two concern. For companies in East Asia, ‘high energy prices’ and ‘high raw material prices’ also remain problematic. This is also true in South-East Asia, South Asia, and Africa. The weight of these concerns (i.e., high energy and raw material prices) has strongly dropped in the mind of respondents operating in Europe (including Turkiye) and the Americas. ‘High energy prices’ is still relatively concerning in Europe (including Turkiye) but a clear shift towards ‘geopolitics’ and ‘rising interest rates’ is clearly taking place. All segments suffer from weaking demand and are concerned that it won’t improve in the next six months. Textile machinery producers are also concerned by ‘inflation’, ‘high raw ER material costs’, and ‘geopolitics’. Fibre producers are strongly concerned about ‘high energy prices’ while spinners would rather focus on ‘inflation’, ‘rising interest rates’, and ‘geopolitics’. The concerns for weaver/knitters and chemical fibre producers are strongly skewed toward ‘inflation’ and ‘high energy prices’.
Source: Fibre 2 Fashion
Apex exporters’ body FIEO is taking a 50-member business delegation from the agri and food processing sector to Moscow and St. Petersburg to explore more trade opportunities as the Russian market holds a huge potential. Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said that the four-day visit to the sanction-hit country will begin from April 24. “We are pinning hopes to push our exports to Russia as it is a major market. The business delegation will explore export opportunities as that country holds huge potential,” Sahai said. During the visit, FIEO will sign an MoU (memorandum of understanding) with Russian business chambers for bilateral exchange of information and delegation on a regular basis. “We are aiming to take our exports to Russia to USD 5 billion this fiscal,” FIEO President A Sakthivel said. Last year, the commerce ministry had shared with exporters a list of hundreds of goods such as auto parts and textile that Russia has provided to India for imports. Russian buyers have enquired about a wide range of products from India. Russia has become a major oil supplier to India. India’s appetite for Russian oil swelled ever since it started trading on discount as the West shunned it to punish Moscow for its invasion of Ukraine. Exports to Russia stood at USD 2.8 billion during April-February 2022-23, while imports aggregated at USD 41.6 billion during the same period. Sakthivel said that to establish business tie-ups with the Russian companies, including large departmental stores in the agro and food processed sector, the organisation is mounting a delegation of 50 exporters to Russia. The delegation has a large number of meetings already tied up in Moscow and St. Petersburg with Russian importers and companies. “The Indian embassy in Russia is providing all support to the delegation. The visit is a step forward on business queries received from Russia in a wide range of food sectors, including tea, coffee, marine products, ready-to-eat food etc,” he said.
Source: Daily Excelsior
As the son of textile mill worker-parents born and raised in Tirupur, N Chandran was always fascinated by colours. As an athlete, he loved wearing multi-colour vests at sports events, turning out for his university. Chandran found his fate was knit closely with garments and colours; a nearly five-decade journey that started soon after his graduation in history, economics and political science. “I started my business in 1975-76 with a home lab – using household utensils and then hand-operated machines for dyeing clothes with focus on quality. My two brothers being in the textile sector helped. Also, I was one of the earliest to get into this trade from Tirupur. After trial and error for a couple of months, I started getting orders from foreign buyers for colour processing and dyeing as they liked the quality,” recalls Chandran, CMD, Eastman Exports Global Clothing (P) Ltd, a garment exporter with an annual turnover of around `2,000 crore. “From fabrics and colour processing, we added forward and backward integration in operations and even established factories in and around Chennai for woven garments. But constraints of getting labour in Chennai from the early 2000s forced us to focus on operations in Tirupur and on knitted garments,” he says. The company only supplies to the domestic market through overseas players who have a retail presence in India. Today, Eastman is not only a vertically integrated, end-to-end garment manufacturer and exporter, but also one of the largest knitwear producers in India. It can quickly create a wide variety of samples and products from basic inner garments to high-street t-shirts, coats and tops. It also produces environmental-friendly products from recycled polyester, cotton and organic cotton. It has a little over 50,000 spindle capacity to produce 11,700 tonnes of finest quality multi-count cotton grey yarn annually. Until 2005, according to Chandran, Indian garment exports were