The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 13 MAY, 2020

NATIONAL

INTERNATIONAL

Finance Minister Nirmala Sitharaman to address press conference at 4 pm today, could share details of Rs 20 lakh crore package

Finance Minister Nirmala Sitharaman will address a press conference at 4 pm today in which she's expected to share details of the Rs 20 lakh crore economic package announced by Prime Minister Narendra Modi on Tuesday in his address. The Prime Minister spoke about making India self-reliant and announced an Aatma Nirbhar Economic Package with focus on land, liquidity, labour and laws. The Rs 20 lakh crore package encompasses the government's Rs 1.7 lakh crore package announced in March and the liquidity measures announced by the RBI for NBFCs and the financial sector. The finance minister is expected to announce package for the MSME sector which has bore the brunt of the lockdown as sales have frozen and payments from bigger industrial units are overdue. A credit guarantee scheme could likely be announced. Tax sops could be on the table for certain labour-intensive sectors where scope for indigenisation is more.

Source: Economic Times

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Modi’s mission self-reliance: Make in India, lower import dependence

NEW DELHI: India will fire on all cylinders to achieve atmanirbharta (self-reliance) and could offer tax sops, procurement preference in government contracts for domestically produced goods while imposing stringent non-tariff barriers to discourage imports. Measures for sectors such as pharmaceuticals, furniture and leather are in focus and states could be asked to revamp their procurement processes to prefer local manufacturing. Prime Minister Narendra Modi said on Tuesday that the Covid-19 crisis has taught us the importance of local manufacturing, local market and local supply chains. “All our demands during the crisis were met locally. Now, it is time to be vocal about local products and help these local products become global,” he said.  ET reported last month that the country has begun work on a continuity plan that includes cutting down import dependence, especially from China, by focussing aggressively on substitution while improving safety compliance and quality goods to gain global market share. “The idea is to cut down dependence on reliance of imports from one country while encouraging local manufacturing... Why should we be importing furniture and leather in which we have competence?” a senior government official asked while speaking with ET. The government will look at areas where it has capability but continues to import, officials said. The commerce and industry ministry has identified medical textiles, electronics, plastics and toys as some sectors where local manufacturing and exports can be promoted in the next three months, or phase one, while phase two products include gems and jewellery, pharma and steel, in the next six months. According to the official, the upcoming measures could include tax incentives and other support measures to make local manufacturing more competitive globally. “Support measures are also likely to aid local manufacturers build brands globally,” the official said. “Swadeshi focus was not just an ideological concept presented. It is a serious thought that would be followed up with concrete steps,” said another government official. Sharad Kumar Saraf, president of the Federation of Indian Export Organisations, noted that increasing localisation is a fallout of Covid-19 across the globe, but this will make market access for exports more difficult.

Source: Economic Times

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Shri Nitin Gadkari welcomes PM's economic package for MSME, village and cottage industry sector; says, it will take this sector to new heights

Union Minister for MSMEs and Road Transport & Highways Shri Nitin Gadkari has welcomed the Prime Minister's relief package worth Rs 20 lakh crore announced this evening. He said, through this historical package, the Prime Minister has fulfilled the expectations and aspirations of the MSME, village and cottage industry sector.  Shri Gadkari said, with abundant resources, superior technology and raw materials, India can soon become self-reliant in all sectors. He said, the Prime Minister has also envisioned India as a super economic power in global economy. The Minister said, taking the economic slowdown due to COVID-19 pandemic as a blessing in disguise, we should strive to maintain positivity and self confidence to take the country ahead.  The Minister said, the nation will remember this gesture of the Prime Minister for a very long time. He said, PM's support to this sector which gives employment to over 11 crore people and contributes by nearly 29 per cent of GDP, can never be forgotten by all the stake holders of this sector. He expressed confidence that the MSME, village and cottage industry sector will grow to new heights with the support of this package.

Source: PIB

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Index of Industrial Production and Use-Based Index for the month of March, 2020 (Base 2011-12=100)

The index of industrial production (IIP) witnessed a sharp decline of 16.7 per cent to 120.1 in the month of March, according to the data released by the Ministry of Statistics & Programme Implementation (MoSPI).

The IIP had grown 2.7 per cent in March 2019.

The industrial growth during the fiscal year 2019-20 (April-March) slipped 0.7 per cent, compared to a 3.8 per cent rise in 2018-19, the data showed. The steep fall in IIP during March was mainly on account of a dismal show by mining, manufacturing and electricity sector due to the nationwide lockdown due to the coronavirus (COVID-19).The manufacturing sector saw a contraction of 20.6 per cent on-year to 114.8 during the month of March, while the mining sector remained flat at 0.0 per cent at 132.7 and electricity sector witnessed a fall of 6.8 per cent at 149.2, the MoSPI data showed. In March last year, the manufacturing sector had witnessed a growth of 3.1 per cent. During the same period, the mining sector had grown at 0.8 per cent and the electricity sector had witnessed a growth of 2.2 per cent, the data showed. “In view of the global COVID-19 pandemic and consequent nationwide lockdown measures implemented since March, 2020, the data flow from the producing units was impacted. As some of these units are yet to resume operations, the response rate has been lower than usual,” the statement said. In a separate release by MoSPI, the retail inflation which is measured by the Consumer Price Index (CPI), was revised to 5.84 per cent for the month of March. Last month, the provisional data released by the ministry showed a 5.91 per cent growth in consumer inflation. The provisional data for the month of April was not released. “In view of the preventive measures and announcement of nation-wide lockdown by the Government to contain spread of COVID-19 pandemic, the price collection of Consumer Price Index (CPI) through personal visits of price collectors was suspended with effect from 19th March, 2020,” the release said.

