Cotton waste comber noil, which is main raw material for OE mills. The association pointed out that after the Centre removed the 11% import duty on cotton on May 31, cotton prices fell from ₹195 per kg to ₹172 per kg, a decline of ₹23 per kg. Despite the sharp fall, spinning mills reduced Comber Noil prices by only ₹10-15 per kg. | Photo Credit: Special Arrangement

More than 250 grey yarn manufacturing open-end (OE) spinning mills across Tamil Nadu have warned of a 50 per cent reduction in production from next week if cotton waste prices are not reduced further, according to the Open-End Spinning Mills Association (OSMA).

G. Arulmozhi, President of OSMA, said OE mills have been affected by the abnormal increase in cotton waste prices over the past few months, which has eroded profitability. Open-end spinning is a technology for creating yarn without using a spindle with cotton waste as the main raw material.

During May, Comber Noil, a key cotton waste raw material used by OE mills, placing immense financial pressure on manufacturers.

The association pointed out that after the Centre removed the 11 per cent import duty on cotton on May 31, cotton prices fell significantly from about ₹195 per kg to ₹172 per kg, a decline of nearly ₹23 per kg. However, despite the sharp fall in cotton prices, spinning mills have reduced Comber Noil prices by only ₹10-15 per kg. OE mills demand a further reduction.

“For OE mills to remain viable and competitive, cotton waste prices must reflect the decline in cotton prices. The current pricing structure is unsustainable for the sector,” Arulmozhi said.

OSMA said that if prices are not reduced during the current week, all grey yarn OE mills have collectively decided to cut production by 50 per cent from next week.

According to OSMA, the issue not only affects the 250 grey yarn-producing OE mills but also around 350 other OE mills that consume pre-consumer garment cutting waste and polyester fibre derived from recycled PET bottles. More than 100 vendors across India supply cotton waste and other raw materials to these mills, either directly or through spinning mills.

Grey OE yarn produced by these mills is widely used by exporters in Karur and by powerloom manufacturers in textile hubs such as Somanur, Palladam, Avinashi and Erode.

The yarn is converted into a range of products including towels, lungies, jeans, bedspreads, nighties, petticoats, T-shirts, socks, kitchen linen, floor mats and cleaning mops. Many of these products cater to price-sensitive consumers and lower-income households in domestic and export markets.

The association has also resolved to seek the intervention of both the State and Central governments to evolve a long-term solution to recurring volatility in cotton waste prices.

Published on June 16, 2026