Power loom owners in Tamil Nadu’s (TN) Tiruppur and Coimbatore have decided to stop production for 14 days due to the rising prices of cotton, cotton yarn and poor lifting from the garment industry. Power loom owners will review the situation in between to decide if production should be resumed or not.
More than 300 large textile manufacturing and weaving units in Tiruppur and Coimbatore will not produce fabric in the period, according to industry sources. The units are struggling with poor demand from the garment industry and higher prices of cotton yarn.
The entire value chain is facing a grim situation due to high prices of cotton. Spinning mills were expecting cotton prices to come down during the arrival season, but the prices continue to remain high even after two months into the current season. The same situation prevails across the country, but Tamil Nadu’s industry is the first to protest and take measures to tackle it.
The hike in power tariff is also affecting profitability of power looms in Tamil Nadu as it has led to the costs of grey fibre and textiles to rise. State’s discom Tangedco had decided to hike power tariff in September.