High cotton prices, Russia-Ukraine war and dwindling demand from the apparel industry have hit the Indian spinning industry hard with many cotton yarn mills across the country planning to cease production.

Already, many mills have stopped working for two days in a week. Additionally, many mills have discontinued their second shifts also in the remaining five days.

Tamilnadu Spinning Mills Association (TASMA) has also sent an advisory to its members to stop production. All member mills of the association are voicing their concerns over the recent losses due to dwindling demand amid rising cotton prices and poor marketing of yarn.

However, many mills continue to run their mills as usual, even with high losses.

Besides Tamil Nadu, spinners in Gujarat are also facing the hit.

The industry has been repeatedly representing the Government to completely withdraw the import duty on cotton imports or at least to extend the withdrawal up to 31 March 2023, but the exemption is available only up to 31 October 2022.