The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 03 APRIL, 2018

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INTERNATIONAL

Total Rs 17,616 crore of Refunds issued under GST  90% of IGST eligible claims have been approved

In line with commitment of government to liquidate all pending GST refunds, the Central Board of Indirect Taxes and Customs (CBIC) has successfully concluded refund fortnight cum special drive from 15th March, 2018 to 31stMarch, 2018. During the period, all field formations of CBIC worked hard to provide refund relief to the exporters. Special refund cells manned by experienced staff were put in place throughout the country. The exporter awareness campaigns using both print media and social media were carried out so that the benefit can be extended to maximum exporters. All field formations were tasked to go extra mile in order to facilitate the sanctioning of refunds. The Circulars, Instructions etc were issued by CBIC to clarify the issues which threw new challenges while sanctioning of refunds. The success of these effortsis visible in the amount of refunds sanctioned during this period. By the end of 31st March,2018 another Rs. 4265 crore IGST refund has been sanctioned in the refund fortnight taking the total tally to Rs. 9604 crore. Total 2,73,017 Shipping Bills with the payment of IGST have been filed by the exporterstill 31st January, 2018. The number of Shipping Bills disposed of till 31st March, 2018 is 2,28,829 which is about 83% of those Shipping Bills filed till January end. The eligible IGST claims transmitted by GSTN to Customs of the period till 31stJanuary, 2018 are of Rs 10,720 crore, out of which Rs 9,604 crore have been sanctioned which is about 89.6% of those eligible claims transmitted by GSTN. As regards to ITC refunds, Rs. 1,136 crore has been sanctioned during the special drive making the total figure of ITC sanctioned equal to Rs. 5,510 crore by end of this fiscal.

As per the latest available data:

1,61,325 refund applications have been filed in FORM GST RFD-01A on the common portal, in which an amount of Rs. 17,471crore has been claimed. Of these, 60,183 refund applications are in relation to zero rated supplies, in which an amount of Rs. 14,649crore has been claimed. Taxpayers are required to submit a copy of these RFD-01A application to the jurisdictional tax office, along with all supporting documents. However, only 26,620 refund applications (out of 1,61,325 applications) have been actually received in the Central or State tax offices. Of these, 17,734 applications have been disposed off. Of the total amount claimed of Rs. 17,471 crores, an amount of Rs. 8,012 crores has already been sanctioned (Rs. 5,510 crore by Centre and Rs. 2,502 crore by States). Thus, in all, Rs 9,604 crore (IGST refunds), Rs. 5,510 crore (ITC refund by Centre) and Rs 2,502 crore (ITC refund by States) all totalling to Rs 17,616 crore has been sanctioned. Apart from this, an amount of Rs 16,680 crore duty drawback has been disbursed to exporters during the period from 1.7.2017 to 31.03.2018. An amount of Rs 1,833.25 crore approx. has been disbursed to exporters against RoSL claims during financial year 2017-18. The momentum gained during this fortnight would be carried on in future. The CBIC is dedicated to sanction all the legitimate refund claims of exporters. The efforts are being made to resolve those issues which are still pending in consultations with GSTN.

Source:  PIB

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E-way bill rollout very successful; no glitch so far: Government

NEW DELHI: The government on Monday said the re-introduction of the e-way bill system under GST has been "very successful" with no technical glitches. The GST provision, requiring transporters to carry an electronic waybill or e-way bill when moving goods between states, was implemented from yesterday to check rampant tax evasion and boost revenues. "E-way rollout has been very successful and so far there has been no glitches. Although they took two months to perfect... But at this rate I hope very soon we will be able to roll out intra-state," Finance Secretary Hasmukh Adhia said. On the first day, 2.59 lakh e-way bills were generated and another 2.89 lakh were generated till 1600 hours today, GST-Network Chairman Ajay Bhushan Pandey told reporters here. When the e-way bill was first introduced in February 1, the systems had collapsed, following which its implementation was deferred. The GST Council last month decided on April 1 as the implementation date. The system has capacity to take more load and there are technical teams working on this to ensure that the e-way bill works smoothly, said Adhia, who is also the Revenue Secretary. Asked about reports which states that officials are not checking e-way bill from transporters, Adhia said, "People will take some time to adjust but over a period the authorities will start checking the trucks. They will have to because if people are not carrying e-way bill, then it's not fair". Adhia said without e-way bill, there are chances of tax evasion and honest taxpayers feel they are at a disadvantage compared to those people who are evading the taxes. "We hope others will fall in line and generate e-way bill to do this. If they don't do it, there is a penalty provision for that," he said. Adhia said the schedule for roll out of e-way bill for intra-state movement of goods will be announced after a week. "After a week of smooth rollout, we will announce the first set of states where intra-state will come from April 15. Then, one week after that another group of states will be announced, that way there will be gradual introduction of intra-state e-way bill," he said. Adhia said Rs 89,264 crore revenue has come in from GST for the month of February, taking the total GST collection for the full fiscal to Rs 7,17,638 crore. This would be divided between the Centre and states. Asked if the government has met the estimated collection from GST as given in revised estimates, Adhia said 98 per cent of the target has been met so far. The estimated collection for 8 months (July-February) of the current fiscal is Rs 4.44 lakh crore. The March collection will take place in April, the start of new financial year, 2018-19. Adhia said the GST revenues will pick up further as we have more compliance requirements coming into being particularly e-way bill. "Various authorities are now getting a grip on who all are filing, who all are not paying taxes. So, we will be able to discover more of such people who are collecting GST and not paying taxes to government. Recently the DG GSTI has detected Rs 200 crore of such fraud taking place where they have collected the GST and not paid," he said. The government has budgeted about Rs 7.44 lakh crore from GST in the 2018-19 fiscal beginning April 1. The Directorate General of GST Intelligence (DGGSTI) is the body responsible for detecting tax evasion under Goods and Services Tax (GST) regime. Besides, the government has sanctioned GST refunds to exporters to the tune of Rs 17,616 crore. Of this, Rs 9,604 crore is on account of Integrated GST refund and another Rs 5,510 crore on account of refund on input credit. Besides, another Rs 34,000 crore has been refunded on account of duty drawback and Rebate of State Levies (ROSL). Chairman of GSTN, the company handling the IT backbone, further said 1.09 crore businesses are registered under the GST and 5.29 crore GSTR-3B returns have been filed so far. Pandey said based on the data of challan and invoice processing as well as tax collection, "we can fairly say that the system has stabilised".

