As the price of waste cotton has gone up to Rs 150 per kg, production in 600 open-end mills in Tamil Nadu has been affected, and there is a demand to initiate steps to bring down the rising prices.
Coimbatore: The work of producing yarn from waste cotton is carried out in open end (OE) mills. There are about 600 such OE mills functioning in Tamil Nadu.
Presently, a candy (356 kg) of cotton is being sold for Rs 70,000.
On the other hand, the price of waste cotton has gone up to Rs 150 per kg, affecting the production in OE mills in Tamil Nadu, industry sources said.
Arulmozhi, president of the Tamil Nadu Open End Mills Association (OSMA), said, "For the past one month, a candy (356 kg) of cotton is being sold at Rs 70,000.On the other hand, the price of waste cotton from spinning mills has gradually increased from Rs 125 per kg to Rs 150 per kg. We are well aware that spinning mills are facing various problems".
Further adding he said "However, due to price rise many industries in the textile chain, including open end mills, powerlooms and handlooms, have been severely affected. If this trend continues, the number of OE mills will come down considerably in the coming years".
"While the government is already taking steps to implement digital currency schemes to replace the use of currency notes, the consumption of waste cotton may come down. But spinning mills should take steps to reduce the cost of waste cotton in view of the growth of OE mills which are always consumable". Arulmozhi noted.
Jayapal, President of the Federation of Recycled Textile Industries (RDF), said that "spinning mills do not supply yarn only for ready-made garments. They also produce and supply casting yarn used in powerlooms. If the price of waste cotton is reduced by Rs 30 per kg, the demand for casting yarn will increase. In turn, the price of yarn produced in open-end mills will also come down"
"This will give an opportunity to all the industries in the textile chain, including handlooms and powerlooms, to recover to some extent from the crisis situation currently facing them" Jayapal noted.
Presently, a candy (356 kg) of cotton is being sold for Rs 70,000.
On the other hand, the price of waste cotton has gone up to Rs 150 per kg, affecting the production in OE mills in Tamil Nadu, industry sources said.
Arulmozhi, president of the Tamil Nadu Open End Mills Association (OSMA), said, "For the past one month, a candy (356 kg) of cotton is being sold at Rs 70,000.On the other hand, the price of waste cotton from spinning mills has gradually increased from Rs 125 per kg to Rs 150 per kg. We are well aware that spinning mills are facing various problems".
Further adding he said "However, due to price rise many industries in the textile chain, including open end mills, powerlooms and handlooms, have been severely affected. If this trend continues, the number of OE mills will come down considerably in the coming years".
"While the government is already taking steps to implement digital currency schemes to replace the use of currency notes, the consumption of waste cotton may come down. But spinning mills should take steps to reduce the cost of waste cotton in view of the growth of OE mills which are always consumable". Arulmozhi noted.
Jayapal, President of the Federation of Recycled Textile Industries (RDF), said that "spinning mills do not supply yarn only for ready-made garments. They also produce and supply casting yarn used in powerlooms. If the price of waste cotton is reduced by Rs 30 per kg, the demand for casting yarn will increase. In turn, the price of yarn produced in open-end mills will also come down"
"This will give an opportunity to all the industries in the textile chain, including handlooms and powerlooms, to recover to some extent from the crisis situation currently facing them" Jayapal noted.