The Synthetic and Rayon Textiles Export Promotion Council (SRTEPC), representing the man-made fibre textile segment, has approached the government for a relief package to ensure business continuity post COVID-19 pandemic. “Man-made fibre textile segment is one of the worst-hit in this epidemic. There have been huge losses incurred and shortage of funds due to cancellation and deferred orders and that has put the industry under a ventilator,” said Ronak Rughani, chairman, SRTEPC
The SRTEPC has submitted a memorandum to the government seeking aid and relief.
It has asked the government to announce a special COVID-19 relief package for the textile industry, including for the entire value chain of the man-made fibre textile segment to tide over the prevailing crisis. The demands include a special export incentive of 3% on fibre and yarn, 4% on fabric and 5% on made-ups for at least six months or till the impact of COVID-19 subsides and global markets stabilise and a separate package for man-made fibre textiles segment as this segment has been reeling under a inverted duty structure under GST. Welcoming the various suggestions of The SRTEPC, Madhu Sudhan Bhageria, CMD, Filatex India Ltd., said, “The Immediate requirement is to allow the manufacturing facilities to function at least 50% capacity and gradually lift the restrictions and create an environment to export the produce without any hassles from different departments involved in the system.” “The government should ensue good support from the banking system by providing moratoriums and enhanced working capital facilities and ensure all duty refunds from Government of India with immediate effect,” he said. He said this would go a long way in the life of the man-made fibre players in the country. “Correcting inverted duty structure under GST on man-made fibres would be an another long-pending step the government can announce now to support the sector, Mr. Bhageria said. “These measures would put us on par with international players across the countries who have been competing with us,he added.
Source : The Hindu
Finance minister Nirmala Sitharaman will meet Prime Minister Narendra Modi on Thursday to finalise the stimulus and support measures to counter the severe economic impact of Covid-19. “If the package is finalised, it could be unveiled soon after,” a government official said on condition of anonymity. The upcoming package is likely to focus on the MSME sector, which has been the worst hit, and could include an over Rs 15,000 crore credit guarantee fund, another government official said. This is expected to be the first of a series of measures spanning other sectors of the economy as the situation on the ground unfolds after economic activity is opened up. On Wednesday, the government permitted many industrial and economic activities to resume operations in districts identified as green zones from April 20. Sitharaman had already announced a Rs 1.7 lakh crore relief package that includes direct cash transfers to the poor and free ration, among other measures. She had also announced relaxations in mandatory compliances for businesses and individuals. The finance ministry held several rounds of discussions with various ministries and departments on issues faced by sectors administered by them as also industry. Upcoming measures would be based on inputs provided by them and a task force set up by the prime minister. Service sectors such as hospitality & tourism, aviation and exports including textiles and gems & jewellery are in focus for some relief. Industry has sought a stimulus package of up to 3-5% of India’s GDP to revive the economy that is likely to see its worst slowdown, as per various forecasts. One percent of GDP translates into roughly Rs 2 lakh crore. The International Monetary Fund has slashed India’s growth estimate for FY21 to 1.9% from 5.8% estimated in January. According to some estimates, the lockdown could cost the economy Rs 6-10 lakh crore in lost output. Retail, discretionary consumption, travel and tourism, hospitality, construction and transport are among the worst affected. With the lockdown extended to 40 days in total, more sectors are feeling the pain. Only sectors dealing with essentials such as FMCG and healthcare have some support.
Source: Economic Times
The industry must exercise restraint in seeking relief measures from the government, as government finances remain constrained amid the current Covid-19 crisis, Union minister for road transport and highways and MSMEs Nitin Gadkari has said. The government is facing a financial crisis amid the Covid-19 outbreak, while banks are also struggling for survival, and the industry must therefore consider these facts before making demands to the government, he said in a discussion with members of the PHD chambers of commerce on Wednesday. He added that we must find an equilibrium in coming up with relief measures for all stakeholders. Aapki industry jaise sankat mein hai, waise sarkar bhi financial crisis mein hai ( Just as how the industry is facing problems, the government is facing financial crisis),” Gadkari said. “Banks ki sthiti bhi aaj survival ke liye bohot challenging hai, aap jaante hain (You are aware that even banks are facing challenges for survival),” he added. “”Keeping all this in mind, you have to see where the breaking point lies here, (and) how do we maintain this equilibrium, so we all can survive,”Gadkari said. The government will try and resolve as many issues of the industry as possible, he said. Reiterating his stance that the outbreak of Covid-19 should be seen as a blessing in disguise, the industry must look at reducing the cost of production to make its products competitive. “We should learn from China which has reduced its production cost to capture the global market,”he said. “We will have to fight an economic war after the war with Corona (virus) is over,”he said. “This is an opportunity for us. If countries withdraw from China, it’s to India’s biggest advantage,”Gadkari added.
