NAMAKKAL: Power loom units at Rasipuram here stopped operations on Friday citing rising yarn prices.
Rasipuram and surrounding villages including Vennandur are known for towel production. More than 30,000 workers are engaged by 7,000-odd power loom units in the region.
While 50kg yarn was sold for Rs 8,500 a few months ago, it is now sold for Rs 12,500, said Kumaran Kalaivanan, general secretary of the Salem Zonal Power Loom Workers Association. “The price hike has directly affected cost of production. Hike of Rs 4,500 per 50kg will push towel prices by Rs 15,” he told TOI.
Power loom unit owners said that clients who had given orders weeks ago are hesitating to bear the additional cost. “A towel that was quoted for Rs 10 at the time of the order, now cost Rs 25 due to yarn price hike. Clients refuse to give the hiked price even after we showed yarn procurement bills,” Kalaivanan said. “Unit owners have been facing huge losses for the last three months.”