Traders have threatened to go on indefinite strike across the state. Textile businessmen in Gujarat seem to be in a fighting mood against the upcoming Goods and Service Tax (GST). They are angered by central government’s decision to levy GST on fabric, saying that traders are not in a position to comply with the GST requirements. They have also threatened a strike either from June 24 or July 1. A meeting of traders in textile sector was held in at New Cloth Market in Ahmedabad on Thursday. Representatives of around half a dozen trade bodies were unanimous about pressing the demand to keep fabric out of GST regime and have decided not to get registered on the GST Network. “Traders are unanimous. They don’t want any tax on fabric, which has till now been exempted from taxes. There is a panic in business community. They are aware of what bureaucrats can do out of their discretion. We will not accept any assurance from the government. The complications in GST regime will slow down the growth of textile sector and so we do not want GST on fabric,” Maskati Mahajan president Gaurang Bhagat told DNA after the meeting. The meeting was attended by president and office bearers of New Cloth Market, Panchkuwa Kapad Mahajan and even Hathlaari Mandal, which delivers the goods in the market. Bhagat and Kirit Patel, president of Panchkuwa Mahajan, will participate in a meeting in Delhi where representatives of associations of textile traders from across the country will decide on the roadmap to oppose GST. Patel said that if the government is unrelenting in its stand inspite of repeated representations, the traders will have to toughen their stand in order to press the demand.
Source: DNA
New Delhi: Union minister Smriti Irani today chaired a workshop to assess the readiness of the textiles sector PSUs, export promotion councils and other stakeholders on the Goods and Services Tax (GST). Several transition issues relating to procedures to be followed on registration, migration, refund, credit for duty paid on stock, etc were discussed in detail during the meeting, which was also attended by Revenue Secretary Hasmukh Adhia. "During the one-hour talk by the Revenue Secretary, he gave a brief overview and the philosophy behind the tax structure for the textile sector and clarified the doubts raised by industry participants," an official statement said. On May 4, the textiles ministry had directed all its export promotion councils and public sector undertakings to conduct awareness camps on basic features and procedures of the GST, set to be rolled out from July 1. "Workshop conducted today will further benefit officials, EPCs and PSUs in spreading awareness among traders/ manufacturers across the country," Irani said in a series of tweets. "Most PSUs have completed or are at different stages of registration, migration/transition of their software to a GST compatible software," she said. The Clothing Manufacturers Association of India (CMAI) made a presentation on a software named Adhigam, which has been developed by TCS, for use of CMAI members. The software offers multi-lingual solutions and essentially aims at making the small manufacturers and traders GST ready. The software also enables traders to scan the existing invoice and translate it into a GSTN-compliant invoice. It operates on the principle of inter-locking and will enable matching and marrying of Input Tax credit of invoices in the value chain, with automatic reminders to the vendor to pay tax when he has not done so. About 175 officials of the ministry, its PSUs and members of export promotion councils participated in the workshop. The workshop was held in partnership with the National Academy of Customs, Excise and Narcotics under the Department of Revenue, the Ministry of Finance. PTI RSN MKJ
Source: India Today
SURAT: With the textile traders continuing their protest demanding 'No GST', the textile processors have given an ultimatum to their parties, including the brokers, that they won't be able to process the unfinished fabrics of the traders who have not sought The processors have also threatened to return the stock of unfinished fabrics of the traders failing to get GST registration to their godowns. GST registration. Industry sources said that an estimated 100 crore metres of fabrics worth over Rs 3,000 crore is processed in more than 450 textile dyeing and printing mills located at Sachin, Pandesara and Palsana every month. As per an estimate, more than 100 metres of unfinished fabrics have been dumped in the processing mills in the last fortnight. Textile processors stated that unfinished fabrics worth crores of rupees is lying at the processing units and that the goods will be returned to the traders, who have not sought GST registration before June 30. The processors have also unanimously decided not to give any deliveries of the finished fabrics to the non-registered traders after July 1. "The stock lying in the processing units of the non-registered traders should be returned before June 30, otherwise the processors will be liable to pay the GST on the old stock. We have been clearly asked by the government not to deal with the non-registered entities, otherwise we will have to share the tax liability," said a leader of textile processing association. Industry sources said that the textile GST Sangharsh Samiti Meanwhile, the Sangharsh Samiti office-bearers are camping in New Delhi to meet the PM, FM and the members of the GST council to press for their demands. The samiti members have invited leaders from other textile associations across the country to press for their demands. is operated by a few people, who are instigating the entire traders' community. If the government accepts the 'No GST' demand of the traders, what about the other sectors? Sangharsh Samiti spokesperson Champalal Bothra said, "We will try to convince the government for three days. If nothing comes out, then we will announce the indefinite bandh call in the textile markets starting from June 24."
Source: The Times of India
The textile industry has urged the finance ministry to reduce the proposed 18% GST rate on man-made fibres and yarn to at most 12% to somewhat correct a historical imbalance in favour of the country’s cotton-based textile structure. The textile industry has urged the finance ministry to reduce the proposed 18% GST rate on man-made fibres and yarn to at most 12% to somewhat correct a historical imbalance in favour of the country’s cotton-based textile structure. The textile industry has urged the finance ministry to reduce the proposed 18% goods and services tax (GST) rate on man-made fibres and yarn to at most 12% to somewhat correct a historical imbalance in favour of the country’s cotton-based textile structure. While the government has kept GST for cotton fibre and yarn at 5%, the same as now (although there is no excise duty on cotton fibre and yarn now, states impose a 5% VAT), the tax rates for man-made fibre and yarn have been fixed at 18%. Although the current tax incidence for man-made fibre and yarn producers is roughly around the same level (17.5%, including both excise duty and value-added tax), it didn’t bridge the duty existing differential with the cotton fibre and yarn. Noted textiles expert DK Nair said three things need to be sorted out urgently. First, this was a great opportunity for the government to fix the GST rate for man-made fibre at best at 12% to encourage companies to diversify from cotton-based textile segment. Second, the GST rate for man-made fibre-spun yarn has been fixed at 18%, way above the current tax incidence of around 5% (while there is an optional excise duty, states impose a 5% VAT). Third, while the GST rate for job work in textile yarn and fabric manufacturing segments has been announced, the government is yet to declare the tax rates for the job work for garments and made-ups, which will lead to unnecessary confusion. According to O P Lohia, chairman of Indo Rama Synthetics, the GST should have a uniform rate structure for all fibres and this disparity between natural and man-made fibres must end. Confederation of Indian Textile Industry (CITI) chairman J Thulasidharan hailed the government’s decision to trim the GST rate for job work in textile yarn and fabric manufacturing activity from the proposed 18% to 5%. But he also pointed out that the high rates of 18% announced for MMF, fabric and yarn, dying and printing units and embroidery items can lead to an increase in input costs and can adversely affect the entire textile value chain. This will come as big blow to small fabric manufacturers in powerloom, knit and processing segments and prevent seamless flow of input tax credit and allow breakage of value chain, he added. CITI has already taken up the issue with the textile ministry. The industry has been demanding a reduction in the excise duty on man-made fibres, saying such a disparity is preventing domestic synthetic fibre producers from scaling up operations. The huge duty difference has ensured that India’s textile market remains cotton-driven, in a stark contrast with the trend globally, apart from eroding the country’s export competitiveness in the man-made fibre segment. While man-made fibres account for around 60-70% of the world’s total fibre consumption, they make up for just 30-40% of Indian fibre demand (with cotton textiles contributing the rest). The excise duty on man-made fibres, which was as low as 4% in 2009-10, was raised by the previous government. This came as a shocker to synthetic fibre producing companies that had invested much in expanding capacity to cater for growing domestic demand for man-made fibre, according to Lohia. Also, as Lohia pointed out, the hike in the excise duty massively dented growth in the synthetic fibre segment—from roughly 10% in 2009-10 to a meagre 0-5% annually in recent years.
