Textile mills refuse to reduce yarn price
April 27, 2010
The knitwear and the textile mills associations remain at loggerheads over the price of yarn following a meeting at the ministry of textile and jute. And whilst the leader of the two associations said that no headway was made at the meeting, the Minister is claiming that it was a success.
“We’ve consulted and reached an agreement. The price of yarn would remain in a reasonable level,” said the minister, Abdul Latif Siddiqui.
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After the meeting, the director of the association of yarn producers Bangladesh Textile Mills Association (BTMA), Mosharraf Hossain, said that they wanted to continue selling yarn at the current price, since it has increased in the world market.
“Currently yarn is being sold at $4 to $4.10 per kg,” he added.
The Bangladesh Knitwear Manufacturer and Exporters Association (BKMEA) president Fazlul Hoque told the reporters that they were not asking the yarn producers to sell their yarn at a loss.
“We’ve asked them to sell at a reasonable price.
“We’ve asked to keep the price between $3.60 to $3.80 per kg. Then it’ll be in line with the international market,” he added.
Earlier, on Saturday, BKMEA had claimed that a certain quarter of yarn manufacturers were exploiting the opportunity of the Indian government’s decision to suspend cotton export and a price rise in the international market to make extra profit.
It was also stated that that in February yarn cost $ 2.85 per kilogramme whilst on April 21 it stood at $ 4.20 per kg.
He claimed that yarn is being sold at $ 3.60 per kg in the neighbouring countries.
The Bangladesh Garments Manufacturer and Exporters Association (BGMEA) president Abdus Salam Murshedi also told reporters on Monday that the price of yarn was too high.
“We’ve demanded that the price to be kept in accordance with the world market.”
They complained that Bangladesh was losing buyers in the international markets because of the increasing price of yarn.
In the meeting, the garments producers demanded the removal of government barriers on importing yarn from India by road if the yarn producers do not reduce their price.
The minister said that the government has made no decisionAbout importing yarn through land port
Source: http://www.bdnews24.com
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