Textile to capital goods, banking to I-T, start-ups to energy, the economy’s downward spiral is leaving a trail of job losses across both old and new economy sectors. In the near absence of consolidated employment numbers, disaggregated data collated from across these sectors by The Indian Express points to spreading employment distress in a market where fresh hiring opportunities are increasingly limited.
Consider:
* In the textiles sector, in the last three financial years, 67 units are reported to have closed down across the country, impacting over 17,600 workers — this is as per official Union Textile Ministry data restricted to just the organised segment of the cotton and man-made fibre textile mills. This excludes the small scale industries (SSI) section of the textile value chain where shutdowns and job losses are reported to be far higher.
* Capital goods major major Larsen & Toubro (L&T) laid off about 14,000 employees across businesses during the first two quarters of the fiscal ended March 31, 2017, terming it a “strategic decision.”
* During the first quarter of this fiscal, three of the five biggest IT companies that together employed 878,913 people at the end of the June quarter, saw their workforce shrink by over 1800 people. TCS saw its workforce decline by 1,414 people, Infosys Ltd saw a net decline of 1,811 while Tech Mahindra Ltd, reported that its workforce shrunk by 1,713 people. The numbers would have been worse but for Wipro Ltd and HCL Technologies Ltd which reported net additions to their workforce.
* HDFC Bank’s total employee headcount came down by 6,096 during the January-March 2017 period – from 90,421 to 84,325. In the preceding October-December 2016 quarter, the headcount was down by 4,581. Other private sector banks are also reported to be cutting down on staff strength.
* Job losses have hit the renewable energy sector, one of the big thrust areas of the government. Wind gear supplier Suzlon Energy Ltd and turbine maker ReGen Powertech are learnt to have retrenched well over 1,500 employees over the last six months, while equipment maker Inox Wind Ltd has not paid salaries to sections of its staff over the last two months.
* A total of 212 start-ups shut shop in 2016, 50 per cent higher than in the previous year, according to data analytics firm Tracxn. The big casualties in 2016 included PepperTap and TinyOwl. This year has seen more shutdowns, including ventures such as Stayzilla and Taskbob.
This job distress comes when three of the key drivers of the economy — private investment, private consumption and exports — are not firing, with largely government spend driving growth. The textiles and apparel sector, where exports account for about 40 per cent of production, is down due to a combination of external factors and the impact of subdued domestic demand, alongside structural issues such as lack of economies of scale, labour woes and high overheads including electricity. Demonetisation and the transition to GST has hit smaller players hard. The number of workers affected due to closure of cotton and man-made fibre textile units (the bigger units that comprise the non-SSI segment of the industry) during 2016-17 was 4,356 on account of the closure of 18 units, according to official Textile Ministry data on non-SSI units. During the previous two years, the numbers were 7,938 workers affected by the closure of 27 units in 2015-16 and 5,384 workers affected from the closure of 21 units in 2014-15, taking the cumulative figure to over 17,600 workers impacted by the closure of 67 units in the last three years. “Most of these (shut units) are in the powerloom sector. The non-SSI unit shutdown figures for the past three years is broadly in line with some of the previous years,” a senior Ministry official said. Details of closure of textile units in the decentralized sectors — powerloom etc — are not compiled and therefore were not available, he said. Another official said the Textile Ministry has been implementing the Textile Workers Rehabilitation Fund Scheme (TWRFS) and under this, interim relief is provided to textile workers rendered unemployed because of closure of private non-SSI mills. “It has been decided to merge this scheme with Rajiv Gandhi Shramik Kalyan Yojana with effect from April 1, 2017”.What is disconcerting is the level of distress in the small and medium scale segment of the textile and garments industry which official government data does not capture. On exports, India’s flat garment export performance in its single biggest market — the US — has not helped matters. India’s apparel exports to the US from January-July 2017 were up just 0.21 per cent at $2.33 billion as against an over 6 per cent jump reported by Vietnam which exported garments worth nearly three times India’s exports at $6.52 billion during the period. The GST rollout has further hit SME players in textile hubs such as Surat, Bhiwadi and Ichalkaranji. According to Tarachand Kasat, president of the GST Sangharsh Samiti in Surat, units in the filament yarn and man-made fibre product business in Surat are losing around Rs 1.25 crore a day since the July GST rollout. Capital goods firms are struggling as most of the downstream sectors are saddled with excess capacity and low demand. L&T’s chief financial officer R Shankar Raman said that the company had taken a strategic decision to resize a business that was not doing well. “If there is time to get the business back to normality, it is important to reduce under-recoveries. So the jobs that we are finding redundant, we are allowing people to move on,” Raman said. Most of the layoffs were reportedly in the company’s financial services business and the minerals and metals segment even though the company did not offer an official comment on the segments where people were let go. HDFC Bank signalled that falling staff strength may continue as greater efficiencies set in. “This is really a function of…what is happening on the digital side. We do believe that with increased digitisation, certain lines of transaction like counters, etc. actually reduce,” deputy managing director Paresh Sukthankar said in Mumbai on April 21. The worrying aspect, though, is on two counts: sectors such as financial services and IT/BPO, which have led the limited buoyancy in the labour bureau’s quarterly establishment surveys, are laying off people on a mass scale and new economy sectors that are the thrust areas of the NDA Government, including renewable energy and start-ups, are also facing a downward slide. On the IT sector lay-offs, industry lobby group National Association of Software and Services Companies (NASSCOM) said there is no information on number of tech sector workers who have lost their jobs but said the IT-ITeS industry is estimated to directly employ nearly 39 lakh people, an addition of around 175,000 people over the year FY 2016-17. The renewable sector is seeing a wave of lay-offs. Asked about its layoffs, Suzlon did not offer a formal response but a company executive said that “a manpower cost optimisation” exercise is on. ReGen Powertech, which retrenched at least 300 people from a factory it closed down in Rajasthan, is reportedly still in the process of laying off staff across units, sources said. ReGen’s official response to queries sent by The Indian Express played down the layoffs. “We have laid off nearly 200 people in the company… The initiative of optimising the overheads has been taken by almost all wind-turbine manufacturers including Regen Powertech,” said Madhusudan Khemka, managing director Regen Powertech, in response to a query by The Indian Express. Noida-based Inox Wind, which has not paid salaries to most employees over the last two months, did not respond to emails seeking comment. Inox Wind manufactures nacelles and hubs at a plant located in Una in Himachal Pradesh and rotor blades at facilities and tower plants in Gujarat and Madhya Pradesh.
LAYOFFS AND SHUTDOWNS
* 67 textile units shut down between FY’15 and FY’17, impacting over 17,600 staff
* L&T laid off 14,000 staff in first 2 quarters FY’17. HDFC Bank’s net jobs losses for FY’17: 3,230
* During Q1 of FY’18, TCS workforce down by 1,414; Infosys by 1,811; Tech Mahindra by 1,713
* Suzlon Energy Ltd, ReGen retrenched 1,500 over last 6 months
* 212 startups wind up operations in 2016
Source: Indian Express
The textile industry has asked the government to consider reimbursement for embedded duties such as market committee fee and cross subsidy surcharge. Industry representatives also plan to meet the Union Commerce Minister this week to take up this and other issues such as ‘low’ ROSL rates. Following the revision of duty drawback rates, the Centre had announced new rates for the Rebate of State levies (ROSL) for exports last week. The sector saw ROSL rates as ‘very low’ and said this would hit exports of textile and clothing products.
‘Hold discussions first’
Industry sources said that the government should first hold discussions with the industry on duty drawbacks, take into account the actual duties paid and ‘only then work out the drawback rates’. For instance, for processed fabric, GST for the fabric is 5%. But, input tax rates are higher. So, there is accumulation of input tax credit that is not refunded. This is not covered under the drawback either. With exports falling, there is concern around debt levels. In the case of yarn, monthly exports have fallen to 90 million-100 million kg compared with 120 million kg-140 million kg seen in 2014. Though a chunk of this went to China, about 30 million kg reached markets such as Latin America. Now, exports to China are declining and ‘there is barely any export to new markets’. Spinning capacity is under the threat of turning into non-performing assets, said another source. To revive exports, “the government should bring back Merchandise Exports from India scheme and export incentive scheme for cotton yarn,” said P. Nataraj, chairman, Southern India Mills’ Association.
