The Hindu : Tamil Nadu News : Spinning mills to stop production

Online edition of India's National Newspaper
Thursday, Feb 07, 2008
ePaper | Mobile/PDA Version

Tamil Nadu

Tamil Nadu

Spinning mills to stop production

Staff Reporter

UDUMALPET: Open end spinning mills, which produce low count yarn for curtains, shirts and knitwear, will stop production for four days starting Thursday urging the Government to put an end to power cuts and waive 4 per cent Value Added Tax on yarn and 3 per cent Central Sales Tax on Cotton. Worried over the spiralling costs of raw materials mainly cotton; sluggish movement of yarn for the past four months, the Open End Spinning Mills Association has apprehended that the situation would lead to closure of hundreds of mills in the State.

It president R.Thirumalaisamy and secretary K. Ashok said that the selling price of yarn in domestic market had not shown any progress for the four months pushing the mills in fund crunch. As there are no signs of improvement, the industry has decided to stop production for at least four days. They pointed out that the production costs had gone up due to unscheduled power cuts, which lasts for four to five hours a day. The association has accused the Government of inaction despite repeated pleas to remove the VAT, CST and Cess. The association has said closure of mills would lead to job losses for over 20,000 textile workers.

Printer friendly page
Send this article to Friends by E-Mail

Tamil Nadu