Source: Economic Times
Action plan will have two phases: one for lockdown period when the economy activities resume, from April 20 to May 3, and the second after the lockdown period is over. The government is set to hold a meeting with chief executives of public sector banks and other lending institutions on Thursday to draw an action plan to offer financial support to economic activities that will restart on April 20. The action plan will have two phases: one for the lockdown period when the economy activities resume, from April 20 to May 3, and the second after the lockdown period is over. The meeting, which will be chaired by financial services secretary Debashish Panda over video conference, will be attended by the chief executives of all PSBs along with the management of National Bank for Agriculture and Rural Development, National Housing Bank and Small Industries Development Bank of India. The government is set to discuss "timely origination, sanction and disbursement of fund-based and non-fund based credit, clearing of payments and supply of cash for activities allowed to to operate from April 20. The government on Wednesday allowed resumption of certain economic activities in areas where there are no Covid-19 cases. These activities will include agriculture and horticulture, construction, industrial establishments, fisheries, plantation, MGNREGA works, among others. The government will ask banks to ensure adequate stock of cash in ATMs across the country and sufficient supply of cash to business correspondents. Another action plan will be drawn through which the government will discuss cash transfers under Pradhan Mantri Garib Kalyan Yojana, monthly wages and credit growth after May 3. This is the second such meeting being held by the finance ministry with bank executives. In a meeting with PSB chiefs on Monday, the finance ministry had asked them to extend all possible help to all sectors of the economy, according to the Press Trust of India.
Source: Business Standard
After opening up government offices, online businesses and agriculture procurement last week, UP CM Yogi Adityanath on Thursday permitted 11 industries to start manufacturing plants. Textile (except garmenting), steel, cement, foundries, chemical, refineries, tyre, paper, sugar mills and common effluent plants have been given permission to start functioning albeit with 50% staff. The headquarters of the firms will remain shut. A circular was issued by the chief secretary listing the type of industries and rules to be followed to prevent the Covid-19 pandemic. “The relaxation is for manufacturing units which have continuous process. The units within the hotspot areas will remain shut,” it says. These include social distancing, wearing masks, regular sanitisation of premises, thermal screening of staff and making soaps, sanitisers available to employees. “If any employee develops any Covid-19 symptoms, the company will inform the administration,” the order says. Vehicular movement for the industry has been allowed. A senior official said, “It is expected the industrial and manufacturing sectors will see a revival with these steps and will hire people. It aims for the betterment of farmers, daily wagers and to maintain efficient supply chain.”
