In an unusual move, the commerce ministry this year fixed targets for each of the top 30 markets, instead of restricting the practice to a few or setting just a full-year goal. India’s exports to eight of its top 15 markets are trailing the official targets. Nonetheless, the country is still on course to realise its lofty goal of shipping out merchandise worth $400 billion in FY22, as despatches to some other economies beat expectations, reflecting deeper market penetration.In an unusual move, the commerce ministry this year fixed targets for each of the top 30 markets, instead of restricting the practice to a few or setting just a full-year goal. The ministry then followed it up with regular meetings with stakeholders and overseas missions for targeted interventions to enable exporters to better cash in on a global industrial resurgence, an official source told FE. In the first seven months of this fiscal, exports to the UAE, Singapore, the UK, Netherland, Germany, Nepal, Malaysia and Turkey were in the range of only 32% to 54% of the full-year target. Exports to three economies — Turkey, Malaysia and the UAE — did falter more dramatically, achieving just 32-44% of the full-year aim. In a business-as-usual scenario, actual outbound shipments until October should have exceeded 55-58% of the full-year target, analysts said.They blamed persistent supplychain bottlenecks, Covid-related curbs (especially in parts of Europe) and frosty political ties for the lower-than-expected exports to these economies. The top 15 markets are expected to fetch $246 billion in FY22, or 61% of the overall target of $400 billion. However, robust exports to other important markets–including the US, China, Bangladesh, Belgium, Saudi Arabia and Indonesia—almost offset the shortfall. Exports to these markets remained in the range of 62% to 71%. On top of this, outbound shipments to some others among the top 30 destinations, such as Korea, Brazil, Italy and Japan, too, remained strong. In the first seven months of this fiscal, goods exports hit as much as $234 billion, almost 59% of the full-year target. “This suggests that the ambitious target of $400 billion for FY22 is attainable and a sustained increase in exports in the coming years is possible with a little bit of extra effort. Exports to some of the markets after the pandemic did surprise on the upside,” said an official. “What is more important to note is that the geographical spread of Indian exports is improving, which is a good sign.” Merchandise exports fluctuated between $250 billion and $330 billion since FY11; the highest export of $330 billion was achieved in FY19. However, having successfully weathered the damage caused by two Covid waves, Indian exporters face fresh uncertainties now from the emergence of a new Covid variant in Africa that can further disrupt the already-burdened global supply chains. A slowdown in export growth in November amid persistent bottlenecks in the supply-chain, such as elevated shipping costs and container shortage, brings to the fore fresh risks. Having hit a monthly record of $35.7 billion in October, merchandise exports hit $30 billion in November. Exports still registered a 27% rise in November from a year before but it was the lowest growth rate this fiscal. Adding to exporters’ woes, the Omicron variant hammers travel in Europe, a major market. China, another key market, has also seen a spike in Covid cases of late. While some experts have suggested against undue anxiety over the ferocity of the new strain, some others have advised a cautious approach.
Source: Financial Express
The Reserve Bank of India (RBI) vide circular dated 05.02.2021 and 05.05.2021, has allowed Scheduled Commercial Banks (SCBs) to deduct the amount equivalent to credit disbursed to New Micro Small and Medium Enterprises (MSMEs), who have not availed any credit facilities from banking_system as on 01.01.2021, from their Net Demand and Time Liabilities (NDTL) for calculation of the Cash Reserve Ratio (CRR). This was stated by Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Rajya Sabha. The Minister stated that this exemption is available upto Rs 25 lakh per borrower, disbursed upto fortnight ending 31.12.2021, for a period of one year from date of origination of loan or the tenure of the loan, whichever is earlier. The Minister listed out the measures taken by the Government for improving the flow of credit to MSME sector:
Source: PIB
In a major bid to realize the nation’s goals of improving “Ease of living” and “Ease of doing business”, the Department for Promotion of Industry and Internal Trade (DPIIT) is conducting a National Workshop on the “Next Phase of Reforms for Reducing Compliance Burden” on 22nd December, 2021. The Workshop will witness wide participation from across Central Ministries and States/UTs. The Workshop would have three parallel breakout sessions. The theme of the first would be “Breaking Silos and Enhancing Synergies among Government Departments”. This session would focus, among others, on integration between Central Ministries/Departments and State single window systems, deliberation on single business ID, etc. The second is based on the theme of “National Single Sign-on for Efficient Delivery of Citizen Services” which would deal with deliberations on on-boarding all citizen services by Central and State Government services under one roof – “National Citizen Centric Portal” and the creation of a ‘National Digital Profile’ for all citizens that shall be used to pre-fill Government forms and also as a tool to citizen benefit welfare discovery. The third Breakout Session is themed ‘Effective Grievance Redressal’ and the session would have discussion on several topics like usage of next generation technology in effective grievance redressal, accountability -based mechanism for enhanced effectiveness of redressal quality. The Workshop is expected to see enriched discussions and deliberations and lead to the crystallization of innovative approaches to reduce compliance burden. The outcomes of breakout sessions shall be presented to the Hon’ble Commerce and Industry Minister and Cabinet Secretary during the concluding and valedictory session.
