11th

February

2023

Cotton and Yarn Futures Cotlook A Index - Cents/lb (Change

ZCE - Daily Data MCX (Change from previous day) from previous day)
(Change from previous 07-02-2023 98.80 (-1.90)
day) Dec 2023 28300 (-20)
Cotton 14780 (-25) 03-02-2023 140.15
Yarn 20775 (-165)
04-02-2021 87.70
PM Modi urges investors to seize opportunity at UP global
summit New York Cotton Futures (Cents/lb)
As on 11.02.2023 (Change from
India seeks talks before WTO fixes ecommerce rules previous day)
Mar 2023 85.50 (+0.13)
DPIIT working on quality control orders with BIS
May 2023 85.13 (+1.02)
Cotton availability drops in mkt, textile units affected
July 2023 86.33 (-0.31)
2 CITI-NEWS LETTER

PM Modi urges investors to seize opportunity at UP global summit

NATIONAL India seeks talks before WTO fixes ecommerce rules

DPIIT working on quality control orders with BIS

Cotton availability drops in mkt, textile units affected

The first edition of upnext India 2023 inaugurated at Apparel House, Gurugram

Failure of Uttar Pradesh’s Textile Policy

Textile PLI scheme: Textile PLI 2.0 likely to be finalised early next year

Huge potential for synergies between India and Bangladesh

Factory output slows to 4.3% in Dec, may pick up pace in Q4

KTR slams Modi government on GST on textiles, handlooms

South Indian cotton yarn market optimistic; prices remain stable

China most promising emerging logistics market, India ranks 2nd: Study

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GLOBAL The fashion’s industry’s reckoning with ‘forever chemicals’

IAF, ITMF to hold Virtual session on reducing audit, standard fatigue

The apparel industry dealing with ‘greenwashing’

One in every ten garments exported to the US goes from Bangladesh

Tackling waste polyester clothing with ‘plastic-eating’ enzymes

Defra excluding textiles from epr plans ‘extremely disappointing’

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3 CITI-NEWS LETTER

NATIONAL:
PM Modi urges investors to seize opportunity at UP global summit

(Source: Vatsala Gaur, Economic Times, February 11, 2023)

Prime Minister Narendra Modi on Friday inaugurated UP Global Investors Summit

where he urged domestic and foreign investors to seize the opportunity emerging from
the "partnership" of the resolve of a "double-engine government" in the state.

Uttar Pradesh chief minister Yogi Adityanath said the state has received investment
proposals worth Rs 32.92 lakh crore, which could create more than 9.25 million jobs, in
the run up to the three-day mega event through roadshows in India and
abroad……………….

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India seeks talks before WTO fixes ecommerce rules

(Source: Economic Times, February 11, 2023)

According to commerce ministry officials, the ongoing deliberations on e-commerce rules

at the WTO have not taken into account multiple issues that need to be discussed in detail.
These matters, such as liabilities on countries that host defaulters in ecommerce
transactions, will require multilateral consensus before the rules achieve finality.

India has pitched for deeper deliberations to take place before the World Trade
Organisation (WTO) defines rules in the ongoing discussions on e-commerce trade.

An official statement said this is being done with an aim to promote inclusive and
equitable development of the service at a global level. In line with the same, two papers
have been prepared by India for consideration of the Work Programme on Commerce
(WPEC) under the WTO These documents are setting the tone of discussions around.

Home

DPIIT working on quality control orders with BIS

(Source: Economic Times, February 11, 2023)

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The department is continuously engaged with the Bureau of Indian Standards (BIS) and
the concerned stakeholders for the identification of products for which quality control
orders (QCOs) could be issued. If a QCO is issued on a product, it must carry the quality
certification mark of the BIS.

The Department for Promotion of Industry and Internal Trade (DPIIT) is working on
quality standards for several products, such as lighters, with a view to promote domestic
manufacturing of quality goods, a senior official said Friday. These will also help in
containing import of substandard goods. DPIIT joint secretary Sanjiv said the "aim is to
promote production of high-quality products”.

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Cotton availability drops in mkt, textile units affected

(Source: Times of India, February 11, 2023)

More than 50 per cent drop in cotton arrivals in the spot market as farmers anticipate
higher prices has hit procurement of raw cotton by spinning and ginning units in the peak
processing period affecting supplies to garments and textile units. December to February
is the peak period when spinning and ginning industries procure raw cotton from the
market and produce yarn for the textile and garment units.

Most spinning and ginning units in Madhya Pradesh, a leading cotton producing state
which has close to 200 ginning units, are running on around 20 -30 per cent capacity
amid poor availability of cotton. Manjeet Singh Chawla, president, Madhya Pradesh
Cotton Ginners and Traders Association said, “Availability of cotton in the market is very
low and this has hit procurement by ginning units in the peak period. Production of yarn
is taking a hit due to lack of availability of raw cotton in the market.” Mills usually build
inventory for atleast 3 months but stocks this year are seen declining to one-two months
due to poor availability of cotton.

Chawla said farmers have held back supplies in anticipation of higher prices. Raw cotton
in Khargone spot market, a leading trading center for cotton, was traded at Rs 60,000 per
candy to Rs 63,000 per candy on Friday. Cotton prices had touched Rs 85,000 a candy in
cotton, said traders.

According to industry players, daily arrivals of cotton in the spot market at Khargone is
recorded at 10,000 quintal as against 30,000 quintal in the same perid a year ago. Kailash

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Agrawal, owner of ginning units said, “Industry is not able to run on desired capacity. We
are running at 20-30 per cent capacity despite the peak season because raw material is
not available. The production of yarn is taking a hit due to lack of availability of raw cotton
in the spot markets.”

Home

The first edition of upnext India 2023 inaugurated at Apparel House,

Gurugram

(Source:Press Information Bureau, February 11, 2023)

Shri Naren Goenka, Chairman Apparel Export Promotion Council (AEPC) along with the
other Export Council (EC) members inaugurated the first edition of upnext India 2023 in
presence of international buyers and exhibitors, at Apparel House, Gurugram today. This
initiative in the form of a series of Reverse Buyer Seller meet under the name of “UPNEXT
INDIA” kick starts with Japan, is being held 10th & 11th February 2023. Upnext India is
organized by AEPC and supported by the Ministry of Commerce and Industry under the
Market Access Initiative (MAI) Scheme.

