INDIAN TEXTILES AND CLOTHING INDUSTRY PROSPECTS FOR ECO-LABELLING

INDIAN TEXTILES AND CLOTHING INDUSTRY PROSPECTS FOR ECO-LABELLING INTRODUCTION • WORLD TEXTILES AND CLOTHING MARKET • • • PRESENTLY AT USD 480 bn...
14 downloads 0 Views 194KB Size
INDIAN TEXTILES AND CLOTHING INDUSTRY PROSPECTS FOR ECO-LABELLING

INTRODUCTION • WORLD TEXTILES AND CLOTHING MARKET •





PRESENTLY AT USD 480 bn IS ESTIMATED TO REACH USD 700 bn BY 2012. THE POST QUOTA REGIME HAS POSED STIFF COMPETITION DRIVEN BY LOW COSTS AND NEW LEGISLATION AS WELL AS NON-TARIFF TECHNICAL BARRIERS TO TRADE (TBTs). THE TBTs IN TEXTILE TRADE PARTICULARLY EMPHASIZE HEALTH, SAFETY AND ENVIRONMENTAL ASPECTS IN ADDITION TO SPECIFIC BUYERS’ INTERESTS LIKE ECOLABELLING. PRODUCTION NEEDS TO BE REORIENTED TO SUIT MARKET NEEDS AND KEEPING TBTs IN CHECK.

INDIAN TEXTILE AND CL0THING INDUSTRY • AN IMPORTANT SECTOR OF INDIAN ECONOMY PROVIDING DIRECT EMPLOYMENT TO 35 mn WORKERS. • CONTRIBUTES 14 %TO INDUSTRIAL PRODUCTION, 4 % TO GDP, 17 % TO EXPORT EARNINGS. • 95 % OF INDUSTRY IS UNORGANIZED AND 5 % IS ORGANIZED.

GLOBAL POSITION OF INDIAN TEXTILE AND CLOTHING INDUSTRY • SECOND LARGEST PRODUCER OF RAW COTTON • SECOND LARGEST PRODUCER OF COTTON YARN • SECOND LARGEST PRODUCER OF CELLULOSIC • • • • •

FIBRE/YARN SECOND LARGEST PRODUCER OF SILK FOURTH LARGEST PRODUCER OF SYNTHETIC FIBRE/YARN LARGEST PRODUCER OF JUTE EXPORTS TO THE TUNE OF USD 19.2 bn IN 200607 EXPORTS TO EU TOUCHED USD 6.2 bn

MAJOR SECTORS OF INDIAN TEXTILE INDUSTRY • ORGANIZED COTTON/MAN-MADE FIBRE TEXTILES MILL • • • • • • • • • •

INDUSTRY MAN-MADE FIBRE/YARN FILAMENT INDUSTRY DECENTRALIZED POWERLOOM SECTOR APPAREL AND FASHION INDUSTRY WOOLEN TEXTILE INDUSTRY SILK INDUSTRY HANDLOOM INDUSTRY HANDICRAFT INDUSTRY JUTE INDUSTRY HOSIERY INDUSTRY NON-WOVEN TEXTILE INDUSTRY

ISSUES OF CONCERN • • • • • • • • • • • • •

LOW PRODUCTIVITY DUE TO LACK OF MODERNIZATION INCREASED INPUT COSTS SHORTAGE OF TIMELY AND ADEQUATE WORKING CAPITAL FISCAL STRUCTURE AND REGULATORY REGIME HIGHLY FRAGMENTED INDUSTRY ENVIRONMENTAL ISSUES IN CHEMICAL PROCESSING VERY LITTLE R&D INPUTS HIGH TRANSACTION COSTS TECHNOLOGY GAPS HIGH POWER TARIFFS AND UNCERTAIN POWER SUPPLY LACK OF CREDIT AVAILABILITY AND MARKET AWARENESS LOW LEVEL OF INVESTMENTS VERY BLITTLE ENVIRONMENTAL AWARENESS OF THE UNORGANIZED SECTORS

STRENGTHS • HIGHLY QUALIFIED TECHNICAL MAN POWER • STRONG PURCHASING POWER OF ABOUT 40 MILLION • • • • • •

MIDDLE CLASS STRONG PRODUCTION BASE CATERING ALL REQUIREMENTS COMPETITIVENESS OF COTTON AND BLENDED TEXTILES AND TECHNICAL TEXTILES STRUCTURED CORPORATE PRACTICES LEGAL FRAMEWORK BROAD UNDERSTANDING OF THE CONCEPTS OF ENVIRONMENTAL MANAGEMENT AND ECO-LABELLING AS WELL AS LIFE CYCLE CONCEPTS COTTON AS DOMINATING FIBRE COMPRISING OF MORE THAN 60 PERCENT OF ALL FIBRES

INDIAN ECOMARK SCHEME • IT COVERS QUALITY AS WELL AS ENVIRONMENTAL REQUIREMENTS • DENOTED BY EARTHEN POT TOGETHER WITH THE STANDARD MARK OF • • • • • •

