AGP Executive Report

Cotton Policy: India set 2026-27 MSPs for all FAQ cotton varieties, with Suvin (ELS) topping at ₹9,867/quintal and CCI procurement starting Oct 1 if market prices fall below MSP. Sourcing Shift: A Nuvama report says India could gain as global apparel sourcing gradually moves away from China, helped by tariff parity and improving market access like India-UK CETA. Expo & Denim Tech: Gartex Texprocess India (with Denim Show) returns Aug 6-8 in Delhi, bringing 185+ exhibitors and a full denim value-chain focus from mills to finishing and automation. Circular Materials: Inditex-backed research explores turning hop plant residues into textile fibers or natural dyes, aiming to cut reliance on virgin inputs. Circular Plastics for Garments: Bangladesh could add $4-5bn in apparel exports by scaling plastic-to-textile recycling, with proposals on collection, traceability and recycled PET standards. Energy Pressure on RMG: Bangladesh’s worsening gas crisis is disrupting garments and textiles, forcing costly diesel generation and threatening delivery schedules. Renewables in Manufacturing: Yonex began on-site solar power via an on-site PPA at its Niigata factory, targeting lower CO₂ and steadier electricity costs. Local Textile Jobs: Pakistan’s ginning industry faces a crisis from declining cotton output, rising costs and outdated tech, threatening jobs across the cotton-textile chain. Handloom Push: India’s Textiles Ministry plans a Digital Handloom Atlas launch at GI & Beyond 2.0, supporting handloom visibility and market access.

Handloom Innovation Push: Handloom Hackathon 2.0 wrapped up at IIT Delhi with 2,500+ participants and 280 top teams showcasing tech-led solutions for loom modernisation, design, sustainability, market access and weaver livelihoods. Corporate Turnaround Watch: Raymond Lifestyle’s new CEO Satyaki Ghosh lays out FY27 consolidation—closing loss-making stores, streamlining operations and leaning into premiumisation/casualisation—after a June-quarter loss widened to ₹23 crore. Cotton Trade Tensions: China Cotton Association rejects US forced-labour claims tied to 43 firms on an entity list, arguing the allegations lack legal basis; meanwhile Egypt’s cotton keeps premium pricing despite mixed weekly moves ahead of the new crop. Water Stress for Fashion: Reports warn textiles face rising water risks as heat and drought intensify, with supply chains spanning cotton cultivation, dyeing and consumer use. Pakistan Export Policy: Pakistan’s government expands export support via Exim finance and long-term growth facilities, aiming to counter weak export performance. Local Craft Development: Multan blue pottery artisans and training bodies push for stronger export footing, citing rising costs, limited investment and aging workshop capacity. Market/Routes: Air India Express adds Bhopal links to Delhi and Mumbai, boosting regional connectivity.

US–China Trade Tensions: The China Cotton Association hit back at new U.S. sanctions adding 43 Chinese cotton and textile firms to the Entity List, calling the forced-labor claims baseless and warning the move could destabilize global cotton supply chains. Handloom Innovation Push: India’s Handloom Hackathon 2.0 (“Weaving Innovations”) wrapped up at IIT Delhi with 2,500+ participants and 280 top teams showcasing tech solutions for loom modernisation, design, sustainability, market access and weaver livelihoods. Policy for Cotton Farmers: India’s Cotton Corporation of India marked its 56th Foundation Day as Minister Giriraj Singh reiterated plans to boost farmer incomes and cotton productivity, citing large MSP procurement and a ~7% MSP increase for 2026-27. Sourcing Shift Watch: Brokerage Nuvama says global apparel sourcing is gradually moving away from China, creating a major opportunity for India if trade access and tariff parity keep improving. Industry Events: Taiwan’s hosiery makers plan a Curve New York 2026 showcase, while Egypt prepares for its Cairo textile machinery and printing expo in September. Local Factory Oversight: Tamil Nadu’s handlooms and textiles minister inspected cooperative spinning and handloom weaver societies in Kanniyakumari, reviewing output and asking about workforce and GST support.

