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MARKET WATCH 4 DEC 2017

NATIONAL

INTERNATIONAL

Exporters hope for more tariff aid in trade policy

Exporters have asked for greater government support in the Foreign Trade Policy, to be released on Tuesday, especially with exports dipping for the first time in 15 months in October. After being postponed repeatedly for five straight months, the government is due to come up with the mid-term review of the foreign trade policy (FTP) on Tuesday. The fiveyear FTP has been in effect since April 1, 2015, and aims to facilitate exports, so that the country manages to send out $900-billion worth of goods and services by 2020. It also aims to increase India’s share of world exports to 3.5 per cent, from two per cent. Exports had declined 1.1 per cent in October, with the trade deficit widening the most in three years, at $14 billion. To tackle falling exports, the Federation of Indian Export Organisations (FIEO) has asked for tariff support. “We have demanded that the government increase tariff support across export segments by providing two per cent additional support under the Merchandise Exports from India Scheme (MEIS) as well as widening of the Integrated Incremental Export Incentivisation Scheme (IEIS),” FIEO President Ganesh Kumar Gupta told Business Standard. The mid-term review of the FTP is aimed to take stock of the changing aspects of global trade, rationalise norms and bring into play new policies, including tweaks in promotion schemes, to boost trade facilitation. This was supposed to coincide with the July 1 roll-out of the goods and services tax (GST). At the last assessment meeting of the FTP, senior officials said the December deadline was difficult to meet. However, work was expedited under Commerce and Industry Minister Suresh Prabhu, senior ministry officials told Business Standard. FIEO has also suggested that traders selling goods to foreign tourists be exempted from paying taxes as the goods were deemed exports. “Around 15 years back, there was a similar policy. Even now, the government exempts duty-free shops in airports,” Gupta said. The FIEO had informed the ministry the $900-billion target needed to be trimmed down to $700 billion, taking into consideration global trade growth and the country’s export competitiveness in key sectors, he added. The effects of the GST regime and the export promotion schemes were throwing up new challenges every week, said exporters. They also pointed out that traders’ prime concern of ~50,000-crore dues of GST refunds must be addressed in the FTP. FIEO Director General Ajay Sahai said exports would need to grow at a compound rate of 27 per cent annually until 2020 for the target to be reached.

Source : Business Standard

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Exporters file over 10K applications for GST refunds

With over 10,000 applications for refunds filed by exporters till November, the GST Network on Sunday asked exporters to ensure that the claims do not exceed the GST paid in that month. The Central Board of Excise and Customs (CBEC) had last month started refunds for exporters of goods who have paid IGST and have claimed refund based on shipping bill by filling up Table 6A. Earlier this month, it allowed businesses making zero rated supplies or those who have paid IGST on exports or those want to claim input credit to fill Form RFD-01A. It asked them to approach chief commissioner of central tax and the commissioner of state tax for the claim. “As on November 30, 5,677 applications have already been filed by exporters using RFD-01 and 4,386 applications have been filed by them using Table-6 A of GSTR-1,” said a statement by the GST Network. The Finance Ministry had last week said that exporters had claimed refunds of Rs 6,500 crore in the first four months of the GST roll out, and had advised them to file claims in proper form with matching shipping bills to facilitate early settlements. GST was rolled out from July 1. GSTN, the company handling the technology backbone of the new indirect tax regime, said that in order to claim refund for any month, the exporter would have to file initial sales return or GSTR-3B for that month. “The amount of refund claimed in Table-6A should not be more than the amount paid in GSR-3B of that month,” it said, adding that details of shipping bills, as filed with Customs, should be provided in Table-6A.      

Source: Financial Express

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Modi government plans to allow consumers to switch power service companies

Consumers will be able to change their power suppliers just like telecom services, after proposed amendment to the existing Electricity Act is approved, Union Minister RK Singh said. The power ministry will push Electricity Amendment Bill in forthcoming Budget session, which provides for segregating the distribution network business and the electricity supply business. "We are bringing a lot of amendment in the Electricity Act. It also provides for separation of carriage and content business. The draft would come to me in another week or so. We will try to push it for passage in Budget session of Parliament," the power and new & renewable energy minister told in an interview. The separation will pave the way for introducing a new system where consumers will have option to choose from multiple electricity service providers in their areas, similar to that of telecom services. Elaborating further Singh said, "Once the Act is amended, we would prepare a roadmap in consultation with states to prepare a roadmap to segregate distribution and supply wings of the discoms. After that monopoly will be eliminated in supply wing by giving franchise to more than one players in an electricity supply area".He also told that the amendments would also provide for stricter enforcement of Renewable Purchase Obligation (RPO). Besides, the bill will also provide for making tariff policy mandatory to keep cross subsidy below 20 per cent. It means that difference between highest and lowest tariff rates should not be more than 20 per cent. The minister said that it will help to make industrial tariff reasonable which is unsustainable at present. The bill would also provide direct benefit transfer of subsidy to farmers to improve efficiency in power consumption. It also seeks service obligation on part discoms to ensure reliable power supply service by March, 2019. "Power demand growth rate will be good because of two reason. Firstly, we are adding 40 million more consumer under Saubhagya Scheme by December 2018. Besides, industrial growth would create more demand for power consumption," Singh said. The minister was of the view that per capital consumption in the country will also increase in future. It is 1,075 units in India as against 5,000-6,000 units in Europe and around 1,1000 units in the US. "Future increase in energy consumption is going to happen here in India and electricity will be leading it because of change in energy mix. I see that electricity is edging out the fossil fuel. It is easier to transport. Mobility and cooking would become electrical," he said. On village electrification he said that it is snowing in some areas in Jammu & Kashmir, so the work in those areas will start in March or April. And in Arunachal Pradesh, it will be completed by January or February next year, excluding areas affected due to snow fall. "We will go to the Cabinet with a proposal to make 24X7 power obligatory from March 2019. Load shedding would not allowed except in cases of act of god or technical faults. There would be penalty for violators. This will not have any impact on tariff," the minister said. The power ministry has identified some states where leakages or losses are more than 21 per cent and written a letter to them for reduction of these losses. Aggregate technical and commercial (AT&C) loses should not be more than 5 to 7 per cent otherwise it can be construed that there is theft of power, Singh said. In order to deal with this issue, the government is promoting pre-paid and smart meters. The minister further said that the power ministry has asked the states to reduce their AT&C losses below 15 per cent by 2019.

