Production cut to continue for another fortnight

The one-third production cut currently being followed by the spinning mills in the country is likely to continue for another fortnight, even as there is slight improvement in yarn take off.

After taking stock of the situation of the week-long production cut, which began on May 24, it was found that there was some stock reduction at national level, but not that significant,sources in Southern India Mills Association, apex body of textile mills in Southern parts of the country, said.

SIMA held discussion with the Confederation of Indian Textile Industry,which had given a call for one-day closure of textile mills and one-third production cut,and decided to continue production cut for another fifteen days, sources said.

Approximately 30 to 40 million kg of 500 million kg of stocks would have been reduced during this period, they said.

Moreover, the period was very lean and there was no point in producing more yarn, unless there was good export demand or domestic industry, they said.