Export momentum and tight supply boosts North India’s cotton yarn prices
A shift towards export commitments have been increasing cotton yarns prices across North India markets, particularly Ludhiana and Delhi hubs, this May. Spinning mills in these markets have reported a strong order book for the next 30 days, primarily catering to rebounding demand from China and Bangladesh. This external liquidity has empowered manufacturers to raise domestic quotations, passing on the 4 per cent hike in raw Shankar-6 variety cotton prices as the harvest season concludes and market arrivals dwindle. Conversely, the recycled yarn sector in Panipat remains remarkably stable. This price ceiling is attributed to consistent inflows of post-consumer textile waste and a steady transition to biomass-fired boilers, which has cushioned units against fluctuating fossil fuel costs.
The pricing power has shifted back to the mills, notes a regional trade analyst. With export demand firm, there is little incentive to offer discounts to local weaving units, despite their mounting margin pressures. A brief assessment of a Ludhiana-based spinning enterprise revealed, prioritizing high-count combed yarn for overseas apparel brands has boosted its quarterly revenue by 12 per cent. However, the broader sector faces a divergent path; while cotton yarn prices remain bullish due to tightening supply, the recycled segment is leveraging established mechanical recycling infrastructure to maintain cost-competitiveness. This stability in recycled fibers is proving essential for the home textile market, as global buyers increasingly mandate certified circular materials to comply with tightening ESG regulations.
Ludhiana-based spinning mills are leading producers of high-quality cotton and blended yarns for the global garment industry. Serving major markets in Southeast Asia and Europe, these mills are currently expanding high-speed spinning capacities. Financial forecasts indicate strong fiscal performance for 2026, supported by strategic export diversification and favorable trade agreements.