Source : Indian Express

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US, India and five other nations talk post-covid trade

NEW DELHI: The United States reached out to India and five other countries on Monday to kickstart a discussion on how to move the global economy forward in the wake of Covid-19 and to find ways to cut dependence on China. Israel, Brazil, Australia, Japan and South Korea were part of the videoconference and certain other like-minded countries may join the discussion at a later stage, according to people aware of the matter. Many of these countries share close trade and commercial links with China. The US state department said the foreign ministers of the seven countries discussed the importance of international cooperation, transparency and accountability in “combating the pandemic and in addressing its causes”. The US has maintained that China suppressed early information about the outbreak of coronavirus when it was first detected in Wuhan and has consistently downplayed its risks. But the videoconference was not a single-agenda initiative as India has maintained a cautious diplomatic approach by not targeting China publicly. External affairs minister S Jaishankar tweeted that the videoconference covered pandemic response, global health management, medical cooperation, economic recovery and travel norms. “Look forward to continuing this engagement,” he said. US secretary of state Mike Pompeo had earlier referred to Monday’s videoconference on April 29 when he said the US government was working with Australia, India, Japan, South Korea, New Zealand and Vietnam to “move the global economy forward” and explore restructuring “supply chains to prevent something like this from ever happening again”. The participants in the videoconference included Australia’s Marise Payne, Israel’s Yisrael Katz, Japan’s Taro Kono, Brazil’s Ernesto Araújo and South Korea’s Kang Kyung-wha. Each country shared its experience in handling the outbreak and how different countries could help each other.

Source: Economic Times

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Surat textile industry bears the brunt of coronavirus lockdown

India’s lockdown has brought several businesses to standstill. In a recent example, textile industry in Surat has incurred huge losses due to the ongoing coronavirus lockdown. Jitubhai Vakharia, President, South Gujarat Textile Processors' Association said, "An estimated loss of Rs 1000 crores may be incurred as the lockdown is expected to extend".

Source: DNA

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Telangana Minister KT Rama Rao writes a letter to union textile minister Smriti Irani

Highlights

Telangana Minister for textiles KT Rama Rao wrote a letter to Union Minister Smriti Irani on the impact of Covid-19 on handlooms and textile industry. In his letter he said, "I am taking this opportunity to write to you with some views about the impact of the COVID-19 pandemic on the Indian Handloom, Textiles and Apparel Industry. As you are aware, we have placed high emphasis on the sector to create jobs for our local population and to contribute to the country's GDP and exports. I also recall your encouraging words when I personally called upon you a few months back. For India, the sector holds added importance due to its potential to create jobs which is better than any other sector. The parameters of jobs created for every unit of investment and every unit of land are the most favourable in textiles, compared to any other industry. Therefore, it is imperative that the State Governments and Central Government work together to protect the millions of livelihoods that depend on the sector. Telangana has placed higher importance on the textile sector, as also handlooms, with a view to creating jobs. We have textile parks coming up to Warangal and Sircilla, and we have received commitments from global/domestic investors. Telangana also has a rich tradition of handlooms, through the specialities of Pochampally Ikat, Gadwal Cotton, Silk & Sico sarees, Narayanpet Cotton and Silk sarees, Gollabhama sarees, etc.

Present Status of Handloom & Textiles and impact of COVID-19

As you are well aware, COVID-19 has affected the entire world. The textile sector is unique in its global structure, wherein Asia including India has established itself as a producer while the consumption is dominated by Europe and USA (which together account for 65% of the finished product i.e. apparel), thus leaving huge scope for foreign exchange earnings for a country like India. Our country has been doing well and has met competition from other Asian countries, however, needs to do a lot more. India is an important member of the global supply in textiles and apparel. We are ranked 6th in textile and apparel exports, at about USD 36 billion. Our rich tradition of handlooms also contributes to exports of about USD 350 million every year. There is a lot of scope for enhancing our exports by encouraging the industry to invest more, and also attracting foreign investors, thus creating more jobs. Our close competitors like Bangladesh and Vietnam have been performing exceptionally on the export front and there is no reason why India cannot dominate the global trade in apparel. Consumption patterns across national/ international markets will change in post COVID world, e.g. more spending will be on healthcare, resulting in higher opportunities from healthcare institutions and also the technical textiles segment which caters to medical textiles. Retail channels will shift more towards online than brick and mortar stores, which point to need for fast fashion and quicker turnaround at the factory. These points to better integration of the segments i.e. having integrated textile zones to improve efficiencies. I have been interacting with members of the textile industry, both within our state and outside. The common refrain is that the recovery will be very slow and will be contingent upon the Western world commencing regular operations. Several companies have seen their orders cancelled and shipments put on hold and are facing zero revenues and cash flows for the next 4-6 months, in the best-case scenario. Given this situation, I am seriously worried about the sustenance of the industry and the resulting impact on the livelihoods of millions of workers. On the other hand, it is obvious that the large global consumers will have to de-risk their supply chains and reduce dependence on major suppliers like China. This offers a huge opportunity for India to attract further investments to meet the resurgence in the consumption a few months down the line. In this scenario, I am of the opinion that we should address the issue of protection of livelihoods as well as exploit the emerging opportunities for creating new jobs and increase our exports. I would like to make the following suggestions to meet the immediate and medium-term requirements to protect our industry and create more jobs for our people.

