Cotton yarn prices in North India have remained largely stable over the past week, even as the market continues to face sluggish demand and mounting financial pressures.
In major textile hubs like Ludhiana and Delhi, yarn traders report that 30-count combed yarn is still trading between ₹260 and ₹270 per kilogram, with finer counts such as 40s combed yarn priced slightly higher. Despite this price stability, the overall sentiment in the market remains cautious, driven by tight liquidity conditions and the impact of stricter payment regulations, especially affecting small and medium-sized enterprises (SMEs). Many buyers are refraining from placing large orders, choosing instead to adopt a wait-and-watch approach in light of potential cash flow issues.
Export demand has provided a slight cushion to the market, with a depreciating Indian rupee making Indian yarn more attractive to overseas buyers. Exporters, particularly those supplying to markets like Bangladesh and the Middle East, have witnessed a modest rise in inquiries. However, industry players say that while exports offer some support, they are not yet strong enough to compensate for the dullness in domestic trade.
In Panipat, which is known for its recycled yarn industry, prices have also remained steady. There, consistent orders from the garment sector have provided some stability, although demand from the home textile segment remains soft, reflecting overall caution in consumer-facing sectors.
Looking ahead, most traders and manufacturers expect cotton yarn prices to stay range-bound in the near future. The balance between subdued domestic demand and limited but growing export interest is keeping the market from tipping in either direction.
Market participants are also closely monitoring developments in the cotton market, as any significant changes in raw cotton prices could influence yarn pricing. Unless there is a major shift in government policy, financial relief for MSMEs, or a sharp revival in consumer demand, the cotton yarn market in North India is likely to continue on its current steady, yet sluggish path.