84 prominent Japanese buyers including trading companies and retail chains/ stores are
in India to source their requirement from the 112 odd Indian exhibitors which are
displaying the diverse range of RMG reflecting Japanese taste.

Highlighting the changing market dynamics, Shri Naren Goenka, Chairman AEPC said,
“We hold a strong business opportunity in Japan reflected by the fact that China, which
has been a dominant garment supplier to Japan, has witnessed a decline in the past 5
years giving significant advantage to India. Garment fraternity in both the countries have
geared up to increase this trade taking advantage of duty-free access for Indian RMG post
Indo-Japan CEPA agreement as against an approximate 9% for China and Turkey.”

Indian garment industry which is blessed with the largest raw material availability of
cotton, jute, silk and wool in the world supported by world's second largest spinning and
weaving capacity. This gives the industry an opportunity for a 95% domestic value
addition enabling India to offer to the world a complete value chain solution from farm to
fashion and hence extending as a competitive edge by shortened lead times to reach our
buyers. After having established itself in traditional garments, the Indian apparel industry

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has now moved on to diversifying itself into newer areas of MMF garments, Chairman
AEPC added.

Speaking on panel discussion Shri Goenka, said, “The Japan is the 4th largest readymade
garment importer in the world, there is a huge untapped trade potential in the RMG sector
and also a duty-free access to the Japanese market, that is why India must extensively and
aggressively focus on building India-Japan trade.” The government of India is coming up
with PLI scheme which will majorly include Ready Made Garment (RMG). This PLI will
be much simpler norms to be eligible, which will largely address the issue to capacity
creation, Shri Goenka added.

Shri Sudhir Sekhri, Vice Chairman AEPC in his address stated that, “Japanese companies
have two competitive advantages as apparel sourcing base: sourcing cost and flexibility
and agility. Indian suppliers can cater to both small size customised orders of 300 pieces
to large orders as huge as 3 lakh pieces of one style.” Apparel imports into Japan have
witnessed a positive uptick in the last 3 years despite of Covid 19 which allows India’s
apparel industry a huge opportunity.”

Shri Ashok G Rajani, Chairman, Fairs and Exhibition, AEPC said, “upnext India looks
forward to building bridges of partnerships between the Indian Exporter community and
Buyers worldwide starting with Japan. This Japan focused 2023 edition of the Reverse
Buyer Seller Meet is hosting interested Apparel and Fashion accessories exporters,
providing them a platform to engage with Japanese brands and buyers. We look forward
to enabling Japanese brands to plan for greater sourcing from India through this event.”

The two days of upnext India 2023 will also host the theme pavilions for the startups in
technology and sustainability domain, two very crucial areas where Indian garment
industry is making rapid transformations. Besides, the show will also witness the series
of panel discussions where experts, industry leaders and academia will deliberate upon
the trade outlook, ESG compliance and emerging technologies for building the capacity
for the industry to be future ready.

Some of the iconic Japanese brands including Koizumi Apparel co. Ltd, Marubeni Intex,
X Plus co. Ltd, AIS co. Ltd, Indepp co. Ltd, Aube co. Ltd, Sumitomo Corporation Kyushu
co. Ltd, Oyoshima & co. Ltd, Yagi, Muji, Amina Collection co. Ltd, United Arrows Ltd,
Konaka, Nissenken quality evaluation centre, etc. have come for the show. Indian RMG

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7 CITI-NEWS LETTER

companies are displaying the various categories of garment including summer and winter
collection.

Japan imported readymade garments worth US$ 23 billion in 2022 (till November), and
India which exported readymade garments worth US$ 0.22 billion to Japan with a share
of 0.9% depicts that there is huge scope for the Indian apparel manufacturers and
Japanese readymade garment importers to bridge the gap and write a new chapter for the
India-Japan apparel trade, Textiles.

Home

Failure of Uttar Pradesh’s Textile Policy

(Source: EPW, February 11, 2023)

The rejuvenation of textile industry post 2017 and the government’s claim of doubling the
per capita income of handloom workers from the year 2016 to 2020 has been contradictory
to the Fourth All India Handloom Census, 2019–20, released by the Ministry of Textiles.
This article critically analyses why the Uttar Pradesh textile policy of 2017 fails to enhance
the economic situation of the handloom workers.

Uttar Pradesh (UP) has over 2,50,000 handloom weavers operating in about 1,10,000
handlooms with natural clusters developed over hundreds of years. Hand embroidery of
delicate quality is the strength of several traditional districts, such as Farrukhabad,
Bareilly, and Lucknow. Most of the weavers followed the footsteps of their forefathers in
this tradition; the wholesalers are fourth or fifth-generation traders in the business.
Handloom weaving is primarily a household-based business. Thus, weaving is considered
a very respectable vocation for both men and women in rural and urban areas. Thousands
of young people have been trained in the state in the past decade in government-
sponsored skill development programmes. These skilled workers are in demand all across
the textile industries. Varanasi and Mubarakpur are world-renowned for silk sarees of the
highest quality and contributes 90% of the silk saree production of the state.

Moreover, 25% of the male working force from Varanasi is engaged in the weaving
industry as the primary source of livelihood (Information and Public Relations
Department 2018). Because of the overwhelming potential of employment generation of
this sector, the current Prime Minister recognised 7 August as “National Handloom Day”
to promote the heritage and culture of handloom weaving in the Indian economy. But the
weaving industry of UP has undergone significant changes in the past few years and lost

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its prestigious tradition after the technological innovation—shifting from handloom to

power loom. The invention of the power loom has unprecedentedly increased the price of
yarn that directly affected the livelihood of the weaver community, and they have never
been able to recover from this jolt. As a result, most of the weavers’ condition has fallen
into a deplorable state, with rising poverty, hunger, and a lack of capacity to sustain their
business (PVCHR 2013). To revive the traditional textile industry of UP, the government
has rejuvenated the existing Textile Garmenting Policy, 2017. This policy aims to improve
the standard of living of people across all sections to enable them to lead dignified lives.
In addition, various provisions have been made to increase industrial investment and
generate more employment……

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Textile PLI scheme: Textile PLI 2.0 likely to be finalised early next year

(Source: B2B Chief, February 11, 2023)

The government is likely to finalise the second edition of the production-linked incentive
scheme (PLI) for garments, madeups and home textiles early next year, with a focus on
promoting small and medium entities, officials said Wednesday.

