The Hindu : Front Page : Shuttle-less looms in distress

Online edition of India's National Newspaper
Thursday, May 15, 2008
ePaper | Mobile/PDA Version

Front Page

Front Page

Shuttle-less looms in distress

M. Gunasekaran

— Photo: M. Balaji

TOUGH GOING : Shuttle- less loom at work at Palladam in Coimbatore district

TIRUPUR: Operators of shuttle-less looms in this region will go on a token strike on May 16. The wider-width home textile varieties they produce have been facing sluggish demand and increasing input costs over a couple of months.

The region witnessed a spurt in the import of used shuttle-less looms, projected as a promising option by the government, two years ago. Higher conversion charges and surging orders lured many entrepreneurs to opt for such looms. But their fortunes have changed in less than two years.

Sulur Chinnasamy, who owns 10 shuttle-less looms, each costing around Rs. 8 lakh, said he could not repay his loans for the last couple of months as there was no demand for the fabric. “Since the fall of the dollar against the rupee, we have been seeing losses for the past year. The conversion charge per pick has come down to 21 paise, despite wage hikes and production losses owing to power cuts.” The 10 per cent increase in yarn prices and hike in interest rates are giving sleepless nights to producers of grey fabric. Shuttle- less Loom Cloth Manufacturers’ Association of Tamil Nadu secretary N.P. Sivaramakrishnan says the interest rate for term loans has risen to 14.75 per cent from 10 per cent two years ago. He wanted the 4 per cent sales tax on yarn to be withdrawn by the State and import duty on spare parts revoked by the Centre.

Printer friendly page
Send this article to Friends by E-Mail

Front Page