Home / Knowledge / News / Textiles / CITI urges govt to ease cotton yarn situation
CITI urges govt to ease cotton yarn situation
22
Jul '11
Spinning industry of the country which had a stock of more than 500 million kgs of cotton yarn following last year's restrictions on exports have reported significant easing of the cotton yarn stock position. In a statement here Shri Shishir Jaipuria, Chairman, Confederation of Indian Textile Industry (CITI) stated that from 23rd May 2011 onwards spinning mills all over the country had resorted to significant production cuts.

Currently 25–30 per cent of capacity for cotton yarn production in the country is lying closed. Meanwhile, restriction on export of cotton yarn has been lifted by the government and current cotton yarn exports are comparable with those of the same period last year. Shri Jaipuria added that there has also been some positive movement in domestic demand for cotton yarn and he expects this trend to continue.

Shri Shishir Jaipuria explained that from a peak level of 500 million kgs, cotton yarn stocks with the mills have now come down to around 350 million kgs and he expects these to come down further in the coming months. He added that the festival season in the country starting from September onwards is expected to see significant improvement in demand for all textile products and this would also help the spinning sector to dispose of their accumulated stocks of cotton yarn.

Shri Jaipuria stated that CITI has requested government for a comprehensive relief package for the spinning industry in order to tackle the losses suffered by the industry in recent months because of restrictions in cotton yarn exports, fluctuation in cotton and cotton yarn prices and accumulation of stocks both of fibre and yarn. Shri Jaipuria stated that with the improvement in the demand position, spinning industry is expected to come out of its present problems during the second half of the current fiscal.

However, the mills will find it extremely difficult to repay loans and find working capital in the coming months because of the huge losses they suffered during the first half of the fiscal.

He stated that CITI has sought a two year moratorium or repayment of loans and interest and a few other facilities from the Reserve Bank of India, in order to avoid the accounts becoming Non Performing Assets and added that the industry is confident that the current challenges can be met with the help of the relief which the industry has sought from government and the RBI and this will help the industry to revive its operations in full during the coming months and to avoid retrenchment of any workers.

Confederation of Indian Textile Industry (CITI)

Must ReadView All

Courtesy: Myntra

Apparel/Garments | On 3rd Dec 2016

Myntra to be EBITA positive by FY18: CEO Narayanan

Myntra is on track to achieve sustainable growth and be EBITA...

Courtesy: India ITME Society

Textiles | On 3rd Dec 2016

India ITME 2016 opens with over 1050 exhibitors

The India International Textile Machinery Exhibition (India ITME)...

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Interviews View All

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search