Local spinners have allegedly raised the yarn prices by 15 per cent in the domestic market taking advantage of the coronavirus outbreak. Bangladesh Garment Buying House Association (BGBA) in a letter to the jute ministry on February 29 lodged the complaint, seeking necessary measures to keep the yarn prices stable. Local textile millers, however, ruled out the allegation saying that the prices of yarn are gradually increasing recently, but it is not for the virus outbreak. “Local spinners are asking 10-15 per cent higher prices for yarn used in manufacturing exportable garment items, taking the advantage of coronavirus outbreak,” BGBA president Kazi Iftekhar Hossain said in the letter. There is no such incident of price hike in the cotton exporting countries like India, Central Asia and the USA for coronavirus or other reasons, he explained. Rather, Mr. Hossain argued that India has recently requested Bangladesh to import 8.0 million bales of cotton. Locally made apparel items would lose its competitiveness in the global market if local spinners raise the yarn prices as there is no cotton shortage or price hike globally, he added. When asked, Bangladesh Textile Mills Association (BTMA) secretary Monsoor Ahmed said: “It is a false allegation.” The prices of yarn increased by 20 to 25 US cents per kg compared to that of the two months ago, he said, adding the millers were selling their products at a reduced rate than their production cost. “They (spinners) are now selling their products at a fair price now,” he said, adding the price is gradually increasing as a result of the government’s drive against misuse of bonded warehouse facility. Mr. Ahmed said that cotton was traded at 3.0 to 4.0 US cents higher in the global market on Monday. In fiscal 2018-19, Bangladesh imported 6.9 million bales of cotton to meet its demand, according to BTMA. The country annually spends US$ 3.5 billion in importing cotton. It imports cotton mainly from African countries, India, Australia and USA while Brazil was added to the importing country list in recent years, according to BTMA. According to industry people, about 46 per cent of the US$ 34 billion raw materials for local readymade garment (RMG) industry are sourced from China. Bangladesh imported textile fibre and articles worth US$ 5.02 billion, out of its total $13.63 billion import, from China in fiscal year 2018-19, according to them.
