North India cotton yarn faces payment woes; mills unable to hike rates

The Ludhiana market has witnessed payment issues in the cotton yarn trade. Although average-level demand for cotton yarn was observed, spinners and the consumer industry have differing views on demand prospects and pricing dynamics. A trader from Ludhiana told Fibre2Fashion, “Spinning mills or buyers will have to back down on prices. Mills are trying to raise cotton yarn rates following the rise in natural fibre costs, while fabric manufacturers are facing sluggish demand for fabric from the garment industry.”

In Ludhiana, 30 count cotton combed yarn was sold at ₹255-265 (~$2.98-3.09) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹245-255 (~$2.86-2.98) per kg and ₹250-260 (~$2.92-3.03) per kg, respectively; and carded yarn of 30 count was noted at ₹235-240 (~$2.74-2.80) per kg today, according to trade sources.

Cotton yarn was traded at previous levels in the Delhi market as well. According to market sources, demand for cotton yarn is declining due to various factors. Limited disposable income among consumers is impacting garment demand in both domestic and global markets. US tariff concerns are one factor affecting the textile industry. Additionally, consumers in lower and middle-income groups are shifting towards polyester garments, which are cheaper than cotton alternatives.

In Delhi, 30 count combed knitting yarn was traded at ₹257-258 (~$2.99-3.00) per kg (GST extra), 40 count combed at ₹282-283 (~$3.28-3.29) per kg, 30 count carded at ₹231-233 (~$2.69-2.71) per kg, and 40 count carded at ₹256-258 (~$2.98-3.00) per kg today.

Cotton comber prices rose by ₹3–4 per kg due to the rise in natural fibre prices in India’s home textile hub, Panipat. However, recycled polyester fibre remained stable in the market. Recycled yarn was traded at previous levels amid weak demand. Despite the season, export demand for home textiles has not picked up. Traders said uncertainty over US tariffs is discouraging foreign buyers from placing orders. Domestic festival demand is expected to begin next month.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹75-78 (~$0.87-0.91) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹60-65 (~$0.70-0.76) per kg, 20s recycled PC yarn (Grey) at ₹101-103 (~$1.17-1.20) per kg and 30s recycled PC yarn (Grey) at ₹130-135 (~$1.51-1.57) per kg. Cotton comber prices were noted at ₹102-106 (~$1.19-1.23) per kg and recycled polyester fibre (PET bottle fibre) at ₹75-79 (~$0.87-0.92) per kg today.

In north India, cotton prices continued to rise by ₹10–20 per maund (37.2 kg) at the start of the week. The Cotton Corporation of India (CCI) is raising the base price of cotton for auction sales, allowing private traders and ginners to quote higher prices. A positive trend in ICE cotton and domestic bullish sentiment is driving cotton yarn prices upward.

Cotton arrivals in north India have dropped to negligible levels. Total arrivals across the region are expected to be just over 100 bales. Only stocked cotton is being traded. Cotton prices in Punjab ranged from ₹5,940 to ₹5,950 (~$69.07–69.19) per maund; in Haryana, ₹5,680–5,750 (~$66.05–66.86); in upper Rajasthan, ₹5,940–5,950 (~$69.07–69.19). In lower Rajasthan, prices were noted at ₹55,000–56,600 (~$639.55–658.16) per candy (356 kg).

Disclaimer: The prices in this article are based on market sources and hence, readers are recommended to do their own research before making any decision. The publisher and their affiliates are not liable for any inaccuracies or actions taken based on this information.

ALCHEMPro News Desk (KUL)