Home / Knowledge / News / Textiles / Spinning industry comes to a grinding halt – Chairman, CITI
Spinning industry comes to a grinding halt – Chairman, CITI
23
May '11
The Rs 70000 crore cotton spinning industry, employing over 7 lakh workers and exporting nearly US$3 billion worth of yarn annually, has come to a grinding halt on Monday, 23rd May 2011, following a combined appeal from the Confederation of Indian Textile Industry (CITI) and several associations of cotton spinners for a one-day closure of mills to highlight the current problems of the sector.

Shri Shishir Jaipuria, Chairman, CITI said that the closure was complete all over the country from Punjab and Uttarakhand in the North to Tamil Nadu and Andhra Pradesh in the South. He added that the mills will also be idling one third of their capacities from 24th May onwards.

Shri Jaipuria stated that a virtual ban on exports of cotton yarn during over two months in the last quarter and a declining trend in domestic demand had resulted in a huge unsold stock of cotton yarn with the spinning mills all over the country. When exports were allowed from April 2011, the accumulated stock caused a crash of cotton yarn prices in the global and domestic markets. Worse still, consumers started shying away from the markets, because of their perception that prices would decline further since mills are flush with stocks and have to unload them at any cost.

“With a share of over 25 percent in world markets, Indian supplies are crucial to global prices of cotton yarn. Discontinuation of Indian exports had pushed up prices in the global markets to unprecedented levels during last quarter and over supplies from India have led to the crash of global prices from April 2011” said Shri Shishir Jaipuria. Since domestic demand remains lackluster, cotton yarn producers are finding it extremely difficult to dispose of the accumulated stocks. The curtailing of production through full closure on 23rd May and one third closure from 24th May 2011 is expected to help in reducing stocks to some extent, he added.

Shri Jaipuria stated that the excise duty of 10.3 percent imposed on the garment industry in this year's Budget and the recent legal action against hundreds of dyeing units in Tirupur have created serious problems for the garment industry of the country and this in turn is also affecting consumption of both yarn and fabrics. He hoped that the excise duty would be withdrawn and an immediate solution would be found for restoring the dyeing units of Tirupur, in the interest of the entire textile value chain of the country.

Stating that a combined representation has been sent to the concerned Ministers by all the textile associations that have called for the production cuts, Shri Shishir Jaipuria said that restoration of draw back facility on cotton yarn exports is the most important step that government can now take to ease the crisis in the spinning industry. He thanked the industry for its positive and spontaneous response to the call for curtailing of production and observed that irrespective of size and location, all spinning mills in the country have participated in the closure today.

Confederation of Indian Textile Industry (CITI)


Must ReadView All

Textiles | On 24th Jun 2017

Applied DNA to tag cotton for 2017/18 US ginning season

Applied DNA, provider of DNA-based supply chain security,...

Apparel/Garments | On 24th Jun 2017

NPD Group launches Trend Tracker for apparel trends

Global information company the NPD Group has launched Trend Tracker,...

Textiles | On 24th Jun 2017

Cotton USA’s first innovation competition in UK ends

Cotton USA has announced the successful close to its first innovation ...

Interviews View All

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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

news category


Related Categories:
June 2017

June 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search