The Hindu Business Line : Job-work powerlooms seek hike in rates

THE predominantly grey cloth producing powerloom clusters in Coimbatore are in the throes of uncertainty in their production schedule as the owners of powerlooms engaged in job-work have sought a rise in conversion charges.

The job-working powerloom-unit owners in at least six clusters have put up the demand for an upward revision in the hire charges, causing anxiety among the textile trade outsourcing supplies from this region.

The job-working units have started putting pressure by halting the weaving operation since Sunday, powerloom industry sources in Somanur and Palladam, the two key weaver-clusters, said.

The sources said the Coimbatore district job-working powerloom owners association has advised its members not to accept any work orders from the textile producers till the demand for a 75 per cent hike in the conversion charges is met.

The powerloom textile producers-cum-traders who regularly hire looms for jobbing say that the conversion charges paid by them is market-driven dependent on the demand and supply of fabrics and hence they would not accept a static/binding arrangement on hire charges.

"Already, considering the market condition, our members, hiring the looms for job work, have on their own given an increase up to 20 per cent over the prevailing conversion charges for the current weaving season.

Any further increase in the rate will prove unviable for the trade," said Mr Eswaramurthy, President of the Coimbatore District Powerloom Cloth Producers Association.

The stoppage of powerlooms by jobbers is reported in the seven clusters of Somanur, Palladam, Avanashi, Sevur, Thekkalur, Pudupalayam and Kannampalayam.

The powerloom industry sources maintain that only the units, which run entirely for jobbing, have stopped working while the those owned by the textile producers are running normally.

It is said of the estimated 1.5-lakh powerlooms working in this district, the number offering entire capacity for job work is around one lakh.

The average daily grey fabric production from each of these powerloom units in the area is estimated at 60 mtrs.

Though the conversion charges paid by major textile producers who supply the inputs needed for the fabric production do often fluctuate, the bench-mark hire charges agreed by both sides in the last settlement were Rs 2 per metre in case of dyeable quality fabric and Rs 1.90 per metre for printing quality fabrics (for the type of weave pattern in 30x30 - 68 reed x 68 picks x 50 inches).

According to the powerloom industry sources, with largescale induction of wider-width looms by the jobbers in recent times, there has been lot of churning in the job-working sector in the belt and conversion charges for these patterns (say 20x20 - 60x60x63 weave type) offered by the major producers hiring weaving capacity are too said to be hovering between Rs 2.40 per metre and Rs 2.80 per metre.

But again based on the volume of work orders and market demand for specific weave pattern/availability of loom, the rates would change.

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