The Northern India Textile Mills Association (NITMA) has highlighted the worst financial crisis and slowdown faced by the textile industry through an advertisement in the Indian Express Newspaper. According to the advertisement, the crisis is forcing spinning companies to cut down their production and shut down their mills. This is likely to result in job losses and add to the already high unemployment rate in the country.
A recent article by the digital news website thelogicalindian.com also highlighted a February report by the International Cotton Advisory Committee (ICAC) that indicated that India’s cotton production is set to drop by 7 per cent due to ‘insufficient rainfall’. To counter this, textile spinning mills in North India are planning to cut down on their production and shut down their mills once a week.
Some textile units are also planning to lower their capacity by 50 per cent in the wake of the unsafe market situation and to have less borrowing/outstanding and stocks.
