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Lockdown Impact: Absence Of Workers Leaves Cotton Mills High & Dry

24 Apr 2020 3:11 pm
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Mumbai (Commodities Control) – “Even if the lockdown is fully lifted, it will take much longer for the mills to operate with full capacity, as our migrant workers have left for their respective hometowns/villages, says Suresh Anand Kumar, Deputy Secretary General- Southern India Mills’ Association (SIMA).

In conversation with commoditiescontrol.com, Suresh Kumar of SIMA revealed that nearly they 50-60% of their workforce comprises of migrant workers, who were forced to leave for their homes amid lockdown and trade restrictions.

“We do not know when they (migrant workers) will be back. So even if start operating we will need to rely on the labours available locally”, explains Dy Secy General SIMA.

The unprecedented situation created by Covid–19 pandemic and lockdown announced by both the Union and state governments from March 24 has led to severe disruptions affecting the economy and impacting people at large and the MSME spinning mills.

Nationwide lockdown, closing of borders between districts and states has affected the highly labour, capital- intensive textile spinning sector and has affected the revenue of the entire textile value chain.


Cotton Association of India (CAI) has written to the Prime Ministers’ Office (PMO) and the ministries of Textiles, and Agriculture and Farmers’ Welfare seeking assistance and support for the cotton ginning and pressing factories.


Trade will most likely take much longer to be back on its feet as lockdown has led to severe demand destruction.

K Selvaraju, Secretary General, Southern India Mills’ Association, said, “Usually, the mill consumption is about 25-27 lakh bales per month. Due to lockdown it has become zero. Also, there are no takers as well. There is no clarity about when operations will resume, so going ahead we may end up with huge carryover stock.”

CCI has upped its discount on last seasons’ cotton stock by nearly 2.5 times upto Rs 10,000/Candy for the period of 20th-30th April 2020. However millers/traders are unsure if they should avail to this offer in the absence of labours and pandemic-hit demand.

(Commodities Control Bureau)


       
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