Coimbatore powerloom owners to stop production on rising yarn prices

Coimbatore: Powerloom owners in this city and nearby Tirupur District will stop production from Wednesday protesting against fluctuating yarn prices, which they claimed alleged has seriously profit margins.

"The increase in yarn prices for the last few months has seriously affected the profit margin of powerloom owners, who have a total of over two lakh powerlooms in both districts," Velusamy, Secretary of the Powerloom Job Workers Association, said.

The strike will result in loss of business worth Rs 200 crore and production loss of 85 lakh metres daily, affecting both domestic and export business, besides five lakh workers, he said.

The owners--directly taking orders from cloth traders,job workers and also those on contract--also demanded that the Government bring down VAT on yarn from five per cent to two per cent to bring down yarn prices.

They also sought a ban on export of waste cotton, which could help further decrease in prices. A delegation is already in Delhi to discuss the issue
with the ministries concerned, Velusamy said.