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Failure to abolish sales tax may lead to widespread factory closures, warn Pakistan’s cotton ginners
Failure of the federal budget to abolish sales tax on cotton and its by-products may lead to widespread factory closures and rise in undocumented economy, warned cotton ginning and oil mill sector leaders in Pakistan.
Business leaders in the country urged Prime Minister Shehbaz Sharif to redirect over Rs 700 billion annually allocated to the Benazir Income Support Program (BISP). These funds should instead be used to revitalize businesses struggling under excessive taxation, they said, adding, strengthening industries, rather than providing aid, is key to national economic stability, they argue.
Senior cotton ginners revealed, formed at the Prime Minister's behest, a pre-budget committee had fully endorsed their plea to either eliminate sales tax or implement the Export Facilitation Scheme (EFS) domestically. Despite this, the budget maintained sales tax on raw cotton, cottonseed, oilcake, and cottonseed oil, and notably, did not impose it on imported cotton. This oversight intensifies fears that many more of Pakistan's already non-operational over 800 ginning factories and over 1,000 oil mills are now at risk.
Stakeholders attributed Pakistan's fall from the world's fourth-largest cotton producer to seventh to the sales tax on ginning and oil mills exceeding 70 per cent, lax crop zoning enforcement, increased sugarcane cultivation, and the sales tax exemption on imported cotton. Consequently, the state spends a significant portion of Pakistan’s foreign exchange reserves on importing cotton, yarn, and edible oil. Critics argue, diverting over Rs 700 billion to charity, or alleged misuse, is counterproductive when industries are collapsing.
Allocate these funds to revive the industry, experts appealed to Sharif. Despite increase in cotton arrivals, ongoing sales tax limits factories’ operations, leading to a fall in cotton prices. This not only harms farmers but also weakens the national economy, and raises fears of a sharp increase in undocumented business activity, they argued.
USDA’s June 2025 World Agricultural Supply and Demand Estimates (WASDE) report reveals notable adjustments for the 2025/26 cotton season, highlighting tighter supply conditions in the US domestic market and downward revisions globally.
According to this report, in June 2025, US cotton production is forecast to decline by 500,000 bales to 14.0 million bales from last month and below 2024/25’s 14.4 million bales. This marks the second-smallest crop in a decade.
The total area under cotton cultivation is projected to decline by 2 per cent to 8.19 million acre primarily due to heavy rains and delayed planting in the Delta region.
National average yield is estimated to decline by over 1 per cent to 820 pounds/acre, largely linked to Delta weather challenges.
Beginning stocks are estimated to reduce by 400,000 bales, reflecting higher 2024/25 exports. Estimates for ending stocks have been lowered by 900,000 bales to 4.3 million bales, with a stocks-to-use ratio of 30.3 per cent.
However, despite tighter supplies, the 2025/26 season-average price remains steady at 62 cents/pound.
Meanwhile, global cotton production is likely to decline by over 800,000 bales. Though China’s crop is estimated to rise by 1 million bales, this would be offset by production cuts in India, the US, and Pakistan.
Estimates for global cotton consumption have been lowered by over 300,000 bales, with Egypt seeing gains but offset by declines in India, Turkey, and Bangladesh.
The estimates for global exports have been revised down slightly by 40,000 bales, as country-level changes mostly offset one another.
Global beginning stocks have been cut by 1.1 million bales, mainly due to a smaller India 2024/25 crop while global ending stocks for 2025/26 have been reduced nearly 1.6 million bales, reflecting tighter starting inventories and production falling more than consumption.
The June 2025 WASDE underscores ongoing supply pressures and uncertain global dynamics shaping the cotton market heading into 2025/26.
Gartex Texprocess India 2025 concluded with a record-breaking turnout, reaffirming its importance as a key sourcing and technology platform for the Indian textile and apparel industry. Held in Mumbai from 13-15 June, the show attracted 10,283 visitors from 230 Indian cities and five countries. With 125 exhibitors showcasing across the entire textile value chain, the event featured co-located segments including The Denim Show, Screen Print India - Textiles, and the Fabrics & Trims Show, creating a unified space for knowledge exchange, innovation, and direct business networking. Organised by Messe Frankfurt Trade Fairs India Pvt Ltd and MEX Exhibitions Pvt Ltd, this edition highlighted the growing momentum in India’s textile transformation, with sustainability, automation, and product innovation leading the conversation.