Source: Economic Times

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Iran’s Chabahar port opens new India-Afghan lane

The first phase of the Chabahar port on the Gulf of Oman was inaugurated today by Iranian President Hassan Rouhani, opening a new strategic route connecting Iran, India and Afghanistan bypassing Pakistan, and reflecting growing convergence of interests among the three countries. The port in the Sistan-Balochistan province on the energy-rich nation’s southern coast is easily accessible from India’s western coast and is increasingly seen as a counter to Pakistan’s Gwadar Port, which is being developed with Chinese investment and is located at distance of around 80 kms from Chabahar. The Ministry of External Affairs (MEA) said Minister of State for Shipping Pon Radhakrishnan represented India at the inauguration ceremony of the Phase 1 of the Shahid Beheshti Port at Chabahar which was also attended by ambassadors and senior officials of the region. An India-Iran-Afghanistan ministerial-level trilateral meeting on Chabahar also took place today on the sidelines of the event where the three countries resolved to work towards integrated development of connectivity infrastructure including ports, road and rail networks to open up greater opportunities for regional market access and integration of their economies. The Chabahar port is being considered a gateway to golden opportunities for trade by India, Iran and Afghanistan with central Asian countries besides ramping up trade among the three countries in the wake of Pakistan denying transit access to New Delhi. “The routes of the region should be connected on land, sea and air,” Rouhani said at the inauguration ceremony, according to his office. India has been closely working with Afghanistan and Iran to create alternative, reliable access routes for trade. Under the agreement signed between India and Iran in May last year, India is to equip and operate two berths in Chabahar Port Phase-I with capital investment of USD 85.21 million and annual revenue expenditure of USD 22.95 million on a 10-year lease. The MEA, in a statement, said Radhakrishnan also represented India in the second India-Iran-Afghanistan ministerial-level trilateral meeting on Chabahar port in Chabahar today. Iran was represented by its Transport Minister Abbas Akhoundi and Afghanistan by its Trade and Commerce Minister Humayoon Rasaw. In the meeting, the three countries assessed the progress in the development of the port and reiterated their commitment to complete and operationalise it at the earliest, which they felt would provide alternative access to landlocked Afghanistan to regional and global markets. A joint statement issued after the meeting said the ministers also deliberated on trilateral pact relating to the mega connectivity project and expressed satisfaction on the completion of the ratification procedures by Afghanistan and India. They welcomed the steps taken by Iran to complete the ratification process. In May 2016, India, Iran and Afghanistan had inked a pact which entailed establishment of Transit and Transport Corridor among the three countries using Chabahar Port as one of the regional hubs for sea transportation in Iran, besides multi- modal transport of goods and passengers across the three nations. “The ministers discussed the next steps for full implementation of the agreement and moving towards its operationalisation. Towards this endeavour, it was decided to finalise protocols related to transport and transit, ports, customs procedures and consular affairs. It was also decided to convene an expert-level meeting of senior officials of the three countries at the earliest,” the joint statement said. Reiterating the importance of Chabahar as a hub for regional economic connectivity and their commitment to work towards this objective, the ministers also commended the joint efforts of the three countries in the recent successful transit of wheat from India to Afghanistan through Chabahar. “The ministers agreed that an integrated development of connectivity infrastructure including ports, road and rail networks would open up greater opportunities for regional market access and contribute towards the economic integration and benefit of the three countries and the region,” the statement said. The ministers also agreed to organise a connectivity event involving all stakeholders at Chabahar at the earliest so as to increase awareness about the new opportunities offered by Chabahar Port. The MEA said the meeting also commended the transit of first tranche of 1,10,000 tonnes of wheat from India to Afghanistan through the Chabahar Port. It said Radhakrishnan expressed his positive appreciation to the Iranian side on the recent steps taken towards ratification by the Majlis of Iran on the Trilateral Transit and Trade Agreement signed in May 2016 between India, Iran and Afghanistan. Speaking at the inauguration ceremony, Rouhani noted that transit is the best communication tool for nations, adding . “the routes of the region should be connected on land, sea and air,” according to his office. Ahead of the inauguration of the port, External Affairs Minister Sushma Swaraj yesterday met her Iranian counterpart Javed Zarif in Tehran during which implementation of the Chabahar port project was discussed among other issues. Swaraj made a stopover at Tehran on her return from Russian city of Sochi where she had attended the annual summit of the Shanghai Cooperation Organisation (SCO). Over a month ago, India had sent its first consignment of wheat to Afghanistan by sea through the Chabahar port, marking opening of the new transit route.

Source : Business Line

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BJP, Congress go all out to woo textile traders

SURAT: With just six days left for election campaigning to end, political parties are leaving no stone unturned to woo textile traders of the textile markets located on Ring Road in the city. While Congress candidates are making their national leaders to visit the textile markets and have one-on-one discussion with the traders' community over Goods and Service Tax (GST) and demonetisation, BJP leaders, too, are going after the traders. On Friday, BJP candidate and sitting MLA Harsh Sanghavi went to campaign in the textile markets with Rajasthan's home minister Gulab Chand Kataria and Union minister of state for law and justice P P Chaudhary. Both Kataria and Chaudhary are from Rajasthan and the textile markets have Marwari traders in huge numbers. Rajasthan chief minister Vasundhara Raje Scindia could also visit the Diamond City on November 5 to meet Marwari voters, especially the textile traders. Two days ago, Congress leader Anand Sharma and former chief minister of Haryana Bhupinder Singh Hooda held meetings with the textile traders. Earlier, Rajasthan Congress president Sachin Pilot had also visited the textile markets. Congress vice-president Rahul Gandhi had also visited the textile markets in the first week of November. Harsh Sanghavi also met textile trader Hitesh Sanklecha, who had grabbed the headlines during the 20-day-long indefinite strike against GST in July. Sanklecha was on indefinite hunger strike for 22 days demanding removal of five per cent GST on MMF fabrics. Sanklecha had played a key role in organizing the massive rally of textile traders on Ring Road. Former president of Federation of Surat Textile Traders Association (FOSTTA) Sanjay Jagnani said, "National leaders from both the parties are visiting the traders. Even Union finance minister Arun Jaitley met textile stakeholders during his recent visit to the city and promised to resolve GST issues. But, the traders are angry with GST and BJP's policy of not giving representation to north Indians in the assembly elections." Harsh Sanghavi said, "We are moving in all the textile markets for campaigning. Union finance minister Jaitley has assured the government's support to resolve procedural issues faced by the textile sector because of GST. I am sure that the textile traders are happy. They will soon see simplification formula in the coming days."