Short term policy support required

Resumption of operations – Reassurance to workers

Wage Support: Providing wage support of up to 50% of wages, contingent on continued employment of the workforce. This support can be given for a period of up to 6 months, in the form of a long-term loan which the industry would need to repay in instalments after a stipulated period. I understand Bangladesh Govt is giving a similar support package to its garment industry.

Statutory payments: Allow the industry a one-time extension of 3 months for the deposit of statutory dues of PF and ESI. This will release some cash for the industry.

These measures will benefit the workers employed in the sector and will provide a source of reassurance for their continued employment.

Banking support

Facilitate higher temporary credit facilities (up to 30% of current limits) to meet the cash losses during this slowdown, so that it will enable the industry to meet its obligations towards its vendors and statutory payments so that the entire supply chain is protected. The Govt of India could consider funding this through a concessional line of credit so that the banks are adequately supported, and the funds return to the Govt in due course.

Interest Subvention / Moratorium: While the RBI has already announced measures to improve liquidity and reduce the interest rates, this can be further augmented by a complete interest waiver or an interest subvention scheme of 2-3% on all loans (including working capital credit) availed by the sector as has been done in the past under TUFS. Further, a special moratorium of 1 year may also be considered.

Asset classification: RBI may be requested to allow the banks not to downgrade loan accounts by giving a grace period of 6 months to 1 year. Otherwise, many regular accounts may be classified as NPAs affecting their long-term track record.

Incentives to Exporters

Govt of India has announced the Rebate of State and Central Taxes and Levies (RoSCTL) scheme for apparel and made-ups segment. It is important that RoSCTL is extended to other segments like yarn and fabric as well. This will enable the intermediate segments to improve their operational sustainability.

Govt of India may also consider additional incentives to exporters for a period of 1 year to tide over this crisis. Any incentives to exporters will also indirectly support the domestic value chain.

GST refunds: A common refrain from the industry is for expediting the pending refunds of GST, which will release cash and in turn enable the industry to meet payments to workers and other vendors.

Handloom Sector

In order to support the handloom sector in these difficult times, steps should be taken to enable a wider market for the piled-up handloom fabric and finished products on national and international e-commerce platforms. This could also be supported through institutional buying by Govt of India owned corporations like KVIC, Cottage Industries Emporium, etc. An aggressive "Be Indian, Buy Indian" initiative by Govt of India is the need of the hour, and our State Government will provide wholehearted support for it. These measures will help in releasing cash and thus protect the lakhs of households dependent on handlooms.

Further, in order to encourage faster reboot of the sector, Govt of India could consider 50% yarn subsidy across the handloom industry. As a special case, the GST Council should also consider complete waiver of GST on handloom products for a period of 2 years to boost the sector.

Our Government has taken various steps to support the handloom weavers so that they are able to regain their market with their niche products. We have recently completed a detailed census of handlooms across the state including geo-tagging of each and every handloom in the state so that we can provide directed benefits to the weavers working on these handlooms and ensuring that the financial support is directed to the deserving weavers. A similar initiative can be considered at the national level as well.

Medium-term

Promoting Manmade Fibres: Globally, the proportion of manmade fibres in total fibre consumption is more than natural fibres, unlike in India. However, the trend in India is moving towards manmade fibres with the growth of segments like fashion wear, activewear, etc., in line with global trends. Further, the growth of technical textiles will also require synthetic materials. New investments are more likely to be in these segments. To support this, correcting the inverted duty structure under GST on man-made fibres would be another strategic step required.

Cotton procurement support: Transfer subsidies directly to cotton farmers' accounts through direct benefit transfer (DBT) instead of offering a minimum support price (MSP) for their produce. This will avoid the distortion of prices of raw material which are inputs to the downstream spinning industry.

