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Related Keywords: account forty six percent of total installed spinning capacity, CAB, capacity of up to twenty five thousand spindles, educed production by about fifteen to twenty percent, losses continue to mount, sharp rise in cotton prices, SIMA, small and medium textile mills in Tamil Nadu, Tamil Nadu textile mills

Following the sharp rise in cotton prices, small and medium textile mills in Tamil Nadu (TN) with a capacity of up to 25,000 spindles have reduced production by about 15%-20% since the beginning of the month as losses continue to mount. Tamil Nadu textile mills account for about 46% of the total installed spinning capacity in the country.

Mills are losing about Rs 15 per kg on yarn. This has come even after two rounds of price increases by mills that resulted in yarn prices going up about Rs 20 per kg since April.

Related Keywords: decline in export orders, Delhi and Tirupur, drop in yarn prices, exploring new markets and products, Indian Texpreneurs Federation, Ludhiana, polyester or polyester cotton yarn makers, sample orders from buyers, stop production, study the customer demand, Tamil Nadu textile mills

Tamil Nadu textile mills that make polyester or polyester cotton yarn having forced to stop production for two days a week for four weeks as prices for the yarn had dropped and the mills were find the price unviable and with export orders too declining have started exploring new markets and products, said Prabhu Dhamodharan, secretary of Indian Texpreneurs Federation.

Further, some mills have taken sample orders from buyers in Ludhiana, Delhi and Tirupur. They plan to study the customer demand, explore new markets and products, he said.

Related Keywords: compact yarn used for shirt material, demand for compact yarn increasing, demand for fabric made from compact yarn, going for compact spinning machinery, gone for bulk production, handful of spinning mills, machinery and attachments, now used in hosiery units, prefer to add retrofits, Tamil Nadu textile mills, to increase globally

Earlier, compact yarn was used by companies making shirt material but now hosiery units use compact yarn. It is a value-added product and in the comings years, its demand is expected to go up. It is estimated that in the next seven to eight years, about 30 percent of the yarn produced will be compact yarn.

With the demand for compact yarn increasing gradually and textile mills in the Southern region are going in for compact spinning machinery and attachments, according to industry sources.

Related Keywords: cotton bales, importing cotton from Gujarat, Indian National Ship Owners Association, reduce cost of transportation, revised rate for transportation, SIMA, Tamil Nadu textile mills, use shipping route

Textile mills in the State of Tamil Nadu to reduce the cost of transportation for importing cotton from Gujarat have started to use the shipping route, instead of road. The volume this year increased to 2,600 containers till January as against 1,200 containers of cotton transported by sea last year from Gujarat to Tamil. It is expected to touch about 4,400 containers by the end of this month.