Extended pause in US reciprocal tariffs fails to stimulate cotton yarn market in North India

The recent extension of US reciprocal tariff pause until August 1, 2025 has failed to stimulate the in North India’s textile sector as the cotton yarn market across the region, particularly in Delhi and Ludhiana, continues to remain sluggish. Cautious buying are stabilizing market prices in Delhi and Ludhiana. Cotton mills across the region are grappling with increasing raw cotton costs on one hand and persistently weak demand from downstream industries on the other. This is hindering any potential recovery.

Sentiment within the industry continues to be low due to ongoing uncertainties surrounding export prospects and a lack of clear, long-term tariff policies. Manufacturers and traders are hesitant to make substantial commitments in such an unpredictable environment. Even Panipat, a major center for home furnishings and recycled yarn, is experiencing soft demand, compounding the difficulties faced by the broader North Indian cotton yarn market. The industry is keenly awaiting more favorable market conditions and clear policy signals to revitalize trade.