Tamil Nadu weaving loom industry faces slump due to low orders, rising costs

The automatic weaving looms across Coimbatore, Tiruppur, Erode, and Salem districts, numbering between 35,000 and 40,000, are facing a severe downturn due to order reduction, lower fabric prices, and escalating losses. According to Govindaraj of the Shuttleless Loom Cloth Manufacturers Association, these looms are operating at only 60 to 70 per cent capacity, as demand for fabric remains low. The woven fabric, primarily used in home textile products like bed spreads and curtains for export to the US and EU, have seen little recovery in demand.

The price of fabric has dropped by Rs 1.5 to Rs 2 per meter compared to two years ago. Additionally, smaller weavers are struggling to compete with other states where power subsidies and lower fabric costs make production more affordable.

Spinners in Punjab and weavers in Rajasthan offer better quality at lower price further compounding the issue. In Tamil Nadu, power costs have risen by Rs 2 per unit, while interest rates have also increased by 2 per cent. Despite investments in rooftop solar power, many small weavers still face high network and fixed charges.

With larger manufacturers benefiting from renewable energy sources, smaller units are unable to compete. Industry players are urging the government for immediate support to make their operations more competitive and prevent further losses.