Source:  Economic Times

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Govt may have to stop export subsidies within the next nine months

Trade experts have said India's position is weak, with no historical precedent for a country winning a reprieve from the WTO on this matter. There is a possibility of the government having to stop export subsidies within the next nine months, if it happens to lose the trade dispute registered by its American counterpart at theWorld Trade Organization (WTO). Last month, US trade representative Robert Lighthizer’s office challenged India at the WTO over the entire spectrum of its export promotion schemes.The allegation is that they provide undue benefit, against WTO rules, for Indian exporters. “Timelines for a prohibited subsidy dispute are normally half of the other disputes. The only way it could go on beyond nine months is if the issue gets appealed. We don’t know how the current logjam at the Dispute Settlement Body (DSB) is going to affect it,” said Abhijit Das, head of the Centre for WTO Studies here. After the US complaint, the commerce ministry said we had 60 days to respond and settle the dispute through consultation, as established by WTO rules. However, it now appears the allocated time for initial consultation, as well as for every single level of the dispute process, will be effectively cut in half. “Consultations would have to get over within 30 days. Thereafter, if the dispute isn’t resolved, the US will be at liberty to seek establishment of a panel. Once done, about six months will be required for it to come up with a report. Thereafter, if India decides to appeal, the appellate body would have about 60 days to decide the matter,” Das added.

Crux

On China, the Donald Trump-led US administration has continued to threaten ‘reciprocal tariffs’ over the past two months. On this country, it has alleged an estimated $7 billion worth of benefits to exporters through six major promotion schemes, when WTO rules prohibit nations with the economic credentials of India from doing so. This includes the Merchandise Exports from India Scheme and the Export Promotion Capital Goods Scheme — these provide support to thousands of entities through ‘scrips’ that can be used to pay basic customs duties. Delhi has argued the law invoked by the US — the Agreement on Subsidies and Countervailing Measures (ASCM) — allows it a window of eight years to phase out these subsidies. ASCM was framed when WTO was set up. It aims at gradually lowering and finally prohibiting of export subsidies provided by nations, so that global trade becomes equitable. However, a limited exception is there for specified developing countries. These may continue to provide export subsidies till they reach a defined economic benchmark of $1,000 per capita income. India was initially within this group of excepted countries but was informed last year by the WTO secretariat that it had crossed the threshold back in 2015. The US now points to this as proof of India knowingly having bent the rules to boost its shipments, by having continuously expanded export promotion schemes. Delhi has stood its ground. “Article 27 of the agreement also provides for special and differential treatment. When the agreement came into force, developing countries above the threshold were provided eight years to bring down export subsidies.We had clearly assumed that the same period of eight years is available to countries as and when they cross the threshold,” commerce secretary Rita Teaotia had said earlier. “India has submitted a paper to the negotiating group on rules to this effect every year since 2011,” she had added. However, trade experts have said India’s position is weak, with no historical precedent for a country winning a reprieve from the WTO on this matter. “Also, India’s current argument is based on an earlier argument that itself hasn’t been accepted from 2011 till now by a single nation,” noted a senior Geneva-based expert.

Accidental luck

However, one ironical help in buying Delhi time on this might be coming from the US itself. The Trump government continues to block the appointment of appellate body members who are effectively chosen as judges by the DSB, the principal body tasked with arbitration between nations. “The US has single-handedly and consistently blocked the appointment of judges to the seven-member appellate body. Three members have retired and a fourth is set to retire soon,” senior trade expert and Jawaharlal Nehru University professor Biswajit Dhar said. The lack of these judges slows the process and reduces the scope for an immediate trade remedy for developing or smaller economies which badly need it, he added.  After the fourth member retires later this year, the strength will dip to two, rendering the body useless — each case requires at least three sitting members. Even if that doesn’t happen, the number of cases currently open means the work pressure on the appellate body is huge, as of now, and will only get worse, a senior official said. “This might actually help India but we aren’t progressing on the issue by counting on it,” he added.

Source: Business Standard

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Union Ministry of Textiles Approves 51 projects handloom projects to support weavers

New Delhi : Under National Handloom Development Program (NHDP), Union Ministry of Textiles has approved 51 handloom projects out of 56 from Chattisgarh. The projects approved have been sanctioned with a projected cost of Rs 16.68 crore. According to government official reports, during 2016-17, total of 940 weavers had been benefited under the Village Industries Department’s Integrated Handloom Development Program in the state. With a view to support and develop handloom weavers, this scheme was initiated by the government under which economically weak weavers of rural areas are divide into groups of 20 and are provided weaving training of 4 months to make them more dependable and employable. In order to meet the market demands for making designs, weavers are provided 2 months of skill improvement training. Further to lend support to those who don’t have their own looms, government provided them financial aid of Rs 25,000 for loom and Rs 3000 for other necessary equipments. Also, weavers cooperative societies are provided financial aid of Rs 20 lakh each for infrastructure development. Under Prime Minister Employment Generation Program (PMEGP) sponsored by Central Khadi and Village Industries, a total of 8500 persons were provided employment in Chhattisgarh during the last eight years. During the financial year 2015-16 the PMEGP had provided funds of Rs 17.56 crore to 830 cottage industry units for starting their works and further these units have provided employment to 948 persons. According to the information provided by officials, under this scheme, for setting up of cottage industry, projects costing upto Rs 25 lakh is sanctioned. And also for beneficiaries of general category margin money of Rs 25 per cent is provided by the Board, while for beneficiaries belonging to the female category, ST, SC and OBC class, 35 per cent margin money is provided as grant. The loan availed from the bank has to be returned over a period of seven years, officials said. The project in Chhattisgarh is being run by Chhattisgarh Khadi and Gramodhyog Board and mainly Poha Mill, mini rice mill, crusher plant, lack production, bamboo and cane production center, pottery business, pulses mill, flour mill and many more production unit and others are financed under the program. The Chhattisgarh Khadi and Village Industries Board aim is to foster capable youth through its various training programs from rural areas with complete knowledge of availability of raw material, marketing and financial management to run their units and to provide them easy access to bank loans. Further, Chhattisgarh government has also established an Apparel Training & Designing Centre each in Bilaspur, Raipur, Bhilai and Rajnandgaon, officials stated.

Source: Knn India

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Germany's Tom Tailor plans 55 stores in India in 3 yrs

With an investment of Rs 80 crore, German fashion brand Tom Tailor plans to open 50-55 exclusive stores and 300 shop-in-shop (SIS) stores across India in the next three years. It targets a revenue of about Rs 500 crore in five years. With four stores in Bangalore, Pune and in and around Delhi, it will open another four by the end of April in major metros. Inceptra Lifestyle Pvt Ltd owns the exclusive rights of the brand in India. The company's core markets are Germany, Austria, Switzerland, the Benelux countries and France. The brand wants to open stores in major malls and high end locations to compete with rival fashion brands and also tap the e-commerce route to increase sales, Inceptra Lifestyle Pvt Ltd founder Devender Gupta told a news agency. Tom Tailor is present in 35 countries with over 1,400 company stores and more than 11,600 other points of sale, generating a revenue of €968.5 million. (DS)

Source: Fibre2Fashion

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Power loom weavers plan protests

