North India's cotton yarn market stays muted amid MSP hike concerns

The Ludhiana market observed limited buying due to reduced consumption of cotton yarn. However, prices remained unchanged. A trader from Ludhiana told Fibre2Fashion, “Workers have not yet returned to factories from their native places. As a result, weaving and other activities across the textile value chain remain slow. Buyers are not placing new orders as factory consumption is still very limited.”

Traders also noted that the MSP hike is not a supportive measure and may pose challenges for Indian exporters.

In Ludhiana, 30 count cotton combed yarn was sold at ₹258-268 (approximately $3.02-3.13) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹248-258 (approximately $2.90-3.02) 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 $2.78-2.84) per kg today, according to trade sources.

The Delhi market witnessed a bearish tone in cotton yarn trade. A trader from the Delhi market said that the government has been increasing the MSP every year, which is making Indian cotton and its products less competitive in the global market. Cotton prices remain lower than the MSP, creating a disparity for the domestic ginning industry. Cotton yarn buyers have also become more cautious about entering new deals due to this recent development.

In Delhi, 30 count combed knitting yarn was traded at ₹260-261 (approximately $3.04-3.05) per kg (GST extra), 40 count combed at ₹285-286 (approximately $3.33-3.34) per kg, 30 count carded at ₹234-236 (approximately $2.74-2.76) per kg, and 40 count carded at ₹259-261 (approximately $3.03-3.05) per kg today.

India’s home textile hub, Panipat, was also facing poor demand for recycled yarn. The market witnessed very slow demand for coarse counts of recycled yarn, while finer counts saw slightly better buying. The market continued to experience payment issues and a labour shortage, which also contributed to the sluggish demand for recycled yarn. Raw materials were traded steadily.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹75-78 (approximately $0.88-0.91) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹52-55 (approximately $0.61-0.64) 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 ₹108-110 (approximately $1.26-1.29) per kg and recycled polyester fibre (PET bottle fibre) at ₹75-78 (approximately $0.88-0.91) per kg today.

In North India, cotton prices further dipped by ₹10 per maund (37.2 kg) due to slow demand from spinning mills and a bearish outlook. The higher Minimum Support Price (MSP) also failed to improve sentiment in the cotton trade. The Indian government has increased the MSP by up to 11.84 per cent for the next season, beginning in October 2025. The higher MSP for seed cotton is expected to raise cotton prices in the upcoming season. However, traders said that the current demand outlook remains very bearish, which has overshadowed the impact of the MSP hike. The price increase will come into effect after four months.

North India’s cotton arrivals totalled 750 bales (170 kg each), comprising 500 bales in Haryana, 200 in upper Rajasthan, and 50 in lower Rajasthan. Punjab reported no fresh arrivals. Cotton prices in Punjab ranged from ₹5,720 to ₹5,730 (approximately $66.90–67.02) per maund of 37.2 kg; in Haryana, ₹5,540–5,590 (approximately $64.80–65.38); in upper Rajasthan, ₹5,720–5,740 (approximately $66.90–67.14). In lower Rajasthan, prices stood at ₹53,500–₹54,800 (approximately $625.77–640.97) per candy of 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)