By admin       2018-09-17

With cotton prices shooting up, small and medium-scale textile mills in the region have curtailed production. Many units have reduced production during night shifts and weekends. This is because of the abnormal increase of cotton price, said S.K. Rangarajan, president of the South India Spinners’ Association. When the prices spiral up during the end of cotton season - in the months of August or September - neither the farmers nor the textile mills benefit as the cotton is mostly with the traders. Further, the SME mills do not have the financial capacity to procure cotton in bulk and store for their next season. In April, the cotton prices were Rs. 38,000 a candy. In June, the prices had shot up by Rs. 10,000 a candy, he said. The SME spinning sector buys cotton for its monthly requirements and when the cotton prices shoot up, the mills do not get a higher price for yarn. The SME sector is unable to repay bank loans resulting in NPAs. In spite of repeated representation, the Government is not curtailing the artificial inflation, he said. The association appealed to the Government to permit calibrated export of cotton and ensuring adequate buffer stock of cotton for the domestic industry. It should come out with a policy to safeguard the MSME textile sector ensuring a price mechanism so that these mills get cotton at affordable prices

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