Indian apparel manufacturers have been struggling since last few months with high availability of yarn and are on toes to overcome this issue. And now, even Ministry of Textiles is also active on this issue.
Meanwhile, the South India Spinners Association (SISPA) has requested Prime Minister Narendra Modi to take steps to liquidate their yarn stock or extend help to fully dispose the stocks, since there have been no buyers for last 20 days.
The association refuted reports, ‘whether fake or unrealistic’, being fabricated and projected by the Apparel Export Promotion Council (AEPC) that the spinning mills have formed a cartel to hold the yarn and fix prices.
It stated that the yarn prices have been reduced by about Rs. 40 to Rs. 50 per kg for all counts in April.
N. Murugesan, President, SISPA said that due to multiple factors there were no buyers and stocks had been piling up for last 20 days.
He added that in reality, major centres like Mumbai, Biwandi, Ichalkaranji, Malegaon, Surat, Kolkata and Erode were unable to procure yarn as demand was very poor.
He further added that though all the spinning mills associations had informed the AEPC of yarn requirements, there has been no response to date from the Council.
“The spinning mills are in a very grim situation regarding the future, as they are unable to sell cotton yarn, polyester cotton yarn, polyester viscose yarn and polyester yarn of all counts,” he claimed.
SISPA claimed that its members are running at only 50 to 60 per cent utilisation. The cost of packing material, spares, transport, labour and diesel has increased, making the cost of production higher.
“Most of the mills are in huge financial crisis for the past 10 years and are still not out of debt. We request that the MSME textile industry be saved from false propaganda for unknown reasons,” Murugesan said.
Apparel manufacturers have completely disagreed and believe that due to pressure from all stakeholders, SISPA is presenting unfair picture.
