Spinning mills in Andhra Pradesh are facing severe labour shortage as many migrant workers have gone back due to mill closures during lockdown. According to Spinning Mills Association sources, spinning mills in the state engage around 3,000 workers in three shifts. Currently, the state has 72 spinning mills that employ over one lakh workers. Workers who migrated to their native places during the pandemic have not returned. As a result, these mills are facing 30 percent labor shortage resulting in reduced production.

Mills in the state that earlier produced yarn worth Rs30 crore a day now produce only Rs15 crore per day of yarn. Also, cotton yarns are not been exported due to COVID-19. Earlier, most of these spinning mills worked three shifts, now they work in only two shifts.

The revenues of these mills have also gone down due to cut in production. As a result, owners are not in a position to pay loan installments in time resulting rise in NPAs from 25 percent to 80percent.