Source : Daily Hunt
There is more scope for more "urgent" policy actions in India as the economic toll from the coronavirus pandemic is likely to be "large", a top IMF official said, noting that the fiscal stimulus package unveiled by the government to mitigate the impact of the COVID-19 is a step in the right direction. In an interview to , Vitor Gaspar, Director of Fiscal Affairs Department of the International Monetary Fund (IMF), said the balance of risks is tilted to the downside, given the uncertainty surrounding the pandemic that has halted economic activities across the world. "India has limited fiscal space, but also a need to support the health and economic wellbeing of its citizens. In the current exceptional circumstances, the need for policy action is urgent," Gasper said when asked about India's fiscal strength and the impact of the COVID-19 on its economy. "The economic toll from the pandemic is likely to be large. We estimate that growth in the fiscal year 2020/21 will be reduced to 1.9 per cent, reflecting both the domestic COVID-19 impact from the unprecedented national lockdown and weak external demand," he said. In the face of the pandemic, which is likely to have devastating human and economic consequences, there is an urgent need for government action, including prioritising spending on health care, providing income support to those most vulnerable, and supporting micro, small and medium-sized enterprises (MSMEs), he said. on COVID-19 "The measures taken to date - such as the provision of food and cooking gas to vulnerable households, as well as cash transfers to poorer households - go in the right direction and are a good start," Gasper said. Finance Ministry unveiled a Rs 1.70 lakh crore economic package on March 26 involving free foodgrain and cooking gas for the poor for the next three months. The total number of COVID-19 cases in India has risen to 11,439 on Wednesday while the death toll stands at 377. "To be candid, we see scope for additional spending in these areas, beyond what has already been announced, as well as a need to enact policies which support MSMEs who have been hit by the (appropriate) social distancing measures and nationwide lockdown," he added. According to Gasper, in India, large, timely and targeted fiscal and financial sector measures are essential to shield vulnerable households and firms. "The fiscal stimulus package is one step in the right direction. The package has appropriately included in-kind (food; cooking gas) and cash transfers to lower-income households; insurance coverage for workers in the healthcare sector; and wage support to low-wage workers," he said. "Similarly, a three-month moratorium was allowed for all term loans for banks and nonbank financial companies, as well as interest deferral for working capital loans," he said. When asked about the specific measure India could take to save the economy, he said the IMF believes measures could be taken on fiscal, monetary and financial sector policies in the near term. On fiscal policy, additional support is needed in the near term, including on health care and for small and medium-sized firms and vulnerable households, beyond the fiscal stimulus measures already announced, he said. Over the medium term, though, substantial new measures will be needed to bring the deficit and debt back towards the central government's medium-term targets (deficit of three per cent and debt of 40 per cent as a share of GDP), he added. Monetary policy, he asserted, should maintain a strong easing bias to mitigate any sharp COVID-19-related slowdown and support the recovery, given the sharp slowdown in domestic and global activities, moderating inflation amid a wide negative output gap, and lower commodity prices. Gasper said financial sector stress prior to COVID-19 constrained monetary transmission needs to be closely monitored. Despite measures to improve liquidity conditions, including through temporary and partial guarantees, funding pressures persist, with implications for the recovery once the shock dissipates. "Exchange rate flexibility should continue to play the role of a shock absorber, while avoiding excessive volatilities," he said. Experience from the COVID-19 pandemic shows that monitoring and containment costs are much lower than those of mitigation and treatment, he noted. As such, it is very important to prevent the health systems from becoming overloaded. National governments should continue to allocate sufficient funds for subnational governments to spend on health services or mobilise medical resources, Gasper said. He said based on the experience from other countries affected by the COVID-19 pandemic, India's proactive decision to pursue the nationwide lockdown for three weeks is an important step to contain the disease and save lives. Stating that the support for health systems, including higher spending is needed, the IMF official noted that it is crucial to prioritise health spending for medical equipment and COVID testing; compensate doctors and nurses appropriately; and make sure that hospitals and makeshift clinics have enough personal protective equipment and resources to function effectively. Emergency lifelines should be targeted to households to maintain basic needs and viable firms to prevent layoffs and exits from supply chains. They should be made progressive to ensure that lower-income households benefit more. They should be cost-effective and embedded in medium-term budget frameworks, Gasper added.
Source: Economic Times
On Tuesday, MSME Minister Nitin Gadkari had stated during a meeting that unpaid dues of MSMEs at the central and the state levels will be released at the earliest. Micro, small and medium enterprises (MSMEs) across the country are keeping a wary eye on the government's decision to allow select manufacturing units to reopen on April 20. While MSMEs in most sectors have welcomed the latest move, they argue that lack of financial support from the government might result in these firms not running even if they manage to reopen. The Confederation of Indian Industry (CII) has recommended focus primarily on increasing the financing available to MSMEs with relaxed collateral norms, an extension of the RBI moratorium and wage support. It also suggested expediting fund of funds for MSMEs which has been under the government's consideration and augmenting the assets of MUDRA Bank. “Many MSMEs are an important part of larger supply chains and their health has a bearing on the supply chain, including large firms. Therefore, special, immediate, and substantive support measures are required to see MSMEs through this crisis," said CII Director General Chandrajit Banerjee. To ease the liquidity crisis that most MSMEs had been facing for the last couple of months, Assocham has suggested a 40 per cent government or Reserve Bank of India guarantee on fresh loans, while the balance risk premium can be made up by a huge spread available to banks between their cost of funds and the yields. On Tuesday, MSME Minister Nitin Gadkari had stated during a meeting that unpaid dues of MSMEs at the central and the state levels will be released at the earliest. He estimates Rs 40,000-50,000 crore could be injected into the market by releasing the due payments.
