ROURKELA: The Shree Hari Spinners Pvt Ltd (SHSPL) in Sundargarh’s Kirei, which resumed operations around 10 months ago, is facing difficulties due to fluctuating raw material prices and weak demand.
The sole spinning mill in the district remained closed for seven years until the new management, under a liquidation process guided by the National Company Law Tribunal (NCLT), took charge and resumed operations. After restarting, yarn prices were initially manageable but over the past six months, the company has faced difficulties due to fluctuating yarn and raw material prices and weak demand.
Sources informed that the company procures cotton from ginning mills in Kesinga and produces yarn in the range of 24 to 30 counts. Against a rated capacity of 40,000 spindles per day, SHSPL currently operates around 18,000 spindles daily, producing approximately eight tonnes of cotton yarn. Most of this yarn is supplied to eastern Indian markets for the manufacture of branded undergarments and hosiery.
Over the past six months, demand and pricing for yarn have continued to fluctuate, increasing volatility in profitability, with yarn prices falling by Rs 4–6 per kg. The recent cotton import duty cut, aimed at boosting the domestic textile industry, has also affected SHSPL, as yarn manufacturers from other states, some sourcing cotton from Odisha, gain a competitive advantage.
According to the management, uncertainties created by high US tariffs on garments have further complicated the market. Presently, cotton prices in the state remain slightly high, and the company is awaiting the arrival of the new cotton crop in a few months. SHSPL management appreciated government support in the form of labour and energy subsidies and GST adjustments on plant and machinery, which they said is crucial for long-term operations. They added that mechanisms should be in place to give SHSPL a competitive edge in the beneficiation and value addition of the state’s cotton.
The mill’s general manager B Thangapan expressed hope that yarn demand and pricing will improve in the near future as market conditions stabilise.