Source: Times of India

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Small units' export prop

New Delhi: The much delayed mid-year review of the Foreign Trade Policy (FTP), to be unveiled this week, would focus on sops to small and medium enterprises (SME) and labour-intensive segments. The trade policy, to be released on Tuesday, is likely to give a 2 per cent additional incentive under the Merchandise Export from India Scheme (MEIS) to labour-incentive sectors such as leather, sports goods, marine products and textiles. The commerce ministry gives benefits to several products as "duty credit scrips" under the Merchandise Exports from India Scheme (MEIS), which can be used to import inputs by the exporter or sold to other entities. The commerce ministry had recently raised the rate of incentive under MEIS for garments and made-ups to 4 per cent from 2 per cent till June 2018 to help exporters struggling with the implementation of the GST. “Most of the incentives for goods under the ongoing five-year FTP are extended through the MEIS scheme. So, in the review of the FTP, the additional sops will be given through the scheme," the official said. Officials said the MEIS is being re-designed to make exports from India compliant with the GST and WTO. Duty-drawbacks are basically taxes foregone and that is considered a "prohibited subsidy" by the WTO. However, globally, zero-rating of exports are a norm and this is WTO-compatible as the idea is to neutralise the tax content in export items and not to subsidise them. The mid-term review of the FTP is aimed to take stock of the changing aspects of global trade, rationalise trade norms and bring into play new policies to boost trade facilitation that may include tweaks in the export promotion schemes. The review comes at a time India's goods exports have shrunk (-) 1.12 per cent in October this year to $23 billion, the lowest since (-) 6.86 per cent in July 2016, which was the last time the shipments contracted. The fall in shipments in October, the first after 14 consecutive months of positive growth, was understood to be because of the GST impact. G.K. Gupta, president of the Federation of Indian Export Organisations, had said, "The fall was expected as exporters, particularly SMEs, were facing liquidity problem to pay the GST for four months in a row without getting any refund."

Source : Telegraph

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Texprocil urges govt to raise MEIS on cotton fabrics to 4%

Textiles Export Promotion Council (TEXPROCIL) has hailed the raise in the rates of the merchandise exports from India scheme (MEIS) and rebate on state levies (RoSL), saying the step will benefit made-ups sector exporters facing tough times. It urged for inclusion of cotton yarn under MEIS and raising the same on cotton fabrics to 4 per cent.

Texprocil chairman Ujwal Lahoti, in a press release, said, made-ups is a labour intensive sector and any encouragement will have a positive impact on the entire value chain of cotton textiles. While every other segment in the textile value chain, including man-made fibre spun yarn, have been provided with the MEIS benefits, cotton yarn has been excluded for some inexplicable reason, even though it was included in the Focus Market Scheme (FMS), Incremental Export Incentive Scheme under the earlier Foreign Trade Policy, Lahori said. Withdrawal of the export incentives for cotton yarn has reduced India’s competitive edge as Indian prices have increased by 5-6 per cent. Increase in exports of cotton yarn will benefit not only the spinning sector but also the cotton farmers and the value added segments of fabrics and made-ups and garment, he added.

Source: Fibre2fashion

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Reverse charge mechanism ‘unjust’, say cotton traders

Coimbatore, December 3: The issue of Reverse Charge Mechanism (RCM) on cotton has come under attack. Members of the trade, ginners and seed producers have threatened to go on an indefinite strike if the RCM issue remains unresolved during the next GST Council meeting on December 21 by closing shutters from the very next day. Members of Cotton Association of India (CAI) including representatives from ginners fraternity and members from all upcountry associations of cotton growing states deliberated on the RCM issue before deciding to give an indefinite call for strike if the issue is not addressed at the next GST Council meet. Atul S Ganatra, President, CAI, chaired the meeting. Issues relating to pending refunds to exporters since the roll of GST from July 1, plight of the cotton sector due to pink bollworm infestation and the consequent loss suffered by the farming community, blockage of ginners funds as cotton seed buyers and buyers of cotton bales were not paying GST were deliberated at length. Trade sources appealed to CAI to take up the matter relating to removal of RCM on kappas. Closure, only option Omprakash Jain, President, Karnataka Cotton Association, said if RCM on cotton is not removed immediately, there would be no way left for ginners but to close down operations. BS Rajpal, President, Maharashtra Cotton Ginners’ Association, contended that imposition of RCM on cotton is unjust as no other agri-commodity came under the purview of RCM. Manish Daga, Director, CAI, said around 2,700 farmers were diverting from cultivation of cotton to other crops every day. The resultant impact could adversely affect the textile sector.

Source: Business line

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Time to wear your attitude

The brand houses outfits that intend to satisfy every young woman's need, be it through the colour palette or the style. Monali Ranka, the owner of 'Fulki', likes to offer Bengalureans the best of everything. "We have jumpsuits and beautiful tops with exaggerated or bell sleeves that make a statement by themselves," she says. A range of fabrics, from textured georgette to crepes and knits to silks, have been experimented with in this collection. "Our designs are an amalgamation of all these fabrics, skillfully crafted to provide innovative designs. These outfits can be worn to work as well as to an event later on," she adds. The brand aims to provide fashion options that need not be set aside for special occasions but can be worn to work as well. "A warm long-sleeved shimmer knitted top can be worn with leggings or skinny jeans. It will work for the day as well as the night," says Monali. From long to midi dresses, sequinned tops to classy jumpsuits, the collection has it all. "The very fact that one shouldn't have to wait to wear something really nice is the gist behind this collection," she says. "Be it a private party or a romantic date, our latest collection intends to provide Friday wear, which will make one shine without much effort," she adds. Sequinned gowns, frills, exaggerated sleeved tops, off and cold-shouldered outfits rule the latest collection. "My recent holiday to Europe has inspired many of the drapes in the latest collection. Nature inspires me. I am also inspired by the trends of today," she says. "The colours that are experimented with in this collection range from black and white to neon hues, wine red, mustard, blues and greens. This line gives a nice twist to one's conventional choices while providing just the right look for any given day." 'Fulki' studio is located at no 55, 5th Cross Road, 6th Block, Koramangala.

