In a blow to the textile industry, open-end spinning mills in Tamil Nadu have decided to temporarily halt operations from November 7 to November 30. This decision comes as these mills, which supply yarn to producers of a range of products including mops, mats, kitchen towels, lungis, etc., have been grappling with significant challenges for months.
G. Arulmozhi, president of the open-end spinning mills’ association, expressed his concerns during a press conference held in Coimbatore on November 4. Highlighting the dire situation, he revealed that the mills have been operating at only 50% of their capacity over the past six months, resulting in heavy losses. The mills, numbering almost 600 in Tamil Nadu, collectively produce yarn worth 260 crores daily.
The main raw material utilized by these mills is cotton waste, which is sourced from regular textile mills. However, Arulmozhi shared that the price of cotton waste has risen to 115 rupees per kilogram, while it should ideally be around 97 rupees per kilogram. To make matters worse, yarn prices have remained stagnant at 140 to 150 rupees per kilogram for the past five years, despite significant increases in power, labour, and raw material costs.
Arulmozhi also drew attention to the challenging market environment, citing that open-end spinning mills in Panipat, Haryana, are able to sell yarn at prices 30% lower than their Tamil Nadu counterparts. He emphasized the urgent need for the government’s intervention to rectify the situation. The demands include controlling or stopping the export of waste cotton, abolishing import duties on cotton, and relaxing quality control norms for synthetic fibres.
Furthermore, Arulmozhi urged the state government to support the textile industry by removing peak hour charges for LT CT electricity consumers and revising fixed charges. He called for the industry to be granted special status to reinvigorate textile activities in Tamil Nadu.
Meanwhile, in a related development, master weavers in Tiruppur and Coimbatore districts have also declared a strike beginning on November 5. This move further exacerbates the challenges faced by the textile industry in the state.
With the closure of open-end spinning mills and the commencement of the strike, industry players are now left with no choice but to implore the Central and State governments to take immediate action to alleviate the difficulties faced by the textile sector in Tamil Nadu. Failure to do so could result in severe repercussions, potentially jeopardizing one of the state’s most vital industries and risking widespread unemployment.
As stakeholders anxiously await a resolution, it remains to be seen whether the governments will heed these calls and implement measures to revive the ailing textile industry in Tamil Nadu.
