The Hindu : Tamil Nadu News : Rising prices of raw materials hit powerlooms

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Wednesday, Jun 18, 2008
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Tamil Nadu

Tamil Nadu

Rising prices of raw materials hit powerlooms

K. Raju

Shops to down shutters tomorrow in Andipatti

Prices of yarn, shot up from Rs.560 to Rs.590 suddenly
The loss is estimated at Rs.40 lakh a day due to stoppage

THENI: Even as revenue and police officials have been negotiating with powerloom owners and workers to resume production, further hike in prices of yarn and the acute shortage of dyes and chemicals, main raw materials for yarn processing, force majority of fabric manufacturers to keep away from their units.

However, few units have resumed production with yarn stock available with them.

They also cannot run their units for a long time as yarn prices went up again on Tuesday.

Prices of yarn, which were hovering at Rs.560 per bundle four days ago, shot up suddenly to Rs.590 on Tuesday.

Raw materials for processing have not only become a costly commodity but also a rare one.

“If this negative trend continues, the entire industry in Andipatti will come to a stand still, worried power loom owners say. “We want to oblige officials’ request. But the situation is grim and is turning from bad to worse.”

Collection of dues only

Several powerloom owners have stopped their activities with just collection of dues from buyers.

They neither resumed production nor purchased yarn.

With no supply of yarn from weavers’ cooperative societies, several units were completely paralysed.

Whenever we contacted the societies, officials parroted that supply would resume shortly, they said. “No one knows when the supply would resume.”

With no options, owners, workers and others who were engaged in allied business have decided to stall all their activities on Thursday. Local people, including traders, merchants and shop owners in Andipatti taluk, have decided to join hands with power loom people and close down their shops to draw the attention of the government.

The loss due to the stoppage of production in power looms was estimated at Rs.40 lakh a day.

Over 4,000 powerlooms in the district, particularly in Andipatti taluk, were not operated for the past three days to protest against the hike in prices of yarn and other raw materials used for manufacturing dhotis, saris and other textile items.

Andipatti, Jakkampatti, T. Subbulapuram and nearby areas in the district are the major powerloom centres that offers jobs directly and directly to over 20,000 workers every day.

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