States and global participation strengthen industry collaboration
The show was inaugurated by Sanjay Savkare, Hon’ble Minister of Textiles, Government of Maharashtra, who underscored the state's push to strengthen domestic manufacturing of globally sourced components and machinery. Uttar Pradesh, the State Partner for this edition, was represented by Shashank Chaudhary (IAS), Additional CEO, Invest UP. He highlighted the state’s textile-focused policies and conducted a special session for stakeholders .
Adding international depth, the Taiwan Sewing Machinery Association (TSMA) featured a dedicated pavilion with eight companies. TSMA Chairman Steven Fang noted, “We saw a good visitor turnout from across India. This is a strong market, and we’re keen to return for future editions.”
Denim industry moves toward sustainability and innovation
The Denim Show segment saw the participation of over 30 denim mills, who presented eco-friendly dyes, next-gen fabrics, and functional accessories. Buyers from leading fashion firms like Levi’s Strauss India Pvt Ltd, Aditya Birla Digital Fashion Venture Ltd, Walmart, and The Souled Store actively explored sourcing options.
Vasudev Tipre, GM - Exports, Suryalakshmi Cotton Mills, said, “Automation has significantly boosted efficiency. We cater to global brands and export 50 per cent to Asia and South America. The mix of fabric and machinery here makes this a very meaningful platform.”
Sourav Jalan, Director and Promoter, Syama Denims, remarked, “This show is ideal for engaging with direct-to-consumer brands who rarely meet mills directly. Gartex consistently delivers on connecting suppliers and customers.”
Aamir Akhtar, Group President and CEO, Jindal Worldwide Ltd, highlighted: “We are using water-saving technologies in our new premium denim line, ‘Formula 1’, supported by a zero-liquid discharge system. The event was seamlessly organised and is becoming a benchmark for Indian trade expos.”
Adding perspective from the chemicals segment, Harish Agarwal, Owner, Bhagwati Chemicals, said, “The event delivered strong leads, even beyond denim. We've been in the dyes and chemicals business for 40 years, and the kind of technical inquiries we received were very encouraging.”
B Vinod Kumar, General Manager - Denim & Casual Bottoms, Arvind Fashions, noted, “Massive machinery displays that are usually seen only inside factories were showcased here. Bringing that into an accessible platform is a commendable effort.”
Sreehari Krishnan, Director - Plant Operations & Quality, Bewakoof Brands Pvt Ltd, added, “We explored exciting innovations like HD stickers, embroidery, and lightweight dobby denim great for summer wear.”
Automation and smart machines in spotlight
Exhibitors across the show praised the industry’s growing interest in automation and smart manufacturing. Nitin Mathur, Regional Sales Manager, IIGM Private Limited, shared, “Footfall was excellent, and small businesses especially showed interest in automation due to rising labour costs.”
Sai Navneethan, Regional Head – Sustainable Products, Ramsons Garment Finishing Equipment Pvt Ltd, commented, “High-volume garment finishing requires automation. PLC-controlled systems not only drive efficiency but also support greater participation of women in operations.”
Ujjwala Upadhyay, Brand Manager, Insight Print Communications Pvt Ltd, showcasing Mimaki's dye sublimation machines, stated, “Sustainability is a strong driver. Visitors from sportswear, furnishings, and signage sectors connected with us. Footfall exceeded expectations.”
S Eswaran, Product Head - Duerkopp Adler & PFAFF, Mehala Machines, observed: “We had excellent engagement and the interest in automation solutions was strong. The Mumbai edition was well managed and our booth received consistent visitor traffic.”
A future-ready platform for India’s textile sector
Backed by leading industry bodies like the Denim Manufacturers Association, the show drew top sourcing teams and decision-makers from organisations including Aditya Birla Group, Brands and Sourcing Leaders Association, Coreco, Recyclr, Technopak Advisors, TMRW – House of Brands, Walmart Sourcing, and Wrogn Pvt Ltd. With its focus on sustainable practices, digital solutions, and international partnerships, Gartex Texprocess India continues to evolve as a future-ready platform for the Indian textile sector.
The next edition is set to take place from 21–23 August 2025 at Pragati Maidan, New Delhi, followed by the Mumbai edition from 09–11 April 2026 at the Bombay Exhibition Centre.
Source Fashion, the UK’s leading responsible sourcing platform, has released an innovative report addressing one of fashion’s most damaging issues: overproduction. Titled “Do We Really Need to Produce So Much?”, the 2025 report, developed in collaboration with retail futures consultancy Insider Trends, sheds light on the staggering scale of fashion’s waste problem and offers solutions.
The report reveals that the global fashion industry produces between 80 and 150 billion garments annually, with up to 40 per cent remaining unsold and often ending up in landfill or incineration. Despite this, only 1 per cent of brands are actively working to reduce production volumes.
