North Indian yarn market struggles, buoyed slightly by strong cotton

21 Apr '25

4 min read

North Indian yarn market struggles, buoyed slightly by strong cotton

Pic: Shutterstock

Insights

North India's cotton yarn market remained under pressure due to Bangladesh's import ban and concerns over US tariffs.
Despite weak demand, prices held steady, supported by strong cotton rates.
Export setbacks and limited domestic buying worsened the outlook, especially in Ludhiana and Panipat.
Meanwhile, cotton prices rose due to low arrivals and stronger ICE futures.

North India’s cotton yarn market witnessed weaker sentiment as negative factors outweighed positive indicators. Uncertainty continued in the cotton yarn sector due to Bangladesh’s import ban through land borders and concerns over US tariffs. Despite this, cotton yarn prices remained steady, supported by stronger cotton prices. According to market sources, spinning mills are facing significant setbacks in yarn exports and they may need to consider price hikes to protect margins.

In Ludhiana, cotton yarn demand further slowed, with Bangladesh being a major concern for trade. However, prices did not move significantly. A trader from Ludhiana told Fibre2Fashion, “Bangladesh was the most prominent market for Indian cotton yarn exports. After the ban on imports through land borders, Indian mills have lost a crucial market. Global uncertainty due to US tariffs has also discouraged yarn trade.”

In Ludhiana, 30 count cotton combed yarn was sold at ₹258-268 (approximately $3.02-3.14) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹248-258 (approximately $2.91-3.02) per kg and ₹253-263 (approximately $2.96-3.08) per kg, respectively; and carded yarn of 30 count was noted at ₹238-243 (approximately $2.79-2.85) per kg today, according to trade sources.

The cotton yarn market is under contradictory pressure due to weak demand and strong natural fibre prices. The situation in Bangladesh remains a concern, as Indian yarn is unable to reach this neighbouring market. Market sources warned that this move may prove self-defeating for Bangladesh’s garment industry, as alternative import routes would increase yarn costs.

In Delhi, 30 count combed knitting yarn was traded at ₹259-260 (approximately $3.03-3.05) per kg (GST extra), 40 count combed at ₹284-285 (approximately $3.33-3.34) per kg, 30 count carded at ₹233-235 (approximately $2.73-2.75) per kg, and 40 count carded at ₹258-260 (approximately $3.02-3.05) per kg today.

India’s home textile hub, Panipat, also witnessed stable prices for recycled yarn and raw materials. Trade sources said exporters are avoiding purchases due to uncertainty in export demand for finished products. Domestic buyers are sourcing only for immediate needs. The market is also experiencing a cash crunch, further dampening demand.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹75-78 (approximately $0.87-0.91) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹52-55 (approximately $0.60-0.64) per kg, 20s recycled PC yarn (Grey) at ₹95-99 (approximately $1.11-1.16) per kg and 30s recycled PC yarn (Grey) at ₹128-134 (approximately $1.50-1.57) per kg. Cotton comber prices were noted at ₹106-108 (approximately $1.24-1.27) per kg. Recycled polyester fibre (PET bottle fibre) noted at ₹78-80 (approximately $0.91-0.94) per kg today.

In north India, cotton prices continued to trend upward, increasing by ₹50–60 per maund (37.2 kg) since last Thursday. Traders attributed the rise to stronger ICE cotton and lower arrivals. Farmers, currently focused on wheat harvesting, are not prioritising cotton sales in Mandis and are expected to sell the remaining crop in the coming months.

North India saw cotton arrivals of 1,700 bales (170 kg each), with Punjab receiving 100 bales, Haryana 800, upper Rajasthan 500, and lower Rajasthan 300. In Punjab, cotton was priced at ₹5,690–5,700 (approximately $66.65–66.76) per maund. In Haryana, prices were ₹5,600–5,630 (approximately $65.59–65.94) per maund. In upper Rajasthan, rates stood at ₹5,700–5,720 (approximately $66.76–67.00) per maund, while in lower Rajasthan, cotton was priced at ₹54,000–55,400 (approximately $632.49–648.88) per candy (356 kg).