Terry towels exporters demand cut in interest rates

27 Jul '11

2 min read

Terry towel manufacturing and exports could prove to be the next big opportunity for the Bangladesh textile and apparel sector after the resounding success it has achieved in exports of clothing in the previous fiscal year ending June 2011.

However, the terry towel industry which is growing at an annual rate of 21 percent is bogged down by high interest rates charged by the banks, which is hampering the holistic growth of the sector. Towards that end, the sector has petitioned the government to reduce the interest rates.

At present, there are around 105 member units producing towel & allied products, who together have 5,000 looms. The annual production capacity of those units is 396,000 tons and provides direct employment to around 55,000 men & women.

These units produce a wide range of terry towels for exports which include, face towel, hand towel, kitchen towel, stripped bath towel, terry towel, assorted colour bath towel, dyed terry bath towel, golf towel, bath robe towel, etc.

Bangladesh exports terry towel products to various countries like the US, France, Germany, UK, Sweden, Spain, Italy, Greece, the Netherlands, Finland and Poland. Apart from these, it also exports to a few Asian countries.

According to analysts, the demand for those products is increasing with each passing month, due to the cost effective prices and their quality. However, the high bank interest rates are spoiling the party of the terry towel exporting sector, they add.

To give an example, experts from the terry towel sector aver that, their bank interest rate is about 15-18 percent while the bank interest rate of their main competitor; Pakistan is only 7.5 percent, which makes them uncompetitive in the global markets.

“To be more competitive in export market we have requested the concerned authorities to reduce bank interest rate to single digit. This request has been filed through Bangladesh Exporters Association, as we are the member of the same”, Mr M Anisuzzaman, Chairman - Bangladesh Terry Towel and Linen Manufacturers and Exporters Association told fibre2fashion.

Fibre2fashion News Desk - India

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