We refer to the DGFT notification no.71/2023 dated 11th March 2024 regarding the exemption for import of items covered under Quality Control Orders (QCOs). It says that imports under advance authorisations will be subject to pre-import condition and the export of goods manufactured from such imports must be made against the same advance authorisation. Now, we have some advance authorisations where we have already fulfilled the export obligation fully or partly and we have to import the items covered under QCOs as replenishment. We are not sure if the JDGFT will endorse such items for imports. Secondly, we cannot export against the same authorisation as export obligation is already completed. Please advise how we can proceed because unless we import such items duty free as replenishment, we will have to take losses. The problem you have mentioned is quite widespread. The said notification no.71 does not deal with such situations. I suggest that you represent the matter to the DGFT through your export promotion council for granting a general relief to all exporters who have a similar problem. Simultaneously, you may approach the Policy Relaxation Committee for suitable relief in your individual case. It appears the government intends to give GAEC for exports of SCOMET items only to the parties to whom you have already made some exports. If so, that should be made clear in the FTP. If not, the DGFT should consider prescribing a separate application form for GAEC. I agree that the form ANF-10A is more suitable for application for specific authorisations and not GAEC. Anyway, I suggest you give whatever details you can and say in your covering letter that details of buyers called for cannot be given now as the marketing efforts are on-going efforts and that you are hopeful of getting orders and executing them quickly. Of course, I am not sure that will work. We had imported certain items from a trader in Malaysia and claimed concessional duty under the India-Asean FTA on the basis of the Certificate of Origin, which shows the AIFTA content based on the FOB price trader charged to us. The Customs say that the FOB price should not include the trader’s margin. Is that correct? The Customs are probably guided by the cost elements to be considered for calculation of FOB value given at Annexure-1 to the notification no.189/2009-Cus(NT) dated 31.12.2009.
Source: Business Standard
Synopsis India investigates 'Insoluble Sulphur' dumping from China and Japan, potentially leading to anti-dumping duties. The process aims for fair trade practices under WTO regulations, protecting domestic industries from cheap imports. India has initiated an anti-dumping probe into the import of a chemical used in the rubber industry from China and Japan following a complaint by a domestic player. The commerce ministry's investigation arm Directorate General of Trade Remedies (DGTR) is probing the alleged dumping of 'Insoluble Sulphur'. Oriental Carbon & Chemicals Ltd has filed an application before the authority to undertake a probe into the alleged dumping of the chemicals coming from these two countries. According to the DGTR's notification, the applicant has provided prima facie evidence with respect to the injury suffered by the domestic industry due to the dumped imports. "The authority hereby initiates an anti-dumping investigation into the alleged dumping and consequent material injury to the domestic industry," it said. If it is established that the dumping has caused material injury to domestic players, the DGTR would recommend the imposition of anti-dumping duty on imports. The finance ministry takes the final decision to impose duties. Anti-dumping probes are conducted by countries to determine whether domestic industries have been hurt because of a surge in cheap imports. As a countermeasure, they impose these duties under the multilateral regime of the Geneva-based World Trade Organization (WTO). The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters. India, China and Japan are members of the WTO, which is a 166-member multi-lateral trade body. India has already imposed anti-dumping duty on several products to tackle cheap imports from various countries, including China.
Source: Economic Times
Synopsis Consultants and service providers are urging the government to avoid routing domestic deals involving foreign currencies, such as dollars, through the US banking system. Currently, transactions in USD within the country incur a transaction fee. K K Kapila, chairman of Intercontinental Consultants and Technocrats (ICT), highlighted that even local transactions, like from Delhi to nearby Faridabad, must go through the US banking system. Consultants and service providers have urged the government to stop routing domestic deals involving foreign currencies like dollars via the US banking system to avoid transaction fees and save foreign currency. Intercontinental Consultants and Technocrats (ICT) chairman K K Kapila said at present a transaction fee is levied on US dollar transactions within the country. Citing an example, Kapila said payment in USD from Delhi to even nearby Faridabad from one entity to the other in the current dispensation is required to be undertaken through the US banking system. "This should be undertaken directly through the Reserve Bank of India and there should be no requirement of routing them through the American Banking system," he said. Kapila pointed out that a small country like the Philippines does not route its internal foreign exchange transactions through the United States. India can also do the same, he added.