Source: The Hindu
Haryana government today said it is preparing a new textile policy for Panipat and Sirsa, which will be notified by the end of October this year. This was stated by Chief Minister Manohar Lal Khattar who was interacting with representatives of various industrial associations in Panipat today, an official release said. The chief minister said the government has been providing single window system to industrialists for setting up new industries in the state and this system has yielded positive results. He urged the industrialists to think positive and be patient, and assured them that their all demands would be considered sympathetically. Highlighting the grievances related to old industry area, an industrialist said the industrial area was set up in 1948 and estimated Rs 30.94 crore had been sent for construction of roads in the area. In this regard, Khattar said that tenders would be issued this month. Another industrialist informed that six villages in industrial area near refinery were divided in three blocks A, B and C and suggested to merge the entire industrial area in one block. The office bearers of Haryana Chamber of Commerce said the CLU (Change of Land Use) powers vested with the deputy commissioner for one acre of land should be enhanced to two acres of land and the limit of power connection be increased from 50 kilowatt to 100 kilowatt. Khattar said that these ideas would be considered for including them into textile policy. The chief minister said all industrialists should pay special attention to safety standards in their industries so as to avoid any untoward incidents.
Source: PTI
The Local Textiles Workers Association on Monday, (2nd October, 2017) picketed at the Trades Ministry, following the refusal by the ministry to officially set up a task force to curb the issues of importation of pirated goods, and smuggling among others. The workers who were clad in red t-shirts, red hats and other paraphernalia were at the Trade Ministry to picket against the delay in inaugurating a task force to help curb smuggling of fake textiles into the Ghanaian markets. The workers who have on several occasions voiced out their grievances told Citi Business News the situation was getting out of hand hence their intended picketing. A man who gave his name as King—a member of the textile workers association said the issue is negatively impacting on their business. “It used to be happening back then there was a lot of action which helped in at least improving the fortunes of our constituents but that was put on hold by the change of administration. The pirating and smuggling is affecting us so much, now it feels as if it’s gotten out of hand that is why we are on the neck of the ministry to aid us with a taskforce to help us wipe them off our markets” he said. The General Secretary of the Local Textile Workers Union, Abraham Koomson confirmed that the ministry has issued a letter which stating their readiness to inaugurate a tax force on the 11th of October to ensure their grievances is addressed. According to him, the letter was issued to them whilst they were picketing. He however expresses mixed feelings as to whether the tax force will work diligently to ensure the issues of smuggling and pirated goods are completely curbed. “Our only problem is that if after the inauguration they will work as planned because sometimes even after these taskforce has been inaugurated then you see politics set in and that prevents them from doing their work well. Partially we want to see the task force working”. He pleaded with the ministry to ensure that the task force delivers their duties without any distractions. “If the taskforce is inaugurated they should be allowed to function” he added. Meanwhile, Minister for Trade and industry Alan Kyerematen assured that government is working diligently to resolve the issue within the shortest possible time. “We have known that this has been a perennial problem dealing with imported textiles which unfortunately has created serious challenges for our local textile manufacturing. As a government, we are committed to making sure that we find a lasting solution to this problem and that is why we have had constant engagements, consultations with all the textile companies at the highest level, the management and the union leaders” the minister stated.
Source: citibusinessnews.com
The Ministry of Commerce and Textile has assured textile exporters of timely release of funds under the Prime Minister’s “Trade Enhancement Package” of Rs162 billion. “We paid Rs9 billion out of a total of Rs15 billion in the last fiscal year in the form of duty drawback for the textile sector,” a senior official of the ministry told APP on Monday. He added that the government had accorded priority to the textile sector and was helping to increase its competitiveness in order to enhance the country’s exports. Replying to a question, he said the government was planning to expand the scope of the trade package in an attempt to include other sectors including pharmaceutical products. The government has also relaxed rules for the import of textile machinery to pave the way for modernisation of manufacturing units and enhancing their capacities. The official claimed that the trade package would bring the cost of doing business down substantially. Primary textile industry reels from uncertainty over gas pricesUncertainty over the prices of imported liquefied natural gas (LNG) and the ongoing gas shortage in the industrial sector have severely jeopardised investments in the country’s primary textile industry. Uninterrupted supply of gas and electricity is a must for the textile industry, as blackouts significantly degrade the quality of spin, sources from the industry told the Dhaka Tribune. However, the government has halted new gas connections indefinitely, and is preventing the factories from setting up generators to produce captive power to ensure electricity supply during the power cuts, said sources from the factories. As a result, new investors are losing interest in the primary textile sector, while existing businesses are facing hardship due to the hike in prices of gas and electricity. Moreover, a proposal for a further 14.78% rise in power prices has been submitted for the government’s approval. According to Bangladesh Textile Mills Association (BTMA), only 17 new companies have started production in the last five years. Of the 17 mills, 10 are spinning mills, five are weaving mills, and the remaining two are dying units. The association represents about 1,500 members from the textile sector. President of BTMA and Managing Director of Square Textiles Limited Tapan Chowdhury told the Dhaka Tribune the production cost of his factory has gone up by Tk22 crore over the past year due to the power price hike. “A good number of factory owners are facing trouble as they do not have any forward linkage industry. They are struggling to survive,” added Tapan. The BMTA president further said: “Over the last two years, gas prices have seen a 222% jump. On top of that, the government is going to import LNG. If the prices of imported gas are more expensive than the local supply, that would hit the industry even harder. The spinning industry will have difficulty just surviving.” Crisis in the primary textile industry may create a negative impact in the country’s $28 billion apparel industry, as the former industry supplies the lion’s share of raw materials to the latter. Tapan added that the government should plan for multiple energy sources and should allow importing duty free heavy furnace oil (HFO). in a bid to reduce the cost of per unit electricity production. “It costs Tk11 to generate per unit electricity after purchasing HFO from the Bangladesh Petroleum Corporation (BPC), while it would cost Tk6.5 per unit if it was directly imported with duty free facility,” Tapan told the Dhaka Tribune. “We have already started talks with the government to make HFO import duty-free so that the primary textile sector can run well,” he said. Meanwhile, BMTA Directer Razeeb Haider told the Dhaka Tribune: “The textile sector supplies raw material to the RMG sector. If there is any adverse impact on the primary textile industry, it would consequently hurt the apparel sector, as manufacturers will have to buy the material from other countries at a higher price.” The textile industry contributes more than 12% to the country’s overall GDP. 85%-90% of the demand for knit and 40% of the demand for woven fabrics for the export oriented RMG sector are met by the primary textile sector. According to the BTMA, most of their member factories have captive generators to ensure instant power supply for which the factory owners need gas or HFO. But the older power generators consume more fuel and gas to produce electricity. So the factory owners have been looking for new energy efficient technologies with a view to reducing power consumption. To get rid of the existing power crisis and to be equipped with uninterrupted power supply for smooth production, primary textile millers urged the government to allow the import of energy efficient machinery. They have also demanded duty-free or bonded warehouse facility for importing the HFO needed for their captive power generators, amid the ongoing gas shortage. Currently, importers have to pay a 35% duty when importing HFO. “The primary textile industry, including spinning and weaving, consumes more energy than the RMG industries. So energy shortage would create a serious impediment in attracting the investors to this sector,” said former BTMA president Jahangir Alamin. “To end the existing crisis, the older machineries have to be replaced with the new energy efficient ones. There has been a plan from the government to make such replacement.”The millers are still confused about the future price range of imported LNG, as the government is yet to provide any sort of information in this regard.
