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Bangladesh textile millers have called for a temporary halt on cotton yarn import for use by the readymade garment industry to retain forex reserves and to boost value addition.
While mills have a significant stock of raw material due to a fall in demand, RMG units import cotton carded and combed yarn spending a lot.
Exporters have opposed the proposal.
The Bangladesh Textile Mills Association (BTMA) recently called for a temporary halt on cotton yarn import for use by the readymade garment (RMG) industry to retain forex reserves and to boost value addition.
BTMA president Mohammad Ali Khokon conveyed the proposal in a letter to the Bangladesh Bank governor. Exporters, who have opposed the proposal, argue the move would undermine their competitiveness in global markets.
Some 510 local spinning mills, with a 3,600 million kg production capacity, can meet 70 per cent of the demand for cotton yarn by the export-oriented RMG industry, BTMA claimed.
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