IBTEX No.

195 of 2023 November 07, 2023

Currency Watch
USD EUR GBP JPY
83.26 89.16 102.69 0.55

INTERNATIONAL NEWS
No Topics
Cotton Incorporated Shares What Consumers and the
1
Industry Say About Circularity
H&M, Walmart, Gap Help Better Cotton Develop Origin-
2
Level Traceability Tool
China's cargo throughput soars 10% in Q3 2023: Fitch
3
Ratings
Freight volumes quoted by US retail stores flat QoQ in Sept:
4
Loadsmart

5 China's exports extend slump in October: Data

Global ocean freight rates decline in October after brief

6
respite: XSI
ASEAN manufacturing PMI stagnates at 49.6 in October
7
2023
Eurozone's manufacturing PMI dips further to 43.1 in Oct
8
2023
9 Global cotton output likely to drop 4.7% in 2023-24 season

Sri Lanka’s textile and apparel exports struggling to

10
turnaround

DISCLAIMER: The information in this message be privileged. If you have received it by mistake please notify "the sender"
by return e-mail and delete the message from "your system". Any unauthorized use or dissemination of this message in
whole or in part is strictly prohibited. Any "information" in this message that does not relate to "official business" shall be
understood to be neither given nor endorsed by TEXPROCIL - The Cotton Textiles Export Promotion Council.
Page
 News Clippings

Saudi Arabia can be a great destination for Bangladeshi

11
skilled manpower: DCCI
Pakistan: Experts say local cotton not meeting country’s
12
textile needs
13 Pakistan: Rethinking Pakistan’s export strategy

NATIONAL NEWS
No Topics
NITI Aayog Organised Workshop on Inclusive Trade for
1
Growth & Prosperity

2 India-UK FTA: Gaps yet to be covered in several chapters

3 WCO-IAPH guidelines for customs, ports released

E-way bill generation surges to all-time high of 10.03 cr in

4
Oct

5 Indo Count Industries: A Vision for Future Growth

From the hub: Shades of distress colour Punjab's weaves

6
and drapes

www.texprocil.org Page 2
 News Clippings

INTERNATIONAL NEWS
Cotton Incorporated Shares What Consumers and the
Industry Say About Circularity

Circularity is a major sustainability action point for the fashion industry,

and much of these efforts revolve around the consumer. In a survey of
industry executives conducted by Sourcing Journal and Cotton
Incorporated, 69 percent said that their investments are guided by
customer interest and demand.

However, there is a circularity disconnect between companies and

consumers. In a session at Sourcing Journal’s Fall Summit on Nov. 2
moderated by editor-in-chief Peter Sadera, Cotton Incorporated’s
director, corporate strategy and insights Melissa Bastos shared data from
the cotton research and promotion organization’s Consumer Circularity
Survey and the Sourcing Journal and Cotton Incorporated Industry
Circularity Survey that shows a lack of consumer understanding.

Fifty-five percent say they don’t know what circularity means. Around
one-quarter (27 percent) pinpointed that it is related to clothing’s life
cycle, and 14 percent tied it to secondhand clothing. However, others were
off the mark, with 19 percent thinking it meant cyclical fashion trends and
13 percent believing it was related to blood or air flow.

“There’s places where the industry talks about things, but the consumer
just doesn’t understand what that means,” said Bastos.

Most of the industry, 84 percent, say their designs are influenced by

circularity. Companies and consumers are aligned on durability, placing it
as the top priority. Seventy-one percent of shoppers are interested in
durability, and 60 percent of companies say it influences their designs.

A greater portion of consumers show an interest in circular features than

the population of brands that say the same characteristics inform their
products. For instance, 49 percent of consumers want biodegradability,
while just 33 percent of brands are considering it. And although around
six in 10 consumers want reuse or resale and repair, only 32 percent of
companies are designing for secondhand use and 20 percent create items
with repair in mind.

www.texprocil.org Page 3
 News Clippings

The industry and consumers are on the same page about materials.
Shoppers most associate sustainability with low-impact materials, and
almost half of the industry is focused on using fibers and inputs that are
renewable or recyclable.

“A lot of conversation lately in the industry, from my understanding, is

making sure when designing, manufacturing, sourcing clothing that
you’re really looking at trying to extend the life of it,” said Bastos.

Some leading challenges that the industry faces in implementing

circularity pertain to expenses, with over half (54 percent) saying they
struggle to pass along added costs to the consumer, and 42 percent
indicating that recycled material costs present hurdles.

Additionally, 43 percent cite having the right understanding and

capabilities to establishing the logistics around circular models as a
difficulty.

For consumers, the challenge is knowing what actions to take. “There’s so

much information out there, there’s so many words, so many terms,” said
Bastos. “[Consumers] want to do their part, they want to be responsible
citizens, and they just don’t honestly know what to do.”

To help companies and consumers close the loop on denim, Cotton

Incorporated launched its Blue Jeans Go Green program in 2006. The
initiative turns used denim into a non-woven insulation product that can
be used for building insulation, pet bedding padding and thermal
packaging—such as for meal kit deliveries.

Since its start, Blue Jeans Go Green has partnered with over 100 brands—
including Abercrombie & Fitch and Zappos—on initiatives such as
consumer-facing take-back programs and collected upwards of 5 million
pieces.

Expanding these efforts, Cotton Incorporated recently launched a U.K.-

based program called Cotton Lives On, which began pilots in 2022.
Explaining the move, Andrea Samber, director, brand partnerships at
Cotton Incorporated, noted that Blue Jeans Go Green’s partners are
international and “it’s not the best footprint to be collecting at Levi’s in
France and bringing it back to the U.S.”

www.texprocil.org Page 4
 News Clippings

While Blue Jeans Go Green is entirely denim focused, Cotton Lives On can
process any garment made of at least 85 percent cotton. The recycled
cotton becomes the stuffing for roll mats, which are given to people
experiencing homelessness.

Both programs offer a means for brands to divert textile waste—including

scraps and non-resalable goods—from landfills. “It’s harnessing the
collective power of us as an industry to make a difference,” said Samber.

Source: sourcingjournal.com– Nov 06, 2023

HOME
*****************

www.texprocil.org Page 5
 News Clippings

H&M, Walmart, Gap Help Better Cotton Develop Origin-

Level Traceability Tool

H&M Group, Marks & Spencer, Walmart, Target, Bestseller, Gap Inc. and
C&A helped Better Cotton develop its latest pro-transparency tool.

Three years in the making, the new Better Cotton Platform provides
greater visibility of cotton for all stakeholders in the fashion and textile
sectors. It is the first of its kind to collect and provide access to product
information on this level and means that companies will be easily able to
verify the origin of all raw materials in their products.

Operated on the ChainPoint blockchain software for supply chain

monitoring, it also gives them the ability to address any questionable
activities in the areas of human rights or environmental impact.

Brands and retailers on the Better Cotton Platform can now disclose the
origin of raw materials and comply with changes in regulation coming
along in the near future. Participants gain certainty that they’re sourcing
from a specific country which will help them follow through on their own
corporate due diligence.

Alan McClay, CEO of Better Cotton, forewarns of a seismic shift coming in

the industry’s supply chains and noted how crucial the new traceability
solution will be in smoothing the way for that shift.

“Never before has transparency been as imperative as it is now to our retail

and brand members,” he said. “We’re grateful to every organization that
has helped shape the development of the Better Cotton Platform and stand
committed to its constant improvement.”

Traceable Better Cotton is defined as the “physical” Better Cotton within

a product that contains cotton that has been tracked through the supply
chain.

It is different from Better Cotton’s long-existing Mass Balance Chain of

Custody model, which tracks cotton volume and makes sure it
corresponds to the volume of cotton sold. Earlier this year, Better Cotton
launched the Chain of Custody Standard which lays out the compliance
criteria for suppliers dealing in traceable cotton.

www.texprocil.org Page 6
 News Clippings

Using the Better Cotton Platform, those suppliers will log transactional
information from ginning right through to the retailer or brand. Retailers
welcome the innovation. Katharine Beacham, head of materials and
sustainability, Marks & Spencer, noted how complex global supply chains
remain despite all the progress made in the past few years.

