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Decrease in yarn prices provide relief in Bangladesh

Oct 01, 2021
Decrease in yarn prices provide relief in Bangladesh

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

Image Source: Google Images

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