Cotlook A Index - Cents/lb (Change from previous day)

03-06-2020 67.90 (+0.25)

03-06-2019 79.10

05-06-2018 99.60

New York Cotton Futures (Cents/lb) As on 05.06.2020 (Change from

previous day)

July 2020 60.15 (+0.15)

Oct 2020 59.66 (-0.07)

Dec 2020 59.61 (+0.90)

05th June

2020

Cotton and Yarn Futures

ZCE - Daily Data (Change from previous day)

MCX (Change from previous day)

June 2020 16240 (+80)

Cotton 11465 (-15) July 2020 16380 (-20)

Yarn 18850 (-45) Dec 2020 17100 (-490)

Government mulling making large firms disclose MSME dues:

Nitin Gadkari

Centre Releases Rs.36,400 Crore as GST Compensation to States

India, Australia upgrade ties, to renew talks on CECA

SC extends order of no coercive action against employers for non-

payment of full wages

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2 CITI-NEWS LETTER

-------------------------------------------------------------------------------------- Government mulling making large firms disclose MSME dues: Nitin Gadkari

Centre Releases Rs.36,400 Crore as GST Compensation to States

India, Australia upgrade ties, to renew talks on CECA

SC extends order of no coercive action against employers for non-payment of full wages

Employers claiming incapacity in paying wages must place balance sheets in court: Centre to SC

India appoints Brajendra Navnit as Ambassador to WTO

Closure of US retail units a huge blow to Indian textiles exports: GHCL MD

Covid-19 pandemic eats into consumer confidence, shows RBI survey

Unemployment rate falls to 5.8% in 2018-19 from over a four-decade high

India-Bangladesh trade via road resumes at Mahadipur; plan may be replicated at other land ports in

WB

Covid crisis: Uday Kotak says govt did well, now it’s India Inc’s turn to invest

Implementation of paperless process for grant of Industrial Entrepreneur Memorandum(IEM)

Finance Ministry puts a leash on expenses in times of Covid

India provides opportunity to nations looking to diversify supply chains from one country or region:

Foreign Secretary

Telangana adopts 3 pronged strategy to make agriculture profitable

Surat, a tinderbox

Gaurang Shah launches estore for handwoven weaves

----------------------------------------------------------------------------- Ireland named most likely EU country to recycle clothes

COVID-19 testing lab for RMG workers launched

An unbearable action,’ Bangladesh growth story may end as textile industry loses orders from European

companies

Fashion industry must move towards chemical circularity, says Laudes Foundation

Byborre raises €3.2 million for on-demand textile platform

New electronic fibers can be embedded in textiles as sensors

-------------------- --- ---------------------------------------------

NATIONAL

---------------------

GLOBAL

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3 CITI-NEWS LETTER

NATIONAL:

Government mulling making large firms disclose MSME dues: Nitin Gadkari

(Source: Economic Times, June 04, 2020)

MSMEs are considered the backbone of the Indian economy, contributing the bulk of

Indian employment, manufacturing and exports. Many such firms have been hit hard by

the COVID-19 crisis.

The government is mulling to make it mandatory for large companies to disclose their

dues to the micro, small and medium enterprises to ensure that timely payments get

made, Union Minister Nitin Gadkari said on Thursday.

The MSME minister conceded that despite various interventions, including promising

micro, small and medium firms that payments by the central government and its

undertakings will be made within 45 days of delivery of goods or service, a satisfactory

solution to the problem has been elusive.

MSMEs are considered the backbone of the Indian economy, contributing the bulk of

Indian employment, manufacturing and exports. Many such firms have been hit hard by

the COVID-19 crisis.

"We are thinking of various ways on how micro, small and medium (enterprises) can get

their money. One attempt is to make the bigger company declare whether they have paid

MSME or not and make the same binding for them. There is thought going on," Gadkari

said during an interaction with the small businesses focused industry lobby IMC.

Without elaborating on the details of the scheme being considered, Gadkari said the

payment issue is "very serious" and added that non-payment leads to working capital

becoming scarce for such businesses.

Gadkari also said the time is not correct to introduce any "strong legislation" on this front

as everybody is suffering in the current crisis, but assured stakeholders of coming out with

some solution.

Another scheme being considered is to partner with banks, wherein a bank pays the

supplier in a specified time and starts collecting interest from the company which has

received the goods or service, he said.

Gadkari also said the government is looking at a specially created "MSME Stock

Exchange", which will have such small businesses listed on it. The government will

provide equity of 15 per cent to those businesses which list on the platform.

The government will exit the investment by selling off its stake in two-three years and put

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4 CITI-NEWS LETTER

the funds into other businesses in need of money, he said, adding that work to make a

policy change is already underway.

Gadkari said the government's investment decision will be based on parameters like the

firm's credit rating, Goods and Services Tax being paid by the business, its bank

transactions, employment potential, exports and production.

Leading bourses already have dedicated SME platforms, where companies raising up to

Rs 25 crore are listed.

Home

Centre Releases Rs.36,400 Crore as GST Compensation to States

(Source: Press Information Bureau, June 04, 2020)

Taking stock of the current situation due to COVID-19 where State Governments need to

undertake expenditure while their resources are adversely hit, the Central Government

has released the GST Compensation of Rs.36,400 crore to the States/UTs with

Legislature for the period from December, 2019 to February, 2020 today.

The GST Compensation of Rs.1,15,096 crore for period April-November, 2019 had already

been released by the Central Government to the States/ UTs with Legislature.

Home

India, Australia upgrade ties, to renew talks on CECA

(Source: Financial Express, June 04, 2020)

India and Australia can now share the benefits of scientific and medical research and

development and open up a new phase of the Australia-India Strategic Research Fund to

promote innovative solutions for responding to and treating Covid.

India and Australia have decided to take their ties to the level of a comprehensive strategic

partnership with nine key agreements, including deepening trade exchanges, diversifying

energy cooperation to areas such as hydrogen and coal gasification and exploring the

possibility of launching the RuPay Card in Australia.

However, there has been no headway in the issue of market access in agriculture, with

both sides sticking to a commitment to continue negotiations.

The upgradation in the ties, announced at the first India-Australia Leaders’ Virtual

Summit attended by Prime Minister Narendra Modi and Prime Minister of Australia Scott

Morrison on Thursday, is significant as both the countries are looking at expanding trade

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5 CITI-NEWS LETTER

and economic ties as well as collaboration on building a globally-coordinated response to

Covid.

India and Australia can now share the benefits of scientific and medical research and

development and open up a new phase of the Australia-India Strategic Research Fund to

promote innovative solutions for responding to and treating Covid.

On the trade and investment fronts, India and Australia have agreed to encourage

expanded flows and re-engage on a bilateral comprehensive economic cooperation

agreement, negotiations for which were launched in May 2011. Till date, they have had

nine rounds of negotiations, with the last being in September 2015.

Bilateral trade was at $20.92 in FY19, with Indian export of goods and services at $5.17

billion and import at $15.75 billion. Australia’s cumulative investment in India is about

$10.74 billion, whereas India’s total investment in Australia is $10.45 billion. To diversify

bilateral trade, India and Australia will explore how major industries of both the countries

can integrate SME/MSMEs of the other country into their supply chains.

