The rising price hike of waste cotton may lead to the purchase of cotton instead of cotton waste for OE mills, which the OSMA Administrator had demanded the central government to ban export of waste cotton and save industries from facing a loss
Coimbatore: The abnormal price hike of cotton waste has very badly affected the yarn manufacturing process in the Open End Mills.
Tamil Nadu Open End Mills Association (OSMA ) Administrator, Arul Mozhi said,"Yarn manufacturing using cotton waste is done at Open End(OE) Mills. There are more than 500 OE Mills functioning across Tamil Nadu. All these Mills depend on the cotton waste which are sold by the spinning Mills.
More than 3 Lakh people's employed:
OE Mills play a vital role in providing employment. More than 3 lakh people's have got employment both directly and indirectly in the OE Mills sector. Bedsheets, towels, jeans,kitchen made ups, and various other products are manufactured using the yarn(2s count till 40s count) manufactured by OE Mills.
Powerloom and Made up industry depend on OE yarn:
OE Mills play a vital role in catering clothing needs of poor peoples. 70% of the powerlooms functioning in Coimbatore, Tiruppur and Erode districts and 100% made ups manufacturing industries in Karur and Chennimalai depend on the yarn made by OE Mills.
Abnormal price hike:
The price of cotton waste which was sold for Rs 70 per kilo has been increased to Rs 95 per kilo.This abnormal price hike has made a big impact in the entire OE Mills and the powerloom sector.
More Cotton waste Exported:
While the Indian OE mill industrialists are facing more problems due to the abnormal price hike of cotton waste. On the other side more cotton waste is exported to various foreign countries.
Central Government also affected:
Apart from various textile products, currency notes are also printed using the cotton waste. Every year Central government will purchase 1 crore kilo Comber noil cotton waste(Comber Noil is the name of Cotton waste) to print currency notes. Presently the Central government is also paying extra amount to purchase cotton waste.
OE mills will start purchasing Cotton instead of Cotton waste!
If the abnormal price hike of cotton waste continues then the entire OE mills sector will start purchasing cotton, instead 0f Cotton waste which would create scarcity of cotton in the market. This would becomea big headache to Spinning mills sector.
MSME Industrialists cannot bear financial crisis
Most of the industrialists in the OE Mills sector come under MSME category. Hence they cannot overcome the financial crisis caused by the abnormal price of cotton waste which is presently witnessed.
What is the Solution?
1. Spinning mills have increased the price of cotton waste due to the steep hike of Cotton price which their important raw material. Hence they have increased the price of cotton waste upto Rs 30 per kilo. Central Finance, Commerce and Textile Ministers should immediately intervene in this issue and take the needy steps to ensure the price of cotton waste per kilo reduces to Rs 70 per kilo.
2. While the Indian industrialists are badly affected. On the other side more Cotton waste are exported. Hence the Central government should either ban the cotton waste Exports or it should levy Export duty of Rs 20 per kilo for Cotton waste.
3. Presently OE yarn market is good. Hence if the price of cotton waste is reduced to Rs 70 per kilo. The entire OE mills sector would witness a steady growth." Mr.Arulmozhi said.
Tamil Nadu Open End Mills Association (OSMA ) Administrator, Arul Mozhi said,"Yarn manufacturing using cotton waste is done at Open End(OE) Mills. There are more than 500 OE Mills functioning across Tamil Nadu. All these Mills depend on the cotton waste which are sold by the spinning Mills.
More than 3 Lakh people's employed:
OE Mills play a vital role in providing employment. More than 3 lakh people's have got employment both directly and indirectly in the OE Mills sector. Bedsheets, towels, jeans,kitchen made ups, and various other products are manufactured using the yarn(2s count till 40s count) manufactured by OE Mills.
Powerloom and Made up industry depend on OE yarn:
OE Mills play a vital role in catering clothing needs of poor peoples. 70% of the powerlooms functioning in Coimbatore, Tiruppur and Erode districts and 100% made ups manufacturing industries in Karur and Chennimalai depend on the yarn made by OE Mills.
Abnormal price hike:
The price of cotton waste which was sold for Rs 70 per kilo has been increased to Rs 95 per kilo.This abnormal price hike has made a big impact in the entire OE Mills and the powerloom sector.
More Cotton waste Exported:
While the Indian OE mill industrialists are facing more problems due to the abnormal price hike of cotton waste. On the other side more cotton waste is exported to various foreign countries.
Central Government also affected:
Apart from various textile products, currency notes are also printed using the cotton waste. Every year Central government will purchase 1 crore kilo Comber noil cotton waste(Comber Noil is the name of Cotton waste) to print currency notes. Presently the Central government is also paying extra amount to purchase cotton waste.
OE mills will start purchasing Cotton instead of Cotton waste!
If the abnormal price hike of cotton waste continues then the entire OE mills sector will start purchasing cotton, instead 0f Cotton waste which would create scarcity of cotton in the market. This would becomea big headache to Spinning mills sector.
MSME Industrialists cannot bear financial crisis
Most of the industrialists in the OE Mills sector come under MSME category. Hence they cannot overcome the financial crisis caused by the abnormal price of cotton waste which is presently witnessed.
What is the Solution?
1. Spinning mills have increased the price of cotton waste due to the steep hike of Cotton price which their important raw material. Hence they have increased the price of cotton waste upto Rs 30 per kilo. Central Finance, Commerce and Textile Ministers should immediately intervene in this issue and take the needy steps to ensure the price of cotton waste per kilo reduces to Rs 70 per kilo.
2. While the Indian industrialists are badly affected. On the other side more Cotton waste are exported. Hence the Central government should either ban the cotton waste Exports or it should levy Export duty of Rs 20 per kilo for Cotton waste.
3. Presently OE yarn market is good. Hence if the price of cotton waste is reduced to Rs 70 per kilo. The entire OE mills sector would witness a steady growth." Mr.Arulmozhi said.