Bangladesh Clothing Manufacturers Welcome Low Yarn Prices

Textile manufacturers and exporters in Bangladesh expect that their products will be more competitive after the international cotton and yarn prices drop by 30% and 15% respectively, industry officials said.

Garments and garments are the main export products of Bangladesh, and the export volume as of June 2008 reached US $10 billion 700 million, accounting for 76% of the total annual export revenue of the country.

In the international market, cotton traded at about 62-65 cents / pound, 85 cents / pound three months ago.

In Bangladesh, the price of 30 yarns used in making garments has reached $2.60 / kg, and 3 dollars / kg three months ago.

Abdullah, President of the Bangladesh Textile Mills Association (BTMA), told Reuters on Sunday: "the fall in cotton prices will drive our imports, and the same production cost will be more competitive."

The importer attributed the low price to the decline in freight rates, and fuel prices fell and freight rates declined during the global financial turmoil.

Bangladesh imports nearly 2 million 700 thousand bales of cotton every year, which is close to investing $1 billion 100 million, of which 65% of cotton comes from Uzbekistan.

The decline in yarn prices will continue to increase clothing production and make exports more competitive, said Hu Qi, President of Bangladesh knitwear manufacturers and Exporters Association (BKMEA).

Hu Qi said: "the decline in cotton and yarn prices will help us cope with the pressure from buyers in the US and European markets, which are hit by recession, and exports to these two markets account for 90% of Bangladesh's total export earnings."

Bangladesh's yarn consumption has increased over the past few years, as the country's new spinning and knitting factories have been put into operation.

Local yarn manufacturers now supply 90% of the raw material demand to the knitting grade two sector, supplying 40% of the raw material demand to the two level weaving department.

Bangladesh's yarn manufacturing units also imported cotton from India, Pakistan, Australia, the United States and some African countries.

Yang Jing: editor in charge