Spinning mills will work on existing cotton stock to avoid losses.
OE Spinning Mills will operate only on their current stock of waste cotton to avoid losses - RTF PresidentIn Tamil Nadu, out of 8.5 lakh rotor capacity in Open-End (O.E.) mills, 3.5 lakh rotors produce grey yarns. The remaining 5 lakh rotors manufacture various types of yarn ranging from 2 to 40 counts, including bleached, coloured, melange, cotton-polyester, viscose-cotton, and viscose-polyester, in over 45 colours.Specifically, these mills supply grey yarns of 10/20/25/30 counts to power looms in the districts of Tiruppur, Coimbatore, Erode, Salem, Karur, Madurai, and Virudhunagar.In a press release, Jayabal, President of the Recycled Textile Federation, said that for the past four months, the production of 30-count weaving yarns has decreased due to a lack of sufficient orders, leading to a build-up of O.E. yarns and textile goods.There is a fear among spinning mills that if they reduce the price of the 20-count yarn used for “kada” (sheeting) fabrics, the prices of the already-sold, currently-stocked, and power-loom-held kada will all crash.This fear is amplified because North Indian kada traders have been slow to return payments after Deepavali and are hesitant to make fresh purchases.The situation was compounded last month (October) with the start of the 2025-26 cotton season, as new cotton began arriving in the market.The price dropped by Rs. 4,000 to Rs. 6,000 per candy, leading spinning mills across the country to reduce their yarn prices by Rs. 8 to Rs. 10 per kilogram since last month.However, over the past two months, the price of waste cotton—a byproduct of the spinning process—has been raised by Rs. 2 to Rs. 4.The O.E. mills, which supply yarn to handlooms and power looms, cannot raise their yarn prices to match the increased cost of waste cotton. Due to this issue, an emergency meeting was held recently in Coimbatore.In the meeting, it was decided to buy waste cotton at last month’s prices. It was also decided that if the prices do not decrease, the mills will operate only on their current stock of waste cotton to avoid losses.Furthermore, O.E. 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.read more :- Telangana urges Centre to ease cotton procurement norms
