AGP Executive Report

Textile Trade Policy Shock: Nigeria’s Senate is pushing for a total ban on textile material imports, arguing it will revive local mills, secure jobs, and reduce smuggling-driven insecurity. Regional Market Access: India’s labour-intensive exporters, including textiles, are set to gain from the India–Oman CEPA that went live June 1, offering duty-free access across most tariff lines. Women’s Textile Skills Push: Punjab’s “She Threads” backs rural women with textile training and stipends, aiming to feed jobs into garment and quality roles. Industry Orders & Capacity: Varvee Global won a ₹120.8m order for suiting fabrics, while Grasim is reported to be expanding lyocell capacity in Karnataka—both signals of continued investment in higher-value textiles. Supply Chain & Cost Pressure: Mongolia’s inflation rose to 11.2% in May, with clothing/textiles/footwear contributing to price pressure, and US container imports are forecast to rise in June as retailers frontload cargo. Recycling Tech Funding Risk: Loop Industries warned it may need additional financing to keep operating, despite continuing commercialization of PET and polyester recycling. Factory Handling Innovation: HEROLIFT showcased a mobile reel lifter at KOREA MAT, targeting safer, faster roll handling for packaging, printing and textiles.

Lyocell Expansion in India: Grasim Industries approved ₹3,094 crore for Phase II Lyocell capacity at Harihar, Karnataka (110K TPA, with lines due 2028 and 2030), aiming to lift total Lyocell output to nearly 210K TPA and strengthen sustainable fibre supply. Circular Textiles Contract: Warrington Borough Council backed a five-year textile and shoe recycling contract (with options to extend) with Recycling Solutions North West, using 44 collection sites and fixed tonnage-based income projections. Recycling Tech for Spinners: Uster launched the Recycling Opening Index (ROI) in its AFIS 6 system to help spinners blend recycled fibres with better process control and circularity performance. Policy Push on Imports: Nigeria’s Senate urged a complete ban on textile imports to revive local mills, protect jobs, and boost cotton cultivation, while also calling for more Bank of Industry funding. Trade & Compliance Pressure: A Bangladesh-focused OpEd warns of a “US cotton trap” tied to forced-labour enforcement, as Washington moves toward Section 301-style tariff actions. Market Outlook: Emkay Research says India is at an inflection point to regain global textile/apparel share, supported by FTAs and tariff advantages. Local Handloom Boost: India’s textiles ministry-backed project in Arunachal Pradesh laid groundwork for a Ziro handloom marketing complex to expand market access for weavers.

Lyocell Expansion in India: Grasim Industries approved a ₹3,094 crore (US$323m) Phase II Lyocell build at Harihar, Karnataka, adding 110,000 tpa via two 55,000 tpa lines (first by 2028, second by 2030), taking total capacity to nearly 210,000 tpa and pushing cellulosic fibres beyond 1 million tpa. NASA x Fashion Tech: Prada and Axiom Space unveiled the Liquid Cooling and Ventilation Garment for NASA’s Artemis moon suits, using textile-led thermal management to keep astronauts cool during long spacewalks. Textile Supply Chain & Trade: China and Cambodia signed an AEO mutual recognition deal to speed customs clearance and cut inspections for compliant firms, while India launched a portal to operationalise BHAVYA—100 industrial parks backed by ₹340bn. Labour & Industry Pressure: Garment workers in Dhaka’s Mirpur blocked a road over a factory closure (Uniform Textile), and South Africa’s unemployment debate drew pushback against blaming migration. Market Watch: ICE cotton futures stayed bearish amid ample supplies and rising certified stocks; PTA prices in Asia firmed as polyester demand supported buying. Circularity & Compliance: Bangladesh remains a net importer of e-waste despite Basel rules, with textiles among the biggest importer categories.

