Tamil Nadu’s Erode VhisaithariUrimayalargal Sangam (Erode power loom owners association) recently urged the Indian Government not to impose import duty on man-made fibre (MMF) viscose yarn as it will affect the sector. In a letter to textiles minister Smriti Irani, it said it has learnt about plans to raise the import duty on MMF yarns or ban it completely. The power loom industry in the region, spread across Erode, Coimbatore, Tiruppur, Salem and Namakkal districts, has been producing cotton and rayon fabrics and selling to markets in New Delhi, Faridabad, Mumbai, Jaipur, Ahmadabad and Surat.

Due to frequent increase in the price of yarn in the domestic market, power loom units started importing rayon and modal yarn from China, Vietnam and Indonesia which was cheaper by Rs. 15 to Rs. 20 per kg, a top South Indian newspaper reported citing the letter. Hence, more units started importing the yarn forcing the spinning mills in the domestic market to reduce price, said the letter.