THE BUREAU OF INDIAN STANDARDS VOLUNTARY IN NATURE ABOUT 17 MANUFACTURERS CERTIFIED TO ECOMARK BUT FOR PAPER AND PAPER BOARD ETC ONLY SO FAR NO CERTIFIED PRODUCERS OF TEXTILES WITH ECOMARK IN VIEW OF NO DEMAND IN THE INTERNAL MARKET AND NO RELEVANT LEGISLATION HOWEVER MANY CERTIFIED PRODUCERS CAN MEET STRINGENT REQUIREMENTS UNDER OEKOTEX 100 SCHEME AND ARE COMPLYING SUCH REQUIREMENTS THE ECOMARK CONCEPT IS GENERALLY BASED ON LIFE CYCLE CONCEPT BUT NOT VERY SPECIFIC LIKE EU FLOWER THE ECOMARK REQUIREMENTS OF TEXTILES AND APPARELS ARE COVERED UNDER IS 15651:2006 TEXTILES – REQUIREMENTS FOR ENVIRONMENTAL LABELLING - SPECIFICATION

PROBLEMS IN IMPLEMENTATION OF ECOMARK SCHEME FOR TEXTILES • • • • • • • • • • • •

HIGH COST OF CHEMICALS AND PROCESSING HIGH COST OF INPUTS LIKE POWER, FINANCE, ETC COMPLICATED GOVT PROCEDURES NO CLEARCUT REGULATION/GUIDELINES AND THEIR INEFFECTIVE IMPLEMENTATION HIGH COST OF TESTING AND CERTIFICATION VERY LITTLE AND FRAGMENTED DEMAND ADJUSTMENT OF PRODUCTION PROCESSES COSTLY THE SUPPLIERS ARE MOSTLY SMALL AND MEDIUM INDUSTRIES IN THE DECENTRALISED SECTOR PROBLEMS IN THE AVAILABILITY OF ECO-FRIENDLY CHEMICALS LIMITED KNOWLEDGE OF THE MANUFACTURERS ABOUT ECO-FRIENDLY PROCESSES AND CHEMICALS VERY LITTLE AWARENESS ABOUT ECOMARK AND ITS BENEWFITS AMONG THE USERS AND PRODUCERS UNSKILLED MAN POWER AND OUTDATED MACHINERIES

IS 15651:2006 TEXTILES – REQUIREMENTS FOR ENVIRONMENTAL LABELLING SPECIFICATION • COVERS QUALITY REQUIREMENTS AS SPECIFIED IN THE

RELEVANT PRODUCT STANDARD OR AS AGREED BETWEEN THE BUYER AND THE SELLER • ENVIRONMENTAL REQUIREMENTS INCLUDE LIMITS FORFOLLOWING AS PER INTERNATIONAL NORMS: • • • • • • • • •

UREA FORMALDEHYDE INSECTICIDES AND PESTICIDES CHLORINATED HYDROCARBONS OPP AND OTHER PHENOLIC COMPOUNDS HEAVY METALS ORGANO TIN COMPOUNDS COMPLIANCE TO ENVIRONMENTAL LEGISLATION PCPL BANNED ARYLAMINES

ISSUES IN INPLEMENTATION OF ECOLABELLING IN INDIA • VERIFICATION AND VALIDATION OF TEST METHODS AND • • • • • •

AVAILABILITY OF CHEMICALS HARMONIZATION OF PROCEDURES AND REQUIREMENTS MUTUAL RECOGNITION OF NABL CERTFIED TESTING LABORATORIES AS PER ISO 17025 TRAINING OF ENVIRONMENTAL ISSUES, LIFE CYCLE CONCEPTS, RAW MATERIALS AND PRODUCTION PROCESSES STANDARDIZATION AND QUALITY ASSURANCE MASSIVE AWARENESS OF ECO-FRIENDLY PRODUCTS AND PROCESSES GOVERNMENT POLICY AND LEGISLATION

CONCLUSION AND RECOMMENDATIONS • ECO-LABELLING ONLY AS A VOLUNTARY APPROACH • NO TRADE BARRIERS IN TERMS OF ENVIRONMENTAL • • •

• • •

REGULATION AND STANDARDS HARMONIZATION OF STANDARDS, REQUIREMENTS AND CERTIFICATION PROCEDURES MUTUAL RECOGNITION OF TESTING AND CERTIFYING AGENCIES AS PER ISO STANDARDS/GUIDES TRAINING OF MAN POWER IN ISO STANDARDS ON ENVIRONMENTAL LABELLING, LIFE CYCLE ANALYSIS, ENVIRONMENTAL MANAGEMENTS, SIGNIFICANT ENVIRONMENTAL ASPECTS/IMPACTS IDENTIFICATION AND ASSESSMENT AND AUDITING TECHNIQUES (ISO 14001:2004) AVAILABILITY OF ECO-FRIENDLY DYES AND CHEMICALS NECESSARY REGULATION/STANDARDS FOR IMPLEMENTATION, IF REQUIRED PRICE/PURCHASE PREFERENCE FOR ECO-FRIENDLY PRODUCTS

THANK YOU