High Tension (HT) electricity consumers in the textile industry have appealed to Chief Minister M.K. Stalin to issue directions to the Tamil Nadu Electricity Regulatory Commission (TNERC) so that it permits collection of 20% of billable demand or the recorded demand as the monthly Maximum Demand (MD) charges. In separate memorada submitted to Mr. Stalin, the Southern India Mills’ Association and the Tamil Nadu Electricity Consumers’ Association, said the Chief Minister can invoke Section 108 of the Electricity Act, to ask the HT consumers to pay only to the extent of 20% of their sanctioned demand or up to the recorded demand alone, instead of claiming demand charges at 90% level.
Source: Financial Express
International purchasers of Indian textiles for clothing and home goods need adherence to environmental, social, and governance (ESG) framework. Tamil Nadu’s clusters of textile and apparel producers are preparing to meet these demands. “Individual brands and buyers are asking for specific compliances such as use of recycled cotton, green production facilities, waste water recycling, etc. As of now, almost all brands want to have a segment of their products under the ESG compliance,” says K.M. Subramanian, president of Tiruppur Exporters’ Association. These needs can currently be satisfied by Tiruppur’s larger clothing producers. Those who lack the required infrastructure will need to invest in order to receive orders. Executive Director of Cotton Textiles Export Promotion Council (Texprocil), Siddhartha Rajagopal, claims that individual buyers collaborate with their suppliers to achieve sustainable objectives. These are now being connected by several nations to their trade policies. To accommodate these needs, Indian suppliers will have to charge more. According to him, the Council has started an initiative to track cotton, and several textile companies have joined. Confederation of Indian Textile Industry Secretary General Chandrima Chatterjee stated that the organisation is seeking partnerships with international organisations on two fronts: compliance/reporting the compliance and green funding. The Association is aiming to establish partnerships with international organisations so that its member units can receive professional advice and develop the necessary skills to comply with the ESG standards. The Association recently hosted a workshop on sustainable sourcing and ESG in cooperation with Innovation Centre Denmark, the Confederation of Danish Industries India office, and the lifestyle and design cluster Denmark.
Source: Apparel Resources
• The UK and the US state of Colorado are set to further strengthen their economic ties with an MoU. • This initiative, announced by Minister Nigel Huddleston MP and Governor Jared Polis, aims to increase transatlantic trade and investment opportunities, particularly for SMEs, by removing market access barriers and promoting shared policy goals. Minister of state at the department for business and trade, Nigel Huddleston MP, and the governor of Colorado, Jared Polis, have announced the intent to pursue a memorandum of understanding (MoU) to further strengthen trade and economic development ties between the United Kingdom and the US state of Colorado. The MoU will aim to increase transatlantic trade and investment opportunities for UK and Colorado companies across a variety of sectors, with a focus on bolstering small and medium-sized enterprise (SME) access to both markets; eliminating market access barriers; and advancing shared policy goals, the UK’s department for business and trade said in a media release. The UK and Colorado already have a strong economic relationship, collaborating on areas of shared importance such as low carbon growth, future technologies, agri-tech and sustainability across a number of sectors. The MoU will aim to build upon and strengthen this existing cooperation through a more formalised economic partnership. Minister Huddleston and governor Polis expect the MoU to boost trade and investment in one another’s economies, for the benefit of all parts of the UK and Colorado.
Source: Fibre 2 Fashion
The project will be finished by 2024, she added. Union Minister of State for Railways and Textiles Darshana Jardosh on Thursday said that while Surat railway station is set to become the nation’s first multi-modal station, Udhna station will be developed like an airport terminal with all facilities. After visiting both the railway stations, the minister told media persons: “Surat station will be the country’s first multi-modal railway station, which will connect to Railways, GSRTC, city bus terminal station and the Metro. The new building of Surat station will also give a boost to economic activity and become a centre of business.” On Udhna station, Jardosh said, “It will be developed like an airport terminal at a cost of Rs 200 crore. An elevated concourse will be built near platform 1. Once passengers enter the station, they will directly reach the concourse, which will lead them to the platforms. The concourse will comprise escalator, lift and food court, among others.” The project will be finished by 2024, she added.