“Since 2021, we have been proud partners working with Better Cotton to
improve the traceability of cotton,” said Beacham, whose company
sources 100 percent of its cotton from reliable sources. “We’re delighted
to be able to be part of this first-of-its kind solution which will enable us
to track our cotton at scale along the supply chain.”

This new program lays the groundwork for some of Better Cotton’s future
programs like Impact Marketplace which will compensate farmers for
field-level progress, enable country-level Life Cycle Assessments to surveil
and calculate the environmental impact of Better Cotton compared to
conventional cotton, as well as provide credible consumer and business-
facing claims.

Better Cotton is the world’s largest cotton sustainability program whose

mission it is to help cotton communities survive and thrive while
protecting and restoring the environment. In the 2021-2022 cotton
season, the program had 2.8 million farmers in 22 countries getting
training in sustainable farming practices through its network of field-level
partners. It also issued Better Cotton licenses to 2.2 million farmers. More
than one-fifth of the world’s cotton is now grown under the Better Cotton
standard.

Better Cotton recently renewed its strategic partnership with Egypt, where
it has 3,589 licensed farmers, and cited progress in non-toxic pesticides in
India where it also set up a traceability scheme. It is also working with the
European Union on greenwashing issues.

Source: sourcingjournal.com– Nov 06, 2023

HOME
*****************

www.texprocil.org Page 7
 News Clippings

China's cargo throughput soars 10% in Q3 2023: Fitch

Ratings

China has witnessed a robust increase in its cargo throughput, with a year-
on-year (YoY) rise of 10 per cent in the third quarter (Q3) of 2023, according
to Fitch Ratings.

The expansion of the New Western Land-Sea Corridor (NWLC) particularly

bolstered ports in the Guangxi region, with their cargo throughput
skyrocketing by 29 per cent compared to the same period last year. This
vigorous growth is set against a backdrop of a weaker base in 2022, which
was affected by diminished demand from Europe and the US.

In alignment with the rise in cargo, China’s total container throughput

experienced a growth of 6 per cent YoY. Fitch Ratings has identified the
development of the NWLC as a key factor driving the container throughput
surge in Guangxi’s ports. Other contributory elements include an escalation
in trade activities with partners from the Regional Comprehensive Economic
Partnership (RCEP), and the significant addition of five new foreign trade
routes by Dalian Port in 2023.

Despite these positive figures in cargo and container throughput, China’s

export landscape tells a different story. There was an 11 per cent YoY
downturn in exports, underpinned by faltering demand. The decline is most
pronounced in exports to the ASEAN and European Union markets, with
reductions of 17.0 per cent and 17.5 per cent, respectively. Exports to the US
also suffered a moderate decline, falling by 14.3 per cent. Nevertheless,
exports to Russia surged by 28.4 per cent, defying the overall downward
trend, as per Fitch.

Looking forward, Fitch Ratings forecasts that cargo throughput may

continue to benefit from a resurgence in consumer spending within the US
and China. However, the forecast is cautious, noting that global
manufacturing activities remain subdued, particularly in the Eurozone, as
reflected by its low manufacturing PMI. Still, the NWLC and RCEP trade bloc
are expected to contribute positively to throughput growth. Additionally, a
revival in China's manufacturing sector may spur demand for commodities,
potentially reinforcing cargo throughput in the coming periods.

Source: fibre2fashion.com– Nov 07, 2023

HOME
*****************

www.texprocil.org Page 8
 News Clippings

Freight volumes quoted by US retail stores flat QoQ in

Sept: Loadsmart

Freight volumes quoted by US retail stores were flat quarter on quarter

(QoQ) in September this year. On a year-on-year (YoY) basis, a stronger
third quarter (Q3) was noted, according to Chicago-based Loadsmart’s
Quarterly Freight Data Report Q3 2023, a review of the trucking economy.

US real retail sales have been negative on a YoY basis for the whole of the
year, but surprisingly, retail-quoted volumes have not experienced a
comparable decline so far, the report said. Loadsmart is a logistics
technology platform that enables shippers, carriers, and brokers to
efficiently manage an automated supply chain.

Its price index increased by 4.1 per cent month on month (MoM) in
September. Rates were sluggish at the start due to the Labor Day holiday,
but jumped after the second week of the month and continued throughout
September at a new level. For the first time in the year, a YoY increase in
the index was noted.

Its volume Index rose by 1.1 per cent MoM in September. The index has
already rebounded by about 6 per cent from its April low and Loadsmart
expects this trend to continue as the country enters the peak season.

There has been much speculation as to whether the spot rate recovery was
simply a pass-through of a diesel price increase to rates. Loadsmart data,
however, contradict this hypothesis.

Its rate recovery began in June, about two months before there was a
significant surge in fuel prices (diesel prices started an uptrend in July).
In addition, both linehaul-only and all-in rates have recovered so far. The
recovery of the former has indeed slowed due to the increase in fuel prices,
but the upward trend continues.

Loadsmart believes that linehaul-only rates should continue to rise over

the long term, even with further fuel price increases, as truck capacity
continues to shrink.

Source: fibre2fashion.com– Nov 07, 2023

HOME
*****************

www.texprocil.org Page 9
 News Clippings

China's exports extend slump in October: Data

China's exports fell at a faster pace than predicted in October, data showed
Tuesday, as the world's second-largest economy is buffeted by faltering
global demand and a sluggish domestic recovery.

Beijing has sought to boost business activity in a country grappling with a

major property crisis and weaker consumption since officials abolished
their strict zero-Covid policy at the end of last year.

Exports -- long a key driver of the growth -- sank 6.4 percent year-on-year
last month, according to the General Administration of Customs.

The reading was much worse than the 3.5 percent drop forecast in a
Bloomberg survey of economists and slightly heavier than September.

Apart from a brief rebound in March and April, exports have been in
constant decline since last October.

"Export growth remained sluggish as the economic momentum in the

United States and Europe slowed," said Zhang Zhiwei of Pinpoint Asset
Management, adding that external demand was likely to remain weak in
coming months.

Imports, however, rose 3.0 percent, bucking a forecast drop of 5.0 percent
and notching the first month of on-year growth since late last year.
The rise in imports could be a signal that domestic demand in China is
recovering from months of weakness.

But Zhang told AFP that the October "positive surprise" in imports alone
is not sufficient to determine whether domestic demand is improving,
pointing to other indicators such as retail sales.

"Nonetheless as fiscal policy has turned more proactive, a recovery in

domestic demand is likely in coming months," said Zhang.

China recorded moderate growth in the third quarter as Beijing looks to

achieve its official goal of "around five percent" expansion for 2023 -- one
of its lowest targets in years.

www.texprocil.org Page 10
 News Clippings

Beijing said last month it would issue one trillion yuan ($137 billion) of
sovereign bonds to boost infrastructure spending, and it has also
introduced targeted stimulus for various sectors -- particularly the ailing
property market.

China slipped into deflation in July for the first time since 2021 but it
bounced back modestly in August, though analysts warned a relapse in the
coming months was still possible.

Source: economictimes.com– Nov 07, 2023

HOME
*****************

www.texprocil.org Page 11
 News Clippings

Global ocean freight rates decline in October after brief

respite: XSI

Global ocean freight rates saw a 2.6 per cent drop in October, with the Xeneta
Shipping Index (XSI) at 165.3 points, according to Xeneta, a leading provider
of freight rate data. The XSI showed a modest 0.2 per cent increase in
September, ending a year-long trend of decline. Market analysts had been
cautiously optimistic in September when the XSI reported growth for the first
time in twelve months, prompting speculation about a potential market
resurgence. Nonetheless, October's figures have dispelled such hopes,
indicating that the previous month's growth was a temporary blip rather than
a lasting recovery, as per Xeneta.