Source: PIB
Chennai: AIADMK coordinator O on Tuesday urged minister to restore the old GST rate of 5% on textile and apparel items. In a letter to the Union minister, the former chief minister said the textile industry in the state had been contributing a significant percentage to the country’s economy. It enabled the Centre and the state government to earn substantial revenue, besides foreign exchange through exports, providing direct and indirect employment. “However, in view of the pandemic in the last two years and huge rise in the price of cotton yarn, the industry is facing hardships and a lot of challenges,” said.
Source: Times of India
The government's move to increase goods and service tax on textiles, when input costs are already rising, is facing resistance from the industry. The two ministries involved also differ. On Nov. 18, the Finance Ministry, based on the recommendations of the 33- member GST Council, decided to impose a flat 12% tax on textile items like manmade fibre and finished goods from Jan. 1, 2022, to correct t Rs 1,000 per piece. A uniform tax rate, according to the council, is expected to address anomalies that occur when the tax rate on raw materials is higher than the tax on the finished product. For instance, inputs into the man-made fibre fabric (yarn and fibre) attract a GST of 12-18%, which is higher than 5% on fabrics. That's also called inverted duty structure. The Confederation of All India Traders said it met with Union Textiles Minister Piyush Goyal, who categorically opposed the revised indirect tax rates. Goyal insisted that “a status quo” be maintained and changes be made only after a consultation with the textile ministry and industry stakeholders, the apex traders’ body which represents eight crore traders and 40,000 trade associations said in a “Rationalisation of inverted duty structure in GST is much needed but a careful approach is all the more essential,” the CAIT quoted the textile minister as saying during the meeting. Its Secretary General Praveen Khandelwal also plans to approach Finance Minister Nirmala Sitharaman and state finance ministers requesting them to reverse the proposed hike. BloombergQuint's queries to the ministries of textiles and finance remained unanswered. Opposing Views While the proposed hike hasn’t gone down well with many in the industry, even evoking nationwide protests, a few sections think it would be beneficial. According to the Apparel Export Promotion Council, the 12% GST is a big breather for the MMF textiles (non-cotton) sector. “It will lessen the tax compliance burden and help in releasing the input tax credit residues accumulated on on account of the inverted tax structure, saving crucial working capital for small businesses,” its Chairman A Sakthivel told BloombergQuint. Others, who mostly deal with finished goods, disagree. “Such a steep GST rate will adversely impact 85% of the industry while trying to ease the problem faced by less than 15% of the industry,” Kumar Rajagopalan, chief executive officer at Retailers’ Association of India, said in an emailed statement. It’s also ill-timed as it will lead to higher garment prices, which will hurt an already dwindle consumption, he said. “The government must reconsider this decision in the larger interest of the industry.” CAIT National President BC Bhartia demanded immediate withdrawal of the decision, saying higher taxes will block the capital of small traders. “Are we totally correcting the inverted tax structure? The answer is a big no. In the cotton textile industry, there was no inverted tax structure, so why were such goods brought under the 12% bracket? Even in the manmade textile industry, at the stage of manufacturing garments, there is no inverted tax issue,” Bhartia said. “Without having any understanding of the stages of the textile industry, such a harsh decision will be a regressive step.” A reasonable solution, according to Retailers’ Association of India, is to impose a flat 5% GST on the entire value chain, which begins from the manufacturing of fibres to yarn, followed by fabric and processing, and then value-addition on finished fabrics. “That way it will resolve the inverted tax structure and also give a fillip to the sector.” Lobbies such as the Clothing Manufacturers Association of India, Tiruppur Exporters and Manufacturers Association, Federation of Gujarat Weavers Association, Delhi Hindustani Mercantile Association and the Federation of Surat Textile Association have raised similar concerns. “The market is expected to see a 15-20% price increase in apparel cost in the coming season even without the revised GST rate,” CMAI said in a statement. The industry is facing inflationary headwinds, with prices of raw materials, especially yarn, packing material, raw cotton and freight on an upswing, it said. “Further hike in GST at this time is simply unjustifiable.” Prices of raw cotton have risen by Rs 130 per kg so far this year compared to the preceding year, according to Tiruppur Exporters and Manufacturers Association. MP Muthurathinam, president of the Tiruppur association, told BloombergQuint that the hike is “a steep one”, which could force