AGP Executive Report

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.

Textile Trade Awards: Trident Limited won TEXPROCIL’s Gold Trophy for “Highest Global Exports,” underlining India’s export push. Corporate Moves in Textiles: Paramount Textile Mills appointed Jayesh Saxena as President for Global Sales & New Business Strategy, aiming to expand product development from its Mumbai base. Circularity & Recycling: Axens, IFPEN and JEPLAN completed a textile-to-textile polyester recycling loop, processing tens of tons of post-consumer PET-rich textiles from France into BHET for new yarns and fabrics. EU Policy on Sustainability: Fair Trade Advocacy Office urged the European Commission to bring in third-country stakeholders as it drafts the Ecodesign for Sustainable Products Regulation, set to affect global textile supply chains from 2029. Returns Waste Fight: Luxome is using AI-native software to reroute usable returns to nonprofits instead of landfills, tackling a growing e-commerce textile waste problem. Export Demand Pressure: Indian Christmas-related goods orders fell 10%–15% amid weak US/EU demand and West Asia-driven cost pressures, though June enquiries remain hopeful. Industry Tech for Heat Decarbonisation: The EU selected 65 projects for an Innovation Fund Heat Auction, including textiles among sectors targeted for cleaner industrial heat. Apparel ODM Growth: Bella Casa Fashion & Retail reported strong FY’26 growth, with apparel ODM now driving 94% of revenue.

Trade Deal Momentum: Russia has cleared the Indonesia–EAEU free trade agreement for implementation, aiming to widen market access for Indonesian agricultural and manufactured goods and cut trade costs across most commodities. EU Industrial Decarbonisation: The European Commission picked 65 projects to share about €400m under its Innovation Fund Heat Auction, targeting cleaner industrial heat and millions of tonnes of CO2 avoided over the next decade. Textile & Craft Spotlight: From Guinea cloth finding new life in modern interiors to tech-supported basket weaving and khanga art moving into contemporary fashion, traditional textiles keep getting fresh routes to consumers. Market Watch: ICE cotton futures were mixed as rainfall and a stronger US dollar weighed on nearby prices, while longer-dated contracts held up on weather and acreage concerns. Policy & Supply Chain: India–Canada CEPA talks are pushing toward a year-end finish, with textiles among the sectors in the delegation mix. Local Industry Pressure: Turkey’s textile sector faces factory closures amid sustainability and energy-efficiency pushback.

Geopolitics & Energy Shock: A new wave of Hormuz-linked energy disruption is being framed as the biggest global jolt since 1973—raising the stakes for supply chains that textile and garment buyers rely on. Trade & Regional Deals: Afghanistan and Uzbekistan have signed $5B+ in trade agreements in eight months, with textiles, cotton and carpets on the list—while Pakistan and China again oppose unilateral moves on Kashmir and pledge trans-boundary water cooperation. Textile Policy & Circularity: Delhi is rolling out old-clothes collection boxes at 10 Metro stations to push “scientific recycling,” and a coalition of 69 fashion brands and platforms is urging EU/US tax changes to make resale and repair cheaper. Industry Moves: India’s Textile Ministry is investing ₹1,000cr to boost raw silk to 44,500t by FY27; KVIC hit record khadi/village sales of Rs 1.87 lakh crore in 2025-26. Supply Chain Pressure: Crisil warns West Asia conflict is squeezing India’s textile and RMG margins via higher costs and delayed pass-through. Sustainability Tech: Hyosung’s bio-based spandex push (bio-BDO from sugarcane) targets lower carbon in stretch yarn.

ITM 2026 Watch: Germany’s Groz-Beckert is bringing energy-saving knitting tech to Istanbul (June 9–13), led by its LCmax needle plus KnotMaster tying and other efficiency-focused systems. Cotton Policy: China has extended Xinjiang cotton target pricing for 2026–2028, keeping the benchmark at RMB 18,600/ton to steady farmer incomes and domestic supply. Trade Talks: India’s Piyush Goyal is pushing to wrap India–Canada CEPA by end-2026 and triple trade by 2030, with a large business delegation in Canada. Event Pipeline: ITMA ASIA + CITME 2026 opens visitor registration for Shanghai (Nov 20–24), with exhibitors claiming record scale and a full value-chain lineup. Industry Planning: Vietnam greenlights a 2026–2035 supporting-industries program, explicitly including garment, textile and footwear. Local Growth: Uttar Pradesh’s YEIDA gets a ₹700m garment investment from Sahu International Attire, targeting ~2,000 jobs. Market Pressure: Sri Lanka reports apparel exports down 7.4% in Jan–Apr as Western demand stays weak.

Presidential spotlight for Northeast craft: Artisans from Nagaland’s Noklak, led by Woven Threads, met President Droupadi Murmu at Rashtrapati Bhavan, presenting handmade home textiles made from Ehlon-niu fibres for the Republic Day “At Home” reception. Bangladesh paychecks under pressure: Industrial Police data shows over 95% of apparel factories cleared April salaries ahead of Eid-ul-Azha, but festival allowance gaps remain—about 14.65% of factories still hadn’t paid by Monday. EU trade decision in motion: The EU is set to internally assess Bangladesh’s proposed free trade agreement, with exporters facing potential duty changes after 2029 if talks stall. Circular fashion goes mainstream: BioFleax® plant-based performance material appears in the Stella McCartney x H&M Spring 2026 collection, moving from material tech to finished garments. On-the-ground risk: A fire at a textile warehouse near Brussels led to evacuations; officials say the toxic smoke plume should fade overnight.

FTA Utilisation Push: India’s next Free Trade Agreement priority is practical implementation—experts warn the gap between signed deals and real border claims leaves utilisation stuck around ~25%, far below developed markets’ 70–80%, so exporters need help turning market access into sustained growth. Textile Tech in Egypt: ACIMIT and ICE Agency wrapped a Cairo workshop with 23 Italian machinery firms and 120+ Egyptian operators, underscoring demand for advanced spinning, weaving and finishing; Italy exported €72m of textile machinery to Egypt in 2025. Pakistan Cotton Shock: Pakistan textile mills are importing US cotton even before ginning starts as stocks run low, with large purchases reported and prices pressured. Sri Lanka Apparel Soft Patch: Sri Lanka’s apparel exports fell 4.72% YoY in April to $328.15m, hit by weaker UK/EU/US demand. AGOA Uncertainty: South Africa is lobbying the US for a 15-year AGOA extension to protect textiles and other export sectors amid Washington scrutiny. Vietnam Customs Upgrade: Hai Phong launches a June 1 pilot for centralised customs clearance to cut processing times by 30–50%.