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Payment woes, Chinese imports weaken north Indian cotton yarn demand

28 Jul '25

4 min read

Payment woes, Chinese imports weaken north Indian cotton yarn demand

Insights

Cotton yarn prices dipped in Ludhiana due to weak demand and a liquidity crunch, worsened by Chinese polyester and Tencel imports.
Delhi remained stable, though mills felt cost pressure.
Panipat saw a ₹*-*/kg drop in cotton comber, while recycled yarns held steady.
Limited cotton availability pushed prices higher in north India, even as slow fabric demand continued to weigh on the overall market.

Cotton yarn prices in Ludhiana dropped by &#****;* per kg amid sluggish demand and tight liquidity. A Ludhiana-based trader told Fibre2Fashion, “Chinese polyester and Tencel fabrics are drawing attention from the consumer industry due to lower prices and better quality. Market liquidity is being pulled towards China, which is the root cause of the payment crisis. These payment constraints have further suppressed cotton yarn demand.”

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.