The price of yarn, the main raw material for the main export product garments, will go down a bit as the owners of the spinning mill and the garment industry have agreed to set a maximum price limit.
According to the newly fixed price, per kg 30 count of yarn widely used in the knitwear industry will be sold at $4.20.
The decisions were taken at a meeting of top leaders of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA) on Saturday night.
The meeting was attended by BGMEA President Faruque Hassan, BKMEA President AKM Salim Osman, Vice President Mohammad Hatem, former BGMEA President Kutubuddin Ahmed and several senior leaders in the readymade garments and textile sector.
According to the concerned sources present at the meeting, the price of yarn from now on would be fixed in accordance with the current price of cotton in the international market. Besides, a benchmark will be set in this regard which will be decided by a committee comprising representatives of both the organizations.
A garment leader who attended the meeting held at a hotel in the capital’s Banani told TBS on condition of anonymity that the maximum price of yarn has been fixed and therefore the yarn prices will go down slightly compared to the present market price.
Another leader said that yarn used in knitwear is currently being issued starting from $4.25 to $4.40 as PI (proforma invoice or price offered by the seller). As such, if the price is set at $4.20, it can be assumed that the price will go down a bit.
Meanwhile, owners of readymade garments and other industries are hoping that the decision may help the prices to go down for yarn of other counts as well while creating an opportunity for stability in the yarn market.
When contacted, BTMA President Mohammad Ali Khokon told TBS that it has been decided to fix the price of per kg yarn at $4.20.
“Currently most spinning mill owners are selling yarn at this price. Some may be selling for $4.25. However, we have agreed that if the price of cotton in the world market goes above 1 dollar per pound or falls below 75 cents, the price of yarn will be re-determined on this basis,” he added.
Kutubuddin Ahmed said a logical solution had come to the meeting. However, he did not agree to give any details in this regard.
Yarn prices in the country have been rising for the past eight months as cotton prices have risen in the world market.
Local garment industry owners complained that the country’s spinning mill owners have increased the price of yarn at an unusual rate, while the textile owners argued that the price of yarn is being increased in line with the price of cotton.
When the debate between them became clear, the senior leaders of both the parties started looking for a way to reach a solution.
Meanwhile, BGMEA has written to the concerned ministries and departments of the government to facilitate the import of yarn. In a counter letter to the National Board of Revenue (NBR), BTMA expressed its concern.
The BTMA president also spoke to reporters on Saturday.