Source: The Economic Times
The financial 2023-24 (FY24) ended on a positive note for the Indian economy with goods and services tax (GST) collection, car sales, and Unified Payments Interface (UPI) transactions hitting high spots. GST receipts net of refunds grew 18.4 per cent at Rs 1.65 trillion in March. It had risen 13.6 per cent year-on-year to Rs 1.51 trillion in February. With the March numbers, net collection stood at Rs 18.01 trillion in FY24, an increase of 13.4 per cent over that in the previous year. Gross GST collection (before refunds) grew 11.5 per cent to hit the second-highest figure at Rs 1.78 trillion in March FY24 despite being pulled down moderately by weaker integrated GST (IGST) on imports of goods. This came with Indian carmakers reaching a new high in FY24 with sales of 4.23 million domestic passenger vehicles, marking an 8.74 per cent year-on-year (Y-o-Y) increase. Also, UPI transactions in India posted a record 57 per cent rise in volumes and 44 per cent in value in FY24 over the previous financial year. Gross GST collection was the highest — at Rs 1.87 trillion —in April FY24. GST collection before refunds touched Rs 20.18 trillion in FY24, showing a growth rate of 11.7 per cent over the Rs 18.07 crore during the previous financial year, showed the data released by the finance ministry on Monday. It was domestic transactions that drove GST collection in March. Gross receipts from such transactions rose 17.6 per cent. On the other hand, the import of goods hit integrated GST collection due to softening commodity prices. These receipts before refunds fell 5.1 per cent at Rs 40,322 crore. “GST collection, marked by an impressive 11.5 per cent year-on-year growth rate in March, underscores the resilience of our economy in the face of global challenges,” said Saurabh Agarwal, tax partner, EY. However, gross cess on imported goods grew 3.7 per cent at Rs 996 crore during the month. An amount of Rs 77,706 crore was collected as gross central GST (CGST) and Rs 81,450 as gross state GST (SGST) for March. And, for FY24, Rs 8.62 trillion was collected as gross CGST and Rs 8.83 trillion as gross SGST. However, it is difficult to say if the Revised Estimates given in the Budget for 2023-24 have been met since these are gross figures. The Budget has estimated Rs 8.12 trillion from CGST in the Revised Estimates for FY24, the same as in the Budget Estimates. Average monthly collection stood at Rs 1.68 trillion during FY24, surpassing the previous year’s average of Rs 1.5 trillion. “Average monthly collection increasing by approximately Rs 18,000 crore this year indicates a robust growth story and recovery,” said Abhishek Jain, indirect tax head and partner, KPMG. Except Manipur and the Union Territories of Dadra and Nagar Haveli and Daman and Diu, every other state and Union Territory recorded growth during FY24, after the IGST settlement. “It can be inferred that growth is across regions and sectors,” said M S Mani, partner, Deloitte India.
