Cotton Spinning Mills Suffer Due To Dip In Exports

Industry news

Cotton Spinning Mills Suffer Due To Dip In Exports

The piling of stock due to the non-operation of inter-state lorries following violence in Karnataka over the Cauvery water row has hit the cotton spinning mills at Pallipalayam town and surrounding areas. The suspension of lorry service to Karnataka for the past about four weeks has affected the transportation of cotton and yarn from the cotton mills of Pallipalayam.

The about 50 and odd cotton spinning mills in Pallipalayam have already been suffering heavy loss due to steep fall in export. They were managing with marketing of cotton and yarn to north Indian states. Due to this, each mill is suffering a whopping loss of Rs 2.5 lakh per day, according to the mill sources.

These mills have so far suffered a loss of more than Rs 25 crore. The continuation of the situation will force the mills to declare holidays regularly, which in turn will only hit the hapless workforce, the sources said. Any further loss will only force the mills to deny Deepavali bonus to the workers.

The state governments of Andhra Pradesh and Karnataka have been providing power to the spinning mills at a tariff of Rs 2 per unit. The Government of Maharashtra is providing power at a very low rate, besides various concessions. But, the cotton spinning mills are not enjoying any such concession in Tamil Nadu, they complain.