Knitwear sector thrives on higher yarn consumption

02 Apr '08

2 min read

A good number of factories are coming up in Bangladesh, increasing the growth of the knitwear sector by nearly 40 percent.

Yarn being the chief raw material used in knitwear products, emerged as the single largest export item of the country in the recent years.

Its consumption has made a remarkable surge in the first two months of 2008 aptly reflecting the growing strength of the knitwear industry.

According to Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), yarn consumption in January was 67 percent higher compared to the figures of the same month in the previous year.

In fact, consumption increased further by 35 percent in February than in the same period in 2007.

Going by the trend, experts believe that yarn consumption for March is likely to register a year on year growth of 40 percent.

This positive result is largely due to heavy investments made in knitwear sector for completing order placed by foreign buyers during the last quarter this ongoing financial year.

The General System of Preference (GSP) that exempts Bangladesh from paying tariff for exporting goods to developed markets is one of the major reasons behind increasing foreign investments in the country.

In addition to this, easy availability of yarn in local markets and cheap labor has also played its part in attracting investment proposals.

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