Small-scale spinning mills in Coimbatore stop production

Several small-scale spinning mills stopped production on Monday, protesting the steep hike in cotton prices in the last few months.

The Southern India Spinners Association had announced that its member mills would stop procurement of cotton and operation of units till cotton prices reduced.

The mills, located across the State, including Coimbatore, Erode, Salem, and Madurai districts, had on an average 8,000 to 10,000 spindles each. These mills had reduced cotton procurement for the last one month because of high prices of raw material. Those that had cotton stock would continue to operate till the stocks last and the others stopped production on Monday, said sources in the Association.

According to the Association, while cotton prices had increased over 50 % in the last five months, the hike in yarn prices were just over 20 %. The units were struggling to meet fixed expenses such as payment of electricity charges, buy cotton at high prices, and run the units. Hence, it was decided to stop production and procurement of cotton.

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Printable version | May 23, 2022 9:01:15 pm |