many units to shut down. The lobby has urged the government to reassess its decision at a GST meeting headed by Union Finance Minister Nirmala Sitharaman in New Delhi on Dec. 14. Tiruppur, in western Tamil Nadu, is known as the knitwear capital of India and is home to 12,500 textile units and employs over 10 lakh people. Their combined turnover stood at around Rs 60,000 crore in FY21, with domestic business accounting for Rs 32,000 crore, Muthurathinam said. “These are small businesses, and they can’t afford to block their working capital for credits.” The association said it will meet Tamil Nadu chief minister and finance minister on Monday to apprise them of their demands. What Tax Experts Say The 7% hike, according to experts, is substantial and would have a mixed effect on textile manufacturers depending on their business model. In any case, if manufacturers absorb the hike, the cost will eat into their margins; and if they decide to pass on the hike, it will burn a hole in consumers' pocket, according to Bipin Sapra, indirect tax partner at EY India. “The GST hike will be an additional burden to most textile manufacturers,” he told BloombergQuint over the phone. “For industries where there is inverted duty structure at 5%, the new rate of 12% will increase tax burden and working capital requirements. In some cases, (the hike) will erode their profitability, in the event the prices cannot be raised.”
Source: Bloomberg Quint
Talking about his expectations from the upcoming Union Budget, Mehta says that the last year’s Budget, despite all the constraints, was in many ways a dream Budget and the government should continue to build up on it. High inflation has impacted consumption and market volumes have gone down, especially in the rural economy, but it is likely to start easing from mid-2022 as it is largely due to supply side constraints or speculation, Sanjiv Mehta, newly-elected president of Federation of Indian Chambers of Commerce and Industry (Ficci) and CMD of Hindustan Unilever (HUL), said on Tuesday. In an interview with FE, Mehta said that today the situation is much better and there are many green shoots in the economy, like tax collections have been robust, exports are looking good, lots of FDI have come in, so structurally there’s much headroom to grow and private capex would kickstart once the demand revives. “What I am saying is that today the situation is much better; corporates have deleveraged, banks have been able to enhance their capital, so it’s a good environment where once the demand kickstarts, I see no businessmen who would be wanting not to miss the sale opportunity. And I don’t think even the risk appetite of Indian business has gone down,” he said. Mehta added that till the time private capex gets started, the government would need to do its bit and keep up the spending. “We have yet to get into that virtuous cycle of growth, where the demand is robust, the capital investment happen, more jobs get created, there’s more money in the hands of the people and more investment takes place,” he said. Talking about his expectations from the upcoming Union Budget, Mehta said that the last year’s Budget, despite all the constraints, was in many ways a dream Budget and the government should continue to build up on it. “To support rural consumption, the food subsidy programmes should continue and consistency in policies should be maintained,” he said. Talking about his company, Mehta said that inflation does impact volumes but so far he’s not seen any discernible downtrading as the company is present across all categories and has multiple brands. “Rural demand still looks tepid from market volume point of view and there’s inflation in many categories. Volume would certainly go down if there’s a price increase,” he said. On other major policy issues, Mehta said that on e-commerce, the government should maintain status-quo as it has benefited all the stakeholders and, most importantly, it brings technology, which is so important. “We have been able to build massive capacity and there’s scope to build enormous digital capacity here,” he said. With regard to the production-linked incentive schemes, the HUL CMD said that the government has done a very good thing by coming out with such schemes as it creates scale and gives competitive advantage, which is very necessary. “PLI schemes give you the benefit of scale, and scale is very important to create competitive advantage; because if you’re looking at it from a global scenario, you will have to compete on cost service quality and innovation; so, scale gives you huge benefit when it comes to cost, and that’s what a PLI scheme will enable you to do,” Mehta said. When pointed out that there has been a lukewarm response to some of the PLI schemes, he said that we should give it time as it is still early days and if in the process it is found that time period of these schemes needs to be extended then he’s sure the government would do it. “You know whenever you look at reforms, I think it would be a fatal mistake to look at it in such short lengths. So let’s not come to a conclusion at this stage, it has just been announced,” Mehta said.
