Latest News | 30,000 Powerlooms Fall Silent as Rayon Yarn Price Goes Up

Erode (TN) Dec 21 (PTI): Thirty-thousand powerlooms used for production of rayon cloth here have been closed for seven days from Monday, December 21, due to rayon yarn price hike.

Erode is noted for textile production and more than 50,000 powerlooms function in the district, of which at Kalingarayanpalayam, Veerappanchatram, Asokapuram and some other places, 30,000 powerlooms produce 24,000 metres of rayon cloth a day.

President of Erode Powerloom Cloth Producers Association Suresh said, The cost of 120 gram and150 gram rayon yarn used for the production of the rayon cloth has been increased by Rs 26 for a cone as a result of which the cost of production has been increased by more than 20 per cent."

"But, the buyers are reluctant to buy citing the increase in price. So, we decided to stop down the shutters of 30,000 powerlooms in the district for seven days from December 21 to December 27," he said.

Because of the closure, a total of 16.80-crore metres of rayon cloth production would be affected and about Rs 40 crore worth of trade hit, he added.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)