Spinners won’t cut yarn price
Spinners are unwilling to reduce the prices of yarn in local markets even though apparel and terry towel exporters have demanded as much in order to remain competitive at the international level.
"I held an internal meeting with our members today [Tuesday] to discuss the prices of yarn and demand from garment makers and terry towel exporters," said Mohammad Ali Khokon, president of the Bangladesh Textile Mills Association (BTMA).
"I even had to face a barrage of questions in the meeting regarding why I asked them to maintain the prices of yarn in local markets last week," he added.
Garment exporters want spinners to provide an uninterrupted supply of yarn at competitive prices in order to cater to the increasing number of work orders from international retailers and brands. The number of work orders are rising in line with the reopening of economies in the western world.
"We may sit in another round of meetings with garment manufacturers and exporters on Saturday or Sunday to find an amicable solution to this impasse," Khokon said.
The BTMA chief also mentioned that spinners honoured a previous commitment made during a meeting with garment exporters last week to maintain the current yarn prices.
The most highly demanded 30 carded yarn was selling for about $4.25 per kilogramme in local markets as of yesterday, he added.
Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association, said he is yet to receive any invitation from the BTMA for the next meeting.
The meeting was supposed to be held a bit earlier as per the commitment made in the previous meeting
"If invited, I will attend to discuss the yarn prices," Hassan told The Daily Star by phone.
"However, everything has been stated in a letter to the commerce minister," he added.
Echoing Hassan's views, Shahadat Hossain Sohel, chairman of the Bangladesh Terry Towel & Linen Manufacturers & Exporters Association, also demanded an adequate supply of yarn at competitive prices as they have a lot of work orders from international buyers.
Mohammad Hatem, first vice-president of the Bangladesh Knitwear Manufacturers and Exporters Association, expressed hope that the impasse regarding yarn prices will soon come to an end through consultation among the leaders of relevant trade bodies.