The South Indian Hosiery Manufacturer Association has called upon the Centre to ban the export of yarn and fabric and bring yarn under the Essential Commodities Act.
Talking to IANS, association President C. Easwaran said: "We demand a total ban on the export of yarn and fabric from our country and to bring them under the Essential Commodities Act, otherwise the Tiruppur garment industry will turn into a memory."
The Tiruppur exporters forum had called for a one-day strike in the garment industry on Monday against the hike in yarn prices and the non-availability of raw materials. The strike was supported by 30 industrial associations of Tiruppur and eight trade unions.
Tiruppur Exporters Association President Raja M. Shanmugham told IANS that the strike was to highlight the plight of the industry to the authorities. "The yarn prices are at an all-time high and the raw material is not delivered on time."
"The high yarn prices coupled with non-delivery of the raw material on time is affecting our garment industry and there is nothing which we can do other than shutting down the companies."
The representatives of the industry and the trade unions also informed the District Collector of the dire situation the industry is facing.
Major international brands are outsourcing their work to the Tiruppur garment industry and the non-delivery of the finished materials in time will lead to loss of major orders, thus affecting the garment industry.
Shanmugham said: "There are more than 10,000 workers and allied staff who are employed at the Tiruppur garment industry. If there is no proper intervention in the price of yarn, the industry will be shut down and these workers will lose their jobs."
The price of yarns has gone up since December 2020 and generally the price stabilises after a couple of days, but this time the price has not come down, he added.
Source: The Business Standard
A key aspect of MSME (micro, small and medium enterprises) growth is improved market access. This, in turn, is dependent on market information, which is severely limited due to low levels of awareness. Criticality of the information challenge is evident from a high proportion of large-sized firms (42%) reported having faced difficulty in accessing information and benefits under Covid-19-related programmes for MSMEs announced by their corresponding governments.
In the survey by the International Trade Centre, the proportion of medium, small and micro firms reporting difficultly was even higher at 51%, 60% and 60%, respectively. In light of these responses, it may be normal to expect even more severe constraints while dealing with international partners. As a result, their participation in trade remains disproportionately low, also contributing to underutilisation of the existing free trade agreements.
Typically, MSMEs are marked with low economies of operations reducing their profit per unit, leaving little room to accommodate expenses on developing a networking expertise. In the absence of an internal expertise and lack of resources to pay for consultancy, they often face issues while venturing into new markets. Only a fraction of SMEs trade internationally, of which nearly half find it challenging to sell in foreign countries, according to the Future of Business Survey. ‘Lack of business contacts’ and ‘lack of market information’ have been cited as the two most important factors.
The knowledge deficit on the relevant standards is further widened due to unawareness of the ‘ethical trade imperatives’ that impose additional compliance burden through requirements such as those related to (not indulging in) child labour, observing work hours, health and safety of workers, wages and environment. For instance, convergence on labour standards is a pre-condition to resuming the negotiation talks on the India-EU Board-based Investment and Trade Agreement.
Even though such information is available online from government portals and accessible through web-navigation; the language barriers, and the legal and technical nature of the text lowers usefulness and effectiveness. These matters are complex and often limited/absent knowledge keeps MSMEs at arm’s length from participating in trade.
Another potential problem, particularly in pandemic-like situations, is the need for demand revival through real-time information on global demand patterns. This is particularly important for SMEs, as they are likely to be left behind with low levels of digitisation.
In other countries, foreign trade participation of SMEs has been improved and strengthened through focused interventions. Within Europe, both small and large economies recognise the need to internationalise SMEs while being internationally competitive. Public instruments have been designed for their expansive export penetrations. Illustratively, in Denmark, a small-size economy, public instruments are used for export coaching.
The VITUS programme is among the best practices. It supports select SMEs with potential and willingness to acquire export order in a target market within a stipulated time of 12 months. In a large economy like Germany, market intelligence and location marketing are important. The market network is developed with support from German foreign missions abroad. In Spain, which has traditional affinity with other regions, newer markets are approached under the IMPACT+ programme and existing markets are strengthened under the NEXT programme.
Often, customised expertise is provided for a fee to ensure that exporter stays committed to export in the future. Turning to the East, SMEs in South Korea have been strengthened through global market information supply, marketing, market research, strategy consulting and global brand development. An export strategy implemented through public instruments is common in all cases.
Likewise, in India, expanding the subject matter of the forthcoming national Foreign Trade Policy (FTP) to include an information programme will go a long way by providing exposure to non-trading SMEs through a consultative mechanism for their trade-related queries. The format can vary from organising periodic sensitisation workshops, to responding to queries in an online platform, or organising exhibitions. Interactive sessions will help in boosting confidence.
