North India yarn markets retreat as domestic consumption stagnates

The cotton yarn market in North India is consolidating prices, with major trading hubs like Ludhiana recording a decline of approximately Rs 10 per kg in early June 2026. This trend follows a broader regional decline, as local spinning mills face the dual pressure of limited domestic consumption and a cautious approach from international buyers in export markets like China and Bangladesh. The current market is characterized by a wait-and-see sentiment, as stakeholders assess the impact of the Indian government’s recent decision to suspend the 11 per cent import duty on raw cotton through October 31, 2026.

While the duty-free import window is designed to give manufacturers access to more affordable raw materials, the immediate effect has been a tempering of yarn prices. Analysts say, although export volumes have shown resilience, with India recording a 15.79 per cent Y-o-Y increase in yarn exports earlier this year, current order inflows have slowed significantly.

Spinning mills are maintaining current floor prices to protect margins against rising energy costs, but the lack of aggressive domestic replenishment is forcing a gradual correction, noted a regional trade analyst. Despite these short-term fluctuations, the industry maintains a focus on long-term value-added production to sustain competitiveness in the global textile value chain.

Ludhiana-based spinning mills are central to India’s textile output, specializing in a wide range of combed and carded cotton yarns. These enterprises primarily serve domestic hosiery and export-oriented garment manufacturing sectors. Despite recent seasonal demand dips, the industry remains focused on long-term growth through advanced spinning technologies and export diversification.