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Coimbatore, Jan. 30

THE job-working powerloom units in the district which had stopped loom operations for the past two weeks, demanding hike in the fabric conversion charges, resumed work from Saturday. This follows an intervention by the State Government authorities, led by the State Minister, Mr Se Ma Velusamy.

Mr Velusamy, along with a team of officials, held talks with the representatives of the striking job-working powerloom owners association before hammering out a solution. According to the settlement arrived at, the job-working powerloom owners would get a 19 per cent hike over the prevailing weaving charges for export varieties of fabric and 23 per cent increase in the rate in the case of local varieties of grey fabric for which the inputs are supplied by textile traders/master-weavers.

"Though the outcome of the meeting may not be to our fullest satisfaction, we have chosen to accept the offer announced considering the prevailing situation in the powerloom industry," said Mr C. Palanisamy, President, Coordination Committee for the job-working powerloom owners' associations.

Most of the job-working powerloom owners in the key weaving clusters of Somanur, Palladam, Avinashi, Thekkalur, Pudupalayam and Tirupur originally sought a 50 per cent hike in conversion charges paid to them by the textile traders citing rising overheads. But this demand was not accepted by the textile trade and the master-weavers who maintained that the conversion rates are the functions of the market based on demand and supply of the loom capacity vis-à-vis the availability of orders for fabrics. They had also contended that considering the good order position, they had already effected an increase of 15 per cent in the conversion charges payable to the jobbers this time.

(This article was published in the Business Line print edition dated January 31, 2005)
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