Textile Industry News & Updates | Latest Market Trends | 30 Sept 2024

Textile Sphere News Roundup – 30th September 2024

1. BEE and EESL Select NSL Textile Factories for Energy Efficiency Projects

The Bureau of Energy Efficiency (BEE) and Energy Efficiency Services Limited (EESL) have chosen NSL Textile factories located at Inkollu and Edlapadu in Bapatla and Guntur districts, respectively, for the implementation of the "Demonstration of Energy Efficiency Projects" (DEEP). According to an official release, DEEP aims to support Designated Consumers (DCs) in achieving Energy Efficiency (EE) by introducing market-transforming technologies. This initiative aligns with BEE's Perform, Achieve, and Trade (PAT) scheme, which helps industries meet their specific energy consumption reduction targets, thereby contributing to national energy savings.

EESL plans to showcase nine innovative technologies that have not yet been commercialized on a large scale within the selected companies for implementing DEEP.

2. Chinese Textile and Clothing Exports Confirm Stabilization

In 2023, China's textile exports fell by 8.1%, and its clothing exports dropped by 2.9%. However, the first seven months of 2024 show signs of stabilization, with a 1.12% rise in the exports of textiles, clothing, and accessories. From January to July 2024, China exported goods worth $169.8 billion in these categories. Textile exports primarily drove this slight growth, reaching $80.8 billion, which is a 3.3% increase compared to the same period in 2023.

In contrast, clothing exports experienced a 0.8% decline over the seven-month period, totaling $88.9 billion. This decline, although more contained than last year, reflects the ongoing international economic challenges faced by Chinese manufacturers.

Chinese manufacturers, still heavily reliant on Western orders, face slow recovery in exports due to reduced consumer spending in Western markets and economic difficulties domestically, including the effects of a property crisis. Despite these challenges, China’s sub-council for the textile industry (CCPIT-Tex) remains optimistic, focusing on modernizing and automating its industrial base to reduce costs and lead times.

3. Textile Sector Struggles Over Gas Issues in Islamabad

The textile industry in Islamabad is facing challenges due to the government's decision to cut off gas supply to captive power plants and encourage connectivity to the national power grid. Sources revealed that the Ministers for Power and Petroleum have differing opinions on resolving this issue.

During a recent meeting of the Economic Coordination Committee (ECC), the Petroleum Division suggested revising the gas supply priority order to reduce gas consumption by captive power plants. They proposed increasing gas tariffs to match the higher RLNG (Re-gasified Liquefied Natural Gas) rates, thereby discouraging the use of captive power.

The Petroleum Minister emphasized that the Power Division should have estimated timelines for connecting these plants to the power grid, warning that gas disconnection could have negative consequences on the industry. The ECC ultimately agreed to notify captive power producers about the impending gas disconnection starting in 2025.

4. AP Government to Bear GST on Hand-Woven Garments, Says Textiles Minister

Ministers for Handlooms and Home, S. Savitha and Vangalapudi Anita, announced that the Andhra Pradesh government will bear the GST on hand-woven garments and provide free power to looms. The ministers urged people to wear handloom clothes during festivals, reflecting Telugu culture and supporting weavers. This decision aligns with Chief Minister N. Chandrababu Naidu's commitment to supporting the handloom workers, with plans to revive schemes implemented between 2014-2019 for the benefit of weavers.

The government has developed an action plan to provide 365 days of work to handloom weavers, including training programs, marketing facilities, and organizing exhibitions across the state to promote sales of hand-woven garments.

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