Home textile manufacturers frustrated at high yarn price

Terry towel and home textile manufacturers say they are disappointed with the high yarn price in the domestic market and bar on the item’s import.

They said most terry towel and home textile manufacturers are small entrepreneurs who do not have bond licenses, preventing them from importing cheap yarn from other countries.

They urged the government to provide four facilities to continue production and export to help them remain competitive in the global market.

Without the bonded facility, importers have to pay 37 per cent duty for cotton yarn and 31 per cent for mixed yarn. A bond license allows the import of yarn without duty.

In fiscal year 2020-21, Bangladesh earned $1.13 billion exporting home textile goods, 49.17 per cent higher than the previous year.

Bangladesh has 433 spinning mills producing around 80 per cent of the total domestic demand. From last November, the spinners increased yarn price. A kilogram 16s (single) ring spun yarn costs $4.30, which is $3.24 in India and $2.38 in Pakistan.

In the domestic market, per kg 20s ring spun yarn price is $4.40 while it is $3.34 in India and 2.68 in Pakistan.

“Bangladeshi manufacturers are receiving more work orders from buyers since the European Parliament announced to withdraw Pakistan’s Generalised Scheme of Preferences status last month. But we can’t meet the orders due to supply shortage and higher prices of yarn. We are frustrated,” Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA) Chairman M Shahadat Hossain told The Business Post.

BTTLMEA sent letters to the National Board of Revenue, Bangladesh Competition Commission, Ministry of Commerce and the Ministry of Finance with four demands to ease yarn import.

They demanded to allow 6s to 20s yarn import permission, withdrawal of import duty for BTTLMEA members, import permission through all ways and permission for partial import.