The fluctuating market is particularly evident in the Far East trades, where
rates from Korea to Australia and New Zealand rose by 2 per cent in
September, only to plummet by 31.1 per cent in October. These erratic
movements are atypical for this time of year, which usually sees a stable XSI
due to fewer active contracts. However, Xeneta analysts expect the new year
to bring more activity, with contracts likely to be signed at rates lower than
their predecessors. In Europe, the XSI presented a mixed picture in October.
European imports saw growth, whereas exports recorded the largest monthly
decrease, particularly from North Europe to China, where rates have dropped
so low that carriers appear to be subsidising shippers, especially when
terminal handling charges are considered.

The US market is seemingly in a holding pattern, with the XSI sub-index for
imports dropping by 3.4 per cent to 186.8 points in October. The full impact
of the market's adjustments is expected to be felt in May of the following year
when new, lower-priced contracts are set to commence. The sub-index for
US exports also saw a decline of 1.2 per cent to 131.6 points in October, the
smallest year-on-year decrease across the XSI indices.

The Far East experienced significant downturns as well, with export indices
falling by 6.2 per cent to 152.8 points – a dramatic 75.1 per cent drop from
the previous year and the lowest since February 2022. Import indices also
decreased by 6.2 per cent to 108.8 points, marginally higher than the baseline
set in 2017, indicating a subdued market despite a record high in import
volumes in August.

Source: fibre2fashion.com– Nov 06, 2023

HOME
*****************

www.texprocil.org Page 12
 News Clippings

ASEAN manufacturing PMI stagnates at 49.6 in October

2023

The Association of Southeast Asian Nations’ (ASEAN) manufacturing

purchasing managers’ index (PMI) was unchanged from September at
49.6 in October 2023. The latest reading was indicative of a marginal
deterioration in operating conditions for the second month running.

Of the seven ASEAN nations covered five recorded a deterioration in the

health of their manufacturing sector; the highest number of countries to
report a decline since August 2021. The downturn was led by Malaysian
manufacturers for the fourth month running. Operating conditions there
weakened at an unchanged and solid pace—headline PMI at 46.8, thereby
indicating the joint-quickest contraction since January, S&P Global said
in a press release.

Thailand’s manufacturing sector also recorded a further deterioration in

conditions. At 47.5, the headline figure posted below the neutral 50.0
mark for the third month running. Moreover, the rate of decline was the
most pronounced in over two-and-a-half years. Modest deteriorations in
business conditions were noted across both Singapore at 48.6 and
Myanmar at 49.0. However, while the downturn softened across
Singapore’s manufacturing sector, Myanmar registered a fresh decline
following an eight-month period of improvement.

Vietnam registered a marginal downturn in October, with the rate of

deterioration broadly unchanged from that seen in the previous survey
period at 49.6. The two countries that saw an improvement in the health
of their manufacturing sectors were Indonesia at 51.5 and the Philippines
at 52.4. While the former saw growth momentum ease to a five-month low,
operating conditions improved at the fastest pace in seven months at
Filipino manufacturing firms.

Business conditions across the ASEAN manufacturing sector weakened

slightly again during October. The latest downturn stemmed from softer
underlying demand, which fed through to a second month of contraction
in new orders. Despite this, production levels at ASEAN goods producers
increased again, in part due to the build-up of orders throughout most of
2023, which supported a further marked drop in backlogs. However, the
rate of output expansion was marginal overall and the weakest in the
current 25-month sequence of growth.

www.texprocil.org Page 13
 News Clippings

The sustained drop in new orders also contributed to a fresh fall in input
buying, that marked the first decline since September 2021. With goods
producers cutting back their purchasing activity, usage of both pre- and
post-production holdings increased. Inventories were depleted at rates
quicker than that seen in the previous survey period.

Vendor performance improved for the eighth month running. Average

lead times shortened only marginally, but nevertheless this signalled
reduced pressure on supply chains amid the recent worsening of demand
conditions. Softer market conditions also helped to cool inflationary
pressures. Both input prices and output charges increased at historically
muted rates.

Manufacturers retained a positive outlook for output, with firms generally

anticipating an expansion of production in the coming 12 months. That
said, the degree of confidence weakened to a three-month low and
remained below the series average.

Lastly, despite the further weakening of conditions across the ASEAN

manufacturing sector, employment was broadly stable in October, with
the respective seasonally adjusted index ticking up slightly from
September.

Source: fibre2fashion.com– Nov 06, 2023

HOME
*****************

www.texprocil.org Page 14
 News Clippings

Eurozone's manufacturing PMI dips further to 43.1 in Oct

2023

Eurozone’s manufacturing purchasing managers’ index (PMI) fell to a

three-month low of 43.1 in October 2023, down from 43.4 in September
and indicative of a further marked deterioration in the health of the euro
area’s goods-producing sector. This marked the 16th month in succession
that the report’s headline index has registered in sub-50.0 contraction
territory, signalling a sustained deterioration in manufacturing
conditions.

Of the countries where manufacturing PMI data are available, October

survey data highlighted broad-based weakness. As has been the case so far
in the second half of the year, Germany was the worst performer, despite
its downturn easing again, according to the Hamburg Commercial Bank
(HCOB) eurozone manufacturing PMI, compiled by S&P Global.

France, the second-largest economy in the single currency union, recorded

its strongest deterioration in factory conditions in nearly three-and-a-half
years. Faster declines were also noted for Italy, Spain, and Ireland, while
Greece remained the sole country to register an improvement, albeit one
which was marginal.

PMI survey data continued to highlight considerable weakness in demand,

with new orders contracting at one of the steepest rates in the survey
history. The latest decrease has only ever been surpassed by those seen
during the pandemic, the global financial crisis of 2008-09 and the energy
crisis late last year. Similar trends were also evident for both quantity of
purchases and backlogs of work, highlighting the bleak picture within the
eurozone manufacturing industry.

A rapid and accelerated fall in pending workloads signalled companies’

efforts to support production, given substantial weakness in demand.
Nevertheless, factory production volumes fell markedly once again and at
the joint-second strongest pace since May 2020. In line with the trend
seen for much of the year-to-date, eurozone manufacturers reduced their
stocks of purchases in October.

Notably, the rate of depletion quickened for the second successive month
and was the strongest since November 2012. Postproduction inventories
also fell, with October’s decline the most marked in over two years.

www.texprocil.org Page 15
 News Clippings

Alongside the cashflow improvements made via inventory depletion,

eurozone factories looked to make additional cost savings through jobs
cuts. Employment fell for a fifth month in a row at the start of the fourth
quarter, with the rate of job shedding its fastest since August 2020.

An accelerated decrease in staffing numbers also came amid a worsening

in firms’ growth expectations. Although firms remained marginally
optimistic towards the 12-month outlook, the level of positive sentiment
slid to an 11-month low.

Meanwhile, deflation remained a key feature of the Manufacturing PMI

survey in October as both input costs and output prices continued to fall.
The extent to which operating expenses fell was the weakest since April,
but sharp nevertheless. A sustained fall in input prices partially reflected
further improvements on the supply side as average input lead times
continued to improve. Survey respondents continued to pass through cost
savings to clients via a reduction in prices charged, the sixth month
running in which this has been the case.

Source: fibre2fashion.com– Nov 06, 2023

HOME
*****************

www.texprocil.org Page 16
 News Clippings

Global cotton output likely to drop 4.7% in 2023-24 season

Global cotton production will likely be 5 million bales (217.7 kg) lower this
season (October 2023-September 2024) as the output in China, the US,
Australia and India has been affected.

Though cotton prices are likely to decline in the current quarter, they are
projected to increase in 2024, at least from the second quarter, industry
experts and analysts have said.

