Coimbatore: Open-end spinning mills have started a strike to protest against the hike in electricity tariffs and raw material prices.
The mills produce yarn from cotton waste, clothing waste and pet bottles. More than 640 members are involved in the production of yarn including powerloom, handloom and home textiles.
"There has been an abnormal increase in cotton prices. Cotton waste is our raw material. The increase in the price of cotton has, in fact, increased the cost of cotton waste by 50% to 75%," State President of Recycled Textiles Association M Jaibal told TOI.
“Besides, the state government has hiked the electricity duty, which has put pressure on our operations. Electricity usage during peak hours, which is 6-10 am and 6-10 pm, attracts an additional 15% charge, Jaibal.
“Before the hike, for 112 KW under LTCT, we paid a total of ₹3,920 with ₹35 per KW. Now, we are paying 153 per kWh and the total amount has increased to 17,200. In addition, during peak hours, which is from 6-10 am to 6-10 pm, there is an additional charge of 15% on electricity usage.
“We are not able to run the industry because of the hike in electricity duty and cotton. We ran out of liquidity, with operators suffering losses of around 4 to 5 lakh per month,” he said.
Mill operators have started a strike across the state, demanding the state government to reduce electricity charges and address the issues of rising raw material costs.
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