Source: Dhaka Tribune
Private firms running cargo terminals at central government-owned major port trusts will have the option of migrating to a new liberal, market-driven rate structure finalised by the government in 2013. The older cargo handlers were excluded earlier. They currently operate under a restrictive rate regime finalised in 2005. The migration option, though, will be contingent upon the existing PPP operators offering their terminals for re-bidding in which they will have a so-called right of first refusal (RoFR) to match the highest revenue share quoted and continue running the terminals for the balance period of their 30-year concession. “It’s official now. We have issued instructions to major port trusts to give an option to the BOT operators falling under the 2005 rate guidelines to move to the 2013 rate guidelines through re-bidding,” a spokesman for the Shipping Ministry told BusinessLine. The framework including the terms and conditions for the shift to a de-regulated regime is being finalised, the spokesman added. The decision to allow a shift comes as the Ministry and older PPP cargo handlers — some operating for more than 15 years — have been locked in a legal battle on migration. The 2013 rate regime guarantees a raise of as much as 15 per cent on the base reference or ceiling rate (set upfront at the beginning of the contract) during each year of the 30-year contract if the terminal operator complies with certain performance standards. The PPP operators would also be entitled to a further hike every year to account for rising prices because the base rates are indexed to the WPI to the extent of 60 per cent. In comparison, the 2005 guideline penalises operators for efficiency. If a terminal loads more than the projected volumes in a tariff cycle, its rate will be cut in the next tariff cycle. Adopting this rule, TAMP has ordered rate cuts at many facilities, resulting in legal challenges that are languishing in courts for a decision.
Logic for re-bids
“Migration to the new tariff regime will result in doubling of revenue to PPP port operators. There can’t be a free ride. The benefit accruing from migration to the 2013 norms should be shared with the government-owned ports. And, the best way to discover the quantum of benefit to be shared is the market (through re-bidding). Let the market decide what should be shared,” the Ministry spokesman said explaining the rationale to re-bid the terminals as a key condition for migration. The terminal operators, though, are against putting up their terminals for re-bidding, arguing that the government also stood to gain from the higher rates and the consequent jump in revenue as the government’s share of the revenue from these terminals will increase even on the existing contractually-mandated percentage that the terminals have to share from gross revenues every year. Former Finance Minister P Chidambaram underscored this point while arguing the case for the Indian Private Ports and Terminals Association (IPPTA) in the Delhi High court. The next hearing on the case is slated for October 25. Besides, they are wary of rivals quoting astronomical revenue share which they will find difficult to match in order to continue running their facilities. “Rivals could use this tactic to create unfair competition and de-rail the process,” said a port industry executive. Allowing migration, according to the Ministry, will instill confidence among private investors and improve investor sentiment at a time when the government is planning to bid out several thousand crores worth of port modernisation and expansion projects. Regulatory concerns have halted private investments at major ports.
Source: Business Line
It was a volatile week for the rupee. As expected, the currency fell sharply last week breaking below the support at 65.20. It touched a six-month low of 65.89 on Thursday. The pace of fall was threatening to drag it below 66. However, the rupee made a smart recovery from the low of 65.89, recouping most of the losses made during the week and closed at 65.28. A recovery in the dollar index, coupled with a few domestic factors like slowdown and deficit concerns, kept the rupee under pressure in the past week. A sharp sell-off in the Indian equity market also weighed on the rupee. Foreign portfolio investors (FPIs) are on a selling spree in the Indian equity segment. They were net sellers of equity for the second consecutive month. After selling $2.23 billion in August, the FPIs sold $1.75 billion last month. The debt segment also witnessed a slowdown in September. The FPIs had bought just $219 million last month after buying $3.2 billion on average in each of the previous six months. This has raised the possibility of the FPIs turning net sellers in the debt segment as well in the coming months. In that case, pressure might mount on the rupee and drag it further lower against the dollar in the coming weeks. The dollar index witnessed a strong rise in the past week. The index broke above the key resistance at 92.80 and hit a high of 93.66. After consolidating between 93 and 93.6 since then, the index seems to have regained momentum. There is a strong likelihood of the index rallying to 94 or even 94.5 in the coming days. Immediate support is at 93 and the next significant one is in the 92.8-92.7 zone. These supports are likely to limit the downside in the dollar index in the short term. The US GDP data release last week, which has increased the hopes of another rate hike in December, may support the dollar index to move higher in the coming days. The US grew at 3.1 per cent in the second quarter. A strong dollar index may limit the upside in the rupee and keep it under pressure. Rupee outlookThough the rupee has recovered from its low of 65.89 last week, the upside is expected to be limited. Resistance is at 65 which can be tested if the rupee sustains above 65.4 this week. The possibility of breaking above 65 is low at the moment. But such a break can see the rupee strengthening further to 64.8 or 64.7 over the short term. However, 64.8-64.7 is a strong resistance zone which is likely to halt the upmove. Further break above 64.7 is unlikely. Near-term support for the rupee is in the 65.40-65.50 region. A strong break below 65.50 can take the currency lower to 65.9 or 66 in the coming days. A decisive break and close below 66 will then increase the likelihood of the rupee declining to 66.5 thereafter.
Source: Business Line
With the new GST regime now effective across the country, ClearTax, income-tax returns e-filing and enterprise compliance service provider, has introduced intelligent features in its software to help businesses ensure a seamless flow of credit without making a dent in their working capital reserve. The software now includes registered dealers using the GSTR-2A feature on the ClearTax GST Software who can verify whether their vendors have filed their GSTR-1 accurately, and, if not, urge them to do so before the October 10 deadline. GSTR-1 is a return of outputs of a business, whereas GSTR-2 is a return of inputs of a business. To help with issues concerning reconciliation, the government has introduced GSTR-2A, a form that gets auto-populated by information from GSTR-1 of all vendors associated with a particular trading concern. GSTR-2A helps businesses verify and match the sales reported by their vendors as purchases so that input tax credit can be claimed. CAs and tax professionals can also identify any reconciliation mismatch much ahead of the deadline through these features on the software. Unavailability or delay in claiming input tax credit means locking up of funds, making it difficult for the business to pay outstanding dues. ClearTax GST software will help businesses prevent this scenario by making sure returns are filed on time and accurately by vendors, so that the flow of working capital is not hindered. Taxes paid to purchase these inputs are available as credit while paying taxes on output. As per the GST law, a sale made by a business is recorded as a purchase for another business. Tax credit on inputs can be claimed where your purchases in GSTR-2 reflect in your vendor’s GSTR-1. Archit Gupta, CEO, ClearTax, commented, “Ensuring vendors file their returns timely is critical to avoid loss of input tax credit. Our software will help prevent this situation so businesses don't face delays and funds are not locked up. This feature of ClearTax GST software is the best way a business can stay on top of claiming credit and paying taxes without worrying about cash flows.” By using the ClearTax GST software, a business can download the GSTR-2A data in MS Excel format and verify the vendor’s sales details. This will make GSTR-2 filing a breeze for CAs, tax professionals and businesses. Filing all GST returns on ClearTax GST software is simplified with a three-step process, after which all data can be submitted to GSTN for three returns a month – GSTR-1, 2 and 3.
Source: Business Line
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$ 55.36 per barrel (bbl) on 2.10.2017. This was lower than the price of US$ 55.94 per bbl on previous publishing day of 29.09.2017. In rupee terms, the price of Indian Basket decreased to Rs. 3617.76 per bbl on 2.10.2017 as compared to Rs. 3656.18 per bbl on 29.09.2017. Rupee closed unchanged at Rs. 65.36 per US$ on 2.10.2017 as compared per US$ on 29.09.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on October 2, 2017 (Previous trading day i.e. 29.09.2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
55.36 (55.94) |
|
(Rs/bbl) |
3617.76 (3656.18) |
|
|
Exchange Rate |
(Rs/$) |
65.36 (65.36) |
Source: PIB
Manikam Ramaswami, 63, chairman and managing director of Loyal Textile Mills, passed away in Chennai on Monday. Sources said Ramaswami had collapsed after being administered anaesthesia for a dental procedure and was taken to a private hospital in Adyar where doctors declared him dead. His Loyal Group includes ‘P.Orr & Sons’, a popular watch dealing and servicing company. Mr. Manikam was also passionate about education — he was the correspondent of the Thiagarajar School of Management, Madurai and Thiagarajar Model Higher Secondary School, as well as the secretary at the Thiagarajar College of Preceptors. Mr. Ramaswami was the past chairman of TEXPROCIL, the association for cotton textiles exports promotion. He was the Honorary Consul for Chennai, The Federal Democratic Republic of Ethiopia. “He was an extremely dynamic personality and an industrialist who demonstrated great leadership to many textile units in Southern India,” said Karumuttu T. Kannan, chairman of Thiagarajar Mills, Madurai. He had worked closely with the government for the introduction of the Technology Upgradation Fund scheme, modular drawback system and the CENVAT route for the textile industry. As chairman at TEXPROCIL, he had taken several efforts to boost yarn exports. “This is a big loss to the textile industry. We have lost a captain,” said Southern India Mills’ Assocation (SIMA) chairman P. Nataraj.
