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North Indian cotton yarn demand hit by tariff concern; prices drop

07 Apr '25

5 min read

North Indian cotton yarn demand hit by tariff concern; prices drop

Insights

Cotton yarn trade in north India has slowed due to concerns over a proposed US reciprocal tariff, leading to price drops and weaker demand across Ludhiana, Delhi, and Panipat.
Stockist selling pressure, reduced exports, and labour shortages have further affected market sentiment.
Traders are awaiting clarity on tariff implementation, which could severely impact the textile value chain.

Panipat’s recycled yarn and raw materials market also remained steady amid weaker demand. Home furnishing exports are likely to slow down if the tariff is implemented. Additionally, a shortage of workers has affected the demand for recycled yarn.

In Ludhiana, cotton yarn demand was average, but prices remained unchanged. The market saw a steep rise in textile company shares, though there was no clear correlation with trade demand. A trader from Ludhiana told Fibre2Fashion, “Traders are waiting for more clarity and direction following the US announcement. Currently, there is no positive sentiment in the cotton yarn market. It is too early to assess the impact of the tariff as positive. The sudden increase in import costs will affect buying by US brands and retailers.”