Yarn price increase force closure of 12,000 handloom units

06 Mar '06

1 min read

Cotton yarn prices almost doubled since last year, handloom products prices including saree, lunghi and gamchha remained unchanged.

Ban through land import and increase in value of US Dollar resulted in increase in yarn prices, sources said.

Since January, this caused almost 12000 handloom units in five southwestern districts to shut down, rendering about 50,000 workers jobless.

Last year in January, price of a bale of 40-count yarn rose to Tk 25,000 from Tk 22,000, later soaring to Tk 27,000 during September and to Tk 38,000, this year in January, a villager weaver informed.

The going rate for a 40-count cotton yarn bale in open market presently is between Tk 38,000 and Tk 42,000 sources said, compelling many weavers to shut down their looms due to rise in cost of production.

He explained that three pieces of lungi or two sarees or seven pieces of gamchha can be produced from one bundle of coloured yarn and one bundle of white yarn, costing Tk 450.

Three pieces of lungi can be sold between Tk 350 and Tk 400, two sarees at around Tk 400 and seven pieces of gamchha at Tk 350, which makes it an unprofitable venture, he argued.

More Textiles News - Bangladesh...