Source: Financial Express
Fast fashion is based on the idea of creating a false demand for fresh looks so that more clothes are produced, but in the process, textile wastage which is harmful to the planet has increased, say sustainability experts. When Nitya Chandrashekhar's mother decided to throw away her decade-old Banarasi silk saree, Nitya decided that she wanted to repurpose it. "The saree had silver work on the border and I didn't want to give it away," she said. She upcycled the saree for her brother's wedding, and it lasted for another decade until 2019, by when the saree was torn beyond redemption. "Every saree is a six-seven metre piece of cloth, which, if not utilised to its maximum capacity, is just adding to waste. If you are bored of a saree, why throw away the cloth when you can always change the design," Nitya told IndiaSpend. Nitya is the founder of Mumbai-based Anya Designs, which upcycles waste sarees to create new clothes. More than 1 million tonnes of textiles are thrown away every year in India. For Nitya, we make too much and buy too much, and so she has incorporated a zero-waste process in her work to minimise wastage in clothes production. Like her, several designers have been exploring ways to upcycle textile trash into fashion items, to shift people's attitude towards fashion consumption. This is important for India, among the top five apparel manufacturing markets and one of the top global hubs of manufacturing of fast fashion garments that are exported to Europe and the US. India's own fashion demand is also growing. Greenhouse gas emissions by the global textile industry are greater than those from shipping and international air travel, combined. The fashion industry produces about 53 million tonnes of fibre every year, 70% of which ends up in garbage dumps, or is incinerated. Production of fibre is expected to reach 160 million tons by 2050, according to the Ellen MacArthur Foundation, a UK-based charitable organisation working to promote circular economies, which seek to balance production and consumption by re-using products. Less than 1% of fibre is reused to make new clothes, representing the loss of the billions of dollars worth of clothes, which are not reused and thrown as waste, adversely affecting the environment, according to the foundation. The global fashion industry is also the second-biggest consumer of water, according to the UN Environment Programme. It takes 3,781 litres of water--equivalent to the amount of water a person drinks over a period of three years--to make a pair of jeans, starting from the production of cotton to the retail delivery of the final product, the report stated.
In India, 1 million tonnes of textiles thrown away each year India's domestic textile and apparel industry contributed nearly 2% of gross domestic product and accounted for 14% of industrial production in 2018, according to a report coproduced by the Indian Chamber of Commerce (ICC). Besides export, domestic demand for fashion is growing exponentially. Per capita expenditure on apparel is expected to reach Rs 6,400 by 2023, from Rs 3,900 in 2018, with rising income of middle class consumers a key factor, per the ICC report. India is set to become one of the most attractive consumer markets for apparel outside the West, with more than 300 international fashion brands expected to open stores in India in 2022-23, per McKinsey. As we said, in India, more than 1 million tonnes of textiles are thrown away every year, with most of this coming from household sources, according to the Indian Textile Journal. Textiles make up about 3% by weight of a household bin. Textile waste is also the third largest source of municipal solid waste in India. The central government in 2019 launched project SU.RE, aimed at committing the textile industry to move towards fashion that contributes to a clean environment. Around 16 of India's top retail brands including Lifestyle, Shoppers' Stop, Future group and Aditya Birla Retail pledged to source/utilise a substantial portion of their total consumption using sustainable raw materials and processes by 2025. But the growth of fast fashion in India is set to increase the textile waste India produces, say experts from sustainability initiatives. Designers like Nitya are aiming to be part of the solution. We reached out to the Ministry of Textile on December 17 for their response on steps undertaken to minimise textile waste and promote sustainable fashion. We will update the story when they respond.
