The escalating US-Israel-Iran conflict poses a serious threat to the textile value chain in India and worldwide. Iran’s Parliament has unanimously approved a proposal to close the Strait of Hormuz—a vital maritime corridor linking the Persian Gulf with the Gulf of Oman and the Arabian Sea. Such a move would severely disrupt crude oil shipments, driving oil prices sharply higher and inflating polyester production costs. The closure would also trigger a steep rise in shipping freight rates, further straining the supply of viscose, non-cotton, and cotton yarns and fibres.
Indian polyester fibre and raw material manufacturers have already increased prices significantly due to the surge in crude oil prices.
Last week, one of India’s leading producers raised polyester staple fibre (PSF) prices by ₹3.50 per kg, effective from June 21. Current PSF prices are: 1.4 denier (Den) at ₹103.50 (~$1.19) per kg, 1.2 Den at ₹104.25 per kg, and 1.0 Den at ₹105 per kg (exclusive of 18 per cent GST). The company also raised raw material prices for texturised yarn by ₹3–4 per kg. Market sources indicate that most spinning mills have started quoting higher prices. Others, initially hesitant, are now also increasing rates. It is expected that all mills will raise polyester yarn prices by ₹3–4 per kg. Last week, traders had forecast a further increase of ₹1–1.5 per kg.
Polyester fibre and yarn producers in India had already raised prices in response to last week’s crude oil surge following the Israeli attack on Iran ten days ago. However, the latest developments—direct US attacks on Iran and Iran’s announcement to close the Strait of Hormuz—carry even more serious implications for crude oil and the global textile supply chain. In 2024 and the first quarter of 2025, the Strait of Hormuz accounted for over one quarter of global seaborne oil trade. Due to its geographical importance, there is no viable alternative sea route, posing significant threats to global oil and LNG supply chains and causing prices to soar. R K Vij, emeritus president of the Textile Association of India (TAI) and secretary general of the Polyester Textile and Apparel Industry Association (PTAIA), told Fibre2Fashion, “Due to last week’s increase in crude oil, the industry has hiked prices of PTA and MEG. Downstream industry has also increased ₹3.50 per kg in PSF and ₹4 per kg in yarn and filaments.” “Looking at the season ahead, the price rise has been absorbed, and user industry has lifted the prices of their products. If Israel-Iran conflict continues, oil prices can further increase, thus making the fibre yarn filament further costly,” he added.
Dr Jay Krishna Pathak, president of The Bombay Yarn Merchants Association and Exchange Ltd told F2F, “We might see crude oil prices skyrocket, which may lead to a further increase in synthetic raw material costs. Prices have already witnessed a steep rise in the past week. It will be difficult to absorb the price hike under the current market conditions. Polyester yarn demand will improve when fabric lifting picks up and payment conditions improve.”
The Middle East conflict and possible closure of the Strait of Hormuz could also lead to a steep rise in shipping freight charges, further fuelling viscose yarn prices. India’s industry is heavily reliant on imported viscose yarn, mainly from China. A Mumbai-based trader noted that demand has risen ahead of the festive season. If freight rates increase, imported viscose yarn prices are expected to climb further in the coming weeks.
Source: Fibre2fahsion
New Delhi: Although the US is India’s largest export partner, there is scope to increase exports further in areas such as smartphones, certain pharma products and labour-intensive exports such as textiles and gems and jewellery under the bilateral trade agreement (BTA) between the two countries that is expected to be signed by the fall (September-October) of this year, according to a Crisil report released on Monday. To begin with, India should be prepared to see more imports from the US under the BTA. This is because India’s tariffs are much higher than those of the US, and bringing these down would be advantageous to exporters in the US, the report points out. It highlights that the imminent bilateral trade agreement will likely lead to a reduction in India’s goods trade surplus with the US. India would be able to import more energy products, defence equipment and certain agricultural products, among others, from the US after the agreement is signed. The report further states that India accounts for only a small part of the USA’s imports. India’s exports, however, are unlikely to see a major spike because the focus of the Donald Trump administration is to reduce its trade deficit with India, and most of India’s top exports to the US are already duty-free (i.e., before the application of baseline 10 per cent, which is applicable since April 10).
