The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 19 OCT, 2020

NATIONAL

INTERNATIONAL

 

Go 'swadeshi', end imports and increase exports, says Nitin Gadkari

Union minister Nitin Gadkari on Sunday made a pitch for 'swadeshi' (indigenous) production and said imports need to end, while exports should increase. He also suggested setting up of an "import substitute and exportoriented department" with separate funds earmarked for it. The senior BJP leader said the department should work on the principles of 'swadeshi' and 'swavalamban' (self- reliance) and guide the economy. He was speaking at a virtual programme organised by the Swadeshi Jagran Manch, in which rms that did not retrench workers during the coronavirus-induced lockdown were felicitated. "I feel imports need to end and exports should be increased through the promotion of import-substitute goods," he said. Gadkari said an alternative fuel economy worth Rs 5 lakh crore could be created through rural participation. He went on to inform the gathering that turnover of village industries had increased from Rs 80,000 crore last year to Rs 1 lakh crore and the target was to take it further to Rs 5 lakh crore soon. The country was getting self-reliant in defence, automobiles and several other sectors and would become the world's largest e-vehicle manufacturing hub in the next ve years with products ranging from two-wheelers, three-wheelers and cars to construction equipment. RSS functionary Manmohan Vaidya also spoke at the event and laid stress on "aatmanirbharta" (self-reliance) and swadeshi.

Source: Economic Times

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Sunset date for increases in import tariffs

“Increase in import tariffs to provide some protection to local industry will now come with a sunset date,” the official mentioned. “The idea is to ensure that the local industry makes sincere attempts to become competitive instead of just relying on protection from higher import tariffs.”

New Delhi: India is more likely to introduce a sundown date for larger import tariffs imposed on items comparable to cell phones and televisions to spice up native manufacturing. Policymakers are of the view that an finish date to tariff measures introduced to reinforce the Make in India programme is important. This will push native manufacturing to turn into globally aggressive throughout the given concession interval, a prime authorities official conscious of…

Source: Economic Times

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Centre may have no stake in public sector banks after privatisation

The government is veering towards the view that exiting a public sector bank should be total when it is privatised. To make the sale attractive, however, the government wants the Reserve Bank of India (RBI) to relax the rules on ownership in private-sector banks. A top government source said there had been intense discussion among the Prime Minister’s Office (PMO), the finance ministry, and the RBI on what level of stake should be retained. There have also been talks with specialists outside the government this financial year, particularly since July, when the PMO had asked the .

Source: Business Standard

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Single-window clearance expected to start in April with 20 states on board

The government’s proposal to launch a single-window clearance is seeing traction among foreign investors even before the scheme’s launch. At least half a dozen foreign investors are said to be in talks with the government for this mechanism. These investors will get to identify lands or sites for setting up manufacturing units across 20 states. Government officials say the scheme will become operational from early 2021-22. “Single-window clearance will begin from March-end or April first week next year. We have been negotiating with states on industrial ...

Source: Business Standard

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Disinvestment: Plans afoot to raise Rs 1 lakh crore in FY21

