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Spinning mills in Andhra Pradesh, facing grave financial crises, have decided to go on 'production holiday one day in a week’ from Monday. The decision was taken last week-end at Guntur by the AP Spinning Mills Association.
There are 120 spinning mills in the State. According to L Raghurama Reddy, Chairman of the association, a number of factors have led to the crisis. “Yarn exports to China have almost stopped due to China-US trade face-off and among domestic mills there is increasing competition. The rising input costs, especially cotton, and the market slump have forced us to stop the mills one day a week from Monday, till the conditions improve, he said.
He said the MSP of cotton had gone up by 25 per cent in recent times. “Further, the Cotton Corporation of India is keeping huge stocks and creating an artificial demand in the market. To make matters worse, the previous TDP government in the State had not released industrial incentives to the extent of ₹1,200 crore to the mills. Therefore, we have no choice but to effect production cut.” He added the spinning mills at Tirupur in Tamil Nadu and elsewhere in the country are also facing the same crisis and were also forced to do the same.
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