Tamil Nadu’s 250+ OE spinning mills warn of 50% output cut from next week over cotton waste prices

More than 250 open-end (OE) spinning mills in Tamil Nadu say they will cut production by 50% from next week unless cotton waste prices fall further. The mills say cotton waste prices have not adjusted in line with the drop in cotton prices after the Centre removed the 11% import duty on May 31, which pushed cotton down from about ₹195 per kg to ₹172 per kg. They claim key cotton waste inputs such as Comber Noil have fallen only ₹10–15 per kg, squeezing margins, according to the OpenEnd Spinning Mills Association (OSMA). The group says a curtailment would tighten supplies of grey OE yarn used across textile clusters in Tamil Nadu and nearby hubs.