Home / Knowledge / News / Textiles / Spinning mill closures raise hackles of banking sector
Spinning mill closures raise hackles of banking sector
25
Feb '09
A number of spinning mills have closed down in Bangladesh, while many others have cut back their production by as much as 30-50 percent in the last few months. This is attributed to the unabated imports of yarn from India.

Indian yarn is considered to be fairly cheaper than yarn produced by Bangladeshi spinners, which is leading to an influx of yarn from India. This piquant situation is also accompanied by the slow down in global markets.

Till a few years back, Bangladesh had to import a large quantity of raw material in the form of yarn or fabrics to feed the overgrowing appetite of the burgeoning apparel export industry, which led to large scale investments in the spinning sector.

The textile industry to a large extent was helped by the banks who also saw an opportunity to grow their assets. But today these same banks face the reality of spinning mills, defaulting on their repayment schedules.

The moot question that is now troubling the banking sector is that their very survival is at stake now, since the banks have massive exposure to these mills and if the spinning sector collapses, it will take down with it the banking sector too.

Fibre2fashion spoke to an official of the Bangladesh Textile Mills Association (BTMA), who said, “Out of 341 mills, more than 10 mills have closed down & several other spinning mills have reduced their production capacity by almost 50 percent”.

He added by saying, “A meeting took place last Thursday, to discuss the issue and a high power committee has been formed to evaluate the whole issue, which will also put across suggestions to solve the problem”.

He continued by saying, “Committee will also submit a report giving suggestions about the stimulative package and the committee consists of President & Vice President of BTMA along with prominent members of the association”.


Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 21st Jul 2017

No shortage of cotton & yarn in country: Minister

There is no shortage of cotton and yarn in the country, and the...

Pic courtesy: Sutlej Textiles & Industries Ltd

Textiles | On 21st Jul 2017

Sutlej Textiles’ Q1 FY18 EBITDA expands to Rs 76.28 cr

Sutlej Textiles and Industries Ltd (STIL), one of India’s largest...

Textiles | On 21st Jul 2017

CAI revises 2016-17 cotton crop to 337.25 lakh bales

Cotton Association of India (CAI) has upwardly revised cotton crop...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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

July 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

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

Yes No

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

Yes No

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


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



X