Source: Indian Express
The NTC mills have been closed since March 2020. Despite a court direction to pay full salary to these workers, only half wage was being paid, and even that was stopped for the last six months, Mumbai BJP president Shelar said. Mumbai BJP president Ashish Shelar Thursday interacted with Union Textiles Minister Piyush Goyal through video conferencing and urged him to fulfil the demands of the National Textile Corporation (NTC) mill workers, including the payment of their salary arrears. Goyal assured Shelar that the Centre would address the problems of the mill workers immediately. The NTC mills have been closed since March 2020. Despite a court direction to pay full salary to these workers, only half wage was being paid, and even that was stopped for the last six months, Shelar said. As the mill workers were contemplating an agitation, to avoid a stand-off between them and the government, Shelar took the initiative. Earlier, to ensure the redevelopment of 11 chawls on nine mill lands of the NTC in Mumbai, the BJP leader had taken a similar initiative and contacted the Union Ministry of Textiles. He had called upon the union minister and submitted a proposal. Shelar expressed hope that the issue of unpaid wages to NTC Mill workers would be resolved at the earliest.
Source: Indian Express
Fashion trends, product design, innovative packaging, high quality of goods and services and high exports to determine India’s success story: Sh. Goyal
Union Minister of Textiles, Commerce & Industry, Consumer Affairs and Food and Public Distribution, Shri Piyush Goyal said that fashion trends, product design, innovative packaging, high quality of goods and services and high exports are going to determine India’s success story in the future. He said this while chairing the ‘National Workshop on Convergence of Five Institutes’ held in New Delhi today. The unique initiative to bring about convergence of the five institutes under the Ministry of Textiles and Commerce and Industry was initiated in 2022. The collaboration between five Institutes namely, Indian Institute of Packaging (IPP), National Institute of Fashion Technology (NIFT), National Institute of Design (NID), Footwear Design and Development (FDDI) and Indian Institute of Foreign Trade (IIFT), has the ability to build a more dynamic and integrated national design and business education ecosystem that benefits students, industries, and society as a whole. The convergence will lead to integration of knowledge, techniques, and expertise from multiple fields will facilitate transdisciplinary integration among different unique institutions in tune with the objectives of the National Education Policy 2020. Shri Piyush Goyal said that India’s transformational journey since 2014 under the leadership of the Prime Minister Shri Narendra Modi is now recognised globally, and drew attention to Morgan Stanley research report which also recognizes how India has emerged as a key driver for Asian and global growth. The Minister noted the recently released high GDP growth estimates for FY 2023-24 and attributed it to the visionary guidance of the Prime Minister. Shri Goyal said that these high estimates make every Indian proud as it’s a recognition of the efforts made by the Government over the last 9 years across the world. Shri Piyush Goyal appreciated the presentations given in the workshop by the participants and urged the concerned Ministries to work towards implementation of the ideas in the presentation within allocated timelines. He said that the ideas deliberated upon in the workshop must be given proper shape and implemented for effective utilisation of such workshops. The Minister said that the National Education Policy 2020 aims to change the mindset pertaining to education by changing the curriculum and making it more inclusive and dynamic. He said that the Policy encourages critical thinking amongst the students to help them in their career. He said that the convergence initiative of the five institutes under the Ministry of Textiles and Commerce and Industry will not only strengthen the institutes but also the Industry academia partnership. He said that this will result in the institutes’ success story being determined by minimal strict government interference as self sufficiency is the best module for success. Shri Goyal said that higher intake must be explored in these institutions as there is a huge demand for designers, fashion specialists, etc. He said that the institutes must work towards developing skills related to finance, entrepreneurship, personality development, ability to face challenges in life, etc. amongst their students. The Minister also suggested that credit systems can be developed amongst these institutions to provide more flexibility for students to move from one institution to another and offer dual degree courses. Shri Piyush Goyal highlighted the role played by the alumni of these institutions with respect to donation, faculty, mentorship, etc. He stressed upon the need to focus on better placements from these institutes. He also suggested enhanced engagement with the industry for better overall development of the institutes and also offering curriculum which can help the students in the workplaces. A national workshop was organised by NIFT at New Delhi on 31st May and 1st June 2023. Academia, alumni and industry were invited by each of the institutes to deliberate through joint presentations followed by breakout sessions to go into the details of functionality of common ideas. The first day of the workshop was held at NIFT Campus in New Delhi and Union Minister of Textiles, Commerce & Industry, Consumer Affairs and Food & Public Distribution, Shri Piyush Goyal chaired the session on the second day of the workshop on 1st June 2023 at Vanijya Bhawan, New Delhi. The session was attended by the senior officials from the Ministry of Textiles and Ministry of Commerce and Industry. This initiative of convergence was to discuss and ponder upon common issues of these educational institutes such as placements, admissions, policies for students’ welfare or ways to incentivize faculty and administration. The idea was to brainstorm and learn from each other’s best practices and finding innovative ways to share infrastructure, faculty and international linkages. Alumni and industry representatives were part of the exercise. The objective is to encourage convergence between the institutes in order to foster an industry-academia interface and build a global professional network through engagement with the alumni of these institutes. The initiative of convergence can also be looked upon as the first step towards building synergies, asserting India’s tremendous brain power and project our identity not just in terms of our traditional culture but also in terms of the tremendous progress we have made in terms of modernity in our professional education, competing with the best in the world, and training professionals in a multidisciplinary context. These five institutes are specialized institutions and hold a unique place in professional education in the country. Some are known for design and some for their state of the art technology, however, each institute has a specific product/object orientation. The benefits due to convergence are Global competency, Knowledge sharing, Enhancing selfefficiency, Workforce development and Optimum usage of resources. The five Institutes have held a series of online and offline meetings. Deliberations and work have been done to pave the path to achieve the following objectives: Convergence within Institutes, Student Promotional Schemes, Admission Process and Growth in student enrolment, Creating a Professional Network of Alumni and Industry-Academia Collaboration.