Why fast fashion is unsustainable Earlier, the fashion industry ran on two seasons a year, when new collections would be launched: autumn/winter and spring/summer. Manufacturers and designers would work months ahead to plan collections for each season and predict the styles they believed customers would want. In the 2,000s, this changed, as international fashion brands Zara and H&M pioneered a business model that introduced 52 'micro seasons' a year, which means a new collection is introduced every week. Since then, the term 'fast fashion' has been in use, especially in the context of these brands, to describe the high rate of fashion consumption that is fuelled by the quantity of new clothes that go on sale, per the Sustainable Fashion Collective, an online resource group that advises businesses on developing sustainable fashion and textile products. "Fast fashion was introduced in the Indian context six to seven years back when brands like Zara and H&M entered the Indian market," said Rekha Rawat, Associate Director of Sustainable Industries practice at cKinetics, a sustainability firm operating out of Delhi and California that propagates and develops sustainable strategies in industries. "Fast fashion is based on the idea of creating a false demand for fresh looks so that more clothes are produced for sale. But when the clothes are not sold, there is massive wastage. The unsold clothes end up in garbage dumps and create a cycle of contamination," she added. "The problem is that much of the cost of fast fashion is not reflected in the price tag. All of the elements of fast fashion--over production, low quality, competitive pricing--have a detrimental impact on the environment and the people involved in the production." "Earlier, consumers used to buy items which were durable, where the normal age of the fabric would be 50-80 washes," said Rawat. "But now, the excitement for new items or trends have overtaken the quality aspects. As a result, more products are thrown out, several of which are made using synthetic fabrics that are not good for the environment." Around 165 companies, mostly fast fashion brands, are responsible for about 24% of textile and apparel sector emissions, said a November 2021 report by cKinetics. About 68% of clothes from brands like H&M and Gucci are made up of synthetic fibres, including elastane, nylon and acrylic. Polyester is the most common, making up 52% of all fiber production. "The process is also extremely wasteful," noted Rawat. "Earlier if fashion houses would procure 1,000 yards of fabric in one colour, now they only need 100 yards in 10 different colors as clothes are made for smaller [production] runs. This creates an additional pressure on resources--for instance, usage of water and chemicals in dyeing and treatment of cloth. The maximum textile waste is generated at factory floors during cutting, and during the manufacturing process of apparel making, and includes leftover fabric scraps," said Rawat. During the Covid-19 pandemic, owing to the sharp fall in sales, an estimated €140 billion to €160 billion worth of clothes remained as excess inventory globally, according to a McKinsey report in May 2020.
Upcycling can counter wasteful fast fashion Fast fashion brands, big or small, are innovating to respond to aspirational Indian consumers, which is leading to more textile waste. "As a response to fast fashion and its wastefulness, the concept of upcycling textile waste has begun to trickle down through many layers of the fashion world," said Bhavya Goenka, whose venture Iro Iro upcycles textile waste to make textile products that produce no further waste. "The fashion industry presents a linear business model of manufacture-use-dispose; therefore, it is an obvious contributor to environmental distress. But there is also a huge untapped opportunity," said Goenka. Through a circular system of production that promotes repair, regeneration and reuse of product or materials, Iro Iro collaborates with other businesses to upcycle their waste into textiles for fashion and interiors. "So far, we have recycled over 10,000 kg of textile waste," she added. Traditional Indian clothing, like sarees, still made up an estimated 70% of domestic women's apparel sales in 2017, noted the Mckinsey report. Even if India's appetite for western wear increases, it is still expected that traditional wear will account for 65% of the apparel market by 2023, the report stated. "Traditional wear, like sarees, have a cultural and sentimental value and will never go out of fashion. And there is always scope to repurpose sarees and create them into an Indowestern outfit," said Nitya. Interest in rental and secondhand clothing is also increasing, and the resale market has the potential to be bigger than fast fashion in 10 years, according to the 2019 McKinsey report. The idea of sustainability cannot be just enforced by manufacturers, it also depends on customers to be conscious about their choices, said Rawat. "The idea of a closed looped system is to work towards sustainability through resource efficiency, renewable fuels, and raw materials, which can only be incremental steps in positive directions." IndiaSpend contacted H&M and Zara for comment on their efforts to go sustainable. H&M has over 50 retail stores, while Zara has over 22 stores in India. We will update the story once we receive a response.
