Relative cutting fabric (7)
I believe the answer is:
nankeen
'fabric' is the definition.
(I know that nankeen is a type of fabric)
'relative cutting' is the wordplay.
'relative' becomes 'nan' (informal term for a grandmother).
'cutting' becomes 'keen' (I've seen this in another clue).
'nan'+'keen'='NANKEEN'
(Other definitions for nankeen that I've seen before include "trouser material" , "Buff-coloured cotton cloth" , "Yellowish cotton cloth" , "Chinese cotton cloth" , "Buff colour(ed cloth)" .)