Mills to stop sales and delivery of yarns for one week

About 500 mills affiliated to South India Spinners Association (SISPA) have decided not to sell or deliver yarns for one week from third week of this month to avoid the traders from creating a situation to source yarn at lower prices.
The decision, applicable only for this month, was taken at an emergency meeting to discuss the crisis facing the entire textiles industry, SISPA president C Varatharajan told reporters here today.
In difficult times of producers, some yarn traders have been found to take undue advantage by quoting less prices for certain varieties of yarns, thus creating a panic situation to source yarns at lower prices, which affected mills' realisations, Varatharajan said.

Besides, to bring the attention of the Centre and state governments to understand the difficulties faced by industry and to extend appropriate support through policy decisions to the textile industry, all member mills have agreed to a one day production stoppage, date of which will be announced in consultation with other associations.
Stating that there is a need for change in functioning of Cotton Corporation of India (CCI), he said CCI is 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.
The spinners have 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, inconsistent Polyester Fiber supplies, Varatharajan said.

He added that due to these factors, a large number of spinning mills across Tamil Nadu are faced with the burden of carrying huge quantities of yarn stocks.
One of the reasons for the difficulties faced by spinning mills was inconsistent textile policies of the central government, he said, requesting the government to frame an industry-friendly policy.