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Power-loom units on strike, seek old conversion rates

Aug '09
About 200,000 power-loom units, largely the job working units at the borders of Coimbatore and Tirupur Districts were on a strike since August 5, 2009. This strike is to protest against the 10 percent reduction in the conversion charge of yarn.

As per the contracts given by the power-loom cloth dealers, the job-working powerloom units convert yarn into fabric. As the talks among power-loom units and cloth dealers were not reaching any conclusion, these working units in Coimbatore region decided to go on strike.

These units are seeking rates which were paid to them earlier for conversion of yarn into fabric and also exemption from the Rs. 80 lakhs fine imposed by the Tamil Nadu Electricity Board (TNEB) for exceeding power consumption, informed President, Coimbatore Job working Power-loom Units Association, Mr. Kumaraswamy.

The conversion rate per meter of fabric is Rs. 12-20, depending on the quality. These rates have been reduced by 5 to 10 percent on account of plunge in demand due to economic slowdown. “It is not possible commercially to give orders at previous rates”, said Mr. Duraiswamy, Joint Secretary, Coimbatore District Power-loom Dealers' Association.

Around 50 meters of fabric can be produced at a power-loom, at an average cost of Rs. 15 per meter. All the power-loom units in the region produce Rs. 15 crore worth of total fabrics per day. Around 65 percent of the overall fabric produced in the region is exported directly or indirectly to the global markets, mainly to African markets.

As per Duraiswamy's figures, these exports have now slipped down by 25 to 30 percent due to recession.

Fibre2fashion News Desk - India

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