Spinning mills in Andhra Pradesh are cutting down their yarn production of. Reason: a decline in exports and rising production costs. China has been a major importer of cotton for several years but during the last two years China has been gradually lowering its imports from India. Domestic demand has also slackened due to stiff competition. So mills have no option other than to reduce production.

There are over 120 spinning mills in the state. Yet another factor is the increase of minimum support price offered to farmers. In an effort to bail out cotton farmers, the support price has been raised by 25 per cent. As a result, millers are forced to buy cotton at a much higher rate. Finally, the delay in the release of power subsidies has forced some millers to shut down. Millers hope the power subsidies are released soon.

Indian yarn is known around the world for its fine quality and is preferred by European and American retailers. The US-China trade war has come in the way of export of Indian yarn and, with the US placing curbs on production in China, domestic spinning mills have started to feel the pinch.