AGP Executive Report

Cotton Revival & Supply Chain: Busia County in Kenya is distributing 24 tonnes of cotton seed to restart production, jobs and incomes, aiming to rebuild the cotton value chain. Decarbonisation Push for Garments: A report says Cambodia’s relatively clean power and renewables build-out could help garment exports as brands tighten 2030 decarbonisation demands. Vietnam Trade Momentum: Vietnam’s trade hit a record $445bn in Jan–May 2026, with textiles and garments among top export categories. Energy Cost Pressure on Textiles: Tamil Nadu’s textile sector could save up to ₹3,250 crore a year by switching to renewable electricity, cutting emissions as energy bills rise. Cotton Market Volatility: Brazil cotton prices climbed for a fourth month on tight selling, while US ICE cotton slid despite strong export sales and higher certified stocks. Logistics & Tariff Anxiety: Drewry’s World Container Index jumped 22.6% on earlier peak-season demand and frontloading ahead of possible US tariff moves. Textile Waste Policy in the UAE: The UAE launched “Naseej” to tackle 220,000 tonnes of annual textile waste, but brands and NGOs say consumer behavior must change. Recycling Tech Funding: GR3N closed a €15.5m Series B to scale microwave-assisted PET chemical recycling, targeting broader textile PET waste streams. Labour Crackdown: South Africa’s labour blitz in a KwaZulu-Natal textile factory detained 21 undocumented workers and a factory owner over alleged exploitation and inhumane conditions.

Textile Chemicals & Finishes: Avecia supplied its Purista antimicrobial finish to Arvind’s Ankur Textiles for a new 100% cotton voile blouse fabric line, with national distribution planned. M&A in Dyes: DyStar agreed to buy the remaining shares of Mitsui BASF Dyes (MDB) in Japan, pending regulator approval, to strengthen its disperse dyes position. Seating Innovation (Contract Furniture): KI debuted the Kiaura Collection built with Cognetic Technology, pitching “Human Performance Seating” that continuously responds to body shifts. Policy & Trade Pressure: Pakistan business leaders warned the IMF program shouldn’t “squeeze” compliant firms via budget burdens. Health & Ink Claims: Doctors say lupus can’t be blamed on tattoos based on current understanding, noting lupus typically develops gradually. Circularity & Waste: Navi Mumbai unveiled a “Recycle Hub” roadmap targeting plaster of Paris idols, textile waste and decentralized waste systems. U.S. Forced-Labor Tariffs: Multiple reports highlight new U.S. tariff threats tied to forced-labor investigations, with India among the targets. Local Textile Sector Support: India set up sector working groups to identify products for domestic manufacturing, including textiles and footwear. Handicrafts & Employment: Odisha laid groundwork for a Pipili applique and handicrafts hub to train artisans and push international sales.

US Tariff Shock for Textiles: The U.S. is proposing 12.5% duties on India and other countries under forced-labour trade probes, while India says talks and a framework for a trade deal are still moving—exporters are especially worried about China being hit too. Bangladesh Power Cost Pressure: Bangladesh raised electricity tariffs (retail +16.68%, wholesale +19.85%), a direct hit for electricity-heavy textile and garment firms already squeezed by costs and weak demand. Cotton Market Watch: ICE cotton futures eased as a stronger U.S. dollar hurt export competitiveness, even as improved U.S. rainfall lifted crop prospects. Circularity & Waste: Navi Mumbai is pushing recycling plans including textile waste processing and recovery of plaster-of-paris idols under new solid waste rules. Textile Craft Spotlight: Türkiye’s denim weaving is showcased at ITM 2026 in Istanbul, highlighting efficiency and higher-value production as mills adapt. USDA Cotton Push: USDA elevated its “Plant Not Plastic” push via the Great American Cotton Plan to boost demand for U.S.-grown cotton and revive domestic textile manufacturing.