US Trade Relief for Africa’s Garments: Lesotho’s textiles and apparel are set to re-enter the US duty-free market after Washington’s 29 July tariff expiry, restoring Agoa-linked zero duties and easing pressure on a sector employing 30,000+ workers. Industrial Safety Probe: In India’s Bhiwandi, police are investigating a deadly building collapse tied to alleged unauthorised repairs, with cases filed against the owner and contractor. Green Manufacturing Playbook: China’s 2026-2030 industrial green plan targets peaking emissions by 2030 and boosting recycling and low-carbon equipment—an approach Pakistan is being urged to study amid energy and cost strains. Bangladesh Garment Heat Costs: Rising heat is driving a “heat tax” for garment workers in Bangladesh, with workers spending on hydration just to keep working. Cotton-to-Clothing Push in Africa: A new discussion argues Africa captures only a small share of value because it exports raw cotton while Asia processes it—calling for integrated textile and apparel value chains. India Technical Textiles Boost: Surat’s MANTRA has been selected by the Indian Air Force to test defence fabric for quality and performance standards. Shein Under FTC Scrutiny: Shein disclosed an FTC probe into its US business, warning a settlement could materially hit finances as it moves toward an IPO. Handloom & Policy Signals: India marks National Handloom Day with renewed focus on cotton productivity and farmer support, while Bhutan expands GI protection with its first four registered products.

Defence Textiles Testing: Surat’s MANTRA has been selected by the Indian Air Force to scientifically test fabrics for digital pattern jackets and trousers, covering specs like strength, pilling, drape, colour fastness and anti-bacterial performance under NABL accreditation—an opening for defence and high-performance textile work. Textile Infrastructure Push: Tamil Nadu inaugurated two mini textile parks in Karur (Kodangipatti and Uppidamangalam) under a scheme supporting MSMEs with shared facilities and up to 50% subsidy, aiming to boost cluster-based production. Handloom Policy & Training: Bangladesh’s state minister says handloom modernisation is underway via training centres, skills development and market expansion, while India’s Ministry of Textiles will mark 12th National Handloom Day on Aug 7 at Rashtrapati Bhavan Cultural Centre. Corporate Garment Update: Raymond Lifestyle reported Q1 FY27 results with revenue up to ₹1,516 crore and a 50%+ surge in garmenting, despite a consolidated net loss. Craft Spotlight: Banarasi weavers are re-positioning the labour-heavy Rangkat sari as a differentiated, reversible, story-rich product as power-loom replication rises.

Tariff Shock for Industry: The US Senate advanced a Russia sanctions bill that could enable tariffs up to 100% on countries buying Russian oil, signaling Congress is moving to harden and expand tariff power beyond the White House. Safeguard Move: The US also set a four-year tariff-rate quota on quartz surface products after an ITC finding of serious injury to domestic producers, with quota volumes rising annually. Textile Waste Reality Check: A new report highlights that a large share of textile fibres is lost before garments even reach consumers, adding urgency to reuse and recycling efforts. Pakistan Cotton Pressure: Pakistan’s cotton shortfall is framed as an economy-wide drag hitting textile exports, with critics pointing to regulatory delays and inconsistent policy. Circularity & Materials: India’s textiles debate keeps returning to sustainability versus fast fashion, while new research and product launches keep pushing eco-friendly materials and circular design. Trade & Logistics Signals: India’s GSTN deferred key e-way bill enhancements, easing near-term compliance changes for textile and apparel supply chains.

Policy & Industry Support: India’s MRMA 2.0 (Central Silk Board) held a district stakeholders’ consultation in Tseminyu, focusing on technology transfer to boost raw silk and coordinate farmers, SHGs and youth. Trade & Supply Chains: Bangladesh Bank issued updated foreign-exchange rules for export transactions, pushing digital export declarations via the Online Export Monitoring System to simplify compliance and speed earnings. Market Signals (Cotton & Freight): ICE cotton futures rebounded above 80 cents on a weaker dollar and stronger USDA export sales; Drewry’s World Container Index fell for a third straight week as Asia–Europe and Transpacific rates softened. Corporate Moves: Columbia Sportswear returned to profit in Q2 FY26, lifting its FY26 outlook after a $78m IEEPA tariff refund; Canada Goose reported higher Q1 sales with improved margins as DTC momentum offset wholesale pressure. Sustainability & Innovation: Harvard researchers used machine-knitted textiles with multistable behavior to create programmable switches and step-tracking; a new project aims to turn brewing waste into bio-based textile materials. Legal/Competition: India’s Supreme Court upheld an NCLAT order setting aside CCI’s ₹301.6 crore penalty on Grasim Industries and sent the matter back for a fresh hearing. Circularity in Practice: Ghana’s CircularEconomy4Ghana challenge opened applications for startups tackling waste in agriculture and textiles with circular solutions.

