The trend of continued increase of global cotton prices coupled with the increase in the price of locally produced yarn, is making life difficult for the garment makers, claimed media reports citing industry people.
The report claimed that alongside hike in the global cotton prices in recent months, to make things worse, on an average, spinning mills have increased the price of locally produced yarn by US $1.50 per kilogramme, which the industry people, reportedly, claimed was putting additional burden on the garment exporters who are already battling the diverse fallouts of the COVID-19 pandemic.
Speaking to the media, industry insiders, reportedly, claimed that taking advantage of the coronavirus outbreak, mill owners have raised the yarn prices in the domestic market even as spinning mills have, reportedly, attributed the rising demands for cotton globally, supply crunch, and what they called upward costs of other related logistics followed by the pandemic-induced lockdown for the increase in cotton prices while terming the increase in local yarn prices as ‘unusual’, the Bangladesh Garment Buying House Association (BGBA) had on 15 March, reportedly, written a letter to the Bangladesh Textile Mills Association (BTMA) to know the reason behind the hike even if the BGBA maintained that they were also facing difficulties in marketing locally made apparel items due to rise in local yarn prices.
