The Hindu : Front Page : Looms halt in Erode district

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Saturday, Feb 16, 2008
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Looms halt in Erode district

R. Sundaram

Yarn price increase and power cuts force loom owners to shut units

ERODE: The textile sector in Erode district, home to many mills, is facing a twin crisis with a steep increase in yarn prices and disruption in power supply. Production worth Rs. 5 crore is hit every day. Powerlooms and handlooms here produce bedsheets, bedspreads, towels, lungis and other fabrics. Most of it is sent to North India and the local market.

A senior powerloom producer, V.N. Swaminathan of Chennimalai, told The Hindu on Wednesday: “In Chennimalai alone, out of 2,500 powerlooms 1,500 have stopped production from Monday because of the steep yarn price hike. Fifteen days ago a bundle of yarn (weighing 5 kg) was sold at Rs. 280, but now it is Rs. 335. If a weaver purchases yarn for that price, the product price will have to be increased by 15 per cent. But then there will be no buyers. So the weavers have decided to shut their looms.”

Some powerloom owners hope the yarn prices will drop soon. Mr. Swaminathan himself is not very optimistic. He said the owners had asked the Centre to stop the export of waste cotton. It was because of this that coarse variety yarn prices had gone up.

The powerloom industry has been hit hard also by power cuts. Chennimalai and its surroundings go without power for more than five hours each day.

Erode Handloom Cloth Merchants Association president R.S. Natarasa Mudalaiar said: “The power cut and the increase in the yarn price have affected textile goods production in Erode. In the Erode area alone, production worth Rs. 3 crore is stopped every.” Garment exporters said the appreciation of the rupee vis-À-vis the dollar had affected the export trade.

Textile Garments Exporters Association secretary S. Sivanandham said: “Because of power cut and non-availability of proper fabric, we cannot produce garments. Further the drop in the value of the US dollar has also hit the trade heavily. So we are not taking fresh orders and not executing those received some months ago.” He wanted the Union Textile Ministry to come to their rescue by giving them grants.

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