SALEM: A day ahead of the Chief Minister’s visit to his hometown, Edappadi, powerloom units fell silent in protest against the sudden surge in yarn prices.
Edappadi and surrounding villages such as Velandivalasu, Mettur Stree, Motur and Velanaikenpayalam are traditional powerloom clusters where towels and made-ups of various varieties are manufactured and sold in the Erode textile market and also sent to all states in India. An estimated 20,000 units and countless allied industries operate in the area, employing over 30,000 workers.
The price of yarn, the main input for the industry, rose steeply disrupting the short term calculations of power loom unit owners. The owners said that the price of a five kg bundle of yarn grade no 10 has gone up to `650 from `480, whereas the no 20 grade yarn price surged to `950 from `750. The prices of other grades have also seen a similar rise (of about 20 to 25 percent), said sources.
Blaming the Central and State governments of being mum on the frequent fluctuations in the yarn market, the powerloom owners and marketing agents (who also joined the strike) said that if steps were not taken to control the price of yarn, the textile industry, especially the units in the lower end that manufacture low value but high demand items, would be severely affected. The losses that the units would incur could put the workers and also the whole range of small and micro scale ancillary units in jeopardy, they added.
While it is the Central government that has more control over the affairs of the textile industry, the State government can put pressure on the Central government and make interventions in the input markets, the finished goods market and incentivise cotton cultivation so as to increase supplies, added powerloom unit workers.
They said they, along with marketing agents, will submit a memorandum to Chief Minister K Palaniswami during his visit to Edappadi on Saturday.