Chinese Import Decline Hits the Indian Spinning Sector
August 10, 2015 
The cotton spinning sector in India has been hard hit by declining yarn exports, and mills in northern India may be shutting down one day a week.
According to Chandigarh-based Northern India Textile Mills’ Association (NITMA) – which has 98 member mills that include leading names such as Vardhaman and Trident – excess spinning capacity and decline in exports this fiscal year have resulted in poor cash flow and excessive stocks.
In addition to these fiscal matters, textile policies in some southern states and those of Madhya Pradesh and Gujarat are hitting the northern spinning mills hard, said Sharad Jaipuria, president of NITMA.
H.S. Cheema, senior vice president of NITMA, stated that the spinning sector is under crisis, and plans like shutting the production one day a week are under serious consideration.
G. Balasubramanian, secretary general of NITMA, said India has about 10 percent excess spinning capacity. He noted that “yarn exports have fallen by about 20 percent year-on-year in the first quarter of this year.” More importantly, imports by China have declined by about 30 to 40 percent this year, creating a greater blow to the Indian spinning industry.
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