Synthetic yarn manufacturers to cut down production

With sharp decline in demand for synthetic yarn due to unknown reasons for the last few months, spinning mills in Tamil Nadu today decided to stop production twice a week with immediate effect, to arrest the decline.
A decision to this effect was taken at a meeting of managing directors of nearly 90 mills producing such yarns, under Indian Texpreneurs Federation (ITF), for taking corrective measures to control the crisis.
Accordingly, the mills decided to stop production on Saturdays and Sundays for a few weeks, so as not to pile up the stocks in various mills could be disposed of, Naresh Devaraj, Coordinator-ITF (Synthetic Group) told reporters here tonight.

Tamil Nadu, which produces 40,000 tonnes of high count synthetic yarns per month, such as polyester cotton yarn-- 40 per cent of the National production-- supplies to major weaving centres of Ichalakaranji, Malegoan, Bhiwanvi and Bhilwara, he said.
Stating that these mills were incurring 10 to 15 per cent loss due to the decline in the demand, despite normal production, he claimed that the reasons for such sharp decline were not immediately known.
A committee has been formed to analyse the sudden decline and also to review the impact of cut in production, D Prabhu, Secretary, Texpreneurs Forum said.
The meeting also decided to create a scientific data base and marketing intelligence to provide the trend to the mills, he said.

It was also decided to convene a meeting of raw material suppliers to the mills, to furnish a picture of 'this unprecedented situation' to them, Prabhu said.