Thirty-thousand power looms used for the production of rayon cloth here have been closed for seven days from Monday, December 21, due to rayon yarn price hike, as per a report by news agency PTI.
Erode is noted for textile production and more than 50,000 power looms function in the district, of which at Kalingarayanpalayam, Veerappanchatram, Asokapuram and some other places, 30,000 power looms produce 24,000 metres of rayon cloth a day.
President of Erode Powerloom Cloth Producers Association Suresh was quoted by news agency PTI as saying, “The cost of 120-gram and 150-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 power looms in the district for seven days from December 21 to December 27,” he further told PTI.
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.
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