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Spinners have kept yarn prices unchanged since August 10 and there is no scope for a reduction as cotton prices are high in the global market, said Mohammad Ali Khokon, president of Bangladesh Textile Mills Association (BTMA), yesterday.
Since December last year, international cotton prices rose by 47 per cent, demand for cotton yarn by 22 per cent and cotton yarn prices by 37 per cent, he said.
All these happened because of increased demand for comfortable knitwear, which are made from the cotton fibre, from the end consumers staying home for long periods, he said at a press meet at Pan Pacific Sonargaon Dhaka.
Since August 10, spinners have been selling the widely consumed 30-carded yarn in the range of $4.20 to $4.30 per kilogramme (kg), said Khokon.
He said to have sent letters to spinners requesting not to increase yarn prices any more as the local customers of yarn such as knitters, weavers and terry towel makers have been voicing their disapproval.
Usually, manmade fibres remain more in demand than cotton fibres in international markets. But nowadays, demand for cotton fibres has increased for the preference of the end users, he said.
People prefer knit items like t-shirts and home textiles more than woven items. The demand for woven items, meaning attires that do not change form with body movements, is not increasing that much as formal events have become rare since the pandemic surfaced, he said.
Regarding the import of yarn through different land ports, Khokon said the entry points were open for the shipments, particularly from India.
However, of the Benapole, Sonamasjid and Bhomra land ports, only the former has adequate infrastructures to handle the import of yarn, he said.
If the partial shipment of yarn is allowed, there is a chance of misuse of bond facility and excessive import by a section of traders, which would destroy the local industry while the government would lose a big amount of revenue.
Last week, leaders of the BGMEA and BTTLMEA sent letters asking the government to allow import of yarn, including partial shipments, through the Sonamasjid and Bhomra land ports.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA) have been lobbying with the government for the permission mainly to bring about an impact on yarn prices.
But currently partial shipments are allowed only through the Chattogram sea port while Benapole is the only land port through which yarn import is allowed.
Khokon said the widely consumed 30-carded yarn was sold at $4 per kg in March, $4.20 per kg in April and $4.15 per kg in June.
Moreover, yarn prices have been increasing since September last year with the gradual reopening of the global supply chain. So the upward trend did not come out of the blue, he said.
Cotton production has been lower this year because of excessive rainfall in the US and India, two major sources of cotton for Bangladesh since the country itself does not produce it.
Faruque Hassan, president of the BGMEA, said the local knitters, garment makers and terry towel exporters were the main customers of yarn.
“We have a lot of work orders from our international retailers and brands and now we need yarn at competitive prices to retain our business relations with our buyers,” he said.
“If we cannot serve our retailers and brands, we may lose our buyers,” he added.
“We also want the local yarn as we have some advantage on use of it. But the price is too high for us. We cannot afford the price level. The government should also think about us,” Hassan said.
Leaders of the BTMA, BGMEA, Bangladesh Knitwear Manufacturers and Exporters Association and BTTLMEA were scheduled to sit for another round of meeting last night, when this report was filed, to discuss the latest price and demand situation of yarn in the domestic markets.
(TDS)
