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

Union Minister for finance Arun Jaitley chairing the 25th GST Council meeting, flanked by minister of state for finance Shiv Pratap Shukla (right) and finance secretary Dr Hasmukh Adhia. Courtesy: PIB

Textiles | On 20th Jan 2018

GST rate on velvet fabric reduced to 5%

The 25th Goods and Services Tax (GST) Council meeting, held under the ...

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

Textiles | On 20th Jan 2018

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

The revenue from the petrochemicals segment at Reliance Industries...

Courtesy: Cotton USA

Textiles | On 20th Jan 2018

US cotton bodies pledge to support CCI activities

Ten US cotton organisations have pledged industry contributions in...

Interviews View All

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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

January 2018

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
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

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
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

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
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

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
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


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