Ludhiana: In view of the slump in the market, textile spinning mills are considering cutting down production and shutting down the units once a week. 

Currently, the mills operate 24x7 for seven days. 

According to Rajiv Garg, president of Northern India Textile Mills Association (NITMA), the decision to take this step has come as a result of excess spinning capacity in the country and poor demand for yarn from overseas markets that had led to accumulation of yarn stocks and poor liquidity. 

Garg said, “China that has been a major importer of Indian yarns for the past few years, has cut down imports in the past few months, thus worsening the situation and leading to accumulation of yarn stocks in Indian spinning mills. The spinning industry is under crisis and the situation is moving from bad to worse and spinners are making losses.” 

“The industry is therefore considering various options to reduce daily production, including closing the plant for one day in a week or more,” he added.

 

Meanwhile, Madanmohan Vyas, president of Punjab Spinners Association, claimed that the slump is temporary and industrialists should not panic. 

Published On : 16-07-2019

Source : Times of India