Circularity & Compliance: California’s SB 707 textile recycling push is forcing brands to register under an extended producer responsibility model, while Italy has advanced its own textile EPR decree—both aimed at tackling the gap where only a small share of textiles get collected for reuse or recycling. Fashion Business & Scrutiny: Shein’s IPO case leans on the tech behind its fashion model as the company discloses financial performance and faces ongoing U.S. scrutiny. Pakistan Export Push: Pakistan used Texworld New York City 2026 to spotlight value-added textiles, apparel, leather and home textiles via a new Pakistan Pavilion, backed by TDAP and consulate officials. Industry Infrastructure: Karachi’s SITE Industrial Area gets a Rs2bn rehabilitation plan for roads, drainage and civic works to revive Pakistan’s long-running textile hub. Skills for Women in Fashion: TDAP, LCCI and PIFD ran training for women entrepreneurs and SMEs on forecasting, pattern making and garment sizing/fit to improve export readiness. Sustainability Tech: UL acquired ICQ Global to expand consumer product testing reach, including textiles—supporting quality assurance across supply chains. Corporate Strategy: Lenzing outlined “Grow Nonwovens, Reset Textiles,” including workforce reductions, to reposition amid tougher conditions for man-made cellulosic fibers. Local Textile Jobs Drive: Nigeria’s Governor Lawal says he’ll revive Zamfara textile industries, cotton ginneries and oil mills to create thousands of jobs. Design & Craft Spotlight: The 18th Annual Atlanta Quilt Festival returns July 31–Sept 5, focusing on African American quilts with workshops and master classes.

Earnings Watch: Vardhman Textiles posted a strong June-quarter, with consolidated net profit up 49.8% YoY to Rs 310 crore and EBITDA up 45.1% to Rs 473 crore as margins improved. Handloom Innovation: Delhi label BhashaBharat launched the Blush Loom Kurta Set, using a patented Warp Manipulation technique that changes warp positioning during weaving for structural texture. Materials R&D: Harvard researchers unveiled multistable knitted textiles that snap between stable 3D shapes and can act as soft switches or sensors using conductive yarns—built on standard industrial knitting machines. Cotton Supply Signals: India’s Cotton Association of India expects record imports of 60 lakh bales in 2025-26, driven by a temporary 11% import duty exemption, while lowering export projections to 15 lakh bales. Policy & Costs (India): Tamil Nadu textile bodies urged cheaper electricity and investment incentives in the state’s new industrial policy, including renewable power support and employment-linked measures. PLI Update (India): The textiles PLI scheme attracted Rs 167.51 crore in Maharashtra so far, with 24 approved companies benefiting under revised rules that lowered thresholds and expanded HSN coverage. Bangladesh Gas Crunch: BGMEA and BKMEA asked for temporary permission for export garment factories to collect CNG in cylinders from filling stations after LNG terminal shutdowns worsened supply. Trade Promotion: Vietnam’s Trade Office in China pushed VIS 2026 in Beijing, aiming to pull in Chinese buyers for Vietnam’s Ho Chi Minh City sourcing event. Spandex Expansion: Hyosung TNC will add up to 3,000 tons/year of hygiene spandex in Brazil from early Q4 2027, completing a five-country manufacturing network. Sustainability Tech: MIT engineers developed recyclable elastic yarn designed to replace spandex for more circular textile applications.