Stuck far away
Procedural changes have also been demanded. With the majority of rural factories having little provision of accommodating large numbers of workers, transportation remains a challenge. In the garment manufacturing hub of Tamil Nadu's Tirupur, workers are spread across a 60-100 km radius from industrial units. The majority of workers in Uttar Pradesh's Noida SEZ — the biggest such facility in northern India — come from nearby districts. For Gujarat's gems and jewellery industry, the labour force originates from West Bengal. With the vast majority of the nation still under lockdown, businesses dependent on migrant labourers want the government to arrange for their transportation. "We are awaiting more clarity on how workers will travel to their units. Also, with most public transportation closed, it would be foolish to think that workers can negotiate through the web of red and green zones to reach their factories," said a senior functionary of the Federation of Indian Micro and Small & Medium Enterprises.
Unpaid orders
On the exports front, small businesses require more than just a reopening at this stage. MSME exporters are out of cash to even pay salaries, said Sharad Kumar Saraf, president of the Federation of Indian Export Organisations (FIEO). He said the order to allow the opening of export-oriented units in special economic zones and rural areas will reinstate about 80-85 per cent of their manufacturing capacity. "But since documents are extremely important to show proof of delivery and negotiation, exporting companies (having Importer-Exporter Code Number) should be allowed passes for two persons, once a week, to collect documents from the office for submission to banks, shipping lines, courier companies," he pointed out.Despite the gradual opening up of most sectors, small exporters are expected to remain under immense business pressure as the lockdown came at a crucial juncture of the business cycle. Exporter's bodies representing engineering goods, apparel, and electronics, among other sectors, have already pointed out the April-June export season is critical and 50 per cent of orders have already been lost. On the other hand, the FIEO said that realisation of payments has become difficult as increasing economic downturn grips nations, which are major markets for India, such as European Union countries, the United Kingdom and the United Arab Emirates. As a result, more than 30 per cent of export orders remain unpaid. "The latest government directive will help sampling units in the hub of textiles in Tirupur to immediately send out samples to global buyers, who can then approve the collections and place orders for the spring-summer season," said Raja M Shanmugham, president of Tirupur Exporters Association.
Gadkari: Will clear Rs 10K cr for MSMEs
A Rs 10,000-crore “Fund of Funds” will be approved by the Centre to buy up to 15 per cent equity in MSMEs with a high-credit rating — AAA — that want to be listed on exchanges , Union Minister Gadkari said. He said a separate scheme was being formulated for according credit rating to MSMEs based on their turnover, exports, and GST payments, and that the National Small Industries Corporation or some other government body will control the Fund . “It is going to be placed before the Cabinet and will soon be cleared," said the minister.
