Bangladesh to lose export orders due to high yarn price
According to the industry insiders, as the prices of yarn are increasing, the buyers are not ready to increase the product prices due to which they are losing orders.
Bangladesh
As the prices of yarn are increasing, the
buyers are not ready to increase the product prices due to which Bangladeshi
exporters are losing orders.
It is also estimated that if this trend
will continue, the buyers will move from Bangladesh to other competitor countries like
Pakistan. According to the Bangladesh Terry Towel and Linen Manufacturers and
Exporters Association (BTTLMEA), the exporters with no bond license should
import yarn from abroad at discounted tariff. As per the Spinning mill owners,
if the yarn is imported from abroad, it won’t bring any profit because the
price of yarn is shooting up in the international market as well. They also
said that due to an increase in the price of cotton, the prices of yarn are
also increasing.
As per the data, only 50 companies in the
country manufacture home textile products that include terry towels, and out of
these only 5 to 6 have bond licenses. Also, the sector won’t be able to enjoy a
9% cash incentive, if the imported yarn is used. Due to this, the home textile
manufacturers use local yarn. Here, local spinning mill owners try to create an
artificial crisis of the product by hiking the price of yarn and taking
advantage of the situation. It is expected that the prices of the yarn will
further go up.
Source – The Business Standard
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