Indian spinning industry set to incur huge losses

Indian spinning sector is set to incur huge losses of about 164 million US dollars.

The one day closure on May 23rd by the Indian spinning sector has resulted in a loss of Rupees 200 crores (45 million US dollars). In addition, the planned production reduction for the next 7 days is expected result in a loss of Rupees 75 crores per day (17 million US dollars/day).

In speaking to this scribe from India at 11.30PM CST on May 24th, Mr. D. K. Nair, Secretary General of the Confederation of Indian Textile Industry (CITI) provided the economic loss figures and briefed that the CITI will appraise the situation during the first week in June for any further action.

In a statement, Mr. Shirshir Jaipuria, Chairman of CITI has informed that the one-day strike on Monday, May 23rd has been observed throughout India. The strike was led by CITI and all major spinning associations in India participated to highlight the current crisis situation in the spinning sector due to the restrictions imposed on cotton yarn exports by the Government of India. The restrictions were withdrawn effective April 1st, 2011.