Openend spinning mills in T.N. plan to curtail production

Openend spinning mills in the State plan to curtail production due to high raw material prices.

M. Jayapal, president of the Recycled Textile Federation, said in a press release that the openend spinning mills in the State have decided to buy waste cotton from textile mills at last month’s prices. If the prices of waste cotton does not decrease, the mills will operate only with the stock of waste cotton they have to avoid losses. Further, the openend spinning mills that produce 20/25/30 count yarns and have solar power will operate during the day, while others will take two days off per week until the situation returns to normal, said Mr. Jayapal.

During the last two months, price of waste cotton went up by ₹2 to ₹4 a kg. With the start of a new cotton season last month, prices of cotton and yarn reduced. But, the mills have increased the price of waste cotton, he said.

According to G. Arulmozhi, president of the Openend Spinning Mills Association, the mills will reduce production 50 % if the waste cotton prices do not reduce. The mills producing grey yarn are hit as the price of waste cotton increased by ₹8 a kg this month. When the price of cotton was ₹160 a kg in September / October, the price of waste cotton was ₹100 a kg. However, in November, the price of cotton reduced to ₹147 a kg, but the price of waste cotton increased to ₹108 a kg.

The Association plans to coordinate with the openend spinning mills in States such as Gujarat, Punjab, Haryana, and Andhra Pradesh if the waste cotton prices do not reduce, he said.