Decrease in yarn prices provide relief in Bangladesh
Garments manufacturers in Bangladesh have breathed a sigh of relief as yarn prices started easing after rising to a high level.
Imports of yarn, a key raw
material for readymade garments, the country’s top export product, have been on
the rise in recent times due to some price advantages compared to buying from
the local market. It has also resulted in price decreases in the local market.
Besides, harvesting of the
main raw material, cotton, has started from this month in various producing
countries, which will continue till next December, even though the price of
cotton has not started to decline yet.
According to garment
manufacturers and textile millers, the price of 30 count yarn, rose to
$4.20-4.30 per kg over the last two months. But now it has dropped to
$4.10-4.15 per kg.
Garment industry insiders
expect that the price will go down further because the price in the Indian
market is on the decline, too. In India, the price of the same yarn rose to
$3.8 per kg, but now it is being imported at $3.6 per kg.
The price of yarn started
increasing considerably in the local market in January this year as an effect
of the rising prices of cotton, the main raw material for yarn, in the
international market.
Garment manufacturers claim
that local spinners have continued to make super profits by raising prices
abnormally through cashing in on increasing demand. However, textile millers
have always denied such allegations. In the meantime, large garment factories have started importing
yarn from several countries, including neighbouring India.
Md Fazlul Hoque, managing
director of Israq Textile Mills Limited, said prices are falling slightly as
imports have increased. In addition, at least four other textile entrepreneurs
have reported that yarn prices are falling in the local market.
Source: The Business Standard
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