An emergency meeting held in the Coimbatore region of India has seen powerloom cloth producers cut cotton cloth production in half.

The decision by members of the Coimbatore District Own Powerloom Cloth Manufacturers Association was made in light of the rise in cotton yard prices, which have risen by 500 Rupees to 700 Rupees per 50kg bundle.

The rise in yarn prices has not been met by a rise in price for the cloth, and many of the powerloom operators cannot afford to continue producing the same volumes.

The Association has called for the central Indian government to help keep the price of cotton yarn in control, and has asked for a cut in the rate of central excise duty on yarn from nine per cent down to five per cent and a withdrawal of customs duty on cotton imports.

If the prices continue unchecked then weavers in Tirupur, Palladam, Erode, Thiruchengodu, Komarapalayam, Karur, Salem and Madurai may also be affected.