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North India cotton trade weakens amid 500% US tariff threat

12 Jan '26

4 min read

North India cotton trade weakens amid 500% US tariff threat

Pic: Shutterstock.com

Insights

North India's cotton and yarn markets turned cautious as the threat of a ***** per cent US tariff dampened buying sentiment.
Yarn prices stayed largely steady in Ludhiana, Delhi and Panipat, but demand weakened as exporters feared order cancellations and loss of competitiveness in the US market.
Slower buying, rising cotton prices and uncertainty across home textiles further pressured the value chain.

Cotton yarn prices remained steady in the Ludhiana market, though spinning and weaving units are facing uncertainty due to the tariff threat. A Ludhiana-based trader told Fibre*Fashion, “Such high tariffs would not allow Indian exports to remain competitive in the US market. Although there is little chance of such an extreme measure being implemented, if it does happen, Indian exporters would lose a large market in the US. As a result, exporters would have to adjust current stocks of raw materials and finished goods.”

In Ludhiana, ** count cotton combed yarn was sold at &#****;***-*** (~$*.**-*.**) per kg (inclusive of GST); ** and ** count combed yarn were traded at &#****;***-*** (~$*.**-*.**) per kg and &#****;***-*** (~$*.**-*.**) per kg, respectively; and carded yarn of ** count was noted at &#****;***-*** (~$*.**-*.**) per kg today, according to trade sources.