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SISPA requests PM to take steps to liquidate their yarn stock

·2-min read

Coimbatore, Apr 26 (PTI) The South India Spinners Association (SISPA) on Monday requested Prime Minister Narendra Modi to take steps to liquidate their yarn stock or extend help to fully dispose the stocks, since there have been no buyers for the last 20 days.

In a letter to Modi, a copy of which was also addressed to the Union Textile Minister, SISPA refuted reports,'whether fake or unrealistic', being fabricated and projected by the Apparel Export Promotion Council (AEPC) that the spinning mills have formed a cartel to hold the yarn and fix prices.

Stating that the yarn prices have been reduced about Rs 40 to Rs 50 per kg for all counts in April, SISPA President N Murugesan said that due to multiple factors there were no buyers and stocks had been piling up for the last 20 days.

In reality, major centres like Mumbai, Biwandi, Ichalkaranji, Malegaon, Surat, Kolkata and Erode were unable to procure yarn as demand was very poor, he said.

Though all the spinning mills associations had informed the AEPC of yarn requirements, there has been no response to date from the Council, he said 'The spinning mills are in a very grim situation regarding the future, as they are unable to sell cotton yarn, polyester cotton yarn, polyester viscose yarn and polyester yarn of all counts,' he said.

Being an association representing the interests of the spinning mills, primarily in the MSME sector, the mills are located in the rural areas and predominantly provide job opportunities to uneducated and unskilled women, he said.

Giving details of prices from September 2020 taken from 400 mills, SISPA said they are running at only 50 to 60 per cent utilization. The cost of packing material, spares, transport, labour and diesel has increased, making the cost of production higher.

'Most of the mills are in huge financial crisis for the past 10 years and are still not out of debt.

We request that the MSME textile industry be saved from false propaganda for unknown reasons,' Murugesan said. PTI NVM APR ADMINISTRATOR NVM APR ADMINISTRATOR