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TN weavers worried over fall in demand for grey fabrics

G. Gurumurthy

COIMBATORE, Dec. 14

THE uptrend in cotton and cotton yarn prices on the one-hand and the slowing down in demand for grey fabrics at the other have put the weavers in Tamil Nadu in a tight spot.

The powerloom weavers in Palladam, Tirupur, Avanashi and Somanur felt that the fabric movement both in export and local markets had begun to decelerate after October even as the prices of cotton yarn, their primary raw material, started spiralling and, a t the same time, forcing the weavers to slow down their production. They feared the market might not absorb any increase in price of fabrics produced out of cotton yarn bought at higher prices.

``All coarser yarns of up to 40s count, especially for the count range between 16s and 40s, have registered increase in their prices by 10 to 15 per cent since November, whereas, the price of cotton grey fabric price (for 68 x 68 x 50 inches weave) has t umbled down to Rs 16.50 per metre from Rs 16.75 per metre'', said Mr Senthil Kumar, powerloom cloth producer and exporter from Palladam region.

Though the weavers were aware that the increase in yarn prices was propelled by the rising raw cotton prices, they felt that the spurt in cotton yarn prices at the beginning of the new cotton season itself has upset the market sentiment for the fabric p roducers. This will spell uncertainty in the market, thereby forcing the weavers to reduce their loom activity from next month, said Mr Natchimuthu, former President of the Palladam-based Powerloom Textile Traders Association.

The weavers from the Palladam-Somanur-Avanashi region forming a major powerloom grey cotton fabric producing centre in Tamil Nadu account for substantial volume of grey fabric exports. But these weavers are worried over the slow down in export of late, e specially to the US market exports. ``Up to July, the cut-off price for grey fabric for the US export stood at Rs 32 per sq.mt. indicating the export demand for the fabrics; but today, the quantity equivalent to 20 million sq.mt. is freely available fo r the US quota'', said Mr Senthil Kumar who is also a member of the Powerloom Development and Export Promotion Council's (PDEXCIL) committee of administration.

The slow-down of the US market, a major buyer of Indian grey fabrics and the weakening euro are the worrying factors for Indian grey fabric exporters. Added to this, the festival mood in the South-east Asian regions, especially in Indonesia, Thailand and African countries, which source fabrics from India for garmenting, has also dampened the trade enquiries as no fresh negotiations were being made now, though the shipments are still going on.