Narsingdi chamber asks FBCCI to end nexus of yarn hoarders

Narsingdi Chamber of Commerce and Industry has called on FBCCI to take punitive measures against the ‘syndicate’ who have hiked the prices of yarns by hoarding.

They also demanded the introduction of a yarn packet clearly demonstrating the highest retail price and manufacturing date, aiming at ending the syndication of unscrupulous businessmen and saving the small and medium handloom industries in the country.

Narsingdi Chamber of Commerce and Industry (NCCI) sent a letter, signed by its President Md Ali Hossain Shishir on Saturday, to Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) — the apex trade body of the country — calling for its intervention.

“A syndicate of unscrupulous businesspeople is increasing the prices of yarns creating an artificial crisis in the markets. So, the FBCCI should take stern action against the syndicate to bring stability to the market and save the handloom industry,” he also said.

Shishir added that around 70 per cent handloom factories in Narsingdi district have been closed due to the unusual price hike.  Even many garment export orders are reportedly being cancelled due to the hoarding by unholy alliance of profiteers.

He also requested the local administrations to conduct mobile court in warehouses of the yarn businesspeople to end stockpiling of the yarn which is essential for the RMG sector.   

According to a rate card mentioned in the letter on August 21, the price of 10 single rotor yarns is sold at $1.21 per kg in Pakistan which is $1.85 in Bangladesh. Besides, the price of 16 single rotor yarns is being sold at $1.34 per kg which is being sold at $2.30 in the local market.

“The price of a 16 single ring spun yarn is sold at $3.24 per kg in India while it’s being sold at $4.30 per kg in Bangladesh. Besides, the price of 20 single ring spun yarn increased by 31.73 per cent in this country compared to India,” the letter data showed.

Shishir said the prices of yarns are exorbitantly hiked in Bangladesh compared to that of other countries. So, the unusual price hike in Bangladesh needs to stop for the sake of the garment and handloom industries.

“Therefore, we request the apex trade body to take necessary steps against the syndicate of unscrupulous yarn businesspeople immediately,” he also said.