Despite the market conditions not being conducive, the Centre will strive to garner at least Rs 1 lakh crore from disinvestment this year. Yet, this represents a big slippage from the all-time high Budget target of Rs 2.1 lakh crore.
Strategic sales in fuel retailer-refiner BPCL, Container Corporation (ConCor) and IDBI Bank would be completed in the year, an official source said. Recently, while the Centre has announced its decision to not alter the enhanced borrowing limit of Rs 12 lakh crore when it unveiled the H2 calendar, economic affairs secretary Tarun Bajaj said it factored in potential stimulus requirement and lower-than-expected disinvestment revenues. FE has learnt that a slippage of over Rs 1 lakh crore in disinvestment revenue has been factored in. Disinvestment: Plans afoot to raise Rs 1 lakh crore in FY21 While bulk of the shortfall will be due to a likely deferment of the mega IPO of Life Insurance Corporation (a 10% stake sale could have fetched around Rs 80,000 crore), the Air India privatisation won’t yield any revenue to the Centre. While the government hasn’t officially put off the LIC listing, the pace of process clearly indicates the receipts won’t come in early enough to be budgeted for the current year. With half of the year already over, the Centre is now making a determined effort to sell its 52.98% stake in BPCL, which was worth Rs 39,069 crore at last Friday’s closing price. The process is on despite the BPCL stock losing 35% in value from about Rs 60,000 crore in November 2019, around the time the stake sale proposal was approved by the Union Cabinet. However, the actual receipts will depend on valuation and consideration of a premium (ONGC had bought the Centre’s stake in HPCL in FY18 at a premium of 14% to the stock’s price). The Centre recently extended the expression of interest submission deadline from potential bidders for BPCL to November 16. After a failed attempt a few years back, the government will shortly invite bids for its 47.1% stake in IDBI Bank worth about Rs 18,995 crore at Friday’s closing price of the stock on the BSE. LIC is the promoter of the bad loan-laden lender with a 51% stake after it acquired the majority stake in January 2019. After clarity on land leasing policy from Indian Railways that has to be approved by Cabinet, the EoI for 30.8% stake sale in ConCor will be invited soon. Despite tight race against time, the transaction could be completed by March 31 by running multiple processes simultaneously. The market value of the Centre’s 30.8% stake on offer (out of 54.8%) in ConCor was Rs 6,957 crore on October 16. Similarly, bids will shortly be invited for the Centre’s 63.75% in Shipping Corporation (Rs 1,547 crore at current market prices) and 54.03% in BEML (Rs 1,353 crore). Among others, strategic sales of Pawan Hans and Central Electronics are also being fast-tracked. The Centre mobilised a record Rs 1 lakh crore in FY18 and Rs 85,000 crore in FY19 from disinvestment of its stake in various companies including a few PSU-to-PSU acquisitions (ONGC-HPCL in FY18 and PFC-REC in FY19). However, stake sale receipts stood at only Rs 50,300 crore or 23% lower than the FY20RE of Rs 65,000 crore. “So PSU-to-PSU acquisitions can’t also be ruled out in some of the proposed strategic stake sales this fiscal also,” an official said. So far in the current financial year, the Centre has garnered only Rs 6,389 crore or 3% of this fiscal’s disinvestment target. Among other disinvestment routes, the Centre could sell about 15% stake in IRCTC via an offer for sale (OFS) to raise about Rs 3,200 crore at current prices. The Centre plans to sell 10% stake in Mishra Dhatu Nigam (MIDHANI) via OFS that could fetch it about Rs 400 crore. The listing of Indian Railway Finance Corporation and RailTel may fetch about Rs 3,000-4,000 crore and Rs 900-1,000 crore, respectively. A few CPSEs, including Coal India and Kudremukh Iron Ore Company, are expected to buy back shares from the government and other shareholders by March 31, 2021. Given the fresh uncertainties caused by Covid-19, an inter-ministerial group (IMG) on Air India (including Air India Express) privatisation has favoured allowing bids for the loss-making carrier on the basis of its enterprise value, sans any pre-determined level of ‘sustainable debt’ for the potential bidder to reckon with. Under the current plan, the bidder is to take over the airline’s estimated residual debt of Rs 23,286 crore out of its Rs 60,000 crore debt. So on net basis, there won’t be any cash flow to the Centre from this deal, which will at best reduce the debt and annual loss burden on the exchequer. With net tax revenue declining by about 30% on year and non-debt capital receipts by 63.5% in April-August, analysts see the Centre’s fiscal deficit more than doubling from the budgeted level of Rs 8 lakh crore for FY21. So maximising non-debt capital receipts will be of immense help for the Centre to keep spending momentum to boot economic activity amid likely 10-15% contraction in real GDP in FY21.

Source: Financial Express

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Raise GST borrowing to Rs 1.83 trillion, Kerala CM writes to FM Sitharaman