Source: Financial Express
Messe Frankfurt hosted a seminar on GST at Pragati Maidan, New Delhi. Industry experts like Sharad Kohli, Founder of KCC Group; Bimal Jain, Chairman of Indirect Tax Committee of PHD Chambers of Commerce and Sanjay Goyal, President of HPMF, north chapter shared their views on the impact of GST. Bimal Jain and Sharad Kohli speaking at the event MESSE FRANKFURT with the support of Home Textile Association hosted a GST seminar at Pragati Maidan, New Delhi. The seminar saw industry experts who shared views on the impact and preparedness of GST. Advocate Bhanu Lamba moderated the session. He started by saying, “GST will be more beneficial to the organised sector rather than the unorganised sector.” Bimal Jain, Chairman of Indirect Tax Committee of PHD Chambers of Commerce gave his expert comment on the current GST scenario, “GST will bring the two per cent increment in GDP growth. We are moving towards the biggest indirect tax reform since independence.” Speaking more about the benefits of GST, Jain illustrated, “After the commencement of GST, 17 indirect taxes will merge into one basket being the biggest advantage. India is struggling with the cascading tax structure, which will also be removed. The most important advantage will be one nation one tax. Businessmen are now not required to open multi warehouses, which will ultimately save the cost.” Sharad Kohli, Founder of KCC Group, stated, “The GST council could not agree on the E-Way bill, which will cause a little hindrance. The E-Way bill is a digital document which was supposed to take care of the movement of goods from one state to another. Since the Finance Minister has announced that the old rules of transit will be continued, the clarity on the physical movement of goods will remain in the grey area.” The discussion was led by numerous queries. Sanjay Goyal, President of HPMF, north chapter attended the session. On asking about his views on GST impacting the purchase sector, he said, “July will be a chaotic situation and I am advising my clients to get prepared for some hustle. For us the integration of technology is the biggest challenge as the SAP (Systems Applications and Products) and the ERP (Enterprise Resource Planning) has to be linked with the GST system.” For Goyal, the new GST regime will bring a positive impact globally. Adding to this he said, “In terms of financial impact I don’t see it in a huge bracket. Over a period of time, it will eventually ease out all the operations. For the FMCG companies, GST will simplify the process of moving products across the border.”
Source: Business World
The Goods and Services Tax (GST) is set to become operational from July. Rationalisation of taxes is long felt need and the GST structure is expected to deliver. It would replace a cascade of 11 Central and State taxes with a concertina of eight tax rates, defeating the original idea of having a three-slab tax structure. The current GST structure on goods ranges from 0 to 28 per cent. It is expected to inflate prices of consumer durables like television, air-conditioner, refrigerator and washing machine which may go up by around 3 per cent to 4 per cent. Smaller home appliances like electric irons, mixer grinders and juicers will too become dearer as all will come under one GST slab. However, these should not have been equated with white goods like ACs etc. And, the tax on these would be one of the highest globally and certainly maximum among countries of our size. All home appliances and consumer durables will now attract 28% tax, which varied for different products earlier. The government should use this opportunity to rationalise rates rather than simply going ahead with mechanical grouping. For durables like TV, AC etc, the cumulative tax (excise and VAT) was around 23% to 28% depending on the State. Prices in cities like Mumbai may reduce as there was additional octroi of 5% on consumer goods. Further, the tax burden of white goods companies would not rise much due to input tax credit which means companies will get credit for all taxes paid. For example, if a company’s GST liability on a product is Rs 500, it will pay only Rs 400 and will get tax credit of Rs 100 for taxes paid by its vendors and suppliers earlier. In the realm of health, the switchover to GST is likely to affect prices of medicines which may fluctuate in coming months. Medicines other than baby food, life saving drugs and contraceptives, may feel the push and pulls due to varying GST rates. However, there is no tax on baby foods, 5% on life saving drugs and 12% on all other drugs and 18% on food supplements. There is a possibility of a price push for drugs which are proposed to be taxed in the 12% slab under GST as against prevailing average taxation of around 9%. The increase in prices of schedules drugs, according to NPPA, is expected to be around 2.29%. Many life-saving drugs that are part of the National List of Essential Medicines (NLEM) are included in the list of scheduled formulations which comprise 25-30% of the pharma retail market. In fact, the Drug Prices Control Order (DPCO), companies have been allowed to increase their MRP by up to a minimum of 10 per cent annually. Regarding education, the GST Council has rightly decided to exempt services provided by educational institutions to its students. However, services to higher educational institutions are not GST free and they will have to pay when availing these, obviously diluting objectives of keeping educational institutions outside the GST ambit. It needs to be clarified that GST exemption on procurements is available only to schools from pre-school to higher secondary level. The input or supply of services such as transportation, catering, housekeeping, services relating to admission or conduct of examination in higher educational institutions will bear a GST levy, which partly defeats the purpose. Though the effect may be marginal, some sections feel this may be a deterrent to foreign students. Coming to garments, GST rates have been reasonably fixed for at 12% for those costing above Rs 1,000 while those below would attract a moderate 5 per cent. The industry has been paying VAT of 5.5-6% and 7-7.5% for garments above Rs 1,000. Similarly, footwear below Rs 500 will attract a modest 5% while those priced above Rs 500 will be taxed 18%. Presently, taxes are more and the switch raises possibility of lower prices. The GST on gold and silver has been reduced to 3 per cent which is welcome by the industry, especially for artisans in Bengal, as it would give a further boost to the sector, which employs millions. This is a new category as also rough diamonds which has been kept at 0.25%. Some items like fruits and vegetables have been exempt. When bread could be exempt from tax, pickles and ketchup have been recently reduced to 12% and cashew nuts from 12-5%, GST for biscuits shouldn’t have been fixed at 18% as this is unreasonable. For industrial products, rates have been fixed at 18% while today a manufacturer pays around 28-30% as taxes, which means a 10% saving. The lower tax rate, simplified tax structure, technology driven easy tax compliance system would obviously give a push to manufacturing and help in increasing its share of GDP from current 17.4% to 25% by 2025. Equally important decision is fixation of tax on coal at 5% against 11.30%, obviously aimed to boost electrification in the country. It is believed that