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Sunday, May 5, 2024

Open-end spinning mills in Tamil Nadu in trouble

As sustainability in textiles gains momentum the open-end spinning industry that produces yarn from cotton waste has seen cotton waste availability and soaring prices have become a problem for open-end spinning mills.

The open-end spinning industry in India, Pakistan, and Bangladesh is facing sustainability issues. In India over 400 openend spinning mills in Tamil Nadu suspended operations on Monday, July 10, as production costs had turned unviable for the mills.

These mills are present in large numbers in Vellakoil, Dindigul, Mangalam, Palladam, and Sulur, are medium or small-scale, and are LT CT electricity consumers. Stakeholders in the industry claim that with the closure market is losing 30 lakh kg of yarn worth INR40 crore per day.

The mills which are present in large numbers in Vellakoil, Dindigul, Mangalam, Palladam, and Sulur, are medium or small-scale and are LT CT electricity consumers. Further, cotton waste prices are increasing for the last 10 months though raw cotton prices have reduced. With higher production costs, open-ended spinning mills in Tamil Nadu are unable to compete with the units in Punjab and Haryana that are now selling yarn in Tamil Nadu at INR5 a kg less than the price quoted by the mills here.

Surprisingly the fabric produced from virgin cotton fetches 10 times higher price than fabric produced from recycled cotton.

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