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With a huge decline in demand and prices of cotton yarn, textile workers in southern India went on a day-long strike. The workers are demanding more job security, as yarn production are being cut to reduce the excess supply of the commodity.
With steep declines in demand and prices of cotton yarn, textile industry workers went on a day-long strike on Monday in Coimbatore City.
Falling yarn demand and price has led to the piling up of stocks, landing the industry in trouble.
Mills are cutting production by a third in a bid to reduce stockpiles.
[Thulasidharan, Chairman, South India Mills Association]:
"We will be reducing our production by 33 percent, that is by stopping one shift and operating only two shifts. This is due to the stocks piling up and very poor yarn off take and steep fall in yarn prices. We have been pushed due to the policies of the central government."
When exports resumed back in April, the accumulated stock caused a crash in cotton yarn prices in global and domestic markets.
Coimbatore is home to the largest number of textile mills and research institutes in the country. There are more than 25,000 small, medium and large textile units in Coimbatore alone.