Small scale spinning mills decides to stop buying cotton
2022-05-25 13:26:41
Small scale spinning mills decides to stop buying cotton
The constant increasing prices of cotton are leaving its impact on every sector. The small sized spinning mills deny buying cotton to make yarn for weaving purpose. They announce to close their operations until the price drops to a considerable level.
They also accused the big traders and MNCs of hoarding and speculation even in the time of crop crisis.
Cotton prices increases to more than 120% in a year and is costing 1.10 lakh per candy currently. Smaller spinning units whose turnover is less than Rs 50 Cr find it extremely difficult to afford the crop at current rates.
South India Spinning Association (SISPA), president, J Selvan, asserts that they are lacking of working capital to purchase cotton. As the cotton prices increased to 53% since January, we could raise the price of yarn merely by 21%, he added.
Jagdish Chandran, secretary of SISPA alleged that big trading firms and large MNCs had stocked much of the cotton at the start of season and now increasing rates on almost regular basis.
The end user that is the customer is no exception in getting affected by such soaring prices. They are spending 7-10% more for their casual summer apparels and will approximately pay 15-20% higher in the festive season.
