Category: YARNS
Country: Bangladesh
Region: Asia
By Apparel Resources News-Desk
2nd January, 2024
1 min read
Local spinners are urging the Government to amend yarn import regulations, proposing a mandatory provision for export-oriented readymade garment factories to acquire 70 per cent of their total cotton yarn needs from domestic spinning mills through back-to-back letters of credit.
This initiative aims to alleviate the existing dollar crisis.
The Bangladesh Textile Mills Association (BTMA) conveyed this request to the National Board of Revenue chairman, Abu Hena Md Rahmatul Muneem recently.
The BTMA argued that using local yarns in apparel production would result in a 65 per cent value addition, compared to 30 per cent when using imported yarns.
Despite the BTMA’s assertion of the local spinners’ capability to meet 85 per cent of the export-oriented apparel industry’s demands with high-quality carded and combed yarns, apparel exporters reportedly dismissed the demand as unacceptable.
They contend that local yarns are not price-competitive.
In response, apparel makers suggest that instead of enforcing mandatory procurement, local spinners should focus on enhancing quality and competitiveness to naturally increase their market share.
Courtesy: Apparelresources.com
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