August 11, 2015
About 500 mills, affiliated to South India Spinners’ Association (SISPA) have decided not to sell or deliver yarn for one week starting from the third week of this month. This was to prevent the traders from creating a situation to source yarn at lower prices.
The decision to this effect was taken at an emergency meeting held on Monday to discuss the crisis facing the entire textile industry, SISPA President, C. Varatharajan told reporters here.
Some yarn traders have been found to take undue advantage by quoting wrong (less) prices for certain varieties of yarns thus creating a panic situation to source yarns at lower prices, which affected mills’ realisations, Varatharajan said.
To prevent this, it was decided that all member mills discuss and share details of yarn prices among themselves before confirming a sale, to protect themselves and the yarn markets, he said.
Besides, to draw the attention of the Centre and State Governments to understand the difficulties faced by the industry and to extend appropriate support through policy decisions to the textile industry, all member mills had agreed to a one-day production stoppage, date of which will be announced in consultation with other associations.
Stating that there was the need for change in the functioning of Cotton Corporation of India (CCI), he said that CCI was now functioning with a profitable motive supplying cotton to large traders and mediators, depriving mills, the actual consumers of cotton, availability of the materials at fair prices.
SISPA had objected to this practise and had requested the Central Government many times to instruct CCI to sell cotton directly to spinning mills alone at fair prices, but this request had unfortunately gone unnoticed, he said.
The spinners had been finding it difficult to sell at profitable prices due to frequent fluctuations in cotton prices, yarn price depreciation due to piling up of stocks caused due to closure of dyeing units in certain North Indian processing centres, high cotton prices, and inconsistent Polyester Fibre supplies, Varatharajan said, adding that due to these factors, a large number of spinning mills across Tamil Nadu were faced with the burden of carrying huge quantities of yarn stocks.
One of the reasons for the difficulties faced by the spinning mills was inconsistent textile policies of the Central Government, he said, and requested the Government to frame an industry friendly policy, and more importantly, one that would be consistent in the short, middle and long term.