A hike in prices of rayon yarn has led to the closure of 30,000 powerlooms across Erode in Tamil Nadu. Renowned for its textile production, Erode has over 50,000 power looms, of which at Kalingarayanpalayam, Veerappanchatram, Asokapuram and some other places, 30,000 power looms produce 24,000 metres of rayon cloth a day. As per Sureshj, President, Erode Powerloom Cloth Producers Association, the cost of 120 gm and 150-gm rayon yarn used for the production of the rayon cloth has been increased by Rs 26 for a cone as a result of which the cost of production has been increased by more than 20 per cent.

Hence, the association decided to stop down the shutters of 30,000 power looms in the district for seven days from December 21 to December 27. This closure is likely to affect 6.80-crore meters of rayon cloth production and about Rs 40 crore worth of trade.