Attracting Investments by industry

As you would be aware, the ability of the Indian industry to make fresh greenfield investments is limited given the current scenario. However, the investment scenario will improve in a few months, and it will be necessary for us to prepare ourselves to make these investments happen.  I understand that the Govt of India is considering setting up of large textile zones and would certainly request you to take this up on priority as it will support the entire country. In Telangana, we have taken up the Kakatiya Mega Textile Park (KMTP) at Warangal as a strategic project to support this vision. We are already seeing a lot of interest from national and international investors in the project. In this regard, expediting the Mega Textile Park Policy, presently under consideration at the Ministry of Textiles, will go a long way in supporting industrial infrastructure creation at a rapid pace. Further, speedy approvals for the project under IPDS scheme will also help.  Further, in our projects, we have provision for plug and play infrastructure, whereby ready to use buildings will be provided to industry to quickly start operations. I am glad to know that during a recent meeting of the Hon'ble Prime Minister with the Cabinet, this option is being considered across the country.  In order to enable the prospective FDI investors to look at India more favourably, it will be necessary to provide some form of support towards wage cost and power cost, which are two major factor costs for the industry. Here, I would request the Govt of India to consider the following: reintroduce the scheme for supporting the employer's contribution towards PF, ESI, as done earlier for the apparel and made-up sector, and extend it for all segments provide some for an additional wage subsidy for a limited period linked to certain commitments from the industry. The above measures would be a huge boost in supporting the existing industry and attracting new investments in textile, technical textile and apparel sectors and will take the reforms initiated last year through lowering of corporate tax rates, further. I am confident that we will also be able to attract MNCs planning to shift their manufacturing from high cost and / or high-risk geographies to India. Looking forward to partnering with the Ministry of Textiles in these challenging times.

Source: The Hansindia

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Finance Ministry releases Rs 6,195 crore to 14 states

The government released Rs 6,195.08 crore to 14 states as the second equated monthly installment of the Post Devolution Revenue Deficit Grant on Monday. "This would provide them additional resources during the Corona crisis," the finance ministry said in a statement Monday. The grant was recommended by the 15th Finance Commission, and an equal first installment of the grant was issued by the Centre to states on March 14. On Monday, the Centre released advance payments of over Rs 1,276 crore to Kerala, followed by over Rs 952 crore to Himachal Pradesh and over Rs 638 crore to Punjab. Assam received Rs 631 crore, Andhra Pradesh Rs 491 crore, Uttarakhand Rs 423 crore, and West Bengal got Rs 417 crore. The grant will help state governments take preventive and mitigation measures for containment of the Covid-19, including setting up quarantine facilities, sample collection and screening and setting up additional testing laboratories. Cash-strapped states can also use the funds to cover cost of consumables, and purchase of personal protection equipment (PPE) for healthcare, municipal, police and fire authorities, besides purchase of thermal scanners, ventilators, air purifiers, and consumables for government hospitals.

Source: Economic Times

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Covid-19 fight to be more targeted, PM signals focus shifting to economy

Prime Minister Narendra Modi on Monday said economic activities, which had started to pick up with the partial easing of lockdown restrictions, would gather further steam in the coming days. This is an indication that the Centre may further relax guidelines substantially for the resumption of economic activities to save livelihood, even if it finally decides to extend the lockdown beyond May 17. In a meeting with chief ministers of various states through video conference, his fifth since March 20 on the Covid-19 pandemic, the Prime Minister said: “We must realise that fight against Covid-19 has to be more focused now. Going forward, the road ahead should be focused on reducing the spread and ensuring that all precautions are taken by people including social distancing norms by observing ‘Do Gaj Doori’ (six-feet distance).” Modi urged the chief ministers to ensure that people in rural areas remain the least affected. The meeting was also attended by defence minister Rajnath Singh, home minister Amit Shah, finance minister Nirmala Sitharaman and health minister Harsh Vardhan. Some of the chief ministers were, however, were split in their demands, based on their own requirements. While some chief ministers – such as Andhra Pradesh’s Jaganmohan Reddy – wanted various lockdown restrictions to be lifted, with strict riders, Gujarat chief minister Vijay Rupani pitched for limiting the lockdown to only “containment zones” within hot spots. Punjab chief minister Amarinder Singh, however, wanted an extension of the current lockdown, albeit with a carefully-devised strategy to empower states to save both lives and livelihood. Maharashtra chief minister Uddhav Thackeray sought “specific, concrete” direction from the Centre on lockdown. He wanted the Centre to allow the operation of local train services for essential service staff. As FE has reported, with over 60% of units still remaining shut and most others operating at just 10-15% capacity, the “graded” easing of the lockdown curbs has barely revived manufacturing in export hubs. The red zones make up for around 60% of GDP. As for exports, the units that contributed about 70% to the country’s outbound shipments of $314 billion in FY21 are located in such hot spots. While many states have now given them approval to start manufacturing even in such hot spots (barring the “containment” areas within them), thus enabling more units to open, key cities – such as Mumbai and Ahmedabad – are still completely shut. Even manufacturing in some other industrial belts – such as Pune, Hyderabad, Bhopal, Indore, Kanpur and Agra – hasn’t really started. In the meeting with Modi, Chhattisgarh chief minister Bhupesh Bhagel sought the Centre’s approval to allow states to define red, orange and green zones. He asked the Centre to give wages for 200 days of work under the National Rural Employment Guarantee Scheme (NREGS) and resumption of train and air travel and bus services. However, Tamil Nadu chief minister K Palaniswami didn’t want train, flight services to resume at least until May 31. Rajasthan chief minister and senior Congress leader Ashok Gehlot requested that the Centre permit inter-state supply chain to function properly. There are 44,029 active corona cases in India, and the number is rising. The pandemic has claimed 2,206 lives so far, while 20,916 people have recovered from it. In his meeting with the chief ministers, Modi said: “We now have reasonably clear indication as to the geographical spread of the pandemic in India, including the worst affected areas. Moreover, over the past few weeks, officials have understood operating procedures in a time such as this, right up to the district level,” he said.

