Closure of Bhiwandi, Malegaon powerloom units to impact textile business

The alarming economic situation at both the textile centres of Maharashtra has left about one million people jobless besides a loss of about 150 crore rupees every day as over ten lakh powerlooms in Bhiwandi and Malegaon – estimated to be over 50% of the total in India, have stopped production. The two textile centres have incurred huge losses due to market slowdown and closure of processing units in Rajasthan.

The closure of textile processing units in Pali and Balotra has led to low demand of grey cloth in the market. The prices of grey cloth have come down to 3-4 rupees per meter less than the actual manufacturing cost in last three months while the prices of yarn remain the same. Under this situation the weavers cannot run their powerlooms, said Aleem Faizee, Secretary of Malegaon Industries’ & Manufacturers’ Association (MIMA).
Prices of cotton grey cloth started falling in February this year when the Rajasthan Pollution Board axed about 800 textile processing units and forced them to stop work accusing them of violating the norms.

The situation worsened further when the markets opened after Eid break in July. This forced the weavers in Malegaon to bring the production to minimum. About 2.5 lakh powerlooms are running only 2-3 days in a week since last one month.

Likewise in Bhiwandi, tired of rising yarn prices and declining grey fabric cost, the weavers in Bhiwandi with about 08 lakh powerlooms, decided to stop production from August 16 to August 31.

More than 90% of the powerloom units in Bhiwandi are closed since Monday. The market situation is such that running powerloom units will be suicidal, said ex MLA Rasheed Tahir Momin.

The closure of powerloom units in Bhiwandi and Malegaon is bound to impact textile business in Surat and other part of the country.

Worried by the closed powerlooms units in Bhiwandi and Malegaon, the labourers who migrated the two centres from Bihar, West Bengal and Uttar Pradesh are planning to go back home.