To boost investment, both sides will work to resolve the issue of taxation of offshore

income of Indian firms through the India-Australia Double Taxation Avoidance

Agreement. Australian Pension Fund has already invested $1 billion in India’s National

Investment and Infrastructure Fund. The countries will raise awareness among

Australian investors and superannuation funds of opportunities in India’s infrastructure

sector under the NIIF.

While Australian businesses will be made aware of opportunities through Make in

India and Smart Cities initiatives, Indian companies will seek investment opportunities

in Australia.

Advancements have also been made in the fields of agriculture and mining and processing

of critical and strategic minerals.

Home

SC extends order of no coercive action against employers for non-payment

of full wages

(Source: Economic Times, June 04, 2020)

The Supreme Court on Thursday extended till June 12 its earlier order of May 15 asking

the government not to take any coercive action against companies and employers for

violation of Centre's March 29 circular for payment of full wages to employees for the

lockdown period. A bench of Justices Ashok Bhushan, S K Kaul and M R Shah reserved

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6 CITI-NEWS LETTER

the verdict on a batch of petitions filed by various companies challenging the circular of

the Ministry of Home Affairs issued on March 29 asking the employers to pay full wages

to the employees during the nationwide lockdown due to the coronavirus pandemic.

In the proceedings conducted through video conferencing, the top court said there was a

concern that workmen should not be left without pay, but there may be a situation where

the industry may not have money to pay and hence, the balancing has to be done.

Meanwhile, the apex court asked the parties to file their written submissions in support

of their claims. The top court on May 15 had asked the government not to take any

coercive action against the companies and employers who are unable to pay full wages to

their employees during the nationwide lockdown due to the coronavirus pandemic.

The Centre also filed an affidavit justifying its March 29 direction saying that the

employers claiming incapacity in paying salaries must be directed to furnish their audited

balance sheets and accounts in the court.

The government has said that the March 29 directive was a "temporary measure to

mitigate the financial hardship" of employees and workers, specially contractual and

casual, during the lockdown period and the directions have been revoked by the authority

with effect from May 18.

Home

Employers claiming incapacity in paying wages must place balance sheets in

court: Centre to SC

(Source: Economic Times, June 04, 2020)

The Centre has justified in the Supreme Court its March 29 direction asking private

establishments to pay full wages to workers during the COVID-19 lockdown and said that

employers claiming incapacity in paying salaries must be directed to furnish their audited

balance sheets and accounts in the court. In an affidavit filed in the apex court, the

government has said the March 29 directive was a "temporary measure to mitigate the

financial hardship" of employees and workers, specially contractual and casual, during

the lockdown period and the directions have been revoked by the authority with effect

from May 18.

The affidavit filed by the Ministry of Home Affairs (MHA) said the direction was fully in

conformity with the provisions, scheme and objects of the Disaster Management Act and

it is not ultra vires. While requesting the top court to dispose of as infructuous the batch

of pleas challenging the March 29 notification, the government said the "impugned

notifications have outlived their life and adjudication of the same would only entail an

academic exercise as it would not be in the interest of public to seek recovery of salaries

paid to employees and workers for the said 54 days".

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7 CITI-NEWS LETTER

The government said it would neither be in the interest of justice nor in public interest to

adjudicate the validity of notification which operated only for 54 days -- from March 25

to May 17 -- to mitigate the financial hardships of crores of workers and employees. "In

the event this court is not inclined to dispose of the present proceedings as having become

infructuous and is inclined to adjudicate this matter on merits, the petitioners-employers

must be directed to furnish proof of their incapacity to pay wages and salaries in terms of

the order dated March 29, 2020 by placing on record their audited balance sheets and

accounts," the affidavit said. The affidavit has been filed as the apex court, while hearing

the matter on May 26, had asked the Centre to file counter affidavit within a week on the

issues raised in the petitions.

The MHA had passed an order on March 29 asking all employers to make payment of

wages to their workers without any deduction for the period their establishments were

under closure during the lockdown. The affidavit filed by the government has said that no

material has been placed on record to establish the contentions raised in the petitions that

employers are not in a financial position to pay their employees and workers. It said that

petitions have raised grounds of "financial hardship, incapacity or lack of desire" of the

employers to pay their employees or workers during the lockdown without taking work

from them. "It is respectfully submitted that this ground of financial incapacity is a legally

untenable ground to challenge a direction issued by the competent authority in exercise

of its statutory power," the affidavit said. It further said that these measures were

proactively taken by the government to prevent "perpetration of financial crisis within the

lower strata of the society, labours and salaried employees".

"There was a legitimate state interest in issuance of the said directions. The said directions

were neither arbitrary nor capricious. The same were also neither excessive nor

disproportionate....," it said, adding that the direction was issued as an economic and

welfare measure. The affidavit said the Centre has regularly assessed the situation and

after taking feedback from the experts in the field, it permitted opening up of the

commercial activities enabling the employees and workers covered by these directions to

resume work. "It is respectfully submitted that the said decision was taken by the

respondent Union of India to ensure that no financial hardship, detriment to the very

existence of the employers of such employees and workmen is caused and they are able to

resume their commercial activity so that the burden of paying salary without

work/business is mitigated," it said. It also said that through a letter dated March 20

issued by the Secretary (Labour & Employment) to the chief secretaries of all the states,

the Centre had said that employers of public/private establishments may be advised to

extend their coordination by not terminating their employees, particularly casual or

contractual workers, from job or reduce their wages amid the challenging situation of

COVID-19 pandemic. "A bare perusal of the aforesaid advice would reveal that to mitigate

the financial hardships which would have been caused to the employees including casual

or contractual workers (labours) during the lockdown, a temporary and one time measure

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8 CITI-NEWS LETTER

was provided to ensure continuous payment to such labours who belonged to the middle

or lower strata of the society," the affidavit said. While hearing the matter earlier, the apex

court had on May 15 observed that the March 29 notification was an omnibus order and

there was a larger question involved which needs to be answered. It has said there may be

small industries which are affected due to the lockdown and if they cannot earn, how are

they going to pay wages to their workers.

Home

India appoints Brajendra Navnit as Ambassador to WTO

(Source: Kirtika Suneja, Economic Times, June 04, 2020)

India has appointed Brajendra Navnit, a 1999 IAS officer of Tamil Nadu cadre as its

Ambassador to the World Trade Organization (WTO). The Appointments Committee of

the Cabinet approved his appointment for a period of three years from the date of

assumption of charge. Navnit has succeeded JS Deepak, a 1982 batch IAS officer of Uttar

Pradesh cadre, whose tenure as India’s Ambassador to the global trade watchdog ended

on May 31.

His appointment comes at a time when the world is grappling with the Covid-19 pandemic

and global trade is forecast to plummet to historic lows. WTO has projected the decline in

world trade to exceed the trade slump brought by the global financial crisis of 2008-09

with merchandise trade expected to decline 13-32% in 2020 due to the Covid-19

pandemic. WTO director general Roberto Azevêdo has decided to step down effective

August 31, earlier than planned. Besides, the multilateral trade watchdog’s key function

of dispute settlement has been crippled with the US having blocked the appointment of

judges.