The Opposition-ruled states are in a huddle over the Centre’s revised proposal to meet goods and services tax (GST) compensation shortfall. While Jharkhand has rejected the Centre’s proposal of borrowing partial GST shortfall of Rs 1.1 trillion and lending to states, Kerala Chief Minister Pinarayi Vijayan has written to Union Finance Minister Nirmala Sitharaman urging that the Centre should instead borrow Rs 1.83 trillion. More states are expected to write to Sitharaman on Monday. “I take this opportunity to request for enhancing the limit under the special window facility to Rs 1.83 trillion, from the suggested Rs 1.1 trillion,” Vijayan said in his letter. He requested Sitharaman to hold further discussions on the matter to be resolved in an “amicable manner”. While the total compensation due to the states is Rs 2.35 trillion, states would have got Rs 1.83 trillion in the normal course as compensation for 10 months is paid in a fiscal year and that for the past two months is rolled over the early part of next fiscal year. According to Vijayan’s letter, states will have to wait for another two years to get the balance compensation of Rs 73,000 crore, according to the option given by the Centre. “The additional 0.5 per cent borrowing without conditions, though welcome, cannot be treated as a facility in lieu of the unpaid part of the compensation as the principal and the interest of the borrowing has to be repaid by the states,” he said. If the additional borrowing facility is to be considered as an alternative to the payment of compensation, the Centre needs to assure that the interest payment to service this will be given to the states from the cess fund or through any other source based on the recommendation of the Council, Vijayan said. The state, however, decided to not move the Supreme Court as “the Centre has settled the issue of who will borrow”. “But a few pricklier issues remain such as how much the Centre should borrow. Rather than Rs 1.1 trillion, it should borrow the entire shortfall and give to states as it will not impact Centre’s fiscal deficit,” Kerala Finance Minister Thomas Isaac said. T S Singh Deo, who represents Chhattisgarh in the GST Council, said all the like-minded states would talk before taking a final call on the issue. “The issue is that the Centre has only taken care of six months GST compensation dues for this year. It should graciously accept that whatever is the shortfall this year, it will compensate states through borrowing. The shortfall estimation cannot be done in an ad hoc manner, first assuming a growth rate of 10 per cent, then 7 per cent.” Meanwhile, Jharkhand has rejected the Centre’s proposal, arguing against borrowing by states to make up for the GST shortfall beyond Rs 1.1 trillion this year. This came after the Union power ministry auto-debited Rs 1,417.50 crore as first instalment from the state’s consolidated account maintained by the Reserve Bank of India to pay dues to central power generator Damodar Valley Corporation. According to Jharkhand, the Centre owes it around Rs 3,300 crore as GST dues. West Bengal is studying the fine print of the latest offer by the Centre before deciding on the issue. Puducherry Chief Minister V Narayanasamy said that while the aggressive stance of the dissenting states has mellowed after the Centre agreed to borrow, they cannot accept the Centre’s offer of borrowing Rs 1.10 trillion in the current form. “We will not accept Option 1. The Centre should borrow the entire Rs 2.35 trillion and give to states and Union Territories,” he said. However, he clarified that the state was yet to take a final call on the issue. Former Union finance minister and Congress leader P Chidambaram said the states are asking the Centre that the terms it has given for Rs 1.10 trillion should also be given for Rs 1.06 trillion. “From what they (the Congress-ruled states) told me and what Isaac tweeted it appears to me they will decide to ask her (Sitharaman) that the first part (Rs 1.10 trillion borrowing by the Centre) is okay, but what about the second part (Rs 1.06 trillion),” he said. The Union finance ministry on Thursday changed stance and said the entire Rs 1.1 trillion estimated shortfall arising on account of GST implementation (excluding Covid-19 losses) will be borrowed by the Centre in appropriate tranches and be passed on to the states as a back-to-back loan in lieu of GST Compensation Cess releases.

Source: Business Standard

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Major revamp on the cards at State textile corpn. unit in Kannur

For many traditional handloom weaving cooperatives in the State, the woven fabric has to be transported to Tamil Nadu to get it dyed or printed. This has also been the case with the State government’s free handloom uniforms for students till class 7, which had to be transported to and back from the neighbouring State for dyeing purposes. Now, a major revamp is about to begin at the State Textile Corporation’s facility at the Textile Park run by the Kerala Industrial Infrastructure Development Corporation (KINFRA) in Nadukani in Kannur, after which all of this work can be done within the State, with consequent savings in costs and time. “Not all of the processes required on the fabric could be done as the current facilities are inadequate. So, rather than doing it here, they used to transport it to Tamil Nadu. The facility has thus remained underutilised. The new processing unit will address all these issues, and bleaching, colouring and printing of yarns as well as clothes can be done here. In addition to uniforms, printing of bedsheets, sarees and curtains can be done. Already, all the supporting infrastructure, including an effluent treatment plant, RO plant and access to clean water, is available,” says N. Sasidharan Nair, Chairman, Public Sector Restructuring and Internal Audit Board (RIAB).

