ERODE: The State Government will set up a permanent venue to exhibit handloom products on a four-acre site at Mahabalipuram, the Handloom and Textiles Minister, N.K.K.P. Raja, told reporters here on Tuesday.

It would help foreign buyers buy the products from a single place, he said. Mr. Raja said that the Government had sanctioned Rs. 2 crore for the purpose and it would begin soon.

The Minister said that out of the 18 cooperative spinning mills, 13 were remaining closed. The Government had decided to revive the dormant cooperative spinning mills. In the first phase, the mills at Salem, Pettai (Tirunelveli) and Dharapuram will be revived.

Mr. Raja said the yarn was supplied to the weavers' cooperatives through five cooperative spinning mills.

Regarding the rise in yarn price, he said a committee had been formed to look into the ways and means to reduce the price. Within a month the committee will place its suggestions.

The Minister said that handloom goods worth Rs. 300 crore were being exported from the 120 weavers' cooperatives in the district. Steps were being taken to export the products directly.

Several representations were made to him and the Chief Minister by the weavers' cooperatives to waive the housing loan borrowed by them. The handlooms are demanding free electricity at their work sheds. The Chief Minister will take a decision soon.

The Union Government has permitted the formation of two Special Integrated Textile Parks at Erode and Komarapalayam, he said.

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