Source: Business Standard
These 25 markets together accounted for $53 billion of the $71 billion worth outbound shipments of these products in the April-February period, said Ravi Sehgal, chairman of EEPC India. Merchandise exports crashed by almost 35% year-on-year in March to $21.4 billion, the sharpest monthly decline in at least three decades since liberalisation, and imports plunged by 28.7%, as the COVID-19 outbreak and a consequent lockdown since March 24 wrought havoc on external trade. Trade deficit narrowed to a 13-month low of $9.75 billion in March. With close to a half of their orders cancelled now and the nation-wide lockdown extended up to May 3, exporters warn of a much steeper decline in both outbound and inbound shipments in April. In any case, key markets — the US and the EU — have been badly hit by the pandemic. Merchandise exports, which had already contracted by 1.5% y-o-y up to February, ended the last fiscal with a 4.8% fall to $314.3 billion. Imports dropped 9.1% in FY20 to $467.2 billion. Barring iron ore, exports of all the 30 major groups witnessed a contraction last month. The sharpest slide was witnessed in oil meals (70%), followed by meat, dairy and poultry (45.5%), engineering goods (42.3%), gems and jewellery (41%), leather and leather products (36.8%), plastics and linoleum (35.7%), garments (-34.9%) and carpets (34.7%). Petroleum product exports dropped 31.1%, partly due to a crash in prices, while rice exports declined by 28.3% and electronics goods by 21.5%. Core (non-oil and non-gold) exports dropped by 34.2% in March, while such imports fell by 29.1%. Overseas buyers are using the crisis to renegotiate contract terms and seek a cut in product prices. Domestic manufacturing units are shut and logistics chains in tatters, even though ports are functioning. However, with the government allowing some units to start operations, the situation is expected to ease in May, say exporters. But external headwinds and subdued domestic manufacturing continue to hurt exports. Even a depreciation of the rupee against the dollar is hardly any consolation, as the currencies of some of the competitors like Indonesia and Malaysia have weakened at a faster pace. Most of the top 25 destinations for engineering goods exports are facing a lockdown. These 25 markets together accounted for $53 billion of the $71 billion worth outbound shipments of these products in the April-February period, said Ravi Sehgal, chairman of EEPC India. The Federation of Indian Export Organisations president Sharad Kumar Saraf cited the cancellation of over 50% of orders, gloomy forecast, major job losses and rising NPAs amongst exporting units to urge the government to immediately announce a relief package for exports. “COVID-19 interest-free working capital term loan to exporters to cover the cost of wages, rental and utilities, EPF and ESIC waiver for 3 months from March to May 2020 and extension of pre- and post-shipment credit by 90-180 days on their maturity are the much needed steps to help the exporting community during such difficult and testing times,” he said.
Source: Financial Express
India Inc on Wednesday backed the government''s move to allow industrial units located in rural areas to function from April 20, and said it will ensure preventive measures for Covid-19 while restarting economic activities. However, the industry called for textiles, garments and automobiles sectors to be permitted to operate from April 20 to meet their export obligations and ensure free movement of goods. "The phased manner of the exit from lockdown is welcome and provides a roadmap for economic restart after May 3. The MHA guidelines are in line with CII suggestions on calibrated exit from lockdown as per spatial and