A drop in the prices of raw material in the form of cloth in the national market is being cited as the main reason for the closure of Sircilla Textile Park
Published Date – 07:45 PM, Sat – 6 January 24
File Photo
Rajanna-Sircilla: The Sircilla Textile Park has been closed temporarily. Cloth manufacturers, who were operating weaving units in the park, took the decision stating that they were not getting remunerative prices for the cloth produced by them. The park was closed on January 2.
A drop in the prices of raw material in the form of cloth in the national market is being cited as the main reason for the closure of the park. This was due to a crisis in the textile sector. A huge quantity of cloth has been stocked in the country due to lack of exports, manufacturers said, adding that this stock had grown ever since the Russia-Ukraine war.
Cloth manufacturers, who used to get Rs 14 to Rs 15 per a metre of cloth, were now unable to get more than Rs 12. Weavers, who were already in trouble after the increase in the prices of yarn and chemicals, closed the park unable to bear further losses. Moreover, polyester cloth stocks worth about Rs 25 crore were already in the park.
About 1,500 to 2,000 people are employed in the park, established in 60 acres between Sarampalli and Baddenapalli of Thangallapalli mandal in 2002-03. All of them lost employment with the closure of the park. Besides 165 industrial units, 27 commercial units were being operated in it. In 115 units, 1,475 modern Rapier looms were being utilized to weave cloth.
Earlier, manufacturers used to depend only on private orders. In order to provide employment to weavers, the past State government had given Bathukamma sarees, Ramzan and Christmas orders to the units being operated from the park. Besides government orders, power bills of powerlooms from 2010 to 2014 as well as 2015 to 2020 were also reimbursed.
As they got government orders, manufacturers stayed away from private orders. They are now facing troubles as private orders were also very little. Earlier, Sircilla cloth was supplied to Tamil Nadu, Gujarat, Chhattisgarh, Ahmedabad, Kerala and Delhi. This is now confined to only Surat of Gujarat and Bhiwandi of Maharashtra. Speaking to Telangana Today, Textile Park Cloth Manufacturers Association President Annaldas Anil said the park was temporarily closed due to the drop in prices of cloth. Informing that cloth manufacturing units in other places of the country were already closed, he said they had closed the units unable to bear further losses.
Informing that Bathukamma saree bills worth Rs 150 crore was pending with the government, he wanted the government to provide subsidy on power since the cloth was being weaved on powerlooms. In Bhiwandi and other places, power was being supplied at Rs 3 per unit. However, Rs 8 was being charged here.
The issues would be discussed with officials in a meeting scheduled to be held on Monday, he said.