He joined Loyal Textile Mills, his family business, full time in 1976. The company’s revenues have risen to ₹200-plus crore from ₹2.5 crore in 1975, said a statement from his office. The industrialist is survived by wife Valli Manikam Ramaswami and daughter Vishala Ramaswami. A mechanical engineer from IIT Madras, he was awarded the Banco Foundation Gold Medal. As part of his college project, he received a patent for an oscillating piston internal combustion engine, the statement said. He has also served as chairman for SIMA. Mr. Manikam also played a key role in the Confederation of Indian Industry (CII). He was the past chairman of CII Tamil Nadu State Council.
Source: The Hindu
AHMEDABAD: Supported by the good South-West monsoon this season, India is set to witness a robust cotton output, which is likely to be 10-12 per cent higher as compared to previous year. This is in stark contrast with the government’s lower first advance estimate of 322.73 lakh bales (each of 170 kg) as against the last year’s production of 337.25 lakh bales. Speaking at the 95th Annual General Meeting of Cotton Association of India (CAI), held on Friday, Nayan Mirani, outgoing President of the Association, stated that country will witness robust cotton output during 2017-18 on account of good monsoon. Higher output seen “The Ministry of Agriculture estimated the acreage under cotton during the 2017-18 season (October-September) with a growth of over 12 per cent compared to last year. Yield is also likely to go up in view of the good monsoon witnessed across all cottongrowing regions thus far. If the weather Gods remain kind in future as well, the country is likely to harvest a bumper crop during the ensuing 2017-18 crop year,” stated Mirani. The International Cotton Advisory Committee (ICAC) has also predicted higher world cotton production by 8 per cent to 24.9 million tonnes, while the global acreage set to increase by 8 per cent to 31.7 million hectares. ICAI stated that India would remain the world’s top cotton producer in 2017-18 with output rising 6 per cent to 6.1 million tonnes. In India, cotton was sown on 121 lakh hectares as on early September 2017, as against 102 lakh hectares last year. Gujarat continues to be the largest cotton growing region in the country with 26.36 lakh hectares (24.04 lakh hectares).
Prices may come down
Increase in acreage, nationally, will result in bumper crop, putting pressure on the cotton prices in the new season. “Inspite of the reports of major crop loss in the US due to cyclones, crop size there is still expected to be large. Other countries are also expected to harvest a bumper crop. Therefore, cotton prices are likely to witness a depressing trend,” added Mirani. ICAI too has predicted uncertain cotton prices for the year 2017-18. The benchmark Cotlook A index is likely to hover around 69 cents/lb during the year. Currently, global cotton prices started lower trend on robust global crop. The prices started falling from 74.88 cents on September 5 to 68.31 cents per pound on October 2. On the domestic spot market at Rajkot, cotton prices have corrected by about ₹1,200 per bales within a month to quote at ₹18,902 per bale on September 29, as against ₹20,293 per bale on August 31. However, Mirani added that in order to meet any eventuality of cotton prices going below the MSP level due to bumper crop expected this year, the government agencies are geared up to undertake support price operations so as to eliminate the possibility, if any, of distress sales by farmers.
Source: Business line
Despite the highest-ever cultivation of cotton, in about 19.09 lakh hectares or over 47.72 lakh acres, in Telangana this year the farmers have some reason to cheer since cotton production in the country is estimated to be lesser than last year and the second lowest since 2010-11. The lower production is stated to be on account of a couple of long dry spells during the vegetative growth and flowering stages of the crop. Prices of cotton in the open market have ruled on par with the minimum support price (MSP) of ₹4,160 per quintal for long-staple variety which is mostly grown in Telangana, or even better sometimes during the last year (2016-17). The Centre has fixed the MSP of ₹4,320 per quintal for long-staple variety for 2017-18. According to officials, production of cotton in the country was estimated at 330.92 lakh bales (one bale is equal to 170 kg) last year against the expected output of 322.73 lakh bales this year. The fibre crop production was 300.05 lakh bales in 2015-16 and it was 348.05 lakh bales, 359.02 lakh bales, 342.20 lakh bales, 352 lakh bales and 330 lakh bales, respectively, in the preceding years. “We are expecting a production of about 28 lakh bales to 30 lakh bales this year in Telangana and the plans for carrying out smooth cotton procurement operations at MSP are already in motion beginning with the collection of cotton growers information by the District Agriculture Officers by October 5,” Agriculture Production Commissioner C. Parthasarathi explained adding that they had planned to complete issuance of quick response (QR) bar-coded identity cards to farmers in about a week’s time after October 5. Mr. Parthasarathi, who is also the Secretary Agriculture, said the bar-coded identity cards would ensure speedy processing of cotton disposal by farmers at the procurement centres of the Cotton Corporation of India (CCI). Agriculture Department officials stated that the average yield of cotton could be less this year compared to last year when it was about 6 quintals per hectare due to a couple of long dry spells during the vegetative growth and flowering stages of the crop. The officials said the fibre crop production was about 29.36 lakh bales last year and 37.33 lakh bales, 35.83 lakh bales and 42.65 lakh bales in the preceding years, respectively. Meanwhile, official sources stated that the CCI had agreed to open 111 procurement centres against 84 last year. The State Government has sent proposals for opening 143 purchase centres in the wake of increase in the cultivation of cotton this year. The officials expressed hope that some more purchase centres could be allowed at ginning mills. The CCI procurement centres are likely to start functioning from October 10 based on the cotton arrivals.
Source: The Hindu
On the occasion of Gandhi Jayanthi, District Collector S. Prabhakar inaugurated the Deepavali special discount sale of Khadi and Village Industries products at Khadi Kraft showroom here on Monday. The Collector paid floral tributes to the portrait of Mahatma Gandhi. He said that 10 khadi village production centres were functioning in the district providing job to 140 women. Last year, the value of khadi and polyester goods produced at these centres stood at ₹ 54.57 lakh. The Collector said that through the three khadi production centres, 150 people were provided jobs where goods worth ₹ 1.25 crore were produced last year. hrough the four Khadi Crafts in the district, sale of ₹ 1.18 crore was achieved against the target sale of ₹ 1.47 crore. For the current year, sales target of ₹ 1.74 crore was fixed, he added. Products like khadi dhotis, towels, bed-sheets, pillows, mattresses, silk saris were kept for sale for the festival season. In Salem district, Collector Rohini R. Bhajibhakare inaugurated the sale at Khadi Craft. A sales target of ₹ 1.35 crore was fixed for the season, she added. In Namakkal, District Collector M. Asia Mariam inaugurated the special sale at Khadi Kraft showroom, located near bus stand. She said that during the special Deepavali sale last year, sales target of ₹ 43.06 lakh was fixed while the sales realised was ₹ 45.02 lakh. For the current year, a sales target of ₹ 66.22 lakh was fixed, she added. Officials said that 30% discount is being given to silk saris, polyester and other khadi products while woollen products will be given 20% discount. Also, loan facility is given to government officials and workers in local bodies that need to be repay in instalments.