Besides, the export potential would also depend eventually on the amount of tariff India faces when compared with other competing nations, it added. According to the report, there is some potential to improve. The US is not only the world’s largest economy, but also the world’s largest importer. In 2024, its goods imports stood at $3.36 trillion (in contrast, China and Germany, the second- and third-largest importing nations, recorded $2.59 trillion and $1.43 trillion worth of goods imports, respectively), according to ITC Trade Map. But India’s share in the US’s global imports was just 2.7 per cent. Thus, there is some scope for India to increase its exports to the US. The report said that “to understand the areas where India can potentially increase exports to the US, we assess the following two matrices”. “Among the top 25 items India exports to the US, products such as diamonds, marine products and bed linen already have a high penetration there. The penetration remains low for others, such as smartphones and certain pharma products. Also, only two of India’s top 25 export items faced the most favoured nation (MFN) tariff in 2024; others were duty-free. Clearly, this means Indian goods will have to become more competitive to gain further market share. Though a vast majority of India’s exports to the US are duty-free, several products attract MFN tariffs. For instance, out of the US’s goods imports of $91.2 billion from India in 2024, $32.9 billion worth of goods (36 per cent) attracted tariffs. The US announced reciprocal tariffs on India and a host of other nations on April 2, 2025, and then paused the increase for 90 days from April 10 to negotiate trade deals with these countries (for India, the reciprocal tariff was 26 per cent, lower than the tariff on many other Asian peers). During the pause period, a 10 per cent base tariff remains applicable (over and above the existing tariffs) on all countries, including India.
Source: The Financial World
New Delhi: India’s trade may get impacted if the tensions in West Asia escalate and the government is keeping an eye on insurance rates and freight costs amid the uncertainties, an official said Monday, a day after Iran’s Parliament approved a measure to close the Strait of Hormuz, the strategic global oil choke point which connects the Persian Gulf to the Arabian Sea.
Source: The Economic Times
New Delhi: India will stand firm on its stance in the proposed Bilateral Trade Agreement (BTA) negotiations with the US as its interests are supreme, an official said. Indian trade negotiators are set to travel to Washington soon to take the talks forward for an interim trade deal ahead of the July 9 deadline when the 90-day reciprocal-tariff pause period of the US ends.
Source: The Economic Times
New Delhi: Commerce and industry minister Piyush Goyal Monday said the government holds extensive stakeholder consultations on the free trade agreements (FTAs) and is pursuing these pacts while keeping in mind the interests of the domestic industry. He said that India is keeping in mind both the offensive and defensive interests of industry while negotiating these agreements. “We do all our FTAs after holding extensive stakeholder consultations and meetings. We address their (industries) concerns and needs,” he said while commemorating the third anniversary of the opening of Vanijya Bhawan. India has concluded multiple FTAs in the last three years, and negotiations for more than seven trade pacts currently under progress. “Going forward also, we will do FTAs which will keep in mind national and public interests,” he added. Stressing the importance of Quality Control Orders, he said that India doesn’t settle for anything second when it comes to quality.
Source: The Economic Times
ASEAN has stalled the review of its free trade agreement with India. This is a key demand from New Delhi to balance trade. The existing agreement, AITIGA, came into effect in 2010. India seeks to eliminate barriers and misuse. Commerce Minister Piyush Goyal criticized ASEAN. India's exports to ASEAN decreased, while imports increased significantly.
