In coming days, yarn price may remain under control!
In a virtual meeting, in which Union Textile Minister Smriti Irani and representatives of various trade bodies were present, it was decided that prices will come down to around Rs. 20 per kg immediately.
“Reviewing the situation of yarn price, the Minister of Textiles was not satisfied. So it was decided in the meeting that those who got the Cotton Corporation of India (CCI) cotton on a reduced price/terms not passed over the price reduction to the yarn buyers, would be banned and will not get CCI cotton for the next three years,” shared a representative of a prestigious trade body who don’t wish to be quoted.
Another source also confirming this information added that it was also decided in the meeting that the mills, stocking cotton yarn either for themselves or with traders aiming for a speculative business, would be inspected by the MoT’s officials and will be dealt with strongly if they are hoarding the stock.
“The Minister also hinted that suitable action against them will be initiated through the Competition Commission of India, if any of the mills is found engaged in cartelisation in the matter of artificially fixing high yarn prices,” he further added.
The meeting continued for around 30 minutes.
It may be mentioned here that since last five months, apparel manufacturers are struggling with high yarn price and despite many efforts at various levels, there is still no significant relief for them.
In the last week of March, South Indian mills had assured that they will not raise the price for the month of April but at ground level, rate continued to increase.
