Govt firm to arrest yarn price hike: Faruk
Friday, 14 May 2010
Monira Munni
Commerce minister Faruk Khan has said the government will take effective steps to reduce yarn prices as the textile raw material prices have sky-rocketed affecting its end-users.
"We will solve the problem through discussion and the government will extend all possible assistance to this effect," he said at the inaugural of a training programme organised by Bangladesh Garment Manufacturers and Exporters Association Thursday.
The government has started procedures to import yarn from Africa, he added.
The minister's comments came when weavers across the country stopped their work on Wednesday calling an indefinite strike demanding reduction of yarn price and opening of yarn import from India through Benapole land port.
Several thousand handloom owners and weavers passed the second day of strike blocking Dhaka-Sylhet Highway in Madhabdi upazila halting traffic movement for an hour Thursday to press home their demands.
Bangladesh Handloom and Power-loom Owners' Association (BHPOA) had announced the strike on May 8.
BHPOA general secretary Ayub Ali told the FE that they have not seen any sign of initiatives from the government to address their demand for lowering yarn prices.
Weavers-- for some weeks-- have been demanding permission to import yarn through Benapole port following the dramatic rise in yarn price.
One pound of 40 count yarn had been available at Tk 65 in October last year, which has been increased to Tk 115, weavers claimed.
According BHPOA, about 0.6 million looms met closure and the rest of the looms failed to use their production capacity due to the high price of yarn affecting 1.4 million looms.
The local handloom industry meets 80 per cent of the total demand, the association sources said.
According to industry insiders, the country's annual yarn demand is 1.0 million tonnes, of which 0.7 million tonnes is for the knit sector and the remainder for the weaving industry.
On the other hand, Bangladesh Textile Mills Owners Association (BTMA) president Abdul Hai Sarker said yarn prices have already started to come down in the local market.
He said yarn prices have gone up in the local market due to international price hike and severe power crisis, which raised their production cost.
"But yarn prices started coming down in the local market due as the demand slumped with the onset of the lean period in garments manufacturing," he said.
The lean period in garments production starts in June and continues till September, the BTMA president added.
However, BTMA has also requested the government to allow weavers to import the raw materials, provided conditions of bonded license are followed like by the knitters, he added.
Commerce minister Faruk Khan has said the government will take effective steps to reduce yarn prices as the textile raw material prices have sky-rocketed affecting its end-users.
"We will solve the problem through discussion and the government will extend all possible assistance to this effect," he said at the inaugural of a training programme organised by Bangladesh Garment Manufacturers and Exporters Association Thursday.
The government has started procedures to import yarn from Africa, he added.
The minister's comments came when weavers across the country stopped their work on Wednesday calling an indefinite strike demanding reduction of yarn price and opening of yarn import from India through Benapole land port.
Several thousand handloom owners and weavers passed the second day of strike blocking Dhaka-Sylhet Highway in Madhabdi upazila halting traffic movement for an hour Thursday to press home their demands.
Bangladesh Handloom and Power-loom Owners' Association (BHPOA) had announced the strike on May 8.
BHPOA general secretary Ayub Ali told the FE that they have not seen any sign of initiatives from the government to address their demand for lowering yarn prices.
Weavers-- for some weeks-- have been demanding permission to import yarn through Benapole port following the dramatic rise in yarn price.
One pound of 40 count yarn had been available at Tk 65 in October last year, which has been increased to Tk 115, weavers claimed.
According BHPOA, about 0.6 million looms met closure and the rest of the looms failed to use their production capacity due to the high price of yarn affecting 1.4 million looms.
The local handloom industry meets 80 per cent of the total demand, the association sources said.
According to industry insiders, the country's annual yarn demand is 1.0 million tonnes, of which 0.7 million tonnes is for the knit sector and the remainder for the weaving industry.
On the other hand, Bangladesh Textile Mills Owners Association (BTMA) president Abdul Hai Sarker said yarn prices have already started to come down in the local market.
He said yarn prices have gone up in the local market due to international price hike and severe power crisis, which raised their production cost.
"But yarn prices started coming down in the local market due as the demand slumped with the onset of the lean period in garments manufacturing," he said.
The lean period in garments production starts in June and continues till September, the BTMA president added.
However, BTMA has also requested the government to allow weavers to import the raw materials, provided conditions of bonded license are followed like by the knitters, he added.