Rather than simply outlining the problem, the report offers a blueprint for change, highlighting four innovative business models: on-demand production, circular design, retail-as-a-service, and collaborative creation with consumers. These models are already being tested by forward-thinking brands and, according to the report, can not only reduce environmental impact but also improve margins and build consumer trust.
“This report highlights the uncomfortable truth behind retail’s success volume,” said Suzanne Ellingham, Sourcing Director at Source. “The fashion industry must now ask not just how it produces, but how much and why.”
The report arrives amid tightening regulations, shifting consumer values, and economic pressure. It positions overproduction as not just an environmental issue, but a commercial risk and an opportunity for brands ready to evolve.
To deepen the conversation, Source will host a live webinar, “Rethinking Volume - Fashion’s Shift from Overproduction to On-Demand”, on 20th June in partnership with Insider Trends.
Organisers of ITMA ASIA + CITME, Singapore 2025 have launched a dedicated mobile app for Android and iOS users, offering early access to the official exhibitor list for the upcoming textile machinery exhibition.
Despite the closure of the sales application window, exhibitor interest remains high, with fresh applications continuing to pour in underscoring strong confidence in the event’s debut edition in Southeast Asia.
The four-day showcase, set to take place at Singapore Expo, will feature over 770 exhibitors representing 31 countries and regions. Occupying a gross exhibition area of 70,000 square metres, the exhibition spans 19 product sectors, covering the entire textile manufacturing value chain from spinning and weaving to finishing, digital solutions, and sustainability technologies.
The newly introduced mobile app is designed to enhance the visitor experience by offering itinerary planning and navigation features. Users can bookmark exhibitors, plan visits efficiently using the integrated wayfinder system, and access tools for scheduling meetings and identifying potential partners.
Currently, the exhibitor listing is exclusive to the mobile app, with a web version expected to be released by the end of June on the official ITMA ASIA + CITME Singapore 2025 website.
The event is jointly owned by CEMATEX (the European Committee of Textile Machinery Manufacturers) and Chinese partners the China Textile Machinery Association (CTMA) and the Sub-Council of Textile Industry, CCPIT (CCPIT TEX). It is organised by ITMA Services Pte Ltd and co-organised by Beijing Textile Machinery International Exhibition Co, Ltd (BJITME), with the Japan Textile Machinery Association (JTMA) as special partner.
The Uttar Pradesh Government plans to develop an Apparel City or Apparel Park in Gautam Budh Nagar district, Noida.
To be spread across 175 acre, the park will help the government consolidate all the garment factories and exporters in the state in one location with all the facilities.
Known as the ‘City of Apparel’ of India, Noida has evolved as a prominent hub for the garment and apparel sector in India. The city houses numerous garment factories and exporters. It currently approximately 1,500 apparel units that are engaged in manufacturing ready-to-wear apparel for domestic and overseas markets.
The upcoming apparel park will make land and facilities available for garment manufacturing units. It will generate tens of thousands of employment opportunities besides attracting investments worth approximately Rs 2,500 to Rs 3,000 crore. Besides, the park will enhance export of ready-made garments from the area. It also aims to train villagers near the location to work in the garment sector and earn a living.
A significant contributor to India's exports, the textile and apparel sector in Noida employs a a significant number of individuals, primarily females (approximately 70 per cent of the jobs at the park will be given to females). The sector also aids the development of the economy in Uttar Pradesh and the surrounding regions.
Besides Noida, India boasts of numerous other cities that are renowned for textiles and fabrics such as Karur, Tamil Nadu; Surat, Gujarat; Pochampally, Telangana; Kota, Rajasthan; Chanderi, Madhya Pradesh and Mumbai, Maharashtra.
At a virtual program organized under the Prime Minister’s Employment Generation Program (PMEGP), the Khadi and Village Industries Commission (KVIC) disbursed a margin money subsidy of Rs 300 crore (approximately $34.8 million) to 8,794 beneficiaries nationwide.
The disbursement program was attended by participants from all six zones across India. The South Zone received approval for 2,445 projects, followed by the Central Zone with 2,366 projects. Eastern India and the Northeast accounted for 2,167 projects, while the Northern Zone had 1,320 projects, and the Western Zone saw 496 projects approved.
Highlighting the impact of the program, Manoj Kumar, Chairman, KVIC, stated, the PMEGP scheme has currently established a strong and effective foundation for self-employment in India. Khadi and Village Industries is not just a product today, but it embodies the vision of Aatmanirbhar Bharat (Self-Reliant India), he emphasized.
