India Textile Industry Will Reduce Production Indefinitely

However, Dr Selvaraju, Secretary General of the SIMA, said: "the reduction is not only two weeks, but the indefinite period until the stock returns to normal."

The situation is very bad.

"Domestic demand and export demand have not returned to normal levels," he said.

Domestic consumption, usually about 210 million kilograms, is now about 150 million kilograms.

The reduction is almost 60 million kilograms, mainly due to pollution in the area of Rupp and ERODE. "

He added: "according to the current production of gas, the yarn export should be 100 million kilograms, and now about 5000-5500 kilograms, mainly because of 2-3 months' stop exports."

"The market is very light.

Many countries and buyers are reluctant to sign contracts with India yarn manufacturers.

Domestic buyers also put forward many payment terms.

All spinning mills have high cost cotton stocks.

During the peak season, cotton prices were about 63000 rupees / candy (356 kg), and then fell by 33%.

"Because of these factors, the government has increased the export quota from 5 million 500 thousand to 6 million 500 thousand packets (170 kilograms), which will lead to a shortage of cotton.

According to the previous assessment, the final inventory is 2 million 750 thousand packs, which means that the inventory to consumption ratio is only about 10%, while in China and other countries, the inventory to consumption ratio is about 40-50%.

"The government has recently decided to increase the export volume of 1 million packages, so hundreds of spinning factories will be forced to close in August, September and October until they get the new cotton.

The government decided to increase the export volume of 1 million packages, because it is expected that the output of cotton will reach 33 million 900 thousand packages.

However, after the recent Cotton Advisory Committee's collection of state conditions, the estimate shows that the output is 30 million 900 thousand bales.

He concluded: "Cotton Traders today have about 1 million 500 thousand bales of cotton, and they plan to export them, not to sell them to the domestic spinning mills.

The farmers have sold out their cotton, and now only cotton merchants have cotton in their hands.

Therefore, expanding export policy will not benefit a farmer. "