Of course, what you need to do here is identify some possible industries or groups that could use left over fabrics. Among these might be:
- Quilt stores. Quilters can use even very small amounts of fabric. Quilt shops will sell even such things as a package of fabric squares that are 2x2 inches. They sell things like "fat quarters" of fabric that are 18x22 inches. They mostly tend to sell cotton only, but presumably a fair amount of what you are producing is cotton.
- Fabric stores. Fabric stores will also sell small batches of any given fabric. People come in and buy small pieces of fabric to use for crafts, doll clothes, and other things that do not really need large pieces.
- Charities. There are many charities like church groups that would be willing to take smaller batches of leftover fabrics.
All of these would be ways of disposing of fabrics that would not cost you and might even make you some money.