North India spinning mills shift focus to export orders to sustain operations

Spinning mills across North India’s textile hubs, including Ludhiana, Panipat, and Delhi, are aggressively shifting their focus toward export orders to sustain capacity utilization as domestic demand falters.

With downstream weaving units currently operating at a restrained 65–70 per cent capacity, the region’s spinners are increasingly looking to China, Bangladesh, and Vietnam to offload inventories. A weaker Indian Rupee and a 1.4 per cent decline in yarn prices over the final quarter of 2025 have provided a timely competitive edge, allowing North Indian mills to secure ‘spring 2026’ restocking orders from major international apparel brands.

This export pivot is a survival necessity; while local cotton prices have stabilized, high operational costs- driven by a 108 per cent rise in Minimum Support Price (MSP) for cotton over the last decade and fluctuating energy tariffs - have squeezed margins for those relying solely on the Indian market. To counter the 50 per cent tariffs recently imposed by the US on certain Indian textile categories, mills are diversifying into high-count combed yarn (above 60s), which commands premium pricing of $5.2–$5.4 per kilogram.

Furthermore, the extension of the cotton import duty exemption until December 31, 2025, has allowed these export-oriented units (EOUs) to blend high-quality imported fiber with domestic crops, ensuring the strength and uniformity required by European and American high-street retailers.