Source: Business Stannard
To compete with China on the economic front, India should focus on manufacturing, a key sector which was ignored by governments before Prime Minister Narendra Modi came to power in 2014, External Affairs Minister S Jaishankar has said. Noting that tension at the border with China has caused "abnormality" in New Delhi-Beijing relations, he said India's thinking is absolutely clear that unless there is peace and stability in the border areas, the ties between the two Asian powers will not improve. "If we have to compete with China, which we should, then its solution is that we should focus on manufacturing here. Our approach towards manufacturing has changed after Modiji came to power. Before that, people did not give much emphasis on manufacturing," Jaishankar said during his interaction with industry leaders at a programme in Surat on Monday. There is no other way to counter China on the economic front, insisted the career diplomat-turned-politician while replying to questions from audience members on how he saw India's relationship with the world's second largest economy as it moves towards becoming a USD 5 trillion economy. Jaishankar was speaking at a corporate summit on "Bharat's Economic Rising," organised by the Southern Gujarat Chamber of Commerce and Industry (SGCCI). "If we talk of rising Bharat, it will rise through technology. You cannot build strong technology on weak manufacturing. At any cost, we should put special emphasis on manufacturing, because that is the only economic response," the Union minister maintained. Jaishankar, a former ambassador to China, emphasised that tension at the border has affected Sino-Indian ties. "As you know, there is tension at the border (with China). And this has caused abnormality in our relations. For that our thinking is very clear that unless there is peace and stability at the border, the relations will remain in the same deteriorated condition," he said. Asked about relationship with Pakistan which remains strained and New Delhi's fight against terrorism sponsored from across the border, Jaishankar asserted India should never compromise on terrorism. "For us to tolerate, justify (terrorism) are all wrong. The only response to terrorism is counter-terrorism. And they should understand this to make it a deterrent," he added. Asked about the future of the World Trade Organisation amid China dumping goods in India through dubious methods and advanced countries using the WTO to their own convenience, the minister said while it has its own set of challenges, New Delhi should never leave the global forum. "It (WTO) is a formal and accepted forum for talks. Here we would put forward our point, work with allies to save our interest. We recently held a meeting on fishing. We should also explore arrangements at bilateral and group levels," he noted. In his speech at the corporate summit, Jaishankar emphasised that reforms carried out by the government and policies framed to counter COVID-19 have helped India emerge from the pandemic and strengthen its economic position to such an extent that today "we are the fastest growing large economy". "This is one reason why global perception about India has changed," he said. Given India's leadership role, vision, stability, confidence and foreign investment figures, the world wants to collaborate with "us in our journey", the external affairs minister said. "This is a very auspicious occasion for us to engage with the world in different ways in different spheres. This is the India of Chandrayaan and UPI, 5G stack and Covaxin which is respected by the world, and where the Modi government will ensure the safety of its people in any corner of the world. We have done this during the COVID-19 pandemic, in Ukraine, Sudan, and Israel," he noted. There is no doubt that India is rising, and now it is up to "us to see how we connect ourselves with the world and use opportunities and challenges thrown by it," Jaishankar said. "I want to assure you that the world's idea about India has changed a lot," the former IFS officer added.
In the last 10 years, the United Arab Emirates' (UAE) thinking about India has changed. The UAE has entered into a free trade agreement with India and trade volume between the two countries has now reached the USD 80 billion-mark, Jaishankar pointed out. The scenario changed after PM Modi's UAE visit in 2015, which was the first trip to the Gulf country by an Indian prime minister after Indira Gandhi went there in 1981, he said. When the US thinks of technology, it establishes a connection with India, he said and cited a roundtable on the issue organised at the White House during PM Modi's visit to buttress his point. An agreement for an economic corridor between India and Europe through Saudi Arabia and the UAE reached during G-20 meet last year and collaboration with the western world on emerging technologies such as semiconductors and drones have put the country in a unique position, he said. These countries think "that India is a unique, non-replaceable partner and (hence they) want to work with India at any cost," Jaishankar added. "Many countries want to enter into an FTA with India. Many of our negotiations are underway, but we believe we will only enter into such FTAs when benefits for us are clear and we are not hurt by opening doors for dumping," the minister said. Indian doctors and engineers are in great demand across the world, and the country wants to protect the interest of its people going abroad and ensure they are given equal treatment, he said. "For this, we enter into a mobility agreement with different countries. In the last two years, we have entered into mobility agreements with Germany, Austria, Italy, France and Australia. For us opportunities exist even outside the country, and they can come in different forms," Jaishankar said.
Source: Business Standard
Synopsis India's manufacturing sector ended FY24 with remarkable performance, as reflected in the HSBC India Manufacturing PMI hitting a 16-year high of 59.1 in March. Strong output and new orders prompted increased hiring, yet concerns over inflation caused overall sentiment to dip to a four-month low, despite optimism in certain areas.
