Raw cotton transport, yarn production hit during lockdown, say textile companies

They said transportation of raw cotton, mostly grown in Maharashtra and Gujarat, to spinning mills is also a major problem now.

Published: 28th March 2020 05:12 PM  |   Last Updated: 28th March 2020 05:12 PM   |  A+A-

A textile mill image used for representational purpose

Fr representational purpose. (File photo | Reuters)


The textile trade, particularly the hosiery sector, is in a crisis as production of yarn in factories came to a halt in the wake of the 21-day nationwide lockdown, industry experts said on Saturday.

They said transportation of raw cotton, mostly grown in Maharashtra and Gujarat, to spinning mills is also a major problem now.

"Raw cotton is available in Gujarat and Maharashtra. As the spinning mills are closed due to the lockdown, production of yarn has been greatly affected," hosiery manufacturing company Dollar Industries MD Vinod Kumar Gupta told PTI.

He said labourers, who were staying nearby factories and elsewhere, have gone to their native villages and home towns, following the coronavirus scare.

Not only cotton, the entire textile industry across the country is hit as factories are shut during the lockdown imposed to contain the coronavirus outbreak, Gupta said.

"Labourers migrated to their home towns. Nobody knows how long the lockdown will continue. Next five to seven days will be crucial," he said.

Another fabric manufacturing company, BSL Limited's chairman and Managing Director Arun Churiwal, whose factory is located in Rajasthan, stated that it is not the cotton industry only, the entire textile sector has been bearing the brunt of the COVID-19 crisis.

There has been a bumper crop of cotton this October, but the problem is lack of buyers.

"Godowns are full. Yarn is not being produced and dispatched. So production of finished products and sales are also not happening," he told PTI.

This is a problem for the whole textile industry, Churiwal added. RBI has given certain relaxations in working capital norms, he said, adding that it will give "the industry a breather".

Churiwal also urged the textiles ministry to provide assistance from the Technology Upgradation Fund (TUF) scheme to overcome the crisis and demanded immediate release of GST refund to the textile industry.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp