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COIMBATORE: Powerloom units in Tirupur and Coimbatore Districts are operating at just 50 per cent to 60 per cent capacity because of power and raw material problems.
President of Somanur Textile Manufacturers' Association C.R. Ponnusamy told The Hindu that the working capital has eroded by nearly 20 per cent for the powerloom units because of the unsold fabric stocks with them. Since cotton and yarn prices were escalating, the units feared very high prices and started building raw material stocks.
The prices of cotton and yarn slumped during the last few days.
Even if cotton is purchased at Rs. 44,000 a candy now (it went up to Rs. 60,000 a candy in March), the current yarn and fabric prices are unviable for the units to continue production.
The cotton and yarn prices should stabilise.
“We expect the situation to improve only next month. The powerloom units are going slow on production as it is not viable to produce at the existing price levels,” he said.
Velusamy, a powerloom unit owner near Palladam, said that with fabric prices going down, the weavers were reluctant to continue production. Powerlooms were already hit by power shortage. The raw material problem has only added to the woes of the weavers, he said.
The prices should stabilise for production to pick up. Currently, the powerloom units were operating at just a little more than 50 per cent capacity.
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