Textile mills across the country cut down a third of their production on Tuesday as yarn stocks were increasing and prices going down. The mills had closed for a day on Monday to draw the government's attention to the problems faced by the spinning sector.
Southern India Mills' Association chairman J. Thulasidharan told The Hindu that yarn price decline was arrested on Tuesday and the industry expected the market to revive soon. The prices started coming down about 50 days ago and the mills feared that any further drop in prices would make their operation unviable.
In Tamil Nadu, the mills had reduced production because of the power problem. They face peak-hour restrictions on power consumption, three hours' load shedding and unscheduled disruptions everyday.
The units also stopped the generators on Tuesday.
Some mills cut one shift and many of the small-scale mills were functioning for just 12 hours a day (one-and-a-half shift).
“The mills agreed to these measures voluntarily and almost all units have cut down production,” Mr. Thulasidharan said. The spinning units were having more than 45 days' stock of yarn as the market had crashed and prices dropped.
The textile mill associations will review the situation in the first week of June and decide on the future course of action.
The industry representatives plan to meet Chief Minister Jayalalithaa and Union Textiles Minister Dayanidhi Maran to explain the problems faced by the spinning sector.
