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Apparel exporters in Bangladesh worry over rising domestic yarn prices
11 Aug '21
2 min read
Pic: Shutterstock
Apparel exporters in Bangladesh have expressed concern over the rise in yarn prices in the domestic market. With the country receiving more work orders as stores open in Europe and the United States following mass vaccination in those countries, an unusual increase in yarn prices has made it tough for garment manufacturers to accept the orders, they lamented.
Representatives of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the Bangladesh Terry Towel & Linen Manufacturers & Exporters Association (BTTLMEA) said this at a meeting held at the BGMEA office on August 8. BGMEA president Faruque Hassan chaired the meeting.
They said domestic mills are increasing yarn prices every day and providing proforma invoice with a short time limit, which makes it difficult to open letter of credit.
Moreover, it takes around 15 days to confirm orders. As a result, apparel manufacturers could not take many of the offered orders despite having capacity.
Even many factories are taking work orders under breakeven point only to stay in business. Buyers do not increase apparel prices as they only look at ‘freight on board’ (FOB), newspapers in the country reported.
They also decided to hold talks with policymakers to ensure yarns are available at reasonable prices.
Representatives of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the Bangladesh Terry Towel & Linen Manufacturers & Exporters Association (BTTLMEA) said this at a meeting held at the BGMEA office on August 8. BGMEA president Faruque Hassan chaired the meeting.
They said domestic mills are increasing yarn prices every day and providing proforma invoice with a short time limit, which makes it difficult to open letter of credit.
Moreover, it takes around 15 days to confirm orders. As a result, apparel manufacturers could not take many of the offered orders despite having capacity.
Even many factories are taking work orders under breakeven point only to stay in business. Buyers do not increase apparel prices as they only look at ‘freight on board’ (FOB), newspapers in the country reported.
They also decided to hold talks with policymakers to ensure yarns are available at reasonable prices.
Fibre2Fashion News Desk (DS)
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