About 500 mills affiliated to South India Spinners Association (SISPA) have decided not to sell or deliver yarns for one week from third week of this month to avoid the traders from creating a situation to source yarn at lower prices.
SISPA president, C Varatharajan told newsmen in Combatore that the decision which is applicable only for this month, was taken at an emergency meeting to discuss the crisis facing the entire textiles industry.
Varatharajan accused some yarn traders of taking undue advantage by quoting less prices for certain varieties of yarns, triggering a panic situation to source yarns at lower prices which affected mills’ revenues.
Additionally, all member mills have agreed to a one-day production stoppage, to force the centre and state governments to take notice of the difficulties faced by industry and to extend appropriate support through policy decisions to the textile industry.
The SISPA president said there is a need for change in functioning of Cotton Corporation of India (CCI). He claimed the CCI is now functioning with a profit motive, supplying cotton to large traders and middlemen while depriving mills of getting materials at fair prices.
