Dhaka to get 0.20m tonnes cotton from Tashkent a yr
Tuesday, 7 December 2010
FHM Humayan Kabir
The Uzbek government has assured Bangladesh of supplying 0.20 million tonnes of cotton every year under direct trading system eliminating the present complex business procedure, officials said Sunday.
Commerce ministry officials said following request from Dhaka, Tashkent has decided to provide the cotton export quota for Bangladesh as the demand of the raw materials in the local apparel industry is growing every year.
During a visit of a Bangladeshi delegation, led by commerce minister Faruk Khan, to Tashkent in early November a meeting was held with the Uzbek Deputy Prime Minister who gave the assurance, the officials said.
At present, Bangladeshi yarn producers purchase Uzbek cotton from third countries, especially from the Geneva and London-based merchants, which swells the unit prices compared to the price at source.
The country's largest export earning apparel sector is fully dependent on foreign cotton as the production volume of the crop in Bangladesh is negligible.
"We are now contacting the Uzbek government for finalising the deal that resulted from their commitment," a senior commerce ministry official told the FE.
He said the Uzbek Deputy Prime Minister at the bilateral talks has assured us of supplying the cotton directly at international rate eliminating the present complex trading system.
The local ready-made garment (RMG) producers have been hard hit due to higher prices of the yarn and fabrics on the local market owing to the overheated raw materials.
Due to repeated suspension of cotton export by India, the world's second largest cotton supplier, and the volatile international market, local yarn and fabric prices have soared unusually.
The senior commerce ministry official said: "We have requested the Uzbek government to export 0.4 to 0.45 million tonnes of cotton every year. But it has given confirmation of 0.20 to 0.25 million tonnes of cotton supply."
"The Uzbek government has suggested us to import yarn from their country after setting up joint-venture plants there. In addition to the 0.20 million tonnes of cotton supply, Tashkent has also decided to export yarn," he said.
Uzbekistan is the third highest cotton grower in the world that exports the yarn raw materials to different textile-making countries.
Garment manufacturers said the prices of yarn in the local market rose to $4.5 to $5.50 per kg in the recent days as the cotton market in the world became volatile. It was sold at $ 1.0 or less per kg three months back and less than $ 3.0 two years back.
The Uzbek government has assured Bangladesh of supplying 0.20 million tonnes of cotton every year under direct trading system eliminating the present complex business procedure, officials said Sunday.
Commerce ministry officials said following request from Dhaka, Tashkent has decided to provide the cotton export quota for Bangladesh as the demand of the raw materials in the local apparel industry is growing every year.
During a visit of a Bangladeshi delegation, led by commerce minister Faruk Khan, to Tashkent in early November a meeting was held with the Uzbek Deputy Prime Minister who gave the assurance, the officials said.
At present, Bangladeshi yarn producers purchase Uzbek cotton from third countries, especially from the Geneva and London-based merchants, which swells the unit prices compared to the price at source.
The country's largest export earning apparel sector is fully dependent on foreign cotton as the production volume of the crop in Bangladesh is negligible.
"We are now contacting the Uzbek government for finalising the deal that resulted from their commitment," a senior commerce ministry official told the FE.
He said the Uzbek Deputy Prime Minister at the bilateral talks has assured us of supplying the cotton directly at international rate eliminating the present complex trading system.
The local ready-made garment (RMG) producers have been hard hit due to higher prices of the yarn and fabrics on the local market owing to the overheated raw materials.
Due to repeated suspension of cotton export by India, the world's second largest cotton supplier, and the volatile international market, local yarn and fabric prices have soared unusually.
The senior commerce ministry official said: "We have requested the Uzbek government to export 0.4 to 0.45 million tonnes of cotton every year. But it has given confirmation of 0.20 to 0.25 million tonnes of cotton supply."
"The Uzbek government has suggested us to import yarn from their country after setting up joint-venture plants there. In addition to the 0.20 million tonnes of cotton supply, Tashkent has also decided to export yarn," he said.
Uzbekistan is the third highest cotton grower in the world that exports the yarn raw materials to different textile-making countries.
Garment manufacturers said the prices of yarn in the local market rose to $4.5 to $5.50 per kg in the recent days as the cotton market in the world became volatile. It was sold at $ 1.0 or less per kg three months back and less than $ 3.0 two years back.