Recent hike in international cotton prices has taken its toll on country's knitwear sector, leading to a increase in the cost of knitwear items on account of higher yarn prices, which have grown by around 10 percent per kg, in the last one month.
Domestic textile mills escalated the prices of yarns, due to increase in prices of cotton in global market and passed on the increase in costs to the downstream users.
However, the price hike in local market is higher than the global market. Yarn prices which stood at around $3.6 to $3.7 per kg, just a month ago, is now quoting at $4 per kg.
Knitwear manufacturers are facing price negotiation issues with foreign buyers, due to the hike in their costs. Experts aver that, continued growth of yarn prices will impact the knitwear sector, negatively.
Textile mill owners used higher international prices for cotton and cited short supplies and energy crises as reasons for pricing yarn extremely high. Knitwear and garment sectors consume 1.2 to 1.4 million tons of yarn per year, of which, they import 20 percent from overseas markets.
There are around 360 textile spinning mills in Bangladesh with a million employees. The garment industry, which is country's biggest export industry, garnered $12.5 billion from exports last fiscal, of which woven and knitwear sector earned $6.01 billion and $6.48 billion, respectively.
Fibre2fashion News Desk - India
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