Malegaon Powerloom Sector Announces Five-Day Shutdown from 15 July

Around one lakh powerloom machines to remain idle from 15 to 20 July as fabric stocks rise and demand weakens

The cotton fabric processing sector in Malegaon has announced a five-day shutdown of approximately one lakh powerloom machines from 15 July to 20 July. The decision follows the closure of textile processing centres in Jodhpur, Pali and Balotra in Rajasthan due to pollution-related issues, resulting in a buildup of processed fabric and reduced market demand.

The temporary closure is aimed at regulating production and preventing further accumulation of unsold fabric stocks.

Around one lakh cotton fabric powerloom machines in Malegaon will remain shut for five days, from 15 July to 20 July, following a decision taken by local powerloom factory owners.

The move comes after textile processing centres in Jodhpur, Pali and Balotra in Rajasthan were closed following pollution-related issues. With processing activities suspended, finished fabric has accumulated in warehouses, affecting demand and putting pressure on fabric prices.

According to the report, a meeting of powerloom factory owners was held on Saturday night (12 July) in the Jakat Naka area of Malegaon. During the meeting, participants decided to suspend production for five days in an effort to regulate output and reduce further stock accumulation.

The report states that the city has approximately one lakh powerloom machines, with each machine producing around 100 metres of cotton fabric per day. This results in an estimated one crore metres of fabric being produced daily under normal operations. The temporary shutdown is expected to reduce fresh production during the closure period.

Impact on Workers

The report notes that the shutdown is expected to affect the livelihoods of a large number of workers employed in the powerloom sector. It also mentions that many factories had already been operating intermittently due to weak demand.

Following the decision, several factory owners have reportedly paid workers their pending wages for the previous week before the shutdown period.

Industry Concerns

The report highlights that fabric stocks have accumulated in warehouses because processing activities remain suspended in Rajasthan. Industry representatives believe that even if the processing centres resume operations immediately, it may take at least three months for the existing stock to be cleared.

The shutdown has been described as a temporary measure intended to prevent further inventory buildup until processing activities resume and market conditions improve.