Bangladesh Textile Mills Association said that domestic cotton yarn prices are inevitable

by:JIYALI     2021-08-07
The Bangladesh Textile Mills Association (BTMA) said on Tuesday that due to rising cotton prices in the international market, yarn prices in the domestic market have followed suit.   BTMA president AbdulHai Sarker said that in the past two to three months, yarn prices have increased by 7-8%, compared to the increase in imported cotton prices by 30-35%.   Knitting Enterprises and Exporters Association (BKMEA) criticized the increase in yarn prices and accused the spinning companies of arbitrarily increasing prices. Sarker has repeatedly defended the increase in yarn prices.   He asked the government to provide support for spinning companies in the budget for the next fiscal year. He said that the development of spinning companies has just started. He hopes that the tax exemption policy will not be interrupted and that no profit tax on spinning enterprises will be levied. In order to expand production capacity and meet the expanding needs of the garment industry.   He said that under the global trading system, it is impossible to increase prices at will according to the wishes of one family. He explained that if the price exceeds the international market price, the knitting garment factory will not use domestic yarn.   He said that the price difference between domestic yarn and imported yarn is nearly 12 cents. Knitting garment factories use domestic yarn because the quality of domestic yarn is better than imported yarn and the delivery time is shorter.   Yarn is the main raw material for the production of knitted garments. Knitted garments account for 60% of exports, but domestic yarn mills can only meet 75-80% of the yarn demand. The knitwear industry alone exported 4.5 billion US dollars in 2006-07.   BKMEA accused BTMA of raising yarn prices at will last week, which are now 20-22% higher than the Indian market, which threatens the growth of knitted garment exports.   They also requested the cancellation of the cumbersome procedures at the Benapole port in order to expand yarn imports and meet the growing demand of knitting enterprises.   Knitting business owners said that the selling price of general yarn in the market is between 2.85 and 2.95 US dollars per kilogram, which is 40 to 45 cents higher than Indian yarn.   On the other hand, BTMA said that the Indian market price is currently at US$2.65 per kilogram, an increase of 3% in import costs. The price of Indian yarn is US$2.70 per kilogram, and the price difference with domestic high-quality yarn is 12 cents.   Sarker asked the government to provide support for enterprises in the budget. He asked for the reduction of tariffs on machinery imported by textile enterprises to zero. He said that the investment in textile enterprises in 2007 decreased by 40% compared with the previous year.   Textile companies also demanded to stop exporting waste cotton to India, because these cotton can be processed domestically into higher value-added products.
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