The manufacturing sector in India closed out FY24 a "stellar performance" in March, a private survey showed, as companies stepped up hiring in response to strong production and new orders. The HSBC India Manufacturing PMI rose to a 16-year high of 59.1 in March, from 56.9 in February. While this number was the highest since February 2008, it was lower than HSBC's preliminary estimate of 59.2. A reading of over 50 separates expansion from contraction. India's manufacturing output rose for the 33rd consecutive month in the final month as growth quickened across consumer, intermediate and investment goods sectors. "(This) was on the back of the strongest increases in output and new orders since October 2020, parallel to the second-sharpest upturn in input inventories in the history of the survey," the firm said in a press release on Tuesday. Companies in March sought to build-up stocks as they expected improvement in sales, data showed. Capital goods emerged as the brightest area when it came to input buying and stockpiling. However, survey showed that while Indian companies were optimistic about a few things, the overall sentiment slipped to a four-month low as worries of inflation continued to weigh on their confidence. Cost pressures came out to be the highest in five months. Companies paid a higher price for cotton, iron, machinery tools, plastics and steel. "India’s March manufacturing PMI rose to its highest level since 2008. Manufacturing companies expanded hiring in response to strong production and new orders. On the back of strong demand and a slight tightening in capacity, input cost inflation picked up in March," said Ines Lam, Economist at HSBC. Inventories of purchases jumped to the 'second-greatest extent' in the survey history, only behind May 2023. While the pace of job creation was mild, it was the best since September 2023, with mid-level and full-time employees seeing hiring.
Source: The Economic Times
With several new sectors coming up and creating newer opportunities for the country’s youth, the Reserve Bank of India (RBI) must explore out-of-the-box policies to ensure credit availability for these emerging fields, Prime Minister Narendra Modi said on Monday. He was speaking at a ceremony to mark the 90th year of the Indian central bank. He highlighted the growth of the green energy sector, specifically the advances in solar energy, green hydrogen and ethanolblending. He mentioned the 5G technology and rising defence sector exports, and emphasised the importance of setting clear targets for the next decade. The PM pointed out the need to monitor the changes brought about by the cashless economy while promoting digital transactions. Among those in attendance were Reliance Industries Chairman Mukesh Ambani, Mahindra Group Chairman Anand Mahindra, Tata Sons Chairman Natarajan Chandrasekaran, 16th Finance Commission Chairman Arvind Panagariya, former RBI Governor Urjit Patel, SBI Chairman Dinesh Khara, and CEOs of banks. Modi commended the RBI for its efforts in revitalising financially distressed banks and transforming them into profitable institutions. “In 2014, when I attended the programme for the completion of the RBI’s 80 years, the situation was very different. The entire banking sector in India was struggling with problems and challenges. Everyone was doubtful regarding the stability and future of India’s banking system.” “The situation (then) was so bad that public-sector banks were not able to provide enough boost to the country’s economic progress. Today, India’s banking system is seen as strong and sustainable,” he said. The PM asserted that the banking sector’s profitability and the surge in credit growth were outcomes of collaborative efforts between his government and the RBI over the past decade. He also highlighted a remarkable decline in gross non-performing assets (NPAs) of public-sector banks — from 11.25 per cent in 2018 to under 3 per cent by September 2023. On the once-prevalent ‘twin-balance sheet’ issue, Modi declared the problem resolved, with banks now witnessing robust credit growth of 15 per cent. He acknowledged the RBI’s substantial contribution to these achievements. PM Modi emphasised the imperative of accelerating digital transactions over the next decade and underscored the importance of monitoring advances in the cashless economy. “We will have to grow digital transactions in the next 10 years. We will also have to keep an eye on the developments coming from the cashless economy... What happened in the past 10 years was just a trailer, still a lot is to be done to take the country much further,” he said. Confident of another term, the PM, on a lighter note, told RBI officials that their work would increase on the very next day of his swearing-in. “I am busy with elections for the next 100 days. So, you have a lot of time to think