Close to 100 textile mills that make synthetic yarn in Tamil Nadu stopped production on Saturday (July 18), as part of the decision taken at a meeting of the synthetic spinners group of Indian Texpreneurs Federation (ITF) in Coimbatore last week, according to media reports.
The move follows the decision by the ITF synthetic spinners's group's decision to shut their units during the weekend following the sharp fall in yarn prices. This was the first weekend the mills were closed following the decision.
Nearly 17 lakh spindles had stopped production. The two-day shutdown over the weekend is estimated to have cut down the supply of 17 lakh kg of yarn to the market.
Since the mills have huge stock and prices of synthetic yarn have declined, the mills are finding it unviable to continue operations. The mills are hoping that the two-day stoppages will be able to reverse the continuing fall in prices, the reports said.
Prices of 56's count polyester cotton yarn, which was ruling at Rs190 per kg (ex-mill), is now being quoted at around Rs158 per kg.
