Textile mills seek cash help to stay in race
Monday, 27 October 2008
FE Report
Local textile millers urged the government Sunday to provide cash assistance to the sector immediately to make them competitive in the market against the backdrop of the global financial crisis.
They also said currency devaluation and cut in interest rate are also important to stave off any fallout from the global financial crisis and help them compete with the countries like India and Pakistan.
"We want at least 15 per cent cash incentive at this critical juncture. Otherwise, hundreds of textile mills will shut down shortly," said Abdul Hai Sarkar, president of Bangladesh Textile Mills Association (BTMA).
The BTMA president said the Indian yarn continues to be dumped into the country because of its cheaper price than that of Bangladesh following devaluation of the rupee against dollar.
"The local textile mills now cannot sell their yarn and it keeps being stacked up in factories. On the other hand, import of Indian yarn at a dumping price has increased significantly resulting in a drop in sales of the local yarn," the BTMA chief added.
The textile millers said the yarn manufacturers are already incurring losses as they procured cotton at higher prices mainly because of the higher freight rate a couple of months back.
"Now petroleum prices in the international market have dropped by more than 60 per cent. The local textile mills are incurring losses also due to the high procurement prices of cotton," the BTMA chief said.
Local textile millers urged the government Sunday to provide cash assistance to the sector immediately to make them competitive in the market against the backdrop of the global financial crisis.
They also said currency devaluation and cut in interest rate are also important to stave off any fallout from the global financial crisis and help them compete with the countries like India and Pakistan.
"We want at least 15 per cent cash incentive at this critical juncture. Otherwise, hundreds of textile mills will shut down shortly," said Abdul Hai Sarkar, president of Bangladesh Textile Mills Association (BTMA).
The BTMA president said the Indian yarn continues to be dumped into the country because of its cheaper price than that of Bangladesh following devaluation of the rupee against dollar.
"The local textile mills now cannot sell their yarn and it keeps being stacked up in factories. On the other hand, import of Indian yarn at a dumping price has increased significantly resulting in a drop in sales of the local yarn," the BTMA chief added.
The textile millers said the yarn manufacturers are already incurring losses as they procured cotton at higher prices mainly because of the higher freight rate a couple of months back.
"Now petroleum prices in the international market have dropped by more than 60 per cent. The local textile mills are incurring losses also due to the high procurement prices of cotton," the BTMA chief said.