With regard to cotton, Mr.Dinakaran said that the cotton prices which were ruling at Rs.35,000/- per candy very recently has gone up to Rs.42,000/- per candy.
SIMA Chairman has stated that the current market scenario is very much encouraging for the spinners, though the mills are yet to reach breakeven level even in the current cotton price in many counts. He has hoped that by October, the market would resume normalcy.
He has further stated that the spinning sector would soon become profitable if the Central Government comes out with various supportive measures viz., conversion of eroded working capital into working capital term loan with two years moratorium period for repayment of loans and interest including working capital term loan. He has mentioned that RBI, Finance Ministry and Indian Banks Association have shown sympathy towards the industry when the industry Associations met them and hoped that the relief measures would be announced soon.
Mr Dinakaran has also pleaded to the Government to facilitate adequate drawing for the mills to procure adequate quality cotton at the competitive price during the peak season.
The Southern India Mills' Association (SIMA)
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