Source: The Economic Times
India and the US are engaged in negotiations for an interim trade deal and are trying to finalise the pact before July 9, sources said on Monday. The high tariffs announced by the US on April 2 were suspended by the Trump administration till July 9. The US, on April 2, imposed an additional 26 per cent reciprocal tariff on Indian goods but suspended it for 90 days. However, the 10 per cent baseline tariff imposed by America remains in place. India is seeking full exemption from the additional 26 per cent tariff. "We are very keen, we are engaged, we are trying. Both sides are trying, but both sides have to be happy," sources said when asked if the two countries are keen to finalise an interim trade agreement by July 9. There are always certain areas which are difficult in a trade agreement, they added. Agriculture and dairy sectors are "difficult and challenging areas for India. And India has not opened up dairy in any of its free trade pacts," one of the sources said. The US wants duty concessions on certain industrial goods, automobiles - especially electric vehicles, wines, petrochemical products, dairy, and agricultural items like apples, tree nuts, and genetically modified crops. India is seeking duty concessions for labour-intensive sectors like textiles, gems and jewellery, leather goods, garments, plastics, chemicals, shrimp, oil seeds, grapes, and bananas in the proposed trade pact. When asked if the July 9 deadline is not extended, the sources said the tariffs would come to the April 2 level (26 per cent in the case of India). If it is not extended, India may gain in something and may lose some compared to other countries, but the US will also get affected because of the high tariffs, they said. There is complete uncertainty over the further extension of tariff suspension beyond July 9. For the next round of talks, the Indian team may visit the US. They have fixed a deadline to conclude the first phase by the fall (September October) this year. However, dates for the same have not yet been decided. The US team was here from June 5-11 for the talks. The negotiations will continue both virtually and physically in the days to come.
Source: The Economic Times
The South Gujarat Chamber of Commerce and Industry (SGCCI) has proposed a number of key recommendations emphasising how to reduce import dependency and grow domestic manufacturing capacity. SGCCI’s delegates noted that allowing 100-percent Foreign Direct Investment would lead to the most effective attraction of global machinery manufacturers to set up manufacturing in India. SGCCI recommended creating a 100 percent Foreign Direct Investment policy exclusive for machinery manufacturing and that a dedicated Production-Linked Incentive (PLI) scheme for textile machinery be created. A high-level meeting organised by the Ministry of Textiles convened in New Delhi, for which key stakeholders in the industry assembled to streamline the path to self-reliance in India’s textile machinery. Chaired by Textile Commissioner M. Beena, the meeting concluded with an extension of the Quality Control Order (QCO) for one extra year. SGCCI discussed how Indian companies engaged in heavy industrial manufacturing, such as L&T, Kirloskar and Bharat Forge, can expand their R&D infrastructure to partner with existing textile companies to co-develop machinery using technological advancements in the sector. A central task force was also recommended, consisting of all industry associations, semiconductor equipment manufacturers and IT manufacturers to share policy and innovation. Other recommendations also included the rationalisation of GST on textile machinery of no more than 12% and assessing government investments based on actual reductions in importation.
The recommendations seek to create strong ecosystem for manufacturing of textile machinery which would be in line with broader national aim of industrial self-sufficiency.
Source: Apparel Resource
Nairobi’s fashion scene sparkled brighter on Friday as Kenya’s capital played host to the second edition of the East Africa Fashion Life Show. The glitzy event brought together over 70 visionary exhibitors from Kenya and China, transforming the exhibition hall into a vibrant hub where creativity met commerce on a global scale. Chinese enterprises unfurled a magnificent array of offerings, from exquisite textiles and ingenious packaging materials to captivating baby toys, luxurious personal care products, and coveted wigs. The showcase also included chic home decor and artful gift wrappers, proving that style permeates every facet of life. The event, running from Thursday to Saturday, was graced by a high-level Chinese delegation led by Yin Maolin, Party chief of Mudan District in Heze City, east China’s Shandong Province. Their presence underscored East Africa’s burgeoning potential as a dynamic hub for the fashion, sustainable textile, and apparel sectors. Yin emphasized the show’s pivotal role in deepening economic partnership between China and Kenya, fostering trade in high-quality manufactured products and forging seamless supply chains. Mr Pius Rotich, general manager for investment promotion and business development services at Kenya Investment Authority, affirmed the Kenyan government’s commitment to creating a conducive policy and regulatory environment to ignite growth in the textile and apparel sector. Mr Rotich highlighted Kenya’s eagerness to collaborate with Chinese investors in producing premium leather products for export across Africa and beyond, promising a boost in foreign exchange earnings and robust job creation. Gao Wei, managing director of Afripeak Expo Kenya Ltd, a co-organizer of this year’s show, celebrated its remarkable expansion in both visitors and exhibitors, a testament to the region’s vibrant textile and apparel dynamism. Under the inspiring theme of “Inspire Friendship, Connect World,” the expo united Chinese and Kenyan enterprises showcasing household accessories, cosmetics, and electronics. Gao also noted the invaluable networking opportunities it provided for Chinese and Kenyan business executives to explore two-way trade in leather roducts. Hundreds of Kenyan visitors flocked to the East Africa Fashion expo, many expressing their profound appreciation for Chinese-made products, particularly wigs, cosmetics, and fabrics. Ms Waceke Mwaura, a discerning entrepreneur, was captivated by the exemplary quality of Chinese-showcased wigs, noting their immense popularity among local clientele. Ms Mwaura, a seasoned importer of hair from China for local retailers and beauty parlours, is now actively pursuing distributorship arrangements with Chinese manufacturers. Paul Munyua, a middle-aged pedicurist, sought out insights into innovative and affordable Chinese beauty products to enhance his services.
