Cotton spinning mills in northern India are planning to shut down one day a week. According to Chandigarh based Northern India Textile Mills’ Association (NITMA) that has 98 member mills that includes leading names such as Vardhaman and Trident, etc., excess spinning capacity and decline in exports this fiscal year have resulted in poor cash flow and excessive stocks.
In addition to these fiscal matters, textile policies in some southern states and those of Madhya Pradesh and Gujarat are hitting the northern spinning mills hard, stated Mr. Sharad Jaipuria, President of NITMA.
Mr. H. S. Cheema, Senior Vice President of NITMA stated that the spinning sector is under crisis and plans like shutting the production one day in a week are under serious consideration.
In a telephone conversation with this scribe today, Mr. G. Balasubramanian, Secretary General of NITMA stated India has about 10% excess spinning capacity.
According to him, “yarn exports have fallen by about 20% year-on-year in the first quarter of this year.” More importantly, imports by China have declined by about 30-40% this year creating a greater blow to the Indian spinning industry.
Source:hellenicshippingnews.com
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