determined by the quota system. Now business is driven by products, quality and compliances – law of the land of both the buyer and seller as well as ethical processes and practices. “Fortunately, India is blessed with good engineers and technicians. Hence, the transparency level of what we claim is well authenticated. We ensure 100% transparency and traceability. Anyone can track and this has been a key differentiator for the global buyers and brands,” says Chandran. Having seen the ups and downs of the industry for close to five decades, Chandran is keen to talk about larger issues that define the Tirupur knitted garments industry and emerging opportunities, rather than the nitty gritty of his own business and company. “Tirupur is slowly graduating to a different level – having moved from traditional inner wear to fashion wear for the domestic market as well. There is no dearth of opportunities and Tirupur will keep growing in the years to come,” says Chandran. Tirupur’s garment industry doesn’t believe in comparing the ability of the locals or migrants, he says. The industry is engaging everyone, irrespective of where they are from. “At Eastman, we do not want to compromise on corporate governance, women empowerment and sustainability and the focus will be firmly on fashion and product development,” says Chandran, whose company rolls out 100 million garments per annum through a network of 30 factories. “Of the 15,000-18,000 workers that are part of Eastman, 70% are women. Hence, women empowerment is a key focus area. We have a separate division headed by a woman in the rank of senior vice-president and directly reporting to the board to take care of the wellbeing of workers, their grievances and personal issues,” says Chandran.
Source: Times of India
The sustainable fashion movement has been gaining momentum in recent years; as a result, the textile industry is transforming. Sustainable fashion is centered around creating products that have a minimal environmental impact and are socially responsible. It involves a shift away from the traditional linear model of fashion production, where products are created, used, and disposed of, towards a more circular model where materials are kept in use for as long as possible. This shift has spurred changes in the textile industry, from the use of sustainable materials to responsible manufacturing practices and greater supply chain transparency. Innovative approaches, such as madeto-order collections, upcycling or recycling garments, and the use of surplus and deadstock fabrics, are reducing waste as well as the carbon footprint, while also promoting ethical practices and improved working conditions. As consumers become more aware of the impact of their fashion choices, the demand for sustainable options is growing, which is driving the growth of sustainable fashion. Ultimately, sustainable fashion seeks to transform our cultural understanding of fashion, moving away from fast, disposable trends towards a more mindful, intentional, and sustainable approach to style. Here are some ways in which sustainable fashion is changing the textile industry: One of the most notable changes in the textile industry is the growing use of sustainable materials, such as organic cotton, hemp, bamboo, and recycled materials. This shift is due to the conventional textile production processes that involve large amounts of water, energy, and chemicals, which have an enormous impact on the environment. Moreover, the dyeing and finishing stages of textile production employ a range of chemicals, such as synthetic dyes and heavy metals, which are hazardous to human health and as well as the environment. However, sustainable textile production practices, such as the use of organic cotton, hemp, bamboo, and recycled materials, have become increasingly popular in recent years. These materials require fewer resources to process them and are procured responsibly, resulting in a smaller ecological footprint. This trend toward the use of eco-friendly materials that consume fewer resources and are sourced responsibly is a positive step forward for reducing the textile industry's environmental impact. R Another promising approach is the use of solar energy in textile production to generate electricity. Many textile factories have installed solar panels on their rooftops to generate electricity and reduce their reliance on fossil fuels. This not only helps to reduce greenhouse gas emissions but also lowers their energy bills, which can be reinvested in other sustainable practices. Solar dyeing is also becoming a popular method in the textile industry, which uses the sun's energy to create heat for the dyeing process, reducing the need for traditional energy sources like electricity or natural gas. Solar thermal collectors are also being used to generate hot water for the dyeing and finishing processes, further reducing energy consumption. Furthermore, the sustainable fashion movement is placing increasing importance on responsible manufacturing