Erode power looms, December 29: As many as 30,000 power looms have been closed for around 7 days starting from December 21 due to the rayon yarn price. These looms were used for the production of rayon cloth, as per news agency PTI report. Erode is a well-known textile production name and over 50,000 power looms function in districts like Kalingarayanpalayam, Veerappanchatram, Asokapuram and some other places. 30,000 power looms have a capacity to 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 also said that this closure will affect a total of 16.80 crore metres of rayon cloth production and about Rs. 40 crore worth of trade hit.