Source: Financial Express

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Big opportunity for India

Disruption in China has created prospects for India to emerge as an alternative manufacturing destination. One of the key fallouts of the Covid-19 crisis is that several big investors across multiple sectors are having a rethink over their presence in China, with some even thinking of exiting the country and looking to relocate elsewhere. India has a major opportunity waiting to be tapped. The dependence on China is something that every manufacturing company is definitely reviewing and revisiting. For instance, Japan and South and Korea have already given enough indications about the possibility of their companies moving away from China. Textiles, electronics, pharmaceuticals and life sciences are among the sectors that could throw up big opportunities. Keeping this trend in view, Telangana Information Technology Minister KT Rama Rao has made the right pitch to attract investments into the State, which has an ideal ecosystem for these industries to flourish. This is the result of a string of pro-active industrial policies undertaken by the State government to attract big players. Post-pandemic, several global companies would be keen to reduce their dependence on China for supply chains and manufacturing and look to diversify their operations. If India can capitalise on this opportunity, the ‘Make in India’ programme can see a big acceleration. Already, countries like Vietnam are offering a compelling alternative to China in terms of electronics manufacturing. It remains to be seen how quickly India’s policymakers can move to address some of the issues that the companies face when they set up operations in India. The disruption in China has created prospects for India to emerge as an alternative manufacturing destination. The need for the country to build up self-reliance in manufacturing has acquired a new sense of urgency now as the coronavirus has spread to other manufacturing hubs such as South Korea, Singapore and Taiwan. New Delhi needs to work on a wide range of issues such as taxation, regulatory mechanism, financial sector and data privacy to become an attractive destination. Experience shows that a sluggish and risk-averse bureaucracy has created a situation where India moves one step forward and two steps back on the issue of reforms. Emerging economies like Vietnam have been attracting global manufacturers because of fewer regulations, lack of red tape and lower wage bills, although India has a greater reservoir of skilled workers well-versed in information technology. At present, Indian drug makers rely on China for over two-thirds of the supply of bulk drugs. This must change. The Environment Ministry must streamline the processes to facilitate fast-track clearances for manufacturing units for drug raw materials. Being the second-largest producer of bulk drugs in the world, India is better placed to provide an alternative to China in terms of API (active pharmaceutical ingredient) source.

Source: Telangana Today

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Garment units to re-open today as Karnataka shifts gear on economic activity

Garments with apparel export commitments will re-open on Monday as Karnataka’s industrial sector slowly picks up momentum amid challenges like shortage of labour and lack of public transport. The government has allowed garment units, among the largest employers in Bengaluru, to operate with one third of their workforce. They should have, however, been registered with apparel export promotion council (AEPC). The Industries department is also working with them to get them to make face-masks in large numbers as it is now mandatory for members of public to use masks, but not surgical masks. “We are trying to re-purpose garments, electronic and automobile units to see that they churn out healthcare related stuff such as masks, PPE gears and ventilators to ease the supply issues,” Gaurav Gupta, Principal Secretary, Industries department, told ET. A number of restrictions have already been removed for industries across green and orange districts, and in rural areas of red zones too. Earlier they needed police passes, but now even that requirement has been removed. The employees can commute to work and back with their ID cards, Gupta said. Chief Secretary TM Vijay Bhaskar had, last week, facilitated seamless inter-district movements declaring the districts of Bengaluru Urban, Bengaluru Rural, Ramanagara, Kolar and Chikkaballapur as one unit. Many industries are still grappling with inadequate supply of raw materials to run their units as they are stuck in ports in Covid-19 cities such as Mumbai. There is also the issue of getting workers back to Bengaluru as many have returned to their native places within Karnataka, and have not been able to return for want of transportation. “We are currently working to resolve these issues,” Gupta said. “I have been interacting with industries and their associations almost on a daily basis to understand their problems, clarify doubts, and motivate them to deliver their best under the circumstances,” the Principal Secretary, Industries, said. Industries Minister Jagadish Shettar, meanwhile, has written to the Centre requesting for a financial package from ministries such as Finance and Industries to help the struggling industrial sector. He has asked for working capital loan to industries under the existing lines of credit and collateral to help them tide over the short-term liquidity crisis. Several industries, official sources said, have been unable to pay April salaries to employees as the entire month was lost under a Covid-19 lock-down. An intervention now will help struggling industries pay salaries and other dues to suppliers. Chief Minister BS Yediyurappa has already allowed the MSME units deferred payment of fixed charges of electricity by two months easing their pain to some extent.

