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North India cotton yarn faces payment woes; mills unable to hike rates

14 Jul '25

4 min read

North India cotton yarn faces payment woes; mills unable to hike rates

Insights

North India's cotton yarn trade remains subdued due to sluggish demand, tight payment conditions, and uncertainty over upcoming US tariffs.
Mills are unable to pass on rising cotton costs to buyers amid weak domestic and export demand.
Cotton prices continue to rise, driven by bullish ICE trends and CCI's auction policies.
Meanwhile, home textile exports from Panipat are stagnant.

The Ludhiana market has witnessed payment issues in the cotton yarn trade. Although average-level demand for cotton yarn was observed, spinners and the consumer industry have differing views on demand prospects and pricing dynamics. A trader from Ludhiana told Fibre2Fashion, “Spinning mills or buyers will have to back down on prices. Mills are trying to raise cotton yarn rates following the rise in natural fibre costs, while fabric manufacturers are facing sluggish demand for fabric from the garment industry.”

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.