Home / Knowledge / News / Textiles / Bangladesh's yarn spinning sector confronting challenges
Bangladesh's yarn spinning sector confronting challenges
30
Nov '11
Several internal as well as external factors have led to a fall in demand for yarn and are impeding the growth of the spinning sub-sector in Bangladesh, forcing the spinners in the country to curtail their production and operate at only 60 to 70 percent of their production capacity.

The major challenges confronting the spinning industry include invasion of low-cost yarn from China and India, Eurozone crisis, stockpiling of unsold yarn, gas outages and introduction of the relaxed EU rules of origin (RoO).

EU relaxing its RoO since January this year is a major external factor which has led to a fall in demand of yarn, as the garment manufacturers prefer using imported yarn and fabrics over domestic ones as now they even enjoy zero-duty facility for goods produced while using imported raw materials.

Secondly, owing to global financial turmoil, including the European debt crisis, demand for some variety of garments from EU has declined. Orders from global buyers, particularly in the knitwear segment, are experiencing a gradual fall, which too has led to a fall in domestic yarn demand.

Third, spinners currently hold stock of yarn that was spun from costly imported cotton. But now with a major drop in cotton prices globally, weavers and knitters are not willing to buy high-priced yarn, following which a huge quantity of yarn is lying unsold with the spinners.

With an aim to enhance demand the Government introduced some measures like incentives on export of garment items prepared from domestically spun yarn. However, the problems for the sector multiplied with entry of low-cost Indian yarn in the market, as while Bangladesh largely depends on imports, India has a comparative advantage as it produces cotton domestically, which allows it to sell yarn at low prices.

The 30-count yarn, which is under wide consumption, is sold at a price of US$ 3.30 to US$ 3.40 per kg in Bangladesh, while in India it is sold at around US$ 3.10 to US$ 3.20 per kg.

Fibre2fashion News Desk - India


Must ReadView All

Apparel/Garments | On 21st Sep 2017

UK fashion exports £10.7 bn in 2016; highest till now

Exports of British fashion goods rose to £10.7 billion in 2016, the...

Apparel/Garments | On 21st Sep 2017

BFC announces partnership with Chinese firm JD.com

The British Fashion Council (BFC) has forged a new partnership...

Textiles | On 21st Sep 2017

Indonesia’s textile exports may reach $15 billion by 2019

Indonesia’s textile-related exports are projected to reach $15...

Interviews View All

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search