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Bangladesh to lose export orders due to high yarn price

Aug 25, 2021
Bangladesh to lose export orders due to high yarn price

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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