Over 10,000 power loom weavers, who do job works, plan to stage protests if the District Collectors of Coimbatore and Tirupur do not issue instructions to master weavers on payment of wages according to 2014 agreement. P. Kumarasamy, secretary of the Somanur job working power loom unit owners association, told The Hindu a joint meeting of the job workers’ associations in Coimbatore and Tirupur was held on Sunday. The Joint Commissioner of Labour had earlier assured them that the district administration would hold talks with the job working weavers before April 14. If it did not happen, it was decided on Sunday, the job workers would organise meetings and decide on the next course of action, he said. Mr. Kumarasamy said that since 1990, the master weavers in the two districts and the job workers regularly entered into agreements for uniform payment of wages. A similar agreement was reached in 2014. However, the agreement was not adhered to and many of the job working units were getting the wages that they received over seven years ago, he said. “There is a demand for job working looms and the weavers have work. But, they do not get the right wages,” Mr. Kumarasamy said. The job workers are also considering legal course of action if the actual wages paid are not revised upwards. In 2014, the new wages were agreed to and in 2015 the master weavers gave an assurance that they would not reduce the wages. But, they had not maintained the assurance. “We have met the Collectors, MLAs, and the minister. Yet, no one is addressing our grievance,” he lamented. The District Collectors of Coimbatore and Tirupur should immediately issue orders warning action on master weavers who did not pay the 2014 wages, he said.

Source:  The Hindu

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TAI’s Textile 4.0 conference gets an overwhelming response