practices. This includes a focus on ethical practices, improved working conditions, and supply chain transparency. As a result, brands are now being held accountable for the social and environmental impact of their products, and consumers are demanding sustainable options, driving the growth of sustainable fashion. The desire for transparency has prompted greater openness in the supply chain, a crucial element of sustainable fashion. By providing transparency in the industry, sustainable fashion is meeting this demand and promoting more sustainable practices throughout the textile industry. Traceability and Sustainability: The Nexus in the Textile Value Chain In the pursuit of sustainability in fashion, traceability in the textile value chain has emerged as a crucial aspect of responsible textile production. Essentially, it entails the ability to meticulously track the entire journey of textiles and garments, starting from the raw material stage all the way to the final product stage. Fashion brands that embrace traceability solutions are able to gain insights about the origin of their materials, closely monitor their production processes, and track the transportation and delivery of their products. This valuable information can then be used to pinpoint areas of inefficiency and waste and to make data-driven decisions that promote sustainability. 1. Blockchain Technology: Blockchain can be used to create a decentralized, tamper-proof ledger that records every step in the textile value chain. This can provide a transparent and immutable record of each product’s journey, from raw material to finished goods. 2. Barcodes and RFID Tagging: Barcodes or RFID tags can be attached to textiles at different stages of the supply chain to track their movement and enable real-time monitoring of the supply chain. It is also used in production facilities to avoid the mixing of products. This can help brands identify the origin of materials, monitor production processes, and track the transportation and delivery of their products. RFID tagging can also help to prevent counterfeiting and improve inventory management. 3. Sustainability Standards and Certifications: Initiatives like the Global Organic Textile Standard (GOTS) and the Better Cotton Initiative (BCI) provide a set of standards and certifications that enable brands and retailers to ensure that their products are made using sustainable and ethical practices. By adhering to these standards, brands can increase transparency in their supply chains and demonstrate their commitment to sustainability. 4. Tracing Tools and Software: Several software tools, such as TextileGenesis and FibreTrace, use blockchain and other technologies to enable traceability and transparency in the textile value chain. These tools can help to trace the origin of materials, monitor production processes, and track the transportation and delivery of products. Tracing tools can also help to reduce waste by enabling brands to take back and recycle their products at the end of their life. 5. Collaboration and Partnerships: Collaboration between stakeholders in the textile value chain, including producers, brands, and retailers, can help to build trust and promote transparency, which can in turn enable better traceability. Initiatives such as the Sustainable Apparel Coalition (SAC), Textile Exchange India, Apparel Export Promotion Council (AEPC), Sustainable Fashion Forum India, Better Cotton Initiative, Indian Texpreneurs Federation (ITF), and more bring together stakeholders from across the textile value chain to work towards more sustainable and ethical practices. Key Takeaways The outlook for sustainable fashion appears promising, as a growing number of consumers are increasingly becoming attuned to the adverse effects of fast fashion on the environment and society. Moreover, the textile industry is gradually acknowledging the significance of sustainability and taking steps to decrease its carbon footprint while embracing circularity. In the coming years, it is highly plausible that sustainable fashion will gain more traction and go mainstream, with a greater number of brands adopting sustainable materials and practices. This, in turn, will further alter consumer behavior, with individuals becoming more aware of the ecological impact of their buying decisions and elevating sustainability as a priority. The adoption of sustainable methods in the textile industry will create a virtuous cycle, inspiring other sectors to follow suit, which will further facilitate a more sustainable future, by promoting the reduction of waste and emissions while upholding circularity. Yet, despite the encouraging developments, a considerable amount of work remains to be done, and the industry must continue to strive towards innovation and push the boundaries of what is feasible. For this to be achieved, collaboration among industry players, policymakers, and consumers will be critical in propelling progress and realizing a truly sustainable future for fashion.