The government also appointed Rajeev Topno as senior advisor to the ED, World Bank,

Washington DC, USA. Topno is a 1996 batch IAS officer of Gujarat cadre.

Home

Closure of US retail units a huge blow to Indian textiles exports: GHCL MD

(Source: Banikinkar Pattanayak, Financial Express, June 05, 2020)

In the textile business, about a fourth of our open orders globally have been cancelled, with

most of the cancellations coming from the US.

The Covid-19 outbreak and the consequent lockdown may have erased a fifth of annual

demand in the chemicals industry, says RS Jalan, MD at GHCL, a Rs 3,000-crore

conglomerate with interests in chemicals, textiles and consumer products. In an interview

to Banikinkar Pattanayak, Jalan says the closure of some 150 retail units in the US, the

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9 CITI-NEWS LETTER

single-largest textiles and garments market, has also dealt a blow to Indian exporters. A

fourth of GHCL’s textiles orders have been cancelled and another 35% of its open orders

have either been pushed back or gone through a volume reduction. Edited excerpts:

The novel coronavirus pandemic has wrought havoc on the chemicals

industries? How has it affected GHCL?

With the announcement of the lockdown, all consuming industries, particularly glass and

detergents, closed down across the country. With consumers shutting down and local

authorities enforcing the lockdown, GHCL had to shut down operations. However, as we

were carrying sufficient inventory at the plant as well as our various depots, we could give

assurance to our customers that in the event of a phased resumption of operations, we

could meet their requirements. We restarted our plant at the end of April at reduced

levels, as demand for detergents was stabilising. However, the glass plants were not

starting up as downstream industries, including construction, auto and liquor, had not

opened up. In effect, we, as an industry, are estimating a demand erosion of about 20%

on an annualised basis.

In the textile segment too, the effect on GHCL has been pretty much the same as it has

been for the entire industry. We decided to close down our factories right after the Janta

Curfew. Our home textiles plant got permission to operate partially in early May and we

are currently confecting coveralls or body suits for doctors. Our weaving and processing

operations have partially commenced too and we will ramp up production based on the

directive from the government. On the exports front, almost all of the retail units in the

US, which is our single largest market, have come to a grinding halt, with about 150

retailers shutting down stores across the country. This undoubtedly will have a huge

impact on the inventory build-up in the country and will push back purchase decisions by

several months.

Have we witnessed any cancellation/renegotiation of already-forged export

contracts? If yes, what is the extent of cancellation/renegotiation?

We are normally exporting to Bangladesh, Sri Lanka and Southeast Asian nations. These

countries did not have a lockdown till mid-April and so port operations continued. We

are able to meet our export orders in March. Now most of these markets are closed, so the

processes are delayed and we are witnessing demand erosion there also. While there have

been no re-negotiations, there have been some cancellations. Also there are indications

that the marketers have softened and buyers are looking at lower pricing. In the textile

business, about a fourth of our open orders globally have been cancelled, with most of the

cancellations coming from the US. Another 35% of our open orders have either been

pushed back or have encountered a reduction in volume.

How has been the domestic demand for soda ash and sodium bicarbonate in

the past one month? What are your revenue and profitability forecasts for

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10 CITI-NEWS LETTER

2020-21 vis-a-vis 2019-20?

Demand was normal until the lockdown was announced. Thereafter there was a complete

closure. We are witnessing some resumption in the detergent and pharma space.

However, all other consuming industries — including glass and chemicals — remain

closed. As of now, we are estimating a demand erosion of at least 20% and this will have

a huge impact on our business. For the textiles business, we do not sell home textiles

domestically, but based on various reports coming in, the domestic demand has clearly

witnessed a serious setback.

What about the labourers, especially the migrant ones?

Our workers are returning to the plant, in keeping with the permission granted to us to

operate. However, there has been an exodus of migrant laborers to their hometowns,

mainly in Uttar Pradesh and Bihar. We feel it will take a while for a bulk of these people

to return to work. There is, hence, a strong likelihood of a labour shortage in the short

term, once we fully resume functioning.

What about your liquidity issue and is the credit flow adequate?

The situation at the moment is very volatile, creating uncertainty about the future outlook.

However, at this point in time, we are not facing any liquidity issues and we are in the

process of strengthening our cash flows with adequate measures to ensure adequate cash

flows.

Home

Covid-19 pandemic eats into consumer confidence, shows RBI survey

(Source: Anup Roy, Business Standard, June 05, 2020)

Consumers reported sharp cuts in discretionary spending and also do not expect much

improvement in the coming year, the RBI survey said

Consumer confidence collapsed in May, and the expectation for the next one year is that

Indian households will remain pessimistic, the survey by the Reserve Bank of India (RBI)

shows.

“Consumer perception on the general economic situation, employment scenario and

household income plunged deeper into contraction zone …; while expectation on general

economic situation and employment scenario for the year ahead were also pessimistic,”

the RBI Consumer Confidence Survey, released on the central bank’s website, showed.

The RBI has not yet released the Industrial Outlook Survey, which had showed “stark

pessimism” among manufacturing companies, which were expecting a deterioration in

sentiment across sectors for the just concluded fourth quarter of the previous fiscal year,

and the current first quarter of 2020-21.

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11 CITI-NEWS LETTER

The survey was conducted in 13 major cities during May 5-17 through interviews on the

phone because of the nationwide lockdown. A total of 5,300 households participated in

it.

The RBI said the current situation index (CSI) had touched a historic low and the future

expectations index (FEI) for the year ahead also recorded a sharp fall, “entering the zone

of pessimism”.

Consumer spending remained intact, mostly due to relative inelasticity in essential

spending. “Consumers, however, reported sharp cuts in discretionary spending and also

do not expect much improvement in the coming year,” the RBI survey said.

Households also expect a sharp rise in prices in the next three months as well as the next

year to come, notwithstanding the RBI’s own expectation that inflation would taper off in

the second half, which it used as a justification to cut rates on May 22.

The Households’ Inflation Expectations Survey, conducted in 18 major cities, and based

on responses from 5,761 urban households, shows that people expect a sharp rise in

inflation.

“Households’ median inflation perception and expectations

increased sharply in May 2020 as compared with the March

2020 round of the survey,” the RBI said, adding three months

and one year ahead median inflation expectations rose by 190

and 120 basis points, respectively, over the previous round.

The households are now expecting increasing price pressure on

food products; more households expect general prices and

inflation to rise over three months as compared to previous

round.

However, the households expect prices of all product groups, especially the cost of

housing, to ease over a year ahead.

Real private final consumption expenditure (PFCE) is expected to

decline by 0.5 per cent during 2020-21 but likely to record 6.9 per

cent growth during 2021-22. Real gross fixed capital formation

(GFCF) is likely to register negative growth of 6.4 per cent in 2020-

21 but likely to grow by 5.6 per cent in 2021-22.