To tie it up, information deficit is a fork in the road for internationalisation of Indian MSMEs. A market intelligence and network programme integrated into the FTP will widen the markets for aspiring SMEs while also strengthening existing exporters. Such a policy is also acquiescent to our WTO obligations due to its non-commercial nature.
Source: The Financial Express
There is no proposal of faceless scrutiny assessment of GST returns as the Goods and Services Tax rule already provide for electronic filing and assessment, Minister of State for Finance Anurag Singh Thakur said on Tuesday.
Income tax assessments are being done in a faceless manner except in certain conditions and till March 10, a total of 82,072 assessment cases have been completed in a faceless manner, he added.
To a query in the Rajya Sabha on whether the government is considering scrutiny of GST assessments and some stages of investigations by SFIO in a faceless mode, he said, "No such proposal for scrutiny of GST assessment in a faceless mode is under consideration of the Government presently as the GST laws and rules made thereunder already provide for electronic filing and assessment of returns on the common portal. With regard to the Serious Fraud Investigation Office, the information is also nil".
The minister said faceless assessments have been initiated to impart greater efficiency, transparency and accountability by eliminating the interface between the Assessing Officer and assessee in the course of proceedings to the extent technologically feasible, optimising utilisation of the resources through economies of scale and functional specialisation and introducing a team-based assessment with dynamic jurisdiction.
"An independent study to ascertain assessees' experiences in a faceless manner is being conducted by National Council of Applied Economic Research (NCAER). Department of Economic Affairs (DEA), Central Board of Direct Taxes (CBDT) have a tripartite arrangement with NCAER for conducting this independent assessment of Faceless Assessment Scheme of the CBDT," Thakur said.
Source: The Business Standard
Strong voices are being raised across the country against high price of yarn and other raw materials for garment manufacturing. While Tirupur saw a day-long strike on this issue yesterday, Jaipur is also now demanding strongly to control the prices of raw materials.
In a press release, Garment Exporters Association of Rajasthan (GEAR), the leading association of Rajasthan’s garment exporters,has said that the industry has been facing difficult times, primarily due to increase in raw material prices.
The trade body has urged the Government to kindly take up this matter seriously and curb the exports of raw cotton. If the prices stand at where they are, a lot of factories will permanently shut down, and thousands will lose jobs.
Not only cotton, yarn prices of viscose and polyester base have also seen steep hike. On the other hand, the price of packing materials like poly-bags, corrugated boxes has also been sky rocketing.
Exporters are facing more difficulties as Indian Rupee is getting stronger; India’s products are being uncompetitive in international markets.
Vimal Shah, President, GEAR, told Apparel Resources that the garment and fabric manufacturers resumed production operations quicker than the spinning sector. This resulted in the yarn inventory with the spinning mills drying up, while the cotton prices continued to rise.
He further added that the buyers are unwilling to increase prices, more so due to the price competition posed by other countries like Bangladesh, Sri Lanka, Pakistan and Vietnam.
It is pertinent to mention here that the Jaipur hub does an annual garment manufacturing business of around Rs. 7,000 crore.
Source: Apparel Online
A coalition of more than 200 organizations today announced sweeping demands of apparel brands and retailers for cash relief for suffering garment workers and reform of the industry.
Millions of garment workers have been struggling to feed their families since brands abandoned them last March. Brands and retailers responded to the crisis by refusing to pay their bills and using the decreased demand for clothing to extract even lower prices from suppliers.
Garment workers around the world have faced a widespread loss of jobs and income, forcing many deeper into poverty and hunger. A year into the crisis, many brands have returned to profitability and some have even raked in record level earnings, while workers in their supply chains struggle to survive.
The #PayYourWorkers #RespectLabourRights campaign brings together more than 200 unions and civil society groups from over 40 countries to demand that brands provide immediate relief to garment workers and make enforceable commitments to reform their broken industry.
With the website, the coalition is launching a petition, urging brands and retailers like Amazon, Nike, and Next to live up to their responsibility to contribute funds to sustain workers’ income throughout the pandemic, respect the right to organize and bargain collectively, and make sure workers are never again left penniless if their factory goes bankrupt by signing onto a negotiated severance guarantee fund.
Sophorn Yang, President of the Cambodian Alliance of Trade Unions said: “Workers in Cambodia lost millions of dollars in wages during the pandemic because of brands’ actions. It’s time for brands to recognize the crucial position they hold in garment and footwear supply chains and take responsibility for the wages of workers who make them billions of dollars in profits year after year.”
PayYourWorkers.org – the campaign website launched today – is available in 8 languages. The 200 endorsing organizations include grassroots worker unions like Garment Labor Union in India, major trade union federations, including UNI Global union, and international organizations and networks such as Oxfam and Clean Clothes Campaign.
In a global week of action, trade unions and activists are holding planned socially distanced in-person actions at store fronts and in front of factories in countries around the world this week, along with a digital and social media actions.