Source: Deccan Herald

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India may move to 2-tier GST, 28% on luxury goods: Jaitley

The 12 and 18 per cent rates under the goods and services tax (GST) may be merged once revenue collections pick up and the top 28 per cent slab would be for a “very thin" list of luxury and sin goods, Indian finance minister Arun Jaitley hinted recently. That would result in two rates, 5 per cent and another 'X' per cent to be decided later, he said. The new regime started with multiple rates to keep the tax incidence around the same level that existed before GST, Jaitley told the HT Leadership Summit in New Delhi. The country would eventually move to a two- tier GST, but that would depend on the revenue position of the government, a news agency report quoted him as saying.
GST has four tax slabs of 5, 12, 18 and 28 per cent. There is also a zero per cent tax on certain essential daily use commodities.  Stressing on the need to reduce the compliance burden on small and medium enterprises, he said that is “a legitimate noise”. (DS)

Source: Fibre2Fashion

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Cotton ginners and pressers to go on  1-day strike against RCM under GST

The cotton growers and  ginners have decided to go on  one day token protest against  Reverse Charge Mechanism  (RCM) under GST on 15th  December 2017 and thereafter on  an indefinite strike in their  respective States by closing  shutters from 22nd December  2017 if the issue of RCM was not  resolved in the next meeting of  the GST Council which is  scheduled to be held on 21st  December 2017.  The above decision was  taken at a meeting organised by  Cotton Association of India  (CAI) along-with upcountry  associations of all cotton  growing States.  The meeting chaired by by  Mr. Atul S. Ganatra  President  CAI  discussed the plight of the  entire cotton sector across the  country and the issue of pending  refunds to exporters since July  2017 on account of GST were  deliberated at the meeting.  During the meeting  Mr.  Manjeet Singh Chawla  President  of Madhyanchal Cotton Ginners  & Traders Association pointed  out that due to RCM  huge funds  of ginners were blocked and since  cotton seed buyers and the  buyers of cotton bales were not  paying GST to the ginners this  has led to the blockage of huge  funds of the ginners.  Mr. Chawla requested CAI  to take up the matter relating to  removal of RCM on kapas. He also stated that the RCM on  cotton has also led to tarnishing  relationship between the spinners  and ginners.  Mr. Omprakash Jain President of Karnataka Cotton Association stated that unless  RCM on cotton is removed  immediately there will be no way  left to the ginners but to close  down their operations.  He appreciated the efforts  of CAI in calling this meeting and  pointed out that this was perhaps  for the first time in the history of  the CAI that ginners were  provided a platform to discuss  their issues.  Mr. B.S. Rajpal  President  of Maharashtra Cotton Ginners’  Association stated that RCM has  been imposed only on cotton and  not on other agri-commodities  which is totally unjust. He added  that if this RCM continues on  kapas it will entail huge losses to  the sector.  He also requested CAI to  take up the matter relating to  removal of RCM with the  Government which will also  indirectly benefit the farmers in  realising better price for their  kapas.  Mr. Ravinder Reddy  President  Telangana Cotton  Millers & Traders Welfare  Association highlighted the  damage caused to the crop and  heavy losses suffered by the  farmers due to pink bollworm and  uncertain rains in Telangana.  Mr. Reddy added that this  matter was engaging the active  attention of the State  Government.  Mr. Manish Daga  Director  CAI informed that every day  about 2700 farmers were diverting  from cotton  the most established  cash crop in India  to other  competing crops.  This year cotton farmers  have already suffered huge  losses due to lots of climatic and  pink bollworm problems and if  the RCM continues  the cotton  farming will substantially reduce  in India and adversely affect to  the whole textile sector  he  added.  Mr. Rajendra Barwale  Managing Director of  Maharashtra Hybrid Seeds  Company Limited and his team  who were present at the meeting  made a presentation on the  menace of pink bollworm and  ways to arrest spread of the same.  The presentation also highlighted the need for continued research for the benefit of the cotton sector.

Source: Tecoya Trend

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2nd GTTES expo planned  from 01-03 February 2019  

MUMBAI  DEC. 03—  Global Textile Technology & Engineering Show (GTTES 2019)  well received as its first edition is opening its booking on 4th  December  2017 for 2nd edition to be held from 1st – 3rd February  2019 at Bombay Exhibition Centre  Goregaon  Mumbai.  GTTES 2019 is supported  by Department of Heavy  Industry (DHI)  Government of  India  and Government of  Maharashtra and has already  received a hearty response.  Tremendous excitement and  anticipation from foreign  exhibitors  enquiries from  overseas delegates are a  testimony to the success of  previous edition held in 2015.  Also the transparent process  focus on providing value for  money and quality service in exhibition has generated tremendous  trust and appreciation for India ITME Society as organiser of both  GTTES and India ITME series.  GTTES 2019 aims to provide a platform to congregate the  leading strategists  experts  innovators & management developers  from European  American & Asia-Pacific area.  This Global textile Technology & Engineering Show offers  you a wide range of opportunities  from engaging with industry  leaders at the highest level  to showcasing your products and services  to an international audience. Therefore  having a presence at GTTES  2019 is simply a must for  Companies  Government representatives  Associations  Universities & those connected with the textile  machinery world.  For enhancing the  effectiveness of the event  the  participants will be provided  numerous opportunities to learn  the latest industry resources &  tools from business  governmental and academic  aspects.  India ITME Society has hit  the right chord with the needs of  the Textile Industry through  GTTES 2019  an exclusive show to capture the World’s attention on  strengths & opportunities of Global Textile Industry  with special  focus on post spinning segments like weaving  processing  knitting  embroidery  garmenting and more.  The one & only trade event in India dedicated to magnify  business and trade for Textile Machinery manufacturers  through  interaction with agents / dealers from India and across the Globe.

