Erode East bypoll: Textile business hit by cash restrictions imposed under Model Code of Conduct

COIMBATORE: Cash restrictions owing to the Model Code of Conduct (MCC) in the Erode (East) assembly constituency have taken a toll on the textile business considered to be a driving force behind the largely rural economy in the district.

“Sales have been hit completely in the EKM Abdul Gani Textile Market also known as Gani Market ever since polls were announced. Traders from other states, who do business in bulk have stopped coming fearing cash seizure by election authorities. Usually, Pongal is the time when up to 70 per cent of the annual business would be done in the market. But this year, there was not even 50 per cent of the regular business due to polls,” said K Selvaraj, president of Erode Gani Market Weekly All Textile Merchants Association.

Traders wanted restrictions on carrying cash above Rs 50,000 to be relaxed to around Rs 2 lakh to facilitate the business of small traders. Some election authorities even disturb traders who have a proper bill for their purchase under the pretext of checking, say traders.

There are around 720 weekly wholesale shops in the market that would be buzzing with activity from Monday night to Tuesday as traders from Kerala, Karnataka, Telangana and Andhra Pradesh descend to make bulk purchases. Also, traders from Vellore, Chennai, Chengalpattu, Arani, Tiruvannamalai and across Tamil Nadu used to come for purchase.

Besides shops in the market, there are also hundreds of textile shops at Ashokapuram and Eswaran Kovil Street hit by lack of business.

“Almost 50 per cent of the goods have stagnated as compared to previous year sales at this time of the year,” said S Vinod, a trader in the market.

The market provides a source of livelihood to more than 5,000 textile manufacturers and 10,000 workers.

Another long-pending major demand of the textile sector with the state government is to establish a Common Effluent Treatment Plant (CETP) as textile goods produced in Erode are sent to faraway places like Surat and Ahmedabad for dyeing purposes increasing overall production costs.

“Pollution in Cauvery River and water bodies is caused by discharge of effluents illegally by some dyeing units could be stopped,” said K Selvaraj.

BUSINESS BITS

30% of sarees and 5% of dhotis are yet to be produced as per government order for PDS

30% in wages is demand of the weavers at present

Rs 24 is what weavers get for production of a veshti now and for a saree it is Rs 43

40,000 and above power loom units present in Erode and Namakkal districts produce around 1.44 crore sarees and dhotis

1 lakh people are employed by the power sector directly and another 1 lakh people indirectly

50% dip has been seen in Pongal business at Gani Market due to the existing MCC

700 weekly shops and 300 daily shops exist in Gani Market

Upgraded textile policy needed to resolve issues faced by the textile sector. Weavers demand CETP facilities and the implementation of marine discharge systems