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.
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.
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.