Around 90 textile spinning mills, located in Tamil Nadu, will reduce their production of synthetic yarn by shutting down their units for two-days-a-week beginning tomorrow, according to media reports.
The decision to stop production on weekends was taken earlier this week at a meeting of Synthetic Spinners’ Group, Indian Texpreneurs’ Federation. Increase in import of synthetic yarn in recent months has led to poor off-take, resulting in stockpiling of yarn and accompanied losses. Yarn stocks have increased with these spinning mills from the usual 7-20 days to 40-60 days.
The closure of production during the weekends would result in a 25-30 per cent dip in output, and thereby Federation members hope to reverse the continuing fall in prices and also reduce their stockpile. About 40 lakh of the total 2 crore spindles in Tamil Nadu produce 40,000 tonnes of blended yarn per month.
India’s synthetic yarn imports have risen from less than 5,000 tons in February 2015 to more than 6,000 tons in April this year.
