AGP Executive Report

Costs and Supply: India’s wholesale inflation reached 11.39% in September, with textile prices up 13.85%; Gujarat’s textile industry faces a Diwali shutdown threat as yarn prices surge 45%. Waste Rules: A proposed US bill would set a national textile-circularity strategy and require annual waste data, while industry voices say EU producer-responsibility schemes alone won’t solve textile waste. Sourcing and Compliance: North and Central American polyester-yarn makers launched YarnProof, using detectable tracers to verify origin and support trade compliance. Factory Pressures: An export slump is driving layoffs in Indonesia’s textile sector, and China is tightening wastewater rules for textile producers. Industry Investment: A textile and garment machinery exhibition opened in Ho Chi Minh City as Barmag seeks stronger ties with Bangladesh’s textile industry.

Labor and Trade: The US has asked Mexico to investigate alleged union-busting at automotive textile maker Carolina Performance Fabrics, invoking the USMCA’s labor mechanism and withholding final customs clearance on affected goods. In Pakistan, textile groups are pressing to preserve export-scheme access for yarn and fabric inputs, while exporters seek temporary support tied to higher exports. Investment: Egypt’s H&L sportswear project has doubled its planned investment to $30 million; the factory is expected to create about 2,000 jobs. Compliance and Materials: The EU has banned PFHxA, a “forever chemical” used in some stain-resistant garments. Polyester producers have also launched YarnProof to verify origin claims, as Textile Exchange’s chief calls for more reliable demand for preferred materials. Circularity: A new textile recycling facility is designed to process 19,200 tonnes of waste annually, adding capacity as the industry faces growing pressure to scale recycling.

Supply-Chain Traceability: Unifi and regional polyester yarn makers launched YarnProof, using embedded tracers to verify yarn origin and support USMCA and CAFTA-DR compliance. Textile Innovation: Researchers in Spain developed cotton fabric that uses visible light to inactivate microbes, while Indian scientists created a biodegradable filter aimed at treating dye-polluted wastewater. Trade and Regulation: Pakistan’s textile council urged the government to keep yarns and fabrics in its export facilitation scheme, warning that further exclusions could hurt value-added exports. As EU rules tighten, industry voices are also calling for stronger proof behind fashion’s green claims. Manufacturing and Markets: South African workwear maker DROMEX says its Hammarsdale expansion has grown its workforce from 200 to 1,000. In India, Mafatlal Industries launched a direct-to-consumer home-textiles platform with more than 400 products. Circular Fashion: The Circular Design Challenge drew a record 220 entries from more than 15 countries, reflecting growing interest in commercialising sustainable fashion ideas.

Sustainable Cotton: Better Cotton Initiative has shifted to a regenerative standards system, aiming to verify improvements in soil health, biodiversity and farmer livelihoods. Textile Recycling: Circ and Huafon plan a textile-to-textile recycling factory in China, while WRAP has launched a UK programme to expand textile collection and recycling. Labour Compliance: Twenty-four clothing manufacturers in South Africa’s Newcastle have accepted they have no exemption from labour law, though they can still contest whether the clothing bargaining council has jurisdiction over them. Pakistan Industry: Textile exporters are seeking urgent relief amid fears of declining shipments; meanwhile, the government has set a year-end deadline for automated production monitoring across manufacturing, including textiles, to strengthen tax collection. Technology: A new industry report forecasts rapid growth in AI applications in textiles, citing demand for better quality control, efficiency and waste reduction.

Apparel Sustainability: A Dutch delegation explored cooperation with Bangladesh’s apparel sector on clean energy, circularity, supply-chain traceability and workforce development as the country prepares to graduate from least-developed status. Textile Waste: The UK’s WRAP launched a programme to expand textile collection and recycling. In Ghana, a Greenpeace audit found labels from brands including H&M, Primark and Marks & Spencer on discarded clothing, while cautioning that labels alone do not show who exported or dumped the garments. Trade Pressures: Pakistani textile groups warn of a steep export decline from October to December, citing challenges in sustaining orders and improving efficiency amid rising competition. Recycling and Materials: Circ and Huafon plan to scale textile-to-textile recycling in China, while Recover introduced a recycled cotton-polyester fibre range. Kraig Biocraft says it has shipped its first engineered spider-silk yarn for performance sportswear and is seeking to expand production. Rules and Safety: New EU workplace chemical limits cover substances used in textile production, while separate proposed PFAS restrictions could affect clothing and footwear.

Textile Recycling: Circ and China’s Huafon plan a textile-to-textile recycling site capable of processing 200 tonnes of polycotton waste daily in its first phase, recovering materials for new textiles. Export Pressure: Pakistan’s textile exporters warn weak overseas demand and freight costs up 1.5 to 2.5 times are squeezing the sector; they are seeking temporary tax relief as cotton trading remains thin and prices mixed. Lesotho’s Upgrade: A seven-year roadmap aims to shift the industry toward higher-value garments and local wool and mohair, as the country grapples with factory closures and falling employment. Chemical Rules: New EU limits on PFHxA in clothing, accessories and footwear took effect October 10, adding to compliance demands on apparel makers. Garment Trade: Cambodia’s garment-related exports rose 7.7% to more than $13 billion in the first nine months of 2026.