Source: Tecoya Trend

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Global Textile Raw Material Price 2017-12-03

Item

Price

Unit

Fluctuation

Date

PSF

1344.79

USD/Ton

0%

12/4/2017

VSF

2190.95

USD/Ton

-0.68%

12/4/2017

ASF

2659.36

USD/Ton

0%

12/4/2017

Polyester POY

1329.68

USD/Ton

0%

12/4/2017

Nylon FDY

3414.86

USD/Ton

0%

12/4/2017

40D Spandex

5968.45

USD/Ton

0%

12/4/2017

Polyester DTY

5711.58

USD/Ton

0%

12/4/2017

Nylon POY

1578.995

USD/Ton

0%

12/4/2017

Acrylic Top 3D

3218.43

USD/Ton

0%

12/4/2017

Polyester FDY

2795.35

USD/Ton

0%

12/4/2017

Nylon DTY

1662.1

USD/Ton

0%

12/4/2017

Viscose Long Filament

3626.4

USD/Ton

0%

12/4/2017

30S Spun Rayon Yarn

2863.345

USD/Ton

-0.26%

12/4/2017

32S Polyester Yarn

2067.048

USD/Ton

0%

12/4/2017

45S T/C Yarn

2886.01

USD/Ton

0%

12/4/2017

40S Rayon Yarn

3022

USD/Ton

-0.50%

12/4/2017

T/R Yarn 65/35 32S

2493.15

USD/Ton

0%

12/4/2017

45S Polyester Yarn

2190.95

USD/Ton

-0.68%

12/4/2017

T/C Yarn 65/35 32S

2432.71

USD/Ton

-0.62%

12/4/2017

10S Denim Fabric

1.412785

USD/Meter

0%

12/4/2017

32S Twill Fabric

0.871847

USD/Meter

0%

12/4/2017

40S Combed Poplin

1.214844

USD/Meter

0%

12/4/2017

30S Rayon Fabric

0.669373

USD/Meter

0%

12/4/2017

45S T/C Fabric

0.722258

USD/Meter

0%

12/4/2017

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15110 USD dtd. 1/11/2017). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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Egypt: Industry Ministry to offer incentives for textile sector

Egypt will offer incentives for investors to attract new projects in the textile sector, Minister of Industry and Foreign Trade Tarek Kabil said Sunday. In a meeting with the Supreme Council for Textile Industries, Kabil said that the ministry has launched three cities and other industrial complexes for the textile industry in Kafr El-Dawar city, on the outskirts of Alexandria and El-Mahalla city in Damietta governorate.
“The Industry Ministry is cooperating with the ministries of industry, agriculture and the public business sector to develop this sector,” Kabil said in a statement. In October, Kabil announced that Egypt will launch the 2018-2020 national strategy for developing handicrafts and cultural industry before the end of this year. The strategy was said to focus on training workers, marketing products in external markets, and connecting technicians with local supply chains. Exports of the Textile Export Council increased 3 percent in the period between January to October 2017 to stand at $673 million, compared with $651 million a year earlier, according to official figures. Turkey came first among the countries importing textile from Egypt, acquiring $230.27 million of exports, followed by Italy ($132.98 million), Saudi Arabia ($26.79 million) and Tunisia ($21.85 million).  Egypt’s textile exports to Germany and Portugal reached $16.89 million and $13.19 million respectively.

Source: Egypt Today

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Myanmar garment industry stuck in 1993 due to lack of resources

When entrepreneurs in the garment industry launch a business in newly industrialising countries, they often begin by adopting the cut-make-package (CMP) model, in which a garment factory is contracted to cut fabric, produce a product such as a dress, and then package it to be ready for shipment to another company. Moving beyond the CMP stage is a challenge for all newly industrialising countries, and perhaps more so for Myanmar, according to industry experts. While transformation from CMP to an all-inclusive company may take only a couple of years in other countries, Myanmar-based garment businesses have barely budged beyond CMP since the rise of the sector in 1993. “When compared with neighbouring countries, we have lagged behind in many sectors such as banking, technology and investment,” said Tun Tun, central executive committee member of the Myanmar Garment Manufacturers Association. “We have been doing CMP in Myanmar for two decades but other country has already moved on to the FOB system,” said Aung Min, Chairman of Myanmar CMP association. Under FOB – free-on-board or sometimes freight-on-board – retailers place orders from highly capable and well-financed factories that are then responsible for producing the garments in their entirety and arranging for shipment. The retailer makes a purchase and is largely uninvolved in the production process. The CMP model is not limited to the garment sector. Manufacturers of footwear, electronics, kitchenware, car parts, lenses and cameras and others all use this system. In Myanmar, there are 105 companies operating under the CMP system. Myanmar’s garment sector has 400 factories and employed 350,000 in 2016.

Source: Eleven Myanmar

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Cambodia : GMAC urges international community to continue supporting garment industry amid political crackdown

