North India’s cotton yarn market is showing continued weakness as buyers curb purchases across major centres such as Delhi, Ludhiana and Panipat. Producers hoped for a pick-up ahead of the summer season, but low demand, tight liquidity and payment disruptions have kept bulk buying muted. Mills aiming to push prices higher have found little support from cash-conscious buyers.

Across Delhi, traders report that purchases are limited to small quantities rather than usual bulk orders. A combination of payment delays in the consumer industry and diversion of funds into more attractive asset classes — notably equities — is crimping working capital and dampening buying appetite. For spinning mills this creates a dilemma: holding prices risks inventory pile-up, while cutting margins erodes profitability.

Panipat’s recycled yarn segment has been comparatively stable, though it too faces pressures. Labour shortages and payment timing issues are impacting operations and trade flows. Recycled yarn buyers are cautious but maintaining minimal purchases to meet immediate demand. Overall cotton arrivals have continued, keeping raw-material availability adequate for now, but the mismatch between supply and buying interest remains the primary issue.

Mills are publicly optimistic about better summer demand and are seeking to position inventories accordingly. That optimism, however, depends on resolution of short-term liquidity constraints and clearer signs of consumption returning in the downstream garment and hosiery sectors. The broader macro picture — including credit flows to the textile value chain and consumer sentiment — will determine whether mills can successfully implement planned price hikes.

Conclusion:

The North India cotton yarn market is in a holding pattern. Until payment cycles normalise and working capital returns to the textile supply chain, meaningful recovery is unlikely. Stakeholders should closely monitor buyer payments, equity flow trends and early summer order books — these will reveal whether the hoped-for seasonal demand is real or merely anticipated.