Source: PIB
These results are broadly consistent with the WTO's most recent trade forecast issued on April 5, which projects 1.7 per cent growth in world merchandise trade in 2023. Global goods trade is expected to witness a turnaround in the second quarter of this year due to a recent pickup in export orders, the WTO said on Wednesday. According to the WTO's Goods Trade Barometer, preliminary data suggest that trade remained depressed in the first quarter of 2023. "But the recent pickup in export orders points to an increase in demand for traded goods in the second quarter," it added These results are broadly consistent with the WTO's most recent trade forecast issued on April 5, which projects 1.7 per cent growth in world merchandise trade in 2023. The WTO's (World Trade Organisation) expectation augurs well for India, which is struggling to push its outbound shipments. India's exports contracted by 12.7 per cent, the third month in a row, to USD 34.66 billion in April even as the trade deficit reduced to a 20-month low of USD 15.24 billion, the government data showed.
Source: Financial Express
Analysts expect the RBI to hold rates till, maybe, the end of the current tightening cycle, and go for rate cuts late in 2023 or early 2024. India’s gross domestic product (GDP) in real terms grew at 6.1% in the fourth quarter of last fiscal, a pace significantly higher than what most analysts expected, official data showed on Wednesday. A solid farm sector, buoyant services sector, a moderate pick-up in manufacturing, robust government capex and a favourable base pushed the quarterly growth. More than anything, net exports boosted the headline figure. With this, the National Statistical Office’s provisional estimates of the economic growth in FY23 came in at 7.2%, as against the advance estimates of 7%. The pace of growth was slower as compared to 9.1% recorded in FY22, but it represented a growth of 10.1% over the pre-pandemic year, FY20. The latest data has given some credence to the notion of the government and the Reserve Bank of India, that after a sequential slowdown for the two quarters through Q3, the growth momentum may have returned to an extent, weathering external headwinds. However, most independent economists feel the growth could slow down in the current fiscal, given the export slump, continued weakness of private capex and a likely weakening of the government’s spending power. A steady and sharp slowing of the growth in consumption demand since the first quarter of last fiscal belied the supply-side robustness, especially in regard to key service industries. Government consumption remained anaemic through the last fiscal, even as it stepped up capital expenditure. The latest data somewhat endorsed the RBI’s view of the state of the economy, and its FY24 outlook. A recent RBI paper said that, “although (it is) too early to tell, most recent data arrivals suggest that multilateral institutions – the IMF, in particular — might encounter forecast errors, with actual outcomes surprising them positively.” The IMF had pegged FY23 growth forecast for the country at 6.8%, and cut its FY24 estimate to 6.1% from 5.9%. Prime Minister Narendra Modi said in a tweet: “The FY23 GDP growth figures underscore the resilience of the Indian economy amidst global challenges. This robust performance along with overall optimism and compelling macro-economic indicators, exemplify the promising trajectory of our economy and the tenacity of our people.” Chief economic advisor V Anantha Nageswaran said: “We are prepared to stick our neck out and say that the risks to (the Economic Survey forecast 6.5% growth for FY24) are now probably more evenly balanced.” The gross value added (GVA), a closer gauge of the economic activities, expanded significantly higher than the GDP, at 6.5% in Q4, thanks to a sharp jump in GST revenues, and a reduction in subsidy expenditure, enabled by cessation of the additional grains supplies under the free ration scheme, from December 2022. However, GVA growth for the whole of the last financial year, was still marginally lower than GDP growth at 7%. The economy had grown by a slower 4.5% in the third quarter of last fiscal and by 4% in the fourth quarter of FY22. In FY23, the growth slowed down from 9.1% in the previous year, which was supported by a favourable base and resumption of economic activities after the pandemic. While there are incipient signs of a revival of private capex in some sectors like steel and cement, the Q3 capital formation was still greatly aided by government capex. Gross fixed capital formation grew 8.9% in the quarter, upon moderate base (4.9%), as against 8% in the previous quarter. Private final consumption expenditure in the quarter grew just 2.8% in Q4 against 2.2% in Q3, even as the base was more helpful for the later quarter (4.7%) than the