about (new policies),” he said. The country is gearing up for general elections, starting on April 19, in which the Modi-led Bharatiya Janata Party (BJP) will be vying for a third term in office. The election results are scheduled to be announced on June 4. Modi also mentioned more than 12 billion monthly transactions via Unified Payments Interface (UPI) making it a globally recognised platform. On the work being done on the Central Bank Digital Currency, he said the transformations of the past 10 years had enabled the creation of a new banking system, economy and currency experience. In his speech, RBI Governor Shaktikanta Das said the well-calibrated and coordinated monetary and fiscal policies adopted in the country went a long way in shielding the economy from the shocks of Covid-19 pandemic and geopolitical hostilities and helped India emerge even stronger than before. “It is a matter of satisfaction that today our GDP growth is robust, inflation is moderating, the financial sector is stable, the external sector remains resilient, and the forex reserves are at an all-time high,” he said, adding the RBI had emerged as a symbol of stability, resilience and commitment to the welfare of the citizens. “As we move towards RBI@100, the Reserve Bank remains focused on ensuring a stable and strong financial system that would act as bedrock for our country’s economic progress,” Das said. Finance Minister Nirmala Sitharaman said the stability in government securities yields had bolstered overall financial market resilience and investor confidence in the Indian economy. She emphasised that the measures undertaken for monetary tightening had effectively stabilised the G-Sec yields. “The stability in the G-Sec market has contributed to overall financial market resilience and investors’ confidence in the Indian economy,” she said. Sitharaman lauded the RBI’s proactive approach in addressing inflation, a persistent concern in many economies, as well as its innovative strategies to uphold financial stability
Source: Business Standard
The Italian Trade Agency (Trade Promotion Section of the Italian Embassy), in collaboration with Association of Italian Textile Machinery Manufacturers (ACIMIT), has announced a delegation visit of 11 prominent Italian textile machinery manufacturers to India, set to take place from April 9-12, 2024. The visit aims to foster stronger business cooperation between India and Italy through a series of technology showcase events in Delhi and Mumbai. Scheduled for April 9, 2024, at the Hyatt Regency Hotel in New Delhi and April 11 at the Hyatt Centric Juhu Hotel in Mumbai, the workshops will focus on the latest Italian technology of the entire value chain from spinning, knitting, weaving, nonwovens, dyeing, and finishing. These events represent a significant opportunity for decision-makers and experts from the Indian textile and nonwovens industry to learn about the latest solutions aimed at making their textile business more sustainable and efficient. The Italian delegation comprises renowned companies that span the entire textile value chain, including spinning, knitting, weaving, nonwovens, dyeing, and finishing sectors. This initiative not only highlights the innovative technologies that Italian manufacturers bring to the global textile industry but also underscores the potential for enhanced Indo-Italian collaboration in this vital economic sector. Among the visiting companies are Testa Group, known for its customised textile finishing machinery; Cubotex, a leading producer of dyeing machines and dryers; and Monti-Mac, specialising in the automation of sewing processes. Other notable participants include MCS Officina Meccanica Spa, offering advanced solutions for dyeing and finishing; Danitech, focusing on eco-friendly dyeing machinery; and SICAM, providing.
Source : Fibre2fashion
In an effort to create two million jobs and lower the annual cost of over $4 billion incurred on the importation of clothing and textiles, the Nigerian government recently encouraged to revitalize and invest in the textile industry. The National Union of Textile Garment and Tailoring Workers of Nigeria (NUTGTWN) recently held its 13th national delegates conference. During the conference, John Adaji, the union's outgoing president said that 90% of textile items in Nigeria are currently imported. But, due to a lack of facilities, high energy prices, and insufficient support from government agencies, the cost of producing textile materials domestically is also high. In order to boost production, there should be more renewed emphasis on textile and power industry. So need a new power policy to give room for effective power plants in the country. Additionally, Joe Ajaero, the president of the Nigeria Labour Congress (NLC), urged the government to act quickly to revive the textile sector.
