Spinning mills in TN to cut production as yarn demand slumps

Synthetic yarn spinning mills in Tamil Nadu has resorted to stoppage of production twice a week due to a sharp decline in demand for the fibre.
The decision to stop production, at least for eight weeks, was taken today at a meeting of chiefs of nearly 90 mills under the aegis of Indian Texpreneurs Federation, for taking corrective measures to control the crisis.
The demand for yarn has fallen sharply in recent months.
Stoppage of production would reduce stocks, which could be disposed off till the demand returns from weavers, ITF sources said.
Tamil Nadu, which produces 40,000 tonnes of high count synthetic yarn per month like polyester cotton yarn, 40 per cent of the National production, supplies to major weaving centres of Ichalakaranji, Malegoan, Bhiwanvi and Bhilwara.

The mills were incurring 10 to 15 per cent loss due to the decline, despite normal production, they said.
The impact of cutting production will be monitored by a committee, which will take future course of action, they said.