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THE TEXTILE MAGAZINE
AUGUST 2011
The spinning industry of the coun-
try, which had a stock of more than
500 million kg of cotton yarn follow-
ing last year’s restrictions on exports,
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cotton yarn stock position.
In a press release, Mr. Shishir Jaipu-
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that from May 23 onwards spinning
mills all over the country had resorted
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rently 25-30 per cent of capacity for
cotton yarn production in the country
is lying idle.
Meanwhile, restrictions on cotton
yarn exports have been lifted by the
Government and the current exports
are comparable with those of the
same period last year. There has also
been some positive movement in do-
mestic demand for cotton yarn and
the trend is expected to continue.
Mr. Jaipuria explained that from a
peak level of 500 million kg, cotton
yarn stocks with mills have now come
down to around 350 million kg and
are expected to come down further
in the coming months. The festival
season in the country starting from
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provement in demand for all textile
products which will help the spinning
sector in disposing of the accumu-
lated stocks of cotton yarn.
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Government relief package for the
spinning industry in order to tackle
the losses suffered by it in recent
months because of restrictions on
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cotton and cotton yarn prices and ac-
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and yarn.
Mr. Jaipuria has stated that with the
Cotton yarn situation eases
improvement in demand, the spin-
ning industry is expected to come out
of its present crisis during the second
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in the coming months because of the
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two-year moratorium on repayment
of loans and interest and a few other
facilities from the Reserve Bank of
India, in order to avoid the accounts
becoming non-performing assets.
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that the current challenges can be met
with the reliefs sought from the Gov-
ernment and RBI. It can also revive
its operations in full during the com-
ing months and avoid retrenchment
of workers.
Mr. SHISHIR JAIPURIA
Chairman, CITI
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