However, the lower cotton production is unlikely to affect the textiles

industry as it is moving towards alternatives such as synthetic and blended
fibres. “We expect global (cotton) output to reach 112.1 million bales in the
2023-24 season, down from an estimated production of 117.6 million bales
in the 2022-23 season, representing a year-on-year decline of 4.7 per cent.

Our view of a downturn in the global production outlook is driven by an

expected 12.1 per cent year-on-year (y-o-y) decline in Mainland China and
the US, where a sharp decline in the planting area and adverse weather
conditions have weighed on production estimates,” said research agency
BMI, a unit of Fitch Solutions.

Brazil to offset, partially

Additionally, it estimated a 12.1 per cent slide in Australian output and a

1.9 per cent contraction in Indian production this season. But Brazilian
output will partially offset declines elsewhere, with our forecasts
indicating a 21.6 per cent y-o-y increase.

“The global market will face a supply shortage this year. But demand is
slack as the US, Europe and other developed nations are going through
financial problems. People there are not spending much on clothing,” said
Rajkot-based cotton, yarn and cotton waste trader Anand Popat.

“Production in India is lower at 295 lakh bales (170 kg each). But carryover
stocks of 25-30 lakh bales last season should help overcome any shortage.
Cotton consumption is also slack as mills are shifting to polyester blends,”
said Ramanuj Das Boob, a sourcing agent for multinationals based in
Raichur, Karnataka.

www.texprocil.org Page 17
 News Clippings

“The textiles industry is clearly moving towards synthetic and blended

fibres, both at home and abroad. This move is picking up speed with
higher prices of cotton and artificial fibres such as man-made fibres and
cellulosic fibres taking up more space in the market,” said Prabhu
Dhamodharan, Convenor, Indian Texpreneurs Federation (ITF).

Tech advancement to the rescue

The “accelerated shift” will keep a check on cotton prices. “The recent
advancement in technology is making synthetic fibres more functional,
which makes them strong competitors to cotton,” he said.

Despite the lower production, BMI has lowered its average price forecast
for 2023 to 84 US cents a pound from 86.5 cents, which is marginally
above the year-to-date average of 83.8 cents. “Looking ahead to 2024, we
maintain our average annual price forecast at 88 cents, representing a
year-on-year increase of 4.1 per cent (mainly due to short supplies),” the
research agency said.

Adding further support to global prices, it expects global consumption to

reach 116.4 million bales in 2023-24, representing a y-on-y growth of 5 per
cent and, crucially, leading to a global production balance deficit.

Current prices

Currently, cotton prices on InterContinental Exchange, New York, are

quoted at 81.74 cents (₹53,800 a candy of 356 kg) for delivery in March
2024 — the lowest in over three months. In India, benchmark Shankar-6
cotton is quoted at ₹57,050 a candy in Rajkot.

“Kapas (unprocessed cotton) prices in the domestic market are quoted at

₹7,200-300 a quintal, while cottonseed prices are ruling at ₹3,200-300 a
quintal,” said Das Boob. If seed prices drop further, then the Centre could
consider minimum support price (MSP) purchases.

The MSP for cotton this year has been fixed at ₹6,620 for medium staple
variety. Arrivals are likely to pick up after Diwali and will be steady for two
months after that. “We expect cotton prices to rule around ₹57,000-
59,000 a candy, though heavy arrivals and slack demand could put
pressure on the rates,” the Raichur-based sourcing agent.

www.texprocil.org Page 18
 News Clippings

Though the crop is lower, the quality of arrivals is excellent, Das Boob said.

Caution over fibre choice

Popat said his own estimate of the cotton crop was that it is not lower than
315 lakh bales (170 kg each) and with a carryover stock of 27 lakh bales,
domestic demand could be easily met.

Dhamodharan cautioned that spinning mills and fabric manufacturers in

the southern region are thinking twice about depending only on cotton,
thanks to its price swings and frequent volatility. “They are now more open
to mixing in different fibres, which lets them adapt quickly to any market
twists and turns,” he said.

The ITF convenor said it’s the “right time” for the Indian government to
bring a “right balance” in the ecosystem. “We expect its production during
the 2024-25 season to ease back by 12.3 per cent, which will lend support
to prices throughout the second half of 2024,” BMI said.

Source: thehindubusinessline.com– Nov 06, 2023

HOME
*****************

www.texprocil.org Page 19
 News Clippings

Sri Lanka’s textile and apparel exports struggling to

turnaround

The textile and apparel (T&A) sector Sri Lanka continues to be the biggest
foreign exchange earner in its economy. For a country that was leveraging
the success story of Asia’s T&A exports sector, troubles began in the form
of an ongoing economic crisis since 2019, changing the entire
manufacturing, trade and socio-economic dynamics. Some reports
suggest, Sri Lankan apparel exports shrank $900 million, as slowing
global demand for readymade garments stung the already beleaguered
economy hard.

As per Sri Lanka’s Export Development Board the exports fell 11.9 per
cent, compared to a year ago to $951.5 million in September 2023. The
T&A sector saw a drop of 24 per cent to $361.8 million in the same period.
Total exports from January to September 2023 were down 10.3 per cent
to $ 8,961.6 million. Exports to US, Sri Lanka’s single largest export
destination, fell 26.28 per cent to $202.1 million in September 2023.
Exports to the European Union, which is Sri Lanka’s second largest
market, have dropped 27 per cent to $1 billion and to Britain by 23 per
cent to $480 million.

The worst is behind says, JAAF

Yohan Lawrence, Secretary General of Joint Apparel Association Forum

(JAAF) believes losses have bottomed out and it won’t get any worse. JAAF
is expecting a small turnaround but nothing substantial in 2024. Lawrence
is optimistic as he feels Sri Lanka’s readymade garment exporters will
hopefully start seeing some signs of recovery at the beginning of next year
as excess stock gets used.

Despite temporary closures of a handful of factories, the industry is

soldiering on. Lawrence says significant job losses were not expected. As
Sri Lanka’s apparel sector employs about 300,000 people, most of them
women, the past few years has seen it affect the social fabric amongst the
lesser economically privileged classes. Sri Lanka is still hoping to earn
about $4.5 billion from garment exports by year-end, a foreign exchange
amount it desperately needs.

www.texprocil.org Page 20
 News Clippings

One positive is that exports to India are up 11.3 percent to $79.9 million.
JAAF, the most influential body in Sri Lanka’s T&A sector has been
constantly pushing for the amendment of India-Sri Lanka readymade
garment quota for exports to gain significant benefits. JAAF has also been
lobbying with the Sri Lankan minister for power and energy, Kanchana
Wijesekera to reduce electricity tariff affecting production
competitiveness - a steep 66 per cent power tariff hike in February 2023
has not been kind to the sector.

Daunting figures belie optimism

In May 2023, JAAF had it expected Sri Lanka to lose around $1 billion in
apparel export earnings this year but the losses up to September indicate
the total for the year might surpass that projection.

Apparel is Sri Lanka’s largest export that earned $5.95 billion in 2022,
helping it weather the worst financial crisis since independence in 1948.
But this year, the industry has struggled with exports up to September
dropping 39 per cent to $3.4 billion year-on-year, as per latest JAAF stats.

Reasons for the drop are many, global demand for readymade garments is
dwindling and this has affected Sri Lanka’s forex earning capacity. This in
turn is affecting the tiny nation as it grapples with a multitude of problems
that affect manufacturing – importing the most efficient and
contemporary machinery, raw material which it does not produce as well
as other ingredients such eco-friendly fibre and dyes. This mix may lead
to a long struggle for Sri Lanka’s T&A sector to find its bearings.

Source: cottongrower.com– Nov 04, 2023

HOME
*****************

www.texprocil.org Page 21
 News Clippings

Saudi Arabia can be a great destination for Bangladeshi

skilled manpower: DCCI

President of the Dhaka Chamber of Commerce and Industry (DCCI)

Barrister Md Sameer Sattar today (Sunday) observed that Saudi Arabia
can be a great destination for Bangladeshi skilled manpower.