“Forecasters have assigned the highest probability (86 per cent) to

real GDP growth lying below 2.0 per cent in 2020-21,” the RBI said,

adding, for 2021-22, highest probability (19 per cent) has been

assigned to GDP growth lying between 6.0 and 6.4 per cent.

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12 CITI-NEWS LETTER

Professional forecasters

Even as the RBI did not give its own projections on inflation and growth, even as it said

the economy will contract in the current fiscal year, a group of 22 professional forecasters

indicated the real gross domestic product (GDP) growth rate could be a negative 1.5 per

cent in 2020-21, but could rise to a positive 7.2 per cent in 2021-22.

Real gross value added (GVA) growth could fall to a negative 1.7 per cent in 2020-21 and

rise to 6.8 per cent in 2021-22.

Home

Unemployment rate falls to 5.8% in 2018-19 from over a four-decade high

(Source: Somesh Jha, Business Standard, June 05, 2020)

The unemployment rate in 2017-18 had risen to 6.1%, compared to 2.2% in 2011-12,

according to the results of the Periodic Labour Force Survey released by the National

Statistical Office.

The unemployment rate in India fell to 5.8 per cent in 2018-19 from over a four-decade

high the previous year, according to official data released on Thursday.

The unemployment rate in 2017-18 had risen to 6.1 per cent, compared to 2.2 per cent in

2011-12, the previous survey, according to the results of the periodic labour force survey

released by the National Statistical Office. Beginning in 2017-18, the survey has been

conducted on an annual basis between the months of July and June.

The labour force participation rate (LFPR) – the proportion of population working or

seeking jobs – inched slightly up to 50.2 per cent in 2018-19 from 49.8 per cent in 2017-

18. This is for the age group of 15 years and above.

“The year 2017-18 was difficult because of the effect of demonetisation and the Goods and

Services Tax (GST) which had also reflected in the high unemployment rate. So ideally,

2018-19 should have shown an improvement but it has not changed significantly,” Centre

for Monitoring Indian Economy Managing Director (MD) and Chief Executive Officer

(CEO) Mahesh Vyas said.

Between 2017-18 and 2018-19, the joblessness rate dipped from 5.7 per cent to 5.2 per

cent for females and from 6.2 per cent to 6 per cent for males. In villages, the

unemployment rate went down to 5 per cent from 5.3 per cent and in cities it stood at 7.7

per cent from 7.8 per cent the previous year.

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13 CITI-NEWS LETTER

Among youth, in the age group of 15-29 years, the

unemployment rate declined from a high of 17.8 per cent to

17.3 per cent, the official data showed.

The participation of females in the labour force improved

from 23.3 per cent in 2017-18 to 24.5 per cent in 2018-19. For

males, it declined from 75.8 per cent to 75.5 per cent. However, while the LFPR was better

in rural areas, it remained flat in cities.

The PLFS report was released on Thursday after an official committee gave approved it

the previous day. The government had withheld the release of the PLFS report of 2017-18

last year, even after the approval of the top statistical body National Statistical

Commission, prompting its then chairman and a member to resign from their posts.

However, after the general elections concluded in May 2019, the government released the

report which showed the unemployment rate touching a 45-year high. The government,

however, had said that the figures of 2017-18 were not comparable with older numbers —

a claim which was contested by data experts.

Home

India-Bangladesh trade via road resumes at Mahadipur; plan may be

replicated at other land ports in WB

(Source: Abhishek Law, The Hindu Business Line, June 04, 2020)

Exports to Bangladesh, especially via road, have resumed from the Mahadipur land port,

in Malda district of West Bengal. This followed a meeting of exporters and transport

operators in the region with local authorities, urging them to resume the trade via

road……..

Home

Covid crisis: Uday Kotak says govt did well, now it’s India Inc’s turn to invest

(Source: Financial Express, June 05, 2020)

The MSME guarantee scheme, the CII President, said was likely to find its mark. “The Rs

three lakh crore is likely to work and the money should be disbursed sooner than

October,” Kotak said during a media interaction.

CII president and banker Uday Kotak on Thursday said that while the downgrade of the

Indian economy by Moody’s was a ‘warning shot’, the government had done well to spend

to mitigate the stress in the economy and now it was the private sector’s turn to invest.

Kotak exhorted India Inc to cash in on the rally in the stock markets to raise capital and

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14 CITI-NEWS LETTER

not be too fussed about the price. However, he cautioned it would not be right to assume

that the economy is fine simply because the markets were strong.

“We need changes in govt policy and we also need to change,” the CII chief said. Kotak

asked industry to invest, adding that without investments we could not create enough

sustainable jobs. He recommended that builders clear their inventory at lower prices and

move on.

Kotak also defended Reserve Bank of India’s stance on interest waivers for loans under

moratorium saying it could not be an ‘unequal game’ where depositors were paid interest

by the banks but borrowers did not pay interest. Kotak was responding to a question on

the ongoing case in the Supreme Court on waiver of interest during the moratorium

period. “The depositor’s trust must be protected,” Kotak said. The new CII chief observed

that loan growth was sluggish because customers that banks were willing to lend to were

shy of borrowing and banks were hesitant to lend to borrowers with weak balance sheets.

Observing that this is the first time we have seen reverse migration, the new CII president

said industry must make it attractive for labour to come back. He said the ‘short-term

orientation’ of some parts of industry towards labour needed to change and that they

needed to be provided with social security. Given there is broadband connectivity in rural

India, Kotak said it was possible to set up businesses in the hinterland now that there was

also trained manpower.

The MSME guarantee scheme, the CII President, said was likely to find its mark. “The Rs

three lakh crore is likely to work and the money should be disbursed sooner than

October,” Kotak said during a media interaction. T V Narendran, MD and CEO, Tata

Steel observed there was a need to reimagine India from the healthcare point of view with

sustainable and qualified manpower. The timeline for the private investments would

depend on how the pandemic played out over the next few months. He said normalcy

would return by the fourth quarter of current financial year, if the lockdowns were not

extended.

“Certainly in India we expect that by fourth quarter, things should start getting back to

normal, he said. “Next year we may not be able to come back to pre-Covid levels, but we

will certainly be back to positive growth and that should create positive sentiment,” he

further said. Narendran also said that government is already spending on infrastructure

which is a demand multiplier. Sanjiv Bajaj, chairman and managing director (MD), Bajaj

Finserv, vice-president CII said that it was important to kick-start the economy in next

few months.”We have seen that, if money is put too early in the hands of people where

they are still not comfortable with their own safety and security, then that money gets

saved rather than spent,” he said.

Home

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15 CITI-NEWS LETTER

Implementation of paperless process for grant of Industrial Entrepreneur

Memorandum(IEM)

(Source: Press Information Bureau, June 04, 2020)

Applications for IEM/IL under I(D&R) Act, 1951 are currently accepted through the IEM

portal at https://services.dipp.gov.in. Through this portal, applications

for acknowledgement of IEM – Part A (for establishment of business) and IEM – Part B

(upon commencement of commercial production) are filed online by entrepreneurs of

prescribed industrial undertakings.TheAcknowledgement Certificate of the IEM is issued

physically on paper and scanned copy is uploaded on the portal. Applications for any

Amendments to the IEMs are, however,filed manually and Acknowledgment Certificates

are issued physically on paper with scanned copy uploaded on the portal. The

Acknowledgment Certificates are thereafter emailed to the applicants.