Discussions are ongoing for PLI 2.0 with investment thresholds between ₹15 crore and
₹45 crore, they said. These are lower than in previous round for technical textiles and
manmade fibre, when minimum investment required was ₹100 crore and ₹300 crore.

“We encouraged capital and machinery in the first edition of PLI but this time, we are
looking at small and medium entities,” said an official. Under the first scheme, 32
companies have begun investments of ₹1,500-1,700 crore, the officials said.

The textiles ministry had approved 64 applications under the ₹19,798 crore scheme.

PLI 2.0 for the textile sector is being considered as the ministry has an unutilised budget
of ₹ 4,000 crore.

Bedspreads and textile accessories like lace, buttons and zippers could get covered under
this.

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9 CITI-NEWS LETTER

Huge potential for synergies between India and Bangladesh

(Source: Apparel Resources, February 10, 2023)

T Rajkumar, Chairman, the Confederation of Indian Textile Industry (CITI) has opined
that there is a huge potential for synergies between India and Bangladesh. Bangladesh is
looking to accelerate its apparel exports to US $ 100 billion by 2030. India has the
potential to increase its textile and apparel exports to Bangladesh to about US $ 15 billion
from current levels of about US $ 4.2 Billion in next 3-5 years.

At a Textile Meet in Delhi, organised by CITI in collaboration with SOWTEX, CITI officials
and representatives from Indian textile exchanged idea with the top officials of
Bangladesh Garment Manufactures & Exporters Association (BGMEA).

CITI and BGMEA are planning to coordinate for creating green factories in India.

A high-level delegation of leadership team of BGMEA including Faruque Hassan,

President BGMEA; Shahidullah Azim, VP; and leading apparel exporters from Dhaka are
on a four-day visit to India for close interactions with top Indian textile manufacturers to
scale-up textile exports from India to Bangladesh.

Faruque Hassan said that so far Bangladesh has grown through volume business.
However, now they are planning to grow through fibre diversification, innovations in
design and application, etc., and for this, a Center for Excellence is being created. He cited
that as India specialises in the upstream segment which complements its downstream
industries, both countries can collaborate to create their own brands.

T Rajkumar also said that India need not set new capacities for the same. There is already
about 20-50 per cent of idle capacities, particularly in fabric mills and processing houses
which can be effectively deployed in a faster and shorter period.

Home

Factory output slows to 4.3% in Dec, may pick up pace in Q4

(Source: Live Mint, February 11, 2023)

India’s industrial activity moderated in December, after touching a five-month high in the
previous month, official data showed. The moderation was put down to the high base of

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the year-ago month and a weakening of the consumer durables segment post the festive
season……….

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KTR slams Modi government on GST on textiles, handlooms

(Source: The Rahnuma Daily, February 11, 2023)

While the union government is abolishing all the schemes related to the welfare of
weavers, the Telangana government is initiating various flagship programmes to help the
handloom weavers in Telangana, said Minister for Textiles and Handlooms KT Rama
Rao.

Taking part in the State budget debate in the Assembly here on Friday, Minister KT Rama
Rao alleged that Narendra Modi was only the Prime Minister to impose five percent GST
on handloom products since the Independence of the country and the union government’s
lopsided policies had ruined the handlooms and Textile industry.

We have written lakhs of letters to the Union government seeking the abolition of GST on
handloom products and continuation of all welfare schemes for weavers but in vain, KTR
lamented.

Listing out the Union government’s lopsided policies towards the Textile sector, the
Minister said the Centre had abolished All India Handicraft Board and weakened eight
Textile Research Centres which work under All India Powerloom Board. Meanwhile,
the Centre had removed the offices of National Handloom Board and All India Jute Board
from Hyderabad. In addition to this, the union government has abolished all insurance
coverage schemes, KTR said.

Stating that the State government has initiated various schemes for the welfare of weavers
and development of handlooms and Textiles since the formation of Telangana State,
Minister KT Rama Rao said the schemes like Nethannaku Cheyutha, Nethannaku Beema
and Chenetha Mitra were receiving overwhelming response among the weavers and these
were now yielding results across the State.

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11 CITI-NEWS LETTER

South Indian cotton yarn market optimistic; prices remain stable

(Source: Times of India, February 11, 2023)

South India experienced stability in cotton yarn prices today with a bearish tone. Buyers
were seeking further discounts for new deals, but cotton yarn demand was slightly better
and there was a sense of optimism about improved buying in the next month. Traders
from Mumbai and Tiruppur said that cotton yarn demand may improve next month as
summer begins.

The Mumbai market saw a steady trend in cotton yarn prices with improved buying,
though buyers were negotiating for lower prices. “Power looms are operating at higher
capacities, but demand for fabric has not picked up due to liquidity constraints. Yarn
prices can improve only if better buying persists,” a Mumbai-based trader
told Fibre2Fashion.

In Mumbai, 60 count carded cotton yarn of warp and weft varieties were traded at ₹1,540-
1,570 and ₹1,440-1,490 per 5 kg (GST extra) respectively. 60 count combed warp was
priced at ₹345-350 per kg. 80 count carded (weft) cotton yarn was sold at ₹1,470-1,490
per 4.5 kg. 44/46 count carded cotton yarn (warp) was priced at ₹275-280 per kg, 40/41
count carded cotton yarn (warp) was sold at ₹262-268 per kg, and 40/41 count combed
yarn (warp) was priced at ₹290-293 per kg, according to Fibre2Fashion's market insight
tool TexPro.

