The South India Spinners Association (SISPA) has requested Prime Minister to facilitate the liquation of their yarn stock or extend help to fully dispose the stocks, since there have been no buyers for the last 20 days. N Murugesan, President, SISPA stated the yarn prices have been reduced about Rs 40 to Rs 50 per kg for all counts in April as there were no buyers and stocks had been piling up for the last 20 days.
Major centres like Mumbai, Biwandi, Ichalkaranji, Malegaon, Surat, Kolkata and Erode were unable to procure yarn as demand was very poor, he said. As per SISPA, there are around 400 mills in South Mills that are running at only 50 to 60 per cent utilization. The cost of packing material, spares, transport, labour and diesel has increased, making the cost of production higher.
Most of these mills are located in the rural areas and predominantly provide job opportunities to uneducated and unskilled women. They are in huge financial crisis and need to be rescued from debts, Murugesan added.
