COIMBATORE: Grey fabric manufacturers in Coimbatore and Tirupur have initiated a 50 per cent reduction in production, starting Wednesday (February 11), following a steep increase in yarn prices.
It is to be noted that yarn prices have increased by 20 to 25 per cent over the past ten days. “We decided to halt production by up to 50 per cent as the price surge cannot be entirely levied on the fabric. Traders may refuse to purchase the fabrics at a higher price, resulting in unsold textile stocks worth around Rs 100 crore,” said K Sakthivel, co-ordinator of Tamil Nadu Textile Manufacturers Association.
On the first day, the grey fabric manufacturers in Coimbatore and Tirupur incurred a production loss of Rs 50 lakhs. Normally, around one crore metres of fabric are produced daily, and now, it has been reduced to 50 lakh metres. The manufacturers emphasised that production is being partially maintained to ensure that workers are not adversely affected.
“The government should intervene and take efforts to reduce yarn prices. We have decided to reduce production by 50 per cent for the next 15 days. If the yarn prices do not come down even after this move, then the manufacturers may be forced into a complete production halt,” Sakthivel added.
The manufacturers also warned that several lakhs of workers employed in the textile sector face the risk of job loss, if the production halt by 50 per cent continues further.