In India, around 90 million tonnes of crop residue are burned every year. Meanwhile, the textile industry continues to rely on wood-based fibres that put pressure on forests.
Agro-Lyocell responds to both challenges by turning overlooked materials like linseed residue into new fibres.

“We’re turning what was once discarded into value, while reducing dependence on forests and creating a more circular material system,” says founder Shreyans Kokra.

Agricultural waste is increasingly seen as a promising raw material for the future of textiles. From fibres to bio-based materials, many innovations are exploring how to turn what is left behind in farming into something of value.

Agro-Lyocell builds on that momentum, but starts from a more specific observation: agricultural waste is not one material, but two. Every crop residue contains both a natural fibre fraction and a dense woody component. While the fibre can already be used in textiles, the woody portion has largely been discarded.

Agro-Lyocell focuses on that missing piece. It converts this underutilised fraction into a next-generation textile fibre, creating an alternative to conventional lyocell without relying on wood pulp. In practice, this means using more of what already exists.

“We hope our innovation contributes to a fundamental shift in how the textile industry thinks about raw materials,” says Shreyans, founder of Canvaloop and the brain behind the innovation Agro-Lyocell. “A future where dependence on wood pulp is reduced, agri-residue burning is prevented, and waste is fully utilised rather than discarded.”

The team is focusing on proving this model in real-world conditions, and has successfully commercialised fibres from linseed straw – a material previously considered difficult to process.

Beyond the material itself, Agro-Lyocell points to a different kind of value chain.

By using agricultural residues as a feedstock, it creates new opportunities for the communities that produce them. What was once treated as waste can become a reliable source of income, helping farmers capture more value from existing crops.

At the same time, it strengthens the connection between agriculture and industry, opening up more localised and resilient supply chains. Processing materials closer to where they are generated can support rural employment while reducing reliance on extractive raw materials.

“For me, solving this problem isn’t only about building a company,” says Shreyans. “It’s about aligning my values with my work, supporting farmers and rural communities, and knowing that the actions I take today can actually make a meaningful difference.”

For Shreyans, the work is closely tied to his background. He grew up around the textile industry, with a family history spanning decades. Materials, production, and supply chains were not abstract concepts, but part of everyday life.

After studying finance and beginning his career in that field, he was on a path that could have taken him in a very different direction. But the questions he encountered around sustainability and materials kept pulling him back.

“I didn’t plan to work in textiles,” he says. “But once I understood the scale of the problem, it became difficult to look away. What keeps me going is the idea that we can help reshape an entire industry, using materials that are more honest, regenerative, and scalable.”