ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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HINDOOSTAN S PROFITABILITY UP

The Chairman of the Thackersey group of cotton mills has joined company with his counterparts in other groups in visualising bleak prospects for the industry in the near future. Shri K M D Thackersey feels that the policy of forcing the industry to sell its products at prices which do not cover costs is shortsighted and suicidal.

The Chairman of the Thackersey group of cotton mills has joined company with his counterparts in other groups in visualising bleak prospects for the industry in the near future. Shri K M D Thackersey feels that the policy of forcing the industry to sell its products at prices which do not cover costs is shortsighted and suicidal. In his statement to the shareholders of Hindoostan Spinning and Weaving Mills, he asserts that marginal units and financially weak units find it difficult to run profitably and new units, set up at very high capital costs, are not able to build up a sound financial position, owing to the statutory control over the prices of about onehalf of the total production.

The continuous rise in wages and prices of raw materials has pushed up the cost of production. The prices of controlled varieties, however, are not allowed to increase to an extent commensurate with the rise in the cost of production. Government has permitted an increase of only 2 per cent against the industry's request for a 7.5 per cent rise. He complains that Government continues to impose fresh burdens setting in motion forces which inflate prices, but expects industry to hold the price line — by incurring losses. Devaluation will further increase the cost of production.

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