In a statement, Dr. Srinivasan said that the spread of the virus has severely disrupted the cotton yarn sector as not only the exports but domestic consumption also have declined sharply. Exports of cotton yarn which had shown signs of some revival in January have virtually collapsed as not only the overseas importers but leading garment producers and retailers in India are also deferring and cancelling orders. A large inventory of unsold stock is thus building up leading to curtailment and stoppage of production. With major cities enforcing lockdowns and companies enforcing ‘production cut- backs’, the labour force which  mainly comprises of migrants are also leaving for their native places.

The chairman pointed out that the situation is worsening by the day as companies are running out of funds to pay wages, government dues and service bank loans. The cash flow has been seriously affected.

He also requested that interest subvention should be extended to cotton yarn along with other export incentives in line with the support extended to fabrics and madeups.

Fibre2Fashion News Desk (PC)