Recycled textile industry under pressure as waste cotton prices surge
COIMBATORE: The recycled textile sector is coming under increasing strain due to a sharp rise in waste cotton prices, according to M. Jayapal of the Recycle Textile Federation.
He said Indian cotton for the 2025–26 season, which opened in November at around ₹51,000 per candy, is now trading near ₹56,000. When cotton prices had earlier peaked at ₹56,000 per candy in September, spinning mills were selling comber waste—the primary raw material for open-end (OE) spinning mills—at about ₹102 per kg. Since then, comber waste prices have climbed steadily to ₹123–₹125 per kg, even as cotton prices have seen only moderate movement.
Despite this sharp increase in input costs, yarn prices have not risen in tandem. During the Diwali season, OE yarn was sold at around ₹165 per kg for 20s warp and ₹148–₹150 per kg for weft. At present, even after a ₹23 per kg rise in waste cotton costs, mills are still being forced to sell warp yarn below ₹165 and weft below ₹155 per kg, resulting in sustained losses over the past three months.
Jayapal added that labour shortages, higher production expenses, and weak demand for 30s count yarn have further worsened the situation. As a result, several mills have either reduced capacity or shifted focus to hosiery yarn production. Over 100 mills have reportedly exited grey yarn production in the last two years.
The federation has urged the Centre and state government to introduce a transparent tender-based system for selling cotton waste, aimed at protecting MSMEs and ensuring stability across the textile value chain.
