An emergency meeting of the Small and micro Spinning Mill Owners' Association has decided that all mills will be temporarily closed as small and micro spinning mills are unable to function due to rising cotton prices.
Coimbatore: Cotton prices are facing an all-time high. The price of a 356 kg candy cane has increased to Rs.15 lakh today.
In the present scenario, small and micro spinning mills in Tamil Nadu have been rendered inoperable. Therefore, it has been decided at the emergency meeting of the Small and micro Spinning Mill Owners' Association in Coimbatore this evening that it will stop buying cotton and close all the mills temporarily once the existing cotton is exhausted.
Jagadeesan, Honorary Secretary, SISPA, South Indian Spinners' Association said: Cotton prices continue to rise at an unprecedented rate. The central government has completely eliminated the import tax. Cotton booked abroad, however, takes two months to arrive in India. Today the price of a 356 kg candy cotton has increased to one lakh 15 thousand rupees.
This price hike will not be tolerated by the small, small spinning mill management. So the emergency meeting of our association took place in Coimbatore this evening. It has been decided that not all small and medium spinning mills will buy cotton considering the current crisis situation. Similarly, 1,000 spinning mills in Tamil Nadu belong to the small and micro sector. It has therefore been unanimously decided to close them all temporarily.