In North India, cotton yarn prices remained broadly stable despite persistent weak demand and increasing unease surrounding looming U.S. tariffs. Major textile hubs such as Ludhiana, Delhi, and Panipat reported little to no movement in prices as buyers adopted a cautious, wait-and-watch stance in the face of trade policy uncertainty. In Delhi and Ludhiana, domestic and export inquiries were subdued, preventing mills from passing on rising cotton costs to customers. Mills are thus being squeezed on margins and constrained by weak purchasing sentiment and buyer payment issues.. Meanwhile, in Panipat, trading in recycled yarn also witnessed sluggish demand, with downstream orders delayed and seasonal monsoon disruptions compounding the decline in activity.
Cotton prices themselves edged higher—but not enough to ignite trading momentum. Supply constraints from private sellers, together with stiff auction conditions by the Cotton Corporation of India (CCI), further tightened available stocks, even as mills struggled with the dual pressure of cost inflation and mounting uncertainty.
Industry insiders pointed to tariff ambiguity as a key impediment to trade near-term. Although the U.S. extended a tariff pause to August 1, this relief failed to lift sentiment or encourage new orders—particularly in the export segment, where clarity around tariff regimes remains elusive.
In summary, stable yarn prices are masking deeper challenges: weak downstream demand, rising raw-material costs, and unresolved U.S. trade policy risks. Without clarity or renewed export orders, the sector appears stuck in limbo, with margins under stress.
