Erode SME powerloom units resume operations

After observing a 6-day long strike that began on April 26, 2010, several SME powerloom units in Erode have called off the strike and resumed production.

"Several Erode-based small-scale powerloom units went on a strike to express their resentment against spiralling yarn prices and crippling power cuts in Tamil Nadu, which have made it difficult for them to continue their operations smoothly, subsequently leading to loss of productivity and erosion of their margins," said Jyoti Baheti, proprietor of Ashish International, a small-sized powerloom textile unit in Erode.

As per official sources, more than 40,000 powerlooms, small and medium, spread across different parts of Erode district recommenced their production activity recently after withdrawing the strike, thereby also providing relief to small weavers engaged in the sector.

"The Central government's recent announcement on the withdrawal of Duty Entitlement Pass Book (DEPB) benefits provided to cotton yarn exporters at the rate of 7.67% as well as difficulties faced by the families of the weavers due to the strike prompted powerloom units to call off the strike and re-start operations," said superintendent to the assistant director of handlooms, Erode District, who did not wish to be named.

Resumption of production by small-scale powerloom units is expected to boost the overall industrial production of the district and provide a breather to several weavers and temporary workers, who were rendered jobless because of the strike.

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