former (10.8%). Rahul Bajoria, MD and head of EM Asia (ex-China) economics, Barclays wrote: “With weak external demand and the fall in commodity prices pushing down import and export values, net exports improved significantly, adding 1.4pp to headline growth, a swing away from negative contributions in the previous three quarters. In terms of contribution, domestic demand remains the dominant contributor to growth.” Services growth remained strong, with trade & transport and financial services showing robust expansion. The latest NSO data is expected to be a key input when the Monetary Policy Committee holds its next meeting between June 6-8 after keeping rates unchanged in the last meeting in April. Analysts expect the RBI to hold rates till, maybe, the end of the current tightening cycle, and go for rate cuts late in 2023 or early 2024. Manufacturing GVA belied expectations to grow at 4.5% in Q4, after contracting in the second and third quarters by 3.8% and 1.4% respectively. However, for the full fiscal, the sector’s growth still remained low at 1.3%, though higher than 0.6% projected in the NSO’s second advance estimates. Aditi Nayar, chief economist and head-research and outreach, Icra, said manufacturing growth in the fourth quarter rebounded amid an uptick in the year-on-year growth in manufacturing volumes. as well as an improvement in margins during the quarter, partly on account of a sustained moderation in input costs. GVA growth in the farm sector during the fourth quarter expanded at the fastest pace last fiscal at 5.5%. It was in fact the highest growth since the fourth quarter of FY21 when it grew by 5.7%. Despite concerns about the impact of untimely rains, agriculture grew by 4% in FY23 as against earlier projection of 3.3%. The fastest GVA growth amongst sectors was registered in the construction sector at 10.4% in the fourth quarter of the fiscal, followed by “trade, hotels, transport, communication and broadcasting services” that grew by 9.1%, which, however, slowed down over three quarters to Q4. Financial, real estate and professional services registered a growth of 7.1% while mining grew by 4.3% in the fourth quarter of the fiscal. Economists expect economic growth in FY24 is likely to slow down due to external factors and dampening of pent up demand. The monsoon would be a key factor to determine growth and rural demand, they feel. “We expect the economy to slow to 6% this fiscal due to spillover to exports from a slowing world and some impact of interest rate hikes on interest-sensitive segments,” DK Joshi, chief economist at Crisil said. Quarterly GDP growth for the first, second and third quarter of FY23 was also revised to 13.1%, 6.2% and 4.5% respectively from 13.2%, 6.3% and 4.4% previously.
Source: Financial Express
The govt has done well to spend on capex at a time when the pvt sector’s contribution isn’t picking up meaningfully the 6.1% growth in the headline gross domestic product (GDP) for the March quarter is impressive and reflects the resilience of the Indian economy at a time when the global environment has been unfriendly. However, the performance has been uneven—while the services and manufacturing sectors have lifted the numbers, consumption continues to be a huge disappointment. The good gross value added (GVA) growth of 6.5% year-onyear has been driven by strong tax collections and a smaller subsidy bill. To be sure, growth was helped by the significantly smaller drag on net trade of just over Rs 6,200 crore, less than a tenth of nearly Rs 66,000 crore in Q4FY22; this added about 1.4 percentage points to the GDP. While the strong services exports is heartening and should continue, a falling import bill would mean manufacturing activity might not gain the kind of momentum one would want. The good show put up by the agriculture sector, which grew 5.5% y-o-y suggests that unseasonal rains do not seem to have hurt the rural economy as much as was feared. That is good news. The government has done well to spend on capital expenditure at a time when the private sector’s contribution is not picking up meaningfully, with the gross fixed capital formation (GFCF) rising by nearly 9% y-o-y. The high multiplier impact of capex should help the economy. Manufacturing too has done well in Q4, having grown at 4.5%, although this is off a very weak base, of a mere 0.6% growth in the same period of the previous fiscal. In fact, the segment recorded negative growth both in Q3 and Q2FY23. The softening of input prices has clearly boosted margins, so it remains to be seen how the sector will fare once the base effect fades. The biggest disappointment has been consumption, which accounts for close to 60% of the economy; the private final consumption expenditure (PFCE) grew at an anaemic 2.8% in the March quarter and that too on a modest base of 4.7% y-o-y in Q4FY22.