Apparel Sizing Standardization: India’s textiles ministry is close to finalising a national apparel sizing framework, with a shift toward familiar S/M/L categories and tight rules on acceptable variation, based on NIFT anthropometric research of 25,000+ people. Living Textiles Breakthrough: Chinese researchers have created “living” fungus-based clothing that can repair itself after damage, pointing to a new route for self-healing materials. Microfibre Pollution Baseline: A new global study estimates textile manufacturing releases 92,145 tonnes of microfibres into wastewater each year, with 58,000 tonnes ending up in land and water, pushing brands toward upstream solutions. Colour Profiling for Print & Textile: Currie Group launched a colour and media profiling service using a Barbieri Spectro LFP qb spectrophotometer to build custom ICC profiles for textile and print workflows. Tax Crackdown via Digital Monitoring (Pakistan): Pakistan’s PM Shehbaz Sharif ordered strict action against informal-economy tax evaders and directed FBR to expand digital production monitoring to textile and other sectors by December. US Forced-Labour Tariff Update: The US made a 10% Section 301 forced-labour tariff permanent for 60 partners, keeping India at 10% after New Delhi’s forced-labour import ban. Lenzing Restructuring: Lenzing plans to close its Grimsby lyocell plant by end-2027, putting 215 jobs at risk as it reshapes its fibre strategy. EU Trade Pressure on Textiles: Albania’s textile and footwear exporters are hit by euro depreciation, while EU duties on Chinese polyamide yarn imports remain a major cost pressure point.

Ancient Silk Shift: Uzbekistan researchers report domesticated silkworm cocoons dated to 1940–1765 BCE, potentially pushing organized sericulture in Central Asia back nearly 2,000 years. Trade & Tariffs Pressure: The US Senate advances a Russia sanctions bill that could trigger tariffs up to 100% on goods from major Russian oil and gas buyers, putting India and other textile-linked importers on alert. Forced-Labour Rules: EU launches its Digital Product Passport registry for single-market products, with textiles and apparel set for future delegated acts. Pakistan Tax Push: PM Shehbaz orders Pakistan’s FBR to crack down on tax evasion and roll out digital production monitoring by December across textile and other sectors. Bangladesh Energy Crunch: Bangladesh’s textile/RMG sector faces severe gas shortages, cutting factory output and threatening export competitiveness; biomass is flagged as an alternative. Industry Restructuring: Lenzing plans to close its Grimsby lyocell plant by end-2027, risking 215 jobs. Manufacturing Productivity: Coats Digital says Humana Apparels improved costing accuracy (~5%), productivity (~15%) and on-time deliveries (~10%) after adopting GSDCost. Logistics Costs: Spot freight rates ease after recent peaks, but remain historically high for Q4 buyers. Market Access: Uzbekistan pledges to buy 100,000 tonnes of cotton from Afghanistan, aiming to expand trade and transport links.

Garment Strategy Shift (Thailand): A Thai garment industry adviser says the sector must stop competing on low prices and move upmarket, backing it with more R&D for functional textiles and fixing labour shortages as migrant hiring lags. Forced-Labour Tariffs (US): The U.S. has rolled out Section 301 forced-labour tariffs covering 60 trading partners, with duties that can be zero, partial, or up to 10%–12.5%, raising new compliance pressure across textile supply chains. Circularity & Recycling (US/Global): A sustainable fashion show in Texas will spotlight garments made from recycled and upcycled textiles, while separate coverage highlights textile-to-textile recycling efforts and new research into self-healing fungal textiles. India Textiles & Policy (India): India’s textile export competitiveness is in focus amid tariff uncertainty, plus local moves to revive textile capacity and support artisan and handloom heritage. Tech & Materials (Asia): Niber Technologies appoints a new commercial chief to scale PFAS-free electrospun nanofiber membranes for performance textiles. Design & Craft (Fashion/Heritage): Couture and craft stories from India and beyond keep spotlighting embroidery, denim-inspired design, and heritage-led collections.

Couture Innovation: Rimzim Dadu debuted INLAE at India Couture Week 2026, turning mother-of-pearl into a flexible, textile-like surface by embedding cut nacre pieces into bendable steel-wire textile structures. US Trade Shock: New Section 301 forced-labor tariffs took effect July 24, with importers now able to file refund claims; the move is already reshaping apparel sourcing and raising legal uncertainty. Bangladesh Capacity Push: Turkish Sanko plans a $300m integrated textile facility in Bangladesh’s Mirsarai zone to expand value-added fabric production for exports. Energy Strain Hits Textiles: Bangladesh’s worsening gas crisis is prompting moves to import LNG, including a floating LNG terminal proposal for Moheshkhali that could affect gas-dependent sectors like textiles. Policy Support in India: Maharashtra received Rs 167.51 crore investment approvals under the Textile PLI scheme, with 24 approved companies and 904 jobs reported. Machinery Pulse: Global textile machinery shipments weakened in 2025, with only spinning growing while weaving, knitting and texturing fell sharply. Market/Brand Signals: Coats PLC reported resilient H1 2026 results and maintained its outlook, citing gains in recycled thread. Local Craft & Fashion Platforms: Threads and Craft announced “Ananta Kriti” (Aug 26–28, New Delhi) to spotlight handcrafted textiles and artisans.

