Weavers in the handloom and power loom sectors have been hit hard with the surge in yarn prices, as the expensive knitting thread has turned home textile products less competitive in both the national and international markets.
According to industry sources, over the last two months, the prices of yarn based on quality, have gone up by 50 percent, compelling a number of handlooms and power looms to halt operations.
More so, the rising prices of cotton in the international markets has also lead to a hike in yarn prices, but the abnormal hike in yarn prices was due to a particular segment of yarn producers, who banked on the global markets.
Sharif M Afzal Hossain, President, Bangladesh Specialised Textile Mills and Power Loom Industries Association said that, owing to less production the cotton prices in the international markets increased by over 10 percent, but quite atypically the yarn prices in local markets rose by around 60 percent. He also added that, they are now unable to export the merchandises at the earlier contracted rates.
He further informed that, they have appealed the government to permit imports of yarn through the Benapole land port, as this will enable them to import yarn from India at reasonable prices. Currently, owing to the ban, imports by sea and air routes consumes a lot of time and they are costlier as well.
The industry circles stated that the rise in yarn prices has rendered the handloom and power loom products expensive in the domestic and international markets, while compelling over 25 percent of the looms to cease production.
The Bangladesh Handloom Board statistics state that, currently in the country there are around 0.5 million handlooms with over one million handloom weavers, whereas the industry's production each year aggregates to around 620 million metres of yarn.
Fibre2Fashion News Desk - India