Power loom owners in Coimbatore and Tirupur Districts have announced to stop production of fabrics from tomorrow, in view of fluctuation of the prices of yarn.

The increase in the yarn prices for the last few months has seriously affected the profit margin of power loom owners, who have a total of over two lakh power looms in both the districts, sources in the Power loom Job Workers Association, said.

The strike will result in business worth Rs.200 crore and production loss of 85 lakh metres daily, affecting both the domestic and export business, besides five lakh workers, they said.

The owners – directly taking orders from clothe traders, job workers and also those working on contract – also wanted the Government to bring down the VAT on yarn from five per cent to two per cent, to bring down the yarn prices.

Besides, they seek to put a ban on export waste cotton, which could help further decrease in the prices, the sources said.

A delegation is already in Delhi to discuss the issue with the concerned union ministries, they said.