MUMBAI, May 23 (NNN-PTI) – India’s textile spinning mills decided to stop yarn production, due to an unprecedented rise in cotton prices, a top official of the South India Spinners Association said, yesterday.
In the past five months, cotton per candy (356 kg), rose by 53 percent to 115,000 rupees per candy, while yarn prices per kg have been up by 21 percent to 399 rupees per kg.
“We have unanimously decided to stop procurement of cotton and stop operations till the situation turns conducive for the sustainability of the mills,” said J. Selvan, president of the South India Spinners Association, which has 450 members in India’s southern state of Tamil Nadu.
Apart from low cotton output, which has led to the rise in cotton prices, there is no accurate statistic to measure our country’s cotton yield production, from the government or the private sector, he said.
According to Atul Ganatra, president of the Cotton Association of India, an industry body, the rising cotton prices have reduced consumption, as mills are unable to sell yarn at higher prices, while others have shifted to polyester and viscose.
Moreover, garment and power looms are working only with 30-50 percent capacity, he said.
India’s cotton crop production for the marketing year 2021-22, that began in Oct last year, is estimated at 33.5 million bales (a bale equals 170 kg), down 2.3 percent from the previous estimate, as per the Cotton Association of India.– NNN-PTI