Open-end spinning mills in Coimbatore have started a strike in opposition to rising power and raw material prices.
The mills use pet bottles, cotton and fabric scraps to make yarn. The manufacture of yarn, which includes using power looms, handlooms, and home textiles, involves more than 640 members.
“Cotton prices have increased in an unusual way. Our starting material is cotton waste. According to M Jayabal, state president of the Recycled Textile Federation, the price of cotton waste has effectively increased from 50% to 75% as a result of the rise in cotton prices.
“In addition to this, the State government increased electricity prices, which strained our operations. Jayabal, using electricity between the hours of 6 a.m. and 10 p.m. during peak times resulted in an extra 15% fee.
“Prior to the hike, we paid a total of $3,920, or $35 per kilowatt, for 112 kilowatts under the LTCT. We are now paying 153 cents per kilowatt, bringing the total to 17,200. Additionally, using electricity from 6 to 10 am to 6 to 10 pm during peak times resulted in an extra 15% fee.
“Due to the increase in cotton and electricity prices, we are unable to operate the industry. We ran out of cash, and the operators were losing close to $4 to $5 lakh per month,” he continued.
The state-wide strike by mill owners has started, and they are calling on the state government to lower electricity costs and deal with the issue of rising raw material prices.
