Mills halt operations to protest hike in waste cotton price

Stpeaking to reporters, M Jayabal, president of Tamil Nadu Open End Mills Association (OEMA) and its secretary G Arulmozhi said that the price of waste cotton has increased sharply.

“A kilogram of waste cotton, which was sold at Rs 70 barely two months ago, has increased to Rs 92 now. To bring down its prices, the government should consider removing one per cent cess on waste cotton. No other state charges any such cess and hence the price of waste cotton is on its peak only in Tamil Nadu,” said M Jayabal.

Unless the state and Union governments interfere to keep the prices of waste cotton under check, the survival of OE mills may become a question mark. Also, the export of waste cotton should be banned to bring down the prices in the local market, they said.

The OE mills have been located mainly in Coimbatore, Palladam, Avinashi, Udumalpet, Salem and Madurai districts. These units buy waste cotton from textile mills, make yarn and sell it to the power loom and handloom units. From the yarn made out of waste cotton, bed spreads, window screens, towels and nighties are manufactured.

Though the price of waste cotton has been increasing steadily, the yarn price has come down from Rs 152 per kg last year to Rs 145 now. Every day, on an average six lakh kilos of grey yarn is manufactured in the 175 OE mills in the state.

The strike may lead to a daily production loss of Rs 5.5 crore and Rs 50 lakh revenue loss to the government. Also, more than a lakh labourers and thousands of power loom and handloom units may face job loss due to the strike. The OEMA has decided to extend their strike by another ten days if the government does not find a solution soon.