Source: The Hindu
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1344.63 |
USD/Ton |
-0.17% |
9/29/2017 |
|
VSF |
2423.63 |
USD/Ton |
0% |
9/29/2017 |
|
ASF |
2401.12 |
USD/Ton |
0% |
9/29/2017 |
|
Polyester POY |
1266.59 |
USD/Ton |
-0.12% |
9/29/2017 |
|
Nylon FDY |
3331.55 |
USD/Ton |
0.91% |
9/29/2017 |
|
40D Spandex |
5702.66 |
USD/Ton |
0% |
9/29/2017 |
|
Polyester DTY |
2551.19 |
USD/Ton |
0% |
9/29/2017 |
|
Nylon POY |
1628.26 |
USD/Ton |
-0.46% |
9/29/2017 |
|
Acrylic Top 3D |
3391.58 |
USD/Ton |
0.89% |
9/29/2017 |
|
Polyester FDY |
5672.65 |
USD/Ton |
0% |
9/29/2017 |
|
Nylon DTY |
1523.21 |
USD/Ton |
0% |
9/29/2017 |
|
Viscose Long Filament |
3001.40 |
USD/Ton |
1.01% |
9/29/2017 |
|
30S Spun Rayon Yarn |
3016.41 |
USD/Ton |
0% |
9/29/2017 |
|
32S Polyester Yarn |
2019.94 |
USD/Ton |
-0.15% |
9/29/2017 |
|
45S T/C Yarn |
2866.34 |
USD/Ton |
0% |
9/29/2017 |
|
40S Rayon Yarn |
3181.48 |
USD/Ton |
0% |
9/29/2017 |
|
T/R Yarn 65/35 32S |
2416.13 |
USD/Ton |
0% |
9/29/2017 |
|
45S Polyester Yarn |
2161.01 |
USD/Ton |
0% |
9/29/2017 |
|
T/C Yarn 65/35 32S |
2431.13 |
USD/Ton |
0.62% |
9/29/2017 |
|
10S Denim Fabric |
1.41 |
USD/Meter |
0% |
9/29/2017 |
|
32S Twill Fabric |
0.87 |
USD/Meter |
0% |
9/29/2017 |
|
40S Combed Poplin |
1.21 |
USD/Meter |
0% |
9/29/2017 |
|
30S Rayon Fabric |
0.68 |
USD/Meter |
0% |
9/29/2017 |
|
45S T/C Fabric |
0.71 |
USD/Meter |
0% |
9/29/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.15007 USD dtd. 9/29/2017). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
A Purchasing Managers Index for the region’s manufacturing industry rose to 58.1 in September from 57.4 the previous month, London-based IHS Markit said on Monday. That compares with a preliminary reading of 58.2 and is the highest level in more than six and a half years. A gauge for employment rose at the fastest pace since the survey began in 1997. The currency bloc’s economy is on track to expand 2.2 percent this year, the strongest pace in a decade as global trade, central bank stimulus and political risks all combine to support growth. “The euro-zone manufacturing boom kicked into an even higher gear in September,” said Chris Williamson, chief economist at IHS Markit. “Surging order-book growth has encouraged manufacturers to take on extra staff at a rate never previously seen in the 20-year history of the PMI survey. Despite this expansion of capacity, backlogs of incomplete work built up at a faster rate, suggesting that the hiring upturn has plenty more room to run.” Unemployment was 9.1 percent in August, according to a separate report from Eurostat. Economists had predicted a drop to 9 percent. Factory activity expanded in all major European countries, IHS Markit said, led by Germany and the Netherlands. Greece enjoyed its strongest growth since June 2008. While inflation in the region failed to accelerate in September, European Central Bank policy makers who will decide in October how to recalibrate asset purchases can take comfort from the fact that the buoyant expansion is starting to push prices higher. “The stronger euro has so far barely dented export growth and domestic demand conditions were generally seen to have improved,” said Williamson. “With the upturn being accompanied by rising inflationary pressures, expectations of an imminent announcement from the ECB in relation to tapering of policy stimulus will intensify.”
Source: Financial Express
SINGAPORE - Factories in Asia’s largest economies cranked up activity in September as a synchronized upswing in growth globally pointed to solid consumption of manufactured goods heading into the lucrative end-of-year shopping season. However, pockets of weakness in regional economies are likely to keep Asian central banks slanted toward more accommodative monetary policy, even as their Western counterparts move to scale back stimulus. China’s central bank on Saturday cut the amount of cash that some banks must hold as reserves for the first time since February 2016 in a bid to encourage more lending to struggling smaller firms and energize its lackluster private sector. The world’s second-largest economy has defied expectations for a slowdown this year, growing at a strong clip in the first half thanks to a construction boom. Beijing’s latest easing comes ahead of a key party gathering this month. “It’s a solid backdrop for manufacturing in the region as we head toward the big shopping season,” said Rob Carnell, Asia’s head of research at ING. That sentiment was backed by an official Purchasing Managers’ Index from China’s vast manufacturing sector, which showed activity last month grew at the fastest clip since 2012 on solid demand. But cost pressures from high raw materials prices and continued underperformance of smaller firms mean some manufacturers are still struggling, which was reflected in a separate private survey of Chinese factories showing growth slowed in September. In Japan, factory activity grew the fastest in four months, thanks to robust exports growth and underpinned improving economic momentum even though inflation remained tepid. Meanwhile, a closely watched Bank of Japan survey showed big manufacturers have more confidence in business conditions than they have had for a decade, thanks to a weaker yen and robust global demand. In South Korea, manufacturing activity expanded at the fastest pace in almost two years. Indonesia, Southeast Asia’s biggest economy, also showed an improvement in factory growth but the pace was tepid and production contracted slightly. Indonesia has cut interest rates twice this year in a bid to boost stubbornly weak domestic consumption, while India slashed rates once in August to spur growth and inflation. Those moves, along with the BOJ’s commitment to maintain its ultra-low rates for the foreseeable future, marked a contrast to the West’s shift toward tighter policy, although analysts expect the extent of stimulus in Asia to be measured. “I would characterize some of the easings (in Asia) as a bit of fine-tuning really and not a major divergence in policy with the West,” ING’s Carnell said. “The regional economies continue to grow at a decent pace.”
GLOBAL UPSWING
Indeed, a synchronized upswing in the global economy has been a boon to manufacturers from China to Britain and the United States, with export-reliant Asia enjoying a spurt in growth led by an upsurge in sales of electronics. A raft of European PMIs scheduled for publication later on Monday are expected to paint a picture of robust manufacturing momentum globally. Shipments from Japan and South Korea - two major exporters - remained robust with the boom helping their economies grow at a decent clip. In Taiwan, another export-bellwether, factories continued to expand at a steady pace on higher global demand. In South Korea, higher memory chip and steel product sales lifted exports by 35 percent year-on-year in the longest stretch of expansion since 2011. Full-year growth in China is widely expected to handily meet the government’s target of 6.5 percent, after stronger-than-forecast growth of 6.9 percent in the first half, driven by a year-long building boom and solid exports. That augured well for Asia’s manufacturers for the rest of the year. “Looking ahead, we expect conditions in the region’s manufacturing sectors to remain fairly healthy over the coming months, helped by a combination of loose domestic monetary policy as well as firmer global growth,” said Shilan Shah, economist at Capital Economics. And given price pressures are largely contained in places like China and Japan as well as smaller economies including Singapore and Indonesia, policymakers will have headroom to boost stimulus if the need arises. “The big picture is that inflation in most of these economies is set to stay benign, giving their central banks scope to keep interest rates low to support growth,” Shah said.
Source: Returns
The Trade Minister says the government is ready to roll out a comprehensive strategy aimed at combating pirated textiles. Alan John Kyerematen said the measures will bring a “lasting solution” to the smuggling and counterfeiting of fabrics in the country.He said the Ministry has briefed the stakeholders of the textile industry about the strategies to implement to address the challenges. “As a government, we are committed [to addressing the issue],” he said. The Minister was reacting to a petition submitted by the Textiles, Garment and Leather Employees’ Union (TEGLU) Monday. Some members of the Union picketed the Ministry demanding the inauguration of the Anti-Textiles Piracy Taskforce. The Taskforce had been operational since 2010 until it was disbanded earlier this year. General Secretary of the Union, Abraham Koomson told Joy News the counterfeiting of local prints is collapsing their companies. He said production levels of the Union’s member companies have been low, a development he blamed on activities of smugglers. “We don’t have any problem with people importing textiles but it is the faking that we are against,” he clarified. Mr Koomson said the Anti-Textiles Piracy Taskforce helped to sanitise the industry when it was set up in 2010, but lamented its inactivity. But the Trade Ministry has assured the Union it is working to ensure that the Taskforce is inaugurated to combat pirated textiles. “We’ve explained to them [the measures we will put in place] and they have come to an agreement,” Mr Kyerematen said.
