The Bangladesh Textile Mills Association (BTMA) recently suggested forming a permanent monitoring committee to look into yarn import through three land ports—Benapole, Bhomra and Sonamasjid. The four-point proposal by the spinners’ association reiterated their previous stance and opposed allowing partial import of yarn through these land ports.
BTMA urged the government to ensure the required infrastructure with installed yarn measurement equipment according to its count and deploy skilled workers to deal with the import of raw materials for readymade garments (RMG) before allowing them through these three land ports.
BTMA President Mohammad Ali Khokon wrote a letter to the National Board of Revenue (NBR) in this regard. High global cotton prices have pushed up the prices of locally-produced yarn, he wrote, and as a result, RMG makers are facing an uneven competition with other countries.
Currently, the industry can import raw materials like cotton, yarn, fabrics and others used for readymade garment manufacturing under the bonded-warehouse facility through Benapole while partial imports are allowed only in Chattogram port.
Amidst the hike in price of yarn in the domestic market, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA) in August had urged the government to allow import of raw materials, including cotton, yarn and fabrics, under the bonded-warehouse facility through all the land ports between Bangladesh and India for uninterrupted production and retaining competitiveness in the global apparel market. BTMA had then opposed yarn import through all land ports.
The BGMEA, BKMEA and BTMA later jointly fixed the upper ceiling of yarn prices taking the global cotton prices into consideration and agreed to review the rate from time to time if needed.