Source: Indian Retailer
National Assembly (NA) Chairman Vuong Dinh Hue’s ongoing official visit to Argentina is expected to open up more opportunities for bilateral trade cooperation in the coming time. National Assembly (NA) Chairman Vuong Dinh Hue’s ongoing official visit to Argentina is expected to open up more opportunities for bilateral trade cooperation in the coming time. Over the past 50 years since Vietnam and Argentina officially established diplomatic relations in October 1973, the friendship and cooperation between the two countries have been continuously consolidated and developed fruitfully. Especially, since the establishment of the comprehensive partnership in 2010, the bilateral relationship has made impressive progress, especially in economy and trade. According to the European-American Market Department under the Ministry of Industry and Trade, Vietnam is the sixth-largest trading partner and the fifth-largest importer of Argentina in the world. It is also a key Southeast Asian partner in the Latin American nation’s South-South cooperation. Meanwhile, Argentina remains Vietnam's thirdlargest trading partner in Latin America. Bilateral trade has been constantly increasing, from 316 million USD in 2007 to over 4.8 billion USD in 2022. Of the total, Vietnam’s exports were valued at 851 million USD, up 2.4% year-on-year, while its imports were 4.03 billion USD, up 9.7% year-on-year. Vietnam has mainly exported phones of all kinds and components, computers, electronic products and components, footwear, and machinery to Argentina, while importing maize, animal feed and raw materials, cotton of all kinds, and soybean from the Latin American country. Vietnamese Minister of Industry and Trade Nguyen Hong Dien said that the bilateral trade turnover remains modest compared to existing potential. He showed his hope that the two sides will continue existing efforts to increase trade exchanges, diversify imports and exports, and gradually equilibrate the trade balance. According to experts, with a population of more than 46 million, Argentina is a large potential market to which Vietnamese businesses can export advantageous products such as footwear, garments and textiles, furniture and handicrafts. Meanwhile, with a population of nearly 100 million and a gradual purchasing power increase, Vietnam is also a potential market for Argentinean exporters. At a meeting with representatives from the Vietnamese Ministry of Industry and Trade, Governor of Entre Rios province Gustavo Bordet emphasised the importance of Vietnam in trade relations of Argentina in general and the three provinces of Cordoba, Entre Rios and Santa Fe in particular. The governor said that the two sides still have huge potential to further promote cooperation in the fields of trade, investment and agriculture. He agreed with the Vietnamese side’s proposal on providing support for the two countries’ businesses in trade promotion and market research. In order to promote exports to the Argentinean market, the European and American Market Department proposed enterprises actively seek information about the market and update Argentina's economic, trade and investment policies through government agencies and units such as the Ministry of Industry and Trade, the Vietnamese Embassy in Argentinean, the Argentinean Embassy in Vietnam and trade promotion centres. Businesses should step up promotion activities, increase the quality of products, develop products in accordance with the market’s demand and taste, and seek ways to reduce transportation and logistics costs. Minister Dien suggested the Argentinean side create more favourable conditions for Vietnamese exporters to gain access to the Argentinean market, especially for such products as agricultural products, garments and textiles, wood products and handicrafts. Vietnam and Argentina are exploring opportunities to expand their bilateral trade, towards lifting two-way trade to 10 billion USD by 2025.
Source: Vietnam Plus
Implications for Morocco and the necessary policy adjustments. The EU’s planned Carbon Border Adjustment Mechanism (CBAM), which was agreed upon by the EU in December 2022, presents one of the components of a complex framework of policies and measures aimed at achieving the European goal of carbonneutrality by 2050. The proposed EU policy is an attempt to mitigate carbon leakage by imposing a carbon tax on imports of goods from countries with less stringent climate policies than the EU. By taxing imported goods based on their embedded carbon emissions, the measure is thus supposed to level the playing field for EU firms and discourage non-EU producers from exporting, at a “competitive” advantage, carbon-intensive goods to the EU. While many details concerning CBAM are still being discussed, the implementation is envisaged in two phases, starting in October 2023 with a pilot phase in which a simplified CBAM would require only reporting obligations, followed by a full implementation from 2026 onwards, when the requirement to purchase certificates for carbon emissions will kick in. Initially, CBAM will apply to imports of iron and steel, aluminium, electricity, certain fertilisers, cement, and hydrogen. Decisions on a possible extension of the mechanism to other products, such as organic chemicals and polymers, are outstanding and expected to be taken before full implementation kicks in in 2026. This paper is based on discussions