Spinning mills suffering loss of Rs 20-25 per kg of yarn: Industry body

Global crisis, interest rate hike, higher power tariffs and repayment of ECLGS loans among slew of factors to have taken a toll on sector, which now seeks govt relief

Lower demand due to the global financial crisis, rise in interest rates, revised power tariff, repayment of the Emergency Credit Line Guarantee Scheme (ECLGS) loans and unrestricted imports of yarn and fabrics from China, Bangladesh and Vietnam are leading to huge cash losses of Rs 20-25 per kilo gram of yarn, say spinning industry players.

According to Tamilnadu Spinning Mills Association (TASMA), over the past several months, bank interest rates have gradually risen from 7.75 per cent to 10.75 per cent, increasing the cost of yarn production by Rs 5 to Rs 6 per kg. The recent hike in Tamil Nadu