The long-pending demand of power loom associations to regulate the price of rayon yarn has finally been fulfilled, as rayon yarn manufacturers agreed to fix the price twice a month against the current system of frequent and erratic hikes.
A meeting was held at Texvalley at Chithode here recently which was presided over by Pallipalayam Mill Owners Association president Palanisamy and Palladam Textile Manufacturers Association president Murugesan. Members of Tamil Nadu Federation of Power Loom Association led by its coordinator P. Kandavel and power loom owners from Erode, Palladam, Somanur and Avinashi took part.
Mill owners agreed in the meeting to fix the price of rayon yarn on the first and 16thof every month and also to form a committee to monitor the price of yarn. Also, the committee was empowered to hold meetings with the mill owners on discussing the issue of fixing yarn price once in a month and also to fix the price of yarn based on the price of fibre in the coming months.
Mr. Kandavel told The Hindu that the price of yarn stood at ₹220 a kg during Deepavali last year and rose to ₹280 a kg in 10 days. Though the price of fibre went up by ₹2 a kg a month, the price of yarn increased frequently in a month and we were unable to execute the orders resulting in huge losses, he added. “We were demanding fixing of yarn price once a month so that orders can be executed promptly without losses”, he added.
Fibre is supplied by a private company to 40 mills located in Pallipalayam in Namakkal district who in turn supply rayon yarn to two lakh power loom units in the State. “These mills meet 90% of our total yarn requirements in the State and our ldemand was finally fulfilled”, he added.