Source: Economic Times

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Vardhman Group introduces special fabrics for face masks

Vardhman Textiles Limited is an integrated textile manufacturer. The company is engaged in manufacturing of cotton yarn, synthetic yarn, woven fabric, sewing thread, acrylic fiber, tow, and garments. It offers the range of specialized greige and dyed yarns in cotton, polyester, acrylic and a range of blends”. The group recently launched a variety of functional fabrics, curated specially to suit the needs of today’s environment. The anti-bacterial and breathable properties of the fabric make it perfect for the manufacturing of the much-needed face masks. The fabrics are customizable and eco-friendly. the fabric is designed to create a soft inner lining as well as a water repellent outer layer. Available in a variety of colours and designs, the fabrics would make an appropriate fit for producing face masks. The reusable and washable and sustainable characteristics of the fabric would cater to the requirements of every person in need of a face mask. Available in a poly-cotton blend, recycled polyester, etc., masks made by these fabrics are washable up to 30 HL. Furthermore, the Group also introduced DRDO approved PPE kits produced at the company’s Ludhiana-based garment manufacturing unit.

Source: India City Blog

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E-commerce policy put on hold

India has decided to put the much-awaited e-commerce policy, which seeks to set up a regulator for the sector, on hold for now in view of the Covid-19 pandemic and economic challenges. Draft of the policy was discussed by a group of secretaries after which a call was taken to not pursue it for some time. “We have redrafted the policy and presented it to the group of secretaries. However, the environment is not congenial now and officers are busy in Covid-19-related work,” said an official in the knowledge of the details.

Source: Economic Times

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Global Textile Raw Material Price 13-05-2020

Item

Price

Unit

Fluctuation

Date

PSF

803.34

USD/Ton

0%

13-05-2020

VSF

1241.33

USD/Ton

0%

13-05-2020

ASF

1583.40

USD/Ton

0%

13-05-2020

Polyester    POY

737.74

USD/Ton

-1.88%

13-05-2020

Nylon    FDY

1946.63

USD/Ton

2.99%

13-05-2020

40D    Spandex

4020.21

USD/Ton

0%

13-05-2020

Nylon    POY

5191.01

USD/Ton

0%

13-05-2020

Acrylic    Top 3D

973.31

USD/Ton

-1.43%

13-05-2020

Polyester    FDY

1847.89

USD/Ton

6.07%

13-05-2020

Nylon    DTY

1749.14

USD/Ton

0%

13-05-2020

Viscose    Long Filament

931.00

USD/Ton

0%

13-05-2020

Polyester    DTY

2271.07

USD/Ton

3.87%

13-05-2020

30S    Spun Rayon Yarn

1735.04

USD/Ton

0%

13-05-2020

32S    Polyester Yarn

1354.18

USD/Ton

0%

13-05-2020

45S    T/C Yarn

2158.22

USD/Ton

0.33%

13-05-2020

40S    Rayon Yarn

1904.31

USD/Ton

0%

13-05-2020

T/R    Yarn 65/35 32S

1650.40

USD/Ton

0%

13-05-2020

45S    Polyester Yarn

1551.66

USD/Ton

0%

13-05-2020

T/C    Yarn 65/35 32S

2017.16

USD/Ton

0%

13-05-2020

10S    Denim Fabric

1.12

USD/Meter

0%

13-05-2020

32S    Twill Fabric

0.64

USD/Meter

0%

13-05-2020

40S    Combed Poplin

0.93

USD/Meter

0%

13-05-2020

30S    Rayon Fabric

0.49

USD/Meter

-0.29%

13-05-2020

45S    T/C Fabric

0.64

USD/Meter

0%

13-05-2020

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14106 USD dtd. 13/05/2020). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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Japan Market extends gain on lockdown-exit hopes

Japan share market finished session higher on Monday, 11 May 2020, as investor sentiment was bolstered by hopes that the Japanese government may move ahead with lifting the some coronavirus-linked restrictions in some parts of the country by the end of the week where the virus has been less prevalent. At closing bell, the 225-issue Nikkei Stock Average surged 211.57 points, or 1.05%, to 20,390.66. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 22.34 points, or 1.53%, at 1,480.62. Total 28 issues of 33 industry category of Topix index were in positive territory, with Air Transportation, Marine Transportation, Iron & Steel, Nonferrous Metals, Textiles & Apparels, Land Transportation, and Transportation Equipment issues being notable gainers, while Securities & Commodities Futures, Pharmaceutical, and Precision Instruments issues were notable losers. Broader sentiment was helped by moves by some European countries to ease virus restrictions. Japan last week extended the nationwide state of emergency until the end of May, saying it would reassess the situation on May 14 and possibly lift the measures earlier for some prefectures.

CURRENCY: The U. S. dollar index, which tracks the greenback against a basket of its peers, was last at 99.747 after seeing levels above 100 last week. The Japanese yen traded at 106.93 per dollar after weakening from levels below 106.2 last week.