GST would raise productivity and prices. How much of this would become a reality by combining GST with a clearly articulate manufacturing strategy to attract global investments, create jobs and make India a large manufacturing nation, remains to be seen. Moreover, the buoyancy in the economy expected after GST becomes operational, as envisaged by revenue secretary, would be awaited. In the hospitality sector, there has been some change with hotel rooms below Rs 1,000 not attracting GST, those costing Rs 1,001-Rs 2,500 to be taxed 12% and between Rs 2,500-Rs 7,500 18% from the earlier 28%. But 5-Star category hotels, i.e. above Rs 7,500, tax will be 28%. Similarly, restaurants in 5-Star hotels will face 18% levy instead of 28% approved earlier. A study by HVS, global hospitality research and consulting firm, found that India would move ahead of cities like Colombo, London, Chicago, Dhaka and Tokyo. The Council significantly addressed concerns of small businesses by increasing the threshold of turnover for entities that could opt for the composition scheme to Rs 75 lakh from Rs 50 lakh earlier. These traders with turnover below Rs 75 lakh could opt for the scheme and pay taxes at 1%, 2% and 5% respectively, thereby relieving them from GST’s complexity and instead pay a percentage of their turnover. Meanwhile in the GST Network, the company readying technology backbone for the new regime, dismissed fears that online tool would be too cumbersome for small businesses, arguing that even under the current regime they are using web-based service for VAT and service tax registration. Further, it was working on a scalable model and had enough capacity to deal with a large number of invoices that may be generated -- estimated 3.2 billion.
The 3-stage mechanism has been put in place by the GST Council to deal with consumer complaints, drawing upon the experience in Australia. Finally, one cannot deny that the tax structure has been so designed so as to provide relief to the common man. Though the objective of one nation-one tax has not been fulfilled, the beginning has been made in right direction. However, in the coming two years or so, the government would need to try to at least club the taxes into three slabs.
Source: The Hans India
An expert committee has recommended one-time infusion of ₹494.81 crore in capital for comprehensive and sustainable revival of the 17 textile mills in the government and cooperative sectors. “Practically, all 17 are government-controlled to the extent of 98.5 per cent, thanks to periodic interventions that converted loans in the existing cooperative mills to equity,” said P Nandakumar, chairman of the expert committee. One-time infusion. The infusion of funds has to be time-bound with all 17 mills getting benefited at the same time. “It would depend on the state government’s political will,” Nandakumar told BusinessLine here. But he doubted if the government has grasped the enormity of the task or the potential it holds for heralding a socio-economic change across the lower rungs of society. “The sector engages thousands of people. There’s no time to lose here,” he said. The expert committee had carried out its work in association with the Coimbatore-based South Indian Textile Research Association. It has suggested that the government implement the revival strategy over a period of nine months.
Local demand
Nandakumar said the committee is convinced that the time-bound implementation would put all the mills back on the growth path and start yielding a profit from the third year itself. “The infusion needs to be one-time in all its sense. The mills wouldn’t need a paise more and would be able to upgrade on their own in five years. Imagine, the government has pumped in over ₹500 crore into the mills in the last 10 years for practically no return,” he said. All stakeholders, including workers, stand to benefit from the revival strategy. As productivity and quality go up, wages too would follow suit. Workers would be able to earn ₹20,000 a month, on an average. What the government seems not to factor in is the huge demand for clothes within the state itself. The per capita consumption is 34 metres in Kerala against an all-India average of 16 to 17 metres. Size of the local market is ₹3,500 crore.
‘Kerala brand’
To cater to this demand, the expert committee favoured the development of a ‘Kerala brand’ in the garment sector by combining the capacities of the spinning mills, the powerloom and handloom sectors. “This is exactly why we’ve recommended a comprehensive and sustainable revival strategy for the sector, even going beyond our brief in the process,” Nandakumar said. Centrally-monitored for raw material procurement and sales, among others, will bring economies of scale to play and and equip the mills to face market competition. Capacity utilisation is expected to go up from the present 55.40 per cent to 98.50 per cent as a result of implementation of the strategy in totality and across the sector.
Source: Business Line
Cotton farming has seen an increase this year as the data from the Ministry of Agriculture and Farmers Welfare shows that in 2016, 12.25 lakh hectares of land was used for cotton, whereas this year the land use is 16.67 lakh hectares. Cotton is sowed after the second week of June, with the first harvest or picking taking place 120 days post sowing, in its 175-180 day span. Cotton farming has seen an increase this year as the data from the Ministry of Agriculture and Farmers Welfare shows that in 2016, 12.25 lakh hectares (lh) of land was used for cotton, whereas this year the land use is 16.67 (lh), reported the Indian Express. The dip in the cultivation of pulses is evident too from 2016’s 3.63 lh to 2.22 lh this year. The huge margin in the production of these different crops was attributed to the state agencies’ response in buying them from the farmers, who require immediate compensation for picking the cotton and using pesticides. Raosaheb Vittalrao Gavhane, a farmer from Hiswan Khurd in Jalna taluka told the Indian Express, “I did not even have to go to the mandi [to sell the cotton, as in the case of tur or pigeon pea]. The traders themselves came to buy the kapas (raw un-ginned cotton) straight from my fields at Rs 5,600 per quintal this February, compared with Rs 4,000 in the previous year.” Cotton is sowed after the second week of June, with the first harvest or picking taking place 120 days post sowing, in its 175-180 day span. The farmers who have basic irrigational access harvest about 12 to 15 quintals per acre, depending upon the availability of the drip irrigation. Cotton is relatively harder than soybean, which can be washed off in heavy rainfall. It can also be picked four to five times despite rains and at least twice if the weather isn’t favourable, told Usha Barwale Zehr, Joint Director of Research at Maharashtra Hybrid Seeds Company, told the Indian Express. Farmers generally have to bear the cost of picking which comes at Rs 6000 per acre. Pesticides like Confidor, Actara and Polo amount to Rs 4000 an acre, excluding the Rs 200 labour on each round of spraying the chemical. Other expenses include weeding, fertilizer, and seeding, which costs the least to a farmer. The crop choices then left for a farmer which yield better returns in the kharif season are cotton, pulses, and soybean. Another crop that is in demand this season is maize which is in high demand as poultry feed.