 

Modernisation

The revamping work on the entire facility is set to begin soon and is expected to be completed within 6 to 8 months. He says that the textile sector in the State is set for a major change with the modernisation of many spinning mills. The cooperative spinning mill in Kollam which was upgraded with new machinery will be opened soon. The Alappuzha Cooperative Spinning Mill has also had a major revamp, while similar work is ongoing at the cooperative mill in Thrissur.

Source: Times of India

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Gorakhpur to be developed into textile hub: CM

Chief Minister Yogi Adityanath on Sunday said that Gorakhpur will be developed into a “textile hub” by focusing on the ready-made garment industry in eastern Uttar Pradesh. Speaking with representatives of Chamber of Industries in Gorakhpur, the Chief Minister said that the move would generate employment for a large number of migrant workers who returned to the state during the Covid-19 lockdown earlier this year. According to state government’s estimates, about 12,000 migrant workers associated with the textile industry returned to Gorakhpur and adjoining districts of east UP during the lockdown. The Chief Minister also said that his government is planning to establish a “big training centre” in Gorakhpur. He also assured the representatives of Gorakhpur Industrial Development Authority (GIDA) that he would inaugurate Udyog Bhawan, which is currently being constructed in Gorakhpur. The Chief Minister also asked GIDA to insure that big industrialists show interest in investment in the GIDA area and asked them to increase its land bank for setting up of industrial units.

Source: Indian Express

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Goa to offer red-carpet welcome to US firms investing through FDI route, says CM Sawant

The state government earlier this week had approved the Goa Tourism Policy 2020. With a strategic location, access to seas, rail connectivity, and upcoming hubs for industry and marine facilities, Goa is ready to bring export-led growth to India, according to Pramod Sawant, the state’s chief minister. Speaking at the inauguration of the Goa chapter of the Indo-American Chamber of Commerce, Sawat invited US companies to invest in Goa via 100 per cent FDI route. He said that his government would focus on setting up education hubs for knowledge-based industries, entertainment hubs, IT campuses, and startup promotion policies. “We are also enabling a red carpet and single window clearance for companies who would come in using the 100% FDI route.” The minister also expected investment in the coastal state to come from IT-enabled companies, manufacturing, and ancillary units apart from “more manufacturing tie-ups” with the upcoming green-filled electronic manufacturing cluster” in areas like surveillance electronics, defense, consumer electronics, and toys. The state government earlier this week had approved the Goa Tourism Policy 2020 to make it the “most preferred destination” for high-spending tourists in 2024. The policy intends to further promote Goa tourism, create more employment opportunities, and tourism infrastructure. Naushad Panjwani, Regional President of the West India Council, IACC hoped for the state to become the hub for not just tourism but also for the industry ahead. “If it works on the ease of traveling, alongside the ease of doing business, it will become a hub for both hospitality and industry in the nation.” Said Panjwani. According to the latest statistics, Covid cases in Goa increased to 40,400 with 3,834 active cases and 531 deaths. 36,035 people have been recovered so far. The state government is yet to decide on reopening schools only after consulting teachers and other stakeholders, PTI had reported quoting Sawant. The teachers’ associations have opposed the same fearing the challenge in ensuring social distancing in schools. However, the minister had asked the education secretary and director of education to consulting stakeholders before taking the decision.

Source: Financial Express

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Global Textile Raw Material Price 18-10-2020

