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Spinners yesterday asked garment exporters negotiating prices of apparel items with buyers to be aware of the price of cotton that has started to rise again in global markets.
Mohammad Ali Khokon, president of Bangladesh Textile Mills Association (BTMA), at a press conference at the BTMA office in Dhaka, said cotton prices were now ranging between $1.05 per pound and $1.07 per pound.
“So we need to sit again in a meeting soon with the garment exporters as they are the main customers of the locally produced yarn.
We need to make them aware of the upward trend of cotton prices in the international futures markets,” Khokon said.
Consensus on the price was reached on August 21 among leaders of the BTMA, Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA)
It was decided that the widely consumed 30 carded yarn will be sold at $4.20 per kilogramme (kg) if the cotton prices ranged between $0.85 and $1 per pound in international markets.
The leaders in a meeting also reached agreement that if the price of cotton went over $1 per pound, the spinners would be able to bargain a price hike of yarn with the buyers.
Conversely, if the cotton price went below 85 cents per pound, the buyers would be able to work out a price reduction with the spinner.
The price of cotton in international markets had already crossed $1 per pound, said Khokon.
“We need to make the garment manufacturers and exporters aware about the price escalation of cotton in the international markets so that they can accordingly negotiate prices of garment items with their international retailers and brands,” he said.
Leaders of the BGMEA and BTTLMEA in August had demanded that the government ease conditions for importing yarn from India and other countries through land ports as its prices were going up in the domestic markets.
(TDS)