With a view to enhance transparency and ease of doing business, the Department for

Promotion of Industry and Internal trade (DPIIT) has enhanced the IEM portal. The

enhanced portal offers online filing of applications for IEM – Part A, Part B and also for

Amendments.All applications shall be processed in paperless mode and Acknowledgment

Certificates with QR Code shall be issued electronically. The applicants shall also be

notified vide email and SMS instantaneously upon approval. Concerned state government

shall also be notified by email simultaneously.

Henceforth, no application for IEM – Part A, IEM – Part B and Amendment to IEM

already issued shall be filed physically. No physical certificates shall be issued. The

electronic certificates issued may be verified online with the assigned QR code.

Home

Finance Ministry puts a leash on expenses in times of Covid

(Source: Gaurav Noronha, Economic Times, June 05, 2020)

The finance ministry has barred all ministries and departments from proposing new

schemes in FY21, barring those announced under the Pradhan Mantri Garib Kalyan

Yojana and the Atmanirbhar Bharat Abhiyan, to cope with spending needs due to the

Covid-19 crisis amid an economic slump. Schemes already approved for this fiscal year

have also been put on hold until the end of March 2021 as per the latest directive from

Department of Expenditure in the finance ministry that ET has seen. “It may be

appreciated that in the wake of Covid-19 pandemic, there is an unprecedented demand

on public financial resources,” the directive said. “There’s a need to use resources

prudently in accordance with emerging and changing priorities,” it said. The

government’s tax revenues have fallen because of the lockdown imposed to curb the

outbreak, putting further strain on the budget. This is the second such expenditure check

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16 CITI-NEWS LETTER

due to the coronavirus outbreak after curbs on spending in the first quarter were

announced on April 8. First-quarter spending by most ministries and departments was

restricted to 15-20%. This was followed by a freeze on dearness allowance increases for

government employees.

The government has raised its borrowing target for the current year to Rs 12 lakh crore

from Rs 7.8 lakh crore estimated in the budget. Additional spending on account of relief

packages announced to counter the social and economic impact of the Covid-19 outbreak

is pegged at 1% of GDP by experts. The latest move has come after the expenditure

department continued to receive many new proposals for 'inprinciple' approval. The

ministry has disallowed the release of additional funds through budgetary provisions by

reappropriation to schemes that do not comply with the order. “This shows the fiscal

constraint the government is facing,” said NR Bhanumurthy, professor at the National

Institute of Public Finance and Policy.

Revenues are going to fall sharply and, given the situation, this is one way of containing

expenditure, Bhanumurthy said. “It means they are not going to spend on anything they

passed in the FY21 budget announced in February,” he said. The fiscal deficit swelled to

4.6% of GDP in FY20, exceeding the 3.8% target. Experts project this year’s deficit will

widen to 6-7% against a target of 3.5%. Economists have called for a re-evaluation of the

budget numbers considering the drastic change in the situation between now and four

months ago due to the coronavirus outbreak.

Home

India provides opportunity to nations looking to diversify supply chains from

one country or region: Foreign Secretary

(Source: Dipanjan Roy Chaudhury, Economic Times, June 04, 2020)

Foreign Secretary Harsh Vardhan Shringla without naming China, which has emerged as

the manufacturing hub of the world, has suggested that countries ”will be looking for

maximum diversification of their production and supply chains in the medium to long

term, weaning away from extreme dependence on any one particular country or region.”

He emphasised that this phenomenon provides India with an important opportunity to

develop itself into a low-cost manufacturing hub which will position India as the preferred

investment destination. Shringla further pointed out that over-reliance on a particular

country or region for sourcing Indian imports, or as markets for Indian exports, requires

a re-think. “In the changed times and in the event of disruptions in our supply chains,

countries around the world will be looking for maximum diversification of their

production and supply chains in the medium to long term, weaning away from extreme

dependence on any one particular country or region,” Shringla suggested in a speech

delivered to NASSCOM virtually on Wednesday. “This offers us with an important

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17 CITI-NEWS LETTER

opportunity. Developing India into a low-cost manufacturing hub will help us position

ourselves as the preferred investment destination,” he said and referred to India’s highly

functioning democratic systems and high levels of transparency in governance which are

important to build investor confidence. It is pertinent to point out here that China’s

opaqueness has been often been questioned by governments and business groups from

across the world. “Combined with the ease of doing business and easily accessible capital,

India is a promising manufacturing destination. We have to bank on our strengths and

plug in the gaps, wherever possible.”

Pointing out that Indian industries and business chambers are an important part of

economic diplomacy and global economic outreach, the Foreign Secretary noted,

“Broadly, the Indian industry is expected to think of business and lifestyle models that

were easily adaptable, ensuring that business and commerce can run smoothly, even in

the times of a crisis.” “Companies and industries, across the world and even in India, are

being pushed to ensure that their resilience capabilities are developed in order to face the

repercussions of unexpected events and to maintain elasticity helping them to return to

the original state of business quickly. This will require initiatives that restructure the

internal working of the businesses and their wider networks.” Referring to anxiety among

Indian citizens and industry about restrictions on H1B visa, Shringla said, “the

Government of India has closely consulted all stakeholders and engaged with the US

Government on this issue. Prime Minister had taken this up, along with the issue of the

totalization agreement, during the visit of President Trump to India in February 2020.”

“The onset of the COVID-19 pandemic in the U.S. and the attendant impact on the U.S.

economy has led to a change in the situation. We need to adopt a realistic yet effective

approach. Accordingly, our approach has been to work at the diplomatic level and deal

with each specific issue one at a time. We were able to intervene early on in our lockdown

with the US Government on the issue of temporary relief for H1B visa holders whose visas

were expiring in this period, on a case-by-case basis.” “…High skilled Indian professionals

working in the US through H1B and related non-immigrant visa regimes bridge the

crucial skill gap and provide technological and competitive edge to the US companies. We

have also highlighted that high-skilled Indian professionals are engaged in the fight

against COVID across various fields including doctors, nurses, tech workers developing

solutions for companies fighting the epidemic. We hope the review of non-immigration

visa by the US Government will take into account the long term benefits of H1B visa for

US competitiveness and not affect provision of essential services at this critical hour.”

This month’s NFAP (National Foundation for American Policy) study has shown that the

unemployment rate for workers employed in Computer Occupations was actually lower

last month than it was in January 2020. Similarly, the CATO study’s results on H-1B

employers paying the professionals about 20% higher than the average market wage have

also been highlighted.

Home

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18 CITI-NEWS LETTER

Telangana adopts 3 pronged strategy to make agriculture profitable

(Source: VV Balakrishna, Indian Express, June 04, 2020)

The State government adopted a three-pronged strategy to make agriculture profitable.

