Steps to rein in prices of yarn being taken

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FE Report
The government is taking measures to rein in the prices of yarn in the local market, Commerce Minister M Faruk Khan said Tuesday.
The commerce minister's assurance came during a meeting with the leaders of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) at his office in the city.
"I expect a remedy to this situation by the next one week," Faruk Khan said.
He also said he will meet with the leaders of BTMA, BGMEA and the BKMEA over the next two or three days prior to taking a concrete decision on the price of yarn.
The minister, however, suggested the BKMEA leaders to prepare a report on trend of prices of cotton of the last three months in the international market.
Earlier, the BKMEA leaders said many knit factories are now being closed down following the price rise of cotton, the main raw material of knit products, leading to layoff of workers.
BKMEA leaders said the price of yarn now stood at US$ 5.10 a kilogramme against $ 4.50 during few days back.
AKM Salim Osman, BKMEA president, told the FE after emerging the meeting said local spinners are making windfall profit capitalising the price rise of cotton in the international market.
"It is no denying that cotton prices are soaring in the international market, but they are rising beyond any proportion in the local market," Mr Osman added.
He, however, said the minister had assured them of taming the prices of yarn after meeting with textile and spin millers.
Mr Osman said they do not need any incentive package if the government can fix the yarn prices at $4.0 a kg.
BKMEA team comprising 34 members also urged the government to provide power and gas supply to knit factories.
"We use generator at least seven hours a day, which not only raises the production cost but also cut production," Mr Osman added.