Source: Myjoyonline.com
OVER 400 000 cotton farmers, who are beneficiaries of the Presidential Input Support Scheme, will start receiving their allocations today. It has also emerged that farmers who delivered Grade A and B cotton would receive their adjusted amounts after being paid for Grade C yields. Farmers who delivered Grade B will receive 50c per kilogramme while those who had Grade A will be paid 55c per kg. The Grade C cotton fetched 47c per kilogramme. The development follows reports that the number of cotton farmers registered for the scheme had doubled from 37 000 to 77 000 this season. The farmers from across the country had also delivered over 75 000 tonnes of which about 70 percent of the yields were Grade A courtesy of the inputs supplied through the Presidential Input Support Scheme. In an interview after touring the Chiredzi Cottco Ginnery on Saturday, chairman of the Parliament Portfolio Committee on Lands and Agriculture, Cde Christopher Chitindi hailed the scheme for boosting cotton production in Zimbabwe. “We have toured Cottco ginneries in Kadoma, Gokwe and now we are in Chiredzi. Our main goal is to have an appreciation of how the company has transformed after Government availed millions of dollars in inputs issued freely under the Presidential Inputs Scheme.We have been told by the company management that they will start issuing inputs to the 400 000 farmers this coming Monday with 77000 farmers having registered to grow the crop here in the Lowveld,” he said. Cde Chitindi said the huge success of the Presidential Inputs Scheme must pose as a challenge to Cottco to start value addition projects such as the reintroduction of cooking oil and lint processing. Cottco currently exports 75 percent of its lint while 25 percent is reserved for the local textile industry. Cotton seeds are further processed into cooking oil locally with a smaller percent treated as seed. Cde Chitindi said Cottco would also start paying farmers adjusted prices for Grade A and B cotton. “Cottco also told us that on Monday (today) they will start paying adjustments to farmers whose cotton was in Grade A and B. Remember they paid farmers 47c which was for Grade C cotton so all farmers would be receiving their dues which are up to 55c for those who produced A Grade cotton,” he said. Cde Chitindi urged Government to extend the free inputs scheme for cotton for a further three years. “Our tour has given us more reasons to advice Government to extend the free inputs scheme for another three years. This will leave a farmer at a better production position while earning the nation more foreign currency,” he said. Cde Chitindi, however, challenged Cottco to add value to the cotton which they are receiving. “We cannot continue selling our cotton products in their raw form. Our advice as Parliament is they must start producing cooking oil. We also want them to further process lint so that the country gets more foreign currency,” he said. Cottco has pledged to introduce tillage services this season while farmers have already started receiving aid in undertaking soil sampling. Government has set aside $60 million to support 400 000 cotton growers under the Presidential Inputs Support Scheme.
Source: The Herald
ISLAMABAD: The exports of readymade garments from the country during first two months of current financial year increased by 15.65 percent as compared the exports of the corresponding period of last year. During the period from July-August, 2017, around 6,326 thousand dozens of readymade garments worth US$ 418.631 million exported as compared the exports of 5,217 thousand dozens valuing US$ 361.971 million of same period last year. Meanwhile, exports of knitwear grew by 7.53 percent as about 20,334 thousand dozen of knitwear valuing US$ 439.258 million exported during the period under review as compared the exports of 17,776 thousand dozen worth of US$ 408.495 million of same period last year, according the data of Pakistan Bureau of Statistics. Around 61,840 square meters of bedwear valuing US$ 384.321 million exported in first two months of current financial year as compared the exports of 59,812 square meters of bedwear worth US$ 355.554 million of same period last year, it added. During the period under review, exports of bedwear increased by 8.09 percent as compared the exports of the same period last year, the data added. However, exports of towel witnessed decrease of 0.67 percent as it went down from 27,372 metric tons in first two months of last year to 25,939 metric tons in same period of current financial year, it added. Towels worth US$ 116.782 million exported in first two months of current financial year as compared the exports of US$ 117.574 million of same period last year, the data reveled. On the other hand exports of textile group increased by 5.81 percent in first two-months of current financial year and was recorded at US$ 2.179 billion as compared the exports of US$ 2.059 billion of same period last year, it added. The exports of raw cotton during first two-month was recorded at 5,225 metric tons worth US$ 8.697 million as compared the exports of US$ 10.197 million of same period last year, it said. During first two-months, exports of other textile materials grew by 13.29 percent as above mention products worth US$ 75.744 million exported as compared the exports of US$ 66.85 million of same period last year.
Source: Business Recorder
FAYOUM, Egypt, - Egyptian farmer Ahmed Rabei will follow the steps of his government and enlarge the area planted with cotton in an effort to revive the country's rewarding industry that can help improve Egypt's stagnant economy. Rabie, a villager from Fayoum province, some 100 km south of Cairo, cultivated one feddan (1 feddan=1.038 acres) of land with the finest long-staple cotton (known in Egypt as Giza 95). He will double his cotton field next year. "The ministry of agriculture helps me much ... they provided me with subsided seeds and fertilizers necessary for the treatment of the plants to get high-quality cotton," Rabie said, watching his family members picking the "white gold" of Egypt. Rabie, who always sold his cotton to local manufacturers, said the prices this year are good. "I can say that farmers can earn good money this season ... I urge other farmers to double and even triple their fields cultivated with cotton for their own and the country's good," Rabie said as he checked the quality of his harvested cotton. Cultivating one feddan of long-staple cotton costs around 10,000 Egyptian pounds (568 U.S. dollars). Egyptian cotton is an extraordinary commodity that has played an important and vital role in Egypt's economic, social, and political history during the past two centuries. Egypt's unique climate and fertile soil are ideal for cotton cultivation. From the early 1800s up to the present, Egyptian cotton has always been synonymous with luxury and quality. After the popular revolution in January 2011, cotton industry has witnessed recession due to the lack of government care, which caused a quality degradation of Egypt's most famous crop. However, the government has set plans to restore the important sector by doubling the production of high-quality cotton after years of suffering. "The government has a plan to plant half a million feddans with cotton by 2019, which means doubling the areas planted with cotton," Hassan Gouda, deputy minister of agriculture in Fayoum, told Xinhua. The Egyptian official said the total area planted with cotton across the country this year is 220,000 feddans." Last year only 130,000 were cultivated with cotton." Gouda said Egypt is back on track to be the world's leading cotton producer, adding that the ministry has set plans to double the cotton fields in Fayoum, the second largest producer of cotton in Egypt after Kafr al-Sheikh province in Delta. "The total area planted with cotton in Fayoum is 13,092 feddans ... this will definitely be doubled by 2019," he said proudly. The Egyptian official said the average yield per feddan of cotton in Fayoum is 8 to 11 kantars (also known as qintar, a kantar equals to either 157 kilograms of seed cotton or 50 kilograms of lint cotton) per feddan, pointing out that the government has set a guaranteed price of 2,100 Egyptian pounds per kantar. "Prices at local market range from 2500 to 2700 pounds per kantar. The government has set the price to ensure that farmers will not sell at lower prices; the price could increase," Gouda stressed. The deputy minister said the government pays much care to cotton farmers as the agriculture ministry follows the cotton planting season from A to Z and provides farmers with high-quality seeds as well as technical assistance before, during and after the cotton season. In an attempt to encourage farmers to plant cotton, the government has decided to subsidize 300 pounds per kantar for farmers whose produce exceeds 10 kantars. Experts say that Egyptian cotton is high on demand worldwide this year because of the devaluation of the Egyptian pound in addition to an international campaign against fake cotton. The return of Egypt's cotton to international markets will provide a significant export opportunity needed by the Middle East country which has been suffering economically for almost seven years due to security and political issues. In July, the agriculture ministry announced it targets 1.4 million kantars of long-staple cotton to be exported, compared to 700,000 kantars last year. The most populous Arab country has been suffering economic recession due to political instability and relevant security challenges following two uprisings that toppled two heads of state since 2011. The turmoil led to a decline in the country's foreign currency reserves, foreign investments, tourism revenues and others. Besides floating its local currency's exchange rate to face dollar shortage, Egypt started last year a strict three-year economic reform program including austerity measures, fuel subsidy cuts and tax increase. The program is encouraged by a 12-billion-dollar loan from the International Monetary Fund.