US Tariff Shock for Textiles: The U.S. USTR has proposed new Section 301 tariffs of 10% to 12.5% on imports from 60 economies over alleged forced-labor failures, with a textile/apparel mechanism that could allow limited volumes at reduced rates—while partners push back and India says it will engage. Trade Deal Boost for India’s Textiles: India-Oman CEPA took effect June 1, giving immediate duty-free access on 945 textile and apparel tariff lines and zero duty on handicrafts, with a digital certificate of origin to cut friction for exporters. Bangladesh RMG Under Pressure: Bangladesh export earnings fell 7.09% in May as apparel shipments dropped 8.29%, with stakeholders citing energy shortages, higher costs, and weaker global demand. Circularity & Waste Action: ReFiber launched a Mumbai initiative to boost textile waste collection and upcycling, adding momentum to India’s circular fashion push. Energy for Cleaner Production (Gujarat): GACL partnered with CleanMax on a hybrid 160.24 MW wind-solar project to supply 100% renewable power to its Gujarat plants, targeting major annual CO2 cuts. Handloom Spotlight: Nagaland’s Gandhi Shilp Bazar opened in Dimapur, bringing 40 artisans and weavers to promote handloom and handicrafts for domestic and export markets.

US Forced-Labour Tariffs: The U.S. Trade Representative has proposed 10%–12.5% additional duties on imports from 60 economies after finding weak enforcement of forced-labour import bans, with a special textile/apparel mechanism also on the table; India says it’s engaged in Section 301 talks while a framework agreement is being finalized. Assam Muga Silk Push: India launched Mission “Senehjori” with about ₹411 crore to build a global luxury Muga silk ecosystem, covering the full value chain from rearers and weaving to GI authentication, exports, digital traceability and tourism. Textile Compliance Risk: Researchers at UMass Amherst warn that electrochemical dye wastewater treatment can form hazardous byproducts like chloroform and bromoform when sodium chloride is used, raising worker and environmental concerns. Cotton & Nylon Price Signals: ICE cotton rose on a weaker dollar and weather risks, while bearish benzene prices dragged nylon 6 DTY and nylon 66 lower; global manufacturing output growth also accelerated toward a near five-year high in May. ASEAN Manufacturing: ASEAN’s PMI improved in May as new orders strengthened and production picked up, though export sales fell again. Industry Tech & Sustainability: Printful rolled out a guide to eco-friendly fabrics for print-on-demand, while Optitex and NedGraphics appointed James McDermott as Europe regional sales director.

Circular Luxury & Upcycling: Miu Miu’s “Upcycled 2026” reframes luxury as reconstructed archival garments, keeping wear and imperfection as part of the design story. Fire-Safety PPE Standards: Milliken became the first textile manufacturer to sign the IAFF PPE Manufacturer Code of Conduct, pledging safer, compliant fire-fighter protective clothing and noting it hasn’t used PFAS for fire-service fabrics since 2021. Cotton Finishes Recognition: India’s Dr N Vigneshwaran was named ICAC Researcher of the Year for cotton-processing work including nano-silver/nano-zinc oxide finishes delivering 99% antibacterial efficacy and UPF 50+ UV protection. UAE Textile Circularity Push: The UAE launched “Naseej,” a national platform to coordinate policy, collection, recycling, research and public engagement to cut textile waste (estimated 220,000 tonnes/year). Hospitality Bedding Supply Expansion: Northern Linens expanded North American wholesale bedding programs with OEKO-TEX certified lines, private labeling and warehousing for consistent bulk quality. Activewear Innovation Spotlight: JINTEX highlighted sustainable performance in activewear, tying its half-century mission to today’s demand for greener functional textiles. Corporate Leadership Moves: Lenzing AG appointed Georg Kasperkovitz as CEO effective June 1, while Lanvin Group named Xi Luo as CFO effective June 1. Market/Policy Watch: India’s cotton duty waiver is easing supply for mills (Tiruppur yarn prices steady), while New Mexico finalized PFAS rules that will restrict intentionally added PFAS in textiles and related products starting in 2027–2028.