during a workshop jointly organized by the Regional Programme Energy Security and Climate Change Middle East and North Africa of the Konrad-Adenauer-Stiftung (KAS-REMENA) and the Istiqlal Group in the Second Chamber of the Moroccan Parliament on 7 February 2023. Expected impacts of the CBAM on Morocco Experts agree that the implementation of CBAM will have wide-ranging implications for Morocco's economy. The EU is Morocco's largest trading partner, accounting for over half of its total trade and 65 per cent of its exports. Morocco exports mainly agricultural products, cars, textiles, aeronautics parts, fisheries, and phosphates to the EU. Expected effects of CBAM include potentially negative impacts on the competitiveness and volume of Moroccan exports to the EU, particularly in the sectors directly covered by CBAM (especially fertilizers at an initial stage). At the same time, CBAM could also offer an incentive for Morocco to accelerate its energy and environmental transition by encouraging investment in renewable energy, supporting the transition to use renewables-based energy in industry, and reducing greenhouse gas emissions. Among the challenges posed to the Moroccan economy by the implementation of CBAM is the increase in costs of exporting goods to the EU. Shifting to renewables in phosphates and industry will require investments that will make production cost soar and therefore reduce Moroccan exports’ competitiveness. The government could deflect some of those costs through direct support for exported goods. CBAM is likely to affect several key sectors in Morocco. The phosphate industry, especially the fertilizer and the chemicals subsidiary industries – a major source of exports for Morocco – is expected to be one of the most impacted due to its current high carbon emissions. The current ambitious plan by OCP (“Office chérifien des phosphates”, the Moroccan public company that oversees phosphates production, transformation and exports) to invest 13 billion USD to achieve 100 per cent carbon neutrality by 2040 will certainly make phosphate derivative products more competitive in the long run, but in the meantime, Morocco's exports to the EU are likely to be negatively impacted, leading to a negative impact on its balance of payments and overall economic output. While direct effects will be felt by sectors that are heavily reliant on carbon-intensive exports, such as phosphates and cement, indirect effects are to be expected for industries that are linked to these sectors, such as transportation and logistics, due to changes in prices and demand. The extent of the impact will depend on a range of factors, including the carbon intensity of the products being exported, the level of competition in the market, the ability of companies to adapt and innovate in response to the new regulatory environment and the willingness of the Government of Morocco to issue policies to support industry investments in efforts to transition to low carbon energy sources. The implementation of CBAM is thus also expected to lead to increased competition among Moroccan exporters to access the European market based on their ability to reduce their products’ carbon intensity. Besides the challenges it poses, CBAM also presents opportunities for Morocco. Experts hail CBAM as an opportunity to use as an incentive to accelerate the transition towards a low-carbon economy. Given that the policy would make high-carbon products relatively costlier, it is set to induce an increase in demand for low-carbon products. The policy could therefore create opportunities for Morocco to develop its own lowcarbon industries and reduce emissions in hard-to-abate sectors, by scaling up the use of renewable energies and energy-efficient technologies. Plans to transition to a zero-carbon production model, such as the OCP 2023-2027 Investment Program and its 2040 Zero Carbon Vision, could allow the industry to maintain its competitive edge in the wake of applying CBAM. Energy transition plans require, however, significant investment and innovation, as well as the development of new certification and monitoring systems to ensure compliance with EU regulations. Morocco has already invested heavily in the development of its renewable energy capacities and the development of the necessary political, legislative and economic frameworks. It thus boasts a solid base and an ambitious framework to build upon for an effective transition to a low-carbon economy; it is also well-positioned to become an exporter of renewable energy and green hydrogen to the EU and other markets, which will give the North African country an advantage over other exporters to the EU. Path dependencies in the current economic structures and relatively limited resources pose, however, a challenge in pushing this transition forward in the necessary timeframe. To succeed and capitalize on its advantages, Moroccan policy-makers and businesses need to set up bold investments in energy transition infrastructure and technologies, as well as develop new partnerships and collaborations with EU companies and governments. Overall, the impacts of CBAM on the Moroccan economy are likely to be complex and multifaceted, with both challenges and opportunities arising as a result. Response options for Morocco In light of the potential impacts of CBAM on Morocco's economy, several options for responding to the new mechanism have been suggested by the