February 2020 Issue Apparel February 2020 issue | Page 104

INDUSTRY INSIGHTS
A Spin of Hope
Things are looking up for the spinning industry after it begins to recover from the downturn of
last year. Anurima Das writes.
Last July, the Northern India Textile Mills’
Association (NITMA) released a statement
mentioning the distress of the spinning industry
in India, highlighting how the spinners of North
India were eager to shut shop once a week, just
to reduce their overhead expenses. This was an
extreme decision and signalled a bigger problem
at hand.
Owing to poor demand for yarn from overseas
markets, there arose an unchecked amount of
yarn stocks. This resulted in poor liquidity and
thereby came the decision of cutting down
production. The reason for this, the spinners
cited, was the reduction in Indian yarns. For all
these years, China has been a major importer of
Indian yarns; but with it holding back its imports
from the beginning of 2019, the production of
yarns happened at full capacity but the same
did not move out of warehouses in the way it
should have. The increasing amount of unused
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February 2020