Business Standard

Power woes, input costs hit looms

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Chandan Kishore Kant Mumbai
Inadequate power supply at high rates and rising raw material costs are taking a toll on the domestic art silk weaving industry.
 
As the textile industry goes through a phase of modernisation, the power supply is not keeping pace with the increasing requirements, leaving the powerlooms idle.
 
There are about 20 lakh powerlooms across the country, with half of them in the synthetic textile sector. The number of handlooms are much higher.
 
"Demand for broad-width looms is increasing in tune with domestic and international demand. It is not possible to replace the old narrow-width looms quickly. Moreover, uninterrupted and good quality power is required to run these new projectile powerlooms, which operate fast and are broad. However, they are not available easily," said K A Samuel, secretary general, Federation of Indian Art Silk Weaving Industry.
 
Industry experts opine that the powerloom sector can make the cheapest fabric. The last five years have seen an increase of over 14 per cent in the number of powerlooms in the industry.
 
"Shortage of power supply needs to be addressed and an equally important concern is the high power rates. If more powerlooms have to come, it will require more power. At present, a third of the required power is not met.
 
Profit margins are thin and, as a result, looms are used only in two shifts, resulting in around 25 per cent of the powerlooms staying idle," added Samuel.
 
The increasing prices of raw materials procured from indigenous spinners are another concern for the synthetic textile industry.
 
Between March and August this year, the average raw material prices increased by 14.41 per cent from Rs 96.98 a kg to Rs 110.96 a kg.
 
"If there is stability in prices, it will help us "� no matter whether they go up or down. However, yarn manufacturers keep revising the rates in very short durations. This affects the business, including exports," he added.
 
Exports of synthetic fibres in 2005-06 registered a decline of 15 per cent worth Rs 703 crore against the previous year's exports.

 
 

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First Published: Nov 29 2006 | 12:00 AM IST

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