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In the wake of a sharp drop in cotton yarn prices and piling up of inventories, spinning mills across the country plan to close down shutters for a day on May 23 and cut back production by a third from the following day onwards.
The measures, industry players said, have been proposed to ensure a reasonable price and boost the sagging demand for the cotton yarn.
At a meeting of major textile associations of the country organised by the Confederation of Indian Textile Industry (CITI) here on Wednesday, it was also decided that a review meeting of the stakeholders will be called in the first week of June.
The industry players would take stock of the price and demand position and to chalk out further action at this meeting.
Blaming the “short-sighted” Government policies with regard to both cotton and cotton yarn, the leaders of various industry associations have sent a combined representation to the Textile Minister, Commerce Minister and senior officials in the ministries of Textiles, Commerce and Finance.
Briefing the press today here along with heads of other textile associations, Mr Shishir Jaipuria, Chairman, CITI, said the industry has sought the restoration of the drawback facility on export of cotton yarn and the DEPB benefits on export of cotton yarn, which were withdrawn last year.
They have also asked the Government to withdraw the excise duty imposed on garments to perk up consumer demand.
Besides, industry players have asked for a firm announcement by the Government that no restrictions would be placed on export of cotton yarn in the future.
“This will also help in resuming investments in the production of cotton yarn,” Mr Jaipuria said.
The provision for a two per cent interest subvention for all textile and clothing products and a one year moratorium for repayment of loans and interest are among the other demands.
The industry associations have also sought the Government's support in addressing the pollution issues in various dyeing clusters, particularly Tirupur and other places in Tamil Nadu, so that the domestic garment industry can work in full capacity.
According to Cotton Advisory Board estimates, the country's cotton production is projected at 31.2 million bales (176 kg) this year, while exports were capped at 5.5 million bales.
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