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Yarn producers grieve over declining realization
02
Jan '08
A dramatic decline in the prices of yarn produced by Bharathi Textile Mills is evoking concerns for the manufacturers.

The yarn, which was earlier sold for Rs131 per kilogram last year, has dropped to Rs113 for 2008. This together with appreciation in rupee has increased the cost of production which goes higher than the selling price.

The mill produces an approximate of 2500 to 3000 kilograms of yarn every day which is sold to markets in Ahmedabad and Mumbai. However, a major problem lies in the fact that the mill operates on machines that are as old as 20 years and this inevitably deteriorates the quality of yarn produced.

The Government had taken charge of the mill right from April 1, 2005 and presently, it employs about 600-700 workers.

It is increasingly felt by the both the Government and the workers that the production capacity of the mill should not only be increased but also modernized. Besides, regulation pertaining to work also requires a revision to make them more practicable by way of increasing the output.


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