Source: Xinhua
An H&M storefront in Oxford Circus, London. Polyester is the dominant fabric in the world today, and scientists have found a way to recycle them endlessly. Image: jaimelondonboy, CC BY-NC-ND 2.0Scientists in Hong Kong have developed new technology that enables polyester to be harvested from unwanted textiles and recycled into new clothes. The technology was invented by the Hong Kong Research Institute of Textiles and Apparel (HKRITA), and currently works for cotton-polyester blended fabrics, the institute announced last month. Using a HKRITA-patented chemical solution, cotton is broken down into cellulose particles in a process that combines heat and water, and separated from the fabric. The polyester fibres can be made into new garments straightaway with no loss in quality, which is why this new technology is being dubbed fibre-to-fibre recycling, Dr Gloria Yao, project development director of HKRITA and the lead researcher for this technology, said in an interview with Eco-Business. “Compared to the production of virgin polyester, this method consumes 70 per cent less energy,” she added. HKRITA’s new methodology requires limited manpower, simple equipment that textile recycling companies may already own, and the water used in the process can be recycled. Pieces of fabric made from a blend of polyester and cotton, before treatment. project is part of HKRITA’s four-year partnership with the non-profit H&M Foundation that began in 2016. Called the Closed-Loop Apparel Recycling Eco-System Program, it aims to find at least one technology to recycle clothes from blended textiles. Erik Bang, innovation lead at the H&M Foundation, said the project team is working on a pilot plant slated to be operational within the next 12 months. “Our goal is to have the technology ready for the market by 2020.” Once ready, the technology will be made available to companies through licensing, the terms of which have yet to be decided by HKRITA, which will own the licence. HKRITA’s fibre-to-fibre method currently only works to repurpose polyester—a petroleum-based fibre found in most apparel—and further work is needed before it can recover other materials, said HKRITA’s Yao. The research institute is also planning to study how cotton cellulose byproduct can be re-made into fibres and turned into clothing, she shared. Image: Atlas; Data: Tecnon Orbichem. Polyester has been a pivotal part of the clothing industry since its invention in the mid-20th century, and is now the dominant fibre. Made from petroleum-based chemicals, about 65 per cent of polyester produced globally goes into textile production. The global fashion industry has faced increasing pressure over its environmental and social impacts. From toxic tanneries in India to labour rights violations in Uzbekistan, consumers are paying attention to how brands are, and the rest into the common polyethylene terephthalate (PET) bottle that beverages are sold in.—or are not—cleaning up their operations. While brands such as Uniqlo and H&M have started garment take back programmes, only a fraction of the collected clothing can be recycled. For instance, through an external company it has engaged to handle the garments, H&M sends about half of its collected clothing for rewear and 30 per cent to be recycled. “Within recycling, downcycling clothing to produce insulation materials or fillings forms the largest part, and a smaller part today can be upcycled into fibre,” said Ulrica Bogh-Lind, press officer for H&M. A part of this “becomes energy” through waste-to-energy incineration. “Blended fabrics such as cotton and polyester make up the majority of textiles in the world today, but they are impossible to recycle as there is no technology to separate the materials,” said Bang. Polyester fibres extracted from the earlier fabric samples through HKRITA’s recycling technology. Image: HKRITAExisting textile recycling methods mechanically shred textiles into fibres, therefore reducing the length and quality of the fibres. They have to be combined with virgin fibres to make new garments. More brands today, from adidas to H&M to Patagonia, are upcycling PET bottles as raw materials for their products, although this material cannot be recycled easily due to the same technological limitations. Bang commented: “If this fibre-to-fibre project succeeds, the fashion industry could meet the growing global demand for clothes without having to rely on virgin materials—saving precious natural resources and significantly reducing its impact on the climate and natural ecosystems.” Furthermore, critics have pointed out that shorter fashion cycles thanks to fast fashion labels like Zara, Mango, Forever 21 and H&M are encouraging overconsumption even though the industry has not figured out how to properly handle textile waste. ut Bogh-Lind told Eco-Business that H&M does not consider itself a fast fashion company and does not encourage a throw-away attitude. “It’s important that customers value and take care of the clothes they buy, and that companies take responsibility for the products they offer—not only at the production and selling stages, but also when the customer doesn’t want the product anymore.” “A circular approach to how fashion is the key solution to the negative impacts of consumption,” she added.
Source: Eco-Business
Hosiery’s fate isn’t confined to landfills. Gildan’s latest collaboration is taking what would have become nylon waste and giving it a second life. The apparel and hosiery manufacturer recently partnered with Vancouver-based Sans Soucie Textile and Design, a zero-waste clothing and textile design studio that transforms offcuts from nylon for hosiery into new hand-made materials for garment production. Gildan currently ships hosiery waste to Sans Soucie from its Montreal-based Gildan Apparel Canada Manufacturing facility. The new partnership is part of Gildan’s mission to save fabric waste from landfills—89 percent of which is already upcycled into other products. Katherine Soucie, a sustainable designer, founded Sans Soucie to minimize the negative impact of garment production waste. The company’s unique closed-loop process transforms discarded textiles, including hosiery, into new functional materials with low impact dyes and reused water. What’s more, Soucie also supports domestic sustainability collaboration, which was why she teamed up with Gildan. “I have always been motivated by this concept of working with Canadian manufactured materials. As a designer, I have always felt that I have a responsibility to what I put out there,” Soucie said. “I wanted to try to find an alternative method in how I approached the design process to create work that would not only support existing Canadian manufacturers but allowed for the opportunity for collaboration, new pathways and design ideas to emerge with the intent to inspire others and to create alternative business models.” Gildan’s new partnership follows its recent environmental commitments. In September, the company was included in the Dow Jones Sustainability World Index (DJSI World Index), for the fifth year in a row. As the only North American business in the Apparel, Luxury Goods and Textile industry group in the DJSI World Index, Gildan’s eco-friendly efforts, including reducing energy usage intensity by 10 percent and facilitating waste management projects, have placed it ahead of the pack. The company’s recent steps, including the Sans Soucie partnership, are part of its Genuine Responsibility 2020 Goals that aim to improve the company’s supply chain over the next three years.
Source: Souring Journal Online
Cotton cultivation is associated with numerous social, economic and environmental challenges that threaten the sector’s sustainability—and some brands seem to be doing better than others in addressing those challenges. The second annual Sustainable Cotton Ranking report aims to quantity and qualify companies that address cotton cultivation issues through polices, supply chain strategies and associations with key industry groups dedicated to sustainable cotton cultivation and manufacturing methods. The report, put out by the Pesticide Action Network UK, Solidaridad and WWF, which share a vision for a more sustainable cotton sector, ranks brands and retailers along various criteria and makes recommendations on how companies can improve their scores and help create a better environment along the cotton supply chain. However, one major organization, Cotton Incorporated, takes issue with the report and its findings, questioning “what it hopes to achieve.”
Industry leaders
Achieving the highest ranking of “Leading the Way” was Ikea, Tchibo, C&A Group, Marks & Spencer and H&M, while the second tier, “Well on the Way,” including Adidas, Otto Group, Nike, Levi Strauss, Woolworths Holding, VF Corp., Tesco and Kering. The report notes that cultivation of more sustainable cotton has never been higher than it is today, reaching 2.6 million tons in 2015-16, representing around 12 percent of global supply. However, just 21 percent of this amount is actively sourced as more sustainable cotton by companies, with the remainder traded as conventional cotton. Current forecasts are for sustainable cotton to be at least 15 percent of global cotton production in 2017. “Companies that rely largely on cotton as a raw material play a crucial role in securing the future of the sustainable cotton market, reducing cotton’s environmental impacts and improving labor conditions,” the report said. “Some have made public timebound commitments to more sustainable cotton sourcing and report steady progress in actual uptake of sustainable cotton. Yet many of the world’s largest companies using cotton as a key raw material do not consider or address the negative impacts of its production.” All cotton sustainability standards or programs rely on market uptake to finance and deliver positive impact, be it premiums paid directly to cotton farmers in Organic and Fairtrade cotton, license fees under the Cotton made in Africa system or volume-based fees in the Better Cotton Initiative system, the report stated. The groups noted that their overall objective is to highlight progress achieved and opportunities for improvement that will accelerate transformation of the cotton market toward greater sustainability. With an aim of engaging a wider audience and stimulated demand, the number of companies assessed in the 2017 Cotton Ranking increased and included companies in major emerging markets. More specifically, this second edition of the ranking provides an update on the market for more sustainable cotton, an update on company performance compared to the previous year and a performance assessment of an expanded list of companies from around the world. Increasing availability of more sustainable cotton makes it easier for brands and retailers to make and keep sourcing commitments to more sustainable cotton, while greater transparency by brands and retailers about their long-term sourcing targets helps their suppliers prepare for and deliver on requests for more sustainable cotton. Allowing for methodological changes between the 2016 and 2017 rankings, of the 25 companies assessed in both editions, 18 improved their performance. This is most obvious in “uptake,” with 14 out of the 25 showing greater uptake. The top five companies in 2016–Ikea, C&A Group, H&M, Adidas and Nike–all increased their sourcing of more sustainable cotton as a percentage of total volume by about 20 percent in 2017. C&A made the biggest advance in uptake, almost doubling its score. In the area of policy, 13 of the 25 made real improvements, with Gap Inc., Ikea and Marks & Spencer making the biggest advances. Ikea improved across all three areas and Gap Inc. improved in policy particularly, thanks to its BCI membership. Last week, Gap also joined the Cotton Leads program. In traceability, nine of the 25 improved their score. Marks & Spencer, C&A Group and H&M, for example, expanded the public list of their suppliers compared to 2016.