On Friday, the Garment Manufacturers Association in Cambodia (GMAC) issued an open letter to the United Nations, European Union, United States and other foreign embassies asking for continued economic support for the garment industry and its 700,000 workers. The statement followed five separate letters from trade unions, urging foreign buyers to continue purchasing Cambodian garments despite the recent dissolution of the country’s main opposition and a clampdown on civil society and media organisations. GMAC’s Deputy Secretary-General Kaing Monika said the organisation is concerned foreign buyers will reduce their purchases in response to the Cambodian government’s recent actions to stifle dissenting voices. “We’re just worried there might be some misunderstanding by the US or EU about the decisions of our government,” Monika said. “What we are trying to say is to caution people not to misunderstand the situation in Cambodia.” GMAC’s letter described Cambodia’s workers as “currently happy” with next year’s $170 monthly minimum wage and their benefits, referencing elements of Prime Minister Hun Sen’s charm offensive to win workers’ hearts ahead of the national election in July. Fa Saly, president of the National Trade Union of Cambodia, said the letter campaign was not a concerted effort among the unions and GMAC, but the organisations do share an interest in protecting the industry and workers’ jobs. “Cambodia very much relies on the garment industry, and we support GMAC and we’ll continue to submit that statement to the EU Embassy and related embassy’s representatives,” Saly said. In response to the rapid dissolution of the ruling Cambodian People’s Party’s primary opposition, the EU has pointedly noted that Cambodia’s Everything But Arms (EBA) trade status – which allows the nation’s garments and other exports duty-free access to their markets – is dependent on respect for human rights. The US, meanwhile, has pulled election funding, and lawmakers in Washington have publicly floated the possibility of sanctions. Monika said he believed the EU would not cancel the EBA if they “correctly considered” the Cambodian government’s’ decision, but he does not believe losing EBA status would cause irreparable damage. “Even if we’re going to lose it, we could still survive,” he said. “It would just demote a level of competitiveness. I think it would be an opportunity as well for the country to reform in order to survive.” Representatives of the EU Delegation in Cambodia could not be reached, and the US Embassy declined to comment. Cambodian Alliance of Trade Unions President Yang Sophorn said her organisation also didn’t want to lose purchases from the US or EU, though it decided not to put out a letter. Sophorn said the onus was on the government to ensure Cambodia complies with foreign buyers’ requirements for human rights protection. “If the prime minister makes the right decision for the Cambodian economy as well as workers, all people will benefit from it and there would be no more concerns about losing jobs and income,” she said.

Source: The Phnom Pehn post

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Egypt’s cotton exports drop 38.4% in Q4 of agricultural season

CAIRO –  Egypt’s cotton exports went down 38.4 percent in the fourth quarter of the agricultural season 2016/2017, from June-August 2017, standing at 86,000 qantar (157.7kg), compared with around 140,000 qantar in the same period last year, state statistics agency CAPMAS said Sunday. It attributed the drop to a decline in the area of cultivated cotton. In its quarterly report on cotton, CAPMAS said that India came as the top country importing Egyptian cotton, with almost 36,000 qantar, representing 41.5 percent of Egypt’s exports in the period between June and August 2017.The report further revealed that total consumption of domestic cotton stood at 43,000 qantar in the period between June and August 2017, compared to some 118,000 qantar last year, representing a 62.8 percent decrease. Egypt aims to double production of its most famous crop, after a period of slumping output, Agriculture Ministry spokesman Hamed Abdel-Dayem told Reuters in July. He said that production should rise to 1.4 million qintar in the 2017/2018 fiscal year from 700,000 qintar a year earlier. All the cotton will be exported. In July, Egyptian President Abdel Fattah Al-Sisi held a meeting with the Prime Minister as well as the ministers of agriculture and trade and the public enterprise sector in order to discuss ways of boosting the cotton industry. Egyptian cotton is world famous for its high quality for its long fibers that produce a light durable fabric with a soft touch. According to Trade Ministry’s data, the textile and spinning industry contributes with up to 26.4 percent to industrial production.

Source: Egypt Today

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Pakistan : Tangled planning

While the vulnerable smaller textile mills are wondering how to survive the slump, the larger ones, especially those having composite units, have started weaving yarn into branded fabric for stitching up apparel for the local market to cover export losses, which, for some players, are nowhere near over and continue to pile up despite all the subsidies and concessions granted to this industry.

INDUSTRY

While the vulnerable smaller textile mills are wondering how to survive the slump, the larger ones, especially those having composite units, have started weaving yarn into branded fabric for stitching up apparel for the local market to cover export losses, which, for some players, are nowhere near over and continue to pile up despite all the subsidies and concessions granted to this industry. Things are improving though as textile exports rose eight percent to $4.39 billion in the first four months of the current fiscal 2017/18. It was a result of value-added sector’s continued recovery in export earnings during the period. Pakistan Bureau of Statistics (PBS) data also showed that textile exports amounted to $4.075 billion in the July-October period of the past fiscal year. Textiles are going through a positive transformation by increasing their share in the domestic market from 25 percent to around 40 percent in last four years. This way this industry, which usually used to collapse during the rough patches in the past, has reduced its dependence on exports by a measurable extent. Our industry still commands less share of the domestic market than China and India that dispose of over 60 percent of their produce in the domestic market. Chinese and Indian textiles are shielded from depression in export due to larger share in domestic market. Another advantage enjoyed by Chinese and Indian textiles is that their fibre mix (cotton verses manmade fibers) is 75 and 45 percent manmade fiber and 25 to 55 percent cotton. In Pakistan, the ratio is 75 percent cotton and 25 percent manmade fiber. Globally the blend is 75 percent manmade and 25 percent cotton. In case of depression in global textile trade the first casualty is cotton that is traditionally expensive than manmade fiber. Since Pakistani textile industry is predominantly cotton-based therefore its exports suffer more than the other two competing economies. In the same way Chinese textile exports suffer less than the Indians that have large share of cotton in their textiles than Chinese. The textile brands in Pakistan were introduced about a decade back by small and medium sized players having no facility to produce fabric. They outsourced their brand production to the small and even large weavers after competitive bidding and then marketed the fabric at four to five times the price they paid to the producers. The brands of popular designers thus started earning more than the weaving mills because the margins were very high on small turnover. The larger mills started realising that their sustained survival depends upon penetration in the domestic market through brands. Most of them came in a big way. However, the largest brand with the highest number of outlets is still the company that started small and has made a reputation that dwarfs the bigger brands. It now has manufacturing facilities of both fabric and garments. According to latest figures, readymade garments exports surged 14.8 percent to $803.526 million. Export of made-up articles rose 8.81 percent to $222.183 million, while towel exports remained almost flat at $248.224 million in July-October. The big composite units, however, are catching up fast and at least eight players now have countrywide presence with over 200 outlets each. This presence has ensured them a large share in the domestic market and their margins are also much higher than what they used to fetch from their dealers network in the past. The margins are good even after accounting for the expenses of all their outlets. These larger players are in comfortable position and are not seen in the protests lodged by the All Pakistan Textile Mills Association. They pay the same electricity and gas tariffs but the higher cost is covered by the higher price of the brands. They are now in retail sales and their prices are fixed. Now, they don’t have to pay commissions to dealers, wholesalers, and retailers. The outlets have enabled them to introduce new non textile products as well. They have also opened branches in Middle East, Europe, and America, where there is a concentration of immigrants from Pakistan, India and Bangladesh. So in a way they are into branded exports as well. The sales of one of the highly-sought-after ladies fabrics called lawn have exceeded Rs400 billion per year – most of it in the cloth form. It is equivalent to $4 billion worth of exports but at much higher profits. The hue and cry in the textile sector is coming from relatively smaller units that are unable to dispose of their yarn in domestic market because the larger mills or brand owners have edged out non branded products from the market. They cannot export as well because their cost is higher due to obsolete technology. Their survival is now linked to establishing composite units so that they could use their yarn and fabric for value-added products. For exports they will have to upgrade technology to increase efficiencies in speed, use of power to global level. Government subsidies if provided would not bail them out for long.