Source: India Spend
Extending the GTEX agreement is momentous for the textile industry, allowing continued growth in the existing partnership between Morocco and Switzerland. Fez - Morocco and the Swiss Federal Council signed an amendment on December 20 extending the Global Program for Textiles and Clothing (GTEX) agreement, originally signed in November 2018. The signatory of the amendment took place during a ceremony chaired by the Minister of Industry and Trade, Ryad Mezzour, and the Ambassador of Switzerland to Morocco, Guillaume Scheurer. The amendment falls within the framework of the Specific Agreement for the implementation of the GTEX in Morocco for the period 2019-2021. The Swiss Federal Council has contributed to the program with a financial amount of up to MAD 17 million ($1.8 million) since its launch. The new amendment suggests an additional budget granted to Morocco to cover activities planned for the period 2022-2023. The Moroccan government will allocate 10% of this amount to cover the logistical and management aspects of the project. This agreement will give a new impetus to the existing partnership between Morocco and Switzerland through the GTEX program. The program is aimed at improving the competitiveness of the textile and clothing sector. Mezzour said that the project is perfectly in line with “the priorities set by the new government.” The minister added that it is also part of “the Industrial Recovery Plan in its component aimed at raising the competitiveness of the sector.” The Moroccan minister clarified that the project provides the sector with “tools to ensure its upmarket and strengthen value chain through a strong upstream and innovation.” However, he noted taking “ecological challenges” into consideration, with Morocco “aspiring to become a decarbonized and circular industrial base.” Mezzour accentuated training as a fundamental axis of this partnership. He highlighted it “as a key element to keeping pace with developments in the sector at the global level, a prerequisite to improving its integration and positioning itself in new markets.” Scheurer welcomed GTEX’s extension and praised its “adaptation to the health crisis in Morocco by the Ministry [of Trade] and the Moroccan Association for Textile Manufacturing (AMITH). He noted that “the orientation of the next two years towards digitalization, social and environmental sustainability, as well as the circular economy, will be particularly timely.” In close collaboration with the Ministry of Industry and Trade, AMDIE, and Maroc PME, GTEX seeks the promotion of all Moroccan textile institutions and ecosystems, including AMITH, ESITH, CTTH, and Casa Moda Academy. A strategic plan has been set for the implementation of organizational redesign, labeling, increasing services offered, and digitalization. During the Covid-19 crisis, GTEX helped more than 30 enterprises in various regions by developing a guide to financing options and creating a platform to connect mask suppliers and makers. The program aided 14 businesses in resource efficiency and circular economy, as well it provided five training periods for 84 people on topics such as lean management, quality, and marketing strategy/branding.
Source: Morocco World News
The Bangladesh Textile Mills Association (BTMA) recently suggested forming a permanent monitoring committee to look into yarn import through three land ports— Benapole, Bhomra and Sonamasjid. The four-point proposal by the spinners’ association reiterated their previous stance and opposed allowing partial import of yarn through these land ports. BTMA urged the government to ensure the required infrastructure with installed yarn measurement equipment according to its count and deploy skilled workers to deal with the import of raw materials for readymade garments (RMG) before allowing them through these three land ports. BTMA president Mohammad Ali Khokon wrote a letter to the National Board of Revenue (NBR) in this regard. High global cotton prices have pushed up the prices of locally-produced yarn, he wrote, and as a result, RMG makers are facing an uneven competition with other countries. Currently, the industry can import raw materials like cotton, yarn, fabrics and others used for readymade garment manufacturing under the bonded-warehouse facility through Benapole while partial imports are allowed only in Chattogram port. Amidst the hike in price of yarn in the domestic market, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA) in August had urged the government to allow import of raw materials, including cotton, yarn and fabrics, under the bonded-warehouse facility through all the land ports between Bangladesh and India for uninterrupted production and retaining competitiveness in the global apparel market. BTMA had then opposed yarn import through all land ports. The BGMEA, BKMEA and BTMA later jointly fixed the upper ceiling of yarn prices taking the global cotton prices into consideration and agreed to review the rate from time to time if needed.