Accordingly, it will constitute two committees and a development centre.

The State government adopted a three-pronged strategy to make agriculture profitable.

Accordingly, it will constitute two committees and a development centre. The

government will constitute an Agriculture Products Marketing Committee, comprising

experts in agriculture and marketing fields, to study the demand for various crops in the

market and suggest to farmers which crop would be financially beneficial to them.

The government will also constitute an Agriculture Research Committee with experts to

suggest improvements in agriculture practices, which includes mechanisation. As the

regulated crop practice, which will begin this year, will be a permanent feature, Chief

Minister K Chandrasekhar Rao on Wednesday decided to constitute the committees for

the benefit of farmers.

Farmers must grow crops that give nutritious food, says KCR

The CM, who has been conducting review meetings with agriculture officials for the last

three days, advised farmers to cultivate the crops as per the recommendations of the

committee. They should raise crops that have higher demand. The Agriculture

Department too should plan accordingly every year, Rao suggested.

The CM also stressed on the need to eat nutritious food and said farmers too should grow

similar crops so that the living standards of people will increase and their immunity

strengthens. The CM directed officials to devise plans to improve the productivity besides

increasing the production. The government will set up a Cotton Research and

Development Centre to help boost the crop’s productivity. Cotton is the largest crop in the

State and has a great demand.

The CM said that owing to the deterioration in quality of cotton crops, farmers should

ensure waste must not mix with cotton at the time of plucking. The government will also

focus on growing vegetables, ginger and garlic, which are now being imported from other

states. Rao mooted changes in the function of the Horticulture Department. The State will

also set up a statistical wing at Agriculture Department to enumerate the crops every year.

Additional Director of Agriculture was appointed as the chief statistical officer.

Home

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19 CITI-NEWS LETTER

Surat, a tinderbox

(Source: Anupama Katakam, Frontline, June 04, 2020)

Gujarat’s industrial zones and its shipping, fisheries and handicraft sectors, besides its

medium, small and micro entreprises (MSMEs), employ lakhs of people from across the

country. Census 2011 says there are 2.9 crore intra- and inter-State migrants in Gujarat.

Surat in southern Gujarat, a hub of diamond cutting and polishing as well as textile trade,

is a draw for workers, both skilled and unskilled, from within and outside Gujarat. An

estimated 70 per cent of Gujarat’s informal workforce is based in Surat.

When the lockdown was announced, many employers in the Surat belt apparently

promised to look after their workers during the shutdown. As the weeks went by and the

lockdown kept on getting extended, employers reneged on salary promises citing financial

constraints. Workers began to get restive as they ran out of money and it became hard to

pay for food and board. Eyewitness accounts say thousands of men slept on Surat’s

pavements or tried to find shelter in public spaces.

The government made a few feeble attempts at feeding and setting up camps for migrants.

Non-governmental organisations (NGOs) and citizen volunteers tried to fill the gap, but

the scale of the crisis was too overwhelming. The breaking point came in early April when

migrant labourers went on a rampage on the streets, setting fire to carts and public

property. About 80 migrants were arrested. A month later, lakhs of migrants were still

stranded in Surat. Three more incidents of violence were reported, the worst on May 9

when thousands came out on the streets when they learnt that the Odisha government

had cancelled three trains assigned to take back migrants. Some 200 workers were

arrested.

A study by the Gujarat government’s Centre for Social Studies and Department of

Education shows that Surat’s powerloom industry and textile sector employ around 12

lakh workers, of whom 7.5 lakh are from Uttar Pradesh, Bihar and Odisha. An estimated

2 lakh construction workers and 1.5 lakh unskilled labourers find employment in the

industrial zone of Hazira.

Ashok Shrimali from SETU: Centre for Social Knowledge and Action, an organisation

based in Ahmedabad, said that workers in Gujarat were grouped according to their skills.

For instance, the entire workforce of construction labourers may come from one district

of Bihar or Uttar Pradesh.

In mid May, some NGOs and Jignesh Mevani, independent Member of the Legislative

Assembly, brought to public attention how 70,000 workers were being held captive by

their contractors in the Mora-Hazira belt near Surat. Mevani told Frontline that he had

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20 CITI-NEWS LETTER

spoken to several workers and their condition was grave. In a letter to Chief Minister Vijay

Rupani, which Mevani shared with the media, he said:

“We [he and a few NGOs] have found that all of the workers who we spoke with have not

received wages since the lockdown. The industries are running at a low capacity, and the

few workers working there during the lockdown receive only lunch. The panchayat

support has been woefully inadequate—some workers report that they received only ten

days of ration in the lockdown which has extended for over 50 days. Many of the workers

have been threatened by their landlords that they will be evicted. In one case, the water

supply of the household has been cut off. The administration has stalled the returning

process for over 10 days. In addition to that workers are saying that they are being charged

Rs.700 per head to go back home. Instead of ensuring their timely payment of wages and

adequate ration, we have been responsible for keeping them poor, hungry and desperate

to go home. A worker said to us that he would rather have ‘namak and roti’ with his

parents than suffer here.”

With little help from the governments of Gujarat and their own home States, migrant

workers in Surat began the long march home. Those who saw them on the highways say

it was a humanitarian crisis of the worst kind. Anand Mazgaonkar from the Gujarat

Sarvodaya Mandal said: “It has reduced to a trickle now, but in the early days there were

hundreds on the road. The saddest thing was that during the day it was too hot to walk,

so they waited until night. At night the police said there was curfew and would not allow

them to walk. Many began walking through fields and finding small byroads to get on the

highway. They are ordinary workers. Why should they have to sneak through at night like

criminals?” He spoke of an incident where the police promised to help transport workers

to the next town but then left them in the lurch in the middle of nowhere without any

explanation.

“There has been a complete breakdown in the State’s machinery,” Mazgaonkar said. “In

Surat, the municipal corporation provided them [migrants] shelter in what appear to be

homes for beggars and the homeless. We went to some of them but did not find any

migrants. Contractors had been assigned to find people and house them in these shelters.

Even that seemed to be a racket. On speaking to several migrants, we found that they had

registered wherever they could as they were told this was the process to get on a train. It

is anyone’s guess what happened to those forms, because only those who could pay or had

some connection via their labour contractor could get on a Shramik Special. In fact, train

schedules were not revealed even when NGOs tried to help with online services. Anecdotal

evidence suggests that most have found their way home on their own. Truck drivers were

giving lifts and it seems like the administration has turned a blind eye.”

A tehsildar in Ahmedabad told Frontline that it could take months for the government to

send back the migrants as one train carried a maximum of 1,200 people. “We are hoping

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21 CITI-NEWS LETTER

the lockdown lifts and workers can go back to work and this problem is off our hands,” he

said.

Shrimali from SETU said: “The migrant labour issue in Gujarat has been simmering for

some time. SETU has been working on the trends and patterns of Gujarat’s migrants for

several years. We believe that because contractors violate registration rules, the issue was

never understood until the pandemic came and this invisible workforce made its presence

felt.” He explained that construction labourer is, for instance, required to be registered

with the State’s Building and Construction Board. Yet very few are registered, which

enables the contractor to violate labour laws. Companies perpetuate the practice by

turning a blind eye.

