TIRUPPUR: Powerloom textile manufacturers have reduced production by 50%, as the sale of manufactured fabrics (cotton grey fabric) has stagnated locally due to the prevailing US-Israel-Iran war.
K Sakthivel, coordinator of Tiruppur and Coimbatore District Textile Manufacturers Association, said, “Around 2.5 lakh power looms operate in Tiruppur and Coimbatore, and about 10 million metres of cotton grey fabric were being produced per day.
However, from Monday, we have reduced our production by 50%. The primary reason is that our buyers in Africa and other countries have temporarily suspended fabric imports due to the prevailing war.”
“In addition, the fabric that used to take about 45 days to reach the European market now takes 80 days. Moreover, payments from foreign buyers are currently being delayed significantly. For such reasons, over the past four weeks, fabrics worth Rs 200 crore have stagnated.”
“Taking advantage of this, domestic buyers have also started reducing fabric prices. The price of yarn has also risen sharply due to the rise in cotton prices. For example, the price of 40s spinning yarn has risen from Rs 235 per kg to Rs 300.
This price hike has occurred within a month. The prices of synthetic fibres, which are manufactured from petroleum by-products, have also risen. Due to the war, China has now started importing yarn from India, instead of Brazil. This, too, is a reason for the yarn price hike,” he further said.
Another textile manufacturer said domestic buyers have reduced the price by up to 25 paise per metre. The price of cotton grey fabric ranges from Rs 35 to Rs 50 per metre, he said.
Job-work powerloom weavers have also been affected due to this. “Textile manufacturers have reduced the wage per metre of fabric from Rs 7 to Rs 6.75. If this continues, the workers in our units will also be severely affected,” said M Balasubramaniam, secretary of Tiruppur and Coimbatore District Job-Working Powerloom Weavers Association.