Cotton yarn prices were also steady in the Tiruppur market, even though demand from
buyers was better. There was optimism that cotton yarn buying would improve further in
March 2023 due to seasonal factors. 30 count combed cotton yarn was traded at ₹280-
285 per kg (GST extra), 34 count combed at ₹292-297 per kg, and 40 count combed at
₹308-312 per kg in the Tiruppur market. 30 count carded cotton yarn was sold at ₹255-
260 per kg, 34 count carded at ₹265-270 per kg, and 40 count carded at ₹270-275 per kg,
according to TexPro.

In Gujarat, cotton was also sold at higher prices, with prices rising by ₹400-500 to
₹62,200-62,500 per candy of 356 kg. Traders reported that spinning mills were seeking
to purchase natural fibre for future demand, but price disparity was hindering bulk
buying. If the disparity decreases, ginners may increase production.

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According to industry players, daily arrivals of cotton in the spot market at Khargone is
recorded at 10,000 quintal as against 30,000 quintal in the same perid a year ago. Kailash
Agrawal, owner of ginning units said, “Industry is not able to run on desired capacity. We
are running at 20-30 per cent capacity despite the peak season because raw material is
not available. The production of yarn is taking a hit due to lack of availability of raw cotton
in the spot markets.”

Home

China most promising emerging logistics market, India ranks 2nd: Study

(Source: The Rahnuma Daily, February 11, 2023)

China with a score of 8.31 was revealed as the most promising emerging logistics market
in the world, as per a survey by global integrated logistics provider Agility. The ranking is
based on four metrics, domestic logistics opportunities, international logistics
opportunities, business fundamentals, and digital readiness. India was ranked second in
the overall ranking.

China and India were at the top positions for both domestic and international logistics.
India jumped four spots to No. 1 in digital readiness, followed by UAE, China, Malaysia,
and Qatar, according to the 2023 Agility Emerging Markets Logistics Index.

Arabian Gulf countries—UAE, Qatar, Saudi Arabia, and Oman—again offered the best
business conditions. Malaysia, with the fourth best environment for business, was the
only non-Gulf country in the top five.

Nearly 70 per cent of global logistics executives say they are bracing for recession amid
higher costs, slowing demand, and ongoing supply chain disruption arising from China’s
battle to contain COVID, Russia’s war in Ukraine, and the impact of climate change.

Ninety percent of the 750 industry professionals surveyed for the 2023 Agility Emerging
Markets Logistics Index also say their shipping, storage, and other logistics costs remain
well above pre-pandemic levels of early 2020.

Among the several highlights of the 2023 index survey include net-zero commitment and
climate change. Around 53 per cent of logistics executives said their companies have

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committed to net-zero emissions, and another 6.1 per cent said their businesses have
achieved net-zero. Moreover, half of the respondents admitted that climate change is a
concern their businesses must plan for, while another 18 per cent said it is already
affecting them.

“Carriers and shippers are feeling the effects of higher energy prices, tight labour markets,
and broader inflation even though freight rates have fallen, and ports have cleared cargo
backlogs,” said Agility vice chairman Tarek Sultan. “Three years after the start of the
pandemic, there is still a lot of volatility in supply chains. Now there’s fresh uncertainty
as consumers and businesses pull back on spending and hiring.”

The survey and Index are Agility’s 14th annual snapshot of industry sentiment and
ranking of the world’s 50 leading emerging markets. The Index ranks countries for overall
competitiveness based on their logistics strengths, business climates, and digital
readiness.

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GLOBAL
The fashion’s industry’s reckoning with ‘forever chemicals’

(Source: Khaya Himmelman, Grid, February 11, 2023)

PFAS make clothing water-repellent and stain-resistant, but there’s a health risk.

As fashion month kicks off in New York City, there is an underlying debate in the industry
about how its products are made that have potentially damaging health effects.

The controversy is over so-called forever chemicals — known more commonly among
manufacturers as PFAS, per- and polyfluoroalkyl substances. Companies that make
consumer goods, like 3M and Chick-fil-A, have announced they’re parting ways with such
chemicals, which are common in a whole host of consumer products — including things

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14 CITI-NEWS LETTER

like dental floss, shampoo bottles, stain-resistant couches and cookware, as well as
clothing items from all different brands.

The chemicals are popular in the fashion industry because they enable two attributes
many people like their clothing to have, said Rebecca Fuoco, director of science
communications at the Green Science Policy Institute: being water-repellent and stain-
resistant.

The fashion industry is one of many to face a reckoning over the use of these chemicals in
its products. They’ve recently come under scrutiny because scientific studies reveal that
exposure to these chemicals can have serious effects on health, including liver damage
and an increase in certain types of cancers, to name just a few.

Danny Katz, executive director at CoPIRG (Colorado Public Interest Research Group),
doesn’t think finding alternatives should be a huge problem. A lot of clothing, he said,
simply doesn’t need PFAS and can be made without it and without an alternative.

“Part of the reason these chemicals are used is to make something water-resistant. Do we
need every clothing we own to be water-resistant?” he said. “That can be a really simple
way to just kind of phase out PFAS pretty quickly.”

How the fashion industry became the focus of this campaigning against
“forever chemicals”

This issue is gaining traction, Katz said, because more and more studies have recently
come out about the harmful effects of these chemicals, which environmental advocacy
groups can then use to raise public awareness about the harms of PFAS.

The criticism is having real-world effects.

A New York bill, passed by the state legislature in May, will prohibit the use of PFAS in
clothing starting in December 2023. California passed a similar law in September,
prohibiting the distributing, selling or offering for sale textiles that have PFAS starting in
January 2025, the Hill reported. Maine will also prohibit selling products with
intentionally added PFAS.

Some states have also started regulating PFAS in drinking water, cosmetics, firefighting
foam and other consumer products. And, as of this month, the European Union is
considering a proposal to prohibit PFAS.

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Other companies have voluntarily said they would search for alternatives. Fjällräven, for
example, uses a combination of cotton, polyester and wax on its jackets, pants and
backpacks. Other major companies like Levi Strauss & Co., Victoria’s Secret, and Deckers
Brands (Ugg and Teva) have strong commitments to entirely phase out PFAS, according
to PIRG.

