Fibres and Yarns | News & Insights

Tamil Nadu Powerloom Weavers Seek Relief from QCO Imposition

Published: November 15, 2024
Author: TANVI_MUNJAL

Powerloom weavers in Tamil Nadu have appealed to Chief Minister M.K. Stalin intervened and persuaded the Central government to reconsider its decision to impose a Quality Control Order (QCO) on viscose rayon staple spun yarn. The Tamilnadu Federation of Powerloom Associations has expressed deep concern over this move, highlighting the potential negative impact on the entire viscose textile chain, particularly the state’s powerloom industry.

Tamil Nadu boasts a significant powerloom sector, with nearly 25 lakh powerlooms, a substantial portion of which (two lahks) have transitioned from cotton weaving to viscose over the years. This shift has been driven by the growing demand for viscose-based textiles. The state’s powerloom industry is heavily reliant on viscose staple yarn, with approximately 70% of the yarn produced by over 80 textile mills being consumed by Tamil Nadu’s powerlooms.

The imposition of a QCO on viscose fibre last year has already had a detrimental effect on the industry. Due to a monopoly in the production of viscose rayon staple cut fibre, mills faced shortages and were compelled to import the fibre at a lower cost compared to domestic prices. However, the Central government’s decision to introduce a QCO on fibre curtailed imports, leading to sluggishness in the entire viscose textile chain.

The recent notification in September 2023 proposing a QCO on viscose yarn has further exacerbated the situation. The combination of a dull market and the impending QCO on yarn has forced many powerloom owners to sell their equipment as scrap.

The Tamilnadu Federation of Powerloom Associations has urged Chief Minister Stalin to take up this critical issue with the Central government and advocate for the removal of QCOs on textiles. They argue that such restrictive measures are not implemented in any other country and are detrimental to the growth and competitiveness of the Indian textile industry.

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