Production Cut By Textile Mills To Continue.

The one-third production cut by spinning mills in the country, which began on May 24, 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 it was found that there was some stock reduction at the national level. It is, however, not very significant, sources in apex body of textile mills in Southern parts of the country SIMA said.

Southern India Mills'' Association (SIMA) held discussion with the Confederation of Indian Textile Industry, which had called for a day long closure of textile mills along with 1/3rd production cut, and decided to continue production cut for another fifteen days, sources said.

Approximately 30 to 40 million kgs of 500 million kg of stocks would have been reduced during this period. Moreover, the period was very lean and there was no point in producing more yarn, unless there was good export or domestic industry demand, they said.

Source : indiaeveryday.in