Rayon Cloth production stopped in Erode

As the price of rayon cloth less than the purchase price of the yarn, the manufacturers stopped production for 7 days to avoid losses from Sunday.
Regarding this, Erode Powerloom Owners Association President LKM Suresh said:
Although the price of rayon yarn has not changed for the past one month, the price of 120 grams of fabric was Rs. 28 15 days ago. 

 Now there is a situation where the price in the market does not go even to Rs.26.As rains have started in the northern states, the sales have declined, and the prices of  rayon fabrics have decreased.  Currently, the loss is Rs 2 to Rs 3 per metre. So, it has been decided to stop production from July 3 to 10 to avoid this loss. 

As a result, more than 30,000 power looms producing rayon cloth in Erode Veerappanchatram, Chithod, Lakkapuram and surrounding areas will be shut down.  Due to this, the production of 20 lakh meters of cloth worth around Rs.6 crore will be affected every day and 1 lakh workers will be unemployed directly and indirectly.