The South India Textile Research Association (SITRA) in Coimbatore has signed a Memorandum of Understanding (MoU) with the Taiwan Textile Research Institute (TTRI) to promote research and technical cooperation in key areas of textile innovation and technology development.

The MoU was signed during the Taipei Innovative Textile Application Show (TITAS) 2026 held in Taiwan recently by T. Rajkumar, vice-chairman of SITRA and Chiu Sheng-fu, vice-president of TTRI.

A press release from the SITRA said the collaboration will focus on development of man-made fibres for speciality applications, medical textiles, and sustainable solutions for the textile processing industry to produce advanced textile products.

The partnership brings together SITRA’s strengths in textile research, testing, consultancy, training and industry support with TTRI’s expertise in advanced textile technologies, applied research and innovation. It aims to translate shared knowledge and research capabilities into practical, scalable solutions for the textile industry.

Mr. Rajkumar said in a release, “This MoU marks the beginning of a forward-looking partnership between two institutions committed to advancing textile technology, strengthening industrial competitiveness, and promoting a sustainable and innovation-driven textile sector.”

Cotton prices have surged ₹4,000 a candy in the past 10 days, barely 22 days into the 2026-27 cotton marketing season, raising concerns among more than 1,500 textile mills in Tamil Nadu over rising input costs.

“Cotton arrivals are not as expected for a couple of reasons,” said Nishant Asher, secretary of the Indian Cotton Federation.

Cotton prices have risen from ₹64,000 to ₹68,000 a candy on an ex-gin basis, an unusual increase for October. The anticipated decline in production, farmers holding back stocks in expectation of higher prices, and the scheduled reimposition of import duty from November 1 are contributing to the price rise, Mr. Asher said.

According to Durai Palaniswamy, chairman of the Southern India Mills’ Association, domestic cotton consumption in the 2025-26 season, which ended on September 30, 2026, stood at 336 lakh bales. Despite imports of 67 lakh bales, closing stocks were just 40 lakh bales.7

“Cotton farmers will not lose this year as the production is expected to be just 260 lakh bales as against a demand of 360 lakh bales. This is going to keep prices strong. However, if the import duty is reimposed, the textile industry will lose its competitiveness,” he said, calling for a balanced approach that will benefit the industry and the farmers.

Indian garment exports have the potential for a 25% increase next year and will better performance in the three major markets – USA, UK, and the European Union.

Prabhu Dhamodharan, convenor of the Indian Texpreneurs Federation (ITF), said in a press release that garment exporters are exploring new opportunities under the India–UK trade agreement, including setting up offices and design studios in London. Encouraging buyer responses will translate into higher orders from January. With regard to the European Union, implementation of the India–EU trade agreement next financial year will drive double-digit apparel export growth.

In the American market, with tariff concerns easing, India has an opportunity to regain the recently lost 2% market share within the coming quarter. A limited India–U.S. trade agreement, if finalised, will eventually help raise India’s traditional market share from 6% to 8%.

“With greater stability expected across these three major markets, we anticipate India’s monthly apparel exports rising from $1.2 billion to $1.5 billion in 2027 — a 25% increase. Indian exporters are simultaneously strengthening global competitiveness through technology, automation, and productivity improvements, positioning the industry for renewed export growth,” he said.

Total purchase of readymade garments by the U.S. declined 7.42% to $ 49.1 billion during January–August 2026. However, August recorded marginal growth of 0.46%, indicating early signs of market recovery. India’s apparel exports to the U.S. fell sharply by 26.4% to $ 2.7 billion, compared with 29.4% decline for China, 4.4% for Bangladesh and 0.8% for Vietnam. However, Cambodia grew 6.9% and Indonesia 2.6%, reflecting intense competition.

India’s traditional 6% U.S. market share dropped to 4% in August. Uncertainty over additional U.S. tariffs linked to Russian oil purchases had delayed orders from American buyers. Despite relatively stable volumes in other markets, India’s overall apparel exports declined around 7% during the first half of the current financial year. The recent indication that additional Russia-related tariffs will not be imposed for now has improved confidence among Indian exporters, he added.

The South India Hosiery Manufacturers Association (SIHMA) and the Tirupur Domestic Garments Manufacturers Association (TIDGMA) will, in January next year, organise an exhibition of garments made in Tiruppur for the domestic market.

Apart from garments made for exports, Tiruppur produces T-shirts, inner wear, and apparel worth over ₹40,000 crore every year for the Indian market and several leading brands source garments from Tiruppur.

