Stating that power loom unit owners are facing a loss of ₹ 3 per metre for producing rayon fabric, the Erode Power Loom Owners Association has declared that over 30,000 units producing the fabric will halt production from July 3 to 10 in the district.
A release from Association president L.K.M. Suresh said discussions were held with power loom unit owners at Lakkapuram in Chithode after which a decision to halt production was taken. He said the unit owners were facing a minimum loss of ₹ 2 to 3 per metre at present and they were unable to bear the loss.
“Since we are not getting profit for the manufactured fabrics and the rainy season is to begin in North India, we have decided to halt production,” Mr. Suresh said. He added that the price of fabric was lower than the purchase price of yarn and the delay in the releasing order for manufacturing free dhotis and saris by the State government had compelled them to halt production for a week.
Units functioning at Veerappanchatiram, Chithode, Lakkapuram and surrounding areas that produced rayon fabric would not function, affecting one lakh workers directly and indirectly, he said. Based on the market condition and the State government’s release of order, members would meet on July 8 to decide the further course of action, he added.
