Textile industry to face widening gap of demand & supply

20 Jun '05

2 min read

The textile industry of Bangladesh, at present in dilemma due to a significant gap takes place in demand and supply for yarn and fabric. The problem is likely to grow bigger, if the appropriate actions to stop this widening gap are not taken soon.

The demand is increased dramatically, as the population and the standard of living is increasing in the country. Thus, it shows an insistent need to raise the production capacities of spinning, weaving, knitting, and dyeing, printing, and finishing sub-sectors. It needs the implementation of the latest and suitable technology to produce quality products at lower prices.

Bangladesh imports most of the raw cotton from overseas, where as countries such as India and Pakistan provides subsidy for the cotton, which is sold out in their domestic markets. Import tariffs and shipping expenses makes the country to pay more prices for the same raw materials.

The local spinning mills has to purchase raw cotton of the same quality at prices nearly at 30 percent higher than the Indian and Pakistani mills.

Bangladeshi spinning mills pays another 6 to 7 percent for handling, freight, and commission charges, which put them in an inconvenient state. The tax for new infrastructure development on all imports adds another 2.5 percent to the price of imported raw cotton.

The government should cut down the import duty on raw cotton, dyes and chemicals to boost the industry.

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