ABFRL flags farm-to-fashion traceability as EU textile passport rules loom

Aditya Birla Fashion and Retail says India must strengthen cotton-farm economics, material traceability and circular design as EU Digital Product Passport requirements for textiles begin applying from 2027-28.

— Source publishedSun, 20 Sept, 2026, 09:30 IST·First seen Sun, 20 Sept, 2026, 09:34 IST·Source The Hindu BusinessLine

What happened

Aditya Birla Fashion and Retail (ABFRL) · Aditya Birla Fashion and Retail’s sustainability chief argues India’s fashion industry must improve farm-level cotton

Key facts

  • Over 45 million people employed directly
  • Textile sector targeted at $350 billion by 2030
  • Export ambition of $600 billion by 2047
  • EU Digital Product Passport for textiles applies from 2027 and 2028

Why this matters

The approaching EU mandate increases the strategic value of acquisitions, partnerships and technology deals in cotton traceability, supply-chain data platforms, recycled materials and circular-fashion infrastructure.

What to watch

  • Final EU delegated acts defining textile Digital Product Passport data fields, product scope, verification rules and implementation dates.
  • EU decisions on whether passport requirements recognize Indian certification, traceability and chain-of-custody schemes.
  • ABFRL disclosures on traceable cotton penetration, supplier digitization, recycled-material targets or EU revenue exposure.
  • Major Indian mills, ginners or cotton platforms adopting interoperable traceability standards.
  • EU buyer tenders adding product-passport readiness, farm-origin evidence or circular-design requirements.
  • Evidence of supplier consolidation, compliance surcharges or order diversion from non-traceable Indian vendors.
  • Map EU-linked product lines to tier-4 supply chains, beginning with cotton, polyester, leather and high-volume basics.
  • Require suppliers to provide standardized fiber-origin, transaction, processing and certification data as a condition of future sourcing contracts.
  • Pilot digital product records on selected EU-bound collections before the 2027-28 implementation window.
  • Invest in cotton-farmer aggregation, regenerative-practice verification and long-term offtake arrangements to secure traceable fiber supply.
  • Redesign products for durability, repairability, recycled-content disclosure and end-of-life handling rather than treating the passport as a labeling exercise.
  • Create a supplier-financing or shared-services model for smaller mills, ginners and garment vendors that cannot independently fund data systems and audits.

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