R. Dhamodharan, secretary of the SIHMA, said the SIHMA has nearly 675 manufacturers of garments and inner wear for the Indian market and the TIDGMA has 350 to 400 manufacturers of apparels. These producers make garments and inner wear for summer and winter. “We plan to hold two fairs annually – one in Tiruppur for summer wear and another in a north Indian city for winter wear. Tiruppur garment makers produce winter wear such as thermal wear, hoodies, and so on, apart from T-shirts and basic garments,” he said.

The logo for the event was released and stall registration began on October 9 at a meeting headed by P. Shanmugasundaram, president of the SIHMA, and M.K.M. Balasubramaniam, president of the TIDGMA.

The event, to be held at the India Knit Fair complex from January 3 to 5, will have nearly 115 stalls.

“We plan to invite retail chains, distributors, white label buyers, corporate buyers, and uniform producers to this business event,” he added.s

For the small foundries in Coimbatore, the last six months have seen a revival of orders after a phase of sluggish demand.

“If the current trend continues, small foundries will start investing again,” said Coimbatore Tiny and Small Foundry Owners Association (COSMAFAN) president A. Shiva Shanmughakumar.

The foundries in Coimbatore district require about two lakh workers. The current availability of workers is just 1.5 lakh to 1.75 lakh. Hence, the foundries have reduced to 12-hour operation from three shifts a day.

Since the larger foundries were unable to cater to all their orders because of labour shortage, the demand spilled over to the smaller foundries. “Those foundries that were operating at 125% capacity have reduced to less than 100%. Those who were operating at 75% capacity are now running at 100% capacity. So, orders are spread across large and small foundries now. If the orders are good, payments will be on time. If the present situation continues, the smaller foundries will also start investing,” he said.

Orders for pumpsets usually drop after June when the monsoon rain picks up. This year, with poor rain during southwest monsoon, demand for pumpsets is high even now. Textile industry and basic engineering sectors are also doing good in Coimbatore region. These have all led to higher orders for foundries, he said.

Regarding raw material prices, Mr. Shiva Shanmughakumar said the prices have increased 5% in the last one week and are expected to see another 5% hike in the coming weeks.

For the small foundries in Coimbatore, the last six months have seen a revival of orders after a phase of sluggish demand.

“If the current trend continues, small foundries will start investing again,” said Coimbatore Tiny and Small Foundry Owners Association (COSMAFAN) president A. Shiva Shanmughakumar.

The foundries in Coimbatore district require about two lakh workers. The current availability of workers is just 1.5 lakh to 1.75 lakh. Hence, the foundries have reduced to 12-hour operation from three shifts a day.

Since the larger foundries were unable to cater to all their orders because of labour shortage, the demand spilled over to the smaller foundries. “Those foundries that were operating at 125% capacity have reduced to less than 100%. Those who were operating at 75% capacity are now running at 100% capacity. So, orders are spread across large and small foundries now. If the orders are good, payments will be on time. If the present situation continues, the smaller foundries will also start investing,” he said.

Orders for pumpsets usually drop after June when the monsoon rain picks up. This year, with poor rain during southwest monsoon, demand for pumpsets is high even now. Textile industry and basic engineering sectors are also doing good in Coimbatore region. These have all led to higher orders for foundries, he said.

Regarding raw material prices, Mr. Shiva Shanmughakumar said the prices have increased 5% in the last one week and are expected to see another 5% hike in the coming weeks.

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With cotton and yarn prices continuing to fluctuate, textile mills and garment units in Tamil Nadu are seeking measures to improve cotton productivity and availability.

Spurt in demand for cotton yarn globally is among the main reasons for volatility in its prices, said Ashwin Chandran, chairman of the Confederation of Indian Textile Industry.

International demand for yarn is better than the last couple of years. Demand for cotton yarn was muted since 2023-24. Demand for textile products across the value chain started picking up last December. Most of the textile units maintained hand-to-mouth stocks for the last years because of the low demand.

Demand for yarn from China and Bangladesh saw an increase and domestic demand for garments is also seeing growth. This has led to better market for yarn. Further, hosiery yarn exports are mainly by the mills in Gujarat and not much from those in Tamil Nadu.

However, the cotton futures market went up to 92 cents for a pound and has corrected now to about 86 cents. Thus, the prices of cotton, the basic raw material, saw prices fluctuating. While the landed prices of clean cotton has seen ₹70 increase, yarn prices have increased by about ₹95 a kg in the last one year, he said.

