North India’s cotton yarn market remained broadly steady this week as weak domestic demand and tight liquidity balanced out higher cotton prices. A softer rupee gave exporters a pricing edge — encouraging orders, especially from China — which helped spinning mills hold rates. Panipat reported costlier comber yarn but cheaper recycled polyester; limited cotton arrivals and strong purchases by the Cotton Corporation of India (CCI) kept fibre prices firm. Ludhiana likewise held prices steady amid sluggish domestic offtake and liquidity constraints. As a local trader told FibreFashion, “spinning mills secured export orders, particularly from China, as the weaker rupee created a pricing advantage. This has strengthened mills’ confidence and helped maintain current yarn price levels.”

Market details and drivers

North India’s yarn market is being pulled in opposing directions. On one side, higher raw cotton costs and steady fibre demand (buoyed by CCI buying) put upward pressure on yarn producers’ cost bases. On the other, weak local consumption and limited buyer liquidity have restrained dealers and converters from aggressively bidding, keeping volumes and transactional flow subdued.

Panipat: mills reported rising costs for comber yarn while recycled polyester prices eased — a split that favours blended and polyester-rich yarn lines in the short term.
Ludhiana: yarn rates remained firm but transactions were cautious; liquidity concerns continue to limit fresh buying from downstream segments.

Rupee effect & exports

A softer rupee is the single most important external factor supporting the current equilibrium. The currency depreciation made Indian suppliers more competitive in overseas markets, enabling spinning mills to win export contracts (notably from China). Those export orders have provided an off-take route for mills, improving near-term confidence and allowing mills to sustain prices despite tepid domestic demand.

Conclusion

North India’s cotton yarn market is currently stabilized by offsetting forces: higher cotton costs and CCI support on one hand, and weak domestic demand plus tight liquidity on the other. The softer rupee has provided a crucial export lifeline — particularly to China — helping mills maintain rates. Unless domestic demand returns or there’s a material shift in cotton arrivals/CCI buying, market direction will largely hinge on currency trends and export momentum.