Textile policy & trade: Cambodia says the new U.S. 10% Section 301 tariff on textile and garment imports is applied with the MFN rate (not on top of the earlier 19%), while zero-tariff access for certain textile quantities is available for three years if U.S.-sourced raw materials are used. Forced-labor tariffs pressure supply chains: Pakistan’s SBP kept its policy rate at 11.5% as external risks rose with renewed Middle East conflict—an economic backdrop that matters for import costs and textile demand. Regional industrial revival: Nigeria’s Zamfara governor pledged to revive textiles, cotton ginneries and oil mills to create thousands of jobs, drawing lessons from Benin’s Glo-Djigbé industrial zone model. Cotton & jobs on the ground: Qatar Charity opened four cotton thread workshops in Mali for women’s cooperatives, aiming to boost local cotton value and create steady income. Design protection vs fast fashion: New Zealand brands are pushing for tougher enforcement after AliExpress and other offshore sellers used their images to sell lookalikes. Sustainability debate: A new study finds cow-derived leather’s climate impact is 70% higher than previously estimated, far above vegan alternatives. Craft & textiles culture: Mexico’s Tekit launched its guayabera expo, highlighting local mass-production shirt-making and artisan families.

US Tariff Shock for Textiles: The NCTO warned that USTR’s Section 301 forced-labour textile mechanism could hurt US textile makers and Western Hemisphere supply chains, with relief tied to imports of US cotton and textile inputs. India Cotton & Margins Under Pressure: Gujarat spinning is squeezed by shrinking cotton acreage, higher cotton and yarn prices, and limited ability to pass costs to buyers, all while Section 301 adds extra strain. Trade Policy Ripples: Multiple reports track how Section 301 tariff tiers and exemptions are reshaping apparel sourcing and competitiveness across Asia. Mega Textile Parks Watch: India is pushing “challenge mode” mega textile parks again, with several sites moving into roads, allottee bids, and PPP appraisal—after earlier targets missed. Circular & Bio-Innovation: Chinese researchers unveiled fungus-grown “living textiles” that can clean, regenerate damage, and biodegrade in weeks, pointing to circular fashion prototypes. Sustainability Regulation in Europe: Italy approved Textile EPR implementation, adding another compliance lever for brands and producers. Industry Business Moves: Wilsonart expanded its 2026 HPL collection with textile-inspired surfaces, while India’s Amarjothi Spinning reported FY26 profit and revenue declines.

US Forced-Labor Tariffs: The Trump administration’s Section 301 move hits 60 economies with 10%–12.5% duties, while a “textile mechanism” offers limited relief for apparel from Bangladesh, Cambodia, Indonesia and Malaysia—prompting strong pushback from U.S. textile groups worried it will hurt domestic makers. Trade Pressure on South Asia: India says it will keep negotiating with the U.S. after a lower 10% tariff tier, noting about 45% of exports get exemptions; meanwhile Bangladesh’s GSP+ risk is back in focus as Pakistan and business groups call for better coordination and faster reforms. Bangladesh Investment & Skills: FICCI flags nine linked barriers to raising Bangladesh’s FDI from $1.7bn to $15bn by 2030, including regulatory uncertainty, logistics costs, skills gaps and tax complexity; separate coverage spotlights AI as a strategic priority for RMG competitiveness. Innovation in Materials: Chinese researchers report “living textiles” made from fungus that can self-clean and biodegrade in 41 days, while a new AC electrospinning approach aims to scale nanofibrous yarn production. Industry Signals: Yarn Expo Autumn 2026 in Shanghai (Aug 25–27) will spotlight evolving yarn and fibre sourcing needs, and ITMF data shows global short-staple spinning capacity edging down in 2024. Handloom Policy Moves: India’s handloom sector gets election timelines and welfare support announcements in Andhra Pradesh, as cooperative and APCO elections are set to follow.