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

Apparel/Garments | On 28th May 2017

Over 45% US retailers to use AI in next 3 years: Report

Over 45 per cent retailers in the US plan to utilise artificial...

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Apparel/Garments | On 28th May 2017

Naked Brand, Bendon sign agreement to reorganise

Naked Brand Group, a fashion and lifestyle brand, and Bendon Limited, ...

Interviews View All

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Steve Cole
Xerium Technologies

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

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Marcel Alberts
Eurofibers

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

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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