Cloth production was stopped in over 50000 powerlooms in Erode.
They were functioning at Veerappanchathram, Chittodu, Lakkapuram, Solar and Ashokapuram etc and producing 24 lakh meters of rayon cloth per day which were being sent to various states including Maharashtra, Madhya Pradesh, Gujarat, Rajasthan, Delhi and Kolkata for making value added products.
In this situation, due to the rising incidence of corona in Tamil Nadu, the availability of orders from outside states to Erode area has been affected, according to experts.
In the last 30 days, Rs 200 crore worth of clothes have stagnated due to non-shipment.
In order to control the spread of corona in Tamil Nadu, a night curfew has been implemented from 10 pm to 4 am from April 20.
In Erode district the looms were operated on the basis of two shifts per day- from 8 am to 8 pm and from 8 pm to 8 am-helping 30000 workers.
Due to the night curfew, night shift was cancelled, affecting 50 per cent of production.
As a result, more than 15,000 workers lost their jobs.
The loom owners have decided to suspend full production from May 6 to 20 as new regulations have been enforced from today.
State President of the Federation of Tamil Nadu Powerloom Associations Suresh says ”Due to the night curfew, we have already reduced power generation production by 50 per cent since the 20th of last month and are operating in a shift mode.
In this situation, the Tamil Nadu government has announced more restrictions from today.
To protect our family members from corona infection and the welfare of the workers in the industry, we have decided to stop production completely from today until April 20.
We have also stopped production for northern states due to the increase in corona infection and stagnant fabrics.
From April 20 to May 5 nearly Rs 200 crore worth of fabrics are stagnant without sales with the loom owners.
The present shut down would hit Rs 7 crore worth production per day, he added.