Cotton spinners bleed on falling realisation, several MSMEs shut shop

Pressure exacerbated by increasing labour costs, interest on working capital, land, plant and machinery

Thousands of cotton spinning mills have shut shop the past three months due to a sharp decline in realisations from both domestic and international markets, following weak global demand.

An Icra study said that the average realization from cotton yarn stood at Rs 212 a kg (for 30s carded) in July, a decline of around six per cent from Rs 225 a kg averaged in the quarter between April and June 2019. During the last one year, however, the average realization was recorded at Rs 220 a kg from cotton yarn of 30s carded variety. Similarly, realization from other varieties