Rising prices have compelled yarn manufacturers in Gujarat to curtail cotton procurement by atleast 15 per cent in the last few 40 days, says, Bharat Boghara, Chairman, Gujarat Spinners Association (AGSA). Cotton procurement in the state has declined to 5.3 lakh bales a month from the earlier 6.2 lakh bales. This will ease cost pressures on yarn makers, as realizations is not in tandem with the increase in cotton prices, adds Saurin Parikh President, AGSA.

AGSA members also plan to shut production for one day a week and stop procurement of cotton to ease cost pressures. Recently they urged the government to revoke the 10 per cent basic customs duty o cotton imports. AGSA has also sought a temporary ban on the cotton trade on Indian multi-commodity exchanges, as hedging by speculators in cotton is causing an artificial price increase, adds Parikh Yarn makers in the country are presently clocking losses of Rs 40 per kg of yarn manufactured.