The Textile Conference on “Textile 4.0 – Global and Indian  Perspective” organised by the Textile Association of India – Mumbai  Unit met with overwhelming response.“With the implementation  of Textile 4.0 and automation  we should maintain a balance  between man and machine and  be careful that machines don’t  overtake human beings.” She observed  we need human beings  and a little bit of unpredictability  in our lives to keep it interesting  stated Dr. Kavita Gupta  Textile  Commissioner  while inaugurating the conference.  While delivering the keynote  address  Mr. R. D. Udeshi  President-Polyester Chain  Reliance Industries Limited  highlighted Indian textile  industry has to focus on holistic  growth across the value chain  and needs to focus on building  quality and scale.  This will be possible only by adopting digitalisation and cyber physical systems  which will  accelerate growth and build excellence both in manufacturing and consumer experience  ” he added.  Mr. Udeshi emphasised on  planning today for a new and  better tomorrow. In terms of  changing dynamics because of  automation and Industry 4.0  sourcing needs are also changing.  Buyers do not just want to  purchase a product  rather they  are looking for end to end  solutions  he said.  Mr. G. V. Aras  Conference  Chairman while giving the highlights said that the world is on the  threshold of a new industrial revolution characterized by  Automation  Robotics  Artificial Intelligence and Internet of Things  etc. Industry 4.0 is the future of manufacturing which is based on  cyber-physical systems  Internet of things  digitalization which would create a “Smart Factory”.  These new technologies  will enter our manufacturing and  supply chain sooner than  expected and will have disruptive  effects on the present processes  followed by the industry  Mr.  Aras noted.  Mr. Shailesh R. Sheth  Director & Strategy Adviser  Jost’s Engineering Co. Ltd.  in  his theme presentation said that  “Factory of the Future is here and can no longer be ignored. For  Textile industry’s global competitiveness  we have to grapple with  the complexities and chalk out a roadmap for us to implement.”  In this VUCA (Volatility  Uncertainty  Complexity and Ambiguity) world  companies  want to ensure their future  investments and time of returns  on investments. The objective of  Textile 4.0 is to optimise inputs  and maximise output  Mr. Sheth  pointed out.  Mr. Prashant Agarwal of  Wazir Advisors  knowledge  Partner of the Conference  elaborated the Textile 4.0  introduces a new concept called  “smart factories” in which technology monitors physicals systems  & processes and makes decentralized decisions. Adoption of  Industry 4.0 tools and technologies in textiles would result in  increased efficiency  reduced lead time  improved production quality.  Indian textile companies are functioning at various stages of  automation depending on size of company.  The organized companies need to prepare the way forward  for adopting textile 4.0 and the semi organized and un organized  sector needs to develop roadmap towards bridging the technology  gap and gear up to align with the industry going forward. He said all teammates including top management professions like CEOs  etc  need to be educated  trained and aligned with this technological  advancement  Mr. Agarwal added.  The Textile Association (India)  Mumbai Unit has set a  precedent of felicitating the textile professionals for their  outstanding contribution in the field of textile industry. In this  Conference  the TAI  Mumbai Unit felicitated Shri Sanjiv S. Lathia  Technical Director  Lathia Rubber Mfg. Co. Pvt. Ltd. with “The  Lifetime Achievement Awards” and Shri S. K. Khandelia  President  & CEO  Sutlej Textiles and Industries Ltd. with “The Industrial  Excellence Award”.  Knowledge and Informative technical sessions  The two-day conference saw several informative sessions.  The theme of the first session was “Opportunities in Global  Scenario”.  In this session first paper was presented by Mr. Ashish Bhat  Executive Vice President and Head - Digital Factory  Siemens Limited on “Textile 4.0 – Opportunities in Global  Scenario”. He pointed out  “Digitalisation is changing everything  since 2000 over half of the top 500 global companies have  disappeared  since they couldn’t change with time. The world is  changing at a rapid speed  it took 16 years for mobile to have its  first 100 million users and only three years for WhatsApp to cross  100 million users. Industry 4.0 is not about the technology  it is  about new business models. Digitalisation is already a part of our  day to day life through mobile  social media and others  it is time  we make digitalisation a part of our business. In my opinion  ‘Disruption’ is slightly a negative word  I would rather like to use  Adoption instead of disruption. The whole idea of Industry 4.0 is  to ability to produce single customised product as mass  customisation at the same cost as mass production.”  Mr. Ram Sareen  Founder  TukaTech  USA presented the  paper on “Textile 4.0: Process by Technology Providers’  Perspective”. He observed Disruptive Process is nothing but taking  status quo process and simplifying. He believe change is constant  growth is optional.”  Mr. Stephan Kehry  Sales Manager India  Mahlo GmbH Co.  KG  Germany made the presentation on “Textile 4.0 - Chances and  Risks of a Visionary Revolution”. He quoted his owner Dr Mahlo  and said  “We can’t manage  what we can’t measure” indicating  that it is important in today’s business to have information and  data to make informed decisions. He also mentioned that in Industry  4.0 and IoT “Human element gains on overreaching significance  in development of Industry 4.0.”  Mr. Prabhat Pande  Manager – Professional and Business  Services (India & Sri Lanka)  EFI Optitex presented the paper on  “‘Retail Apocalypse’ and Technological Disruptions”.  The Second Session began with Panel Discussion on  “Opportunities & Challenges in Implementation of Textile 4.0 :  Indian/Asian Stakeholders Perspective” which was moderated by  Mr. Prashant Agarwal  Co. Founder & Jt. Managing Director  WAZIR Advisors Pvt. Ltd. The Panel comprised Mr. Rajendar K.  Rewari  MD  Morarjee Textiles Ltd.  Mr. Sanjiv S. Lathia  Technical  Director  Lathia Rubber Mfg. Co. Pvt. Ltd.  Mr. Arvind Mathur  CEO  Raymond Uco Denim Pvt. Ltd.  Mr. Updeep Singh  Deputy  CEO  Sutlej Textiles and Industries Ltd. All the Panel Members emphasized that textile industry in India has no choice but to adopt  this new revolution if they want to sustain in global market. This  revolution will attract technically qualified young generation to  the textile industry and present workers will need to upgrade  themselves to new technologies. It was a very interesting and  memorable session.  The Third Session was on “Textile 4.0- Approach to Textile Manufacturing from Fabrics to Finishing” which were presented  by eminent speakers from India and abroad.  Mr. Gianangelo Licini  Sales Area Manager and Mr.  Francesco Gozio Marketing Department  Marzoli Machines Textile  srl made the presentation on “Textile 4.0 - Industrial Cyber -  Physical Systems”. In their presentation they explained how Marzoli focuses its development on innovation and digital integration of  Spinning Mill production processes:  Dr. Indu R. Keoti  Dy. General Manager  Sales & Marketing  EcoAxis spoke on “Industrial IoT for Textiles”. She highlighted how a textile enterprise can become smarter by using industrial  IoT solutions. She also discussed challenges in implementing and The Textile Association (India)  Mumbai Unit has set a  precedent of felicitating the textile professionals for their  outstanding contribution in the field of textile industry. In this  Conference  the TAI  Mumbai Unit felicitated Shri Sanjiv S. Lathia  Technical Director  Lathia Rubber Mfg. Co. Pvt. Ltd. with “The  Lifetime Achievement Awards” and Shri S. K. Khandelia  President  & CEO  Sutlej Textiles and Industries Ltd. with “The Industrial  Excellence Award”.  Knowledge and Informative technical sessions  the two-day conference saw several informative sessions.  The theme of the first session was “Opportunities in Global Scenario”.  In this session first paper was presented by Mr. Ashish Bhat Executive Vice President and Head - Digital Factory Siemens Limited on “Textile 4.0 – Opportunities in Global  Scenario”. He pointed out “Digitalisation is changing everything  since 2000 over half of the top 500 global companies have  disappeared  since they couldn’t change with time. The world is  changing at a rapid speed  it took 16 years for mobile to have its  first 100 million users and only three years for WhatsApp to cross  100 million users. Industry 4.0 is not about the technology it is  about new business models. Digitalisation is already a part of our  day to day life through mobile  social media and others  it is time  we make digitalisation a part of our business. In my opinion ‘Disruption’ is slightly a negative word I would rather like to use  Adoption instead of disruption. The whole idea of Industry 4.0 is  to ability to produce single customised product as mass  customisation at the same cost as mass production.”  Mr. Ram Sareen  Founder  TukaTech  USA presented the  paper on “Textile 4.0: Process by Technology Providers’  Perspective”. He observed Disruptive Process is nothing but taking  status quo process and simplifying. He believe change is constant  growth is optional.”  Mr. Stephan Kehry  Sales Manager India  Mahlo GmbH Co.  KG  Germany made the presentation on “Textile 4.0 - Chances and  Risks of a Visionary Revolution”. He quoted his owner Dr Mahlo  and said  “We can’t manage  what we can’t measure” indicating  that it is important in today’s business to have information and  data to make informed decisions. He also mentioned that in Industry  4.0 and IoT “Human element gains on overreaching significance  in development of Industry 4.0.”  Mr. Prabhat Pande  Manager – Professional and Business  Services (India & Sri Lanka)  EFI Optitex presented the paper on  “‘Retail Apocalypse’ and Technological Disruptions”.  The Second Session began with Panel Discussion on  “Opportunities & Challenges in Implementation of Textile 4.0 :  Indian/Asian Stakeholders Perspective” which was moderated by  Mr. Prashant Agarwal  Co. Founder & Jt. Managing Director  WAZIR Advisors Pvt. Ltd. The Panel comprised Mr. Rajendar K.  Rewari  MD  Morarjee Textiles Ltd.  Mr. Sanjiv S. Lathia  Technical  Director  Lathia Rubber Mfg. Co. Pvt. Ltd.  Mr. Arvind Mathur  CEO  Raymond Uco Denim Pvt. Ltd.  Mr. Updeep Singh  Deputy  CEO  Sutlej Textiles and Industries Ltd. All the Panel Members  emphasized that textile industry in India has no choice but to adopt  this new revolution if they want to sustain in global market. This  revolution will attract technically qualified young generation to  the textile industry and present workers will need to upgrade  themselves to new technologies. It was a very interesting and  memorable session.  The Third Session was on “Textile 4.0- Approach to Textile  Manufacturing from Fabrics to Finishing” which were presented  by eminent speakers from India and abroad.  Mr. Gianangelo Licini  Sales Area Manager and Mr.  Francesco Gozio  Marketing Department  Marzoli Machines Textile  srl made the presentation on “Textile 4.0 - Industrial Cyber -  Physical Systems”. In their presentation they explained how Marzoli  focuses its development on innovation and digital integration of  Spinning Mill production processes:  Dr. Indu R. Keoti  Dy. General Manager  Sales & Marketing  EcoAxis spoke on “Industrial IoT for Textiles”. She highlighted  how a textile enterprise can become smarter by using industrial  IoT solutions. She also discussed challenges in implementing and  Mr. Hans Gerhard Wroblowski  (Area Sales Director SEA &  Head of Denim Technology)  A. Monforts Textilmaschinen GmbH  & Co. KG  Germany presented the paper on “Textile 4.0 - Internet  of Things “Overview / Outlook”.  Mr. V. Bino George  Head of Business Consulting  Infor South  Asia presented the paper on “Innovations & Competitiveness in  Textile Industry”. He said that the Fashion industry of today is  facing a unique and dynamic set of challenges. From the rise of  modern consumers to the increasing speed with which new products  need to be brought to market  the technology is essential to remain  competitive.  Mr. Ashish Sharma  Vice President-Sales & Mktg.  Truetzschler India Pvt. Ltd. showed “Trutzschler’s approach to  Industry 4.0”. He said the term “Industry 4.0” originates from a  German government’s project as high-tech strategy to promote  the computerization of manufacturing process. Trützschler Line  Commander connects complete Blow room line and cards together  which itself is basis of IoT concept long before Industry 4.0  conceptualized.  The Fourth Session was on “Textile 4.0 – Demonstrative  Approach to Manufacturing from Fibre to Fabrics”.  Mr. Gunish Jain  Managing Director  Royal Datamatics Pvt.  Ltd.  presented the paper on “The Role of Machine Learning in the  Textile Value Chain”. He explained what activities and processes  will be part of the first wave of AI and Automation.  Mr. Akshar Chandra  Strategy & Business Excellence  MD  Office  Grasim Industries  Aditya Birla Group expressed his views  on “Future of Textile is Upon Us – Digitalization enabled Connected  Value Networks”.  Mr. Ramakrishnan Pongirivasan  Country Manager (India)  IAS – India (Canias ERP) made the presentation on “Textile 4.0 –  Combination of Process and Technology (In term of Business  Process Management) know how”.  The theme of the Fifth Session was “Government Initiatives  and Industry Interface”.  Mr. R. Girish  IAS  Commissioner for Textile Development  & Director of Handlooms & Textiles  Govt. of Karnataka  presented  the paper on “Invest Karnataka”.  Mr. Mihir Parekh – Director Mega Textile Park  Department  of Handloom & Textiles  Government of Telangana discussed about  “Textile and Apparel Sector in Telangana – Opportunities and  Initiatives”.  Mr. Damodar Kulkarni  Deputy Secretary  Dept. of Textiles  Govt. of Maharashtra presented the newly introduced “Textile Policy  of Government of Maharasthra and its advantages to various  sectors”.  Dr. J. V. Rao  CEO  Textile Sector Skill Council (TSC)  presented a paper on “Future of Textile Jobs – A Perspective”. He  said that the impact of Industry 4.0 on the nature of jobs would  result in four different possibilities –some new jobs would be created  or some of the existing jobs wound demand additional skill sets  while some jobs would continue to exist without any change in  skill sets and some would disappear. The jobs that would disappear  are those which require Routine Manual (RM) or Routine Cognitive  (RC) skills. All such jobs would be automated. The jobs which  require Non-Routine Manual (NRM) and Non-Routine Cognitive  (NRC) skills will continue to survive with or without additional  new skill sets.  The Sixth Session was on “Risk Management”.  Mr. Badruddin Khan  Sr. Manager – Product Management  Team  Multi Commodity Exchange of India Ltd. (MCX) made the  presentation on “Awareness on Cotton Price Risk Management”.  Mr. Sajal Gupta  Head – Forex & Rates  Edelweiss Securities  Limited and Mr. Vivek Acharya  Manger – Business Development  (Currency & Debt)  National Stock Exchange of India Limited  (NSE) made the joint presentation on “Forex Risk Management:  Currency Insurance - Protection against Volatility”.  The Seventh Session was a Workshop on the theme  “Demonstrative Approach in Processes in Textile 4.0” which was  presented by Marzoli Machines Textile srl.  Mr. Sanjay Chawla  Editor-in-Chief & Publisher & CEO  DFU Publications presented the Audio Visual Show on – Textile  4.0 which was appreciated by all.  All the Papers received very high response as well as  interactions from the participants.