US Forced-Labor Tariffs: USTR has proposed new Section 301 duties of 10% to 12.5% on imports from 60 economies, with a special textile mechanism and a July 6 comment deadline—raising new compliance pressure for apparel and textile supply chains. EU Customs Overhaul: EU Commissioner Maroš Šefčovič hosted an implementation dialogue on the EU Customs Union reform, including a new Customs Data Hub, with textiles among the sectors focused on smoother, more secure trade. Textile Recycling License Fight: Harvest Nano and Dr. Refael Aharon confirmed default and terminated license rights tied to a West Michigan textile-waste recycling system, affecting rights around converting post-consumer textiles into cellulose-based materials and contamination/PFAS mitigation. Fashion & Craft Spotlight: Kangana Ranaut promoted Odisha’s Kotpad handloom saree during a Bhubaneswar visit, highlighting the GI-backed tribal weave. Global Market Push: Bangladesh’s BCCCI plans a delegation to the China–South Asia Expo and Kunming fair, putting textiles and RMG front and center to expand exports and investment. Egypt Garment Growth: Egypt’s ready-made garment exports rose 15% to about $1.15bn in Jan–Apr 2026, with the US and Europe leading demand. Circular Innovation Awards: H&M Foundation named 2026 Global Change Award winners, including projects targeting bio-based materials and textile-to-textile recycling. Regional Industry Support: Bangladesh and Mauritius agreed to reopen the Bangladeshi labor market via an MoU, with Mauritius citing needs for skilled workers for its textile industry.

Cotton Cost Relief (India): Gujarat welcomed the Centre’s decision to suspend an 11% import duty on cotton until Oct 30, easing pressure on spinning mills, fabric makers and garment exporters after cotton prices surged to Rs 68,500 per candy; industry groups say cotton and yarn costs have started moderating, improving margins and competitiveness. Industrial Approvals (India): Odisha cleared major textile and apparel projects under its single-window system, including Nandraj Textiles’ Rs 168.64 crore Khurda unit (10,306 jobs), Shahi Exports’ Sambalpur knitted garments plant (1,840 jobs), and an integrated textile park in Ganjam (350 jobs). Circular Textiles (Czechia): Prague 6’s “Reuse Sunday” returns June 14 with a clothing and household swap plus repair activities, pushing second-life consumption to cut textile waste. Women in Craft (UK): Heritage wool mill MOON opened its doors to Women in Tailoring members, offering a behind-the-scenes look at the full wool-to-finish process and strengthening producer-to-tailoring links. Sustainability & Materials (Global): UNEP confirmed a textiles implementation programme will be a key focus at its Switzerland summit under the chemicals framework. Fashion Innovation (H&M Foundation): The H&M Foundation’s Global Change Award 2026 named winners tackling circular fashion, including bio-based fibers, biodegradable dyes, and textile-to-textile recycling advances.

UAE Circular Fashion Push: The UAE’s “Naseej” initiative kicked off at Abu Dhabi’s Yas Mall, aiming to recycle and remanufacture 220,000 tonnes of textile waste each year, with residents encouraged to drop off unwanted clothes via a collection network. EU-India Textile-Adjacent Trade Talks: A “Team Europe” delegation will visit Assam on June 8-9 to explore value-chain partnerships across sectors including tea and agri-food processing, flavours and fragrances, and AYUSH—areas that often overlap with textile supply chains and industrial clusters. Industrial Expansion in Egypt: Egypt’s PM Mostafa Madbouly toured Alexandria’s Borg El Arab zone, highlighting new and expanded apparel and textile-linked projects including a Jade Textile ready-made garments factory and other manufacturing launches. Circular Wool Trial in Northern Ireland: UFU and Ulster Wildlife launched a peatland restoration trial using locally sourced wool “logs,” showing how textile materials can support environmental restoration. Denim Sustainability Reality Check: An AP report highlights why making denim truly sustainable is hard, from cotton inputs to multi-country processing and tracing labour conditions.

Textile Circularity Push (UAE): The UAE launched “Naseej,” a national initiative for textile circularity, aiming to build a working system for collecting, reusing, recycling and reducing textile waste—while industry voices warn recycling alone won’t fix weak collection, resale and repair infrastructure. Textile Waste Solution (New Zealand/Australia): Kiwi startup After is collecting unwearable clothing and fabric scraps and shipping them to India to be recycled into yarn, already diverting 140 tonnes via pickups and business partnerships. Apparel Trade Watch (Bangladesh): Bangladesh’s exports rebounded in April, with apparel leading the jump as delayed shipments after Eid helped lift earnings—though exporters expect a clearer trend by July. Cotton & Inputs (Pakistan): APTMA urged customs tariff changes to protect Pakistan’s textile sector, including cutting PTA duty to 3% amid concerns over high costs and anti-dumping impacts; meanwhile KCA resumed its Daily Cotton Spot Rate after a months-long disruption. Industry Investment (Odisha, India): Odisha cleared 24 industrial proposals worth Rs 3,793 crore, including textiles and apparel, targeting jobs for over 19,000 people. Tech-to-Textile Context (EU/India): An EU delegation is set to visit India’s Northeast to build value chains in areas that can intersect with textiles and manufacturing, including semiconductors/electronics and agri-food processing.

