Centre Cuts Hank Yarn Obligation for Spinning Mills From 30% to 20%

Ministry of Textiles' June 15 notification reduces the mandatory hank yarn packing obligation on spinning mills from 30% to 20%, loosening domestic supply rules for yarn earmarked for the handloom sector and giving mills more flexibility on output mix.

— Source publishedWed, 17 Jun, 2026, 17:51 IST·First seen Wed, 17 Jun, 2026, 18:03 IST·Source Apparel Resources India

What happened

Ministry of Textiles cut the mandatory hank yarn packing obligation for spinning mills from 30% to 20% via a June 15 notification, easing supply rules for yarn

Key facts

  • 20%
  • 30%

Why this matters

Watch for yarn supply rebalancing across the value chain, with potential sourcing pressure on handloom buyers and openings for backward integration or offtake deals with mills reallocating volumes.