250 Tamil Nadu OE mills threaten 50% production cut next week over cotton waste pricing

OSMA warns over 250 open-end spinning mills in Tamil Nadu will slash output by 50% next week unless cotton waste prices ease further. The Centre's removal of an 11% import duty has intensified margin pressure, signaling upstream yarn supply risk for Indian apparel manufacturers.

— Filed Tue, 16 Jun, 2026, 19:09 IST · Source Apparel Resources India · Updated

Over 250 Tamil Nadu open-end spinning mills threaten 50% production cuts next week unless cotton waste prices fall further. OSMA flags pressure after Centre removed 11% import duty, signaling upstream yarn supply risk for Indian apparel manufacturers.

Why this matters

OSMA escalates pressure after the Centre's removal of the 11% cotton waste import duty failed to ease raw material costs, putting Tamil Nadu's open-end yarn output and downstream apparel sourcing at risk.

retail-company signals steady at 2,975 over the last 90 days.