Recycled Textile Industry Faces Mounting Pressure from Soaring Waste Cotton Prices
The recycled textile industry in India is confronting significant challenges as waste cotton prices experience a sharp and sustained increase, according to industry leaders. M Jayapal, president of the Recycle Textile Federation, highlighted the growing pressure on the sector, which relies heavily on recycled materials for production.
Steep Price Increases for Raw Materials
Indian cotton for the 2025-26 season opened in November at Rs 51,000 per candy and has since climbed to current trading levels of Rs 56,000 per candy. This upward trend has directly impacted waste cotton prices, which serve as the primary raw material for many textile mills.
When cotton prices peaked at Rs 56,000 per candy in September, spinning mills were selling comber waste—the crucial raw material for open-end (OE) mills—at approximately Rs 102 per kg. Since that time, comber waste prices have steadily increased to Rs 123–125 per kg, despite only moderate fluctuations in overall cotton prices.
Unmatched Cost Increases and Production Challenges
Jayapal emphasized that the substantial rise in raw material costs has not been accompanied by corresponding increases in yarn prices. During the Diwali period, OE yarn was selling at around Rs 165 per kg for 20s warp and Rs 148–150 per kg for weft varieties.
Currently, even with a significant Rs 23 per kg jump in waste cotton prices, mills are compelled to sell warp yarn below Rs 165 per kg and weft yarn below Rs 155 per kg. This pricing disparity has resulted in continued financial losses for many operations over the past three months.
Additional Operational Pressures
The industry faces multiple compounding challenges beyond raw material costs:
- Labour shortages affecting production efficiency
- Rising production costs across multiple operational areas
- Weak demand for 30s count yarn specifically
These factors have forced numerous mills to reduce production capacity or transition to hosiery yarn manufacturing. Over the last two years, more than 100 mills have completely exited grey yarn production, reflecting the sector's difficult operating environment.
Industry Calls for Government Intervention
The Recycle Textile Federation has appealed to both central and state governments to implement a transparent tender system for cotton waste sales. This measure aims to protect Micro, Small, and Medium Enterprises (MSMEs) and safeguard livelihoods throughout the textile value chain.
Jayapal stressed that without appropriate policy interventions, the recycled textile industry—which plays a crucial role in India's textile ecosystem—faces continued operational challenges that could impact employment and economic contributions across the sector.
