While the production of polyester fabric faced critical situation amid the ongoing agitation by textile workers, flooding situation due to incessant rain in Tamil Nadu has further made a further adverse impact on the textile business in the state.
Industry insiders estimate the order cancellations to be worth Rs 300 crores by buyers in Chennai in the past fortnight because of the non-stop rains. Out of Rs 110 crores worth of daily supply of saris, home textiles and dress materials from Surat, textile products to the tune of Rs 30 crores are despatched to markets in southern India. Supply to Chennai has come down to 80 per cent in the last few days because of the situation.
Surat, which happens to be the major supplier of fabrics to the southern states is facing the worst with weak demand for polyester fabric and payment defaults to the tune of over Rs 150 crores coupled with the ongoing workers' agitation. Over 3.5 lakh powerloom machines have stopped work in over 12,000 units in Jolva, Palsana and Laskana in the last two weeks because of the workers’ demand for wage hike.
