Malegaon Powerloom Units Shut Down

Industry news

Malegaon Powerloom Units Shut Down

Malegaon powerlooms cease operations indefinitely, 2.5 lakh workers affected The powerloom units in Malegaon have ceased operations for an indefinite period starting Tuesday. The decision will adversely affect more than 2.5 lakh workers engaged in these units. The 15,000 powerloom units in Malegaon – the second largest textile town after Bhiwandi in the state – produce 11,500 bales of grey cloth worth over Rs 45 crore daily. This cloth is sold in Rajasthan, Gujarat, Tamil Nadu, etc. Sajid Ansari, President, Malegaon Powerloom Udyog Vikas Samiti informed that various powerloom associations that are active in Malegaon have unanimously decided to stop operations indefinitely since their businesses have taken a major hit. “The two Covid waves and the lockdowns have taken a heavy toll on Malegaon powerloom owners, we are bleeding financially. Our finished product remains unsold due to weak demand. Added to that, the cost of yarn has skyrocketed. Given this bleak scenario, the powerloom owners are unable to sustain the operations,” said Ansari. He added that roughly 90% of the powerlooms have shut operations from Tuesday and the remaining will do so from Wednesday onwards. In a bid to find a solution to bring down the unviable costs of yarn, Malegaon powerloom cluster has unanimously demand that the Centre restart the mills operated by National Textile Corporation, so that the cluster can source yarn at lower rates. “To add to the woes of the industry, there is smuggling of grey cloth from Bangladesh via West Bengal. Such cloth is sold at a price lower than what we can offer. The Union government must curb this illegal activity,” demanded Ansari. The powerloom owners also want the state government to provide them subsidies to tide over the crisis and waive the energy bills for the past six months. Powerloom associations of Malegaon will meet soon to chart out the future course. Earlier this month, the powerloom cluster had decided to close their factories from June 8-14.