COIMBATORE: More than 25,000 power looms in Erode have suspended production since July 3 as the price of rayon fabric has fallen by Rs 2 to Rs 3 per metre.
There are more than 50,000 power loom units across Erode, Veerappanchathiram, Chitode, Ashokapuram and Lakkapuram. While more than half of the units have fallen silent, the rest are engaged in weaving sarees and dhotis that would be distributed by the government to PDS beneficiaries.
Erode Power Loom Unit owners association president LKM Suresh said that they are selling a metre of rayon fabric at Rs 26.50, and they, in turn, sell it to traders in Bhiwandi, Surat, Jaipur, Ahmedabad and Jodhpur.
A month ago, the price was Rs 31 as yarn was sold at Rs 230. Now yarn price has fallen to Rs 220, and this has pulled rayon price down. "We can make profit only if a metre of rayon is sold for Rs 30 or 29. This rate would help us to pay workers bonus for Deepavali festival. We can operate looms if traders are ready to pay at least Rs 28," Suresh added.
With production suspended, nearly 50,000 people are out of jobs directly apart from thousands indirectly, the association claimed.
B Kandavel, secretary of Tamil Nadu Federation of Power loom Associations, said, "We request Chief Minister M K Stalin to ensure at least 2000 to 5000 metres are processed by looms inAshokapuram since the units are working on government orders and set up Common Effluent Treatment Plant (CETP) in the district."
According to sources, the looms may halt production beyond July 10 if traders do not accept their demand of paying Rs 28 -29 per metre.