Anton Marcus, Joint Secretary of the Free Trade Zones and General Services Employees Union in Sri Lanka calls for broad support for the campaign: “Sri Lankan apparel sector employers haven’t paid their employees’ full wages and bonuses and have withdrawn transport and food support during the first wave in March to May 2020. According to our calculation, garment employees are owed at least USD 24 million only for that period.”
“About 200,000 employees lost their jobs without receiving the compensation they are entitled to. In the meantime, apparel export numbers have hardly gone down. Brands and suppliers must take responsibility and pay back the apparel sector employees what they are owed.”
Next and Nike belong to the “Super Winners” who recovered quickly from the pandemic’s losses and started making profit again in 2020. Amazon did even better and reported a near 200-percent rise in profits, rising to a stunning US$6.3 billion in the first year of the pandemic.
These companies can and must ensure that workers do not pay the price for the pandemic from their poverty wages.
Ineke Zeldenrust of Clean Clothes Campaign says: “We have calculated that it would take just ten cents per t-shirt for fashion brands to make sure garment workers can at least survive the pandemic, and to strengthen unemployment protections for the future.
This is the minimum brands should do on the way to the living wages which must become the standard of a post-pandemic recovery. This proposal is achievable, and brands and retailers who say it is not are putting profits before the well-being of their workers.”
Source: Textile Today
Global exports of carpets and textiles floor coverings are on an upswing since mid 2020. Exports started growing from June ($1,075.94 million) and according to Fibre2Fashion's market analysis tool TexPro, they are further expected to grow by 5-10 per cent following the reopening of fashion retail stores after relaxations in lockdown restrictions
Although, carpets and textiles floor coverings' average monthly exports were at $1,110.22 million in 2020, there was a considerable dip in the months of April and May. The exports fell 48 per cent in April to $543.39 million from $1,044.93 million in the previous month.
China, Turkey, India, Belgium, and Iran are the top five exporters of carpets and textiles floor coverings in the world. Top four countries including China, India, Turkey, and Belgium contributed for approximately 64.00 per cent of the world’s total exports of carpets and textiles floor coverings.
Turkey, China, India, and Belgium accounted for 19.68 per cent, 22.28 per cent, 12.68 per cent and 9.37 per cent of the global exports of carpets and textiles floor coverings, respectively. Out of these countries, China and India are included in the top five economies in the world which can directly impact the supply chain of textiles and apparel industry.
Source: Fibre2Fashion News
The Cabinet approved the closure of Handicrafts and Handlooms Export Corporation of India (HHEC), a government undertaking under the administrative control of the textile ministry.
Employees in the corporation — 59 permanent and six management trainees — will be given an opportunity to avail voluntary retirement scheme, according to norms laid down by the Department of Public Enterprises. The approval will benefit the exchequer in reducing recurring expenditure on salary/wages of a sick central public sector enterprise (CPSE) which is not in operation and earning no income.
The corporation has been continuously incurring losses since 2015-16 and not earning sufficient income to meet its running expenses. There is little scope for its revival, necessitating closure, an official statement said.
Source: The Business Standard
Chinese researchers have integrated the fabrication of display devices with the fabric weaving process, taking wearable technology a step further.
Made of smart electronic fabric, the "display textiles" can function similar to a display through which people can browse information, send and receive messages.
The textiles weave conductive weft and luminescent warp fibers to form micrometer-scale electroluminescent units at the weft–warp contact points.
During scientific polar expeditions or geological explorations, a tap on the soft clothing will display the location information in real time, and mapped navigation can be guided by it.
People with speech difficulties can communicate and express themselves efficiently and conveniently with clothing made of the textiles.
The display textiles are flexible and breathable and withstands repeated machine-washing, making it suitable for practical applications, said Professor Peng Huisheng from Fudan University, who led the research team.
This fabric is expected to promote rapid integration and development of traditional textile manufacturing and Internet of Things, human-computer interaction, big data and artificial intelligence, said Peng.
Source: Ecns.cn
For many years, the fashion industry observed the profound impact of climate change on the world’s environment. Now, as consumer preferences shift toward sustainability, 2021 will be a pivotal year for the fashion industry as emerging technologies lay the foundation for a more sustainable future.
During this crucial time, Florian Heubrandner, Vice President Global Textiles Business at Lenzing, reveals the top three sustainability trends impacting the fashion landscape in 2021.
Consumers continue to seek ways to become better informed and make eco-conscious purchases. As a result, eco-friendly brands are creating products that consumers can feel comfortable in purchasing. In addition, brands are also publishing their environmental credentials and eco-friendly initiatives to help consumers keep them accountable for their progress toward sustainability. Eco-conscious brands are actively driving sustainable changes as compared to some fast fashion and luxury brands who are lagging behind or still distancing themselves from the conversation.
