US Tariff Cut Brings Relief to Himachal Yarn Mills, Production May Rise by 30-35%
The United States has reduced tariffs on Indian imports from 50% to 18%, providing significant relief to yarn mills in Himachal Pradesh. These mills had been hit by a slowdown over the past year, but the reopening of the US market has raised hopes of increased production. It is estimated that an additional 700 to 1,000 tons of yarn per month could be supplied across the state.
More than a dozen yarn mills operate in Una, Baddi, Barotiwala, Kala Amb, and Paonta Sahib. These units supply cotton, blended, melange, and synthetic yarn to leading garment manufacturers. Products such as towels, blankets, T-shirts, jeans, pants, shirts, and undergarments are prepared and exported to the US and Europe.
The Russia-Ukraine war and the 50% US tariff had drastically reduced the supply of Indian cotton textiles, hitting Himachal’s yarn mills hard and reducing production by 30-40%. Now, with the tariff reduction, production is expected to rise by 30-35%.
Rohit Arora, Executive Chairman of Birla Company, Baddi, said that the demand for nearly 1,000 tons of additional yarn is likely across the state. Yarn is produced for well-known companies like Vardhman, GAP, PVH, Target, and Hans. Mukesh Bansal, Fabric Head at Vardhman, stated that production is now expected to increase again.
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