sectoral considerations, while maintaining health and sanitation as well as social distancing protocols. "With this advance guidance, industry would be able to better prepare for restart of economic activities," said CII Director General Chandrajit Banerjee. The chamber said it hopes that in the next phase, some of the key labour-intensive sectors would be permitted to operate in a calibrated manner with full hygiene and sanitation measures being followed. It said the existing export orders and opportunities should be met to retain India''s export market share in the post-COVID period. Hence, textiles and garments and automobiles ecosystem including components and maintenance services should be allowed to operate after April 20 to meet their export obligations and well as to ensure free movement of goods, CII stated. "What is required now as a follow up is for those sectors that have not been allowed to open up to look at how we can sustain them in the lockdown period and post the lockdown period," Ficci Secretary General Dilip Chenoy said. "Farming operations in the fields are allowed fully for farmers and farm workers. This would help save the Rabi crop to a significant degree. "However, a major constraint is the non-availability of farm labour who may still be living in camps and other places in the urban areas. If their travel back to the rural destinations is facilitated in an orderly way, farm activities can be significantly augmented,"Â said D KÂ Srivastava, Chief Policy Advisor at EY India. "If implemented well and in a responsible manner, the economic activities can be restored to the extent of 30-40 per cent by our back-of-envelope calculations," Assocham Secretary General Deepak Sood said. "We request the government to allow Apparel Exporting units who export a minimum of 50 per cent of their turnover to operate under these guidelines, as already allowed to SEZs and EOUs in Para 15 of the consolidated revised guidelines," Apparel Export Promotion Council Chairman A Sakthivel said. "The early start of export oriented industries is vital in an economic scenario which appears to be extremely challenging. "India must place itself in a position where it is able to ramp up world class manufacturing in order to take advantage of the inevitable shift from Chinese manufacture; and is able to rely more on manufacturing within India for supply chain across industries. Units in SEZs need to be at the forefront of this,"Â said Deepto Roy, Partner, Shardul Amarchand Mangaldas & Co. Manufacturers'' Association for Information Technology (MAIT) President Nitin Kunkolienker said, "MAIT had been urging the government to include manufacturing, sales, and servicing of ICT products, including mobile phones in essential services at a time when reliance on such products and services has increased due to the lockdown. We appreciate that the industry''s voice was heard and we thank the government on inclusion of the same."Â Export Promotion Council for Handicrafts Chairman Ravi Passi said the council has approached the government to provide relief to handicraft units operational in clusters like Moradabad, Saharanpur, Agra, Firozabad, Narsapur, Jaipur and Jodhpur. The government should also consider including them in the guidelines as a large number of artisans and craftpersons are engaged in production of handicraft products of home, lifestyle, fashion, furniture and textiles exclusively for the overseas markets, he said. Â Industrial units in rural areas will be allowed to function from April 20 provided they follow social distancing norms while all kinds of public transport will be barred and public places closed till May 3, according to guidelines issued on Wednesday to enforce the second phase of the lockdown.