experts and speakers. One possible response is to adopt more stringent climate policies to minimize the effects of CBAM on Moroccan exporters. The idea consists of increasing investments in renewable energy and energy-efficient technologies to reduce embedded carbon emissions in export products. Additionally, it is worth looking at the option of implementing one’s proper carbon pricing mechanisms, using rigorous monitoring and objective tracking, easily recognized by EU partners as equivalent, which could help in preventing additional taxes through CBAM. Morocco could also communicate concerns over specific aspects of CBAM to the EU and suggest adaptations that take into consideration the challenges for countries of the Global South. Experts emphasize the concept of Common But Differentiated Responsibility (CBDR), an important aspect in this context which should open the possibility of providing financial support for developing countries to invest in adapting to CBAM. Countries like Morocco could also negotiate an exemption or a reduced rate for Moroccan exports to the EU or at least a gradual adaptation that would allow for more time than what is envisaged in the CBAM – as long as such adaptations do not threaten the WTO compatibility of CBAM. Diplomatic efforts should be deployed to convince the EU to recognize Morocco's advanced efforts to reduce its carbon emissions and to support the country's transition towards a low-carbon economy. Moreover, Morocco could also negotiate bilateral agreements with the EU to promote trade in low-carbon products and services. On the other hand, Morocco should advance in diversifying its export markets beyond the EU through increasing exports to other regions, such as Africa, the Americas, the Middle East, and Asia. A diversification policy would reduce Morocco's dependence on the EU market and would also provide opportunities for the country to promote its low-carbon products and services to new markets. Such a response should however not come at the cost of concerted efforts towards reducing the carbon intensity of Moroccan industries. Concrete recommendations for the adaptation to CBAM Beyond general guidelines on how to respond to CBAM – and given the reality of CBAM coming into initial effect in October 2023 – this paper also aims to provide concrete policy recommendations for Morocco on how to prepare for and adapt to CBAM. Given that CBAM needs to be viewed as an element of a larger package aiming at decarbonisation, Moroccan policymakers should re-evaluate existing decarbonisation strategies, particularly in sectors affected by CBAM, but also beyond. Existing strategies should be updated and recalibrated with a view towards new challenges posed by CBAM and towards an overall acceleration of decarbonisation efforts. Develop and implement targeted policies to support sectors that are likely to be affected by CBAM: Policymakers in Morocco should consider the potential impact of CBAM on industries such as cement, steel, and fertilizer production, which will be impacted directly. While the phosphates-related industries will go through a “greening” process, policymakers should use the same model to develop and implement targeted policies to support the other sectors, including measures to improve energy efficiency and reduce greenhouse gas emissions through the use of renewable sources of energy. Necessary certification and monitoring systems should be put in place and supported as well. Draft a roadmap for the decarbonisation of crucial sectors: Policymakers should develop a comprehensive roadmap for the decarbonisation of critical sectors, even if not impacted directly by CBAM, such as energy, agriculture, transport, extractive and other industries. The roadmap should include clear targets, timelines, and specific policy measures to achieve these goals. Strengthen the regulatory framework to support the decarbonisation of key sectors: In order to enable an accelerated decarbonisation process, policymakers should revise and strengthen the regulatory framework, in order to set incentives and provide legal certainty and visibility for companies. Aspects such as promoting the development of renewable energy, improving energy efficiency, and implementing sustainable land use practices should be considered. Promote capacity-building efforts to support the transition to a low-carbon economy: Policymakers should promote capacity-building efforts to support the transition to a lowcarbon economy. Training and education for workers in key sectors, promoting research and development of new technologies and their adaptation to industries as well as enhancing certification, monitoring, and reporting systems to track progress are some of the initiatives that could be taken Foster innovative approaches to decarbonisation: Besides more traditional measures, Moroccan policymakers should also explore innovative ideas for decarbonisation, such as cooperation between industries and farmers to sequester CO2 and sell carbon credits, as well as create the necessary regulatory frameworks for such innovative collaborations. Leverage the renewable energy sector: Morocco has a strong position in the renewable energy sector, which can be leveraged to boost the country's exports by reducing the carbon footprint of industrial production. Policymakers should thus continue to incentivize the development of renewable energy – both with a view towards domestic