Source: Financial Express
Credit growth to the services sector accelerated to 21.6% during the month from 11.2% a year ago primarily driven by higher lending to non-banking financial companies which rose 29% year-on-year and trade at 18%. Retail loans rose 19.4% in April compared to 4.4% a year ago, mainly driven by 'housing loans' and 'vehicle loans', RBI said. Bank lending continued to rise in April as credit demand picked up across sectors barring industry. Non-food credit rose 16.1% in April from 11.4% a year ago, according to the latest data on sectoral deployment of bank credit released by the Reserve Bank of India on Wednesday. Credit growth to the services sector accelerated to 21.6% during the month from 11.2% a year ago primarily driven by higher lending to non-banking financial companies which rose 29% year-on-year and trade at 18%. Retail loans rose 19.4% in April compared to 4.4% a year ago, mainly driven by 'housing loans' and 'vehicle loans', RBI said. Credit to agriculture and allied activities improved to 16.7% year-on-year in April 2023 from 10.6% a year ago. Loans to industry on the other hand slowed to 7% in during the month from 8% a year ago. "Demand from corporates for working capital requirements could be lower this fiscal due to a fall in global commodity prices resulting in lower input costs," said Saugata Bhattacharya, chief economist at Axis Bank. Size-wise, credit to large industries rose by 5.3% as compared with 1.3% a year ago. Credit growth of medium industries was 19.1% as against 53.7% in the year-ago period. Credit to micro and small industries registered a growth of 9.7% during the month from 29.8% a year ago. Among major industries, credit to basic metal and metal products, petroleum, coal products and nuclear fuels accelerated during the month, while deceleration was recorded in chemicals and chemical products, food processing, infrastructure and textiles.
Source: Economic Times
• Maharashtra is focusing on cotton processing to boost its textile value chain. • A new policy aims to attract ₹25,000 crore investment and create 500,000 jobs by 2028. • It includes establishing the MSTDC, 6 textile parks, and supporting traditional artisans. • The policy also aims to safeguard indigenous textiles of the state like Paithani, Himru, Khana and more. Maharashtra, a major cotton producing state in India, is shifting its focus to enhance cotton processing capacity. This initiative is aimed at maximising benefits from value addition across the textile value chain. The newly implemented state textile policy is expected to draw an investment of approximately ₹25,000 crore to accomplish this goal. Maharashtra is already recognised as a significant textile hub in the country. This policy, approved by the state cabinet on Tuesday, will be in effect from 2023 to 2028. Its objective is to create 500,000 jobs in the sector within this time period. Deputy chief minister Devendra Fadnavis shared insights on the policy via a tweet. He articulated the policy's aim as, "Farm to Fibre to Factory to Fashion to Foreign". This approach is designed to boost cotton processing from the current 30 per cent to 80 per cent. With Maharashtra being one of the top cotton producers, its cotton is largely bought by spinning mills from other states due to local mills having limited processing capacities. Maharashtra is known for weaving and processing. Furthermore, the policy plans to establish the Maharashtra State Textile Development Corporation (MSTDC), a dedicated body for backing schemes for the sector. It also intends to set up six textile parks across the state. In addition to industrial expansion, the policy also aims to safeguard indigenous textiles of the state such as Paithani, Himru, Karvat Kathi, Khana, and Ghongadi. To support the artisans of these traditional fabrics, the government will offer financial assistance. Female weavers will receive ₹15,000 and male weavers ₹10,000 annually. Moreover, the state government plans to launch a programme providing a free saree annually to every family living below the poverty line (BPL) in the state.