Source: Financial Express
India and Australia will intensify cooperation in the field of textiles, clothing, handloom and fashion, with the government approving an agreement between the two nations in this regard. The Memorandum of Understanding between the Ministry of Textiles and the Department of Foreign Affairs and Trade, Australia will benefit weavers. The Union Cabinet chaired by Prime Minister Narendra Modi approved the pact at a meeting here. As per the agreement, the participants will jointly identify appropriate measures to connect the Australian and Indian textile and fashion sectors; promote collaboration and international engagement between those sectors. They will also nurture the skills and talents; promote economic opportunities and encourage professional engagement, training, skill development and public exhibition of products derived from these sectors in the two countries. However, Intellectual Property Rights of either side will stand protected. "The MoU will facilitate cooperation in relation to matters within the textiles and fashion sectors that may be of mutual interest and benefit to the participants," an official statement said. "The weavers including ancillary workers will be benefited from activities to be taken under MoU," it added. The initiative also aims to increase the handloom fabric production by establishing market linkages, encourage innovation in designs and techniques for improvement in design capability, diversification of product lines and value addition and provide better access to domestic and export markets so that weavers are able to get continuous employment and improve their living standards. According to the statement, Australian fashion designers producing garments using Indian woven and other textiles for Indian and Australian market have evinced interest to work with stakeholders in India which includes cooperation with textiles, handloom sector with a view to provide state-of- the-art designing of textiles and handloom products and market them in India as well as international market. The Department of Foreign Affairs and Trade (Government of Australia) had proposed to sign an MoU with the Ministry of Textiles in this regard.
Source: The Times of India
The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 43.85 per barrel (bbl) on 22.06.2017. This was lower than the price of US$ 44.45 per bbl on previous publishing day of 21.06.2017. In rupee terms, the price of Indian Basket decreased to Rs. 2828.16 per bbl on 22.06.2017 as compared to Rs. 2871.41 per bbl on 21.06.2017. Rupee closed stronger at Rs. 64.50 per US$ on 22.06.2017 as compared to Rs. 64.60 per US$ on 21.06.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on June 22, 2017 Previous trading day i.e. 21.06.2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
43.85 (44.45) |
|
(Rs/bbl) |
2828.16 (2871.41) |
|
|
Exchange Rate |
(Rs/$) |
64.50 (64.60) |
Source: PIB
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1109.06 |
USD/Ton |
0% |
6/22/2017 |
|
VSF |
2181.51 |
USD/Ton |
0.20% |
6/22/2017 |
|
ASF |
2240.07 |
USD/Ton |
0% |
6/22/2017 |
|
Polyester POY |
1134.68 |
USD/Ton |
0% |
6/22/2017 |
|
Nylon FDY |
2708.59 |
USD/Ton |
0% |
6/22/2017 |
|
40D Spandex |
5124.35 |
USD/Ton |
-1.41% |
6/22/2017 |
|
Polyester DTY |
2518.25 |
USD/Ton |
0% |
6/22/2017 |
|
Nylon POY |
1434.82 |
USD/Ton |
0.51% |
6/22/2017 |
|
Acrylic Top 3D |
2401.12 |
USD/Ton |
0% |
6/22/2017 |
|
Polyester FDY |
2855.00 |
USD/Ton |
0% |
6/22/2017 |
|
Nylon DTY |
1361.61 |
USD/Ton |
0% |
6/22/2017 |
|
Viscose Long Filament |
5797.84 |
USD/Ton |
0% |
6/22/2017 |
|
30S Spun Rayon Yarn |
2840.35 |
USD/Ton |
0% |
6/22/2017 |
|
32S Polyester Yarn |
1695.43 |
USD/Ton |
0% |
6/22/2017 |
|
45S T/C Yarn |
2693.94 |
USD/Ton |
0% |
6/22/2017 |
|
40S Rayon Yarn |
2298.64 |
USD/Ton |
0% |
6/22/2017 |
|
T/R Yarn 65/35 32S |
3001.41 |
USD/Ton |
0% |
6/22/2017 |
|
45S Polyester Yarn |
2269.36 |
USD/Ton |
0% |
6/22/2017 |
|
T/C Yarn 65/35 32S |
1830.13 |
USD/Ton |
0% |
6/22/2017 |
|
10S Denim Fabric |
1.36 |
USD/Meter |
0% |
6/22/2017 |
|
32S Twill Fabric |
0.85 |
USD/Meter |
0% |
6/22/2017 |
|
40S Combed Poplin |
1.18 |
USD/Meter |
0% |
6/22/2017 |
|
30S Rayon Fabric |
0.66 |
USD/Meter |
0.22% |
6/22/2017 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
6/22/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14641 USD dtd. 22/06/2017). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Pakistan’s textile and clothing exports fell 1.98 per cent year-on-year to $11.234 billion during the first 11 months of the current fiscal year mainly due to lower proceeds from raw material and low value-added products, such as cotton yarn and fabrics. Data released by the Pakistan Bureau of Statistics on Tuesday showed the decline in export proceeds was also evident in rupee terms during the July-May period of 2016-17. On a month-on-month basis, the export proceeds fell 12.24pc in May negating the overnment’s claim of reviving the growth in the sector despite offering huge subsidies. Exports of value-added products grew in terms of both value and quantity during the July-May period. Product-wise details show exports of ready-made garments rose 4.15pc while those of knitwear dropped 1.85pc in July-May. Exports of bedwear edged up 3.22pc, while those of towels fell 4.77pc. In primary commodities, exports of cotton yarn witnessed a year-on-year decline of 3.64pc while those of cotton cloth and yarn (other than cotton) dropped 5.81pc and 27.32pc, respectively. Exports of made-up articles, excluding towels, dropped 0.45pc and those of tents, canvas and tarpaulin grew 52.85pc. Proceeds from art, silk and synthetic textile exports declined 33pc while exports of raw cotton also recorded a year-on-year decline of 47.14pc. The preferential access to the European Union under the GSP+ scheme hasn’t boosted proceeds due to a slump in demand. Overall export proceeds in July-May were down 3.13pc to $18.540bn. Last year, the government announced a textile policy that gave a 4pc rebate on the exports of readymade garments on a 10pc incremental increase over the preceding year, 2pc on home-textiles and 1pc on fabric. No support was announced on raw material or yarn exports. Jan 15 onwards, the government has not only increased the rebate to 7pc for readymade garments, but also allowed cash support of 4pc on yarn and grey cloth under the Rs180bn package announced by the prime minister. Out of the total allocations, an amount of RS107.5bn was allocated to textiles sector – Rs87.5bn for drawbacks and Rs20bn for withdrawal of duties/taxes on import of cotton and machinery. Moreover, an amount of Rs12.5bn was the annual allocation for drawbacks on export of non-textile value added sectors. The duty free import of textile machinery was continued for fiscal year 2015-16. The sales tax zero-rating regime for the five export sector was continued in the fiscal year 2017-18. Similarly, spinning and ginning sector have been included in the long term financing facility. The export finance rate is currently at 3pc, which is the lowest in a decade.
