Subdued demand stabilizes cotton yarn prices in North India

North India's cotton yarn prices have remained stable in major textile hubs like Delhi, Ludhiana, and Panipat, with subdued demand from the consumer industry keeping prices from shifting. Intended to boost the textile sector, the recent GST cut has had little immediate effect on cotton yarn prices. Traders in Ludhiana reported average demand and noted, while the GST change hasn't impacted them yet, they are hopeful for long-term benefits. According to one Ludhiana-based trader, prices are holding steady due to the lack of support from the consumer industry. However, spinning mills hope, better export demand will emerge in the coming weeks.

Traders believe, GST cuts will only boost cotton yarn demand if the benefits are passed down through the entire textile value chain. Meanwhile, prices of new cotton have declined due to a combination of increased supply from recent harvests, an influx of duty-free imports, and pressure from the Cotton Corporation of India (CCI) as it sells off its stock.