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G. Gurumurthy

Sandwiched between the lorry agitation and the slowed down weaving operations, most spinners are faced with cash-flow problem. This, according to sources, has already caused delayed payments to raw material suppliers, namely cotton traders.

COIMBATORE, April 21

TEXTILE mills have begun to bear the brunt of the on-going truck operators' stir.

For an industry which relies heavily on road transport for raw material replenishment and despatch of finished goods to cotton yarn/fabric markets, the stoppage of truck operation has brought to a halt the movement of raw cotton and cotton yarn, the finished product from the spinning mills.

While a number of spinning mills for want of ginned cotton, have either slowed down their spindle operation, others are operating with low cotton stocks, the textile industry sources say.

In the case of spinners, the weavers agitation against the `cenvat' duty early this month followed by the truckers' strike have dwelt a twin-blow. The weavers' agitation, which is sporadically continuing in many weaving centres in Tamil Nadu, has led to stock piling of cotton yarn. The lorry operators' strike has further accentuated stockpiling of the finished goods, this time both for spinners and the fabric producers in select weaving centres where loom operation is still being maintained, the sources said.

The agitation has prevented the movement of seed cotton arrivals to the ginneries in the upcountry cotton production centres. Similarly, the ginned cotton movement from these ginning stations to the major consuming areas has also been thrown out of gear.

Sandwiched between the lorry agitation and the slowed down weaving operations, most spinners are faced with cash-flow problem. This, according to sources, has already caused delayed payments to raw material suppliers, namely cotton traders who are given delayed payments in some areas.

Though no estimate of the production loss incurred by the textile industry in the region in the past 20 days is available, the trade sources put the loss at anywhere between Rs 200 to Rs 250 crore.

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