Madhya Pradesh spinners cut output on demand, cost woes

Spinning mills in Madhya Pradesh are facing a double whammy, declining demand and rising costs. This has forced them to cut production by over 10 per cent.

Firstly, there's a lack of orders from textile units. On top of that, yarn exports to China and Bangladesh have plunged. This has led to a drop in cotton prices, hurting local markets. Manjeet Singh Chawla, spinning mill owner reported slumping yarn demand, causing a dip in market sentiment. Consequently, many mills have cut back on working hours and reduced production.

Secondly, mills are grappling with high input costs, squeezing profits. An additional challenge is a government rule requiring a 45-day payment cycle for small businesses. This is dampening the garment market, further reducing yarn demand.

The industry hopes demand will pick up in the new season starting July. However, there might be cotton supply issues as well. The Cotton Association of India (CAI) predicts a lower cotton crop for Madhya Pradesh this year compared to last year.