The science: What do we know about what “forever chemicals” do — and

don’t do — for your health?

According to the Agency for Toxic Substances and Disease Registry (ATSDR), high-level
exposure to certain PFAS can have serious health effects: decreased vaccine response in
kids, increased risk of certain cancers, higher risk of high blood pressure or preeclampsia
in women, and changes in liver enzymes.

Yes, some PFAS can be absorbed through the skin. But per the ATSDR, research suggests
that exposure to certain PFAS (like PFOA and PFOS) from consumer products (including
clothing) is typically low when compared with exposure through, say, tainted drinking
water.

“Based on the available data, only a small amount of PFAS can get into your body from
skin contacting PFAS-contaminated water,” said the ATSDR on its website, whereas
“most PFAS do not evaporate into the air from water readily.”

Still, there’s more research that needs to be done on how risky clothing with PFAS is.
Jamie DeWitt, professor of pharmacology and toxicology at East Carolina University, said
nobody in the scientific community can yet identify a person’s level of exposure through
clothing. But, she added, it’s still a risk most scientists agree is there.

She explained that you can measure PFAS in people’s homes in dust, but those PFAS could
come from a variety of fabrics: furniture, flooring and clothing. “To the best of my
knowledge, nobody has ever disseminated or dissected or fingerprinted the dust to try to
figure out what came from where,” she said.

What is known is that drinking water is one of the most common ways to be exposed to
PFAS.

According to a September 2022 report from the Government Accountability Office, 18

percent of six state’s 5,300 water systems had at least two PFAS, which is above the

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Environmental Protection Agency’s acceptable limits. And in June 2022, the

EPA significantly lowered the acceptable level of two types of PFAS (PFOA and PFOS) in
water to close to zero. “The EPA is saying that if you can detect these two levels of PFAS
in drinking water, the levels are too high,” said DeWitt, adding, “in my opinion, no level
is without risk.”

There’s also a health risk for wildlife, DeWitt said. Marine scientists have hypothesized
that marine mammals and marine turtles are at increased risk of getting sick because of
the PFAS in their blood and the effects of those PFAS on their immune system.

The problems with getting rid of such chemicals

Sometimes retailers and fashion companies might not even know what kind of chemicals
are being used in their products, Mike Schade, director of Toxic-Free Future, said. A lot
of fashion companies and retailers have different suppliers overseas, making it hard to
keep track of everything that goes into clothing.

“They might have many multiple levels of suppliers that they’re working with,” Schade
noted. “And they may not have direct knowledge of or control of what chemicals or
suppliers are or aren’t using.”

Another reason it’s so hard to limit PFAS in the U.S. is because there is an issue with
regulating chemicals, more generally.

It’s challenging to get new chemicals approved, and it’s challenging to remove chemicals
from the market once they have been determined to have negative effects on people and
the environment, said Lauren Richter, a sociology professor at the University of Toronto
Mississauga. Another issue: Chemical manufacturers like DuPont and 3M, among others,
she said, are sometimes the only ones who know what is going into their often trade-
secret-protected chemicals.

But as more and more companies start to look for alternatives, Schade said, the cost will
come down. “Suppliers of alternatives can achieve economies of scale as more and more
brands and retailers begin transitioning to new alternatives,” he said. Schade added that
although hard numbers are not available, he has not heard that cost is a major barrier in
transitioning away from PFAS.

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And then there is who has control over the policies in place. Richter said that DuPont, one
of the main producers of PFAS, played a significant role in shaping the Toxic Substances
Control Act, which puts the burden of proof on the people that are harmed that have to
act through the EPA and not the company. The EPA doesn’t have the data it needs to argue
for a change, said Richter. “Across the board in many different sorts of small technical
ways and then bigger, audacious ways, that chemical industry exerts so much dominance
within the regulatory domain,” she added.

Given that public awareness and policy awareness has risen around the dangers of these
chemicals, there’s a greater incentive for clothing companies to move quickly to adopt
new PFAS regulations.

“I don’t think any company wants to be the last company using [PFAS], when we’re
hearing these terrifying stories of these forever chemicals,” Katz said.

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IAF, ITMF to hold Virtual session on reducing audit, standard fatigue

(Source: Fibre 2 Fashion, February 11, 2023)

The International Apparel Federation (IAF) and the International Textile Manufacturers
Federation (ITMF) will jointly hold a virtual session about the Standard Convergence
Initiative’s (SCI) view on progress in the reduction of audit and standard fatigue on
February 13, 2023 (9-10 am CET). Speakers from the industry (Pan Brothers, Indonesia),
Social & Labour Convergence Programme (SLCP), ITC, standard holders (OEKO-TEX
and WRAP), and SCI will share their perspectives.

To help accelerate the move towards a situation where manufacturers can suffice with a
single audit, from its inception, IAF and ITMF have supported the SLCP. SLCP has played
a leading role in forging the path to converged assessments. Since launching in 2019, the
programme has scaled rapidly, with over 7,000 facilities worldwide choosing to complete
an SLCP verified assessment in 2022 alone. There are now over 65 brands and retailers
publicly committing to accept SLCP verified data from their suppliers and manufacturers
are reporting concrete reduction of audits and reallocation of resources towards
improvement, the SCI and SLCP said in a joint press release.

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Building further on the progress in recent years, more can be done to further reduce the
burden on suppliers and manufacturers. The rate of progress should be increased
significantly. The next step really is reducing standard fatigue. SCI’s research (performed
by ITC) suggests great overlap between the main social standards, suggesting plenty of
room for a fast reduction of standard fatigue for manufacturers.

SCI therefore has two key asks for brands and retailers as well as standard holders. SCI
calls on more brands and retailers to quickly make the switch to converged schemes such
as SLCP to further maximise the potential savings and benefits for manufacturers. SCI
also calls on brands and retailers to drop their proprietary codes in favour of collaborative
and harmonised third-party standards as this constitutes the quickest road to a reduction
of the number of standards that manufacturers face. SCI works with the Sustainable
Terms of Trade Initiative (STTI) to ensure that brands and retailers make clear
commitments to this end, added the release.

