Spinning mills across the country on Monday closed their operations to protest the withdrawal of incentives and curbs on cotton yarn exports by the government, the Confederation of Indian Textiles Industry said.
It also said the mills would start cutting their production by 33 per cent from tomorrow.
"The closure was complete all over the country from Punjab and Uttarakhand in the North to Tamil Nadu and Andhra Pradesh in the South," CITI Chairman Shishir Jaipuria said in a statement here.
There are 3,000 spinning mills across the nation. The daily production is 10 million kg.
"The one-day closure and production cut would lead to a loss of Rs 200 crore and about Rs 525 crore, respectively," Jaipuria said.
Jaipuria said a virtual ban on exports of cotton yarn during over two months in the last quarter and a declining trend in domestic demand had resulted in the huge unsold stock with the spinning mills all over the country.