170 Tamil Nadu Open-End Spinning Mills Stop Production
Around 170 open-end spinning mills in Tamil Nadu stopped production by going on an indefinite strike citing various reasons including hike in power tariffs and increase in waste yarn prices, which have led to hike in production costs.
“Open-end spinning mills are dependent on waste cotton from spinning mills and fabric waste from knitwear companies. And despite, drop in prices of raw cotton, prices of yarn waste and waste cotton has not declined in the last two years,” P Jayapal, President of the Mills Association said in a press conference.
“To add to our troubles, Tamil Nadu has hiked power tariff which has comes as a shocker. Further, Tangedco, the electricity utility provider has hiked monthly demand charge from Rs 50 per KW to Rs 153,” he added.
According to P Jayapal, Tangedco has also raised peak hour charges for mills operating between 6 to 10 am and 6 to 10 pm. “Since we cannot afford the hike in charges, we decided to stop production,” he informed.
Due to closure of these open-end spinning mills, it is expected that 4.5-5.0 lakh kilograms of grey yarn production per day will be affected
It is also expected that more mills producing dyed yarns may also stop production from next week.
Most of these open-end spinning mills are concentrated in Coimbatore, Tirupur, Palladam, Salem, Avinashi and Madurai districts.