Bangladesh Investment: Japan’s Marubeni is exploring new investments in Bangladesh, including manufacturing and higher-value jute products, with the government promising to ease business procedures and support diversification. Handloom Spotlight: Odisha weavers took Sambalpuri, Khandua and other regional textiles to Bhubaneswar Fashion Week, with 14 women artisans walking the runway in their own creations. Worker Welfare: Sightsavers India launched a programme to screen weavers’ eyesight and provide spectacles, aiming to reach one million people by 2030 and protect livelihoods that depend on precise vision. Materials Innovation: A University of Sheffield project has won funding to use proteins sourced partly from wool and silk waste to grow crystals for advanced materials. Circularity: The growing commercial thrift market is intensifying competition for charity shops, while making secondhand clothing a more mainstream part of the textile-reuse economy. Industry Pressures: Pakistan’s textile sector is warning against a proposed import levy, and a Scottish textile company has entered administration owing £1.5 million.

Textile Technology: Swedish machinery firms are expanding and launching technology ahead of ITMA Asia, targeting automation, recycling and more efficient production. Trade Costs: Pakistan’s APTMA says a 0.9% Punjab levy on industrial imports would raise costs and hurt exports, warning some goods could face charges in two provinces. Export Growth: A Togo workshop is helping small businesses, including textile firms, navigate AfCFTA rules of origin and reach new markets. Market Signals: Finland’s textile, clothing and leather turnover rose 2.9% year-on-year in August, with exports up 6.3%; a Scottish textile firm has entered administration owing £1.5 million. Circularity: Circ and Huafon plan a textile-recycling site in China, while major fashion brands have launched an alliance to tackle textile waste. Demand and Jobs: An ITMF survey found textile demand remains weak despite a better outlook, and Nigeria’s labour union warns rising costs are driving job losses.

Industry Pressures: Scottish home-textiles firm The Honesty Works has collapsed into administration owing £1.5 million, after years of losses linked to weaker demand and rising production and shipping costs. Circularity: Trützschler has added three customers to its TRUECYCLED recycling network, while major fashion brands are joining forces to tackle textile waste. Circ and Huafon also plan a textile-recycling site in China. Policy Shift: Denmark has launched a textile strategy, and UK retailers back a new textile-collection plan as waste rules tighten across Europe. Market Outlook: An ITMF survey finds textile demand remains weak despite an improved outlook; dye-price and chemical-cost pressures have also halted operations at some Tirupur dyeing units. Garment Trade: Bangladesh manufacturer Beximco is seeking $23 million to reopen factories, as Cambodia’s garment-related exports rose 7.7% in January–September. Workers: Surat textile workers are pressing for eight-hour days and a weekly day off.

Business Strain: Scotland’s Honesty Works, a soft-furnishings wholesaler supplying John Lewis and Laura Ashley, has collapsed owing £1.5m after years of losses, falling demand and rising costs. Export Ambitions: Pakistan’s APTMA and retail association CAP are teaming up to boost local sourcing and take homegrown fashion brands abroad, targeting $3bn in added textile exports within a year. Circularity: Fashion for Good has launched its Cotton Reloop project, while brands are joining forces to tackle textile waste; UK retailers are also backing a national textile-collection strategy. Materials & Machinery: Lycra says its 70%-plant-based renewable fiber is now at commercial scale; Karl Mayer will showcase textile technologies at India ITME in December, while Circ and Huafon plan a recycling facility in China. Jobs & Trade: Uttar Pradesh is targeting 70,000 textile jobs by 2033, and Cambodia’s garment-related exports rose 7.7% to more than $13bn in January–September. Workplace Rights: Surat textile workers are demanding eight-hour shifts and a weekly day off.

Recycled Cotton: Fashion for Good’s new Cotton Reloop project will test recycled yarns against brands’ quality needs, while Adidas, H&M, Inditex and Bestseller have teamed with Ghana’s Or Foundation to develop ways to reduce textile waste and expand reuse and recycling. Textile Policy: Denmark has launched a 2026–29 action plan to cut textile production and consumption; UK retailers are also backing a new collection strategy. Trade and Growth: Cambodia’s garment-related exports rose 7.7% to more than $13 billion in January–September. India is drawing machinery investment too, with Karl Mayer targeting growth in technical textiles and higher-value production. Workers: Textile workers in Surat are pressing for eight-hour workdays and a weekly day off as the sector looks to expand jobs.

