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North India's cotton yarn prices surge on ICE cotton rally

Market sentiment has improved, with buyers showing confidence as Nirmala Sitharaman recently assured industry bodies of postponing Section **B(h) of the Income Tax Act **** (related to new payment regulations). Buyers have re-entered the market following the government assurance. Last week, the Ludhiana market witnessed selling pressure, contributing to a decline in cotton prices. Meanwhile, traders in Panipat&#**;s recycled yarn market have responded positively, finding relief from payment issues. Despite sluggish demand, recycled yarn and its materials maintained steady sales on the first day of this week.

Gulshan Jain, a trader from the Ludhiana market, told Fibre2Fashion, "Cotton yarn prices have recovered after a steep fall last week. Stronger cotton prices and the government&#**;s assurance on payment rules have brought confidence back to the market. Buyers have been active in seeking new deals. However, spinning mills have shown reluctance to sell their production, anticipating further appreciation in ICE cotton prices." Last Friday, stockists and dealers faced selling pressure, leading to a decline in prices. 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.