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North Indian cotton yarn market stays bearish; comber eases in Panipat

The Ludhiana market is currently facing a financial crisis due to payment delays from brands and corporates, resulting in slower demand for cotton yarn. Trade sources indicate that weak demand is due to several reasons. Brands and corporates are delaying lifting their stocks and payments, resulting in a significant backlog of garment products with manufacturers. The value of these stocks is estimated at over &#****;*,*** crore. A trader from Ludhiana told Fibre2Fashion, “Cash flow has dried up. Brands and corporates are not making payments to their suppliers and a few companies are also demanding an additional discount of * per cent of the value. Therefore, many manufacturers are seriously thinking of developing their own brands to sell garments at lower prices instead of supplying to big brands.” The current scenario is affecting the yarn market. 

Currently, ** count cotton combed yarn is being sold at &#****;***-*** per kg (GST inclusive), while ** and ** count combed yarns are being traded at &#****;***-*** per kg and &#****;***-*** per kg, respectively. Carded yarn of ** count is noted at &#****;***-*** per kg, according to Fibre2Fashion’s market analysis tool TexPro.