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Spinners demand end to yarn import via Benapole
13 Apr '10
2 min read
To put an end to yarn smuggling and protect domestic investment in the downstream textile sector, spinning mill owners requested the government to block yarn import through the Benapole land port. According to them, importers brought yarn through forged declaration.
Abdul Hai Sarker, President, Bangladesh Textile Mills Association (BTMA) said, “Allowing the import of yarn via the Benapole port will lead the country's spinning sub-sector into a life and death situation”. With the idea of selling imported yarn to the domestic weavers at reduced costs, the textiles and jute ministry had allowed the import of yarn via the Benapole port.
Due to severe shortage of gas and power, the manufacturing capacity of industrial units, especially spinning sub-sectors and garments, has reduced by 50 percent. This has resulted in both, losses for the spinners as well as a fall in production in the factories.
Sarker continues, “The spinners will not be able to sell their products in the domestic market, and thereby will not be able to compete with India if the government continues to permit yarn import through Benapole.” Since three months, raw cotton prices in the international market have increased by 60 percent, which has adversely disturbed the spinning sub-sector, said the BTMA president.
Says Sarker, “The local weavers have access to yarn from the domestic markets, and therefore this move by the government is intolerable.”
Spinners also inform that, a certain segment of the local buyers are keen on importing yarn via the Benapole land port, in spite of having access to the same in the local market, because, they get the leverage of importing it under bogus declaration with the support of some corrupt government officials.
Currently, nearly 200 mills supply yarn to the domestic weavers, generating employment for nearly 200,000 people directly and one million people indirectly. About Tk 10,000 crore was invested in these mills.
Abdul Hai Sarker, President, Bangladesh Textile Mills Association (BTMA) said, “Allowing the import of yarn via the Benapole port will lead the country's spinning sub-sector into a life and death situation”. With the idea of selling imported yarn to the domestic weavers at reduced costs, the textiles and jute ministry had allowed the import of yarn via the Benapole port.
Due to severe shortage of gas and power, the manufacturing capacity of industrial units, especially spinning sub-sectors and garments, has reduced by 50 percent. This has resulted in both, losses for the spinners as well as a fall in production in the factories.
Sarker continues, “The spinners will not be able to sell their products in the domestic market, and thereby will not be able to compete with India if the government continues to permit yarn import through Benapole.” Since three months, raw cotton prices in the international market have increased by 60 percent, which has adversely disturbed the spinning sub-sector, said the BTMA president.
Says Sarker, “The local weavers have access to yarn from the domestic markets, and therefore this move by the government is intolerable.”
Spinners also inform that, a certain segment of the local buyers are keen on importing yarn via the Benapole land port, in spite of having access to the same in the local market, because, they get the leverage of importing it under bogus declaration with the support of some corrupt government officials.
Currently, nearly 200 mills supply yarn to the domestic weavers, generating employment for nearly 200,000 people directly and one million people indirectly. About Tk 10,000 crore was invested in these mills.
Fibre2Fashion News Desk - India
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