Source: Outlook
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
894.30 |
USD/Ton |
0% |
17-04-2020 |
|
VSF |
1282.82 |
USD/Ton |
-0.22% |
17-04-2020 |
|
ASF |
1761.76 |
USD/Ton |
0% |
17-04-2020 |
|
Polyester POY |
688.74 |
USD/Ton |
-2.01% |
17-04-2020 |
|
Nylon FDY |
1879.02 |
USD/Ton |
1.53% |
17-04-2020 |
|
40D Spandex |
4026.48 |
USD/Ton |
0% |
17-04-2020 |
|
Nylon POY |
5199.10 |
USD/Ton |
0% |
17-04-2020 |
|
Acrylic Top 3D |
946.58 |
USD/Ton |
-2.19% |
17-04-2020 |
|
Polyester FDY |
1977.92 |
USD/Ton |
7.69% |
17-04-2020 |
|
Nylon DTY |
2006.18 |
USD/Ton |
0% |
17-04-2020 |
|
Viscose Long Filament |
861.81 |
USD/Ton |
-3.17% |
17-04-2020 |
|
Polyester DTY |
2444.14 |
USD/Ton |
8.12% |
17-04-2020 |
|
30S Spun Rayon Yarn |
1822.51 |
USD/Ton |
-0.77% |
17-04-2020 |
|
32S Polyester Yarn |
1398.67 |
USD/Ton |
0% |
17-04-2020 |
|
45S T/C Yarn |
2203.97 |
USD/Ton |
0% |
17-04-2020 |
|
40S Rayon Yarn |
1992.05 |
USD/Ton |
0% |
17-04-2020 |
|
T/R Yarn 65/35 32S |
1773.06 |
USD/Ton |
0% |
17-04-2020 |
|
45S Polyester Yarn |
1624.72 |
USD/Ton |
0.88% |
17-04-2020 |
|
T/C Yarn 65/35 32S |
2062.69 |
USD/Ton |
0% |
17-04-2020 |
|
10S Denim Fabric |
1.17 |
USD/Meter |
0% |
17-04-2020 |
|
32S Twill Fabric |
0.65 |
USD/Meter |
0% |
17-04-2020 |
|
40S Combed Poplin |
0.94 |
USD/Meter |
0% |
17-04-2020 |
|
30S Rayon Fabric |
0.50 |
USD/Meter |
0% |
17-04-2020 |
|
45S T/C Fabric |
0.64 |
USD/Meter |
0% |
17-04-2020 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14128 USD dtd. 17/04/2020). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Haiti will reopen its key textile industry next week, Prime Minister Joseph Jouthe said on Wednesday, suggesting the impoverished nation had escaped the worst of the global coronavirus pandemic by imposing early on a state of emergency. The poorest country in the western hemisphere typically struggles to fight serious disease outbreaks due to its high population density, lack of water and sanitation infrastructure and inadequate health services. Yet so far Haiti has only registered 41 cases and 3 deaths, compared to 3,614 cases and nearly 200 deaths in neighboring Dominican Republic. Both have around 11 million inhabitants but Haiti receives far fewer tourists and immediately declared a state of emergency after detecting its first two cases nearly a month ago, closing borders and shuttering schools, places of worship and industrial parks. “I think we reacted very well even if the population had lots of little lapses, dancing ... block parties,” Jouthe said. Haiti has carried out relatively few tests - 453, according to the health ministry - meaning the incidence of the virus could actually be higher. Jouthe said the initial term of the state of emergency expires shortly and the government was considering whether to extend it. Either way, it had decided to allow the textile manufacturing sector, that accounts for 90 percent of exports, to restart from next Monday. The industry would start running at 30 percent of its capacity to ensure social distancing in the workplace. All over the world countries are debating when best to relax their lockdowns designed to prevent the spread of the virus and to restart the economy. Haiti’s decision may seem premature given health experts warn the outbreak has yet to peak in Latin America and the Caribbean. But its economic needs are also greater than most. “The question was whether to die of hunger or of coronavirus,” said Georges Sassine, the head of Haiti’s Industrial Association. Sassine pointed out that remittances, Haiti’s primary source of hard currency, would likely collapse this year given Haitian migrants were typically on the bottom rung of the economy so would be hardest hit by the global recession. “The government does not have enough financial resources to support the wages of the workers,” said Haitian economist Etzer Emile. “I also think ... these factories do not want to lose income, which in turn also helps the country to balance its balance of payments.” Factories accounting for around a third of textile manufacturing workers were allowed to re-open two weeks ago in order to make cloth masks and medical garments. The government intends on distributing millions of masks for free to the population, more than half of which lives under the poverty line.
Source: Reuters
Imagine a single garment that could adapt to changing weather conditions, keeping its wearer cool in the heat of midday but warm when an evening storm blows in. In addition to wearing it outdoors, such clothing could also be worn indoors, drastically reducing the need for air conditioning or heat. Now, researchers reporting in ACS Applied Materials & Interfaces have made a strong, comfortable fabric that heats and cools skin, with no energy input. "Smart textiles" that can warm or cool the wearer are nothing new, but typically, the same fabric cannot perform both functions. These textiles have other drawbacks, as well -- they can be bulky, heavy, fragile and expensive. Many need an external power source. Guangming Tao and colleagues wanted to develop a more practical textile for personal thermal management that could overcome all of these limitations. The researchers freeze-spun silk and chitosan, a material from the hard outer skeleton of shellfish, into colored fibers with porous microstructures. They filled the pores with polyethylene glycol (PEG), a phase-changing polymer that absorbs and releases thermal energy. Then, they coated the threads with polydimethylsiloxane to keep the liquid PEG from leaking out. The resulting fibers were strong, flexible and water-repellent. To test the fibers, the researchers wove them into a patch of fabric that they put into a polyester glove. When a person wearing the glove placed their hand in a hot chamber (122 F), the solid PEG absorbed heat from the environment, melting into a liquid and cooling the skin under the patch. Then, when the gloved hand moved to a cold (50 F) chamber, the PEG solidified, releasing heat and warming the skin. The process for making the fabric is compatible with the existing textile industry and could be scaled up for mass production, the researchers say.
