Over half the units in Erode region are closed
More than 50 per cent of the powerlooms units in Erode region have closed their operations due to the slump in demand, spiralling prices of cotton yarn and power crisis.
The demand for fabric from the domestic apparel manufacturers and export oriented units had come down sharply in the last few months.
The global economic slowdown and the crisis in European countries were said to be the primary reasons for the sharp fall in the orders from the garment export units.
Erode, Namakkal, Salem and Tirupur districts have more than three lakh units, which provide employment to thousands of people. More than 50 per cent of the fabric produced in these units is meant for export-oriented garments and apparel manufacturing units.
“The textile and garment exports are badly hit due to the crisis in the European countries. The demand from the domestic market is also not good. There is a general slump in demand for clothes across the country. The power loom industry is going through a difficult time,” Confederation of Indian Weaving Industries President M. S. Mathivanan points out.
What makes the power loom units to struggle further for survival is the higher cotton yarn prices.
“The yarn prices have witnessed a 20 per cent increase in the last 30 days. Buyers are offering a lower rate to the fabric and the units are not able to match that rate due to higher yarn prices,” he says.
The power crisis has dealt a serious blow to the industry, which is already under severe stress due to the low demand and increasing yarn prices.
Apart from the scheduled power cut, most parts of the State experience unannounced power cuts for about three to six hours a day.
“The frequent disruptions in power supply cause huge loss in the productivity and affects the quality of the fabric,” Mr. Mathivanan says.
The weaving industry in the State has lost its competitive edge in both domestic and export markets due to these issues, he points out.
Weavers have appealed to the Central and State governments to bring in concrete measures to sort out the issues faced by the industry including the power crisis.
More efforts should be taken up to control the yarn prices and a ban should be imposed on the export of cotton and cotton yarn, they demand.
Erode, Namakkal, Salem and Tirupur districts have more than three lakh units Frequent disruptions in power supply cause huge loss in productivity
Erode, Namakkal, Salem and Tirupur districts have more than three lakh units
Frequent disruptions in power supply cause huge loss in productivity