A committee comprising representatives of four apex organizations of the textile and apparel sector will be formed to fix the maximum price of yarn in coordination with the international market
The recent chaos over high yarn prices between textile millers and apparel exporters has been settled amicably, with no price hikes planned for now.
However, a committee comprising representatives of four apex organizations of the textile and apparel sector will be formed to fix the maximum price of yarn in coordination with the international market.
The price of yarn will not increase by a single cent before the committee is formed, said representatives of the four organizations.
The decision was taken at a meeting of apparel and textile sector trade bodies at a hotel in Banani on Tuesday night.
Talking to Dhaka Tribune, Mohammad Hatem, vice-president of the BKMEA, said that the meeting was very fruitful and important for the apparel and textile sector of Bangladesh.
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“Representatives of four organizations and business icons of Bangladesh were present at the meeting. We discussed all the disputes and identified possible solutions to all complications,” he added.
He also said that the textile millers will not hike the price of yarn.
Textile and apparel sectors are complementary to each other, so they have no choice but to unite for the betterment of the apparel sector of the country, he added.
“We have proposed to form an arbitration committee with the representatives of these four organizations to resolve all disputes amicably in the future,” he also said.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan and Director Tanvir Ahmed were present at the meeting.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President AKM Salim Osman and Vice-President Mohamaad Hatem also attended the meeting along with M Shahadat Hossain, president of the Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA).
Bangladesh Textile Mills Association (BTMA) President Mohammad Ali Khokon joined the meeting virtually where its Vice President Fazlul Haque was also present.
Some notable business personalities including Tapan Chowdhury of Square, Matin Chowdhury of New Asia Group, Kutub Uddin Ahmed of Envoy Group, and AK Azad of Ha-meem group were also present.
At the meeting, textile mill owners pointed out the rise of cotton prices in the international market and other reasons which led to the hike of yarn price in the local market.
However, the leaders of the apparel industry owners’ organization did not accept the explanation, according to sources present at the meeting.
They said if garment exports were hampered by rising price of yarn and purchase orders could not be taken, the country's spinning sector, along with apparels, would incur huge losses.
BGMEA President Faruque Hassan demanded that the 30-count yarn price be brought down immediately — keeping it consistent with the international market — to save the industry and keep the industry’s competitiveness and help it survive in this crucial time.
During the meeting, the top businesses offered to fix the maximum price of yarn, but the textile mill owners said they would take some time to reach a final decision. But the apparel sector leaders refused to give any time for this.
The meeting ultimately ended amicably and at the end of it, the participants took multiple decisions on the price of yarn.
Meanwhile, the rising price of yarns in the country for several months had created a chaotic situation for textile millers and apparel exporters.
Apparel and terry towel exporters alleged that the spinning millers unfairly and abnormally increased yarn prices which put the exporters in a sticky situation.
However, textile millers denied the allegation and claimed that they were not hiking prices intentionally.
The yarn market experienced the most unstable situation during April-May of this year. 30-count yarn, which is being used to manufacture apparel products, is being sold at $4.25-$4.40 per kg, higher from $3 in November last year and $4 in March this year.
According to BTMA, domestic spinning mills supply 80% of the yarn of export-oriented knitwear factories when it is 35-40% of woven factories.