The 2021 Fossil Fashion Report revealed many consumers remain unaware that cheap fibers like polyester are found in over half of all textiles and account for 530 million tonnes of carbon emissions, indicating brands must continue raising awareness, and decreasing their reliance on cheap synthetics.
The rise of fast fashion has correlated with the widespread availability of cut-price fossil-fuel-based fibers like polyester. Polyester is incredibly energy-exhaustive to produce – equating to six times the carbon emissions of cotton, according to the 2021 Fossil Fashion Report.
The report also revealed polyester production alone in 2015 was responsible for over 700 million tons of carbon emissions and efforts to recycle these items remain lacking. Currently, just 1% of clothing is recycled and even when using recycled polyester, raw materials used are often plastic bottles, not textiles.
These are worrying figures; however, the global health crisis has pressed reset on the world’s appetite for fast fashion. Many conscious consumers are opting out of fast fashion in favour of ‘slow fashion’ where fewer clothes are consumed and are expected to last far longer.
An urgent need to rethink the industry’s carbon output has encouraged brands to double down on efforts to innovate, increasing demand for alternatives to synthetics, like sustainable plant-based fibers which provide comfort and durability alongside sustainability guarantees.
These innovations also include the development of ground-breaking circularity-minded processes to reuse water and solvents during production. While some emissions remain unavoidable at present, these innovations will also assist with a largescale push away from impactful production practices in the years to come.
By reducing the environmental impact of garments at the production stage, carbon emissions will be drastically reduced throughout its lifestyle and costly investments in recycling technology can occur in a phased approach that is workable for the entire industry.
The industry’s call to arms
To make a carbon-free future a reality, brands must increase awareness about the environmental burden that fibers like polyester place on the environment. Additionally, brands must urgently implement alternatives to cheap synthetics and further promote and support sustainable production processes. The changes brands make now will pave the way for a brighter future.
The TENCEL™ brand remains committed to sustainability-oriented innovation. With the introduction of next- generation carbon-zero TENCEL™ branded lyocell and modal fibers and Lenzing’s ambitious carbon-zero vision for 2050. This core focus will see new industry leading innovations announced throughout 2021 to support the fashion and textiles industry throughout its journey toward complete sustainability.
Source: Textile World
The ongoing anti-military protest in Myanmar is spiced up by the employees of different categories of professions. Garment workers are not lagging behind the procession. They are playing a vital role against the nondemocratic government by immobilizing the factories and marching as road-hog with strong slogans. They are calling for global fashion brands to stand beside them.
The garment employees are mostly women and are led by women. These female leaders, emerging from different garment worker unions under the shade of the Federation of Garment Workers aim to collapse the military government by shaking its economic base which depends on the garment export of the country’s total export in 31%.
Since the coup, garment worker unions are prominently participating in demonstrations. Most of them are facing deadly attacks during their strikes. They are threatened by the police and get arrested in some cases. Ma Moe Sandar Myint, the leader of one of Myanmar’s largest garment worker unions, says she spends protesting in daylight and hiding at night, leaving her 3 children and family afar. This fighter is responsible for more than 20 marches.
H&M, Inditex, Primark and Bestseller opened up sourcing from Myanmar in recent years. According to the European Chamber of Commerce in Myanmar, garment product export worth $4.59 billion in 2018. Moe Sander Myint said, “Every Factory is in a different situation now, but all need international brands to step forward and tell factory owners to unequivocally respect workers’ right to assemble and freedom of expression.”
In response, H&M declared recently that it will pull up any further orders from its 45 suppliers in Myanmar. This is the first response from any international brand operating in the country. The country manager of H&M in Myanmar, Serkan Tanka expressed his deep concerns about the country’s running situation and said that the unpredictability and difficulties to function here led them to decide to halt.
Source: Textile World
The European Central Bank would step up its bond-purchase stimulus to support an economy whose recovery is expected to lag a year behind the United States, held back by slow vaccine rollouts and less relief spending by governments, the bank recently said. Over the next quarter, the purchases would be conducted “at a significantly higher pace than during the first months of the year,” it said.
The central bank for the 19 countries that use the euro said the move is aimed at preventing a premature rise in borrowing costs while businesses are still struggling with coronavirus restrictions like curfews and shutdowns.
Yields on long-term government bonds have risen by about 0.3% since the start of the year in the eurozone. That is not much, and rates remain low. But it is too early for the eurozone to withstand higher rates, usually associated with recovering growth and inflation.
ECB President Christine Lagarde told a news conference that the rise in market borrowing rates, “if left unchecked, could translate into a premature tightening of financial conditions for all sectors of the economy. This is undesirable.”
The bond purchases have the effect of pushing down bond yields, which are used as benchmarks for borrowing across the region. So the ECB’s move would in theory help keep credit cheap for companies.
Source: Fibre2Fashion News
