The Andhra Pradesh Spinning Mills Association (APSMA) closed the 200 spinning mills under it for a day today in protest against the Centre’s ban on export of cotton yarn .
The ban, imposed in January, has resulted in a steep fall in yarn prices from Rs 210 a kg to Rs 140. Traders have therefore stocked the yarn waiting for a better price. As much as 500 million kg of yarn is stocked in the country, according to APSMA president, G Punnaiah Chowdary.
The association is also planning to bring down yarn production by 33 per cent from May 24, if the ban continues. It has already sought support from other associations. “Other associations have responded positively and the yarn production would come down by 33 per cent across the country until the government lifted the ban,” Chowdary said.
Meanwhile, the Cotton Association of India (CAI) had already written to the Centre urging it to lift the ban on cotton exports. CAI chief, Dhiren Sheth, had asked the government to allow cotton exports under open general licence without restrictions on the quantity.
The APSMA chief said farmers would land in debts once again if the prices remain low due to the export policy. He said the Confederation of Indian Textile Industry had taken the decision to close the spinning mills for a day in protest.
“The government has to remove all hurdles and clear the way for free exports of cotton if the farmers are to be benefited,” Chowdary said.