Source: Tecoya Trend

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Textile major Arvind plans to produce 40% of garments in-house

Mumbai: Textile major Arvind Ltd is planning to produce 40% of garments in-house from 10% at present as it looks to notch up the turnover of its textile business to Rs10,000 crore in the next five years. “Presently, about 10% of our fabrics are made into garments internally. We are targeting to grow this to 40% of our production,” Aamir Akhtar, chief executive, Denims, Arvind told PTI. For this, the company is adding capacity of 1 million metres annually, and expects 1 million garments to be produced internally per month over the next few years, he added. Akhtar highlighted that Arvind’s denims business has about 40% marketshare in the organised denim market at present, registering a 8-10% annual growth. “The company is looking to increase it to 15%,” he said. The apparel major had earlier said it expects to increase the turnover from its textiles business to Rs10,000 crore in four to five years, from Rs6,000 crore at present. “The company is also looking to expand its capacities in existing units and set up new ones in the next few years,” said Akhtar. Arvind is presently in the process of demerging its branded apparel and engineering businesses, and intends to list its branded apparels business, Arvind Fashions, as a separate entity. Arvind shares closed 2.81% higher to Rs395.50 on BSE, while the Sensex rose 0.87% to close at 33,255.36 points.

Source: Livemint

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Powerloom unit inaugurated in Imphal in north-east India

A powerloom unit with 11 looms was recently inaugurated in Imphal’s industrial estate Takyelpat by Thongam Biswajit, textile, commerce and industries minister of India’s north-eastern state Manipur. Despite concerns over the survival of traditional handloom, the introduction of the powerloom unit will increase production and raise weaver’s income, he said. He suggested that traditional handloom weavers can be protected by exclusively reserving production of certain items by them, according to a report in an English-language daily in north-east India. The state government will release a list of such reserved items next month, he said.  Biswajit also announced a power incentive for powerloom weavers.

Source: Fibre2Fashion

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Month-long Handloom, Handicraft expo begins today

Vijayawada: The month-long Handloom, Handicraft and Fun Fair exhibition will be inaugurated on April 3 by IT and Panchayat Raj Minister Nara Lokesh. Irrigation Minister Devineni Uma Maheswara Rao, MP Kesineni Srinivas, Police Commissioner D Goutam Sawang, Police Housing Chairman Nagul Meera, MLA Bonda Uma Maheswara Rao and others would participate in the inaugural programme, said the exhibition organiser M Raja Reddy here on Monday. Addressing the media, Raja Reddy said first of its kind, Robotic Animal Show would be the centre of attraction of the exhibition. He said that about 24 animals were being imported from various countries like China and Italy which would enthrall the visitors. Other attractions include Snow World, Giant Wheel, Columbus, Salambo, Break dance and Dragon Train besides fashion wear, textiles stalls and others, he added.

Source: The Hans India

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Textile buying houses propose compliance centre in Pakistan

The Pakistani Government has been advised by foreign textile buying houses to set up a central compliance centre in the country to improve manufacturers’ compliance with social standards, a critical factor in apparel sourcing decisions. The government may consider setting up sourcing parks to ensure a single-window facility, they suggested. The country’s first buying and sourcing houses symposium was recently organised by the commerce division of the commerce ministry and the Trade Development Authority. It was attended by representatives from a large number of foreign buying houses, including Ikea, H&M, Marks and Spencer and Inditex, according to Pakistani media reports. Many buying houses that relocated out of Pakistan due to the security situation in the past may come back if offered incentives like subsidised office space, the representatives felt. Two US companies, Character World and Disney, had shifted buying orders to Bangladesh and other regional countries in the recent past. The buyers said a national compliance centre may be set up which coordinates the improvement of compliances on cooperative model to improve social compliances by the manufacturers, which are increasingly becoming an important critical determinant of sourcing decisions. The commerce ministry has been in the process of formulating a strategic trade policy framework for the 2018-23 period and the symposium aimed at gathering inputs from the buying and sourcing houses in that regard, commerce secretary Younus Dagha said. After witnessing slow growth during the past couple of years, outbound shipments recovered by 12 per cent to $15 billion in the first eight months of the current fiscal as exporters availed of government incetives to boost exports. (DS)

Source: Fibre2Fashion

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Bangladesh : Direct exports draw huge investments in garment accessories

Garment accessories such as buttons, zippers, tags, labels, rivets etc has a large export market and have been drawing huge amounts of direct investment in the sector -