Textile Trade & Policy: India’s temporary suspension of the 11% cotton import duty (June 1–Oct 31) is being framed by NITMA as a strategic boost for export competitiveness, while the move also helped underpin a bullish turn in ICE cotton futures after the market expected higher Indian demand. Cotton Markets: USDA reported stronger US Upland cotton export sales and shipments in the week ended May 21, with Vietnam, Pakistan, China and Türkiye among key buyers. Industrial Pulse (Asia/Europe): S&P Global data showed Vietnam manufacturing expanding mid–Q2 as firms and customers built safety stocks amid Middle East disruption; Turkey’s manufacturing PMI edged toward stabilisation; and India’s April IIP rose 4.9% YoY with textile manufacturing up 15.6% YoY. Machinery & Innovation: Intertextile Shenzhen (June 9–11) spotlights sustainability and AI, while Shima Seiki will showcase WHOLEGARMENT and cutting tech at ITM 2026 in Istanbul (June 9–13). Regional Business Climate: Delhi’s Udyog Nagar industrial cluster (garments/textiles/footwear) is set for new internal roads and stormwater drains to tackle waterlogging and drainage bottlenecks.

Cotton & trade policy: India’s government waived customs duty on cotton imports for five months (into October), a move industry groups say should ease supply and support textile exporters. UAE circularity push: The UAE launched “Naseej,” a national initiative aimed at tackling about 220,000 tonnes of annual textile waste through coordinated policy, industry action, research and public engagement. Regional trade wins: Kenya’s exports to the US hit a record after the renewal of Agoa duty-free access, with textile and apparel firms benefiting from reduced uncertainty. Manufacturing momentum (with risks): US manufacturing expanded in May at the fastest pace in four years, with textiles among growing sectors, but analysts warned firms are front-loading orders amid supply-chain strain from the Middle East. Sustainability materials: GANNI is developing fabrics from olive scraps, worn jeans and leather waste, and is working toward digital product passports by 2028. Labor & compliance: Surat police rescued 37 child labourers from textile units, alleging work in cutting and folding. Business leadership: Mafatlal Industries named Raghunath Balakrishnan as Director (Strategy & Projects) after a long CEO tenure.

UAE Circular Push: The UAE has launched “Naseej,” a national initiative for textile circularity, aiming to shift the sector from linear take-make-waste to a coordinated circular economy model across policy, industry action, research and public engagement. Cotton Duty Relief: India temporarily exempted cotton imports from key customs duties and cess from June 1 to Oct 31, 2026, with industry groups saying it will ease cost pressure and support textile exports. Trade Boost for Textiles: India–Oman CEPA took effect June 1, granting Indian exporters duty-free access across 98.08% of Oman’s tariff lines (covering 99.38% of export value), with textiles among the key sectors expected to gain. TCF Digital + Green Agenda (Vietnam): Vietnam’s deputy prime minister urged textile, clothing and footwear firms to accelerate digital transformation, e-commerce and circular models, including recycling textile by-products and discarded clothing. Worker Rights (South Korea): South Korea set up a new team inside the immigration service to prevent human rights violations against foreign workers, including rapid response and on-site investigations, citing incidents including assaults at a textile factory. Textile Waste Regulation Scrutiny (Spain): Spain’s competition watchdog questioned a draft royal decree on textile and footwear waste, warning targets may be unrealistic for mostly small firms. Fashion Heritage Spotlight: Chikankari is being reimagined for global audiences in Lucknow, while Nigeria’s Akwete weaving is finding new life in contemporary fashion.