The scheme has not only provided employment to millions of youth but has also connected them with the power of entrepreneurship, Kumar added.
Since its inception through the FY24-25, the PMEGP has supported 1,018,185 micro-enterprises, sanctioning a total of Rs 73,348 crore in loans. This ongoing initiative continues to play a crucial role in empowering individuals and stimulating economic growth at the grassroots level across India.
In a significant boost to the textile industry, two Indian textile companies plan to set up their facilities in the Budhi Barlai village in Indore with a combined investment of Rs 584 crore. Both these facilities will help create 12,000 new jobs in the regions.
The first of these facilities will be set up by the Arvind Group on 12 hectare allocated by the Madhya Pradesh Industrial Development Corporation (MPIDC). The facility will produce 60 lakh garments annually in the first phase of its operation.
On the other hand, another prominent garment manufacturer, Noize Jeans plans to set up its own textile and apparel manufacturing unit on 12.5 hectare.
The facility to be developed by the Arvind Group would be a garment park, while Noize Jeans Ltd will focus on nine different manufacturing activities, including the production of sweaters, denim, and footwear.
Himanshu Prajapati, Executive Director, MPIDC-Indore region, says, extending beyond mere production facilities, the development will include creation of essential infrastructure such as plug-and-play units for auxiliary businesses, residential areas for employees, medical facilities, a police station, a fire station, and a commercial complex, all designed to support the burgeoning workforce.
Additionally, located about 25 km from Indore, along with surrounding vacant land totalling around 33 hectare, the closed Barlai sugar mill has been converted into an industrial area dedicated to the textile sector.
Activewear brand Lululemon and Australian biotech firm Samsara Eco have entered into a 10-year supply agreement, according to which the brand will increase recycled raw materials sourcing from Samsara Eco significantly. This will help accelerate Lululemon's shift toward a more circular business model and could provide up to 20 per cent of its total fiber portfolio by 2030.
The agreement builds on a successful collaboration between the two companies. Their previous joint efforts resulted in the development of the world’s first enzymatically recycled nylon 6,6 sample and the launch of Lululemon’s limited-edition Packable Anorak, made from enzymatically recycled polyester. These innovations maintain the technical performance and aesthetic qualities associated with Lululemon products while utilizing fully recycled materials.
Scaling circular materials requires bold partnerships and a shared commitment to rethinking how our industry operates, says Ted Dagnese, Chief Supply Chain Officer, Lululemon. As the brand works toward its 2030 impact goals, it continues to invest in multiple partnerships to advance solutions and help reduce reliance on fossil-fuel derived resources.
Polyester and nylon are among the most common fibers used in the textile industry, accounting for about 60 per cent of global fiber production. Samsara Eco has pioneered the use of engineered enzymes to break down these materials, including mixed fibers and plastics, into their original molecular building blocks. These can then be reconstituted into new materials suitable for existing manufacturing processes.
Paul Riley, Founder and CEO, Samsara Eco, states, the company’s expanded partnership with Lululemon helps create a fully circular ecosystem besides highlighting the industry’s commitment to transition to more circular materials.
To support the scaling of its enzymatic recycling technology, known as EosEco, Samsara Eco is preparing to open a new production plant in Jerrabomberra, New South Wales. An international commercial facility is also slated to open in 2028 to help meet growing demand.
Following Brazilian pulp giant Suzano's decision to halt further investment in their joint venture, Finnish textile fiber innovator Spinnova is revising its corporate strategy.
The company plans to reduce both production and investment costs by continuing to refine its fiber concept. To facilitate this, Spinnova intends to form an international consortium of partners around the company’s planned acquisition of Woodspin and Suzano Finland, assets that include a demonstration factory and micro fibrillated cellulose refining operations.
According to Janne Poranen, CEO, the company plans to focus on reducing its production and investment costs in 2025-26. Besides, the company also aims to enhance fiber characteristics for both textile and non-textile applications, and continue research into raw materials using wood-based and other cellulosic sources. A key element of the new strategy involves supporting the Respin JV with ECCO, which seeks to commercialize fiber solutions derived from leather waste.
Furthermore, the company aims to achieve annual savings of €500,000 through consolidating its facilities in Jyväskylä, Finland. Spinnova's innovative technology transforms wood pulp and various waste materials into textile fiber without relying on harmful chemicals or dissolving processes. The resulting fiber is biodegradable, recyclable, and produced with minimal CO₂ emissions and water usage, offering a sustainable alternative to traditional materials.
