In Tamil Nadu, looking at less demand and sharp fall in yarn prices of yarn, many mills have reduced or stopped production of yarn. Stoppage of production would reduce stocks, which could be disposed off till the demand returns from weavers.
This will impact overall 25% reduction in total production, which mills hope would be able to reverse the continuing fall in prices. It is being said that 100 textile mills closed in first the weekend.
There are more than 200 spinning mills in Tamil Nadu which are producing about 40,000 tonnes of blended yarn per month.
Indian Textpreneurs’ Federation’s decision was followed by Synthetic Spinners’ Group’s decision to shut their units during the weekend. The decision to stop production, at least for eight weeks, was taken at a meeting of chiefs of nearly 90 mills under the aegis of Indian Texpreneurs Federation, for taking corrective measures to control the crisis.