Mehedi Hasan

According to BGAPMEA’s latest data, garment accessories and packaging products earned $6.7 billion in the last fiscal year, of which over $1 billion came from direct exports Bangladeshi garments accessories and packaging manufacturers have made a massive new investment to seize a larger chunk of the global export market share. According to data from the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), garments accessories and packaging manufacturers have made an investment of Tk722.5 crore, with more proposals in the pipeline. Sources in the sector said this new investment focuses on producing higher quality garment accessories with an aim to increase exports and establish the sector as a direct export earner instead of just deemed. Since there is more capacity than is currently needed, accessories can be another big export earner, they opined. “Bangladesh is already well established as a sourcing hub for apparel products. Garment accessories and packaging products are key components for competition. The demand of accessories is increasing very fast at home and abroad,” Al- Shahriar Ahmed, Managing Director of Adzi Trims Ltd told Dhaka Tribune. Bangladesh is almost self-sufficient in meeting local demands in the garment accessory manufacturing sector. This direct exporting will open up a new avenue for local manufacturers, said Shahriar. “In order to reach market demands for exports, I have made investment of $3.8 million to produce eco-friendly and high quality value added products, which is what global fashion brands prefer,” continued Shahriar. “I have another investment of $6 million which is aimed to increase my production capacity, since I plan to increase my yearly turnover to $18 million in 2018 from the existing $12 million,” he added. BGAPMEA president Abdul Kader Khan told the Dhaka Tribune: “If the government provides logistic support including gas and electricity connections, the investment will increase further. “Manufacturers are using coal instead of gas to run boilers due to a gas shortage. This is costly due to a higher import duty on coal. If the government allows duty free coal import, manufacturers will be more price-competitive,” he also said. Currently, manufacturers have to pay about a 45% tax on import of coal.

Direct export opportunity

According to BGAPMEA’s latest data, garment accessories and packaging products earned $6.7 billion in the last fiscal year, of which over $1 billion came from direct exports. Usually, accessory products are exported with finished products and termed deemed exports. Now, they are being separately exported to several countries as direct exports. “For the last four years, we have been exporting garment accessories to Indonesia and Malaysia. Bangladesh has enormous opportunities as we have the ability to execute bulk export orders in terms of quantity and quality,” Zahir Uddin Haidar, chairman of Cosmos Group told Dhaka Tribune. Last year, the company earned $200,000 and has set a target to export products worth $350,000 in 2018. “The value addition of garment accessories is over 30%, which is increasing day by day. If the government provides proper policy support, the sector can earn as much as the apparel sector itself in future,” said Zahir. According to industry insiders, India, Vietnam, Indonesia, Malaysia, Pakistan, Sri Lanka, Finland, Myanmar, and other apparel manufacturing countries are all potential markets for Bangladesh. “There is no doubt that Bangladesh will turn into a global leader in accessory export very soon as it has already established an international standard in manufacturing the products,” Exporters Association of Bangladesh (EAB) President Abdus Salam Murshedy told Dhaka Tribune. “It is my earnest urge to the government to let the sector bloom by providing all out cooperation, which is what they need right now.” According to people of the sector, accessories contribute to 15% to 18% of a finished garment product.

Challenges for the industry

Since there is a huge opportunity to grow in the local market as well as in the export market, investors want to pour funds. However, a lack of policy support including gas and electricity connections and tax burdens hinders the inflow of investments, with port congestion being another issue. “As an exporter of garment accessories and packaging products, we are receiving good response from global buyers. But for executing the orders, uninterrupted gas connections for existing as well as new investors is an important requirement,” Md Tanvir Soyed Islam, Manager (Sales) of Montrims Limited told Dhaka Tribune. “Import dependency for raw materials is another challenge. Due to this import dependency, production becomes more time-consuming and expensive. If the government paves the way for local industries to produce raw materials required for accessories, it will help to save foreign currency,” continued Tanvir, “Due to a high price of raw materials, we are unable to beat foreign companies,” he adds. “In tapping opportunities and grabbing export market shares so Bangladesh can establish a strong foothold in the global market, the sector needs tax rebates and cash incentives towards the direct export of accessories and packaging products,” he added. “As it takes time to import raw materials, buyers choose finished goods instead. To ensure timely deliveries, the government should increase port efficiency,” KM Shahidullah, Senior Manager (Credit) of Dekko accessories told Dhaka Tribune. “Manufacturers of apparel products choose China for sourcing accessory products as they offer lower prices than us. “This is because of a higher price of raw materials caused by import duty combined with the delay of importing,” said Shahidullah.

Source: Dhaka Tribune

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Bangladesh : The journey begins

There are opportunities ahead, but challenges too Mahmud Hossain Opu  What’s next for the textile and apparel industry? This is the first part of a two-part op-ed. I am happy to see the opportunities ahead for my country and that all the hard work has paid off to graduate out of the LDCs. I am thankful to the government of Bangladesh for having directed the nation towards its newly acquired status. On that note, there are also challenges involved for developing countries that have an impact on the global community. The hurdles for poverty reduction and climate issues being some reoccurring factors, next to financial stability and the lack of a holistic approach to sustainable energy development, clean water, and access to food, which amongst other challenges create security risks. On a more positive note, due to the sheer population, middle-income countries represent about one third of global GDP and are driving economic factors contributing to the global GDP growth — so we need to ask ourselves: How do we accelerate social, environmental, and business opportunities in Bangladesh, with the challenges which lie ahead?

 Our golden goose

Bangladesh is among the top 12 developing countries with a population of over 20 million, with oversix percent growth over the last couple of years. By any standards, our economy has done well. Today, Bangladesh is the world’s second-largest apparel exporter of Western fast fashion brands, rivalled only by China. In 2017, the RMG industry contributed $28.14 billion to exports, which was 80.7% of the total export earnings. The key driver behind the success of graduating out of LDC status is the textile and apparel sector. The exports of textiles and garments are the principal source of foreign exchange earnings, and our textile and clothing industry alone provides the single source of growth. Productivity, which measures efficiency of resources used to produce goods and services, is by far the long-term driver of competitiveness. The new investments in education and skills, machinery, and equipment, physical and technological infrastructure, and innovation (including commercialization) will all contribute to improvement in productivity, competitiveness, and prosperity.  A sound macroeconomic, political, legal, and social context creates the potential for competitiveness, but is not by far sufficient. Movements in exchange rates also will impact the cost structure and relative output price in the short to medium-term. New strategies for the textile and apparel sector and other industries need to be drafted in order to keep the momentum. Bangladesh does not hold any natural resources that we can export. We do not have world famous brands that we can globally promote. The textile and apparel sector, and thereby the entire nation of Bangladesh, is heavily dependent on the competitiveness of affordable and less skilled labour to keep driving the exports of Bangladesh. Today Bangladesh is the world’s second-largest apparel exporter of Western fast fashion brands, rivalled only by China. In 2017, the RMG industry contributed $28.14 billion to exports, which was 80.7% of the total export earnings for Bangladesh.