Source: Fibre2 Fashion
Environmental warriors are using green technology to transform plastic waste into sustainable products, such as yarn, bricks, and lumber. Ahhyarn, a yarn product upcycled from bubble wrap left over from online shopping packaging, was the brainchild of six environmental and sanitary engineering (ENSE) students from the Technological Institute of the Philippines (TIP) led by Vince A. Ilagan. The yarn can be sold commercially to produce bags, pillowcases, stuffed toys, and the like, providing jobs for weavers in Metro Manila and nearby provinces, with pilot-testing being done at a barangay level. A combination of the Filipino word “ayan” meaning “there” and “yarn,” Ahhyarn was given the City Environment and Natural Resource Office (CENRO) Choice Award and UnionBank UPBXcellerator Innovation Award. The TIP team, composed of Mr. Ilagan, Analyn Balog, Aila Marie Bandola, Kim Nicolle L. Divina, Myrriel Sofia B. Mejia, and Ronniello A. Remudaro, was also named the waste management design champion of annual ideation event Climathon Pasig 2021. With the help of Pasig’s local government and its machine shops, the six ENSE students are collecting, sorting, and processing bubble wrap into Ahhyarn, which was inspired by Adidas how the footwear brand turns polyethylene terephthalate (PET) bottles into thread for shoes. What makes Ahhyarn different is that it is made from a low-density polyethylene (LDPE) that can jam hard plastic processing machines, said Mr. Remudaro, who hopes to develop a machine especially for LDPE. Added Ms. Mejia: “We’re hopeful that this concept will alleviate somehow the plastic problem … namely through solid waste management, even if it’s just in one city for now … Pero dapat mag-assemble, mag-tulong-tulong [But we all have to assemble and help each other], in order to make a bigger impact.” The students hope to implement their project in two years. This year, the International Finance Corporation (IFC) said only 30% of plastics in the Philippines are recycled, with the unrecycled waste valued at around $1 billion. In October, environmentalists sued the government for inaction on plastic pollution, namely the delay in releasing a list of non-environmentally acceptable products. According to TIP, there are only around 3,000 environmental and sanitary engineers in the entire Philippines, compared to over 15,000 practitioners of other fields in engineering. “I see in the ENSE students, faculty, and personnel that they are really into becoming environmental warriors and I really want to be part of that,” said Ms. Balog in the vernacular. NOT EASY, BUT POSSIBLE Like Ahhyarn, eco-lumber providers Green Antz Builders, Inc. (GA) and The Plastic Flamingo (The Plaf) are riding the wave of Filipinos’ heightened consciousness in upcycling. “During the pandemic, GA saw an increase in waste from plastic packaging, but also an increase in public and commercial will to upcycle and divert more plastic away from the landfills and the oceans,” said Saar Herman, GA’s chief technology officer, in an e-mail to BusinessWorld. GA uses plastic that would not otherwise be processed by regular waste collectors and recyclers (like complex plastic, or multi-layered, colored plastic), and upcycles these into products like eco-bricks, flood-resilient interlocking pavers, and eco-casts that replace traditional pre-cast walls. The Plaf, meanwhile, gathers plastics from restaurants, companies, and consumers, and transforms them through an extrusion machine into building materials like waterproof planks. “The pandemic may not be the sole reason as to why there is heightened interest [in upcycling], but it has proven to take a toll on people to learn about us, the plastic problem, and how upcycling is already present and possible in the Philippines,” Allison V. Tan, The Plaf’s communications and marketing associate, told BusinessWorld in a separate email. “Turning plastics into planks is not at all easy, cheap, or doable,” Ms. Tan added, “but it is possible.” The social enterprise has thus far collected 60 tons of plastics — all to be upcycled — on behalf CMA-CGM, a Marseille-headquartered shipping and logistics firm. It has committed to stop 120 tons of plastic waste from entering Philippine waters in the said partnership. Other partners of The Plaf include P&G, Mondelez, Coca-Cola, FedEx, and Adidas. “We want to expand our collection network, hopefully also reaching provincial places for more people to practice proper disposal. We’re looking at having additional useful products made from plastic waste,” said Ms. Tan. GA is likewise looking forward to international collaborations, including one with Holcim’s Circular Explorer (the Swiss-based building brand’s recycling watercraft), which is expected to start by early 2022. Mr. Herman told BusinessWorld that another potential investor will allow the company to reach other geographies within Southeast Asia. In 2018, GA co-founder Rommel B. Benig told BusinessWorld: “We want to be part of the Build, Build, Build campaign… We want that idea kasi [that] as we build, build, build, we clean, clean, clean.” Single-use plastics (SUPs) account for more than 130 million metric tons of the plastic thrown away in 2019, according to this year’s The Plastic Waste Makers Index. SUPs also account for over a third of plastics produced annually; 98% are manufactured from fossil fuels.
