1. The spinning sector is an important part of the textile value chain and is the most capitalization-intensive industry after agriculture.
2. It plays an important role in providing employment opportunities in rural areas for women and migrant workers.
3. Spinning serves as the core industry of the entire textile industry, therefore it is the core industry that functions across the value chain.
4. Due to the global economic slowdown, yarn and fabric exports are declining, as a result of which exporters are selling their surplus yarn in the domestic market.
5. The excess supply of yarn has created a mismatch of demand and supply, due to which the spinning mills are forced to sell their products at very low prices.
6. As a result, spinning mills are suffering economic losses and are operating at low utilization as profitability has come down.
7. Also, traders are not tempted to buy yarn from Tamil Nadu factories due to very low prices for importing yarn and fabric from countries like China, Vietnam and Bangladesh.
8. Factories are finding it difficult to meet monthly financial concepts, complying with legal restrictions such as payment of loan to bank lenders, payment of interest, electricity charges, worker wages, payment of GST and eligibility norms Used to be.
9. Due to these adverse factors, there has been huge cash loss, in which the price of yarn has come down by about Rs.20 to 25 per kg.
10. To mitigate the crisis, factory owners have taken a tough decision, they have decided to run their factories only at 50% capacity.
11. Also, the general increase in interest rates in banks from 7.75% to 10.75%, increases the burden on the spinning mills.
12. The recent Tamil Nadu power tariff hike has increased the production cost by Rs 6 per kg of yarn.
13. Other factors driving higher production costs include inflation, machinery expenses, electricity prices, labor migration, and other indirect costs.
14. The ongoing conflict between Ukraine and Russia has also impacted production costs, adding to the strategic challenges of Pivot factories and their inability to service bank loans.
15. In light of these critical circumstances, a humble request is made that the Government of India may take necessary steps to safeguard and support the security of the Axis region.
It is clear from the above points that the spindle factories in Tamil Nadu are facing difficult conditions, which clearly shows the urgency of government intervention, to protect the industry and protect the jobs of countless workers.
Regards
Team Sis
Any query plz call 9111677775
https://wa.me/919111677775