Item

Price

Unit

Fluctuation

Date

PSF

857.27

USD/Ton

0.88%

18-10-2020

VSF

1535.63

USD/Ton

0.49%

18-10-2020

ASF

1825.16

USD/Ton

0%

18-10-2020

Polyester    POY

812.54

USD/Ton

0%

18-10-2020

Nylon    FDY

1997.81

USD/Ton

0%

18-10-2020

40D    Spandex

4547.25

USD/Ton

0.99%

18-10-2020

Nylon    POY

5367.24

USD/Ton

0%

18-10-2020

Acrylic    Top 3D

1043.63

USD/Ton

0%

18-10-2020

Polyester    FDY

1893.44

USD/Ton

0.79%

18-10-2020

Nylon    DTY

2012.72

USD/Ton

0%

18-10-2020

Viscose    Long Filament

969.09

USD/Ton

0%

18-10-2020

Polyester    DTY

2303.44

USD/Ton

0.65%

18-10-2020

30S    Spun Rayon Yarn

2087.26

USD/Ton

2.94%

18-10-2020

32S    Polyester Yarn

1595.26

USD/Ton

0%

18-10-2020

45S    T/C Yarn

2445.08

USD/Ton

0%

18-10-2020

40S    Rayon Yarn

2221.44

USD/Ton

1.36%

18-10-2020

T/R    Yarn 65/35 32S

2117.08

USD/Ton

2.90%

18-10-2020

45S    Polyester Yarn

1997.81

USD/Ton

1.52%

18-10-2020

T/C    Yarn 65/35 32S

1729.44

USD/Ton

4.50%

18-10-2020

10S    Denim Fabric

1.19

USD/Meter

0%

18-10-2020

32S    Twill Fabric

0.69

USD/Meter

0%

18-10-2020

40S    Combed Poplin

0.99

USD/Meter

0%

18-10-2020

30S    Rayon Fabric

0.49

USD/Meter

0%

18-10-2020

45S    T/C Fabric

0.67

USD/Meter

0%

18-10-2020

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14909 USD dtd. 18/10/2020). 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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China passes new law restricting sensitive exports

China has passed a new law restricting sensitive exports to protect national security, allowing Beijing to reciprocate against the US as tensions mount between the sides over trade and technology. China has passed a new law restricting sensitive exports to protect national security, allowing Beijing to reciprocate against the US as tensions mount between the sides over trade and technology. The law, which will apply to all companies in China, was passed on Saturday by the National People’s Congress Standing Committee and will take effect on December 1. Under the law, China can take reciprocal measures toward countries or regions that abuse export controls and threaten its national security and interests. Export controls under the law will apply to civilian, military and nuclear products, as well as goods, technologies and services related to national security. A list of controlled items will be published in a timely manner in conjunction with relevant departments, according to the law. The new law allows Beijing to retaliate against the US, which in recent months has attempted to block Chinese technology firms such as telecommunications gear supplier Huawei, Bytedance’s TikTok app and Tencent’s messaging app WeChat on grounds of posing a national security threat, including the data they may possess from operating in the country. Companies and individuals who endanger national security by breaching the new export control law, including those outside of China, could face criminal charges. Violations of the law, such as exporting items without a permit, could result in fines of 5 million yuan ($746,500), or up to 20 times the business value of the illegal transaction. The new law adds to the growing uncertainty of Bytedance’s deal to sell its video app TikTok to US firm Oracle Corp. In August, China added technologies including voice recognition, text analysis and content recommendation to its list of regulated exports. President Donald Trump had earlier ordered Bytedance to sell its US operations of TikTok to an American firm or face a block in the country. The new export control laws adds to China’s growing regulatory toolkit that allows it to take action against countries such as the US.

Source: Financial Express

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China’s economy accelerates as virus recovery gains strength