Source: Fibre 2 Fashion
The Indian cotton yarn exports, dropped by almost 50 per cent, while the cotton fabrics and made-ups export dropped by 17 per cent As the dwindling global demand for cotton textile products continues to hit cotton prices, the textile sector has demanded exempting cotton from 11 per cent import duty. The Indian cotton yarn exports, dropped by almost 50 per cent, while the cotton fabrics and made-ups export dropped by 17 per cent and raw cotton exports plunged by 73 per cent during the year 2022-23, when compared to 2021-22, said Ravi Sam, chairman of The Southern India Mills Association (SIMA). “The cotton arrival during the current cotton season was less than 60 per cent as on March 31 as against the usual arrival of 85 per cent to 90 per cent for the past several decades,” he said. “The total Indian textiles and allied products export that recorded US$42.9 billion during 2021-22 dipped to US$35.4 billion during 202223 as a result of declined demand for cotton,” SIMA chief added. Stating that the Indian cotton trade was taking advantage of 11 per cent of import duty and kept domestic price higher by 8 per cent to 15 per cent which was the root cause for substantial drop in cotton textiles and clothing exports from India, Ravi Sam said as the production capacity across the cotton textile value chain has dropped to the tune of 30 per cent, the demand for home grown cotton also dropped resulting in significant drop in cotton prices in May, this year. “Therefore, it is advisable to exempt ELS cotton from 11 per cent import duty and also other cotton during June to October. It was exempted from duty from April to October 2022. The cotton price which was prevailing at Rs 62,000 per candy on 2 May, 2023 is now ruling around Rs 56,500 per candy,” Ravi Sam said.
Source: DT NEXT
• New Zealand's FTA with the UK takes effect today, potentially boosting the nation's GDP by up to $1 billion annually. • Prime Minister Chris Hipkins highlighted this as one of 7 successful FTAs negotiated recently. • Businesses are expected to save around $37 million instantly. • Minister O'Connor stressed the FTA's role in easing cost pressures and creating jobs. New Zealand businesses are set to enjoy significant financial benefits from a free trade agreement (FTA) with the United Kingdom, which officially comes into effect today. Prime Minister Chris Hipkins announced the commencement of the agreement, highlighting it as one of the seven new or upgraded FTAs successfully negotiated by the labour government to date. "The economy is through the worst, with inflation having peaked and set to return to the target range next year, alongside healthy growth and an influx of workers to address skill shortages,” Hipkins said in a statement. The Prime Minister further emphasised that the trade agreement would bolster the national economy significantly, predicting an annual GDP increase of up to $1 billion. New Zealand businesses will experience immediate financial benefits. "Our earlier than expected implementation means that from today New Zealand businesses will immediately save around $37 million dollars, thanks to the instant elimination of tariffs and new duty-free quotas covering 99.5 per cent of current exports," Hipkins explained. Trade minister Damien O’Connor echoed the Prime Minister's sentiment, underlining the tangible benefits of the trade agreements to everyday New Zealanders. "Trade agreements can at times feel more academic than tangible, that is until the savings begin to flow through, saving businesses millions and boosting jobs for Kiwis,” O’Connor said. O’Connor also noted the expansion of export goods covered by an FTA, which has grown from 52.5 per cent to 73.5 per cent since 2017. The minister underscored the vital role of these agreements in promoting export growth and supporting New Zealand businesses to overcome international trade challenges. He highlighted how the UK FTA would alleviate cost pressures for exporters, expand opportunities for small businesses, and foster job creation during a cost-of-living crisis. "One in four jobs depend on trade – showing the importance of trade to our nation’s growing economy," O’Connor stated.
Source: Fibre 2 Fashion
The initiative called "Circular Fashion Partnership Cambodia," is a component of the Global Circular Fashion Forum (GCFF) that aims to help textile manufacturing nations to expedite and expand the recycling of post-industrial textile waste. lobal Fashion Agenda (GFA), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), and Responsible Business Hub hosted by EuroCham organised a gathering of over 100 experts and stakeholders last month. The event, titled: “Textile Waste Opportunities for Circular Textiles, Garments, and Footwear in Cambodia,” served as a platform for robust discussions on the current state of textile waste in the country and charting the path towards a circular future. The event marked the start of an initiative called “Circular Fashion Partnership Cambodia,” aimed at establishing circular systems in Cambodia. It will begin by supporting the pilot project which will focus on the proper sorting and recycling of textile waste, diverting it from landfills and incineration. GFA and GIZ are engaging stakeholders to establish the Circular Fashion Partnership Cambodia, as an integral part of the Global Circular Fashion Forum (GCFF). The aim is to accelerate and scale the recycling of post-industrial textile waste in textile manufacturing countries, thereby promoting local action. The event garnered significant participation from representatives of manufacturers, brands, recyclers, recycling technologies, textile waste handlers, and government officials. According to GFA, Cambodia’s textile, garment, and footwear industry generates approximately 140,000 tonnes of textile waste each year, most of which undergoes unregulated downcycling, and incineration, or ends up in landfills, which have detrimental effects on the environment and population. Acknowledging this issue, speakers, including Soem Nara, under-secretary of State at the Ministry of Industry, Science, Technology, and Innovation, and, Pak Sokharavuth, undersecretary of State at the Ministry of Environment, Cambodia, shared insights on recycling technology dissemination, best practices, legislation, waste segregation, data management, and social considerations for transitioning to circularity. Dr. Günter Riethmacher, country director of GIZ Cambodia, highlighted the challenges hindering the recycling of post-industrial textile waste but expressed optimism that the pilot project implemented by GIZ and GFA, under the Circular Fashion Partnership, will provide viable