Source: Business Today
A research team at RIT’s Golisano Institute for Sustainability (GIS) is developing a fully automated system to identify, sort, and disassemble garments at high speed and in high volume, for textile recycling in efforts to address a critical global waste problem. Led by programme manager Mark Walluk, the team, consisting of staff engineers Ryan Parsons ’17 (mechanical engineering), Nick Spears ’24 (robotics and manufacturing engineering technology), Sri Priya Das, Ronald Holding and Christopher Piggot ’91 (computer engineering and technology), as well as associate research professor Abu Islam, is using an automated system to detect and remove these non-recyclable elements to enable higher-value material recovery. The process begins with a conveyor-fed imaging station where three specialised cameras generate a high-resolution, multi-dimensional map of the garment which allows for fibre composition analysis down to the millimetre level. The system then leverages artificial intelligence and machine vision to identify and remove non-recyclable elements from clothing, which proved to be a unique challenge for the team. “In traditional manufacturing, these automations have been used for decades and it’s predictable,” said Islam, who collaborated with Das on the AI integration. “You know what part is coming next and exactly where it goes. In used clothing, every item is different. That unpredictability means the system must make on-the-spot decisions.” To meet that challenge, Islam and Das developed vision-guided algorithms that identify features like logos, collars, and cuffs, and interpret infrared reflections for definition of fibre type. That data is then passed to a robotic laser-cutting system that cuts those features with precision and speed, without damaging reusable material. Once cut, the garment advances to a robotic sorting gantry, which places the clean material into separate bins for recycling. The prototype can process a new garment roughly every 10 seconds, as per the study.
Walluk noted that the system was built with scalability and real-world complexity in mind, so it is both economical and ready to replicate. “It’s not going to solve the world’s textile waste problem, but it’s a step toward a more circular economy,” Walluk said. “Today, recyclers prefer post-industrial fabrics because of their predictable material properties. We’re working to advance beyond that step by transforming post-consumer clothing into high-quality, reliable feedstock also. This makes these materials not only viable, but preferable, helping divert them from landfills.” Key collaborators include Ambercycle, a Los Angeles-based company pioneering polyester recycling, and Goodwill of the Finger Lakes, which provided garments for testing and insights into the resale and reuse market. Nike contributed industry guidance in the project’s early stages. The work, which began in 2023, was funded through a grant of nearly $1.3 million from the REMADE Institute, a public-private partnership focused on developing circular manufacturing solutions. The team presented its work at a global REMADE conference this past April in Washington. “Textile recycling is a critical global challenge, and we’re proud to collaborate with industry leaders to drive meaningful solutions,” said Nabil Nasr, director of GIS and CEO of the REMADE Institute. “This effort not only creates significant environmental impact but also represents a major area of growth and innovation for us at GIS.” Though still in the pilot phase, the technology is already attracting interest globally from recyclers in the US, Europe, South Asia, and Latin America. The team anticipates transitioning the system to its partners for continued testing and potential deployment later this year.
Source: Fibre2fashion
