Bangladesh RMG Sector Feels The Heat Of Rising Yarn Prices

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Bangladesh RMG Sector Feels The Heat Of Rising Yarn Prices

The recent steep hike in yarn prices had added to the woes of Bangladesh apparel manufacturers and exporters, who were already aggrieved by a sustained hike in global cotton prices and pandemic-induced lockdowns. RMG makers are accusing local millers of taking advantage of the coronavirus outbreak and said, the price hike is eating up competitiveness of the locally manufactured garments. However, spinning mills attribute the hike in cotton prices to rising demand for the commodity globally and a supply crunch, and upward costs of other related logistics. Mohammad Ali Khokon, President, Bangladesh Textile Mills Association (BTMA), says the pandemic has affected not only local RMG industry but also the primary textile millers. Lockdown has pushed up use of cotton-based garment items especially knitted ones, opines Khokon, attributing the cotton price hike to demand and supply gap. Nurul Islam, Chairman, Well Group, said the price hike has affected both spinners and RMG makers and its impact can be predicted in coming months as raw material prices have skyrocketed while costs of logistics have also gone up. Rubana Huq, President, BGMEA believes the price hike could kill their potential to beat competitors. According to BTMA, some 425 spinners out of total 1,461 members provide around 90% yarn demand for knit and 35-40% yarn demand for woven apparel exports. Bangladesh annually produces only 0.16 million bales of cotton. It imports around 8 million bales of cotton annually. These imports mainly come from African countries, India, Australia, the US and Brazil, said BTMA.