CHENNAI: Textile manufacturers in Tirupur's Palladam town have decided to cut production by 50% from today (April 6) after large volumes of grey fabric remained unsold due to the ongoing Gulf war.
Export demand has dropped sharply, with foreign buyers holding back imports, pushing the sector into a crisis, said a Daily Thanthi report.
Industry representatives said cotton prices have surged to Rs 7,000 per kg, while polyester and rayon costs have risen by over 30%. Despite this, manufacturers are unable to increase fabric prices, worsening losses. They urged the Centre to remove the 11% import duty on cotton and regulate yarn exports, warning that production may be halted completely if no relief is provided.
Around 2.5 lakh powerlooms and 20,000 shuttle-less looms operate across Tiruppur and Coimbatore, producing nearly 2 crore metres of grey fabric worth Rs 100 crore daily. However, with year-end financial closures and a halt in new orders, stocks have piled up, severely affecting sales and threatening the livelihood of lakhs of workers.