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Allow yarn import

Terry towel makers urge govt

  • Staff Correspondent
  • 17 August, 2021 12:00 AM
  • Print news

Terry towel and home textile makers on Monday have demanded that the government allow import of 6-20 count yarn, citing the item’s price hike and supply crunch in the local market.

Bangladesh Terry Towel & Linen Manufacturers & Exporters Association (BTTLMEA) sent a letter to Finance Secretary Abdur Rouf Talukder on this issue.

“We depend on locally supplied yarn for producing home textile and terry towel. Though we have enough export order, local mills can’t provide yarn according to our demand and lead time,” it said in the letter.

Besides, price of local yarn is 50-60 percent higher than that of India, Pakistan and other yarn producing countries, BTTLMEA also argued in support of its demand.

The export orders are largely hampered by the scanty supply and high price of local yarn, they also claimed.

They alleged that denim or twill fabric producers get priority in supply of 6-20 counts rotor yarn by the local millers as selling the yarn to them is more profitable.

A slight mixing of virgin cotton with 6-20 counts yarn make it costlier and suitable for denim and twill fabric making.

“As a result, the yarn makers don’t want to supply yarn to towel exporters at lower prices” BTTLMEA letter said.

On the other hand, high quality home textile and terry towel making also requires 6-20 counts ring yarn, local production and supply of which is very scanty compared the demand, according to them. 

Most of the local yarn factories produce ring yarn of over 24 counts, which are suitable for knitting industry, they said, adding that local yarn mills are reluctant to produce and supply ring yarn suitable for towels without big order and good rate, BTTLMEA said.

Although, import of garment and home textile raw materials under bond facility is allowed through Benapole port only, infrastructures of small and medium home textile and terry towel factories are not suitable for bond licence, it pointed out.

In view of this, the trade body requested the finance division to allow all BTTMEA members to import 6-20 count yarn through all the land, sea and river ports.

It also sought approval for partial shipment in case of importing yarn through all the approved sea and land ports, and railway.

                The finance division has also been requested to give tax rebate to the small members who don’t have bond licences.

BTTLMEA demands came a day after the apex apparel sector trade body BGMEA demanded for allowing all the land ports, especially Bhomra and Sona Masjid, for import garment raw materials alongside Benapole.

The trade body claimed that there was no alternative to allow import of yarn to achieve further export growth apart from maintaining the current export market of home textile and terry towel.

The sector can play a very important role in fulfilling the government’s target of $60 billion export earning, if its core raw material’s price is adjusted with the competitive global market through allowing the import, it said.

The cent percent export-oriented industry earned $1.16 billion through exports in 2020-21 fiscal year with 49 percent year-on-year growth.

Industry insiders expect that the earnings can be multiplied to a few billion US dollars once it gets congenial business atmosphere.