Source: Textile Today
US President Joe Biden delivered his State of the Union address to the US Congress on 7 th March. On the other side of the Pacific in China, the 21st National People's Congress held its plenum. Biden made a pitch for higher taxes and more social sector expenditure. These reflect traditional Democratic Party positions. But there was a strong partisan slant in an election year, which will ensure that American polity will remain polarized. On China, the President was cautious. He mentioned ‘We want competition with China, but not conflict.’ While the ‘work paper’ presented in the Chinese Communist Party National Congress emphasized Taiwan and hiked up defense expenditure. Biden Cautious on China President Biden defined his position in contrast to Trump’s positions on a range of foreign and domestic policy issues. He mentioned ‘Putin of Russia is on the march, invading Ukraine and sowing chaos throughout Europe and beyond.’ He underlined his administration’s commitment to Ukraine and NATO. He contrasted this with his predecessor’s position, ‘a former Republican President’, who told Putin, ‘Do whatever the hell you want.’ On China, he struck a more cautious note. He said ‘our GDP is up’, and ‘our trade deficit with China is down to the lowest point in over a decade.’ He said that America ‘is standing up for peace and stability across the Taiwan Strait.’ He added that he has ensured ‘that the most advanced American technologies can’t be used in China’s weapons.’ President Biden reiterated traditional Democrat positions on abortion, gun control, and taxes, contrasting them with the Republican positions. He said that a $2 Trillion tax cut by the previous administration ‘overwhelmingly benefits the very wealthy and the biggest corporations and exploded the federal deficit.’ On his part, he suggested that the corporate minimum tax be raised from 15 percent to 21 percent. Whatever the merits of the positions of the two parties, this suggests that the American polity will remain deeply divided. The division already extends to Congress, where the Democrats control the Senate, while the Republicans control the House. The House decides the budget. Thus, President Biden will have little control over the budget process necessary to support his agenda. He will have to depend upon the monetary policy, which is controlled by the Federal Reserve and the Treasury. The administration will have to depend upon debt, rather than taxes, to finance social spending and economic programs. China Addresses Economic Concern The Chinese Premier did not address the customary press conference which used to give the outside world a peek in the closed world of the Middle Kingdom. The increase in defense expenditure (7.5 percent) outstrips the projected growth of Chinese GDP (5 percent). This is perhaps a more significant outcome than the downgrading of the prime minister’s office. It also has direct implications for India’s security. The reference to the Taiwan Strait issue in the working document omitted the caveat ‘peaceful resolution’. The outcome focused on economic issues. At the same time, the role of the state in the economy would grow. China will support its companies in setting up e-commerce businesses abroad. This is a response to growing protectionism. China has also welcomed FDI. This is a signal to the US companies who have invested a great deal in China in the past. Wall Street, particularly the US financial sector, still regards China as a good bet. The Chinese would like to lure them to build up a hedge against Trump's win in the Presidential elections which might see a return to tariff wars. The ‘work paper’ presented by the Chinese Government to the People’s Congress emphasized that renewable energy has exceeded coal in terms of capacity. This is a wordplay. There is a distinction between capacity and generation. Renewables due to intermittency and low PLF have relatively lower generation. In China's case, the renewables share in the generation is 24 percent according to IEA. However, coal still accounts for more than 60 percent of generation. This year alone, nearly 200 GW of new coal-based power plants have been sanctioned or are under construction. This is nearly 80 percent of India’s total installed capacity. The Chinese are highlighting the increase in renewables to disguise the much larger thermal power sector which China is expanding at a furious pace. The larger message is that China would like to capture more of the meager carbon space remaining before it ‘peaks’ its emission in 2030. And Money Continues to Flow The US economy is in strong shape, while the Chinese economy is slowing down. Yet the money is pouring into the Chinese economy. According to a Wall Street Journal report, Hang Seng and Shanghai Composite index both went down last year. MSCI World Index was up by 22 percent. This was a 33 percent difference over the MSCI China index, which went down by 11 percent. Yet global investors are investing more in China. They feel that recovery when it comes, will bring excellent returns over current Chinese stock valuations. Out of $ 18 billion that went into global equity funds, $ 12 billion went into Chinese equity. Out of the $ 20.8 billion investment that went into the Emerging Markets, $ 19.8 billion inflows went into Chinese stocks.