Source: Dawn
Textile industrialists and labourers staged a demonstration against anti-industry and anti-export attitude of the government in front of Pakistan Textile Exporters Association (PTEA) offices. Demanding release of refunds and supply of energy at competitive prices, the demonstrators chanted slogans and held placards in favour of their demands. Textile workers also staged demonstrations at their factories in different areas of the city and placed protest banners. Textile sector gets only Rs4b out of Rs180b. The non-serious attitude of the government institutions is the root of the problems affecting the country’s textile industry, which has an annual export turnover of $14 billion, said PTEA Chairman Ajmal Farooq. Policymakers are not serious about resolving issues of the textile industry and the situation is worsening day by day pushing the biggest job-providing industry towards disaster, he added. Elaborating on the consequences of the crisis, he said that industrial wheels have come to a halt as a result of extreme cash flow crunch. Billions of rupees of exporters are stuck in refund regime and they are badly deprived of liquidity. Despite several promises for repayment of outstanding refunds, the government has still not fulfilled its commitment. He termed Prime Minister’s Export-led Growth Package a positive one but non-allocation of funds for the incentives of this package has shattered all hopes. Only Rs1 billion have been released in six months under this package out of Rs180 billion, said Farooq. Furthermore, no effective measures have been proposed in budget 2017-18 for industrial progress, increase in exports, reduction in production cost and enhancing the competitive edge of Pakistani goods in international market, the chairman deplored. Textile industry to protest in front of parliament after Eid. PTEA Vice Chairman Muhammad Naeem was of the view that the textile sector was facing a severe crisis. It was underutilised, due to which the country was not fetching the full potential of foreign exchange earnings. Terming energy prices 10% higher than the competing countries of India and Bangladesh, he demanded the supply of gas to export-oriented textile industry at the price of Rs400/mmbtu. Former PTEA chairman Khurram Muhktar also stressed on stepping up efforts to save the sector and demanded immediate payment of stuck refunds.
Source: The Express Tribune
All Pakistan Textile Mills Association (APTMA) will organize a textile convention along with all textiles associations of the country in second week of July. In textile convention APTMA, including all textile industries, will hold consultation and consensus for future plan of action for the growth of the industry in country, Secretary General, APTMA, Anis ul Haq told APP here on Thursday. He emphasized upon competitive business environment to compete with regional competitor for enhancing the country’s exports. “We want to compete with the regional competitors including India, Bangladesh, Stri Lanka and Vietnam for enhancing the county’s export to achieve the target of economic stability and growth,” he said. Anis ul Haq said that Pakistan required export led growth for economic stability of the country. Textile industry contributed 60 per cent in total exports of the country, which was considered backbone of economy, he added. He hailed Rs 180 billion “Export enhancement package” adding the package would give huge relief to the textile sector for enhancing the exports in the sector. Secretary General, APTMA stressed the need for implementing this package soon which also gave relaxation on the import of textile machinery for the modernization and enhanced the capacity of the sector. He said the package would strengthen the country’s economy by increasing the country’s exports. Anis ul Haq said that price of energy was an important element of production particularly for spinning, weaving and processing industry. He said that availability of energy at regionally competitive price was important. He urged for proving ease of doing business in the country.
Source: Pakistan Today
HCM CITY — The International Finance Corporation (IFC), a member of the World Bank Group, has helped Vietnamese garment-textile outsourcers save over 20 per cent of water and energy consumption. The information was released at a workshop reviewing the programme on enhancing resource-efficient consumption, held by IFC in HCM City on Wednesday. The sustainable production project has been carried out in 28 enterprises and factories nationwide doing outsourcing for VF Group and Target Group over the past 18 months, mostly during the stages of cutting, sewing, dyeing, printing and laundry. The project, worth US$9.9 million, has applied measures to enhance resource efficiency, saving $15 million for Vietnamese enterprises by reducing water, energy and chemicals consumption. Once all recommendations under the project are implemented plus an additional investment of $26 million in new equipment is made, the targeted enterprises will save up to 2.8 million cu.m of water and 562,000 tonnes of greenhouse gas per year in the next two years. Kyle Kelhofer, country director of IFC for Việt Nam, Cambodia and Laos, said the results of the project in the first stage have proven economically efficient thanks to the saving of resources. With fast growth of the nation’s economy as well as in the garment-textile sector, measures to enhance resource efficiency in the garment and textile sector will open up important opportunities for Việt Nam to boost sustainable growth in the private sector, he said. They will also help Vietnamese factories save production cost while promoting resource-efficient consumption and sustainable development, he added. IFC plans to work with other leading global brands to promote implementation of the programme for Vietnamese outsourcers. The garment-textile sector is the second largest earner of foreign currency for Việt Nam, earning over $27 billion from exports per year.