Home

Gaurang Shah launches estore for handwoven weaves

(Source: Fibre2Fashion, June 04, 2020)

Textiles and Indian heritage fashion innovator Gaurang Shah has launched his estore.

The e-commerce initiative is part of the award-winning designer's strategy to fuel his

brand growth and tap e-consumers yearning his signature handwoven weaves from places

where he doesn’t have an offline store presence. The estore will also support weaver

sustenance.

The online store shop.gaurang.co, which also backs a community of his 800+ workers and

several hundreds of artisans, will feature a range of classic, versatile, and statement

pieces—all handwoven which until today was only available for purchase in the brand's

popular 6 Indian and 2 international brick-and-mortar stores.

“This initiative expands the brand-consumer outreach and aims to provide real-time

access to own latest hand-woven arrivals. This also serves our greater purpose to support

the ecosystem and sustenance of weavers using the power of e-commerce,” said Shah in a

press release.

“I wanted our online store to amplify the voice of India’s jamdani craftsmanship plus

fortify our efforts to further encourage, promote and preserve our weaving heritage.

Online shopping will also enable an increase in consumer desire for Indian fashion, build

its inventive appeal, and the power of wearing heritage clothing as self-expression," added

Shah who is known for his exquisite handcrafted jamdani masterpieces and signature

sarees.

Shoppers will get access to the finest, inventive fabric fusions, motifs, colour, and textures

in different sizes like the in-store range created in the looms of Shah’s 800+ growing

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22 CITI-NEWS LETTER

weaver community. The designer collection line infuses yarns like khadi, muga silk, tussar

silk, organza, and silk.

Separately, to promote new talents, Shah has now launched an in-store pop-up initiative

for upcoming designers to promote their work through a series of pop-up shows. The in-

store pop-up show will debut its first event in Hyderabad on June 10 for 3 days wherein

he will showcase 100 exclusive works of four textile designers: Ujjawal Dubey, Anjul

Bhandari, Mayyur R Girotra and Sakshi Mehra.

Home

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23 CITI-NEWS LETTER

GLOBAL

Ireland named most likely EU country to recycle clothes

(Source: Fashion United, June 05, 2020)

UK-based energy comparison company SaveOnEnergy has found that one positive aspect

of the coronavirus pandemic is a consumer change in attitude towards old textiles and

recycling clothes.

In January of this year, the European countries contributing the most to textile waste

were revealed, with Italy taking the lead, followed by Portugal and Austria.

SaveOnEnergy is now reporting a surge of environmental consciousness, as people turn

to recycling centers to dispose of unwanted items. The British cleaning service End of

Tenancy Cleaning has recently relayed a 500 percent increase in Google searches related

to recycling, including the question “when will recycling centers reopen”.

Research commissioned by the energy company found that, in the last 30 days, 12,670

people in Ireland have been engaging in Google searches related to “clothes recycling”,

making it the most recycling-minded country in the EU. Germany and the Netherlands

also showed high results, with 9,390 and 6,840 recycling searches, respectively.

The other side of the spectrum includes European countries who searched information

on recycling clothes the least. The research showed that residents in Luxembourg,

Slovenia and Slovakia did not seem to prioritize recycling, with only 330, 300 and 270

Google searches.

SaveOnEnergy also found that shoes and jeans are the items that are recycled most

frequently within the European countries included in the research. More specifically,

shoes are the most recycled product in 70 percent of the 10 countries, including Ireland,

the Netherlands and Spain, while jeans are most commonly recycled in 30 percent of the

10 countries, including Germany, France and Italy.

Home

COVID-19 testing lab for RMG workers launched

(Source: Financial Express, June 04, 2020)

A COVID-19 testing lab for the country’s readymade garment workers was launched at

Chandra on Thursday.

The lab has the capacity to test 400 samples daily.

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24 CITI-NEWS LETTER

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in cooperation

with Diabetic Association of Bangladesh took the initiative to set up three PCR

(Polymerase Chain Reaction) laboratories at Chandra, Tongi and Naraganganj.

As part of the joint move, the first PCR COVID-19 testing lab at Chandra was launched

through a video conference. The rest two will be launched shortly.

Private industry and investment advisor to Prime Minister Salman F Rahman, Commerce

Minister Tipu Munshi, Health Minister Zahid Maleque, Dhaka North City Corporation

Mayor Md Atiqul Islam, BGMEA President Dr Rubana Huq, Bangladesh Textile Mills

Association former president MA Matin Chowdhury and BADAS President Professor Dr

AK Azad Khan, among others, were present during the launching ceremony.

Speaking at the event, speakers stressed the need for isolation and quarantine to minimise

the spread of coronavirus in the different industrial zones.

Salman F Rahman called on large companies with big factory premises to arrange

isolation facility for their workers.

DNCC Mayor Atiqul said that more testing of samples are required to identify the infected

workers, isolate them and provide the required treatment.

BGMEA President Dr Rubana Huq said that the trade body has signed agreement with

BADAS and a few other private hospitals for isolation of the infected RMG workers.

Home

An unbearable action,’ Bangladesh growth story may end as textile industry

loses orders from European companies

(Source: Amit Agrahari, TFI Post, June 04, 2020)

Encouraged by above 8 percent growth, Bangladeshi foreign minister made some callous

and unnecessary statements on the matter of the Citizenship Amendment Act in India

and said that Bangladeshi people do not need to cross the border to get in India territory,

as they have better quality of life Bangladesh.

But, tables turned at odds with Bangladesh, as Coronavirus lockdown has completely

devastated its textile industry, and export orders have been cancelled by European

companies which were major customers.

As per a report by Nikkei Asian Review, Japan’s premier financial newspaper, U.K.’s

Edinburgh Woolen Mills Group, whose key brands include Peacocks, Jaeger, Bonmarche,

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25 CITI-NEWS LETTER

and Austin Reed, has cancelled orders worth more than 30 million from nearly three

dozen Bangladeshi factories.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA),

the body which represents the country’s textile factories, has threatened to

blacklist Edinburg group, in a letter written to company owner- billionaire

Philip Day.

As the orders from European countries like the United Kingdom, Germany, Italy, Spain-

the major importers of Bangladeshi garments, get cancelled, more than 1,000 factories

have been shut down and 3 million workers are out job, with their families facing

poverty.

The Bangladesh government has adopted a two-pronged strategy to save the textile

industry, with the first being renegotiation of trade deals and second being petitioning

with international rights groups like International Labor Organization, Human Rights

Watch, and the Worker Rights Consortium, and European Union trade committee.

“Some deals are being renegotiated, while other buyers are promising to compensate”

those that have lost business, Commerce Minister of Bangladesh, Munshi said. “We’re

trying to resolve this issue with buyers’ representatives and the buyers themselves.”

The overdependence on a single sector has cost heavily to the economy of Bangladesh, as

with the collapse of the textile industry, millions of people in the densely populated

country are facing famine.

