Southern India Mills Association (SIMA) termed as ‘totally misleading and baseless’ the call for a one day strike by knitwear, garment and powerloom manufacturers associations on November 19,demanding a ban on cotton yarn exports due to yarn scarcity. SIMA said mills are ready to supply any quantity and any count.
‘Spinning mills are ready to supply any quantity of yarn in any count subject to the payment terms and market prices,’ SIMA chairman, J Thulasidharan said in a statement here.
Of the 3,640 million kg of supply, with the opening stock of 85 million kg and import of five million kg cotton yarn, 2,650 million kgs have been allotted for the domestic sector as against 2,495 million kgs consumed last year, he said.
For 2010-11, 913 million kg have been earmarked for the powerloom sector as against 816 million kg and 973 million kg for the hosiery sector as against 921 million kg consumed last year, Mr Thulasidharan said.
The main issue of the downstream sector was only yarn price, which has increased as a result of over 50 per cent increase in cotton prices during the last two months due to government policies, he said.
Cotton prices have started coming down due to more arrivals of cotton, both in international and domestic markets, he said and expressed hope that the prices would stabilise soon, which would bring down yarn prices considerably.