use and the aim of transforming Morocco from an importer of fossil fuels to an exporter of renewable energy. They should also take the necessary steps (legislative, regulatory and technical) to allow all businesses to use renewable energy. Invest in energy efficiency: The Moroccan government should enhance its efforts to help businesses improve their energy efficiency. Reducing carbon footprints while remaining competitive (the business case for sustainability), and at the same time contributing to Morocco’s broader ambitions in energy efficiency and sustainable energy supply is a promising approach in this sense. Strengthen partnerships with the EU to accelerate decarbonisation efforts: Policymakers in Morocco should engage with their EU counterparts to strengthen and deepen partnerships supporting the decarbonisation of the economy. The engagement could include sharing knowledge and best practices, developing joint projects and initiatives, as well as financial support for energy efficiency measures. Another area, in which financial support from the EU could help Morocco, is the renovation of its energy infrastructure to minimize energy losses and to adapt the networks to renewable-energy-based electricity. Utilise CBAM as opportunity for positive political communication around decarbonisation: A holistic decarbonisation effort in Morocco requires the buy-in of all necessary stakeholders. This is why policymakers in their communication around CBAM and decarbonisation should focus on stressing the business potential presented by CBAM and how this can help the Moroccan economy to accelerate its low-carbon transition. The business case for decarbonisation should be supported by solid economic arguments. From a broader point of view, adapting to CBMA can thus be seen as supporting the country’s own climate ambitions and international reputation as well as the competiveness of its economy. Given these potential advantages, advances in decarbonisation should be portrayed as genuinely being in the interest of Morocco, for it to remain a strong economic and political actor on the global stage.
Source: Morocco World News
Garment workers in parts of Asia are earning as little as $75 a month while being subjected to inhumane working conditions, as experts call on Australian fashion brands to intervene. The cost of living crisis has pushed many factory workers further below the poverty line and critics say they are being forced to work in unsafe and exploitative environments. More than 80 per cent of Australian clothing is produced in Bangladesh, China, Vietnam and India and human rights group Oxfam Australia wants fashion brands to ensure their clothes are made in fair conditions. A recent Oxfam survey found demand for ethical fashion is on the rise with about nine in 10 Australians rating the safety of garment workers as important when buying clothes. Nearly one-third of buyers consider the human rights of garment workers in their clothing purchasing decisions and this is more prevalent among Gen Z, Millennials, and Gen X. "Younger generations are much more conscious and aware of the impact of unethical business practices," Oxfam Australia's economic justice lead Nayeem Emran told AAP. He added that brands could help by "paying workers a living wage, providing safe working conditions, signing the International Accord for Health and Safety in the Textile and Garment Industry, and respecting workers' rights to unionise and bargain collectively". Oxfam Australia recently met with garment workers in Bangladesh ahead of the 10th anniversary of the Rana Plaza tragedy on Monday. Mr Emran said workers there were stuck in survival mode and mostly concerned about keeping their jobs, particularly since wages had not increased in the last five years. He called for urgent industry reform to prevent a repeat of the 2013 accident in Dhaka, Bangladesh, where more than 1000 people were killed and at least 2500 injured when an eight-story garment factory building collapsed. The incident marked the deadliest garment factory disaster in history and was reportedly caused by administrative failures. Survivor Nilufa Yesmin suffered a spinal injury during the accident and has not been able to work since. "No garment factory takes me, they say I am injured from Rana Plaza and I cannot work," Ms Yesmin said. "Those who buy clothes from Bangladesh and wear them, I want to tell them that, the workers are not paid equally, compared to the work. But workers have the right to get a fair wage from owners and should never be harassed. And they should get a fair wage." Mr Emran said very little had improved for garment workers in the ten years since the disaster. "Ten years after the Rana Plaza tragedy, though progress had been made though the International Accord for Health and Safety in the Textile and Garment Industry, it is deeply disappointing to see brands like Best & Less refusing to sign. Equally disappointing is the lack of progression being made in improving the wages of garment workers," he said. A spokeswoman for Best & Less said the retailer takes workplace health and safety seriously. "Best&Less undertakes comprehensive factory assessments and audits in every country we work with," she said. "Whilst we appreciate the role that the Accord plays in Bangladesh, the Best&Less sourcing code extends beyond these parameters both in terms of our requirements and the countries it applies to."
