Bhiwandi power looms to shutdown for 20 days from Nov 1

Bhiwandi: The power loom units in Bhiwandi will fall silent from November 1 to 20 due to severe recession, and in a bid to save operating costs of the units, the local factory owners association said. Earlier this week, Vyapari Ekta Group held a meeting of the power loom factory owners and contractors at Oswalwadi Hall at Anjurphata and decided to keep all units closed for 20 days. Over 700 people attended the meeting.

Saradram Sejpal, spokesperson, Power Loom Association, said, “Bhiwandi has close to seven lakh power loom machines and around 10 lakh workers are employed in two shifts in these units. “ Sejpal said the power loom industry has been facing a recession as there are no fixed prices for yarn and clothes. “The rate fluctuates, which causes heavy loss,” he said.

Explaining the two major causes of recession, Mannan Siddiqui, Shantinagar Power loom Association, said, “Firstly, the yarn and cloth being imported from China is cheaper and there are no takers for our material. Secondly, the rates for yarns and clothes are not fixed rates and keep fluctuating.”

Siddiqui said the power loom industry in Bhiwandi has been facing a downturn for some time and has led to downsizing. “In 2007, there were 14 lakh power loom machines in Bhiwandi. But now, only seven lakh machines survive, and the rest were sold to scrap dealers in the aftermath of the 2016 demonetisation,” he said adding that the industry leaders made several attempts to reach out to Arif Nasim Khan, former state textile minister from the Congress and Smriti Irani, former union textile minister from BJP, but got no response.

“The main reason for closing the power loom industry for 20 days is that we want the government to realise the loss from GST collection from the Bhiwandi power loom sector. It is perhaps possible that they will then pay attention to these issues,” said Siddiqui.

The excise duty on export of yarn and clothes was around 17% during the Congress-led UPA regime, but it has been increased to around 25% during the BJP reign, claimed Siddiqui. Earlier, around 50 to 60% of cotton clothes made in Bhiwandi were exported to foreign markets, but now the power loom sector has been languishing without a solution. According to sources, 25% of power loom workers have left for their native states of Uttar Pradesh, Bihar, Orissa, and West Bengal, and the 20-day shutdown could also force 25% more to travel to their native villages.