Meeting fails to adjust yarn price
A high-level meeting between the stakeholders and the government failed yesterday to set a rational price of yarn that has been witnessing an abnormal price hike for months.
The four-hour meeting between the apparel manufacturers and the textiles and jute minister winded up without any consensus, and another meeting is due today to take a final decision.
"We couldn't take any decision about the yarn price and opening up Benapole Land Port for importing yarn from India. The meeting has been extended to tomorrow (today) to take the final decision," said Abdul Latif Siddiqui, the minister, after the meeting at the secretariat.
He said the leaders of Bangladesh Textile Mills Association (BTMA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) widely discussed the price hike issue, but failed to reach a consensus.
The minister said the current price of yarn in the local market is abnormal and unrealistic and so it should be adjusted. "The meeting will decide the fair price of yarn for the local market."
If the meeting can reach a satisfactory solution about the yarn price, opening up the Benapole Land Port for yarn import may not be necessary, he said.
A committee will be formed to adjust yarn price on a regular basis, he added.
BKMEA President Fazlul Hoque said they are holding a series of meeting with government high-ups and other stakeholders to find a solution to the soaring yarn price on the local market.
"I hope we will be able to reach a consensus tomorrow (today)," Hoque said.
He said yarn price increased even yesterday and 30-count yarn reached $4.50 per kilogram on the local market.
"We will lose competitiveness on the international market for abnormal price hike of yarn in the local market," Hoque said.
BGMEA President Abdus Salam Murshedy said garment manufacturers want a win-win situation from every side.
"But the existing price is intolerable. We will lose competitiveness," he said.
Acting President of BTMA Syed Monzurul Huq said the yarn prices depend on many factors.
"The price of raw cotton has increased on the global market. We have gas and power crises, and recently the Indian government has imposed a ban on export of raw cotton. All these factors affected yarn production and ultimately the prices have gone up on the local market," Huq said.
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