Cotton waste comber noil, which is primary basic material for OE mills. The association explained that after the Centre eliminated the 11 % import task on cotton on May 31, cotton rates fell from 195 per kg to 172 per kg, a decrease of 23 per kg. Regardless of the sharp fall, spinning mills minimized Comber Noil costs by just 10-15 per kg.|Image Credit: Special Arrangement
More than 250 grey yarn production open-end (OE)spinning mills throughout Tamil Nadu have actually cautioned of a 50 percent decrease in production from next week if cotton waste costs are not minimized even more, according to the Open-End Spinning Mills Association (OSMA).
G. Arulmozhi, President of OSMA, stated OE mills have actually been impacted by the unusual boost in cotton waste rates over the previous couple of months, which has actually deteriorated success. Open-end spinning is an innovation for developing yarn without utilizing a spindle with cotton waste as the primary basic material.
Throughout May, Comber Noil, an essential cotton waste basic material utilized by OE mills, putting tremendous monetary pressure on makers.
The association mentioned that after the Centre eliminated the 11 percent import responsibility on cotton on May 31, cotton rates fell considerably from about 195 per kg to 172 per kg, a decrease of almost 23 per kg. Regardless of the sharp fall in cotton rates, spinning mills have actually minimized Comber Noil rates by just 10-15 per kg. OE mills require a more decrease.
“For OE mills to stay feasible and competitive, cotton waste costs need to show the decrease in cotton costs. The present prices structure is unsustainable for the sector,” Arulmozhi stated.
OSMA stated that if rates are not lowered throughout the existing week, all grey yarn OE mills have actually jointly chosen to cut production by 50 percent from next week.
According to OSMA, the concern not just impacts the 250 grey yarn-producing OE mills however likewise around 350 other OE mills that take in pre-consumer garment cutting waste and polyester fiber originated from recycled PET bottles. More than 100 suppliers throughout India supply cotton waste and other basic materials to these mills, either straight or through spinning mills.
Grey OE yarn produced by these mills is extensively utilized by exporters in Karur and by powerloom makers in fabric centers such as Somanur, Palladam, Avinashi and Erode.
The yarn is transformed into a variety of items consisting of towels, lungies, denims, bedspreads, nighties, petticoats, T-shirts, socks, cooking area linen, flooring mats and cleaning up mops. A number of these items accommodate price-sensitive customers and lower-income homes in domestic and export markets.
The association has actually likewise dealt with to look for the intervention of both the State and Central federal governments to progress a long-lasting service to repeating volatility in cotton waste costs.
Released on June 16, 2026
