The Hindu Business Line : TN spinning mills seek bailout package

Coimbatore, Feb. 6 If the Central and State Governments do not come out with a rescue package to bale out the spinning mills, these mills would face closure from March, according to India Spinning Millowners Association (ISMA), Coimbatore.

It also suggested that the farmers in Thanjavur, the rice bowl of Tamil Nadu, be encouraged to take up cotton cultivation during seasons when surface flow is not available without affecting the area under paddy.

Speaking to pressmen here today, Mr A.R. Chinnaiyan, President, ISMA, said over the past one year, the mills had to cut down on working hours due to non-availability of cotton at economical rates and some units had even closed down.

According to the Central Government, the cotton production in the country this year was around 310 lakh bales as against the domestic requirement of 175 lakh bales. This has made the government permit export of cotton. But there is shortage in cotton availability even during the cotton crop season.

He said despite the unprecedented yield this year, domestic spinning mills were not able to get cotton at reasonable price. But at the same time, yarn prices have declined because of dumping of imported clothes that has brought down the demand for locally made clothes. This has created a crisis situation not only for the spinning but also for the powerloom and handloom sectors. He wanted that only surplus cotton should be exported. Mr Chinnaiyan said in Thanjavur district, paddy was cultivated using the Cauvery water in about 20 lakh acres and when there was no surface flow, these lands were not cultivated. During such seasons, without affecting paddy cultivation, cotton could be cultivated by using water from irrigation wells.

As an alternate crop is grown, the subsequent paddy season would give higher yield, he said, and wanted the agriculture department to create awareness among the farmers.

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