New Yarn Launches: UNIFI unveiled Luxel™—a linen-inspired, easy-care performance yarn using REPREVE recycled polyester with moisture-wicking, wrinkle resistance and odor control, aimed at apparel, footwear, home and workwear. Nylon Supply Upgrade: Barmag Huitong commissioned a continuous PA6 polymerization plant in China’s Zhejiang, producing 20 tons/day of polyamide 6 for direct spinning into filament yarn with reduced energy use. Stretch Polyester Innovation: Teijin Frontier developed a stretch polyester yarn for sports and outdoor wear, designed for soft stretch and shape stability in 100% polyester textiles, with sales planned from 2027. AI Pressure on Outsourcing: A report warns AI could disrupt the $3b outsourcing pillar by automating routine white-collar tasks tied to global service exports. Automation in Textiles: Another piece argues AI, robotics and sensors can cut waste and improve quality by turning data into faster operational feedback loops. Cotton Duty Relief: India scrapped cotton import duties for five months (until Oct 30) to secure contamination-free fiber for exporters. Trade Deal Boost: India-Oman CEPA takes effect June 1, granting zero-duty access for major labour-intensive exports including textiles, plus professional mobility. Industry Outlook: ANDRITZ says needlepunch nonwovens remain resilient, supported by diversified end markets and ongoing infrastructure investment. U.S. Textile Snapshot: NCTO’s “State of the U.S. Textile Industry” highlights $60.9b output, 453k jobs, and ongoing plant closures amid tariff and trade pressures.

Cotton Cost Relief: India’s government has temporarily exempted all customs duties on cotton imports from June 1 to Oct 30, 2026, aiming to ease input costs and stabilize supply for the textile and apparel value chain, with extra focus on helping SMEs. Medical Textiles Push: Union Textiles Minister Giriraj Singh inaugurated a Medical Textiles Testing Laboratory at Andhra Pradesh MedTech Zone in Visakhapatnam to speed up quality checks for PPE, surgical gowns, masks and wound-care products. Women Empowerment in Apparel: Singh also visited Brandix’s SEZ facility near Visakhapatnam, praising its role in women’s economic empowerment and job creation, while highlighting technical textiles as a growth area. Port Disruption for Yarn: A Gujarat High Court stay has left nearly 1,000 containers of imported specialty yarn stuck at Nhava Sheva and Hazira, disrupting working capital for Surat’s textile traders. Bangladesh Apparel Support: Budget 2026–27 proposals are framed around tax, VAT and customs changes meant to sustain Bangladesh’s apparel competitiveness amid weak orders and factory underutilisation.

Cotton & sourcing policy: China extended its Xinjiang cotton target-price mechanism, aiming to stabilize farmer income and give mills and exporters a clearer cotton floor amid raw-material volatility. US textile demand push: USDA unveiled the “Great American Cotton Plan” to lift the farm economy and revive domestic textile manufacturing while widening trade for American-grown cotton. Trade & tariffs pressure: India’s textile sector is urging faster refund releases and lower utility/tax burdens as West Asia conflict and global competition squeeze order volumes and margins. Regional textile growth: India’s Union Textiles Minister said the Centre is committed to turning Andhra Pradesh into a textile and handloom hub, with focus on cotton productivity and new textile industry investments. Circularity & waste sorting: Italy’s Junker app analysis flags clothing/textiles as a commonly misunderstood waste category, highlighting gaps in correct disposal. Heritage meets industry: Scotland’s Knockando Woolmill plans to restart its Victorian waterwheel to generate renewable power, blending textile heritage with modern energy needs. Handloom spotlight: Pochampally Ikat gained global attention after being showcased at Cannes, reinforcing GI-tagged craft on the international fashion stage.

US Cotton Push: USDA unveiled the “Great American Cotton Plan,” aiming to revive U.S. cotton demand, rebuild domestic textile manufacturing, and boost exports, with added support for mills and processors plus “Plant Not Plastic” positioning. Corporate Results: Nandan Denim reported slightly lower FY26 profit as revenue fell, reflecting ongoing pressure in denim and shirting markets. Textile Tech & Automation: CreateMe says its “physical AI” approach can automate soft-material making by replacing traditional sewing with robotic, adhesive-based construction. Microplastics & Health: A new study links PET microplastics to lung retention in mice and stronger respiratory inflammation, adding to concerns about synthetic textiles. EU Policy Pressure: NGOs urged the European Commission to prevent microplastic emissions from textiles, citing synthetic fibers as a major EU pollution source. Leather Industry Oversight: Bangladesh’s minister backed relocating tanneries to Savar but criticized execution, pointing to effluent-treatment shortfalls. Circular Fashion in Action: A study on El Salvador shows U.S. second-hand clothing is sorted and sold through a structured reuse chain, keeping most garments under $15. Regional Textile Growth: India’s Andhra Pradesh push includes proposals for NIFT in Amaravati and expanded textile value from banana and other horticulture fibers.