Cotton Value Chains: India and Mali marked World Cotton Day by backing stronger processing, market access and support for smallholders. Waste and Circularity: Greenpeace urged Ghana to block imports of textiles too damaged for reuse, citing discarded garments found in Accra; in the UK, WRAP launched a programme to redesign textile collection, while Fashion for Good is working to expand recycled-cotton use. Workforce: Surat textile workers are leaving early for Diwali amid concerns over labour-code compliance, with unit owners planning a large meeting to discuss the dispute. Trade and Logistics: MSC restored weekly Karachi–Europe shipping, easing transit delays and freight pressure for exporters, including textile makers. Industry Outlook: ITMF says textile demand remains weak. India’s August figures showed textile output up 13.1% while apparel production fell 7.4%, pointing to a widening gap between the two sectors. Materials and Investment: A new EU limit on PFHxA chemicals takes effect for apparel and textiles; India’s Indigotex raised Rs 5 crore to expand textile manufacturing and R&D.

Textile Investment: India’s IndigoTex raised ₹5 crore to expand manufacturing and R&D, bringing washable wool and wool-blend fabrics closer to market. US Manufacturing: Reshoring Textiles acquired Sans Technical Fibers, adding domestic nylon and polyester yarn production for apparel and industrial uses. Circularity: Recover launched a 100% recycled-fibre blend designed to avoid downstream overdyeing, while Nike, Patagonia and Under Armour joined an alliance to tackle microfiber pollution. Industry Outlook: An ITMF survey found textile demand remains weak, even as a CMAI report sees India’s apparel market growing to $146 billion on rural demand and casualwear. Operations: Vippy Spinpro secured a ₹30 crore increase in its working-capital limit, lifting its HDFC Bank cash-credit facility to ₹70 crore.

Product Innovation: Japan’s Gunze has developed antistatic sewing thread without carbon or metal, enabling bright and white color options for apparel and other textile uses. Industry Pressure: Rising dye and chemical costs have shut Tirupur dyeing units, while 40% of Faisalabad’s power looms are reportedly idle, leaving more than 100,000 workers jobless. Nigeria’s TUC is also urging government action as high energy costs drive textile layoffs. Manufacturing and Trade: India’s apparel makers are weighing expansion into newer hubs, drawn by cheaper labor and subsidies. Uzbekistan plans three trade shows spanning home textiles, fabrics and garment sourcing as it targets more finished-goods production and exports. Market Outlook: An ITMF survey finds textile demand remains weak despite a brighter outlook, while soaring costs are also squeezing organic cotton production. Safety Scrutiny: Texas has expanded its investigation into potential toxic chemicals in children’s underwear sold by Hanes and Fruit of the Loom.

Production Disruption: About 460 dyeing units in Tirupur, India, halted work over dye and chemical price hikes of more than 100% and raw-material shortages. The shutdown cost an estimated Rs 16.8 crore and affected more than 50,000 workers. Cotton Traceability: India’s Kasturi Cotton programme certified 2.13 lakh bales in 2025–26, as buyers increasingly seek verified sourcing. Hemp Processing: Montana-based IND Hemp has opened a new line to clean and cottonize hemp into ready-to-spin fibre, shipping to manufacturers in Asia and the Americas. Fashion Rules: France’s new extended producer responsibility fees target ultra-fast fashion, with charges tied to product range and repair incentives; online origin disclosures are also required. Export Push: Bangladesh showcased apparel, home textiles and leather goods at Fashion World Tokyo, with 25 companies supported by its Export Promotion Bureau. Wool Markets: Canada is providing up to $158,180 to promote domestic wool and build export opportunities.

Circular Textiles in the UK: Tadcrafters in Tadcaster is running its first De-Stash Market (Oct 11) with surplus fabric, haberdashery and yarn to cut textile waste and boost reuse, repair and mending. Community Repair Culture: Bridport Community Shed hosts an open day (Oct 10) with textile repairs, upcycled textile sales and a tool-and-fabric market to support hands-on fixing and social connection. Sustainable Fashion Finance: Nedbank launches a 12-month accelerator backing 20 South African fashion and textile SMEs, aiming to tackle funding and market-access barriers and help brands scale locally and internationally. Labour Compliance in Apparel: South Africa’s labour department agreed it cannot grant amnesty to non-compliant clothing manufacturers, as a dispute over Chinese-owned factories and a labour pilot program heads back to court (Oct 12). Pakistan Textile Exports Under Pressure: Pakistan’s textile sector faces looming EU carbon and traceability requirements, with buyers already requesting emissions data ahead of future compliance. Trade & Exports Push: TDAP opened Pakistan’s 42nd International Exhibition of Handmade Carpets in Lahore, drawing international buyers and promising support on visa issues. Textile Industry Events: Korea’s KINTEX will host TEX+VISION 2026 (Oct 21-23), covering eco/smart materials, garment automation, digital printing and eco-care.