RMG export growth under threat on yarn price hike

The growing apparel export is now under threat due  to persistent increase in yarn price in the local market, said BKMEA (Bangladesh Knitwear Manufacturers and Exporters Association) President Fazlul Hoque.

He said we beat China, Pakistan and India in terms of growth in exports of apparel items, but we might not maintain this growth trend if the prices of yarn in the local market go up further.

Yarn producers on the other hand blame the rise in the prices of yarn on the cost of cotton, the raw material, as cotton prices increased to US$ 87 cents per pound from $78 cents per pound in December and $60 cents a pound in September last year.

The '30 count' variety of yarn is now selling at a price ranging from US$ 2.90-$3.0 per kg compared with its rates at $2.75-$2.80 per kg last December.

The '20 count', which is popularly known as 'open-end yarn,' is now selling at $2.35-$2.40 per kg compared with its previous rates at $1.90-$2.0 per kg. At present, in neighboring India '30 count' variety of yarn is selling at $2.10 per pound.

As per a survey by the Textile Ministry, low supply of yarn against the higher demand for the item, double taxation in cotton import at the customs and price hike of raw materials worldwide were also responsible for the price hike of the yarn in the local market.