Source: Business Standard

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Restart textile downstream supply chain in Sindh: APTMA

The All Pakistan Textiles Mills Association (APTMA) recently demanded that Sindh should immediately allow the entire textile value chain to restart production or else the provincial industry would collapse, leading to total closure, bankruptcy and mass unemployment. So far, units with export orders or in-house residential colonies have been given permission. APTMA Sindh-Balochistan region chairman Zahid Mazhar said the textile industry in the province has already adopted all precautionary measures to prevent the spread of the novel coronavirus.  However, there would be no positive impact on the provincial economy unless downstream textile industry, including sub-sectors of weaving, knitting, stitching, processing and garmenting that provide intermediary materials, do not restart to complete the business cycle of the export industry, he was quoted as saying by Pakistani media reports. The textile industry in the province is not even running at 50 per cent capacity at present and is not in a position to pay even the utility bills and wages, he added.

Source: Fibre2Fashion

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US-UK trade talks have begun – here’s what each side wants and what to expect

Trade talks between the UK and US have officially begun. Both parties are working towards a free trade agreement – a full deal, as opposed to something like the recent China-US “mini deal” that focuses on certain export targets to manage trade between the two countries. Like a lot of relationships at the moment, this one is being negotiated over video. There are doubts over the timeline of when these talks will come to a conclusion. As well as the coronavirus pandemic, the picture is further complicated by the ongoing EU-UK talks. But at the outset of this process there are some things we know about what each side is looking to get out of a deal.

What the UK wants

The US is already the UK’s biggest destination for goods, sending 13% of its exports there in 2018. The UK wants better access for these US-bound exports, particularly food and agricultural products, though those only account for 5% of its US exports overall. Improving market access relies on an array of factors, starting with tariffs. For example, ceramics face a particularly high tariff of 28%, as do some categories of textiles, at 32%. Agreement must also be reached on rules of origin, where there is a joint understanding as to how the origin of each product will be decided. This is very important since 70% of trade involves global value chains, so most goods have value added by producers from more than one country. This means that deciding on a single origin for each product is tricky and may have an impact on the costs of trading, since various duties depend on the origin of the product. Further issues involve technical barriers to trade, standards, and agreements on testing procedures.  As well as goods, trade in services is also on the agenda. The UK is keen to see improved market access for UK services in accountancy, architecture and finance, as well as freedom of movement and mutual recognition of professional qualifications.

What the US wants

The US already has lower tariffs than the UK for most categories of goods, so it would expect more concessions from the UK side in this regard. For instance, US tariffs on imported cars are 2.5%, while UK tariffs are 10%. The UK currently meets EU regulations for environmental, fuel efficiency and safety standards for cars. A comparison of EU and US regulations shows numerous differences: the US directly sets minimum fuel efficiency, while the EU does not; the EU and US have different emission standards. Even seatbelt regulations differ. This has important implications for how cars are built, making it more difficult and expensive to export cars to both markets.  The US team will also push for US products to be traded more freely in the UK market – hence, chlorinated chickens and other agricultural and food products produced according to US standards. When it comes to services, the US will want to better access for its healthcare and pharmaceutical companies. So even though the UK government says that the NHS is not on the table, we can expect US negotiators to try and gain access to it.

EU looms large

These UK-US negotiations cannot be separated out from those between the EU and UK, since US demands are bound to clash with some EU rules and regulations. This will lead to a painful trade-off for the UK, which will have to choose between closer economic ties to either the EU or US. The fact that the US is a much smaller trade partner than the EU means potential gains from the UK-US deal are quite small. When you add the issue of regulations to this – the UK and EU are already much more closely aligned, whereas the US has a much more liberal policy environment – the UK has a lot to lose from worsened access to EU markets. We show in our research that even if the UK manages to secure preferential trade arrangements with the US and the Commonwealth countries combined, it will not offset the negative impact of Brexit. Because the EU is the UK’s biggest trade partner, the UK will benefit the most from securing a full free trade deal with the EU.

Negotiating tactics

The UK is using an interesting negotiating tactic of launching simultaneous trade talks with the EU and US. The idea is that if it achieves good progress in its trade talks with the US, it can use this as leverage to influence negotiations with the EU. This approach has been criticised by some trade experts because it spreads the UK negotiating capacities too thin and creates difficulties in coordinating these talks. The fact that the negotiations must now be carried out remotely makes it even more difficult due to the logistical constraints of talking over video. The US-Japan Trade Agreement came into effect this year after six months of negotiations and using a fast-track approvals process in the US. However, this was really only another mini-deal concentrating on tariffs and digital trade. This suggests that a comprehensive UK-US deal will take much longer and would need a vote in Congress. In between dealing with the COVID-19 outbreak and the associated economic fallout, as well as the US elections, it may take a while before we see any results from these virtual negotiations. And we must remember that the UK government’s own modelling suggests that a deal will bring limited economic gains for the UK.