Trade & Logistics: Nigeria’s exporters say a new Nigeria–East and Southern Africa air cargo corridor under AfCFTA is cutting shipping costs by up to 75%, boosting competitiveness for agro-processed goods, cosmetics, and textiles/fashion. Circular Materials & Recycling: PureCycle’s Thailand unit cleared for a Rayong polypropylene recycling plant via Thailand’s FastPass programme, aiming to feed recycled PP into apparel and technical textiles; Loop Industries also signed an MoU for its first commercial recycled PET plant in India (Gujarat). Industry Finance: Nandan Denim shares rose after FY26 profitability held steady as costs fell, despite weaker stock sentiment. Textile Innovation & Policy: China’s textile access now hinges on green-chemistry proof, while EDANA’s INDEX 26 in Geneva wrapped with strong nonwovens turnout and a push toward circular design and lower carbon footprints. Regional Manufacturing: Azerbaijan inaugurated the “Garabagh Textile House” in Khojaly, targeting 1.4m home-textile items annually and creating jobs for returning residents. Market Signals: Eastern Europe is emerging as a growth destination for Turkish ready-to-wear as EU demand softens.

US Cotton Push: USDA unveiled the Great American Cotton Plan to reverse years of losses for growers and rebuild textile manufacturing, blaming input costs, trade distortions, and synthetic fiber dominance. Anti-dumping Pressure in India: India’s textiles and footwear sectors are urging a pause or suspension of anti-dumping probes on chemical intermediaries, citing West Asia war-driven price spikes and shortages. Leather Oversight in Bangladesh: Minister Khandakar Abdul Muktadir inspected sacrificial hide procurement at Dhaka’s Aminbazar, warning against smuggling and syndication while pushing value-added leather exports. Recycling Reality Check (US): A Durham report explains how curbside recycling is routed to a materials recovery facility in Raleigh, aiming to address doubts about whether recycling actually works. Fashion Retail Resale: Zalando partnered with Vestiaire Collective to expand pre-owned luxury fashion across 14 European markets. Circular Textiles Resource: Performance Days released an updated Textile-to-Textile Recycling Innovators 2026 guide to map players across the recycling value chain. New Fiber Trial: Canopy says wheat straw can be turned into viscose and lyocell fibers, reducing reliance on forest pulp. Fasteners Deal: Arsenal Capital Partners agreed to buy a majority stake in Velcro Companies, with manufacturing consolidation plans already underway in New Hampshire.

Bio-based materials: Toray and PTT Global Chemical say they’ve built a full process for 100% bio-based nylon 66 from cassava pulp residues, targeting commercial sales by FY2028. Supply-chain proof: SMX argues “Made in America” is shifting toward verifiable material origin, composition and lifecycle history, pushing molecular marking and digital material identity. Denim sustainability scrutiny: An AP report breaks down why “sustainable” jeans are hard to verify and how consumers can assess farming, dyeing and finishing impacts. Fast-fashion waste rules (EU): Spain’s draft decree would ban destroying unsold textile/footwear and require higher reuse/resale/donation targets, with modulated fees to penalize the fast-fashion model. Heat hits production: A North India heatwave is cutting textile and rice productivity by 15–20%, with garment output and export schedules disrupted in Delhi-NCR. Cotton market: ICE cotton futures extend losses to fresh 1.5-month lows as crude falls, US weather improves and polyester looks cheaper. Trade talks: US and Mexico kick off USMCA review rounds focused on economic security and rules of origin; a US team will visit India June 1–4 to finalize an interim trade pact. Circularity/inspection push: New market reports flag growth in fabric inspection machines and cleanroom apparels as quality and contamination-control demands rise. Regional infrastructure (India): UP CM Yogi Adityanath orders 110 electric buses for Jewar/Noida airport connectivity and expands EV charging—supporting logistics for industrial clusters.