China’s economic growth accelerated to 4.9 per cent over a year earlier in the latest quarter as a shaky recovery from the coronavirus pandemic gathered strength. Figures announced Monday for the three months ending in September were in line with expectations after the ruling Communist Party declared the outbreak under control in March and began reopening factories, shops and offices. Factory output rose, boosted by foreign demand for Chinese-made masks and other medical supplies. Retail sales, which had lagged behind the manufacturing rebound, finally returned to pre-virus levels. The economy continued the steady recovery, the National Bureau of Statistics said in a report. However, it warned, the international environment is still complicated and severe. It said China still faces ‘great pressure’ to prevent a resurgence of the virus. China, where the pandemic began in December, became the first major economy to return to growth with a 3.2 per cent expansion in the quarter ending in June. Output contracted 6.8 per cent in the first quarter after Beijing shut down the world’s second-largest economy. Authorities have lifted curbs on travel and business but visitors to government and other public buildings still are checked for the virus’s telltale fever. Travelers arriving from abroad must be quarantined for two weeks. Last week, more than 10 million people were tested for the virus in the eastern port of Qingdao after 12 cases were found there. That broke a streak of almost two months with no virus transmissions reported within China.Industrial production rose 5.8 per cent over the same quarter last year, the National Bureau of Statistics reported, a marked improvement over the first half’s 1.3 per cent contraction. Chinese exporters have benefited from the economy’s relatively early reopening and global demand for masks and other medical supplies. They are taking market share from foreign competitors that still are hampered by anti-virus controls. Retail sales returned to positive territory in the latest quarter, rising 0.9 per cent over a year earlier. That was up from a 7.2 per cent contraction in the first two quarters as consumers, already anxious about a slowing economy and a tariff war with Washington, put off buying. In a sign demand is accelerating, sales in September rose 3.3 per cent. China has reported 4,634 coronavirus deaths and 85,685 confirmed cases, as well as three suspected cases. Economists say China is likely to recover faster than some other major economies due to the ruling party’s decision to impose the most intensive anti-disease measures in history. Those temporarily cut off most access to cities with a total of 60 million people. Private sector analysts say as much as 30 per cent of the urban workforce, or as many as 130 million people, may have lost their jobs at least temporarily. They say as many as 25 million jobs might be lost for good this year. The ruling party promised in May to spend USD 280 billion on meeting goals including creating 9 million new jobs. But it has avoided joining the United States and Japan in rolling out stimulus packages of USD 1 trillion or more due to concern about adding to already high Chinese debt.

Source: Financial Express

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'The Corona crisis should be seen as a wake-up call for fundamental changes in the industry' : Bangladesh

More than ever before, the textile sector is facing enormous challenges, both in terms of trade and industry. Corona acts as an accelerator on issues such as sustainability, fair working conditions and global supply chains. SI talked with Oeko-Tex general secretary Georg Dieners about whether Corona can really change the industry in the long term, why the demand for certification increased so much and whether people's consumer behavior will actually change because of Corona.Can one already assume that Corona will change the textile industry in the long term?

The Corona pandemic has shown where action is needed in the textile industry. It is probably the biggest challenge of the past decades and has confronted the textile industry with major global challenges. It has become clear that the time has come to react now in order to secure the livelihood of all people along the textile production chains. Therefore, companies must now rethink, assume responsibility and operate sustainably in the long term in order to remain competitive and not lose their own customers.

Will Corona change people's consumption and purchasing behavior?

The Corona pandemic has once again massively advanced the social trend towards greater sustainability. Consumers are increasingly questioning the conditions under which products have been manufactured and are demanding more transparency and information. They want to buy articles from brands and manufacturers that are trustworthy.  Consumers want to take responsibility and make ethical decisions. Therefore, they naturally also call on manufacturers and companies to position themselves sustainably - with this power, consumers can also drive long-term changes in the industry.

Why has the demand for certification increased so much right now?

Consumers are making manufacturers and retailers more and more aware of their responsibility to act transparently and sustainably. They increasingly inform themselves about where raw materials are obtained and how a product is manufactured. This information provides security, trust and reliability - especially in times of crisis, these are important factors in making good purchasing decisions. Certifications can be seen here as mediators of precisely this required security and orientation. Thanks to environmental and social seals, consumers can clearly see who and what is behind a product, while manufacturers and retailers can make their position more transparent thanks to certification.

What can companies learn from Corona in terms of sustainability?

The Corona pandemic should lead to a critical self-reflection of companies - on the one hand about what they have achieved so far, on the other hand about a possible reorientation in production or purchasing policy.

How should companies position themselves now? What should they invest in when it comes to sustainability?

The Corona crisis should be seen as a wake-up call for fundamental changes in the industry. A radical rethink must now take place, the behavior of many stakeholders must change.Brands and retailers should therefore now show solidarity, assume responsibility and, with creativity and courage, take new, sustainable paths that benefit all those involved.  Transparency along the textile supply chains is therefore increasingly required. This is also demanded by end consumers, who increasingly expect companies to act ecologically and socially. So in order to make production and supply chains stable and fair in the future, too, existing production patterns must be reconsidered and changed. Digitization is also an important key to positioning a company transparently. A digital textile cycle, for example, can make a lasting contribution to conserving resources. The CO2 footprint as a critical indicator when considering the supply chain is becoming increasingly essential, as the footwear and apparel industry is responsible for over 10% of global greenhouse gas emissions. Companies are therefore called upon to take action in this area as well in order to manage unrestrained growth and reduce their own ecological footprint in the long term.

