12:11 AM, July 17, 2013 / LAST MODIFIED: 12:18 AM, July 17, 2013

Bangladeshi cotton importers still top default list

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Star Business Report

The International Cotton Association (ICA) has listed 93 companies from Bangladesh for failing to make payments to suppliers. The country ended up on top of the default list.
In the previous update in April, the number of Bangladeshi defaulters was 91. The ICA updated the list of default companies on July 12.
Among the South Asian textiles and garment producing nations, India is in the second position with 89 companies while Pakistan has 50 companies on the list.
The Liverpool-based ICA prepares the list on receiving complaints from the cotton supplying companies worldwide.
The companies became defaulters, as the importing companies did not receive shipments for an abnormal price hike of the item in 2010-2011.
Companies from Austria, Belgium, Brazil, China, Greece, Egypt, Hong Kong, Indonesia, Italy, Mexico, Portugal, Switzerland, Tanzania, Turkey, USA and Vietnam are also on the list.
The number of Bangladeshi companies on the list is increasing after a hearing at the Liverpool based arbitrations, said Jahangir Alamin, president of Bangladesh Textile Mills Association, the cotton importers' and spinners' platform.
“I have already told the ICA for appointing arbitrators in Bangladesh to resolve the disputes in payment as it is very expensive to attend the hearing going to the UK,” he said.
Since, the Bangladeshi owners do not attend the hearings, those become one-sided, he said.
“The settlements of the payment disputes largely depend on the willingness of both the parties,” the BTMA chief said.

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