India's Spinning Hubs Face Liquidity Crunch Amid 3.75% Export Decline

Spinning hubs in Tiruppur and Coimbatore face a liquidity crunch ahead of FY26-end, with textile exports down 3.75% YoY, even as the global cotton yarn market is projected at $82.89 billion this year.

An industry survey shows 82% of manufacturers report extended credit cycles, with payments delayed by 3–6 months due to weak fabric offtake.

The Union Budget 2026–27 boosted liquidity via TReDS and extended export obligation to 12 months, though spinning margins may contract by 50–100 basis points in the current half.

Mills are shifting to Compact and SIRO yarns and automated roving systems that cut labour dependence by 30%, aligning with India’s $100 billion export target by 2030.

Established in 1976, a leading textile group with turnover above ₹1,500 crore is expanding capacity through advanced automation and premium fiber production.