India’s leading cotton trade body has called for the immediate removal of the 11 per cent import duty on raw cotton, warning that the domestic textile industry is losing competitiveness due to costlier Indian cotton and rising minimum support prices (MSP). The government has exempted duty-free cotton imports until December 31 this year, but the industry wants the duty removed permanently.

The Cotton Association of India (CAI) said the industry is passing through one of its worst phases, with high domestic cotton prices preventing Indian mills from benefitting from free trade agreements (FTAs) with partner countries.

India’s cotton trade body has urged the government to permanently remove the 11 per cent import duty on raw cotton, warning that high MSP, low productivity and elevated domestic prices are eroding mill competitiveness and hurting exports.
CAI said duty restoration after December 2025 could worsen unemployment, bad debts and industry stress.

High MSP, low domestic productivity and elevated input costs have made Indian cotton significantly more expensive than global prices. As a result, mills are unable to compete with international suppliers, while spinners and fabric manufacturers face continuous margin pressure. The 11 per cent duty, introduced during COVID-19, has outlived its purpose and is now distorting the market, the CAI said in a press release.

CAI warned that the industry’s distress has also begun affecting cotton traders and ginners, with delayed payments and rising bad debts across the value chain. The association noted that the only sustainable solution is to ensure the availability of competitively priced raw cotton, which requires urgent duty removal.

The press release further stated that India’s textile exports are suffering due to global recessionary conditions and uncertainty in Europe. CAI said that if raw cotton imports become costlier after December 2025, unemployment, loan defaults and financial stress across mills could intensify.

The association also linked duty removal to policy goals, noting that the Textile Ministry’s target of achieving $100 billion in textile and apparel exports by 2030 will only be feasible if mills receive raw material at competitive rates. It added that India historically had zero import duty on cotton with no adverse impact on farmers.

CAI cited abnormal seasonal rains this year, which damaged cotton quality and forced mills to depend more heavily on imports. If the duty is not removed permanently, the association cautioned that buyers may shift to rival manufacturing hubs such as Vietnam, Bangladesh, Pakistan and other markets—leading to a long-term loss of India’s global market share.

CAI president Vinay N Kotak urged the government to intervene immediately, stating that permanent removal of the 11 per cent duty is critical for the survival of the entire cotton and textile value chain. The association concluded that only with competitive raw cotton can India fully utilise FTAs, attract global orders and strengthen its position in the textile supply chain.

Fibre2Fashion News Desk (KUL)

Australia’s clothing, footwear, and accessories manufacturers slashed inventory levels by 64.7 per cent to $53,588 in the third quarter (Q3) of 2025, down from $151,967 in the previous quarter, according to new data from Unleashed. The sharp reduction marks the lowest stock position in more than five years, while profit margins strengthened by 8.19 per cent as firms prioritised leaner, efficiency-driven operations.

Sales fell from $460,175 to $253,268 quarter on quarter (QoQ) as the sector navigated challenging consumer conditions, yet the aggressive destocking strategy delivered substantial margin improvement.

Lead times also improved significantly, falling to 18 days from 33 days in Q2, close to the prior-year benchmark of 17 days and slightly above the national manufacturing average of 16 days. The shift signals a return to operational normality after prolonged disruptions, Unleashed said in a press release.

Australian clothing and fashion manufacturers cut inventory by 64.7 per cent in Q3 2025 to the lowest level since 2019, while boosting margins by 8.19 per cent despite weaker sales, as per data from Unleashed.
Lead times improved and firms shifted from pandemic stockpiling to leaner, data-driven operations.
Executives said recovery signs are emerging.

The destocking move aligns with a broader manufacturing trend across Australia, where firms have shifted away from pandemic-era buffer building in favour of lean inventory strategies to protect profitability and liquidity. Nationally, small and micro manufacturers increased quarterly sales by 9 per cent to $625,400 while expanding profit margins by 3.2 per cent.

“In spite of cautious consumer spending, spiking energy prices and high labour costs, Australian small and micro manufacturers have been adapting and thriving,” said Jarrod Adam, head of production and distribution at Unleashed. “Manufacturers have found pockets of demand and capitalised on them. The real story is operational awareness; firms have focused on growing revenue and expanding profitability without tying up capital in excess stock. That’s a fundamental shift in mindset from the pandemic era of buffer building.”

The report also compared performance across the UK and New Zealand, concluding that Australian operations are leading on efficiency. Average stock on hand across industries fell to $311,200 in Q3 from $462,735 in Q2. Purchasing of raw materials also declined sharply, down 34.9 per cent to $339,371, reinforcing the shift towards disciplined, data-driven inventory control.

“The sheer velocity of the Q3 pivot is remarkable,” added Adam. “Lead times down 36 per cent, stock down 33 per cent, purchasing down 35 per cent, yet margins up nearly 4 percentage points. This is what disciplined inventory management looks like when manufacturers have real time data and the confidence to act on it.”

“It’s been a tough eighteen months, particularly for retailers, but we’re now seeing a modest recovery in market demand for the first time, which is hugely encouraging,” said Tim Deane, owner at Norsewear, a New Zealand clothing manufacturer that markets across Australia and New Zealand. “We need a sector-wide strategy to lower energy costs and better implement the use of technology to improve productivity.”

The report is based on data from over 1,000 Australian small and mid-sized manufacturers using Unleashed across categories including clothing and fashion.

Fibre2Fashion News Desk (SG)

The Calida Group is strengthening its Board of Directors. This move aims to broaden the Board’s expertise in retail and the textile industry and to reinforce the Group’s strategic direction. The focus is on increasing efficiency in product development and brand communications for Calida and Aubade.

With this in mind, the Board of Directors intends to propose to the shareholders of the Swiss lingerie company at the Annual General Meeting on April 15, 2026 the election of Caroline Forster and Nicole Loeb as additional members.

Caroline Forster is an experienced leader and, since 2008, has served as co-CEO of the St. Gallen-based Forster Group, which operates globally. The family-owned company, with around 850 employees, produces embroidery for haute couture, prêt-à-porter, interiors, and lingerie, as well as technical textiles. She brings many years of leadership experience in both operational and strategic roles and has held various board and industry positions since 2007. She was also a member of the Executive Committee of economiesuisse until the end of 2024.

Nicole Loeb is an experienced entrepreneur and a prominent leader in Swiss retail. Since 2005, as delegate of the Board of Directors of Loeb Holding and chair of the Board of Directors of Loeb AG, she has shaped the strategic development of the long-established, independent Swiss retail company headquartered in Bern. She holds a degree in textile business management and is also active in key industry and business organisations, including as a board member of the Swiss Retail Federation and on the regional economic advisory board of the Swiss National Bank.

“I am delighted that, with Caroline Forster and Nicole Loeb, we can propose two renowned and successful entrepreneurs and leaders for election to the Board of Directors. Thanks to their proven experience in the textile industry and retail, they will provide valuable impetus for the strategic development of the Calida Group. I am convinced that, drawing on insights from their own family businesses, they will help shape our Group’s future strategic direction in a lasting way,” said Felix Sulzberger, chairman of the Board of Directors.