The strike by the powerloom textile manufacturers, condemning the hike in yarn prices, from May 10 has left about 75,000 labourers jobless and caused a loss to the tune of Rs 100 crore, which includes production and stock.Somanur Powerloom Cloth Manufacturers’ Association had called for the strike pointing out that while the yarn rate continued to be high, the cost of cloth remained low in the market throughout the country. This made the manufacturers unable to buy yarn at higher rates, produce clothes and sell them at lower price.
Hence, in order to bring to the notice of authorities concerned, the members of the association have stopped buying yarn from mills.R Ponnusamy, president, Somanur Powerloom Cloth Manufacturers Association, said the price of yarn had been hiked to Rs 130 from Rs 120 per kg during the last one month. But the cost of the cloth has come down by Rs 2 per metre. While the yarn price has increased by 10 per cent, fabric price has decreased by five per cent. The loss for the manufacturers is 10 per cent. Survival of the manufacturers remains a question mark if the trend continues further, he said.He also said, ``Of the two lakh powerlooms in Somanur and nearby areas, around 1.75 lakh looms remain idle since Monday last. The production loss is Rs 3.50 crore per day. We used to buy yarn worth Rs 3 crore daily to manufacture clothes’’.