Several of the leading schemes and standard holders are exploring alignment and data
sharing to reduce the need for separate data collection and verification processes. SCI
calls on all leading social schemes to work towards compatibility between the systems and
accept and integrate SLCP verified data. SCI will work with its partners including ITC,
SLCP, brands and retailers, and standard holders to encourage and facilitate the
reduction of standard fatigue through a fast and rigorous reduction of unnecessary and
unproductive work by manufacturers caused by overlapping standards.

The SCI is an initiative of the IAF and the ITMF that aims to encourage alignment between
industry and multi-stakeholder Initiatives as well as brand or retailer proprietary tools to
help combat audit and standard fatigue in the textile and footwear sector.

Home

The apparel industry dealing with ‘greenwashing’

(Source: Apparel Resources, February 11, 2023)

Brands will need to be extremely watchful about how they speak about their
sustainability-related projects and achievements to ensure they are not ‘greenwashing’ in
light of new and emerging rules as well as increased consumer awareness of fashion's role
in the climate problem.

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Today, many consumers are eager to buy from companies they believe are
environmentally responsible and actively working to lower their emissions’ footprint, but
how can anyone tell if a retailer or a brand is truly sustainable or just ‘greenwashing’ as a
marketing ploy? The clothing industries have received a lot of criticism for being
‘greenwashers’.

The term ‘greenwashing’ is basically coined for companies that deceive everyone into
thinking that a brand is sustainable by using false practices, assertions and marketing that
suggests they are being considerate of the environment when in fact they are not.

The topic has gained much more attention as a result of the development of standards
that evaluate how accurately companies represent their products or the establishment
adhering to sustainable standards.

Shein, a global leader in ultra-fast fashion, came under fire for greenwashing when it
introduced a resale platform for American consumers in October 2022. Studies have
shown that resale systems, in general, do not contribute to lowering production levels,
especially for fast-fashion brands.

It should not come as a shock that the Japanese store Uniqlo is included in the list of
fashion brands that engage in ‘greenwashing’, given its reputation as one of the most well-
known fast fashion brands in the world. Uniqlo has received numerous labour rights
accusations and infractions, similar to other fast fashion retailers. The company has over
3,000 locations worldwide, but its reputation for sustainability isn’t good. Products it sells
are made with a lot of cheap synthetic materials, such as rayon, polyester, nylon and
elastane and are sold for very low prices.

Another campaign against ‘greenwashing’ targeted the French athletic goods

store Decathlon for making ambiguous sustainability promises in its advertising. The
brand’s vague use of phrases like ‘eco-design’ prompted the Netherlands Authority for
Consumers and Markets (ACM) to demand compensation. Following this, Decathlon
promised to change or stop making any sustainability claims regarding its products.

What is the deal with ‘recycled polyester’?

How often do we see tags that read ‘95 per cent recycled polyester’ in stores? First of all,
recycled polyester clothing is created from PET bottles rather than pre-owned clothing.
Although it’s wonderful that we’ve found an application for all the single-use plastic

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bottles we use, it also means that there are still a lot of polyester clothes out there, in
landfills all over the world, that do not decompose.

It is also a known fact that companies continue to advertise their products by identifying
them as ‘100 per cent recycled polyester’ even though they are not. Also, it makes no sense
to refer to something as sustainable if recycled polyester is combined with virgin
polyester.

Many brands have been caught in the crossfire since the public is still skeptical about the
effectiveness of recycled polyester on Mother Earth. One prominent example is H&M.
Despite being mostly composed of polyester or recycled plastics, H&M used green
scorecards to identify and sell its ‘Conscious Choice’ products. The defendants believe that
this is a fraudulent portrayal of products by H&M that do not have an adverse impact on
the ecosystem.

Similar to H&M, Zara launched ‘Join Life’ about 20 years ago in an effort to improve its
sustainable reputation. By 2030, Zara wants to run all of its internal operations entirely
on renewable energy and transition to a circular economy model to extend the lifespan of
items. The garment company has also made plans to utilise exclusively recyclable and
sustainable cotton and polyester, as well as to cut and offset all emissions by 2040.
However, a lot of people criticise the brand and raise questions about transparency.

“Textiles made from cotton and polyester blends are used in 98 per cent of the sector.
Cotton that has been blended with polyester is no longer recyclable, and all of this cannot
be reversed. Fabrics containing a 5 per cent polyester blend are permitted to be labeled as
sustainable by certain certifying organisations. Blended polyester yarns are not
environmental-friendly, and polyester is usable only if it is properly recycled,”
said Shankar Dhakshinamoorthy, Founder of FABORG, a company that produces
vegan wool made from the wild flowering shrub Calotropis.

Consumer awareness of greenwashing

Consumer awareness is the first step in managing, removing and altering human
behaviour and choices. This implies that the only way to encourage effective customer
behaviour is through awareness.

It is challenging, but not impossible, to tell whether companies are greenwashing from
those that are truly sustainable. Before purchasing products labeled ‘sustainable’,

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consumers can use a few different strategies. Looking for certifications that support the
claim that a brand is sustainable is one of the most obvious ways to do so. Another strategy
is to ignore the ambiguous language that marketers use and instead look for numbers,
statistics and other tangible evidence that would support their claims.

Neha Kabra, Founder of Maati, an ethical fashion label, said, “The whole point of
sustainability is to question where everything comes from, and consumers should do the
same. They can eventually eliminate greenwashing in this manner. Instead of relying on
the package, consider the contents. Asking the correct questions, such as how the product
is created, can have an impact. Asking why a particular product costs that much and
grilling brands to get the appropriate breakdown, this cross-questioning will encourage
businesses to create sustainable products so they can at least answer the people to whom
their market is relevant.”

Some companies claim that the raw materials used to make their textiles, such as viscose,
bamboo and rayon, are sustainable. However, consumers should know that these textiles
can still be subjected to countless pesticides and chemicals and can be transformed into
garments that are extremely harmful to the environment.

