Cotton mills facing financial crisis

Of the total 65 spinning mills in the State, only 34 are functioning. The mills from Yeotmal and Amravati have already been sold out while other mills are functioning below their production capacities and some have been declared insolvent. The functional spinning mills in the state include the Walsang and Sangola mills in Solapur district, Loknayak Jaiprakash mill in Dhule district and Babasaheb Naik mill in Yeotmal.

According to the statistics available, of the total 32 spinning mills, 32 mills were in profits while the remaining 19 mills were suffering losses. Last year, the prices of cotton had increased from Rs 5.53 to Rs 6.18. However the prices of yarn had increased only from Rs 3.52 to Rs 5.54. The 32 spinning mills had utilised 946 lakh kilos cotton to produce around 771 lakh kilos yarn.

Till last year, the 56 cooperative spinning mills in the state had in total incurred a loss of Rs 548.47 crores since their inception period. The Bhiwandi-based Vishwabharati mill has incurred the highest losses which is to the tune of Rs 34.59 crores. The losses suffered by other mills are as follows: Painganga Spinning Mill 8211; Rs. 27.50 crores, Gadgebaba Mill from Daryapur 8211; Rs 27.14 crores.