North Indian cotton yarn market faces pressure from Bangladesh ban

17 Apr '25

5 min read

North Indian cotton yarn market faces pressure from Bangladesh ban

Pic: Shutterstock

Insights

Cotton prices rose in north India amid limited arrivals and steady mill demand, but yarn prices remained stable due to weak demand and Bangladesh's ban on yarn imports via land ports.
The move has hit Indian exporters, with Bangladesh being a key market.
Traders hope for relief through a proposed India-US trade deal.
In Panipat, seasonal demand supported recycled PC yarn.

Cotton prices inched up further in north India due to slow arrivals and consistent demand from spinning mills. However, cotton yarn prices remained stable as weak demand and Bangladesh’s ban dampened sentiment in the north Indian markets of Delhi and Ludhiana. Market experts commented that the recent ban on yarn imports through land ports by Bangladesh will shut down a key market for Indian yarn. Trade data suggests that India was the top yarn supplier to Bangladesh last year, holding over 50 per cent market share. Bangladesh was also the largest market for Indian yarn exports, accounting for more than 33 per cent. Traders are now looking for support from the proposed bilateral trade agreement (BTA) between India and the US.

The Panipat market witnessed improved demand for recycled PC yarn from the local market as summer buying picked up. However, there was a pessimistic outlook for export demand in the home textiles segment. Recycled yarn prices have remained stable over the past few days. Cotton comber traded higher, but recycled polyester fibre declined in the market.

In Ludhiana, cotton yarn demand has slowed down, but prices remained stable, supported by high cotton prices. A trader from the Ludhiana market told Fibre2Fashion, “The market has seen slower demand for cotton yarn. Buyers are cautious about fresh purchases due to uncertainty in export demand. The local market is concerned about weaker demand in the coming weeks, as importers in Bangladesh may no longer find Indian cotton the most favourable option.”

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.

Traders in Delhi were also concerned about the Bangladesh issue. Indian yarn may no longer be attractive to importers from the neighbouring country, who previously received shipments within days at lower freight costs. Now, buyers will weigh options between India and China if they must import via seaports. According to market sources, sentiment has weakened due to this development, even as high cotton prices have raised yarn production 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 saw seasonal demand for recycled PC yarn due to summer buying, though prices showed no significant movement. Trade sources noted that bedsheet demand typically increases in north India during summer. Current PC yarn buying is being driven by local seasonal demand. Export-oriented units have also shifted towards the PC segment amid sluggish export demand. However, Panipat also expressed concerns over Bangladesh’s ban on yarn imports via land ports. Cotton comber prices rose by ₹2–3 per kg, while recycled polyester fibre declined by ₹1–2 per kg after a price cut in virgin polyester fibre.

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 and recycled polyester fibre (PET bottle fibre) at ₹78-80 (approximately $0.91-0.94) per kg today.

In north India, cotton prices rose by ₹10 per maund (37.2 kg) due to limited domestic availability and support from stronger ICE cotton futures. However, speculation of an import duty cut and higher US exports remain bearish factors. Traders noted that low arrivals and steady mill demand supported sentiment, pushing cotton prices higher. Large stockpiles held by the Cotton Corporation of India (CCI) have also added upward pressure.

Cotton arrivals in north India totalled 2,800 bales (170 kg each), including 100 bales in Punjab, 1,300 in Haryana, 1,000 in upper Rajasthan, and 400 in lower Rajasthan. In Punjab, prices ranged from ₹5,630–5,640 (approximately $65.96–66.08) per maund; in Haryana, ₹5,530–5,570 (approximately $64.79–65.26); in upper Rajasthan, ₹5,650–5,670 (approximately $66.19–66.43); and in lower Rajasthan, ₹53,600–55,200 (approximately $626.79–646.71) per candy (356 kg). Seed cotton was priced at ₹7,300–7,500 (approximately $85.24–87.58) per quintal (100 kg).