Labels provide a wealth of information on the origins and contents of the clothing. Check
for certification if someone decides to purchase organic cotton. Companies are starting to
take note of some manufacturers that are moving toward sustainable eco-fashion, which
has a minimal impact on the environment throughout the garment life cycle. For instance,
since 2004, Walmart has offered women’s organic cotton T-shirts (Cloudio, 2007). By
using post-consumer plastic bottles in their apparel, brands like Patagonia are promoting
eco-fashion.

Role of certifying agencies and the Government

While brands have grappled with their own answers for years, governments and
regulatory bodies are signaling that existing definitions may be insufficient and, in many
cases, misleading.

The European Commission is working hard to get rid of the fake labels that fashion
businesses have posted. The commission’s strategy is to restrict the use of the term
‘sustainable’ to products that can demonstrate recognised excellence in environmental
performance. Furthermore, consumer protection agencies in Norway and the
Netherlands discovered numerous brands that were deceptive and misleading.

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A law requiring companies to apply carbon labels to their products and assign them an
environmental score on a scale of A to E is anticipated to be established in France in 2023.
As a result, customers will be able to make more informed purchases since the
information provided on the label will be more precise and clear.

Despite the fact that impact assessment tools and third-party certification systems have
evolved to help brands and customers, controversy has also been generated by them. The
Higg Index, one of the most widely used rating systems in the fashion industry, came
under fire in 2022 for a variety of reasons, including the reliability and validity of the data
it offers and the possibility that major labels could influence it. The use of Higg Materials
has been forbidden by Norway’s consumer regulator, which found that the index’s
consumer-facing efforts can be deceptive.

Future of Greenwashing

The market has become inundated with greenwashing in more than 35 years since it was
given a name. It’s easy to see why, given that consumers are looking for sustainable
products more than ever. Additionally, they are more conscious than ever of
greenwashing.

The increasing prominence of ‘greenwashing’ has sparked concern among several fashion
industry professionals. While some think that the trickle-down theory—the idea that
fashion trends move from the upper to the lower classes—and the influence of powerful
figures like the government and large fast-fashion retailers must change, others think that
consumer awareness and how people perceive products before purchasing them can have
a significant impact.

“Greenwashing is a positive indicator since it shows that there is a market for

sustainability. However, there is a lack of information about what sustainability actually
is. Brands need a more comprehensive understanding of how to produce a minimal
carbon footprint at every turn. Some companies may simply lack the necessary expertise.
Therefore, we need stronger leadership. This can be done by major fast-fashion retailers
urging people to make sustainable choices. So, it is difficult unless leadership steps in,”
said Shivangini Padhiyar, Founder of The Summer House, a considerably
designed organic clothing brand with a focus on quality and sustainability.

On the other hand, Swikruti Pradhan, Founder and Creative Director of Rustic
Hue, a sustainable and handwoven fashion label, believes that “consumers today need to

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be educated about the actual meanings of terms like ‘eco-friendly’, ‘sustainable’, ‘circular
fashion’ and more. Product knowledge and brand awareness are two ways to tackle
greenwashing. The media, fashion magazines, fashion influencers, designers, researchers,
fashion events and shows, etc., play an important role in creating awareness.”

Many fashion designers think that stronger government engagement is necessary to

prevent greenwashing, whether it be through sludge-free systems, modified wet
processing steps, recycling or energy-saving methods.

Brands will need to be extremely watchful about how they speak about their
sustainability-related projects and achievements to ensure they are not ‘greenwashing’ in
light of new and emerging rules as well as increased consumer awareness of fashion’s role
in the climate problem.

Transparency over manipulation is the only option. When they said that honesty is the
best policy, they were not mistaken. No customer will adopt the detective persona of
Sherlock Holmes and start making inquiries. Their responsibility is to be informed, to
raise awareness and to make eco-friendly product purchases. The brands and the people
with power, in fact, control it.

The best method for apparel companies to combat greenwashing is to examine every stage
of production in greater detail and look for opportunities to improve it. Brands would
then be able to understand the source, consequences and price of their products. Due to
the strictness associated with making sustainability claims, this process and technology
have a great chance of becoming widely used worldwide. This clarity can also assist brands
in obtaining a clear understanding of the processes that go into producing their clothing,
right from where the raw materials come from to the final product.

Home

One in every ten garments exported to the US goes from Bangladesh

(Source: TBS News, February 11, 2023)

Bangladesh's clothing exports to the US grew by 36.4% to $9.75 billion year-on-year in
2022, according to the latest data from the US Office of Textiles and Apparel (Otexa).

The Otexa data showed that Bangladesh's current share in the US market is about 9.8%
(of the nearly $100 billion worth of clothing the US imported globally), meaning one in

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every ten garments exported to America from around the world originated from
Bangladesh.

Bangladesh's apparel exports to the United States have been growing steadily, despite not
having duty benefits from the world's largest market, as its market share stood at 8.2% in
2020 and 8.8% in 2021.

Exporters attributed the country's strong performance in the US apparel market largely
to its ability to quickly adapt to changing consumer trends and demands.

Bangladesh has become known for its ability to produce fast-fashion items in a timely and
efficient manner, which has helped to build its reputation as a reliable supplier to
American retailers.

However, despite Bangladesh's growth in the US market outpacing that of its rivals China
and Vietnam (10.8% and 27%, respectively), their exports in terms of monetary value still
far surpass that of Bangladesh.

This highlights the importance of Bangladesh continuing to focus on increasing its

competitiveness and improving the quality of its exports in order to increase its market
share and capture a larger portion of the lucrative US market, an analyst told The Business
Standard (TBS).

Md Anwar Shahid, the vice president of the Bangladesh Garment Buying House
Association (BGBA) told TBS, "This growth was expected as we are mainly exporting
woven products, any textile formed by weaving, to the US market, which is made of the
imported costly fabrics."

"The prices of major apparel items (shirts and trousers) that go to the US from Bangladesh
are comparatively high," he said, adding that Bangladesh became the top denim garments
exporter in 2021.

"Besides, the US is less affected by the global economic recession than the European
market, and that is why this market growth is better," said Anwar Shahid, who is also the
managing director of Shimex International Ltd – a globally recognised apparel agent.

