Textile spinning mills in North India are planning to cut down production and shut down their mills once a week to manage the excess spinning capacity and poor demand for yarn. As per the Northern India Textile Mill’s Association (NITMA), China which has been a major importer of Indian yarns for the past few years, has cut-down imports in the past few months, thus worsening the situation, leading to accumulation of yarn stocks in Indian spinning mills. The spinning industry is under crisis and the situation is moving from bad to worse and spinners are making losses. Industry is therefore considering various options to reduce daily production, including closing the plant for one day in a week or more. Some textile units are considering of lowering the capacity to even 50 per cent in the wake of unsafe market situation and to have less borrowing / outstandings and stocks.

Textile industry is also criticising on the MSP being above than prevailing global prices by 25 per cent approximately. As a concluding remark, this downward trend might continue for next 3-4 months with slack demand & market situation will improve as soon as demand & supply balance gets restored.