MANGALORE CHEMICALS AND FERTILISERS-Turn-Around in Offing

normally expect a mill to buy cotton at prices which make conversion of cotton into yarn/cloth an uneconomic operation. Consumer resistance for yarn and cloth would get reflected in raw material prices sooner or later. One can, of course, visualise situations in which management would prefer to keep the unit running even at a loss for quite some time as a sequel to the rise in raw material costs instead of resorting to a cutback in production.