Source: SportsWear International

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Pakistan’s textile exports rise to $3.5 billion in first quarter

Pakistan’s exports of textile commodities witnessed an increase of 2.92 per cent during the first quarter (Q1) of the current fiscal year as compared to the corresponding period of last year. The textile exports from the country were recorded at $3469.585 million ($ 3.5 billion) in July-September (2020-21) against the exports of $3371.376 million ($3.4 billion) in July-September (2019-20), showing a growth of 2.92 per cent, according to latest data of Pakistan Bureau of Statistics (PBS). The textile commodities that contributed in positive trade growth included knitwear, exports of which increased from $779.293 million last year to $860.758 million during the current year, showing growth of 10.46 per cent. Likewise, exports of bedwear increased by 8.40 per cent by growing from $601.024 to $651.487 while the exports of tents, canvas and tarplin grew by 78.71 per cent, from $15.771 to $28.184, the PBS data revealed. The readymade garments exports were recorded at $701.442 million during the current year against the exports of $666.157 million last year, showing an increase of 5.24 per cent while exports of madeup articles (excluding towels and bead-wear) increased by 16.58 per cent from $148.050 million to $172.604 million. The commodities that witnessed negative growth in traded included raw cotton, exports of which declined by 97.50 per cent, from $10.826 million to $0.271 million while the exports of cotton yarn decreased by 42.65 per cent, from $297.237 million to $170.475 million. Exports of cotton cloth also decreased by 8.49 per cent, from $499.390 million to $457.060, yarn (other than cotton yarn) by 22.77 per cent, from $7.230 million to $0.931 million, art silk and synthetic textile by 2.93 per cent from $77.894 million to $75.615 million whereas the exports of cotton (carded or combed) witnessed 100 per cent decline during the period under review. On year-on-year basis, the textile exports increased by 11.30 per cent during the month of September 2020 as compared to the same month of last year. The exports during September 2020 were recorded at 1189.739 million against the exports of $1068.906 million. On month-on-month basis, the exports from the country increased by 18.09 per cent during September 2020 when compared to the exports of $1007.509 million in August 2020. The country’s overall merchandise exports registered negative growth of 0.94 per cent, by going down from $5.510 billion during the first quarter of last year to $5.458 billion during the current year. On the other hand, the imports decreased by 0.56 per cent, from $11.199 billion last year to $11.262 billion during the current year, the PBS data revealed. Meanwhile, the country’s trade deficit soared to $5.8 billion in the first quarter of the current fiscal year, according to data shared by the State Bank of Pakistan (SBP). The central bank said foreign direct investment (FDI) declined by 24 per cent to $415.7 million from July to September as compared to last year’s corresponding period.The foreign investment was recorded at $189 million in September 2020. The power sector received foreign direct investment (FDI) worth $113.3 million in the first quarter of the fiscal year 2020-21 while financial business $102.5 million. Earlier, on October 15, the State Bank of Pakistan (SBP) had announced that the foreign reserves in the country witnessed a decline of $356 million in the week ending on October  9.The total liquid foreign reserves held by the country currently stood at $19,015.5 million on October 9.Giving a break-up of the foreign reserves, the central bank said that it currently holds the reserves of up to $11,798.4 million as compared to the $7,217.1 million foreign exchange (forex) reserves held by the commercial banks. Weekly inflation for the combined group during the period ended on October 15 increased by 0.45 per cent to 9.20 per cent year-on-year basis due to rising prices of essential food items, according to the Pakistan Bureau of Statistics (PBS). The Sensitive Price Index (SPI) is calculated on the basis of the prices of 51 essential items collected from 50 markets in 17 cities of the country. According to data, the increase was reported due to a rise of one per cent or more in prices of essential commodities, including chicken, up 15.35 per cent; eggs 5.84 per cent, tomatoes 3.45 per cent and sugar 2.14 per cent. On the other hand, a decrease was witnessed in the prices of bananas, down 2.49 per cent, onions 2.30 per cent, potatoes 1.75 per cent, moong pulse 0.64 per cent and gur 0.21 per cent.

Source : Gulf Today

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