US Tariff Worries Curb North India Cotton Yarn Demand

The cotton yarn market across north India is experiencing a cautious phase as US tariff uncertainty continues to weigh on buyer sentiment. Trading activity has slowed considerably in key textile hubs like Ludhiana, Delhi, and Panipat, with buyers adopting a wait-and-watch approach before committing to fresh deals. This market hesitation reflects broader concerns about export competitiveness and profit margins in an already challenging global trade environment.

Ludhiana and Delhi Markets Feel the Pressure

In Ludhiana, one of India's prominent cotton yarn trading centers, traders have been forced to reduce their offer prices despite mills maintaining steady production costs. This pricing pressure stems from weak demand rather than raw material availability issues. Similarly, the Delhi market has witnessed muted buying activity as wholesalers and retailers remain reluctant to build inventory amid tariff-related uncertainties. The cautious approach suggests that stakeholders are prioritizing risk management over volume growth, waiting for clearer signals from international trade policy developments. According to industry insights from Fibre2Fashion, global textile trade dynamics significantly influence regional demand patterns in India's cotton sector.

Panipat's Recycled Yarn Finds Domestic Support

While conventional cotton yarn faces headwinds, Panipat's recycled yarn segment is showing relative resilience thanks to domestic summer-linked demand. The upcoming summer season typically drives consumption of lighter fabrics and garments, creating steady offtake for recycled yarn producers. This domestic demand cushion has helped Panipat maintain more stable trading conditions compared to export-oriented markets. Additionally, comfortable cotton availability across the supply chain has discouraged mills from aggressive stock building, keeping inventory levels lean and reducing speculative purchasing behavior.

Conclusion

The north Indian cotton yarn market is clearly in a holding pattern as US tariff worries continue to dampen buyer confidence and limit fresh deal-making. While Ludhiana and Delhi face pricing pressures and subdued demand, Panipat's recycled yarn segment benefits from seasonal domestic consumption. Moving forward, market participants will need to closely monitor international trade policy developments while balancing inventory management with demand forecasting. The current phase of cautious trading underscores the interconnected nature of global textile trade and regional market dynamics, making adaptability essential for yarn traders and mill operators across north India.