Source: The Conversation

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65 groups' strategy for sustainable textile supply chains

In April 2020, a coalition of 65 civil society organisations put forward a joint shadow European Strategy for Sustainable Textile, Garments, Leather and Footwear, in which they proposed a set of legislative and non-legislative actions for more sustainable supply chains after COVID-19, and urged the European Commission, members of the European Parliament (MEPs), European Union (EU) member nations and other stakeholders to work towards such a strategy. The strategy lays out a set of recommendations for the EU to address the various challenges of textile value chains, including environmental sustainability, human rights, governance, labour rights, and gender among others. A commitment was made by the European Commission in its Circular Economy Action Plan to develop a comprehensive EU strategy for textiles. Recommendations include a legal obligation for companies to take responsibility for not only their own activities but their whole supply chain through an EU due diligence law; stricter environmental rules; and ensuring brands and retailers are legally obliged to honour contracts and end the culture of unfair purchasing practices, according to press releases issued by some of the civil society organisations. MEPs Delara Burkhardt, Heidi Hautala, and Helmut Scholz in a joint letter addressed to all MEPs shared their support for the civil society strategy.

Source: Fibre2Fashion

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Medical textiles: scientists spin a good yarn

What if damaged body parts could be repaired with textiles grown and sewn from human cells? Scientists at INSERM are exploring this aspect of regenerative medicine. Natalie Healey speaks to director of research, Nicolas L’Heureux. The power of needlework should never be underestimated. Where would we be without the textile industry providing natural and synthetic fibres to thousands of sectors across the globe? In addition to clothing our bodies, textiles are used to help heal them, from wound dressings to sutures and meshes. Some scientists are now going further, using weaving and knitting techniques to create medical fabrics from biological materials such as human cells. Nicolas L’Heureux, director of research at INSERM, the French National Institute of Health and Medical Research is exploring exactly this. He works on repairing damaged blood vessels with biological textiles grown in the laboratory. “Synthetic materials are recognised as not being a normal part of the body,” L’Heureux explains. “Except for hard metals like stainless steel, gold and titanium, most create a very significant scarring response.” He likens it to a splinter. The body recognises the material as foreign and reacts to it by trying to push it out. If it’s not able to eject it, scar tissue will form and inflammation will be triggered. This can lead to redness, pain, swelling and scarring. Some parts of the body are better at dealing with scarring than others. Sometimes a scar can actually be helpful, providing mechanical support to the structure. But in a blood vessel, a scarring response could recreate the same blockage surgeons were aiming to fix in the first place. Grafting and stenting can result in restenosis (where the treated vessel closes off again) over time due to this scarring behaviour. “A scarring response will create a lot of tissue that will clog the inner part of your tube. Then your blood will not flow well anymore,” L’Heureux says. Synthetic grafts work best for large vessels such as the aorta, which is roughly two centimetres in diameter. If there is a little bit of scarring from the graft, the blood will likely still be able to flow normally. But for smaller blood vessels, rejection of synthetic materials can create a real problem.

Collagen sheets

L’Heureux and his team are developing grafts that won’t produce that rejection response. What is more likely to be accepted is a material the body is already familiar with. Researchers cultivate human cells in the laboratory (originally extracted from a skin biopsy), where various chemicals are used to influence them to form sheets of collagen. These sheets are then cut into thin threads of yarn-like material. “The material we collect in sheets is the extracellular matrix outside the cell. That’s what we get the cells to overproduce in the lab,” L’Heureux reveals. “This is the material that they lay down in the right conditions at the bottom of the plastic containers where we grow the cells.” Because the makeup of collagen doesn’t vary from person to person, it is hoped that each patient wouldn’t need vessels produced from their own cells. Once the yarn is ready, it’s time to get sewing. By weaving, braiding or knitting, the team can form tubes of collagen to replace the synthetic structures that are traditionally used in cardiovascular surgery. “We tend to use weaving because it makes a really nice tight wall which is really important if you’re making a blood vessel,” says L’Heureux. This is weaving as you’ve never seen it before, but it still requires a loom. The custom-made device has to be tiny so vessels of five millimetres in diameter can be produced. It’s made out of stainless steel and plastic so it can be cleaned easily. And it is circular in shape to produce tubes from the collagen yarn.

Testing the textiles

How well these grafts will be tolerated by the body still needs to be tested though. The next step of the research is to see how the vessels perform in animals. Using genetically modified rodent models that don’t reject human tissue, the team will be able to see if the biological textiles adapt well to the body environment. But one problem with rats and mice is the small size of their blood vessels. So, the researchers are also working on producing similar medical textiles using sheep cells. Once animal model results prove promising, it’ll be time to think about transplanting the grafts into humans. “The sheep is about the same size as a human in terms of the blood vessels, so we’ll be able to try surgeries that we would do in humans with vessels that would be the same size and using all the same instruments. So, it’s much more representative,” L’Heureux explains. There are other research groups working on similar projects. The University of Minnesota Medical School recently grew human-derived blood vessels in a pig. While US company Humacyte is also trying to produce extracellular matrices for vascular and non-vascular applications. In the future, L’Heureux hopes to collaborate with groups like these to find the best way of producing biological textiles at scale. “When we bring this material that is completely logical, completely human and integrates well inside the body to patients, we’ll have a solution that we’ve never had before in medicine.”

Source: Medical Devise

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