Bangladesh Apparel Watch: RMG exports to major markets fell in July–May FY26, with earnings at $35.31bn (down 3.41% YoY) as weak global demand, fewer buyer inquiries, Middle East risks and heavy competition—especially in Europe—kept pressure on shipments. Denim Industry Push: Bangladesh Denim Expo (20th edition) opens June 10 in Dhaka with 50+ exhibitors from 10 countries, aiming to move “Frontline to Future” via new trade and product themes. Industrial Expansion in Bangladesh: BSCIC plans a new industrial estate in Pabna, with road widening, boundary walls and drainage upgrades starting this year; plot prices and transfer fees are set for review. Odisha Investment Drive: Odisha cleared 24 industrial proposals worth Rs 3,793 crore, including textiles/apparel projects, expected to create about 19,924 jobs across 14 districts. Cotton Yarn Shock in India: Karur textile makers report abnormal cotton yarn price spikes of 30–40% for thicker yarn, driven by supply-demand mismatch and geopolitical-linked raw material costs. Tech for Textiles: Researchers highlight stretchable, brain-inspired neuromorphic electronics that could enable wearable AI and smart textiles. Circular Materials Breakthrough: Swiss cleantech GR3N raised €15.5m for a microwave-assisted PET recycling plant in Spain targeting the hard-to-recycle 85% of PET waste. Fashion & Craft Spotlight: SHYPELYK’s wearable “fairytale” aesthetic and Makhdoom Pur’s khaddar legacy show how heritage and design storytelling keep textiles culturally relevant.

Textile Machinery Deal: Navis TubeTex says Ecuador’s Pinto has installed a full open-width knit finishing line, including tenter and open-width compactor tech, aiming for higher quality at lower cost. EU Sustainability Push: Turkey is positioning to benefit from tighter EU rules like ESPR, Digital Product Passports and EPR, betting on traceability, faster delivery and more circular production. Energy Cost Shock for Mills: India’s LPG commercial cylinder prices jumped again from June 1, squeezing dyeing/printing/finishing clusters already hit by weak demand and margin pressure. Circularity & Water Use: Shahi Exports highlights sustainability investments, arguing true circularity needs more than recycling—covering dyes, water cuts, renewables and worker treatment. Digital Trade & Compliance: Pakistan’s FASTER refund system may restrict exporter refunds unless firms meet digital monitoring, digital invoicing and “digital eye” requirements, with textile among targeted sectors. Policy & Investment Signals: Bangladesh cabinet approved a 2026 FDI Incentive Scheme, while China’s MOFCOM plans 100+ import promotion events in 2026 to boost cross-border trade. Industry Finance: Ind-Ra says India’s IBC recovery outcomes remain constrained by execution delays, with liquidations still outpacing resolutions. Tech for Printing: SKYJET showcased advanced double-sided digital printing at ITCPE 2026, reinforcing demand for efficiency and differentiation in textile printing.

Textile Circularity Push (UAE): The UAE’s Naseej “National Initiative for Textile Circularity” is rolling out to cut the country’s 220,000 tonnes of annual clothing waste, with public events at Yas Mall urging donation, reuse and recycling. Trade & Policy Shock (US forced labor): The US is moving to add duties on 60 countries under forced-labor import rules, with Cambodia named among those failing to ban or enforce bans—raising new compliance pressure for textile and apparel supply chains. Circular Fashion Outlook (Europe): A KPMG/Fédération de la Mode Circulaire study says Europe’s circular fashion sector could reach €104bn revenue and 88,000 jobs by 2030, driven by regulation like EPR and digital product passports. Factory & Supply Chain Moves (India): YKK will invest about US$150m to build a new India manufacturing facility in Tamil Nadu, targeting rising domestic and export demand. Industry Events (Turkmenistan): Ashgabat’s “Turkmenextile Expo – 2026” spotlights domestic knitwear and design-led production, drawing major visitor and foreign delegation interest. Local Market Access (Moldova/Romania): “Moldova Presents” in Vaslui brings 60 companies to promote textiles and other sectors and set up B2B meetings for EU-facing trade. Sustainability in Production (HTL International): HTL International highlights PET-bottle-to-upholstery fabric innovation, turning post-consumer bottles into yarn for furniture textiles. Defense Textile Compliance (US): The NCTO praised the US House NDAA for reporting requirements aimed at tightening Berry Amendment enforcement for Made-in-America textiles.

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.