Tariff pause raises hope for better cotton yarn demand in north India

Cotton yarn was traded steadily in the Ludhiana market, where better-than-average demand was observed. The cotton arrival season is ending in India, which could boost prices in the domestic market. Spinners are already looking to increase their selling prices to pass on recent gains in cotton prices. Positive developments on the export front will also increase the appetite of the consumer industry. A trader from the Ludhiana market told Fibre2Fashion, “The market has noticed a positive tone in cotton yarn trade. An increase in cotton prices will make the yarn outlook bullish for the coming weeks. Summer demand for cotton yarn will also pick up from the domestic industry.”

In Ludhiana, 30 count cotton combed yarn was sold at ₹258-268 (approximately $3.00-3.11) per kg (inclusive of GST); 20 and 25 count combed yarn were traded at ₹248-258 (approximately $2.88-3.00) per kg and ₹253-263 (approximately $2.94-3.06) per kg, respectively; and carded yarn of 30 count was noted at ₹238-243 (approximately $2.77-2.82) per kg today, according to trade sources.

The Delhi market also witnessed optimism in cotton yarn trade. Buyers once again engaged in purchasing and production planning based on demand prospects. Previously, they had preferred to hold off on new purchases due to uncertainty, but the situation has now become clearer. According to market sources, cotton yarn demand may pick up in the coming week. Exporters can now plan production and shipment according to the window provided by the tariff pause. Although garment shipments generally increase after July, ahead of the Christmas season—the main selling season for retail markets in the US.

In Delhi, 30 count combed knitting yarn was traded at ₹259-260 (approximately $3.01-3.02) per kg (GST extra), 40 count combed at ₹284-285 (approximately $3.30-3.31) per kg, 30 count carded at ₹233-235 (approximately $2.71-2.73) per kg, and 40 count carded at ₹258-260 (approximately $3.00-3.02) per kg today.

India’s home textile hub Panipat also witnessed stability in recycled yarn and its raw materials. Trade sources said that the market will take at least three to four days to determine a clear direction. Buyers who had paused their purchasing due to tariff-related concerns are expected to return. The market saw poor demand for recycled yarn and its raw materials. Recycled polyester fibre and cotton combers are likely to experience an upward trend. Producers are currently facing a shortage of PET bottles used as raw material for recycled polyester fibre. Cotton comber supply is also expected to slow down as the cotton season ends.

In Panipat, 10s recycled PC yarn (Grey) was traded at ₹75-78 (approximately $0.87-0.91) per kg (GST paid). Other varieties and counts were noted at 10s recycled PC yarn (Black) at ₹52-55 (approximately $0.60-0.64) per kg, 20s recycled PC yarn (Grey) at ₹95-99 (approximately 1.10-1.15) per kg and 30s recycled PC yarn (Grey) at ₹128-134 (approximately $1.49-1.56) per kg. Cotton comber prices were noted at ₹103-106 (approximately $1.20-1.23) per kg and recycled polyester fibre (PET bottle fibre) at ₹80-82 (approximately $0.93-0.95) per kg today.

In north India, cotton prices increased by ₹20–25 per maund of 37.2 kg as the market rebounded following gains in ICE cotton. Global cotton prices rose after the easing of tariff tensions. The domestic cotton scenario also remained bullish. Traders said there is limited availability of cotton in the open market in India, as the Cotton Corporation of India (CCI) has cornered 100 lakh bales this season. It is selling the natural fibre at higher prices than the open market.

Cotton arrivals in north India stood at 3,800 bales of 170 kg, comprising 200 bales in Punjab, 1,500 bales in Haryana, 1,300 bales in upper Rajasthan, and 800 bales in Lower Rajasthan. Cotton prices in Punjab ranged from ₹5,590 to ₹5,610 (approximately $64.97–65.20) per maund of 37.2 kg, while in Haryana, prices ranged from ₹5,450 to ₹5,510 (approximately $63.34–64.04). In upper Rajasthan, cotton was priced between ₹5,590–5,610 (approximately $64.97–65.20) per maund. In lower Rajasthan, it was priced at ₹53,300 to ₹54,400 (approximately $619.47–632.25) per candy of 356 kg. Meanwhile, seed cotton was priced at ₹7,250–7,450 (approximately $84.26–86.59) per quintal of 100 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)