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North India cotton yarn hit by payment crisis, selling pressure builds

27 Nov '25

4 min read

North India cotton yarn hit by payment crisis, selling pressure builds

Pic: Shutterstock.com

Insights

North India's cotton yarn market remains weak due to tight payment flows in the weaving sector, leaving mills under pressure to sell. Prices stayed stable in Delhi and Ludhiana, but buyers avoided fresh purchases as inventory blocks capital. Recycled yarn demand in Panipat also dipped, affected by poor domestic uptake and limited exports after high **** tariffs.

In Ludhiana, cotton yarn continued to trade at previous levels, but mills were not getting adequate enquiries because buyers are struggling with payments. A trader from the Ludhiana market told Fibre*Fashion, “The weaving industry is sitting on large quantities of finished goods. This heavy inventory has blocked their capital for an extended period. They cannot purchase cotton yarn for fabric production. Mills are also unable to get expected rates in the global market. Overall cotton yarn demand remains limited in both domestic and international markets.”

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.