South India Spinners Association issues press release to clear rumours regarding carteling yarn prices
Coimbatore: A press release was issued by the South India Spinners Association to clarify the ongoing rumours about hoarding yarn and carteling the prices.
The release stated, "We are an association representing the interests of the Spinning Mills primarily in the MSME sector. The textile industry provides large employment next only to the agricultural sector in our country. The majority of our units are located in rural areas and we predominantly provide job opportunities to uneducated and unskilled women. Fake or unrealistic reports are being fabricated and projected by the Apparel Export Promotion Council (AEPC) in Tirupur that the spinning mills are holding the yarn and carteling the prices."
"In reality, major centres like Mumbai, Bhiwandi, Ichalkaranji, Malegaon, Surat, Kolkata, Erode etc are unable to procure yarn as demand is very poor. All spinning mills associations have informed the AEPC for their yarn requirements, and till today we have not received any response. This is the current scenario which we would like to bring to your kind attention. We request the Government to liquidate our stock or facilitate us to liquidate all our yarn stocks.
The yarn prices have been reduced about Rs. 40 to Rs. 50 per kg for all counts in the month of April 2021. But due to multiple factors there are no buyers and stocks are piling up in the mills for the last 20 days. Spinning Mills are in a very grim situation about the future as mills are unable to sell cotton yarn, polyester cotton yarn, polyester viscose yarn and polyester yarn of all counts," stated the release.
Here are the real data:
In September 2020: Cotton Price in Rs./ Candy was at Rs 38,400, 40’s Yarn Price in Rs./ Kg Rs 193 and in 60’s Yarn Price in Rs./ Kg Rs 210.
In October 2020: Cotton Price in Rs./ Candy was at Rs 38,900, 40’s Yarn Price in Rs./ Kg Rs 190 and in 60’s Yarn Price in Rs./ Kg Rs 215.
In November 2020: Cotton Price in Rs./ Candy was at Rs 42,300, 40’s Yarn Price in Rs./ Kg Rs 199 and in 60’s Yarn Price in Rs./ Kg Rs 223.
In December 2020: Cotton Price in Rs./ Candy was at Rs 43,600, 40’s Yarn Price in Rs./ Kg Rs 215 and in 60’s Yarn Price in Rs./ Kg Rs 248.
In January 2021: Cotton Price in Rs./ Candy was at Rs 45,200, 40’s Yarn Price in Rs./ Kg Rs 250 and in 60’s Yarn Price in Rs./ Kg Rs 277.
In February 2021: Cotton Price in Rs./ Candy was at Rs 46,800, 40’s Yarn Price in Rs./ Kg Rs 260 and in 60’s Yarn Price in Rs./ Kg Rs 269
In March 2021: Cotton Price in Rs./ Candy was at Rs 46,900, 40’s Yarn Price in Rs./ Kg Rs 270 and in 60’s Yarn Price in Rs./ Kg Rs 276.
In April 2021: Cotton Price in Rs./ Candy was at Rs 50,000, 40’s Yarn Price in Rs./ Kg Rs 220 and in 60’s Yarn Price in Rs./ Kg Rs 228.
"The data has been taken from 400 MSME Spinning Mills and from the above tabular column represents today’s mills situation which is self-explanatory. South Indian mills are running only at 50 to 60 percent utilization, cost of packing material, spares, transport, labour, diesel etc has increased, making the cost of production higher. Most of the mills are already in some huge financial crisis for the past 10 years and still not out of debts.
We request the MSME textile industry to refrain from false propaganda which has been circulating for unknown reasons. We also assure you that our Association will cooperate with the government to any extent for the betterment of the industry without any self interest," reiterated the press release.
The release stated, "We are an association representing the interests of the Spinning Mills primarily in the MSME sector. The textile industry provides large employment next only to the agricultural sector in our country. The majority of our units are located in rural areas and we predominantly provide job opportunities to uneducated and unskilled women. Fake or unrealistic reports are being fabricated and projected by the Apparel Export Promotion Council (AEPC) in Tirupur that the spinning mills are holding the yarn and carteling the prices."
"In reality, major centres like Mumbai, Bhiwandi, Ichalkaranji, Malegaon, Surat, Kolkata, Erode etc are unable to procure yarn as demand is very poor. All spinning mills associations have informed the AEPC for their yarn requirements, and till today we have not received any response. This is the current scenario which we would like to bring to your kind attention. We request the Government to liquidate our stock or facilitate us to liquidate all our yarn stocks.
The yarn prices have been reduced about Rs. 40 to Rs. 50 per kg for all counts in the month of April 2021. But due to multiple factors there are no buyers and stocks are piling up in the mills for the last 20 days. Spinning Mills are in a very grim situation about the future as mills are unable to sell cotton yarn, polyester cotton yarn, polyester viscose yarn and polyester yarn of all counts," stated the release.
Here are the real data:
In September 2020: Cotton Price in Rs./ Candy was at Rs 38,400, 40’s Yarn Price in Rs./ Kg Rs 193 and in 60’s Yarn Price in Rs./ Kg Rs 210.
In October 2020: Cotton Price in Rs./ Candy was at Rs 38,900, 40’s Yarn Price in Rs./ Kg Rs 190 and in 60’s Yarn Price in Rs./ Kg Rs 215.
In November 2020: Cotton Price in Rs./ Candy was at Rs 42,300, 40’s Yarn Price in Rs./ Kg Rs 199 and in 60’s Yarn Price in Rs./ Kg Rs 223.
In December 2020: Cotton Price in Rs./ Candy was at Rs 43,600, 40’s Yarn Price in Rs./ Kg Rs 215 and in 60’s Yarn Price in Rs./ Kg Rs 248.
In January 2021: Cotton Price in Rs./ Candy was at Rs 45,200, 40’s Yarn Price in Rs./ Kg Rs 250 and in 60’s Yarn Price in Rs./ Kg Rs 277.
In February 2021: Cotton Price in Rs./ Candy was at Rs 46,800, 40’s Yarn Price in Rs./ Kg Rs 260 and in 60’s Yarn Price in Rs./ Kg Rs 269
In March 2021: Cotton Price in Rs./ Candy was at Rs 46,900, 40’s Yarn Price in Rs./ Kg Rs 270 and in 60’s Yarn Price in Rs./ Kg Rs 276.
In April 2021: Cotton Price in Rs./ Candy was at Rs 50,000, 40’s Yarn Price in Rs./ Kg Rs 220 and in 60’s Yarn Price in Rs./ Kg Rs 228.
"The data has been taken from 400 MSME Spinning Mills and from the above tabular column represents today’s mills situation which is self-explanatory. South Indian mills are running only at 50 to 60 percent utilization, cost of packing material, spares, transport, labour, diesel etc has increased, making the cost of production higher. Most of the mills are already in some huge financial crisis for the past 10 years and still not out of debts.
We request the MSME textile industry to refrain from false propaganda which has been circulating for unknown reasons. We also assure you that our Association will cooperate with the government to any extent for the betterment of the industry without any self interest," reiterated the press release.