Looking ahead

So, what challenges does the textile and apparel industry in Bangladesh envision over the next years that will have a significant impact on the growth of the industry, and more importantly, the growth of the nation? Increasing cost of business and production is one of the most potent threats to the continued growth scenarios. In recent years, the cost of production has increased by 18%. This alone is a factor to be reckoned with. If a pair of jeans produced in Bangladesh for a global high street brand was to increase its retail value by 18%, the high street brand would rapidly find new production alternatives in Vietnam, China, Pakistan, and India. The increase of the minimum wage — which is currently being discussed — will see another rise in the labour cost. This specifically has a negative impact on the textile and apparel sector, where higher salaries are paid compared to a few years back. As a result, the profitability on the product prices has decreased by 40% over the last few years. When the cost of production is increased by 18%, companies are getting 40% less for the same products they were producing before, which results in a very low profit margin and consequently, textile and apparel companies are losing their profitability on a daily basis. Mostafiz Uddin is the Managing Director of Denim Expert Limited, and Founder and CEO of Bangladesh Apparel Exchange (BAE).

Source: Dhaka Tribune

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Japan : Itochu positions Vietnam as textile production hub

TOKYO - Itochu has increased its ownership of a Vietnam state-owned textile company with an eye toward turning the country into a textile export hub for Europe amid rising labor costs in China. The Japanese trading house spent about 5 billion yen ($46.9 million) to lift its stake in Vietnam National Textile and Garment Group, or Vinatex, to nearly 15%, becoming the second-largest stakeholder after the Vietnamese government. The company already had a roughly 5% interest, acquired in 2015. It is rare for a foreign company to own more than 10% of a state enterprise in Vietnam. Vinatex operates about 200 sewing factories in Vietnam. It invested nearly $200 million over the past three years to add facilities for thread and cloth production. The company now handles everything from material production to sewing. Since its 2015 investment, Itochu has collaborated with Vinatex on suits, shirts and functional undergarments for cold weather, for instance. It plans to boost production of high-performance apparel in Vietnam and export the output to Japan, Europe and the U.S. Itochu may have Vinatex produce such items as sportswear through collaboration with materials makers. Itochu exports a little over 60 billion yen worth of apparel from Vietnam a year, with half of that produced by Vinatex. The company aims to increase outsourced production and raise exports to 100 billion yen by 2021. Vietnam has a free trade agreement with the European Union, and is also participating in the Trans-Pacific Partnership, making it a suitable alternative as a manufacturing hub to China, where labor costs are climbing.

Source:  Nikkei Asian Review

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Clothing and textile manufacturing's environmental impact and how to shop more ethically

What goes into manufacturing the various textiles we wear and how do the environmental impacts of each compare? How did the fibres that make up your clothes come to be? (Credit: ABC licensed) The shirt you're wearing right now: what's it made from? In its rawest form, was it once growing in a field, on a sheep's back or sloshing at the bottom of an oil well? We wear clothes literally every day, but few of us spend much time reflecting on what goes into manufacturing various textiles and their environmental impacts. This is interesting considering how much we think about the food we eat or the skin care products we use. Most of us don't realise how environmentally intensive it is to make a single article of clothing, says fashion sustainability expert Clara Vuletich, whose PhD research focuses on sustainable textiles. "Textile supply chains are some of the most complex of any manufacturing sector," she said. "When you think about one garment, how it's got to be on your back, it's gone through so many different suppliers and production processes." First comes the fibre, which, whether it comes from a plant, animal or crude oil, is almost always an energy and pollutant-intensive process. The fibre is processed until it can be spun into a yarn, which, in turn, is woven or knitted into a fabric. Somewhere in there bleaches and dyes are usually involved.

Finally, the fabric is made into a garment.

Each of these steps probably happens in different factories, possibly in different countries. "All of these stages have environmental impact," Dr Vuletich said. "And we know that the making of textiles, generally speaking, uses huge amounts of water because all of this yarn has to be constantly washed, it's going through all these chemical processes to turn it into this high quality, very delicate material, and then it becomes a different colour to what it is naturally. "So yes, all this is hugely impactful." Apparel and footwear industries currently account for 8 per cent of global greenhouse gas emissions, nearly as much as that of the whole European Union, according to a recent industry report, Measuring Fashion. By 2030, the climate impact of the apparel industry alone is forecast to nearly match today's total annual US greenhouse gas emissions, emitting 4.9 gigatonnes of carbon dioxide equivalent. RMIT textile technologist Mac Fergusson said textiles made in Australia were setting a good example for the rest of the world, and the global industry was making strides to be more environmentally friendly. "We've got a lot of recycling going on that a lot of people don't realise," he said, such as a Victorian operation recycling plastic bottles into polyester that would be opening soon. Because manufacturing processes are so complicated and varied, exactly how much of an environmental effect they impart is difficult to quantify. But here's an introduction to what goes into manufacturing some of the fabrics you may have hanging in your wardrobe.

Cotton

Cotton fabric is made from yarn spun from the fibres of the cotton seedpod, called a boll. Most of the world's cotton is grown in India and China, usually on farms that rely heavily on pesticides, fertilisers and intensive irrigation. Growing 1 kilogram of non-organic cotton lint (the raw cotton fibre) uses about 2,120 litres of water from irrigation, according to Textile Exchange, a not-for-profit group promoting sustainable practices within the industry. Cotton is generally harvested by machine, then undergoes ginning, a mechanical process that removes the fibres from their seeds. These fluffy fibres are then subject to a series of processes, such as carding and combing, to smooth and refine them until they are ready to be spun into yarn.  A Textile Exchange life cycle analysis published last year found organic cotton — which is usually grown using water-conserving practices and without pesticides and fertilisers — had reduced potential for global warming, acidification, soil erosion, water consumption and non-renewable energy compared with conventional cotton production. Australia holds a relatively small piece of the global cotton pie, producing about 2 million bales a year compared to China and India's 33 million and 27 million respectively, but it punches above its weight in the environmental stakes, contributing less than a third of a per cent to the country's agricultural greenhouse gas emissions, according to Cotton Australia. A 2014 industry report found Australian cotton had increased its water efficiency by 40 per cent over the previous decade and had reduced insecticide use by 89 per cent since the late 90s.

Synthetics

Synthetics such as polyester, acrylic, nylon and elastane are made using fossil fuels. Polyester is the most widely used fibre in clothing, accounting for nearly half the world's fibre production, or 63,000 million tonnes each year, according to Textile Exchange. To make polyester, chemicals from petroleum are liquefied under high pressure and forced through tiny holes. As the liquid is squeezed out the holes, it solidifies into fibres. These fibres are then drawn out to make them longer and thinner, and then spun into a yarn. Sometimes other processes, such as dyeing, crimping or dulling the natural lustre of the fibre, are involved in these early stages. While synthetics are usually made from non-renewable resources, some are made from recycled materials, such as polyester made from recycled bottles. Recycled polyester reduces the need for fossil fuels and diverts plastic bottles from landfill. As technology continues to advance, polyester textile manufacturer could eventually become a closed-loop system, according to Textile Exchange. But beyond the manufacturing phase, all synthetics, recycled or not, have a longer-term environmental impact while they are being used by you, the consumer. Every time you wash your polyester clothing, it sheds microscopic fibres that travel into waterways, adding to plastic pollution in our oceans.

