North India’s cotton yarn market is treading water. Spinning mills across Delhi, Ludhiana and Panipat pushed for higher mill-gate rates anticipating summer demand, but buying interest remained muted as downstream buyers purchased only in small quantities. Payment delays and tight liquidity further constrained bulk purchases, with some funds reportedly diverted into equity markets rather than into textile trade. Fibre2Fashion+1

Panipat — an important hub for recycled yarn — showed relative price stability despite labour shortages and continuing payment issues. Recycled yarn trade has been steady, but limited workforce availability (noted in some local reports) and cash-flow constraints kept volumes subdued. Cotton arrivals continued into markets, but better supply did not immediately translate into stronger offtake for yarn. Fibre2Fashion+1

Why this matters: weaker yarn demand reduces mill margins and can delay working-capital cycles; mills struggle to pass on higher fibre costs, and the downstream weaving/knit sectors face inventory and production planning uncertainty. Traders say the payment crisis is the single biggest drag on buying power right now. Fibre2Fashion+1

What to watch next

• Will QCO (Quality Control Orders) policy changes for polyester fiber/ intermediates change demand mix or cost structures for blended/recycled fibres? Market sources say the full impact is yet to emerge. Fibre2Fashion+1

• Cotton arrivals & festival-season buying (timelines vary) — these determine short-term demand spikes.

• Liquidity flows: if buyer credit improves, bulk purchasing could resume.

Conclusion
North India’s yarn markets are currently constrained by weak demand, payment problems and capital diversion. While mills remain hopeful for summer improvement, immediate recovery looks dependent on easing payment flows and clearer signals from downstream buyers. Monitor cotton arrivals, policy changes (like QCOs) and liquidity conditions to predict near-term movement. Fibre2Fashion+1