Source: Science Daily
Nine business associations in the STAR (Sustainable Textile of Asian Region) Network are calling on buyers to honour their contracts with their suppliers. The joint statement was issued by the Garment Manufacturers Association in Cambodia (GMAC), the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), China National Textile and Apparel Council (CNTAC), Myanmar Garment Manufacturers Association (MGMA), Pakistan Hosiery Manufacturers and Exporters Association (PHMA), Pakistan Textile Exporters Association (PTEA), Towel Manufacturers Association of Pakistan (TMA) and Vietnam Textile and Garment Association (VITAS). In Cambodia, hundreds of thousands of workers in the garment sector stand to lose their jobs and their entire livelihood because of payment issues and cancelled orders by multinational buyers. Many have stepped forward to provide aid and financial relief and keep jobs moving while others are making using of this opportunity to squeeze payments or even cancel orders, thus threatening to renege on their orders and payments, blaming the pandemic for this. The industry bodies in the six countries have urging brands and retailers to consider the impact on workers in their supply chains of their purchasing decisions during the coronavirus pandemic. The organisations said it is time for global businesses to uphold and honour their commitment to labour rights, social responsibility and sustainable supply chains. They called for brands and retailers to take delivery and pay under already agreed terms for goods completed or already in production.“During this unprecedented time of global outbreak of the COVID-19, responsible business has become more important than ever for the whole world to survive and recover from the crisis,” the statement said. “Especially, responsible purchasing practices of brand companies, retailers and traders of the global textile and apparel supply chains, will bring enormous impacts on the fundamental rights of millions of workers and the livelihood of their families in the supplier end. “It is time for global businesses to uphold and honour their commitment to labor rights, social responsibility and sustainable supply chains.” It listed a series of requests to buyers including to honour contracts, take responsibility for orders already completed or in production, offer compensation for cancelled or delayed orders, and not to pressure suppliers into mothballing orders. “We appreciate the understanding, collaboration and support of our business partners and other stakeholders, and we are ready to work and walk with all responsible buyers globally to get through this crisis, towards a shared bright future,” the statement concluded. Meanwhile, the UK-based fair trade watchdog Traidcraft Exchange has also asked brands and retailers to honour their contracts with suppliers from “poorer countries” over the COVID-19 outbreak. The group noted increasing number of reports that brands were cancelling orders, delaying payment terms and refusing to pay suppliers even for completed goods in countries like Cambodia, Bangladesh, China, India and Vietnam. In a statement, the group came down heavily particularly on British fashion brands and retailers describing their actions as “harassment”, which endangered the lives of millions of workers who make their clothes. “The coronavirus pandemic is exposing the bullying practices with which fashion retailers and brands treat their suppliers, with knock-on consequences for workers,” said Traidcraft Exchange’s Senior Private Sector Policy Advisor Fiona Gooch. And the Remake non-profit has launched a petition, entitled #Payup, urging brands and retailers to continue paying factory workers in their supply chains amid the coronavirus crisis. “Brands must pay for in-production and canceled orders, rather than abandon their supply chain partners and the women who have kept their businesses profitable for decades,” a post on Change.org read. EcoTextile
Source: Khmer Times
Uzbekistan on Thursday asked a coalition of human rights groups, the Cotton Campaign, to end a boycott of Uzbek cotton and textiles so that the Central Asian nation could boost export revenue and create jobs at a time of a global recession. The Tashkent government estimates that ending the boycott, which is supported by more than 300 apparel manufacturers and retailers, could allow the country to earn an extra $1 billion by selling cotton and textiles on Western markets. In an open letter to the Cotton Campaign leadership, Uzbek labour minister Nozim Khusanov urged it to consider both the progress made by Uzbekistan in eradicating forced labour and the country’s economic circumstances. “Lifting of the cotton boycott is one of the few measures that could quickly generate much-needed jobs and support the economic wellbeing of Uzbeks during the COVID-19 crisis,” the government said in a statement. “Textile production alone employs 200,000 workers in Uzbekistan; their wages support the livelihoods of 1 million people.” Rights activists launched the boycott campaign in 2006 in an attempt to force Uzbekistan to abandon a long-running custom of sending students and public sector employees such as teachers and doctors to pick cotton for meagre pay. Today, because of the boycott, supported by the likes of Amazon, Calvin Klein, Adidas and Inditex, the nation of 34 million mostly sells cotton and textiles on Asian markets, which it says means lower prices and limited growth opportunities. President Shavkat Mirziyoyev, who came to power at the end of 2016, has gradually dismantled the forced labour system, explicitly barring provincial authorities from mobilising students and public sector workers for cotton harvesting. Last month, Mirziyoyev signed a decree abolishing the system under which provinces were obliged to meet cotton production targets set by the central government. The Uzbek government said it expected to boost textile exports to $3 billion this year from last year’s $2 billion, but if the boycott was lifted, export volumes could double year-on-year. There was no immediate reply from Cotton Campaign to a request from Reuters seeking comment. In a statement in February, it said Mirziyoyev “has led his government in a vital shift in tone and substance to end forced labor in the cotton sector”, but the use of forced labour persisted, requiring further action and monitoring.
Source: Reuters
