About two lakh power loom units accounting for fifty per cent of the operating industries in the Western region of Tamil Nadu face closure due to inadequacy of raw material availability caused by faulty export policy, said M.S. Mathivanan, president of the Confederation of Indian Weaving Industries.
Power loom industries are unable to get enough inputs from the mills since export of cotton yarn and raw cotton has accelerated due to the fall in value of Indian rupee against US dollar.
Garments do not get the same benefit since buyers offer only minimum price.
Cotton farmers are not benefited since cotton is procured on the basis of minimum support price.
Only the buyers’ profiteer by exporting, he said.
The Cotton Advisory Board, Mr. Mathivanan said, has to take note of the requirement of raw cotton on large scale by small and established spinning mills.
Of the 340 tonnes of cotton bales produced, 215 lakh tonnes have to be kept as stock for sustaining supply to the mills.
Mr. Mathivanan advocated reconstitution of the Cotton Advisory Board through inclusion of representatives of power loom and handloom sectors.