Yarn firms are facing a tough time dealing with weakening of Dollar, which is partly due to the excessive inflow of foreign capital in the US.
The situation got aggravated after US Central Bank took the decision of cutting down the interest rates in August. As a result, yarn imports from Far East increased, hitting producers who were already sapped by the prevailing exchange rates and high cost of production.
Imported yarn led to a staggering decline of 90 percent in the sales and yarn producers were left with no other alternative but to reduce production by more than 50 percent. Since weaving plants refuse to buy domestic yarn on grounds that it’s expensive, yarn producers might as well have to shut down their units.
Production got clogged in six out of 16 yarn factories and this left nearly 1,500 people out of work. Moreover, a renowned yarn company Yucel Iplik, is intending to either sell out the machines or shift its base to Uzbekistan, where cost of production is comparatively less.
The situation got aggravated after US Central Bank took the decision of cutting down the interest rates in August. As a result, yarn imports from Far East increased, hitting producers who were already sapped by the prevailing exchange rates and high cost of production.
Imported yarn led to a staggering decline of 90 percent in the sales and yarn producers were left with no other alternative but to reduce production by more than 50 percent. Since weaving plants refuse to buy domestic yarn on grounds that it’s expensive, yarn producers might as well have to shut down their units.
Production got clogged in six out of 16 yarn factories and this left nearly 1,500 people out of work. Moreover, a renowned yarn company Yucel Iplik, is intending to either sell out the machines or shift its base to Uzbekistan, where cost of production is comparatively less.
