Overview
- The government published Supreme Decree N.° 014-2026-PRODUCE on Thursday, October 1, declaring a 120-day national state of emergency for the textile and garment sector.
- Produce must approve a Plan for the Reactivation of the sector within 15 business days that opens with four lines of action: financing, capacity and productivity strengthening, easier access for MYPEs to public procurement, and market promotion.
- The ministry cites a steep 2026 decline that saw production fall 9.9% between January and July and capacity use drop to 58.4%, following a multi-year slump in value added and cotton output since 2018.
- The plan prioritizes micro and small enterprises, which make up about 99.4% of the formal industry’s more than 47,000 firms, and foresees measures such as a temporary credit guarantee, specialized technical assistance, and support to join the Compras a MYPErú public‑procurement program.
- The decree explicitly cites ENFEN forecasts of anomalous ocean warming that could persist into late 2027, tasks the Dirección General of MYPE and Industry with monitoring execution, and leaves funding levels and detailed implementation measures pending Produce’s forthcoming plan.