Man-made cellulosics

Man-made cellulosic fabrics involve taking a renewable material, such as bamboo or eucalyptus, and breaking it down until it can be spun into a fibre in a similar process to synthetics, such as polyester. Viscose, rayon, Lyocell and bamboo are all types of cellulosic fabric. On one hand, they use renewable materials instead of non-renewable fossil fuels, and crops such as bamboo don't require the same volumes of water or pesticides, if any, as cotton. However, just because a material is renewable doesn't make it the best for the environment. Textile Exchange said greater transparency is needed to ensure logging for these fibres is not being done in ancient or endangered forests, endangered species habitats or otherwise illegal or controversial ways. Once the wood has been obtained, the process involved in breaking down the raw material involves toxic chemicals that can affect the surrounding environment and people who work in the factories.  According to Textile Exchange, these substances can remain in the fabric during dyeing and finishing. The high-tech process to spin the man-made cellulosic yarn is also energy-intensive. Because safety standards and environmental impacts of cellulosic fabrics vary so widely, Dr Vuletich advises consumers seek out manufacturers who are transparent about their processes.

Wool

Australia is the largest wool producer in the world, with about 75 million sheep producing about 4.47 kilograms of wool per head, but the fibre holds a relatively small share of global consumption: 1.2 per cent in 2015, according to the International Wool Textile Organisation. Like cotton (and other textile fibres), wool processing involves many water and energy-intensive phases, including multiple washes to clean the fibre. This process is called scouring, which is how lanolin is recovered. Australian wool processing plants use water-saving methods such as taking the water from the last rinse to become the first wash of the next batch, said Mr Fergusson. Further processes — called carding and combing — smooth and refine the fibres prior to spinning into fibre and then weaving or knitting into fabrics. These fabrics may undergo fulling and crabbing, which use heated water to shrink and set the cloth. Because it comes from animals, wool has environmental impacts at the farming level, including land degradation from overgrazing, soil compaction, erosion and loss of organic matter from the soil. Deforestation and farms impinging on conservation areas are also problems identified by accreditation body Responsible Wool Standard. This doesn't mean wool can't be part of your wardrobe: the Bureau of International Recycling estimated if each person in the UK bought one reclaimed woollen garment, it would save nearly 1,700 million litres of water and 480 tonnes of dyeing chemicals.

Linen

Linen is made from bast fibres — fibres made from the stalk of a plant, usually flax but sometimes hemp (Cannabis sativa). Creating linen involves a process called water retting to break down the stalk into bundles of fibres, which are then mechanically refined and spun into a yarn. It's a thirsty process, but not as water-intensive as cotton processing. Growing these plants is also less intensive terms of water and pesticides than cotton. Hemp is not a big hitter in the global fashion industry, but has been pointed to as a more environmentally friendly option in the past. Dr Vuletich said that claim mostly stacked up. But, she added, the fact the cannabis plant was also used as a drug meant it wasn't as widely embraced as a textile as cotton. Nor had it seen the same investment and innovation to create high-quality yarns. "It's always going to remain a niche fibre because of its raw material." Even the more widely used flax linen is still a long way behind other fibres in terms of popularity, partly because it has a "particular look", Dr Vuletich said. "We don't all want to wear linen because it crushes so easily, it's [about] useability."

Dyeing

No, not a textile, but together with other finishing techniques, dyeing is the most energy-hungry part of the garment manufacture process, according to the Measuring Fashion report, accounting for 36 per cent of the greenhouse gas emissions of the whole process. The dyes themselves are also affecting the environment. A recent documentary tracked how chemical waste from dyeing was making its way into waterways. But the spotlight on these practices is already leading to change. "There's a zero-discharge initiative that a lot of the brands are realising that they need to really put pressure on suppliers in China around hazardous chemical waste into water," Dr Vuletich told the ABC last year. Mr Fergusson, who specialises in dyeing, said when he lived near dyehouses in Indonesia, "the rivers used to change colour" — but other dyehouses nearby treated their wastewater and used it to irrigate rice paddies. Here in Australia, dyehouses must meet very stringent discharge standards so they usually have an on-site treatment plant, Mr Fergusson said. The Australian industry is also making strides in new technologies, he said, including a method called cold pad-batch dyeing, which cuts down on energy needs by using cold water.

Life cycles

So, are some fibres better or worse for the environment than others? Should we all completely eschew cotton, for example, because of the water and pesticides growing it uses? It's not quite as simple as that, Dr Vuletich pointed out: cotton could be knitted into a jersey t-shirt, which would be washed frequently and perhaps wear out quickly. Or it could be turned into a finely woven specialty fabric that's sewn into a kimono jacket to be washed sparingly and carefully maintained. "We talk about life cycles," she said. "You've got the impacts of the production phase, but then the material's made up and the garment is used by the customer, and that has environmental impacts as well." Having said that, knowing what goes into manufacturing a textile can help you know what you're buying. Choosing recycled polyester, local or organic cotton or water-saving fibres like hemp will likely have a lower environmental impact. They also send a message to producers there is a demand for more eco-friendly products. To make a real environmental difference, Measuring Fashion recommended recycling be combined with a shift to renewable energy, more efficient processes, smarter design and different consumption models — by you, the consumer. Mr Fergusson said local wool and cotton growers wanted to see more textile manufacturing happen here in Australia, but local energy costs were prohibitive. "I know that several cotton farmers have looked at the problem but our energy costs are too high. Textile manufacture is not a labour-intensive industry — it is capital intensive," he said.

Shop sparingly, treasure what you have

If buying clothes with the environment in mind is important to you, it can be tough to know where to shop. While some brands spruik their environmental credentials, many don't provide information about how their fabric is sourced. In fact, Dr Vuletich said, sometimes even the brand did not have much control over the origins of their textiles, especially smaller Australian brands that did not have the economic clout of a big global chain. "Obviously the big players, it's easier for them, the H&Ms, they've got huge scale," she said. "Some of these smaller players just can't get access to that better material. "You've got to be doggedly determined to make a go of it in this space." Consumers wanting to be informed can use apps like Good On You, which rates brands based on their environmental impact, as well as their labour and animal welfare practices. But such apps rely on brands being transparent about their processes in the first place. If you're really trying to limit your wardrobe's effect on the environment, Dr Vuletich said the best thing you could do was to limit buying new, and to treasure what you have. "Be conscious. Take care of it and cherish it. Each garment has had this journey," she said. "It is really complex but I find it really exciting. Our eyes have been opened to these amazing processes and the amazing materials we have. The new innovations that are opening up that are really exciting. "I think as consumers we're ready for it, we're hungry for it, especially the younger generation."

Source: Radio Australia

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