The president made the observation while meeting with the leaders of Al
Madina Al Munwara Chamber of Commerce recently at the Madina
Chamber in Saudi Arabia, said a press release.

A large private sector business delegation, comprising of leading private

sector companies of Bangladesh, headed by Md Sameer Sattar is now
visiting Saudi Arabia to explore new business opportunities.

During the meeting, Sameer Sattar urged Saudi Arabia to hire more skilled
professionals from Bangladesh especially in logistic, infrastructure, IT and
outsourcing sectors, to contribute to the upcoming development vision of
Saudi Arabia.

He also urged the members of the Borad of Madina Chamber to invest in

Bangladesh in health, tourism, social service sector.

Barrister Sattar also said that the Bangladesh government has given
various fiscal and non-fiscal incentives to the foreign investors to invest in
the Economic Zones.

After the LDC graduation of Bangladesh in 2026, the country needs to

diversify its exportable products as well as potential markets, he added.

Terming Saudi Arabia as a potential market, he said that besides human

resources, the quality of Bangladeshi products is very popular in Saudi
Arabia.

Vice Chairman, Madina Chamber, Dr. Khalid Abdul Qader Daqal said that
Madina Chamber has set a few priorities to facilitate trade and investment
like integrated institutional development, enabling supportive laws and
regulations, providing qualitative services, enabling competitive economic
development and realising effective community development.

www.texprocil.org Page 22
 News Clippings

Madina contributes 7 percent of the total GDP of Saudi Arabia, he

informed.

Pharmaceuticals, leather and leather goods, ceramics, tourism, and agro-

processing are a few of the potential sectors, investors from both countries
can look into, he added.

He also said that frequent visits by business delegations will enhance

business-to-business connectivity.

DCCI Senior Vice President S M Golam Faruk Alamgir (Arman), Vice

President Md Junaed Ibna Ali and members of the business delegation
were also present on the occasion and had an effective business
networking.

Source: thefinancialexpress.com.bd– Nov 07, 2023

HOME
*****************

www.texprocil.org Page 23
 News Clippings

Pakistan: Experts say local cotton not meeting country’s

textile needs

The Agricultural Experts, economists, progressive farmers, and

researchers have said that cotton is not meeting the country’s need for
textile raw materials, so we must invest in alternative sources, and
Agriculture is not been given satisfactory results due to non-investment by
the industry for a century, while agriculture is the only sector in the
country, in which the rate of commodities is set by the commission agent
instead of the Farmer.

They said while addressing the inaugural ceremony of the 5th annual
Banana Festival 2023, organized under the auspices of Sindh Agriculture
University (SAU) in collaboration with Agri-Tourism Development
Corporation, Tech-Saeein, Mishal, PAR, MH Panhwer Farms, Durrani
Farms, and FAO on Monday.

Addressing the occasion SAU Vice Chancellor Dr. Fateh Marri said that
more than 3.5 million tons of valuable banana waste is burnt every year,
while it can create many by-products including fiber, composite fertilizers,
confectionery, and cosmetics. He suggested that a Banana Research Group
be formed comprising farmers, the public, private, and industrial sectors,
and research institutes, while we will join as a member of the World
Banana Forum in the future.

Vice Chancellor of Shah Abdul Latif University (SALU) Khairpur Mirs, Dr.
Khalil Ahmed Ibupoto said that if SALU, SAU, and other research
institutes establish a large tissue culture lab for resistant plants of banana,
date palm, and other fruits, then we can meet the existing demand for
disease-free tissue culture plants.

Vice Chancellor, University of Sufism and Modern Sciences Bhittshah Dr.

Parveen Munshi said that this is the era of commercialization, and there
is a huge scope for value chain in agriculture, like mangoes, banana value
chain and marketing needs attention.

Director General Agriculture Research Sindh Noor Muhammad Baloch

said that the availability of banana varieties and tissue culture plants is a
problem, but despite this, the institutions are doing their work.

www.texprocil.org Page 24
 News Clippings

Vice President of Karachi Chamber of Commerce, Mohammad Younis

Soomro said that the agriculture of Sindh is a hostage in the hands of
Commission Agents, while agricultural production is the only sector in
which the authority to set the rates is not in the hands of the Farmers.

Dean of the Textile Institute of Pakistan Dr. Abdul Jabbar said that 20%
of the raw materials needed by the textile industry in the world are being
supplied by fiber from bananas and other items, while we are burning our
valuable waste.

Progressive farmer Haji Muhammad Umar Bughio said that if Iran,

Afghanistan, and China did not import bananas from our country, no one
would plant bananas, so we have to show seriousness on the value chain.

Agha Zafarullah Durrani of Durrani Farms said that we need five million
tissue culture plants annually. “During the flood, 60 thousand acres of
banana crop were destroyed.” He added

Nosherwan Mughal, Mohsin Khan, Dr. Mohammad Ismail Kumbhar, Dr.

Shaukat Ali Abro, Dr. Tahseen Fatima Miano, and others also spoke on
this occasion.

During the technical session, experts presented their papers regarding

banana development, value chains, by-products, and exports. An
exhibition on bananas was also organized during the festival.

On this occasion, students from the University of Karachi, Textile Institute

of Pakistan, and delegations from various industries, farmers’
organizations, PARC, Agricultural Research, Agricultural Extension,
SAFCO, RDF and other institutions and a large number of experts,
teachers, and students participated.

Source: brecorder.com– Nov 07, 2023

HOME
*****************

www.texprocil.org Page 25
 News Clippings

Pakistan: Rethinking Pakistan’s export strategy

Asking the right questions, focusing on productivity, global

competitiveness is key

From my perspective, an increased reliance on remittance serves as a

disincentive to produce and facilitates only consumption with inflationary
impact. Similarly, foreign investment flows are accompanied with
liabilities, particularly when they are directed towards infrastructure, such
as power and highways. The China-Pakistan Economic Corridor (CPEC) is
a case in point.

Over the decades, Pakistan has used various policies, incentives and
schemes to enhance exports. The fact that the exports-to-GDP ratio has
fallen over time dramatically is a sufficient indicator of the failure of our
export paradigm.

We touched a maximum of 17% exports to GDP ratio in early 1990s- an

era of trade liberalisation and economic reforms, as well as positive trade
balance. This ratio today is hardly 10% with a widening trade account gap,
where other regional economies have managed to increase this ratio.

We extended all kinds of incentives to the private sector and developed

export processing zones in the 1980s. Despite this, to date, their
contribution in total exports is less than 3%, compared with Bangladesh
where it is above 15%.

To determine the causes, the government recently commissioned a study

to our institute, and a report has been submitted to the government which
offers recommendations on improvements.

The government offered export finance schemes like TERF and LTTF with
credit supply at a discount. Additionally, they offered duty drawback
incentives to our exporters. These schemes helped to some extent and
have proven advantageous for incumbents.

Moreover, our product complexity has not improved implying low value
that our products get in the international markets. The example set by the
veteran Industrialist Imtiaz Rastgar whose products are exported to 130
countries is inspiring but exceptional.

www.texprocil.org Page 26
 News Clippings

Pakistan has persistently used import substitution policies, even with

evidence of their failure. One compelling example is our auto industry,
which has not developed any export markets for various reasons and
prices remained very high. However, our motorbike industry has become
far more competitive and as a result, has offered products at reasonable
prices.

In 2013, Pakistan received GSP Plus status from the EU, a trade deal with
duty free or minimum tariff barrier access for textile and other products.
In her paper, Economist Sarah Javaid concluded that Pakistan took
maximum advantage of the scheme, with 97% of the utilisation.

However, it did not help in product diversification or supply chain

development. Some can argue that it might have created an opposite effect
by limiting product diversification.

