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Acute power crisis pushes AP ginning mills to closure
29
Oct '12
Being no more in a condition to stand the losses stemming from severe power shortage, Andhra Pradesh (AP) ginning mills plan to cease operations from November 5. 
 
Power crisis in the state have reached to their zenith, making it impossible for the ginners and spinners to keep their mills operational, AP Cotton Association Vice-President T Ranga Sai and Spinning Mills’ Association President G Punnaiah Chowdary said in a media briefing.
 
The closure of spinning mills can be avoided only if the state government initiates urgent steps to ensure continuous power supply, even at higher rates, they added.
 
While some of the north Indian states supply power at two rupees per unit, in AP it is charged at about eight rupees per unit. Spinning mills in AP are still desirous of continuing their operations even by incurring higher cost, but power is not being supplied even for five days in a week, Mr. Sai and Mr. Chowdary said.
 
During 2012-13 cotton season, the state is expected to harvest around 10.6 million bales of cotton from 5.8 million acre of plantations.
 
Mr. Chowdary said, while cotton arrivals have already started, demand for the commodity is waning, which is feared to instigate a major crisis. 
 
Also, export prospects for the commodity too does not seem to be very good, as India is not likely to export anything above 7 million bales of cotton during the current season, a sharp fall from last season’s exports of 12.5 million bales, the duo said.
 

Fibre2fashion News Desk - India


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