Open-end spinning mills in dire straits

The open-end spinning mills are fighting for survival. Numbering around 350 in Tamil Nadu and over 700 across the country, these units depend on the spinning mills for supply of cotton waste.

Seeking immediate government intervention to bail out the sector, the Secretary of the Open End Spinning Mills Association (OSMA) G Arulmozhi told BusinessLine that around 40 per cent of the looms in and around Palladam, Somanur, Tiruchengode and Namakkal have halted production because of the unwarranted increase in export of Comber Noil.

“If exports continue to surge, many more units will be compelled to down shutters, rendering hundreds jobless. The government should either ban export of Comber Noil or impose export duty at ₹15 a kg,” Arulmozhi said.

According to him, the annual availability of Comber Noil is around 25 lakh bales, but the domestic requirement is higher at 30 lakh bales. “Notwithstanding the demand-supply gap, an estimated 5 lakh bales are exported, leaving a short supply of 10 lakh bales a year,” he said.

“The situation was different a decade back. Comber Noil was available in plenty before 2005. Since then, we have added 4 lakh rotors. And today, apart from the open-end units, currency paper printing mills also look to the spinning mills for supply of Comber Noil,” he said.

“Comber Noil is used in the making of value-added products such as sanitary napkins, diaper and high-value items. Instead of making this quality waste cotton available to the domestic sector, it is being exported to Europe. While China and Bangladesh have banned export of Comber Noil, we continue to export the same, which is upsetting the entire value chain,” Arulmozhi added.

On the rate front, he said, “When cotton was at its peak quoting ₹52000/ candy (₹145/ kg) four months back, Comber Noil was available at ₹60 /kg. Today, the price of cotton has fallen to ₹112/kg, but Comber Noil is quoting at ₹78/kg. This is not justifiable.” Stating that the sector could ill-afford to pass on the increase to the consuming units, as they were poorer cousins engaged in the manufacture of lungis, petticoats and made-ups among others, he said the situation impacted the handloom, powerloom and garment manufacturing units in the textile valuechain.

“If there is no respite, all the open-end spinning units will come to a grinding halt very soon,” the OSMA Secretary said.

“The spinning mills that supply Comber Noil to the OESM are demanding part-payment in cash. This is posing another hurdle because of the cash crunch caused by demonetisation. We have taken up this issue with the apex body of the textile mills,” he said. Besides Comber Noil, cotton waste includes blowroom dropping and hard waste.

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