The Hindu : Tamil Nadu News : Open end spinning mills at Udumalpet stop production

Online edition of India's National Newspaper
Friday, Feb 08, 2008
ePaper | Mobile/PDA Version

Tamil Nadu

Tamil Nadu

Open end spinning mills at Udumalpet stop production

Staff Reporter

‘Scrap 4 per cent VAT, ensure uninterrupted power supply’

UDUMALPET: Open end spinning mills, which produce low count yarn for gray cloth, on Thursday began an agitation demanding the Government to scrap the 4 per cent Value Added Tax and provide uninterrupted power supply to the spinning mills.

More than 20 open end spinning mills have taken part in the agitation, which will continue for the next four days.

S. Jayaprakash, a mill owner said that they were procuring waste cotton from big spinning mills. Because of the rise in price of cotton, the textile mills have been increasing price of waste cotton from 41.50 a kg a month ago to Rs. 50 a kg.

Terming this rise abnormal, Mr. Jayaprakash said that they could not sell yarn to powerlooms in Palladam, Erode and Karur region as the demand for these yarn was declining. The low turnout of buyers from North India was the reason for the sluggish movement of yarn, he said.

The Open End Spinning Mills Association has demanded uninterrupted electricity supply to these mills. They said the power cut that lasts nearly 4 hours a day have caused big production loss to the units. The association wanted the 3 per cent Central Sales Tax on cotton scrapped.

The association president, R. Thirumalaisamy, and the secretary, K. Ashok, apprehend that many units would face closure if the selling price of yarn in domestic market do not improve.

They said most of the units were reeling under financial crunch for the last four months.

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

Tamil Nadu