North Indian cotton yarn trade faces payment issues, prices stable

17 Feb '25

4 min read

North Indian cotton yarn trade faces payment issues, prices stable

Pic: Adobe Stock

Insights

In north India, the cotton yarn market continues to experience slow to average demand due to payment issues, affecting purchasing capacity.
Prices remained stable across Delhi and Ludhiana despite the slowdown.
The market anticipates continued cautious buyer behaviour until the fiscal end in March 2024, with no significant movement in recycled yarn and raw material prices in Panipat.

The cotton yarn trade in north India continued to face payment issues, leading to slow to average demand in most markets. Cotton yarn prices remained stable at previous levels in Delhi and Ludhiana. Trade sources reported that the slow flow of payments reduced buyers’ purchasing capacity. Manufacturers avoided new purchases, preferring to clear dues to micro and small enterprises (MSEs) to avoid increasing their income tax liability by carrying over such dues to the next fiscal. Traders noted that buyers would remain cautious until the end of March when the current fiscal concludes. The Panipat market also noted stability in recycled yarn and its raw materials but faced slow demand as summer demand did not pick up amid large stocks throughout the entire value chain.

The Ludhiana market saw average demand from fabric manufacturers, with cotton yarn prices remaining steady amid the slow payment flow. A trader from the Ludhiana market told Fibre2Fashion, "Everyone is trying to manage cash flow in the last leg of the current fiscal, which has weakened the purchasing capacity of buyers. The slow demand from the garment industry also discouraged buying within the value chain. Such a bearish tone may continue for at least a few weeks."

In Ludhiana, 30 count cotton combed yarn was sold at ₹260-270 (approximately $2.99-3.11) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹250-260 (approximately $2.88-2.99) per kg and ₹255-265 (approximately $2.93-3.05) per kg, respectively; and carded yarn of 30 count was noted at ₹240-245 (approximately $2.76-2.82) per kg today, according to trade sources.

Cotton yarn prices were close to previous levels in the Delhi market. According to trade sources, the consumer industry remains cautious about buying as they are facing a cash crunch. Bharat Tex also contributed to slow demand this week. A trader explained that decision-making authorities of textile companies were engaged at the trade fair.

In Delhi, 30 count combed knitting yarn was traded at ₹262-263 (approximately $3.02-3.03) per kg (GST extra), 40 count combed at ₹290-291 (approximately $3.34-3.35) per kg, 30 count carded at ₹238-240 (approximately $2.74-2.76) per kg, and 40 count carded at ₹264-265 (approximately $3.04-3.05) per kg today.

India’s home textile hub Panipat saw no significant movement in the prices of recycled yarn and raw materials. Recycled yarn was traded at previous levels in the market. Traders said that demand for recycled yarn remained poor as the demand from the winter season ended but that from the summer season had yet to pick up. Heavy stocks from the previous season also dampened market sentiments in the recycled yarn market.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹77-80 (approximately $0.89-0.92) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹53-56 (approximately $0.61-0.64) per kg, 20s recycled PC yarn (Grey) at ₹96-100 (approximately 1.10-1.15) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (approximately $1.50-1.55) per kg. Cotton comber prices were noted at ₹105-108 (approximately $1.21-1.24) per kg and recycled polyester fibre (PET bottle fibre) at ₹79-82 (approximately $0.91-0.94) per kg today.

In north India, cotton prices were almost stable due to slow buying from spinning mills. The natural fibre was range-bound in the last couple of days. Traders said that spinning mills are adopting a cautious approach to cotton buying and are not in a hurry, even as the arrival ending period approaches. The slow demand from the downstream industry was not encouraging for spinning mills. Trade sources said that around 22.5 lakh bales of cotton had arrived in the north Indian market, and the region might see another 6-7 lakh bales in the current season until September this year.

North India’s cotton arrival was 9,100 bales of 170 kg, comprising 600 bales in Punjab, 2,500 bales in Haryana, 3,500 bales in upper Rajasthan, and 2,500 bales in lower Rajasthan. Cotton prices in Punjab ranged from ₹5,550 to ₹5,560 (approximately $63.90-64.02) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,540 to ₹5,560 (approximately $63.79-64.02). In upper Rajasthan, cotton was priced between ₹5,560- ₹5,580 (approximately $64.02-64.25) per maund. In lower Rajasthan, it was priced at ₹52,800 to ₹54,100 (approximately $607.91-622.88) per candy of 356 kg, while seed cotton was priced at ₹7,100-7,350 (approximately $81.72-85.17) per quintal of 100 kg.