Millers want to revise up yarn price
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard

Sunday
July 03, 2022

Sign In
Subscribe
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
SUNDAY, JULY 03, 2022
Millers want to revise up yarn price

RMG

TBS Report
13 October, 2021, 10:30 pm
Last modified: 14 October, 2021, 01:33 pm

Related News

  • BGMEA, PwC sign deal to conduct study on Bangladesh's RMG sector roadmap to recovery
  • 17 Bangladeshi exhibitors take part at Heimtextil and Techtextil 2022 
  • BGMEA wants duty-free market access to Russia
  • BGMEA wants export earnings repatriation time extension
  • Resolve delays in bond activities, demands BGMEA

Millers want to revise up yarn price

The BTMA, BGMEA, and BKMEA will hold a meeting by next week to set a new, revised price for yarn

TBS Report
13 October, 2021, 10:30 pm
Last modified: 14 October, 2021, 01:33 pm
File photo of RMG workers. Picture: Mumit M/TBS
File photo of RMG workers. Picture: Mumit M/TBS

Spinning mill owners want to revise up the price of yarn since the price of their raw material, cotton, has been increasing recently, said sources at the Bangladesh Textile Mills Association (BTMA).

At an emergency meeting on Tuesday, the BTMA decided to hold a meeting with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) to explain the international market circumstances.

Readymade garment exporters claim local spinning mills have been charging a much higher price for yarn than the global rates, but the yarn manufacturers have repeatedly said they have raised the price of yarn in proportion to market cotton prices.

In August this year, the BTMA, BGMEA and BKMEA decided to revise the price of yarn if it dropped below 85 cents or exceeded $1 per pound.

A pound of cotton traded at $1.05 on 13 October (Bangladesh time 6pm), according to markets.businessinsider.com. Usually yarn manufacturers buy a pound of cotton at around 80-85 cents at this time of the year, said sources.

BTMA President Mohammad Ali Khokon said they will sit with the BGMEA and the BKMEA by next week to discuss the cotton price issue and to revise yarn prices.

He also requested apparel exporters to keep the additional cost of buying yarn in mind and to factor that into their pricing when negotiating with buyers. He said BTMA members will honour the existing proforma invoices (PI) but in the coming days the PIs might include a higher price, which is fully dependent on the future market index.

A proforma invoice is a preliminary bill or invoice used to request payment from a committed buyer, for goods or services before they are supplied.

BKMEA Executive President Mohammad Hatem told The Business Standard, "If the price of cotton increases, the price of yarn has to be revised as per the agreement reached in our previous meeting. But spinning mills have to discuss this with us before raising prices.

"It will be important and useful for us to negotiate with garment buyers, otherwise apparel exporters will be adversely affected."

At Tuesday's meeting, BTMA Director Syed Nurul Islam said, "The price of cotton and other key raw materials for making yarn have been increasing, which has become a major challenge for this sector and this might continue till 2022.

"Freight costs have also increased about 350%, and some raw materials have gone up about 500%, all of which have a ripple effect on yarn prices."

Md Mozaffar Hossain, managing director of SIM Group, said, "We should put pressure on global apparel buyers as the price of cotton is going high. We, textile makers and garment exporters, should hold talks among ourselves every five days to set the price of yarn."

Former BGMEA president Anwar Ul Alam Parvez said, "Prices of everything except garments are increasing. Now it is time to find a solution to protect the interests of all three associations – the BTMA, BGMEA, and BKMEA."

He also suggested calling a meeting of all buyer representatives to explain to them raw material prices and ask for a fair price for our finished products.

In FY21, Bangladesh was the second largest apparel exporter and earned over $31 billion from it.

The country was also the second largest global importer of cotton in the last fiscal year. It imported over 8 million bales of cotton, mainly from African countries.

Bangladesh / Top News

Yarn price / BTMA / BGMEA / BKMEA / SIM Group

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Something's rotten in small-cap scrip rally: Experts
    Something's rotten in small-cap scrip rally: Experts
  • Representational Image. Photo: Courtesy
    Mobile internet users hit hard by VAT hike
  • Photo: Mumit M
    Launch routes suffer over 50% passenger drop

MOST VIEWED

  • Protest against dismissal of 80 garment factory workers in Savar
    Protest against dismissal of 80 garment factory workers in Savar
  • Apparel exports see 50% growth in  June amid high inflation in EU, USA
    Apparel exports see 50% growth in June amid high inflation in EU, USA
  • Experts and industry insiders expressed hope that the RMG sector would be able to overcome the challenges posed by the novel coronavirus outbreak 
Photo: TBS
    Export earnings cross $50b riding on RMG
  • Photo: TBS
    Food concerns tell on clothing sales
  • Ashikur Rahman Tuhin. Sketch: TBS
    Bangladesh’s apparel industry growth is here to stay
  • Infographic: TBS
    Doubled source tax to put RMG exporters into trouble: Businesses

Related News

  • BGMEA, PwC sign deal to conduct study on Bangladesh's RMG sector roadmap to recovery
  • 17 Bangladeshi exhibitors take part at Heimtextil and Techtextil 2022 
  • BGMEA wants duty-free market access to Russia
  • BGMEA wants export earnings repatriation time extension
  • Resolve delays in bond activities, demands BGMEA

Features

The eye-catching commuter: Suzuki Gixxer SF 155

The eye-catching commuter: Suzuki Gixxer SF 155

20h | Wheels
Photo: Collected

Sapiens – A Graphic History 

1d | Book Review
Black-naped Monarch male  Photo: Enam Ul Haque

Black-naped Monarch: A sovereign who never abandoned the Indian subcontinent

1d | Panorama
The 136-year-old company on its last legs

The 136-year-old company on its last legs

1d | Features

More Videos from TBS

Bangabandhu Tunnel to change lives of million

Bangabandhu Tunnel to change lives of million

7h | Videos
Sowari Ghat's fresh fish market

Sowari Ghat's fresh fish market

7h | Videos
Ukraine changes war strategy under Russian pressure

Ukraine changes war strategy under Russian pressure

8h | Videos
Rajshahi Metropolitan Police observes 30th founding anniversary

Rajshahi Metropolitan Police observes 30th founding anniversary

10h | Videos

Most Read

1
Padma Bridge from satellite. Photo: Screengrab
Bangladesh

Padma Bridge from satellite 

2
Meet the man behind 'Azke amar mon balo nei'
Splash

Meet the man behind 'Azke amar mon balo nei'

3
TBS Illustration
Education

Universities may launch online classes again after Eid

4
Photo: TBS
Bangladesh

Motorcycles banned on Padma Bridge 

5
Photo: Collected
Economy

Tech startup ShopUp bags $65m in Series B4 funding

6
World Bank to give Bangladesh $18b IDA loans in next five years
Economy

World Bank to give Bangladesh $18b IDA loans in next five years

EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2022
The Business Standard All rights reserved
Technical Partner: RSI Lab
BENEATH THE SURFACE
The Dazzling Fake Flowers: Is there any alternative to artificial flowers while decorating homes, showrooms, offices and business establishments? Fresh flowers are undoubtedly beautiful, but they dry out quickly. Hence, the demand for plastic flowers is rising day by day. Traders said these lifelike silk flowers usually come from China and Thailand. The photo was taken from the 29th International Trade Fair of the Chattogram Chamber on Friday. PHOTO: Mohammad Minhaj Uddin

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net