Business

TASMA Urges Mills To Stop Buying Cotton Till Normal Prices Established

Tamil Nadu Spinning Mills Association (TASMA) has advised its members to stop buying cotton until prices soften to the original levels. It also appealed to the mills to fulfil existing orders for yarn with the available stocks of cotton. TASMA chief advisor Dr. K. Venkatachalam said spinners are faced with dwindling demand, as the other value chains like readymade garments and home textiles are facing problems due to various reasons beyond their control. He advised the member mills to think over the situation very strongly and decide to stop the entire production unless the cotton prices are brought down to comfortable and normal levels. Even when normalcy is achieved, as a long term measure, mills must provide one day weekly holiday necessarily, he advised. “With this stoppage of production for 52 days in a year, cotton consumption and the resultant yarn supply to the market can be reduced to the extent of 7%, which may automatically increase the demand and the price of cotton yarn,” he added. The association also urged the Union government to withdraw the import duty on cotton or extend the date till March 31, 2022 and delist the cotton from trading at MCX and CCI.