solutions. He said: “The pilot project will minimise the challenges and demonstrate that better solutions are feasible by bringing together all stakeholders along the value chain. Addressing the textile waste will become an increasingly important sustainability topic for the entire sector.” The Responsible Business Hub, hosted by EuroCham, added: “Responsible business is intrinsically linked to sustainability and circularity.” The hub voiced its full support for initiatives aimed at fabric waste recycling within Cambodia, highlighting the country’s mitigation strategy and the significance of a centralised recycling facility for the garment sector. The Responsible Business Hub pledged to collaborate with relevant stakeholders and government bodies to ensure the successful implementation of the project in collaboration with the private sector. A youth-led Cambodian fashion show was organised during the event, showcasing upcycled designs, and the importance of sustainable fashion practices. Federica Marchionni, CEO of Global Fashion Agenda, expressed enthusiasm for the project, stating the event’s success exemplifies the power of a shared vision. She affirmed their commitment to shaping the Circular Fashion Partnership Cambodia project and the need for domestic sorting infrastructure to capture and valorise valuable post-industrial textile waste.
Source: Just Style
The European Parliament adopts recommendations for the EU Strategy for Sustainable and Circular Textiles today (1 June), however the European Apparel and Textile Confederation (Euratex) argues it could push Europe out of the fashion market. the EU Strategy for Sustainable and Circular Textiles calls for textile products sold in the EU to be more durable, easier to reuse, repair and recycle. It states their production should respect human, social and labour rights, the environment and animal welfare throughout the supply chain. Moreover, the members of Parliament (MEPs) state they want EU and national measures to put an end to “fast fashion” with a call for the ban on the destruction of unsold and returned textile goods. Sustainability and competitiveness – a balanced vision While Euratex says it supports the EU Textile Strategy, it believes despite the efforts outlined to step up the EU’s ambition towards sustainability and circularity even further, the report fails to recognise the strategic role of the European textile industry to scale up sustainability. The report also does not take into consideration the global competitive threat which companies in Europe are currently facing. Director General of Euratex, Dirk Vantyghem, explains: “We welcome the strong interest of the European Parliament in the textile and fashion industry, but encourage MEPs to develop a balanced vision which reconciles sustainability and competitiveness. Developing a new business model for our industry requires carefully crafted legislation at the global level, and an open dialogue between the industry, the brands and the consumer.” Euratex believes the report fails to respect the balance between sustainability and competitiveness. Instead, Euratex says it suggests even more rules and restrictions, totally disregarding the current economic challenges caused by high energy prices, loss in consumer confidence and assertive trade partners. The organisation goes as far as to say: “Putting the bar even higher will simply mean that the European textile industry will be pushed out of the market, resulting in a bigger environmental footprint and increased dependency on foreign supplies. Quite the opposite of what the EU wants to achieve with its open strategic autonomy plans. “The report also fails to differentiate between textile products. There is a mix-up between fashion and technical textiles, between products made in Europe and outside, and between high-quality and durable products and low-quality items. It is regretful that the European Parliament did not make that distinction and simply refers to “textiles” as a general cause of concern, without acknowledging e.g. the high-quality products, made by European textile and fashion companies. “It puts a strong responsibility on the supply side – the industry and the brands – and does not sufficiently address the role of the consumer. We need initiatives therefore to create a stronger demand for sustainable textiles, which includes better communication and transparency (avoid greenwashing), fiscal measures, green public procurement and better control of online marketplaces.” However, Euratex believes the report does recognise the importance to invest in research and innovation, to support reskilling and upskilling, the need to scale up the circular economy and pay attention to the needs of SMEs. Measures to be addressed in future EU legislation. The European Parliament says consumers should have more information to make sustainable choices and calls for a ban on the destruction of unsold and returned textile goods in the upcoming revision of the ecodesign regulation. It says MEPs want clear rules to stop greenwashing by producers, through for example the ongoing legislative work related to ’empowering consumers in the green transition’ and ‘regulating green claims’. MEPs also want the upcoming revision of the Waste Framework Directive to include specific separate targets for textile waste prevention, collection, reuse and recycling. They urge the Commission to launch the initiative to prevent and minimise the release of microplastics and microfibres into the environment, without further delay. The EU Commission initially presented the EU Strategy for Sustainable and Circular Textiles on 30 March 2022 to address the entire lifecycle of textile products and propose actions to change how we produce and consume textiles. The move is part of the EU Green Deal which proposes to make sustainable products “the norm in the EU”, boost circular business models and empower consumers for the green transition. As announced in the Circular Economy Action Plan, the Commission is proposing new rules to make almost all physical goods on the EU market more friendly to the environment, circular, and energy-efficient throughout their whole lifecycle from the design phase through to daily use, repurposing and end-of-life. Manufacturers will have to ensure their clothes are eco-friendly and long-lasting and consumers will be given more information on how to reuse, repair and recycle clothing. The European Parliament says that by adopting this report it is responding to citizens’ expectations to build a circular economy by promoting sustainable EU products and production, and to support the shift to a sustainable and resilient growth model.