Source: Viet Nam News
Strikers shut down dozens of factories that produce textiles for large U.S. companies, such as Levi Jeans and Fruit of the Loom. Workers temporarily blocked the road to the Toussaint Louverture International airport in Port-au-Prince on May 19. Thousands of textile workers in Haiti have stopped work in factories and taken to the streets to demand of improved working conditions in the country’s maquiladora export industry. For more than three weeks, workers have mobilized to demand higher wages, an eight-hour workday and protections against increased quotas across the industrial centers of Port-au-Prince, Carrefour, Ounaminthe and Caracol. The strike follows the annual commemoration of International Workers’ Day. Currently, workers receive a daily wage of roughly 300 gourdes, or about 4.77 U.S. dollars (USD), for a day’s work. Strikers are demanding that the wage is raised to 800 gourdes, or 12.72 USD—and that the eight-hour day be respected. Workers face poor labor conditions in the country’s assembly-line factories, where they produce textiles for large U.S. companies such as Levi Jeans and Fruit of the Loom. Factory owners have long called for the use of violence against workers’ rights activists in Haiti and fired anyone known to associate with the unions. The workers are supported by a coalition of independent labor unions, SOTA-BO and PLASIT-BO, which represent textile workers. These unions are associated with the independent worker’s movement, Batay Ouvriye, or Workers’ Fight. “We cannot work with dignity for 300 gourdes per day,” said Didier Dominique, the spokesman for Batay Ouvriye, in an interview over the phone. Dominique points out that it is impossible for a family to survive on the low wages, in part due to the out of control inflation in the Caribbean country. "It's gotten to the point where I can't take care of my son. I don't see any future in this," said Esperancia Mernavil, a textile worker associated with the Gosttra union, told the Associated Press. On May 19, strikers shut down dozens of factories and temporarily blocked the road to the Toussaint Louverture International airport in Port-au-Prince as part of their actions. They then marched in the direction of the Presidential Palace before they were met by riot police, who deployed tear gas against the workers. The Association of Industries of Haiti has denounced the strike, stating that the strikes are being led by isolated “militants and syndicalists.” They also levied accusations against strikers stating that they attacked the factories, as well as their fellow workers within, leading to the temporary closure of factories on May 19. The workers have maintained their willingness to continue the strike, but cracks in their mobilization are beginning to show. Haiti’s constant crisis of poverty makes it difficult for the strike to maintain momentum over the long run. “After three weeks of protests, people are getting tired,” said Dominique. “Families are beginning to have financial issues.” But Batay Ouviye and the other unions are already planning their next actions in the event that the strike comes to an end. The current strike continues years of actions to demand an increase in wages and improved labor conditions for textile and factory workers. The first minimum wage was established in the 1980s, and it was raised again in 1995. Since then, the minimum wage has not kept up with inflation. “Every year it gets more and more difficult to survive,” said Dominique. “The inflation takes more and more of the worker’s money. There is no stability. Because of this the workers are demanding higher wages.” In 2008, the Haitian parliament discussed raising the minimum wage in order to keep up with inflation. But these efforts were derailed by pressure from the United States, with the U.S. Embassy telling officials that any efforts to raise the minimum wage would hurt the economy and threaten trade agreements. Secret embassy cables exposed by Wikileaks in 2011 highlight the collusion between the United States and businesses to keep the minimum wage low. These revelations led The Nation Magazine and Haiti Liberte to conclude, "U.S. Embassy in Haiti worked closely with factory owners contracted by Levi’s, Hanes, and Fruit of the Loom to aggressively block a paltry minimum wage increase." Despite the pushback from the United States and companies, the Haitian Parliament successfully raised the minimum wage to roughly 5.11 U.S. dollars for an eight-hour workday in 2014. Yet, this raise does little to assist families that teeter on the poverty line. “The companies take millions of dollars from the country, and we are left working in poor conditions for little money,” said Dominique. “It is slavery all over again.”
Source: The Express Tribune
Zimbabwe's cotton sector is going through revival following a $42 million input subsidy availed by the Government, which saw renewed interest in production from thousands of small scale farmers in major producing areas across the country. About 350 000 households received frees inputs from the Government, enough to establish a minimum hectarage of two. The scheme, which has a three year horizon started in 2015 and ends next year. A recent visit to Gokwe and Chiredzi, some of the country's major cotton producing areas show vast tracts of land been turned into "white fields." "Growing cotton had become unviable because the financing models used by contractors were very exploitative," Mrs Sabina Muchenje who farms in Chitekete said. "The contractors gave us inputs and when they bought the crop from us, they offered low prices such that when they deduct value of their inputs, we were left with nothing. We were essentially providing free labour and that is why most of us had abandoned cotton." Last year, Zimbabwe produced about 30 000 tonnes of cotton, according to the Ministry of Agriculture, the lowest crop size in 24 years. The success of cotton in Zimbabwe was built around the Cottco inputs credit scheme which started in 1992 and ensured that farmers received adequate funding, agronomic support and quality incentives resulting in 95 percent of production coming through the contract scheme. However, the opening up of the sector to new players was the death knell for Zimbabwean cotton. From being one of global cotton's top quality producers the sector had virtually collapsed with production levels falling to less than 10 percent of normal volumes. Yields crashed, thereby killing off viability and increasing levels of side-marketing. This created a toxic downward spiral of low yields, high side marketing and low inputs support.