Source: Money Control
Have you ever paused to ponder the fate of those bags of old clothes you carefully deposit into the charity bin at the end of the street or within the bustle of a supermarket parking lot? It’s easy to imagine that those garments get magically transformed into fresh, wearable fashion, but in the UK, the reality is much more complicated. The truth behind clothing donation and recycling is a journey fraught with complexities often not visible to the public eye. Textile waste – the clothing that we all buy, use and dispose of – is a significant environmental problem that often goes unnoticed. Globally 88% of our clothing still ends up in landfills. The mountains of textile waste will be getting higher as garment production rises at an alarming rate. In 2000, global manufacturers churned out 50 million tonnes of textiles, according to the European parliament. By 2020, this figure had more than doubled to 109 million tonnes and global textile production is predicted to grow to 145 million tonnes by 2030. While writing my chapter for the book Recycling and Lifetime Management in the Textile and Fashion Sector, I researched the policies and technological advancements that facilitate the process of textile recycling. Used or unwanted clothing gets collected from various sources, including donation centres, textile recycling bins, charity stores or direct from consumers. Once collected, the textiles undergo sorting at UK facilities based on what type of material it is, colour and condition. Garments that are deemed reusable – those that aren’t stained, soiled or torn – are shipped to countries in Africa and Asia. However, market sellers in these countries that receive these used garments often complain that the clothing is not fit for resale and ends up in a landfill. A textile sorter and processor based in the east Midlands told me that approximately 40% of sorted garments were not fit for reuse and needed a recycling solution. Fibre-to-fibre recycling is different to reuse. Reuse means that a garment is fit to have a second life and can be donated to charity or resold on websites such as Vinted. Fibre-tofibre recycling is the process of breaking down the material of the garments so that it returns to its original state of a fibre, which may resemble pieces of fluff. That’s either done mechanically or chemically. Mechanical recycling involves chopping up old clothes into tiny pieces – a bit like shredding paper. Materials are sometimes moistened with water to enhance the tearing process. The fibres are then separated using a process called “carding”, which involves using a machine to comb out and straighten the fibres, ready to be used to make new products. To transform the fibres into textile yarn, mechanically recycled fibres are mixed with virgin fibres – because these new fibres are longer, they add strength to the yarn when spun. Chemical recycling involves breaking down fragments of old clothes into smaller parts. These are then cleaned and purified using filters and separators. Chemical solvents are used to break down polymers, remove dyes and dissolve other additives. Once clean, broken down fibres can be spun to make new yarn, just like making cotton from scratch. This recycled yarn can be woven into fabric using industrial weaving machines. Transforming textiles Mechanical recycling produces short lengths of fibre and results in poor quality yarn. Relying on raw virgin fibre to add length and strength can be costly. Chemical recycling of polyesters, which are made from plastic, can create harmful tiny particles of microplastics in the air and waterways. Volatile organic compounds – chemicals that exist in gaseous form – can be inhaled and cause health problems, such as damaged liver, kidneys and central nervous system, and cancers affecting the lungs and blood. The process also emits carbon dioxide and methane, both greenhouse gases that contribute to global warming. Expanding these recycling methods is expensive and potentially damaging to the environment. Systematic change begins when influential fashion brands reduce overproduction and waste by streamlining their production processes and designing products that are easy to recycle as part of a more circular economy. While green chemistry and circular design solutions could make recycling textile waste more efficient, more effective and safer for humans and the planet, the issue of excess waste still needs to be addressed. As shoppers, we can all make a difference by being mindful of our purchasing habits, appreciating the clothing we already own and repairing items instead of discarding them.
