Reverse migration, dip in demand hit spinning mills
VIJAYAWADA: Despite getting exemption from lockdown, there is no respite to spinning mills for a variety of reasons. Primary among them is non-availability of workforce and reduction in demand for yarn in the domestic market. Around 20,000 migrant workers from Odisha, Bihar and Uttar Pradesh, Srikakulam, Vizianagaram and other districts of Andhra Pradesh work in the spinning mills, most of which are located in Guntur and Krishna districts.
The very visible outcome of Covid-19 is reverse migration, which, experts say, could end up being hard to reconcile with, given the importance of migrant workers to the economy. Though the government allowed industries, located in non-containment zones, to commence operations, shortage of required workforce obstructed them from taking up full-scale production.
It may be noted the migrant workers left for their native places before industries were exempted from lockdown. Speaking to TNIE, Andhra Pradesh Textile Mills’ Association representative P Koti Rao says there are around 120-odd spinning mills in the State. Of them, around 15 per cent have not commenced operations due to unavailability of labour.
Even those industries, which commenced operations, are not in a position to take up full-scale production thereby burning a hole in the pocket of the managements as they have to pay fixed electricity charges (even if they are not functioning), he said. He said the demand for yarn has reduced as a majority of buyers are in Maharashtra, Gujarat and Tamil Nadu.
This apart, most powerloom industries in the said States are situated in containment zones. The fresh face-off between India and China has had an adverse impact — China purchases 15 to 20 per cent yarn from the State. Another problem is neighbouring countries are reluctant to unload the yarn stock at their ports due to Covid-19 scare.