Source : allAfrica.com
Bangladesh is among the 10 worst countries for workers, according to a report by labour rights group International Trade Union Confederation or ITUC. The ITUC Global Rights Index 2017 report states that the continued suffering inflicted by the government and employers on trade unionists in the country led to Bangladesh receiving a rating of 5, which means that workers have ‘no guarantee of rights’. The other countries on the 10-worst list are Colombia, Egypt, Guatemala, Kazakhstan, the Philippines, Qatar, South Korea, Turkey and the UAE. India, Pakistan and Myanmar also received a rating of 5 from the ITUC, while Nepal and Sri Lanka scored a better rating of 3 -- ‘regular violator of rights’. “In too many countries, fundamental democratic rights are being undermined by corporate interests,” said ITUC General Secretary Sharan Burrow. The ITUC report published on June 13 says police brutality, mass arrests and discrimination are the main contributors to the repression of labour organisation in Bangladesh. It highlights the reaction to the garment workers protests in Ashulia in December 2016 as a major example of such repression. Thirty-five union leaders and workers’ rights activists were detained following the week-long strike and complaints were filed against more than 1,000. The report says Bangladesh Garment Manufacturers and Exporters Association had suspended production at 59 factories in retaliation for the strikes. Two factories affected by the strikes, Windy Apparels and Fountain Garments, have filed criminal complaints against 239 workers, while Ha-Meem Group was reported to be filing complaints against as many as 1,000 workers, the report says. “By early January 2017, more than 1,600 workers had been suspended and police had filed cases against 600 workers and trade union leaders,” ITUC said. The ITUC also notes Prime Minister Sheikh Hasina’s order to strikers to return to work and the labour minister’s threat of stern action against them. Anti-union discrimination is also present at the systematic and practical levels in the country, the report says. Only about 10 percent of Bangladesh’s 4,500 garment factories have registered unions in part because the labour law requires an unreasonably high 30 percent of workers to agree to form a union and mandates excessive registration procedures, while the government has vaguely defined powers to cancel a union’s registration, according to ITUC. Anti-union dismissals could be seen in the case of Chevron, the report argues, which dismissed 145 workers in December 2016 after they attempted to unionise in May 2015. The Habib fashions garment factory tried to block the formation of a union by workers and then shut down in August 2016 in retaliation, the report says. The murder of Barguna Road Transport Labourers Union leader Md Haider Ali in September 2016 is also mentioned as evidence of anti-union activity. According to the overall report violence against and the repression of workers is on the rise across the world. The number of countries experiencing incidents of physical violence and threats against workers has risen 10 percent since the 2016 report. Fifty-nine countries saw attacks on union members in 2016.
Source: bdnews24.com
Zara and H&M are among the fast fashion giants that have been found to source viscose from manufacturing sites whose processes pose serious health and environmental dangers, according to a new report from Changing Markets Foundation.
When the foundation visited 10 such sites in China, India and Indonesia, it found that untreated hazardous waste was leading to severe air and water pollution, and for people who lived near the manufacturing sites, physical and mental disorders. Viscose clothing. Source: Zara. The apparel industry loves viscose, a semi-synthetic cellulose fiber derived from wood pulp. As the material is inexpensive and versatile, drapes well and feels soft (in fact, it used to be referred to as artificial silk), viscose is used by fast fashion brands and high fashion alike. Its provenance from trees gives it the appearance of being natural, making it a prime candidate for corporate green washing. Although viscose itself does not damage human health or the environment, the chemicals used in its manufacturing process can be highly toxic. One of those chemicals, carbon disulfide, can damage the nervous system to the point of insanity in factory workers — though not consumers, as viscose doesn’t retain residue from chemicals used in manufacturing. Viscose production is highly concentrated. About 70% of production is controlled by 10 companies, and, as the above graph shows, roughly two-thirds of global viscose production takes place in China. India and Indonesia are the second and third largest producers, respectively. Environmental regulations in these three top viscose-producing countries are hardly stringent. Factor in mass production as a result of steady consumer demand for cheap, trendy clothing, and you have what the Changing Markets Foundation calls a “toxic” combination. Despite growing awareness of the ugly environmental and social consequences of fast fashion, the trend is not slowing. The NGO Greenpeace forecasts that clothing sales will rise to $2.1 trillion by 2025 (as of 2015, that figure was $1.8 trillion). When investigators from the Changing Markets Foundation visited viscose factories in China, India and Indonesia, they found that the manufacturers were dumping untreated wastewater into local water sources. The resulting heavily contaminated water has affected fishermen’s livelihoods, and it is also hypothesized to be behind nearby areas’ increasing cancer rates. According to the report, H&M sources from six of the polluting factories that the foundation investigated. Other viscose buyers like Zara, ASOS, Tesco and Marks & Spencer are also linked to the polluting factories. However, the specificity of the information on H&M’s suppliers also reflects on the company’s greater transparency, compared to its peers. Out of the 45 major brands that the foundation contacted, only H&M provided a full list of the viscose factories that it works with. Last year, Yale University Press published “Fake Silk: The Lethal History of Viscose Rayon,” by Paul D. Blanc, a professor of medicine at University of California, San Francisco. Blanc traced the century-long history of viscose production, which — if you haven’t guessed from the book title already — continues to sicken and kill factory workers. To reiterate, there’s nothing wrong with viscose per se. The fault lies with carbon disulfide, hydrogen sulfide, sodium hydroxide (caustic soda) and sulfuric acid, all chemicals typically used in viscose manufacturing, as well as allowing the chemicals to escape into the surrounding environment. In addition to nervous system ailments, studies have linked carbon disulfide exposure to birth defects, leukemia, miscarriages, kidney disease and coronary heart disease. For every pound of viscose produced, roughly 10 grams–14 grams of carbon disulfide and two grams of hydrogen sulfide are emitted. The latter can cause vision problems and changes in behavior. The Changing Markets report found that factories were illegally dumping wastewater into rivers at night, causing water from nearby wells to be undrinkable. Semi-processed viscose was found scattered around the village by the largest viscose factory in Indonesia, which is also the second largest in the world. A sulfuric acid leak last year from another Indonesian viscose plant sickened more than 40 nearby residents, but no measures were taken to prevent another similar accident, according to the report. Many companies have viscose sourcing policies that pledge to avoid using wood pulp from endangered forests, but these policies tend not to cover the environmental and health costs of the manufacturing process. As Blanc wrote in “Fake Silk,” viscose “deserves to be every bit as familiar as the cautionary tales of asbestos insulation, leaded paint or the mercury-tainted seafood in Minamata Bay.”
Source: Spend Matters
Advanced Functional Fabrics of America (AFFOA) has opened new headquarters close to MIT campus, an initiative which represents significant MIT investment in advanced manufacturing innovation. The facility includes a Fabric Discovery Centre that provides end-to-end prototyping from fibre design to system integration of new textile-based products. The centre will be used for education and workforce development in the Cambridge and greater Boston community. AFFOA headquarters also includes startup incubation space for companies spun out from MIT and other partners who are innovating advanced fabrics and fibres for applications ranging from apparel and consumer electronics to automotive and medical devices. MIT was a founding member of the AFFOA team that partnered with the Department of Defence in April 2016 to launch this new institute as a public-private partnership through an independent nonprofit also founded by MIT. AFFOA’s chief executive officer is Yoel Fink. Prior to his current role, Fink led the AFFOA proposal last year as professor of materials science and engineering and director of the Research Laboratory for Electronics at MIT, with his vision to create a “fabric revolution.” That revolution under Fink’s leadership was grounded in new fibre materials and textile manufacturing processes for fabrics that see, hear, sense, communicate, store and convert energy, and monitor health.
From the perspectives of research, education, and entrepreneurship, MIT engagement in AFFOA draws from many strengths. These include the multifunctional drawn fibres developed by Fink and others to include electronic capabilities within fibres that include multiple materials and function as devices. That fibre concept developed at MIT has been applied to key challenges in the defence sector through MIT’s Institute for Soldier Nanotechnology, commercialisation through a startup called OmniGuide that is now OmniGuide Surgical for laser surgery devices, and extensions to several new areas including neural probes by Polina Anikeeva, MIT associate professor of materials science and engineering. Beyond these diverse uses of fibre devices, MIT faculty including Greg Rutledge, the Lamott du Pont Professor of Chemical Engineering, have also led innovation in predictive modeling and design of pure polymer fibres, fibre processing and characterisation, and self-assembly of woven and nonwoven textiles for diverse applications and industries. Rutledge coordinates MIT campus engagement in the AFFOA Institute, and notes that “MIT has a range of research and teaching talent that impacts manufacturing of fibre and textile-based products, from designing the fibre to leading the factories of the future. Many of our faculty also have longstanding collaborations with partners in defence and industry on these projects, including with Lincoln Laboratory and the Army’s Natick Soldier Research Design and Engineering Centre, so MIT membership in AFFOA is an opportunity to strengthen and grow those networks.” Faculty at MIT across several departments and schools have also created innovative new product concepts ranging from sweat-responsive sports apparel advanced by Professor Hiroshi Ishii’s group to design of self-folding strands of multi-material fibres by Professor Skylar Tibbits. Professors Neri Oxman and Craig Carter developed new modeling and materials fabrication capabilities that facilitated the first 3-D-printed dress featured at Paris Fashion Week in 2013. “The proximity of AFFOA’s headquarters and this new Fabric Discovery Centre to MIT’s campus is an important new way for MIT to connect our students and faculty with the national AFFOA network of industrial and academic partners,” says Maria Zuber, MIT vice president for research.
As the Manufacturing USA institutes include a strong focus on education and workforce development, AFFOA’s new Fabric Discovery Centre can draw from national expertise as well as local strengths at MIT in project-based learning. For example, Alex Slocum, professor in the Department of Mechanical Engineering, has led multiple design classes that have resulted in several startups in innovative fabrics and apparel, including Ministry of Supply, founded by four MIT alumni in 2012 and now located on Newbury Street in Boston. MIT professors Steven Eppinger and Maria Wang have offered a product design and development class jointly with the Rhode Island School of Design, geared toward MIT Sloan School of Management MBA students. Such efforts nucleated at MIT can now be expanded and piloted to benefit more members of AFFOA in the region and nationwide. “MIT’s engagement in AFFOA will help speed adoption of new manufacturing technologies developed at MIT and elsewhere, and help prepare our region’s textile innovators to be able to both invent it here and make it here,” notes Professor Krystyn Van Vliet, director of manufacturing innovation for MIT’s Innovation Initiative.
Source : Fibre2fashion
The Yarn Expo Autumn 2017 will kick off from October 11 at Shanghai, China. The leading trade platform is expanding by 115 per cent as more companies recognise its effectiveness to mirror the latest industry trends. The three day exhibition is an ideal opportunity for overseas buyers to gain access to leading domestic suppliers in the industry. Suppliers from Asian and European countries will showcase their latest collection of natural and blended yarns including cotton, wool, flax / regenerated flax, and man-made fibres and yarns, as well as specialty products including elastic, fancy and blended yarns. "Our Yarn Expo fairs have further solidified their status as amongst the best business platforms in the yarn and fibre industry in recent years," said Wendy Wen, senior general manager, Messe Frankfurt (HK). "The dynamism of a number of industry sectors in Asia recently has ensured that, each March and October, Shanghai is the place to be to discover the latest innovations, see all the industry leaders under one roof and place orders for the upcoming season. In particular, we are seeing strong demand for chemical fibres from emerging countries in Asia at present, as well as a lot of innovation happening with fancy yarns which is attracting buyers from the likes of Indonesia, India and Korea. Yarn Expo has also proved a successful platform for Uzbekistan suppliers to launch their products in China, and they are doing well in this market vis-à-vis their more established competitors." Apart from India Pavilion and Birla Planet Pavilion, Uzbekistan and Pakistan exhibitors will further enrich the sourcing options for buyers with their cotton yarns. Uzbek cotton now accounts for over 80 per cent of the total cotton consumption in Hebei province of Northern China. Along with Yarn Expo Autumn 201, three other textile trade fairs are held concurrently from October 11-13 in the same venue - Intertextile Shanghai Apparel Fabrics – Autumn Edition, PH Value and the China International Fashion Fair. Yarn Expo Autumn is organised by Messe Frankfurt (HK), The Sub-Council of Textile Industry, CCPIT, China Cotton Textile Association, China Wool Textile Association, China Chemical Fiber Association, China Bast & Leaf Fibres Textiles Association, and China Textile Information Centre.
Source: Fibre2Fashion
The International Finance Corporation (IFC), a member of the World Bank Group, has helped Vietnamese garment-textile outsourcers save over 20 percent of water and energy consumption. The information was released at a workshop reviewing the programme on enhancing resource-efficient consumption held by IFC in Ho Chi Minh City on June 21. The sustainable production project has been carried out in 28 enterprises and factories nationwide doing outsourcing for VF Group and Target Group over the past 18 months, mostly in the stages of cutting, sewing, dyeing, printing and laundry. The project, worth 9.9 million USD, applied measures to enhance resource-efficiency, saving 15 million USD for Vietnamese enterprises thanks to reducing water, energy, chemicals consumption. Once implementing all recommendations under the project plus an additional investment of 26 million USD in new equipment, the targeted enterprises will save up to 2.8 million cubic metres of water and 562,000 tonnes of greenhouse gas per year in the next two years. Kyle Kelhofer, Country Director of IFC for Vietnam, Cambodia and Laos, said the outcomes of the project in the first stage have proven economically efficient thanks to resource saving. With fast growth in the nation’s economy as well as in the garment-textile sector, measures to enhance resource-efficiency in the garment and textile sector will open up important opportunities for Vietnam to boost sustainable growth in private sector, he said. They will also help Vietnamese factories to save production cost while promoting resource-efficient consumption and sustainable development, he added. IFC plans to work with other leading global brands to promote implementation of the programme in Vietnamese outsourcers. The garment-textile sector is the second biggest earner of foreign currency of Vietnam, earning over 27 billion USD from export per year.
Source: VietNamNet
