RAJANNA/SIRCILLA: The Sircilla textile industry, already struggling due to lack of orders and weak market demand, is now facing fresh pressure because of the impact of the West Asia conflict. The rise in crude oil prices triggered by the war has sharply increased the cost of yarn and chemicals used in textile production, pushing both polyester and cotton-based units in Sircilla into uncertainty.
Although production costs have gone up, the market is not offering remunerative prices for finished products, resulting in mounting losses. The industry was already burdened by declining orders and the accumulation of unsold stock, and the latest developments have worsened the crisis.
Industry stakeholders fear that many units may be forced to shut down if immediate support is not provided. They are urging the government to control raw material prices, provide subsidies and offer concessions on electricity charges to protect the livelihoods of thousands of workers.
According to cloth producers, nearly four crore metres of cloth produced in Sircilla remain unsold due to a lack of orders. Every day, around 18 lakh metres of polyester cloth and three lakh metres of cotton cloth are produced in the town.
A skilled handloom weaver, Nalla Vijay, said, “Silk yarn prices have increased by Rs 2,000, creating hesitation in saree and cloth weaving due to rising production costs.”
B Brahmanandam of Om Sai Handlooms said the sudden rise in chemical and colour charges has affected both production and sales. “The war has impacted transportation, which in turn has affected yarn prices and other raw materials required for cloth production,” he said.
Polyester yarn is stabilise from Gujarat, while cotton yarn is sourced from Andhra Pradesh and Tamil Nadu. With the increase in crude oil and fuel prices, transportation costs have risen, further pushing up yarn prices.
For the past 20 days, unit owners, middlemen and workers have not been receiving remunerative returns on investment, causing growing concern across the sector. The sudden cancellation of RVM textile orders worth Rs 105 crore has also severely affected workers’ livelihoods in Sircilla.
State president of the Powerloom Workers Union, Musham Ramesh, said, “This unjust action by the government has badly hit the handloom and powerloom industry. Instead of calling tenders involving commissions on government textile orders, the government should ensure 365 days of employment for workers.”
Assistant Director of the Handlooms and Textiles Department, Santhosh Kumar Sriram, told TNIE: “Of the 2.50 crore metres ordered for government schemes, 90 lakh metres of sarees have already been produced and the remaining quantity is in the finishing stage. However, units dependent on private orders and cloth production are facing severe difficulties.”