Source: Wasterecycling.mag
Bangladesh's ready-made garment (RMG) sector contributes 15.4 percent of the country's greenhouse gas (GHG) emissions while the textile sector emits 12.4 percent, leading in carbon emissions and posing a challenge to achieving GHG reduction targets set in the Paris Agreement. On the other hand, despite contributing significantly to the GDP, these industries suffer from operational inefficiency, exacerbated by the use of outdated machinery and ineffective energy management. The surge in industrial energy intensity raises concerns, casting a shadow over Bangladesh's ability to manage escalating energy demands while meeting its GHG emission reduction commitments. Textile and RMG manufacturers grapple with insufficient financial incentives, a shortage of technical expertise, and an absence of an enabling environment, which hinder energy-efficient practices. Failure to overcome these barriers jeopardises Bangladesh's nationally determined contributions (NDC). The updated NDC commits to a 6.73 percent GHG reduction in the unconditional scenario and an additional 15.12 percent reduction in the conditional scenario with international support by 2030. The textile and RMG industries in Bangladesh exhibit high energy intensity. Inefficient production processes and limited natural resource supply significantly contribute to elevated energy consumption, resulting in heightened CO2 emissions. The adoption of energy-efficient technologies poses a substantial financial hurdle for many enterprises. Additionally, Bangladesh heavily depends on fossil fuels such as coal and natural gas for its energy mix. This reliance on non-renewables accentuates the industries' carbon footprint. Furthermore, these industries generate significant volumes of waste, encompassing chemicals and by-products from dyeing and finishing processes. Inadequate waste management practices amplify environmental pollution, placing additional strain on the ecosystem. Finally, the industry's notable contribution to water pollution arises from the discharge of untreated waste into water bodies, posing risks to both the environment and human health. In response, Bangladesh Bank introduced the Program to Support Safety Retrofits and Environmental Upgrades in the Bangladeshi Ready-Made Garment (RMG) Sector Project (SREUP) in 2018. With 64.29 million euros in consortium support, this project has extended credit fund support to 23 factories and granted investment fund support to seven factories. One such success story is Snowtex Outerwear Ltd, whose factory achieved significant reduction in light energy consumption, decrease in carbon footprint, and savings in machine energy usage. This case emphasises the broader potential for positive transformation within the industry through strategic interventions and collaboration. Beyond Bangladesh, success stories from Welspun India and Mavi in Turkey showcase proactive sustainability integration in the textile industry. Welspun India prioritises sustainability through advanced water management, solar power integration, and responsible raw material sourcing. The company's commitment extends to sustainable farming practices, ensuring environmental and social well-being in its supply chain, showcasing how major players can actively contribute to environmental conservation, reduce carbon footprints, and champion ethical business practices. Mavi, a well-known Turkish denim and apparel brand, has been actively involved in sustainable practices within the RMG industry, showing a commitment to using organic cotton and recycled materials into its manufacturing processes, reducing the environmental impact of raw material production. As Bangladesh endeavours to harmonise economic growth with environmental responsibility, key steps include incentivising energy-efficient initiatives, nurturing technical expertise, and formulating policies that champion sustainable practices. This would involve encouraging textile and RMG manufacturers to embrace energy-efficient practices through a comprehensive incentive system comprising tax breaks, subsidies, or financial benefits, igniting motivation for investments in energy-saving technologies.
Source: The Daily Star
Exports of Pakistan’s textile sector showed marginal growth in March, clocking in at $1.3 billion compared to $1.26 billion recorded in the same month of the previous year, a year-on-year increase of 3%, showed provisional data released by the All Pakistan Textile Mills Association (APTMA) on Tuesday. This is the fourth successive month when textile exports have posted a year-on-year increase. However, the country’s textile exports in the first nine months of the fiscal year 2023-2024 were down by 0.3% or $0.04 billion to $12.44 billion. Pakistan’s textile exports up 20% YoY in February, clock in at $1.41bn. Meanwhile, on a monthly basis, exports declined nearly 8% as compared to $1.41 billion in February. Textile exports are crucial for the South Asian economy, which faces a shortage of foreign exchange, and has to rely on debt-creating dollar inflow to shore up reserves, as they make up for the bulk of the its exports. Last month, APTMA strongly rejected an increase of 223% in gas tariff in the last one year and termed it as detrimental for the export-oriented textile industry of Pakistan. APTMA said the export-oriented textile industry of Pakistan is losing market share in the global marketplace due to the alarming rise in energy tariff. It demanded the federal government reverse its decision of an astronomical increase in gas tariff to make textile exports competitive in the international market. APTMA observed that the recent increase in gas tariff has proven to be disastrous for the export-oriented textile industry, which has the largest share of 60% in total exports of the country.
Source: Be Recorder