How to improve cotton sourcing
To improve their standing and strategies, companies should start or continue sourcing more sustainable cotton, according to the report. They should also adopt policies on overall cotton sustainability, and specifically on the key topics of highly hazardous pesticides, water, biodiversity, labor conditions and recycling. They should set public targets for using 100 percent sustainable cotton by 2020, including the percentage of Better Cotton, organic, Fairtrade, CmiA and recycled cotton, and should report transparently each year on policies, strategies and targets, as well as performance and progress. In addition, firms should develop a plan for applying policies and meeting sourcing targets involving all relevant departments, join organizations such as BCI and/or Textile Exchange, and seek advice from standards organizations, NGOs and peers in their sector. “Better performing companies recognize negative environmental impacts of cotton cultivation and have some sort of policy in place on cotton sustainability,” the report noted. Researchers looked for corporate policies with clear commitments to reduce water use and water pollution in cotton cultivation, with 31 companies having some kind of policy in place, although 43 scored no points at all. Ikea, C&A Group and Levi Strauss & Co. stood out. Ikea has a commitment to be “water positive,” meaning an efficient use of water, promoting good water stewardship throughout and beyond the value chain by 2020. C&A Group has a goal of reducing water usage during cultivation by 30 percent by 2020 and has developed a guide to reduce the water footprint of cotton cultivation in India, while Levi Strauss has an extensive water policy. Biodiversity is less well addressed in company policies. Few companies have policies, commitments or relevant activities. No companies achieved maximum points–and 44 received no points at all. Inditex stood out for avoiding the sourcing of materials that pose a risk to biodiversity, for seeking more sustainable alternatives, and for cooperation with supply chain partners. Tchibo was also committed to defining concrete biodiversity targets and to implementing them together with suppliers. A number of companies have programs in place for reusing or recycling cotton and other textiles. However, few companies achieved the maximum possible score, as policies do not apply to all cotton products, brands or collections. Nike, with a policy of sourcing recycled cotton, is actively working toward creating closed-loop products and decreasing waste. Overall, the report said improvements since the first ranking in 2016 “are encouraging and suggest that leaders will continue to lead the way, driving sustainability in the sector.” “While significant positive progress is evident, there is still much to do,” the report added. “Only around half of all assessed companies have a policy on cotton sustainability. Company performance on uptake and traceability is considerably lower than on policy, even among leaders. Only 11 companies have time-bound commitments or targets for greater use of more sustainable cotton, and uptake of more sustainable cotton remains relatively low with most of the heavy lifting being done by a handful of leaders.”
Another perspective
Jesse Daystar, Cotton Inc.’s chief sustainability officer and vice president of sustainability, said the report on the one hand “praises four cotton identity programs and on the other highlights that low volumes of cotton from these programs are being utilized. It denigrates conventional cotton, but the majority of cotton from the promoted programs is conventionally grown. It simultaneously praises brands for using the identity cottons and chastises them for not using more.” Daystar said overall, the report misses some important points surrounding sustainability. “It’s not about membership in any specific program, it’s about producing cotton that minimizes impacts to the environment, setting goals to reduce environmental impacts and measuring outcome based sustainability metrics,” he said. “Whether that happens through a cotton identity program or through the commitment of growers outside of these programs is immaterial. Brands and retailers have options and can determine which options fit best within their business and sustainability strategies.” Daystar criticizes the report for not clearly defining “sustainable,” but instead “very narrowly defines ‘sustainable cotton’ as coming from only four identity programs.” “The fact is that substantially more than 12 percent to 15 percent of the world’s cotton is responsibly grown,” he said. “The aggregators of this report seem to confuse enrollment in a program as evidence of environmental gains. This logic ignores the use of advantageous technologies, a country’s regulatory structure, as well as market-driven changes in production practices that exist outside of the four programs.” Daystar said the report states that “sustainable” cotton production in the U.S. is 36,432 metric tons, roughly 1.3% of total U.S. cotton production in 2015. “In reality, U.S. cotton is already being grown responsibly across all cotton-producing states,” he contended. “This has been well-established by third-party metrics. The aim of the cotton identity programs is to help growers produce their crop more responsibly.
U.S. growers are doing this already, of their own initiative and at a national level. It is unnecessary for them to participate in programs aimed to help them do what they are already doing. We would argue that the ongoing environmental gains of U.S. cotton growers merit inclusion in this, or any report on the state of sustainable cotton.”
Source: Sourcing journal Online
Add Nordstrom to the growing roster of retailers looking to better cater to a broader array of women. On Monday, the upscale department store chain called on top brands to add more items in sizes 14, 16 and 18, as well as additional merchandise in sizes 0 and size 2, saying that it wants to be more inclusive. The move makes sense, considering the untapped potential of the larger size apparel market. According to a market research report from 2012, around 67% of American women wear a size 14 or larger. Nordstrom is also testing where it positions plus-sized items. At its brand-new location at Westfield's Century City mall in Los Angeles, standard and so-called extended sizes from several denim partners, including Topshop, Rag & Bone and J.Crew's Madewell, will be featured in the same location. This frees customers from having to go to a different, often far-flung, area of the store to find items in their size. Nordstrom will also include its own brands Caslon and Halogen in the initiative. "We don't view being size inclusive any differently that the need to be more inclusive across the board—whether it's ethnicity, size or body type. In our opinion, petite and plus sizes shouldn't be considered special categories. They're just sizes," said Tricia Smith, Nordstrom executive vice president and general merchandise manager for designer, women's and kids apparel in a statement. The trade newspaper WWD first reported on Nordstrom's "size-inclusive" initiative plan in August. It's not just Nordstrom. Other retailers have realized that treating plus-size apparel as an afterthought is bad for business, and have expanded their merchandise. Target and J.C. Penney, among others, have launched plus-size lines. They face competition from emerging e-commerce players, such as the plus-size subscription service Dia&Co. Looking ahead, Nordstrom said it plans to offer bigger sizes for about 40 brands by the holidays, and 60 brands by next year. The in-store presentation, in which plus and petite sizes are displayed alongside standard sizes, will be rolled-out to another 14 stores. (Nordstrom operates 122 full department stores). The chain says it is not eliminating existing plus-size or petite departments, but instead wants to fill in sizing gaps. "We recognize the opportunity to serve customers better by having more sizes. Style and fashion apply to everyone," said Nordstrom's Smith.
Source: Fortune
Chinese manufacturer Zhuoli Imaging Technology launched its new Z800 textile resin at Labelexpo Europe 2017. Z800 has been developed to print on structured labels and to meet the demands of the numerous processes involved in garment and textile production. It is claimed to offer excellent print quality and superior resistance to washing, ironing and dry cleaning applications. Highly resistant to heat, water and industrial solvents, it is compatible with a wide variety of materials, including nylon, acetate, polyester, rayon and synthetic fibers. ‘Our proprietary anti-static back coating formulation dissipates static electricity and works to protect and extend the life of your valuable print heads, which account for a third of the printer’s cost,’ said Andy Ren, European key account manager for Zhuoli. ‘As the world’s only vertically integrated TTR manufacturer, we introduced this new material at the beginning of this year, especially for the European and American markets,’ he added. ‘Around 70 or 80 partners have made early arrangements with us, from Europe, America and the Middle East. It’s our fourth time participating at Labelexpo Europe.’
Source: Labels and labeling