The recent statement of a US trade official thumbing down the prospect of a free-trade agreement (FTA) between Washington and Manila has dampened the optimism of a major group of local exporters, losing what would have been a significant boon to their business. “The statement of the US government not being keen on the granting of the FTA and GSP renewal is dampening the group’s optimism,” Foreign Buyers Association of the Philippines (Fobap) Robert Young said in an email sent to the Inquirer. To recall, US Trade Representative Ambassador Katherine Tai had told local press earlier this week that the United States is currently not considering traditional FTAs as the “appropriate” framework to address trade challenges and opportunities of today. PH looks to other venues to deepen US trade Young, whose trade group is composed of buyers and exporters of apparel and hard goods such as furniture and handicrafts, said that the United States remained their biggest export market to date. Philippine garments and textile industry exports are valued at about $1.5 billion yearly, according to Young, with key export markets being the United States and countries in the European Union. The sector is expected to grow at a modest 10 percent this year, with the relocation of some garment producers in China to other Asian countries, which include the Philippines, seen as driving the growth. With a US-Philippines FTA now highly unlikely, local export groups will miss out on the possibility of enjoying tariff reductions and wider market access, staple arrangements often seen in such bilateral trade pacts. “However, regarding the GSP, we are still hoping that with the priority assistance and moral suasion of our Philippine government trade officials, it will be renewed by US Congress in due time,” Young said further. The Fobap official said that even American businesses were looking forward to its renewal, citing a report from the Washington-based East West Center that US companies importing from the Philippines paid $120 million in extra tariffs under the GSP framework that expired in December 2020.
Source: Daily Times
In a paper, the American Circular Textiles group identifies the shortcomings in circular fashion and suggests policy fixes. The paper emphasises the need for increasing investment in infrastructure and technologies to enable circular fashion practises while concentrating on the local market. It also recommends the adoption of regulations that promote circularity, like increased producer accountability and tax breaks for environmentally friendly practises. The top writers in the area provide market coverage and industry commentary, as well as analysis, executive interviews, and management briefings, all of which are exclusively available on Just Style. Memberships for businesses and groups of users are also offered. According to the paper, US legislation is required to promote the development of circular fashion, which entails creating, consuming, and disposing of clothing in a closed loop to reduce waste and lessen its negative environmental effects. Globally, circular fashion is gaining traction as companies and retailers implement more circular strategies to cut their carbon footprint and achieve sustainability targets. The US, according to the report, lags behind other nations in this regard because there aren’t enough policy frameworks and incentives to promote circular fashion. Lack of infrastructure for textile recycling, which is necessary for closing the loop in fashion production, is one of the major gaps in the report’s analysis. The research urges the US government to fund textile recycling facilities and offer rewards to companies that incorporate recovered materials into their goods. The necessity for standardised branding and certification procedures for circular fashion products is another need that the research draws attention to. This will encourage firms to use circular practises and assist customers in identifying and selecting sustainable products. The US government should establish these mechanisms in collaboration with industry players, the research advises. In order to ensure ethical and sustainable practises, the research also asks for enhanced openness and traceability in fashion supply chains. According to the research, the US government should mandate that companies reveal information about their supply chains and offer financial incentives to companies that use transparent and traceable business practises. The paper highlights the importance of US legislation for promoting the expansion of circular fashion and urges decision-makers to collaborate with industry stakeholders to create frameworks and incentives. The US can benefit from the economic, environmental, and social advantages of circular fashion by closing these gaps.
Source: Apparel Resources
