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Importing yarn via Benapole rifts textile sector
May '10
As per a textile industry leader, government's decision to permit yarn imports from India via Benapole land port into Bangladesh is posing a threat to the spinning sector.

Government withdrew its 15-year ban on yarn imports via the Benapole land port and in the process has ignored local spinner's opposition, averred an industrial expert.

In the meantime, Lokman Hossain, President of Bangladesh Handloom and Powerloom Owner's Association, declared withdrawal of the weaver's strike during a press conference in Narsingdi.

Also, Abdul Hai Sarker, President of the Bangladesh Textile Mills Association supporting government's decision said that, imports of yarn via Benapole should be allowed under certain conditions.

According to Sarker, government should have carried out an impact study, before permitting yarn via Benapole. He also said that, knitwear manufacturers are already importing yarn through the Benapole land port from India, but under the bonded warehouse licence.

Explaining the opposition by spinners, Fazlul Hoque, President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said that, spinners want to have their monopoly in the market and hence their opposition. But according to him, spinners will not be affected by the imports of yarn via the Benapole port.

As of now, 82/1, 100/1, 100/2 and 120/1-yarn counts, which are mostly used in saris, lungis and gamchhas has been approved by the government. More so, this decision is also not beneficial for the knitwear sector as the 80-and-above count of yarn is not utilised by knitwear producers.

Government's decision of allowing yarn imports, through Benapole land port has been welcomed by Abdus Salam, President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

More so, according to BGMEA with the government's decision on withdrawal of the 15-year ban, the yarn market will now stabilise. The government was also urged to keep a check on yarn smuggling into Bangladesh by corrupt traders.

Fibre2Fashion News Desk - India

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