Bangladesh also received a good number of orders shifted from China and Vietnam as
every exporting country had suffered during the pandemic but only Bangladeshi apparel

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exporters had kept their units running at that time, which also helps them to enhance
buyers' confidence as a reliable sourcing destination, he said.

"Some high-value apparel buyers are also shifting from China to Bangladesh due to geo-
political reasons," he said.

DBL Group Vice-Chairman MA Rahim said, in the last six months, his group has started
production of some high-value apparels for some luxury brands like Ralph Lauren, which
has shifted their sourcing from China.

Currently, the company is producing some apparel items at retail prices of $200-$250,
and the Free On Board (FOB) prices are also a few times higher than other conventional
items, he said.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President

Faruque Hassan said the growth of apparel exports to the US market was very inspiring
as Bangladeshi suppliers gained the confidence of global buyers amid a supply chain
disruption caused by the Russia-Ukraine war and the pandemic.

Amid the global economic slowdown, Bangladesh's apparel export earnings increased as
unit prices increased due to the raw materials price hike, he said.

Besides, Bangladeshi apparel exporters are also ramping up shipments of value-added

products, Faruque said.

"A shirt which was once exported at a price of $8-10, is now being exported at $12-14 due
to price hike of raw materials. It is reflected in the growth," the BGMEA chief said, adding
that local entrepreneurs are now getting more orders of high-value products due to
improved efficiency and technology adaptation.

Home

Tackling waste polyester clothing with ‘plastic-eating’ enzymes

(Source: Just Style, February 11, 2023)

University of Portsmouth researchers are developing a 'plastic-eating' enzyme to create an
environment-friendly circular economy for plastic-based clothing.

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Polyester is a widely-used clothing fibre in the clothing industry because of its longevity,
and accounts for 60% clothes that are worn, according to European Environment Agency,
however, the University of Portsmouth researchers argue it mostly ends up being
incinerated or in landfills, which creates a lot of pollution.

To tackle this issue, the University of Portsmouth’s Centre for Enzyme Innovation is
investigating how to breakdown the chemical building blocks of polyester textiles to
create safe and energy efficient recycling. The research team had previously developed a
similar solution for single use plastics, including polyethylene terephthalate (PET).

The addition of dyes and other chemical treatments make it even harder for these tough
oil-based materials to be ‘digested’ in a natural process. Developing enzymes that can
efficiently ‘eat’ polyester clothing, without energy intensive pre-treatment, is the biggest
challenge, the University team explains.

Director of the Centre for Enzyme Innovation at the University of Portsmouth, professor
Andy Pickford said: “We will develop enzymes that can deconstruct the PET in waste
textiles, tolerating the challenges that this feedstock poses, namely its toughness and the
presence of dyes and additives. “We want a system that uses plastic in the same way we
use glass or tin cans – infinitely recycled. The ultimate aim is to close the loop – however,
this requires not only the technology but also the will to do so.”

The scientists explain clothing has some of the lowest rates of recycling, with much of it
being incinerated or ending up in landfill. Whilst it is possible to turn good quality oil-
based textiles into carpets and other products, current recycling methods are highly
energy intensive.

The hope is that the enzymes developed at the University of Portsmouth will contribute
towards an environmentally-friendly circular economy for plastic-based clothing.

The research, which is being funded by the Biotechnology and Biological Sciences
Research Council (BBSRC), started at the end of January 2023 and will last for 18 months.

The fashion industry has been investing in similar projects in a bid to improve its
environmental credentials. For example, earlier this month a project was announced that
aims to reducing microfibre shedding during the manufacturing process.

Home

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DEFRA EXCLUDING TEXTILES FROM EPR PLANS ‘EXTREMELY

DISAPPOINTING’

(Source: Resource, February 11, 2023)

Defra Secretary of State, Thérèse Coffey, has said that the Government currently does not
have any plans to introduce an extended producer responsibility (EPR) scheme for
textiles.

Appearing before the Environment Audit Committee (EAC) on 8 February, Coffey said
that she still needs to go on ‘a deep dive’ to understand the concerns around EPR but
believes that Defra needs to make progress on the EPR of packaging materials before
considering the inclusion of anything else. The EAC has been pushing for EPR for textiles
since 2019.

She noted that Defra is funding the Textiles 2030 as part of its wider waste reduction
programme, but could not promise any progress within 2023. She and Defra Director
General David Hill commented that as packaging reforms and EPR account for ‘75 to 80
per cent’ of the waste sector’s shift towards net zero, this would be Defra’s priority at
present. Independent MP Claudia Webbe questioned the Environment Minister over a
letter MPs sent to Defra in November 2023 which raised concern over a series of
consultation and policy announcement delays. Coffey had responded at the time that she
needed to take ‘a series of deep dives into priority issues’. Webbe questioned whether she
could now define her top three priorities.

Coffey said that in the time frame since the letter had been sent, Defra has responded on
deposit return schemes (DRS), is now ‘close to resolving consistent recycling’ and that ‘we
do want to make progress with EPR’ but is being held back by industry concerns.

The Minister said there are also questions around sequencing for additional EPR schemes
and what the cumulative load for business and industry could be.

Coffey added that Defra is ‘really keen to get the whole circular economy thing going
again’, but said that further work needs to be done on what will be prioritised from the
2018 Resources and Waste strategy over the next 18 months.

Webbe pointed to the recently released Environment Improvement Plan and asked when
the maximising resources and minimising waste program, which is referred to in the Plan,

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will be released. Defra Director General David Hill said it was expected ‘very soon’. In
terms of DRS, the EAC clarified that no scheme will include cartons, but the Welsh and
Scottish schemes will include glass. In response, Coffey reflected on the progress that has
been made with recovery of beverage cartons, stating her wish to see more councils
include it in their kerbside recycling schemes.

Coffey said she was confident that having a ‘plastic and cans approach’ is the best way to
get the DRS scheme underway in England and Northern Ireland, reiterating that the
original target was ‘on-the-go’ packaging and that the details of each DRS are decided at
a devolved level. She added: “I felt we'd lost the way of what DRS was really about. It's
about consumption.

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