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Narsingdi handloom units vexed over smuggling of Indian fabric
Aug '08
Handloom factories in Bangladesh are in a critical situation as hundreds of these manufacturing units in Narsingdi district including Jamdani, Katan and Benarashi are witnessing a setback due to ever increasing prices of yarns and dyes and uncontrolled smuggling of Indian fabrics in the local markets.

Experts observing the market have opined that a handful of deceitful yarn and chemical dye traders are purposely creating a shortage of yarn and dye. Under such gloomy situation, handloom factory owners have been forced to halt operation and pull shutters down, rendering nearly one lakh weavers and workers jobless.

According to the figures revealed by the District Handloom Training Center, there were some 25,000 handloom factories in the district which were engaged in the production of saris, lunges, napkins, bed-sheet, and scarfs among others. But the prevalent sky-rocketing prices of yarn and dye and the unchecked illegal import of Indian fabric have compelled nearly 50 percent of the weavers to quit their traditional jobs.

Consequences to this market scenario were also just as obvious. Factories which earlier flourished due to buoyant domestic demand are now running out of business due to unreasonably high prices of yarns and dyes and stiff competition posed by Indian fabrics which are priced comparatively more attractive.

Government needs to step in for bringing about a remedy to this situation, for which, checking illegal trade must be the priority. Further, market stability can only be restored by adopting anti-inflationary measures which alone can bring down the prices of the basic raw material making production more sustainable if not thriving.

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