Source: Business World online
The International Labour Organization (ILO) has signed an agreement with the government of the Netherlands recently for a new project that will anticipate, and address future skills needs in the garment sector in Vietnam. Vietnam’s textiles and garment industry employs about 2.7 million people, according to the Ministry of Industry and Trade. The latest report from the Vietnam Textile and Apparel Association estimated that the textiles and garment industry will reach its target of $39 billion in export revenue this year, equal to the 2019 figure. However, the COVID-19 crisis has hit the industry hard. In addition to factory closures and lost incomes, the pandemic has accelerated the drivers and megatrends that are changing textiles and garment production and work profoundly. These include automation and digitalisation as well as the introduction of greener and cleaner production to mitigate climate change. As part of the new two-year project starting in January 2022, the ILO will support the government, employers’ and workers’ organisations in Vietnam to understand what skills the industry and its workers will need now and in the future. The project will focus on those at highest risk of losing their jobs as a result of the COVID-19 crisis and the increased automation and digitalisation in the industries. This is an important step towards building a more resilient, inclusive and sustainable industry with decent work opportunities for more women and men. “Timely investment in skills can help speed up the economic recovery, a safe return to work, reduce the career scarring effects of prolonged unemployment and skills mismatch, and take advantage of opportunities that may otherwise dissipate over time,” ILO Vietnam officer-in-charge, Nilim Baruah, said in a statement. The Netherlands believes that a sustainable textile value chain is a precondition for a healthy recovery from the impact of COVID-19. “Sustainable business models, including employability and skills development, contribute to the various current and future challenges of the industry,” said Ambassador of the Kingdom of the Netherlands, Elsbeth Akkerman. “I am proud that with this project we are taking a next step towards a future proof and sustainable textile and garment sector.” The new project is guided by the ILO Centenary Declaration for the Future of Work (2019), the ILO Global Call to Action for a Human-Centred Recovery (2021) and the recent International Labour Conference resolution concerning skills and lifelong learning. It will apply lessons learned from similar ILO garment sector skills anticipation projects in the garment sector in Brazil, Ethiopia, Jordan and Peru, and it will build on the achievements of past ILO skills development programmes in Vietnam. The project will be implemented in close collaboration with the IFC-ILO Better Work Vietnam programme, and the findings and achievements in Viet Nam will be shared with other Member States of the ILO through the creation of a regional knowledge platform on future skills needs in textiles and garments in Asia and the Pacific
Source: Fibre2 Fashion
SP Collection, the holding company of UK-based brand Self-Portrait, has announced the acquisition of British fashion label Roland Mouret as part of its effort to discover, nurture and develop best in class creativity and design. Unable to bounce back from the impact of the COVID-19 pandemic, Roland Mouret had entered administration earlier this month. SP Collection has acquired the assets as well as the intellectual property rights of Roland Mouret. “I am very honoured to have the chance to take this luxury brand on the next stage of its journey. As part of SP Collection, Roland Mouret will benefit from the infrastructure and resources necessary to ensure it can flourish in the coming years. The Roland Mouret brand already has a powerful and respected legacy and I’m excited to see how we can develop it for luxury customers around the world. I am also delighted that Roland himself will be a part of this next chapter,” Han Chong, founder and creative director at SelfPortrait, said in a press release. “I have been so impressed by Han’s passion for the Roland Mouret brand and where he feels it can go next. Naturally I am also very happy to be a part of the journey that will allow me to continue celebrating women in all their beautiful guises for years to come,” said Roland Mouret.
Source: Fibre2 Fashion
