Local textile mills do not see the possibility of supplying yarn at existing capacity in line with the additional export orders of Terry Towel, one of the major export items of Home Textiles.
It is necessary to increase the investment in this sector by supplying yarn according to the demand for this sector, which may take one to two more years. As a result, the people involved in the sector are looking for a solution to the problem of import yarn, said the concerned people in a meeting of textile mill owners with Terry Towel exporters held on Thursday.
This information has been known from the relevant sources present at the meeting. The meeting started in the evening and ended at 8 pm.
Apart from Bangladesh Textile Mills Association (BTMA) president Mohammad Ali Khokon and Bangladesh Terry Towel & Linen Exporters Association (BTTLMEA) chairman Shahadat Hossain Sohel, senior leaders of both the organizations were also present at the meeting.
After the meeting, Bangladesh Terry Towel & Linen Exporters Association (BTTLMEA) Chairman Shahadat Hossain Sohel told Business Standard on Thursday night that the local textile mills were not able to meet the demand for yarn.
Therefore, they will increase new investment. As a result, there is no alternative to import for solving the problem. And the free market economy does not solve the problem by fixing prices.
"As a result, we will seek the cooperation of the Ministry of Commerce to facilitate imports."
Fazlul Hoque, vice-president of Bangladesh Textile Mills Association (BTMA), who was present at the meeting, told Business Standard that "they (Terry Towel) have received many orders. We are not able to supply yarn according to their needs, true. If they need any cooperation in this case, we will tell the government about it."
However, another leader present at the meeting said it was also difficult for exporters to import yarn. Because, 75 percent of their members do not have a bond license. As a result, they will not be able to import yarn with duty free facility. In that case the imported goods may have to be redeemed with a bank guarantee.
Terry Towel products mainly use 10 and 16 count yarns, which are mainly produced from wastage cotton. With the increase in export orders, the quality of these two types of yarn is increasing and the textile mills are supplying denim to the exporters.