Power loom units making rayon fabric stop production for a week

About 24 lakh metre rayon fabric is produced everyday in these units in which over 50,000 workers are employed directly and indirectly.

Urging the government to take steps so that the price of rayon yarn is fixed once in a month, around 30,000 power loom units involved in producing rayon fabric stopped their production for a week from Monday.

About 55,000 power loom units function in the district in which about 25,000 units produce dhotis and saris while 10,000 units are producing cotton fabric. About 30,000 units functioning at Veerappanchatiram, Ashokapuram, Manickampalayam, Rasampalayam and Chithode were involved in purchasing rayon yarn from companies at Pallipalayam and produce fabrics at these units and sell the fabrics to companies and traders at North India.

B. Kandavel, coordinator, Tamil Nadu Federation of Power Loom Association, said that the price of yarn during Deepavali was Rs. 150 per kg that was increased to Rs. 176 per kg this week. He said that yarn price increases frequently and price fluctuation is affecting the execution of their orders as they continue to incur heavy loss. “We incur loss of over Rs. 5 per metre”, he said.

About 24 lakh metre rayon fabric is produced everyday in these units in which over 50,000 workers are employed directly and indirectly. Production will be halted from December 21 to 27 affecting manufacturing of 16.80 crore metre fabric costing Rs. 40 crores, said members of Erode Vhisaithari Urimayalargal Sangam (Erode Power Loom Owners Association). They said that due to price fluctuation, they purchase yarn at over Rs. 170 per kg whereas after production, they were forced to sell the finished product at a low price. “Price of yarn changes almost everyday and we want it to be fixed once in a month”, they added.

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