Source: The News

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Textiles of recycled fibres must reach mass market: Report

The textile items made from recycled fibres should be made available and affordable to the masses apart from the environmentally conscious niche consumer segment, says a recent report. The emotional engagement for such recycled textile products has to be elevated, so that consumers are willing to take good care of them, and use them longer. The brands and retailers are in the key position in defining the new circular customer value proposition – which is central for the profitability of the new circular business models of all business ecosystem actors, said the business ecosystem report of the Relooping Fashion Initiative. Focusing on the business ecosystem modeling work, the report has introduced crystallised vision of a higher-level system that enables the textiles industry to operate according to the basic principles of a circular economy. The report has been published by VTT Technical Research Centre of Finland. "The growing interest among the textile industry, and more specifically the biggest consumer clothing producers and brands, towards recycled textiles, is the key driver for developing new recycling technologies. This places the brands and retailers, who are close to consumers, in a central role in the circular business ecosystem of textiles. Being also closely involved in the R&D initiatives for the new recycling techniques, brands are getting a bigger role in fibre production as well," the report stated. The main direct opportunities of the circular economy relate to resource efficiency, the possibility to replace and reduce the usage of virgin materials, elimination of waste, new opportunities for employment, business and innovation, as well as promotion of sustainable consumption habits and fostering socio-economic well-being. "Setting up the circular material flows will shorten the value chains, because brands will have to work very closely with all the actors of the entire business ecosystem. The retailers and brands will in the future also increasingly apply new circular business models, which are based on product use, rather than sales," according to the report. (RR)

Source: Fibre2Fashion

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Commercial cotton crop in Queensland's Gulf Country goes large-scale

Trials of non-irrigated cotton at Strathmore Station in Queensland's Gulf Country have paved the way for the first large-scale commercial crop. About 3,000 hectares of cotton will be planted before Christmas to take advantage of wet season rains in what is the country's northernmost commercial plot. The dryland project is a partnership between one of Australia's grain industry leaders, Ron Greentree, and Strathmore Station's owner, Scott Harris, who have been family friends for many years. Last year, they planted their first trial commercial crop of about 1,000 hectares, which yielded about two bales to the hectare. In central Queensland, growers are averaging between 10 and 15 bales per hectare. Gulf of Carpentaria cotton grows faster than southern crops, but trials have produced smaller yields. Mr Greentree blamed an early monsoon for that result, and despite that has opted to push ahead with tripling the plot size, but this time planting will begin well before the rain is due. "We're quite excited about it and also very nervous," Mr Greentree said. "No-one's done it before so there's no experienced person you can go and have a cup of tea with to talk about it, and there's no textbook."

Cottoning on to growing in the Gulf

Mr Greentree said the main benefit of producing cotton close to the equator was the speed of growth. The crop will be ready to harvest in May, five months after it is planted, compared to a six-month cycle further south. The variety being grown at Strathmore Station is Monsanto Roundup Ready GM cotton, which is tolerant to glyphosate. Mr Greentree said it was performing well and insects had not proven to be a problem, but getting the soil nutrition right had been a case of trial and error. "It's just working out the right type of nutrition, so we've had some soil scientists here and we've found there are a few more trace elements we need to grow the crop properly," he said.

 Stifling freight costs cut into profit

The most limiting cost factor is freight. Currently, the bales have to be transported to the Emerald gin 1,200km south of Strathmore Station, at a cost of $100 each. Ron Greentree has plans to build a gin if overall cotton production in the Gulf of Carpentaria reaches 35,000 hectares. Mr Greentree said given the average price of cotton was $500 per gin bale, that equated to freight costing 20 per cent of the return, so he was now investigating the possibility of building a gin in the Etheridge Shire. As well as cutting down on freight costs, a far north gin would allow for the processed cotton to be shipped through the Townsville port rather than Brisbane, and cotton seed would be available locally for purchase at a lower price. Mr Greentree estimates it would cost $20 million to build the gin, and to make it worthwhile the region would first need to be growing about 35,000 hectares of cotton. "There's a bit of an education program that will go on with that, and if we can get a few more people involved, hopefully it's something we can do in the next three or four years," he said.

Broad-scale cropping in the north

The commercial cotton crop is the latest progression in the roll-out of broad-scale cropping in northern Australia. It will be watched closely by Kimberley Agriculture Investment, which is this year trialling a small plot of cotton in Kununurra, Western Australia. Sorghum and legumes are also being grown north of the Tropic of Capricorn, while the first harvest of dryland rice occurred at Olive Vale Station on Cape York earlier this year. Mr Greentree said being a frontier farmer had its highs and lows. "It's a good way to make a lot of mistakes and spend too much money, but it is rewarding to see great grazing country turned into good farming country."