Source: Just Style
Mayors from more than 30 global cities convened at ChangeNow, a prominent event focused on solutions for the planet, to raise concerns about the detrimental impact of fast fashion on their cities and the environment. Signifying a collective population of 6.5 million citizens, representatives from ten European cities, including Dublin, Paris, Strasbourg, Bordeaux, Leuven, Annecy, Bologna, Rzeszów, Terrassa and Turku, gathered to endorse the Slow Fashion Declaration. This joint effort seeks to urge the European Union, G7, and the Organisation for Economic Co-operation and Development (OECD) to establish regulations that level the playing field between slow fashion entrepreneurs and fast fashion conglomerates. The declaration outlines several key objectives, including raising public awareness about the social and environmental consequences of fast fashion. It further aims to facilitate access to production and sales sites by leveraging public support to reduce rents for slow fashion actors. Financial backing for research and innovation in environmentally friendly technical solutions and local job creation is also emphasized. The declaration calls for financial support for new business models within the fashion sector and encourages the reorientation of grants and loans to support companies with a positive impact, emphasising the role of public procurement in fostering new markets and customers for sustainable businesses. The textile industry currently bears responsibility for significant environmental degradation and human rights violations, Change Now said in a statement. The Slow Fashion movement aims to counter these issues by advocating for ethical and fair production practices, which prioritize environmental sustainability and improved working conditions for industry stakeholders. Ambition regulations at scale To achieve its objectives, the Slow Fashion Declaration pushes for ambitious regulations at the international, European, and national levels. At the international and European scale, it proposes measures such as the prohibition of unfair trading practices, support for producing countries through governance reforms and law enforcement, and a ban on incentives to consume through fast fashion advertising. The declaration also iterates the implementation of a robust Carbon Border Adjustment Mechanism (CBAM) applicable to the textile industry and methods to hold businesses accountable via a Corporate Sustainability Due Diligence EU directive. Other focus points including banning chemicals in the textile industry and establishing a European Slow Fashion Label to inform consumers about the origin and environmental impact of clothing and support for the cultivation of organic textile raw materials in Europe. Barbara Trachte, State Secretary for the Economic Transition and Scientific Research in the Brussels Capital Region Government and the initiator of the Slow Fashion Declaration, expressed the urgent need for action, stating, "We don't want to wait for more nature and biodiversity to be destroyed. We don't want another Rana Plaza, nor do we want to see the slow fashion designers and entrepreneurs go bankrupt. We want a ban on ultra-fast fashion, fair competition rules so that we can all be sure that the clothes we wear are made by people who like their jobs and that they don't harm the environment." Mayors from various cities, including Rzeszów in Poland and Paris in France, echoed the sentiment and importance of collaboration to drive change. They stressed the significance of local initiatives, circular economies, and the role of national and international standards in transforming production methods and consumption behaviours.
Source: Fashion United
UNEP’s report ‘Sustainability and Circularity in the Textile Value Chain: A Global Roadmap’ outlines what each stakeholder group can do individually and collectively to reach the shared destination of a circular textile sector. To do so, the report identifies the three priorities: 1) shifting consumption patterns; 2) improved practices; and 3) infrastructure investment. These three priorities depend on each other and will require significant work. Therefore, the Roadmap breaks this work down into nine building blocks that each stakeholder can focus on, with priority actions for each stakeholder group. The report builds on research and consultations with over 140 textile value chain stakeholders, whom UNEP thanks for helping define a common agenda of transformation towards sustainability and circularity. The Roadmap consists of the main report and seven stakeholder-specific annexes. The annexes deep-dive further into the actions that the specific stakeholder group can take to deliver against the nine building blocks.
Source: Just Style
