BTMA requests millers
The Bangladesh Textile Mills Association (BTMA) has asked its members to keep yarn prices unchanged till November 30.
Mohammad Ali Khokon, president of BTMA, urged its members in a letter issued on Wednesday to follow the existing price index (PI) conditions.
Due to the rise in cotton prices from September 28 till date, the yarn prices made from cotton purchased during the period will be effective for the next 60 days or until November 30, the letter stated.
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In recent times, the cotton PI has been at its highest in the last decade.
Keeping in mind the cotton crisis, the BTMA board of directors held an emergency meeting on Tuesday.
At the meeting, the textile millers said that there was no possibility of reducing cotton prices.
They also instructed the members to remain alert when purchasing cotton.
Referring to the emergency board meeting, the BTMA president said in the letter: "Due to the rise in cotton prices since September 28 till date, the yarn prices made from cotton purchased during the period will be effective for next 60 days.”
Textile millers and apparel manufacturers fixed yarn prices last Saturday, lowering prices slightly.
According to the newly fixed prices, the ceiling of 30s carded yarn has been set at $4.20 per kg, while that of 30s combed yarn has been set at $4.50 per kg.
According to the industry insiders, 70-80% of the demand for yarn is met by local spinners.
Also Read - Rising yarn prices, apparel sector in chaos
Bangladesh imports 20-30% of yarn from India, Pakistan, Indonesia, and Turkey and most of them are specialized varieties.
Before this, the rising yarn prices for several months had created a chaotic situation for textile millers and apparel exporters.
Apparel and terry towel exporters alleged that the spinning millers unfairly and abnormally increased yarn prices which put the exporters in a difficult situation for the last seven to eight months.
However, textile millers denied the allegation and claimed that they are not hiking prices intentionally.