A new study authored by Aadil Nakhoda and published at the PRIME, an

independent economic policy think tank, estimated that the possible trade
loss in case of revocation of GSP Plus is over $3 billion per year, though
there are some estimates which put this possible loss closer to $6 billion.

Roughly around 30% of our exports fall under GSP Plus. In comparison,
the Philippines, which is another GSP Plus country with overall exports of
above $115 billion, has only $2.5 billion exports under GSP Plus, which
means that hardly 2% of its exports are dependent on GSP Plus.

When it comes to exports, there is one major policy omission that Pakistan
has made, free trade and regional trade blocks. Pakistan has seven
PTA/FTAs, though they lack depth, an FTA implies zero duties on 90% of
tariff lines, as argued by the former WTO Ambassador Manzoor Ahmad.

Therefore, they have not created results which other countries such as
Turkey and Vietnam have experienced. Both the countries with more or
less similar export level as that of Pakistan hardly thirty years ago shunned
protectionism. Since then, they have become export power houses, with
Vietnam crossing $350 billion and Turkey above $250 billion.

While there are other factors which have impeded our export potential, I
will not discuss them here.

www.texprocil.org Page 27
 News Clippings

Pakistan requires a new export paradigm. However, for that we have to

change the questions we are asking. Instead of asking how we can increase
our exports, we should ask ourselves how we can increase our productive
capabilities, product quality and competitiveness at the firm level.

An isolated focus on exports, through all well-intentioned incentives, is

the most important cause of our failure. Once we realise that exports are a
part of a greater economic landscape, and can only be enhanced by
starting transformation, as we argued in the EAG vision document, we can
begin to find answers.

Source: tribune.com.pk– Nov 06, 2023

HOME
*****************

www.texprocil.org Page 28
 News Clippings

NATIONAL NEWS
NITI Aayog Organised Workshop on Inclusive Trade for
Growth & Prosperity

NITI Aayog organised a thematic workshop on “Inclusive Trade for

Growth & Prosperity” which highlighted the need to enhance and widen
domestic outreach, ownership and implementation of New Delhi Leader's
Declaration (NDLD) outcomes in the areas of inclusive trade for growth
and prosperity, and resilient supply chains.

The thematic workshop was organised as a follow up to New Delhi

Leader's Declaration (NDLD) under India's presidency G20 Summit
which emphasised on adopting strong, sustainable, balanced, and
inclusive trade for growth and prosperity for all.

Shri BVR Subrahmanyam, CEO NITI Aayog, in his keynote address

highlighted the need for a non-discriminatory and inclusive trading
system which facilitates trade as an engine of growth and prosperity.
Further, he emphasized the need for India to integrate into global value
chains (GVCs) and adapt swiftly to emerging trading systems.

Dr. Arvind Virmani, Hon’ble Member, NITI Aayog, addressed the first
session titled ‘Mapping Global Value Chains’, and highlighted the need for
strengthening key areas such as labour-intensive supply chains,
institutional factors for policy framing and simplifying taxation system,
and integrating payment, refund and export credit system especially for
MSMEs. Dr. Virmani also recognised the need to address various anti-
dumping issues and the need to foster FTAs with potential partners.

The session on ‘Mapping Global Value Chains’ focused on strengthening

logistics for efficient supply chains, exchange rate management to
enhance competitiveness, utilising strategic intervention from MNCs,
provision of cumulative Rules of Origin, identification of potentially
competitive segments, transparent & traceable GVCs, mapping startups
and integrating industrial policy with trade policy to name a few.

The second session on ‘Promoting Inclusive Trade for Growth’ was chaired
by Prof. Ramesh Chand, Hon’ble Member, NITI Aayog. The session
highlighted the key points including – strengthening capacity and
infrastructure development of LDCs; reducing non-tariff barriers;

www.texprocil.org Page 29
 News Clippings

mobilizing resources for scaling up aid-for trade, particularly for MSMEs

in developing and least developed countries; digital inclusion in three
areas namely infrastructure, skills and data ownership; standard setting;
technical advancement; transparency; and incorporating climate
principles into trading systems.

The concluding session of the Workshop ‘Addressing challenges to

Inclusive Trade’ was chaired by Dr. Harsha Vardhana Singh, Ex DDG,
WTO. He drew attention towards enhancing traditional exports of India;
increasing female labour force participation in trade; state/district level
integration into the supply chain and trade (promoting Districts as
Exports Hub); facilitating integration of MSMEs in GVCs; logistics and
financial support, access to information for MSMEs; climate resilient
agriculture with promotion of Nutri cereals and accelerating services
exports; document digitalization with respect to trade; and strengthening
focused skill development including reskilling & upskilling.

NITI Aayog is organising a series of thematic workshops on key agendas

of New Delhi Leader's Declaration (NDLD) to devise actionable strategies
and plans that can be implemented to provide impetus to growth and
prosperity of the country. Other thematic workshops are focused on topics
of SGDs, Roadmap for Tourism, Digital Public Infrastructure, India and
African Union Cooperation, Data for Development, Women Led
Development, etc.

Source: pib.gov.in– Nov 07, 2023

HOME
*****************

www.texprocil.org Page 30
 News Clippings

India-UK FTA: Gaps yet to be covered in several chapters

The India-UK Free Trade Agreement (FTA) negotiations, which missed an

earlier deadline of Diwali 2022, are likely to continue well past this year’s
festivities as five chapters of a total of 26, covering sensitive areas such as
intellectual property rights, rules of origin, financial services, work visas
and tariff cuts on key items, are yet to be ironed out, sources have said.

“Despite best efforts made by negotiators from both countries to conclude

the FTA negotiations by October-end, tricky issues are continuing to hold
up the pact. A total of 21 chapters of a total of 26 chapters have been agreed
to till date. There are hopes that progress in the other chapters would be
made by November-end, but the situation is tough,” a person close to the
development told businessline.

The two countries are optimistic about bilateral trade doubling to $100
billion by 2030 if the FTA is implemented soon.

Officials from both sides had indicated last month that Prime Minister
Narendra Modi and his UK counterpart Rishi Sunak may take some
political calls on the tough areas that negotiators were finding difficult to
deal with. “At that time Sunak had plans of visiting India (in October-end),
though it was not announced officially, and negotiators were burning the
midnight oil to try and close the gaps. However, Sunak’s visit did not
materialise and neither did all the knotty areas in the talks get
straightened out,” the source said.

Election mode

The negotiating teams from the two countries will stay engaged through
November to see if they could manage a breakthrough by the month-end.
“It is important to advance the India-UK FTA negotiations before the
Christmas break because the new year will bring in uncertainties as both
countries are expected to get into the election mode,” the source said.

Difficult areas in the negotiations include rules of origin (ROO) that

prescribe the minimum processing which needs to happen in an FTA
partner country for a good to qualify for duty cuts. India has
apprehensions that liberal ROO may lead to items from EU countries,
including automobiles, processed food and engineering goods, getting

www.texprocil.org Page 31
 News Clippings

exported to India at preferential duties couched as UK products. The UK,

which has supply chains integrated with the EU, wants liberal rules.

In the area of IPR, the UK wants India to take on commitments beyond

the WTO’s TRIPS agreement to tighten its laws in favour of patent holders.
India, however, is resisting the move as it wants to protect its generic
industry and consumers and is against evergreening of patents.

On critical products

Final duty cuts on critical products such as Scotch Whisky and

automobiles, including the scheduling of the cuts, also have been difficult
to agree to, the source added.

Other areas where there is disagreement include opportunities for British

financial services professionals and easing of work visa rules for Indians.

Source: thehindubusinessline.com– Nov 06, 2023

HOME
*****************

www.texprocil.org Page 32
 News Clippings

WCO-IAPH guidelines for customs, ports released

The World Customs Organisation (WCO) and the International

Association of Ports and Harbors (IAPH) have released their first ever
guidelines on cooperation between customs and port authorities with a
view to strengthen trade and transport facilitation, compliance and supply
chain security.

