A $1.27 million grant to develop a tagging and identification system for the textile industry has been announced by the US Government.

The grant consists of $1m, which will go to the Oak Ridge National Laboratory in Tennessee, and $270,000, which will go to the USDA Agricultural Research Service Cotton Quality Research Station in South Carolina.

Both institutions will undertake separate research and development projects towards the creation of such a system.

"Now we can keep developing tagging and identification systems to help the domestic textile industry survive and move forward," government spokeswoman Sue Myrick said.

"This is another tool that helps enforce a fair and level playing field for our textile companies."

Funding for both projects has come from the government's transportation appropriations budget.