The focus of the entire industry should be on improving cotton productivity in the country for raw material security, he added.

Meanwhile, the Tiruppur Exporters and Manufacturers Association has urged the Central and State governments to ban cotton exports. It said the State, especially the western districts, design and manufactures a wide range of textile products and supply to both, domestic and international markets.

This industry, predominantly driven by small and medium-sized enterprises, provides employment and livelihoods to thousands of people. However, since January this year, certain large spinning mills and traders “have been artificially restricting the supply of cotton, causing yarn prices to skyrocket and creating an unprecedented crisis for local manufacturing units—particularly the small and medium-sized ones,” alleged the Association.

Last year, cotton requirement was 350 lakh bales, whereas current domestic production stands at 290 lakh bales. With the existing cotton shortage, the government removed the import duty (11%) on cotton and 62 lakh bales of cotton were imported. Yet, cotton prices continue to rise.

This is due to artificial market manipulation, the Association claimed. The continuous rise in cotton prices have increased raw material costs, causing garment orders to be diverted to other States and countries, it said.

Filatex India is investing around ₹300 crore to set up a polyester textile recycling plant in Gujarat with an annual capacity of 27,000 tonnes, Chairman and Managing Director Madhu Sudhan Bhageria said.

The plant is expected to be commissioned next month and will recycle polyester textile waste into polyester chips. The company’s in-house technology is capable of recovering around 80-85% of the polyester content from textile waste.

European companies are currently sourcing recycled polyester primarily from plants in China, indicating significant potential for domestic production and exports.

Filatex India began research and development in polyester textile recycling in 2019 and has since secured a patent for its proprietary recycling technology.

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Textile mills are witnessing a revival in cotton yarn demand, with capacity utilisation crossing 90%, but a sharp rise in cotton prices is raising concerns over the sustainability of operations.

“The demand for cotton yarn started reviving almost five months ago and currently, mills are not holding much yarn stocks,” said Durai Palanisamy, chairman of the Southern India Mills Association (SIMA).

Cotton prices have risen sharply since mid-March, with domestic prices increasingly moving in line with ICE Futures, he said, adding mills are also maintaining relatively low inventories, with most having less than two months of cotton stock.

Cotton prices, which remained in the range of ₹51,700 to ₹57,000 a candy between October last year and the end of March 2026, had climbed to ₹70,000 a candy on September 2 on an ex-gin basis.

“Various factors such as higher demand from China and lower production expected from the U.S. and China are pushing the prices up,” said Nishant Asher, secretary of Indian Cotton Federation.

The increase in raw material costs has also pushed up cotton yarn prices.

“Our cotton yarn cannot be consumed fully by the domestic apparel sector. Textile mills need to tap opportunities in the international market for viable operations. Yarn prices adjust to cotton prices. Internationally too, yarn availability is under pressure, pushing prices up,” said Ravi Sam, vice-chairman of the Cotton Textile Export Promotion Council.

Industry sources said Indian cotton prices remain lower than international prices. The Cotton Corporation of India (CCI), which holds a substantial quantity of cotton procured under the minimum support price (MSP) regime, should stabilise domestic cotton prices.

Production of cotton during the current marketing season that commenced on October 1, 2025 is estimated to be seven lakh bales less than the previous year.

The Committee on Cotton Production and Consumption that met in Mumbai on July 29 expected the production this season to be 290.24 lakh bales of 170 kg each while the production in 2024-2025 was 297.24 lakh bales. Consumption of cotton by large-scale and MSME textile mills, which are the main consumers of cotton in the country, is like to be 320 lakh bales while it was just about 306 lakh bales last season.

While cotton exports so far are six lakh bales less than the 2024-2025 season, imports are up by almost 15 lakh bales. “We expect the cotton season to end in September with nearly 60 lakh bales of import,” said chairman of the Southern India Mills’ Association Durai Palanisamy.

The next cotton season will start in October with nearly 42 lakh bales of stock, which is the lowest in the last three years. “Cotton yarn exports have crossed 100 million kg a month for the last six months. The domestic demand is also good. Hence, the demand for cotton will continue to grow,” said Mr. Palanisamy.

The Cotton Association of India is of the view that total cotton production, including imports, will be 337 lakh bales. There is an improvement in yield, it said.

However, the trade and industry have expressed concern over the decline in area under cotton for the next season. The progress of cotton production will depend on the monsoon rains, they said.