Orders worth more than 3 billion dollars have been cancelled and the country is facing

foreign exchange shortage.

Jafar Uddin, the commerce secretary, has written to Bernd Lange, chairman of the

European Parliament’s international trade committee, asking to restore order from

European brands. “Such unbearable and uncompassionate action by some European

apparel businesses does not go with the idea of ethical and value-based trade,” Uddin said.

After Uddin’s request, Swedish and Dutch governments have ensured that the companies

from their country would restore orders, but these countries account for a very small part

of total imports.

The economies of major importer countries like UK, Germany, Italy, and Spain have

collapsed. The demand for garments from Bangladesh has collapsed and the companies

could not restore the orders even if they are willing to, and therefore there are no chances

of revival of industry in the near term.

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26 CITI-NEWS LETTER

Bangladesh has a world-renowned textile industry footprint. The current pandemic is

threatening the very existence of this industry, and if the situation globally does not

improve soon, the industry might never be able to resuscitate itself.

Home

Fashion industry must move towards chemical circularity, says Laudes

Foundation

(Source: Leigh Stringer, Chemical Watch, June 04, 2020)

Chemical leasing put forward as 'part of the solution'

The fashion industry needs to increase the recycling and reuse of chemicals used in

textiles and move away from "single-use linear models", according to the Laudes

Foundation.

In a 25 May report, the Laudes Foundation – a philanthropic organisation headed by the

Brenninkmeijer family enterprise, owners of the fashion business C&A – challenges

whether current, single-use models for chemicals used in the conversion of fibres to

finished textile products should be allowed to continue.

It provides a "preliminary roadmap" for the industry to move towards chemical

circularity. The report highlights the potential of chemical leasing – an approach where

users only pay for the services rendered by the chemicals, for example, the volume of

water treated, the number of product parts painted, or the lengths of pipes cleaned – and

not for the volume of chemicals consumed.

According to the United Nations Industrial Development Organization (Unido), chemical

leasing aims to increase the efficient use of chemicals while reducing their risks and

protecting human health.

"The way in which chemicals are currently used and disposed of makes textiles the second

most polluting industry in the world," the report says.

Chemicals are used in yarn spinning, weaving, knitting and wet processing, such as

dyeing, printing, finishing, laundry – and are typically used once.

After use in a particular process, they are either passed along the supply chain or

"removed and dumped into the environment," the report says.

The report recommends the industry works towards:

reducing net chemical consumption, in other words, the total amount of chemicals

used; and

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27 CITI-NEWS LETTER

reducing chemical discharge to the environment.

To achieve this, there are two "complementary approaches" that can be applied:

using lower amounts of chemicals by reducing the amounts deliberately applied in

processes; and

increasing the amounts of chemicals that are reused and recycled by applying

nonlinear use models.

"Chemical leasing has been proposed as a potential solution to the problems caused by

current chemical use models in the textile industry," the report says.

However, the report adds that this approach is "part of the solution to this very complex

business and not the solution".

The report proposes the creation of a multi-stakeholder advisory group/board to oversee

a policy and roadmap.

"This could be the C&A Foundation (Laudes Foundation) itself, a multi-stakeholder

member group such as the Zero Discharge of Hazardous Chemicals (ZDHC) foundation

or Sustainable Apparel Coalition, an independent scheme such as Oekotex or Bluesign, or

a certifying body such as the Textile Exchange," it says.

Home

Byborre raises €3.2 million for on-demand textile platform

(Source: Fibre2Fashion, June 04, 2020)

Byborre has raised € 3.2 million in a series A funding round led by Shift Invest

(Vandebron, The Renewal Workshop, Protix), along with existing investor the

Amsterdam Climate & Energy Fund (Vandebron, Aectual) and existing angel investors.

Byborre is an Amsterdam based textile studio working on aesthetics, functionality,

technology, and material research.

The funding will be used to accelerate Byborre’s on-demand textile platform (Textile

Development Kit, or TDK) and expand its global on-demand production network.

Industry leading suppliers like Gore-Tex, Woolmark, Santoni, and Mayer & Cie., have

already partnered with Byborre, while brands using the Byborre platform include Adidas,

BMW, Rapha, Descente, Kapital, Natuzzi, Bedwin & The Heartbreakers, Mini, and many

more, according to a press release by the company.

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28 CITI-NEWS LETTER

The textile industry is the second most polluting industry in the world, generating large

landfills, responsible for 10 per cent of the global CO2 emission and for 20 per cent of the

water waste. The industry is known for inefficient production processes, high energy

demand and many unnecessary transports (goods and people). Byborre challenges this

status quo and made it its mission to create conscious creators and allow them to be ‘part

of something bigger’.

“We are in contact with textiles almost every minute of the day from the moment we are

born, and therefor it's fascinating that this very traditional industry has not been

disrupted and revolutionised for the last decades. We are thrilled to work with those who

share our desire to question the status quo, hence why we’re reconsidering what it in fact

means to collaborate with some of the world’s most respected creatives and brands,

providing the tools to help them push their textiles into new forms and new meaning,”

Borre Akkersdijk, co-founder and creative director at Byborre said.

Byborre is committed to improve the entire textile creation cycle and production

processes worldwide, inviting others to join them as they upturn the market and rethink

tired habits and norms. Their methods have already spread far and wide beyond their

studio, reshaping the way numerous brands think about the potential of responsible

textile making and radically shifting what textiles mean for their collections,” Guus

Verhees, managing partner at Shift Invest said.

Home

New electronic fibers can be embedded in textiles as sensors

(Source: Shane McGlaun, Slash Gear, June 04, 2020)

EPFL researchers from the Laboratory of Photonic Materials and Fiber Devices have

developed a new technology that can be used to detect the movement of the body. The

researchers say that the breakthrough could result in clothing or hospital bed sheets that

can monitor breathing and other vital movements. The electronic fibers could also be used

to allow robots to interact more safely and intuitively with humans.

Researchers say that the soft transmission lines they’ve developed have opened the door

to these possibilities. The sensors can track multiple kinds of fabric to deformation, such

as stretch, pressure, and torque, all at the same time. The team says it’s very difficult for

sensors to measure several stimulations simultaneously. The team incorporated concepts

from reflectometry to create a soft fiber-shaped sensor that opens doors for smart textiles.

The technology works similarly to radar according to the researchers but sends out

electrical pulses instead of electromagnetic waves. The fibers operate like transmission

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29 CITI-NEWS LETTER

lines, known from high-frequency communication. The system measures the time

between when a signal is sent out and when it’s received. That difference can determine

the exact location, type, and intensity of deformation.

Researchers say that this particular kind of detection technology has never been used in

structures combining extended mechanical flexibility and high electronic performance

before. Those features are crucial to measuring the deformations. Creating the fibers is

complicated and involves an optical fiber fabrication process applied to unusual

materials, such as elastomers or liquid metals that serve as conductors.

The team says the trick was to create transmission lines made entirely of soft materials

using a simple method with the ability to be scaled up. The next step will be to make the

technology more portable by reducing the footprint of the peripheral electronics.

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