In spite of an increase in demand for yarn and fabrics during the last ten years, textile mills operating under Bangladesh Textile Mills Corporation (BTMC) are running in losses, according to a recent study released by the Ministry of Textiles and Jute (MoTJ).
As per the official data, the total loss incurred by the BTMC during the last ten years is more than Tk 6 billion. In fiscal 2010-11 itself, the corporation incurred a loss of Tk 486 million.
The MoTJ report says the huge loss is due to use of outdated machinery, bureaucratic hurdles, and shortage of skilled manpower, among other things.
During the last twenty years, many new textile mills have been set up under the private sector in Bangladesh. On the other hand, the BTMC has either handed over or sold out 65 of its 86 textile mills to the private sector by December 2010.
The MoJT study states that Bangladesh has more than 1,158 cotton and textile mills, of which only 22 are under the BTMC, while the remaining 1,136 mills are owned by private entrepreneurs.
Bangladesh's average annual demand for cotton yarn is 1,872 million kg, the report indicates. It adds that local mills supply 951 million kg of yarn and the remaining 921 million kg is met through imports.
The current annual consumption of fabrics in Bangladesh is 5,612 million metres and the demand would grow to 7,164 million metres by 2015, the report mentions.
Recently, the BTMC has taken initiatives to set up “textile palli” or textile village in the area of each mill under the corporation in order to increase efficiency of the mills as well as to make optimum use of the land.
Fibre2fashion News Desk - India