The WCO is an intergovernmental organization of 185 member countries,

whose customs administrations process over 98 per cent of international
trade. Its main activities include developing standards for customs
procedures, capacity building of its members and promoting cooperation
between the customs administrations of its members. The IAPH is a global
alliance of 160 ports and 120 port-related businesses in 87 countries. The
main strategic focus areas of IAPH include climate and energy, risk and
resilience of port services and guiding the ports in digitalization.

Although the customs and port authorities have different responsibilities

at the ports, they have a shared interest in security and quicker movement
of vessels and import/export cargo besides enforcement of allied laws
(such as for dangerous cargo, hazardous goods), identification of
offending goods (such as narcotics) and facilitation of routine matters like
cargo storage/examination/disposal etc.

So, the customs and port authorities do cooperate on many issues but as
the practices differed in various ports, the WCO and IAPH worked
together to draw on the best practices at some ports and evolve a set of
formal guidelines for cooperation between the customs and port
authorities. The benefits of such collaboration can range from combating
corrupt practices, reducing costs and manpower, reaching higher levels of
service efficiency, increasing supply chain predictability, and improving
policy decision-making.

Essentially, the WCO-IAPH guidelines stress on institutionalization of the

cooperation between customs and port authorities through establishment
of a national port community council (NPCC) aiming to enhance the trust
between both sides and also with other government agencies and private
stakeholders to facilitate trade and secure the supply chain.

www.texprocil.org Page 33
 News Clippings

They also emphasize data collaboration between the customs and the port
authorities through convergence of digital platforms that will generate a
vast amount of data which, once mined, will help advanced analytics and
fresh insights into cargo flows throughout the trade and transport
continuum. The other recommendations include aligning security
programmes such as the authorized economic operator and international
ship and port facility security programme, development of interoperability
between customs digital systems and port digital systems and a shared
review using emerging technologies.

In India, the customs and the port authorities cooperate at the ports
informally and through participation in meetings of customs clearance
facilitation committees and permanent trade facilitation committees.
However, it appears the need for or the benefits of data collaboration
between the customs and the ports have not been perceived as strongly as
the WCO-IAPH guidelines suggest.

The national time release study, conducted by the Central Board of

Indirect Taxes and Customs this year, shows that even after grant of ‘out
of charge’ order by the customs for the imported goods, it takes 29.28
hours for the ‘direct port delivery’ cargo to go out of the port area, 69.02
hours for the cargo to leave the container freight stations and 96.18 hours
for the cargo to exit the inland container depots. So, the customs and the
port authorities can benefit by studying the WCO-IAPH guidelines and
finding ways to cooperate better with each other.

Source: business-standard.com– Nov 06, 2023

HOME
*****************

www.texprocil.org Page 34
 News Clippings

E-way bill generation surges to all-time high of 10.03 cr in

Oct

E-way bill generation in October has crossed 10 crore for the first time
since its introduction. This could be a reflection of the festival demand
which necessitated goods to be transported in large quantity.

Data from GSTN showed e-way bill generation touched 10.03 crore,
surpassing the previous high of 9.34 crore in August, this year. Experts
feel that apart from festival demand, higher compliance also contributed
to high e-way bill generation.

This will have some impact on GST collection for November. It is possible
that the movement of goods might have occurred in the same month of
consumption or even a month before that, which is why e-way bill
generation may have an impact on collection spreading over two months.

Tanushree Roy, Director (Indirect Tax) with Nangia Andersen India, said:
“An all-time high e-way bill generation is indicative of increased economic
activity. At the same time, the increase can be attributed to the ongoing
festive and upcoming marriage season which is further expected to fuel
consumer demand”.

An e-way bill is an electronic document generated on a portal, evidencing

the movement of goods and indicating whether tax has been paid. As per
Rule 138 of the CGST Rules, 2017, every registered person, who causes the
movement of goods (which may not necessarily be on account of supply)
of consignment value of more than ₹50,000 is required to generate an e-
way bill. This is required for movements between the two States and
within a State. However, a State or UT, with legislature, can decide the
threshold for the value of goods to be applicable for movement within its
boundary.

Gunjan Prabhakaran, Partner (Indirect Tax) with BDO India, said

increase in e-way bill generation is because of the festive season purchases
and replenishment of stocks by brands in the supply chain to meet the
anticipated demand for the Diwali season. “Also, increased scrutiny by
revenue authorities and better compliance at an assessees-end are some
of the reasons for increase in e-way bill generation,” she said.

www.texprocil.org Page 35
 News Clippings

Other driving force

Echoing the sentiment, Vivek Baj, Partner with Economic Laws Practice,
said while the primary reason in the surge appears to be higher volume of
movement of goods, it is also a testament towards tighter anti-evasion
methods adopted by GST mobile squad authorities stationed across India
to ensure absolute compliance of law.

“For fear of seizure of vehicle, confiscation of goods and demand of tax

along with equal amount of penalty that are being demanded by the
authorities on account of minor lapses during movement of goods, the
businesses are generating e-way bills regardless the minimum value of
consignment,” he said.

The increasing number of these bills could have an impact on revenue

collection, as evidence indicates that higher generation of e-way bills
would lead to higher tax collection. For example, data from GSTN show e-
way bill generation crossed an all-time high of 9 crore in March, resulting
in an all-time collection in April at ₹1.87-lakh crore. Similarly, on a
month-on-month basis, e-way bill generation rose to 9.34 crore in August,
and collection in September rose to ₹1.63-lakh crore. Though e-way bill
generation slowed a bit to 9.2 crore in September, collection surged to
₹1.72-lakh crore.

Source: thehindubusinessline.com– Nov 06, 2023

HOME
*****************

www.texprocil.org Page 36
 News Clippings

Indo Count Industries: A Vision for Future Growth

As the CEO of Indo Count Industries Ltd., I am proud to share our exciting
plans for future growth. Over the years, our prudent capital allocation
strategy has been a crucial pillar of our success. It has enabled us to make
strategic investments, positioning Indo Count as the largest global bed
linen player.

With an investment of over ₹1,000 crores, we have embarked on a journey

to achieve two-fold revenue growth in the future. Moreover, despite
significant capital expenditure, we’ve managed to maintain strong free
cash generation, leading to a reduction in our net debt from ₹900 crores
in FY22 to ₹589 crores in FY23.

Our expansion strategy includes multiple initiatives designed to de-risk

our business and increase our market reach. One such vital step is our
acquisition of GHCL’s home textile business. This strategic move not only
provides us with a complementary product base but also brings in
excellent talent and strong customer relationships. This combination is
poised to drive our market reach and growth prospects to the next level.

With this acquisition, we gain access to the Australian market, which is a

substantial home textile market, equivalent in size to the UK. This
becomes even more significant as India recently signed a Free Trade
Agreement with Australia.

This expansion helps diversify Indo Count’s global presence, ensuring we

are well-positioned for long-term success. Furthermore, we’ve
amalgamated our subsidiary, PSML, with the company to seamlessly
integrate business operations. This strategic move brings valuable assets
like land and buildings into our fold. We are utilizing these assets to add
approximately 68,000 spindles for spinning special yarns, contributing to
our overall margin enhancement.

In line with our vision, we have a detailed blueprint for increasing the
contribution of value- added segments to our topline. We are focusing on
promoting fashion, utility, and institutional bedding products that are
gaining traction in the market.

www.texprocil.org Page 37
 News Clippings

To support this, we have invested in a state-of-the-art Top of the Bed

(TOB) unit, which is now operational. Additionally, we are strengthening
our back-end operations to deliver value-added goods to both export and
domestic markets.

We are optimistic that these efforts will allow us to scale the share of value-
added products to 30% of our revenue in the future. Our domestic
business is also gaining traction with the successful launch of our brands,
Boutique Living and Layers. These brands have made a strong presence in
the Indian bed linen space, and we anticipate good growth numbers in the
near term.

