TN Open-End Spinning Mills Warn of 50% Production Cut Amid Rising Cotton Waste Costs

Over 250 Tamil Nadu mills cite pressure from cotton waste prices; industry body seeks government intervention

More than 250 grey yarn manufacturing open-end (OE) spinning mills across Tamil Nadu have warned of a 50 per cent reduction in production from next week if cotton waste prices are not reduced further, according to the Open-End Spinning Mills Association (OSMA).

Open-end spinning is a technology used to produce yarn without using a spindle, with cotton waste serving as the primary raw material. According to OSMA President G. Arulmozhi, OE mills have been affected by the abnormal increase in cotton waste prices over recent months, impacting profitability.

During May, Comber Noil, a key cotton waste raw material used by OE mills, reached a peak price of ₹140 per kg, creating financial pressure on manufacturers. The association noted that after the Centre removed the 11 per cent import duty on cotton on May 31, cotton prices declined significantly from about ₹195 per kg to ₹172 per kg, a drop of nearly ₹23 per kg.

However, despite the decline in cotton prices, spinning mills reduced Comber Noil prices by only ₹10-15 per kg. According to OSMA, OE mills have demanded a further reduction.

The association stated that if prices are not lowered during the current week, all grey yarn OE mills have collectively decided to reduce production by 50 per cent from next week. OSMA said the issue affects not only the 250 grey yarn-producing OE mills but also around 350 other OE mills that consume pre-consumer garment cutting waste and polyester fibre derived from recycled PET bottles.

More than 100 vendors across India supply cotton waste and other raw materials to these mills, either directly or through spinning mills.

Grey OE yarn produced by these mills is widely used by exporters in Karur and by powerloom manufacturers in textile hubs such as Somanur, Palladam, Avinashi and Erode. The yarn is converted into a range of products including towels, lungies, jeans, bedspreads, nighties, petticoats, T-shirts, socks, kitchen linen, floor mats and cleaning mops.

The association has also resolved to seek the intervention of both the State and Central governments to develop a long-term solution to recurring volatility in cotton waste prices.