To mitigate the crisis being faced by spinning sector, Southern India Mills’ Association (SIMA), apex body of spinners in this region, has convened a meeting of its member mills on August eight.
The predominantly cotton based textile industry has been facing several challenges in the recent period owing to higher tariff rates imposed on Indian textile products in all the major international markets when compared to the competing Nations, Sima Chairman, T Rajkumar said.
Undue delay in disbursing the Technology Upgradation Fund scheme subsidies, volatility and uncertainty in cotton prices, sudden glut in the synthetic yarn market, closure of dyeing units in Northern States resulting in accumulation of fabric stock in different power loom clusters added to the crisis of the sector, he claimed.
At present, the spinning sector is having 10 per cent excess capacity, due to poor demand for yarn exports though there are improvements in the recent months resulting in accumulation of yarn stock and liquidity problems, Rajkumar said.
Considering the situation, the association has convened the meeting of the managing directors of the member mills to discuss the issues and arrive at a solution to tide over the crises, he said.