Source: ABC Rural

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In China, preserving the dying craft of dyeing cloth by hand

WUZHEN, CHINA (CHINA DAILY/ASIA NEWS NETWORK) -One of the first things that catches the eye upon entering Wuzhen, a town in China's eastern coastal province of Zhejiang, from its Xiazha entrance are the long pieces of indigo textiles with white patterns that gently sway from tall poles. Called lan yin hua bu, or "blue floral print cloth", these creations are the product of a traditional craft that has been around for thousands of years. According to Xun Zi, a book on Confucianism, Chinese have been extracting indigo dye from plants since as far back as the 3rd century BC, but it was only around the Song Dynasty (960-1279) when this dye was widely used for textiles. Such textiles were widely used in society up until the late 1980s, when machines which could quickly manufacture synthetic dyes that came in different colours became widespread. Consumers were now spoilt for choice. Indigo just didn't seem very exciting anymore. "During my childhood in the 1960s, clothes, tablecloth and curtains were all made with this textile," recalled Zhou Jiming, who runs Tongxiang Indigo Print Making, one of the oldest workshops for such cloth in the city. "Atthe peak of this craft in the mid-1980s, our company had about 130 workers and our products were exported to places like Japan. Today, we only have around 20 workers." Zhou was 28 when he first learned how to do indigo dyeing at a workshop that was located along the route to his school. He later joined Tongxiang Indigo Print Making and has since been working there for the past 32 years. Today, his workshop is able to create about 200 patterns, many of which are derived from Chinese folklore. He can also create customised designs. The most popular patterns are those featuring flowers and animals as they are often symbolic in Chinese culture. For example, the peony is a symbol of wealth and prosperity, while pine trees represent longevity. Those unfamiliar with this craft may think that this textile is made simply by imprinting white patterns on blue cloth. However, the production process, which is almost completely manual, is a lot more complicated than that. The first step of the process involves carving out the motifs on a thick paper template by hand. Zhou said that an intricate design would take a skilled carver up to four days to complete. These patterns are then transferred onto white cotton cloth by brushing a dye-resistant paste made with lime and grounded soy bean over the template. It takes about three days for this paste to dry, following which the cloth undergoes the dyeing process. Indigo dye is extracted from the woad plant, also sometimes known as Asp of Jerusalem, by grinding and fermenting its leaves. The dye is then poured into a large caldron where the cloth is immersed a number of times until it turns indigo. Following this, workers extend the cloth and scratch off the dye-resistant paste, leaving behind the white motifs underneath.The last step of the process is the washing of the cloth to remove any remnant particles and hanging it out to dry on poles. In 2006, this traditional craft was listed as a national intangible heritage. Two years later, Zhou was named as one of the inheritors of this craft. Though such textiles are no longer as popular as before, Zhou's workshop still sells about 2 million yuan (S$407,000) worth of it every year, but most of his clients today are souvenir stalls and clothing boutiques catering to tourists. "People used to consider these sort of clothes very special. Today, such textiles are more for people who appreciate old culture," said the 66-year-old. When asked why he has not packed up the business to pursue something more lucrative, Zhou said that he has a responsibility to teach what he knows to the next generation and ensure this traditional craft does not go extinct. He revealed that he has plans to build a museum to showcase this traditional handicraft and teach people how to create their own indigo cloth. "Allowing people to experience the process of making this textile is an essential element in the preservation of this craft. It helps them to appreciate the effort that goes into making such products," he said. "Today, there are many machine-made alternatives in the market that use synthetic dye, but they cannot be called lan yin hua bu. This product we have here is all natural. "There's hardly anything else like it." he added.

Source: The Straits Times

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How Environmentally Friendly is Viscose? A New Study Sheds Light

When it comes to viscose fiber, where the raw materials come from goes a long way in determining its environmental impact. That’s according to a recent Life Cycle Assessment (LCA) study completed by SCS Global Services on behalf of Stella McCartney, focusing on the production of viscose fiber.Tobias Schultz, director of research and development at SCS, who headed up the certification team for the LCA study, wrote in a blog post revealing some of the key learnings, including the fact that there are distinct impacts of different manmade cellulosic fibers (MMCF). Schultz said apparel companies are keenly interested in identifying environmentally preferable fibers for use in the manufacture of clothing, but little research had been conducted on viscose—also known as rayon—compared to materials such as cotton or polyester. In the study, conventional viscose produced from wood was compared with innovative new technologies like flax-based fiber substitutes. The study broke new ground by including an evaluation of impacts on terrestrial and freshwater ecosystems in the forests and farms of origin. Manmade cellulosic fibers from different sources may be functionally and chemically identical, but can have radically different environmental profiles based on the processes and technologies used in production, according to Tobias. For example, manmade cellulosics from tropical hardwoods originating in Indonesia had significant negative impacts associated with deforestation of the rainforest, which were completely different from MMCF originating from well-managed forests in Sweden. “There’s no home run when it comes to selecting environmentally preferable fibers,” he said. “All sources of MMCF had trade-offs, although some performed better overall than others.” While none of the 10 sourcing scenarios were environmentally preferable across all impact categories, MMCF made from Belgian flax or recycled clothing emerged as favorable across a majority of impact categories. Overall, these two innovative technologies were the most favorable sources identified in the LCA, he noted. Asian production from Canadian boreal forest pulp, Chinese production from Indonesian rainforest pulp, Chinese production from Indonesian plantation pulp, and Indian cotton linter pulped in China had the heaviest environmental footprints among the scenarios examined. This cradle-to-gate LCA considered a complete set of environmental performance factors related to the production of MMCF, including all impacts arising from the time raw materials are obtained from forests, agricultural operations or other sources, through the production of MMCFs. In completing the study, Tobias said the latest science and data were applied, conforming to the internationally recognized standards and the Roundwood Product Category Rule (PCR). The report was then peer-reviewed by representatives from Price Waterhouse Cooper, the Smithsonian Tropical Research Institute, the Copernicus Institute of Sustainable Development at Utrecht University, and the environmental not-for-profit organization Canopy. This level of scrutiny ensured the report’s findings were robust and reliable, he said. The study should serve as a key resource for the apparel industry, as it provides insights into the wide range of impacts that a brand’s or supplier’s choice of MMCF fiber source can have, including impacts on species, forest ecosystems, freshwater, global climate and human health. Tobias said he’ll soon reveal more details of the LCA, highlighting and describing the most important features of the research, including the report’s evaluation of ecosystem and biodiversity impacts, information to understanding the greenhouse gas impacts of different MMCF sources, the development of regionalized smog impacts, and how the LCA framework can enable selection of high-performing fibers and drive improvement across the supply chain.

Source: Sourcing Journal Online

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