There are more than 25,000 Powerlooms operating in Erode, Veerappanchathram, Chithodu, Lakkapuram and Solar.
Of these, Rayon fabrics are produced widely.
24 lakh meters of rayon cloth is produced per day and sent to various states including Maharashtra, Madhya Pradesh, Gujarat, Rajasthan, Delhi and Kolkata.
In this situation, due to the rising incidence of corona in Tamil Nadu, the receipt of orders from other states to Erode area has been affected, the loom owners said.
Kandavel, a spokesperson for the Federation of Tamil Nadu Powerloom Associations, said: Textile production have been affected by the imposition of curfew at night in the northern states.
This has reduced the number of new orders coming to Erode over the last 25 days.
There is also a problem in getting dues from the purchasets. So, Rs 100 crore worth fabric was stagnated in Erode with out sales and in the last 10 days the sale price of a meter of fabric came down from Rs 26 75 to Rs 25, causing great loss to producers. However, none come forward to buy the cloths.
And the fabrics, worth Rs 100 crore, produced over the last 15 days have piled up.
Due to this we have reduced the cloth production, he rued.