Yarn price hike rattles knitwear exporters, Bangladesh

They demanded that the government form a monitoring cell soon to check any inconsistency in the price hike of yarn and raw cotton.

Yarn producers are doing brisk business, taking the opportunity of high price of raw cotton and the Indian ban on export of cotton, said Fazlul Hoque, president of Bangladesh Knitwear Manufacturers and Exporters' Association, at a press conference in Dhaka.

He said the manufacturers were selling 30-count yarn at $4.20 per kilogram, up from $3.60 per kg 15 days ago.

"The current prices of yarn are abnormal. We will fail to compete with other countries if such prices continue," he said.

Hoque said the prices of raw cotton on the international markets increased by seven cents over the last 15 days, but the local yarn manufacturers have increased the yarn prices manifold. The price of raw cotton was quoted at 86.08 cents per pound on the international market yesterday, he added.

"The difference of yarn price between India and Bangladesh is 60 cents now."

Hoque said the abnormal price hike of yarn -- in an excuse of a price rise of raw cotton on the international markets and the ban on export of raw cotton by India -- is unacceptable.


Source: Star Business