Despite numerous external challenges, we had a successful close to FY23,

maintaining our performance. The industry faced headwinds such as
demand slowdown in international markets due to high inflation, supply
chain disruptions, and record-high commodity costs. Inflation was a
major challenge as consumers shifted their spending to essential products,
delaying discretionary purchases. We are proud that Indo Count
successfully navigated these challenges by focusing on expanding value-
added segments and brand-building initiatives.

In the past two years, we have completed multiple capacity and capability-
enhancing projects. We’ve modernized our Gokul Shirgaon spinning
capacity with compact spinning technology, and have added 68,000
spindles at our Hatkanangale (PSML) facility which have become fully
operational from Q2, FY2023-24. Additionally, we’ve increased home
textile capacity at our Kolhapur facility and invested in sewing facilities
and TOB capacity.

These developments allow us to serve our customers better and increase

the value-added quotient in our business. The seamless commissioning
and integration of these facilities will help us become more competitive
and efficient as demand continues to grow. India’s economic progress is
promising, and we believe the growing disposable income and aspirations
of the middle class will lead to increased demand for branded home textile
products, offering significant opportunities for local brands.

Indo Count Industries, with more than three decades of experience, is a

leading manufacturer and exporter of bed sheets, bed linen, and quilts
from India.

www.texprocil.org Page 38
 News Clippings

Our dedication to providing ultimate comfort to consumers is reflected in

the high-quality, luxurious bedding solutions produced in our state-of-
the-art manufacturing plants. Our product range includes bed sheets, bed
linen, quilts, premium sheet sets, fashion bedding, utility bedding, and
institutional bedding, all certified to meet prestigious international quality
standards.

We maintain an omnichannel presence for our branded portfolio and have

recently completed two licensed brand tie-ups with Jasper Conran and
Gaiam. We are committed to diversifying our geographical mix by
expanding our presence in the EU, UK, and Australia.

Our recent acquisition of GHCL’s home textile division positions us to tap

into a new customer base and further strengthen our market presence. We
are dedicated to evaluating our impact using a holistic ESG lens,
emphasizing sustainability and corporate responsibility.

We are focusing on minimizing our environmental footprint by

implementing measures such as a biogas plant for internal energy
consumption and various energy conservation initiatives. Water
management is another critical area where we are making strides to
address the global water crisis.

Our commitment to ESG principles goes hand in hand with our vision to
be more responsible, compassionate, maintain high standards of integrity,
be resilient, and continue innovating to inspire quality products.

As the CEO of Indo Count Industries Ltd., I am confident that our strategic
initiatives will not only lead us to a brighter future but also contribute to
our vision of becoming a sectoral benchmark in value creation and
corporate citizenship.

We look forward to the opportunities and challenges that lie ahead, and
we are committed to creating a sustainable and prosperous future for Indo
Count and our stakeholders.

Source: indiantextilemagazine.in– Nov 06, 2023

HOME
*****************

www.texprocil.org Page 39
 News Clippings

From the hub: Shades of distress colour Punjab's weaves

and drapes

“Last Sunday, I didn’t do good business. God willing, I should have a better
day today,” says 52-year-old Gurcharan Singh, who has been selling shirt
materials for over three decades in Chaura Bazaar, Ludhiana’s oldest
textile market.

From the crack of dawn, scores of men, women and children start
thronging the streets of Chaura Bazaar. Located opposite the Victorian era
clock tower, the market, which derives its name from its ‘wide’ streets, has
been the nerve centre of the town’s primary industry — textiles — for over
two centuries. The bazaar is filled with thousands of sellers like Singh who
deal in products such as apparel, woollen garments, suiting, hosiery,
under-garments, drapes, carpets, curtains, and so on.

Rajwant Maan (64), a farmer from neighbouring Phillaur across the Sutlej
river, who has been visiting the market since his childhood, has come to
buy clothes for his grandson’s wedding next month. But the market has
been losing its sheen over the. years, Maan says ruefully.

“Earlier, people would come to Ludhiana from all parts of Punjab to buy
clothes. However, the market here has not been able to keep pace with the
latest trends in the industry. Young people hardly come to these old
markets. They prefer buying from the malls which offer them the latest
global trends at reasonable prices,” he adds.

Ludhiana, Punjab’s Rs 20,000-crore textile hub, accounts for over 90 per

cent of India’s apparel production for the domestic market. But for the
past few years, the sector, which mostly comprises micro and small
businesses, have had repeated setbacks such as demonetisation, the
introduction of the Goods and Services Tax, the Covid-19 pandemic,
among others.

Sudarshan Jain, president, Knitwear and Apparel Manufacturers

Association of Ludhiana, says that the city’s mostly small and medium
industry-based production has taken successive blows in the past few
years. Cheap imports from neighbouring countries like Bangladesh, China
and Vietnam have also been a huge problem for the industry.

www.texprocil.org Page 40
 News Clippings

“At least 20 per cent of the roughly 18,000 odd micro and small
production units in the city have shut down since the pandemic. If things
are not placed in order, large players are also staring at financial defaults,”
Jain says.

The latest index of the industrial production (IIP) data series for the
month of August showed that manufacturing in the apparel sector has
fallen below the level of August 2011-12, when the new series started.

The successive disruptions in the supply side of the sector have also had
an impact on exports. Data sourced from the commerce ministry showed
that the total value of Indian readymade garment exports fell by nearly 15
per cent to $6,916 million during April -September 2023, down from
$8,117 million in the corresponding period last year. Meanwhile, exports
from Punjab have seen an almost 18 per cent decline over the same time
period.

“The demand is already broken in the European market with the ongoing
economic crisis due to the Russia-Ukraine war. With the outbreak of a war
in west Asia as well, our export prospects for this year look bleak. In the
American market, we are already at a disadvantage vis-a-vis Vietnam and
Bangladesh due to lower tariffs,” says Ashwani Aggarwal, general
manager, Nahar Spinning Mills, based in Ludhiana.

The distress in the city’s textile industry has not only affected producers
and exporters, but also the nearly a million strong migrant workers who
are engaged in some capacity or the other at every step of the value chain.
Nanhe Ram (44), who hails from Jharkhand, has been travelling to
Ludhiana for the past 18 years along with his cousins to work as a dyer in
one of the mills. Like hundreds of other migrants, he is no longer able to
get regular work.

“It’s the start of the festive season and we are still sitting idly here at the
chowk. Earlier, we would earn enough and head back home around
March. But now despite remaining here for so long, we have earned very
little. On top of that, living costs have also increased here,” he says.

Harish Dua, founder chairman, KG Exports, believes that one reason why
the Indian textile industry loses to China and other southeast Asian
neighbours in the world market is due to their cheap and skilled labour,
who are able to execute the latest demands of the market.

www.texprocil.org Page 41
 News Clippings

“Though we have a steady labour supply, they are not skilled. WE need to
develop a research and development facility along with training clusters
which will not only train the producers about the newest trends but will
also skill the labourers to run the newest machines. We also need to have
cheap housing clusters and transportation for them to lower their living
costs,” Dua adds.

To make the sector competitive, the central government has launched the
PM MITRA (Pradhan Mantri Mega Integrated Textile Region and
Apparel) scheme with a projected investment of nearly Rs 70,000 crore,
to create an integrated textiles value chain, right from spinning, weaving,
processing and printing to garment manufacturing at a single location.
Curiously, Punjab is missing among the list of seven states selected under
the scheme.

“Non-inclusion of any site under the scheme represents further harm to

the sector and the industry in Ludhiana, as it was a great opportunity for
the disintegrated sector to consolidate itself both horizontally and
vertically and make itself competitive. But perhaps this is the state of
affairs we have to live with,” rues Jain.

Source: business-standard.com– Nov 06, 2023

HOME
*****************

www.texprocil.org Page 42