The country's spinners have agreed to keep the yarn prices at a reasonable level to help stabilise the volatile local market, its lobby group said Monday.
"The prices of yarn now hover between US$ 3.80 and $4.20 per kilogramme," Mosharaf Hossain, director of Bangladesh Textile Mills Association (BTMA), told journalists after a meeting with textile millers, power loom owners and garment manufacturers at the Ministry of Textile.
His comments came a day after Textile Minister Abdul Latif Siddique threatened to open up Benapole landport for import of cheap Indian yarn, if the spinners failed to cool down prices of yarn by Monday noon.
BTMA director Hossain said prices of yarn in the local market increased, as prices of cotton in the international market have gone up.
"The prices of cotton in the international market have doubled from 55 cents per pound to $1 in the last six months. Besides, our production capacity has dropped sharply due to gas and power crises, which ultimately has increased our production cost."
He said prices of yarn would not increase further in the local market. "The millers and garment makers have told us to keep the prices at a reasonable level and we have agreed to do that," he said adding that there is no scope to reduce the current level of prices.
The country's spinners and textile millers, power loom owners and garment manufacturers had been at loggerheads over the prices of yarn, as the market of the key apparel raw material increased in the country.
Both parties turned to the textile minister amid accusations by the apparel manufacturers and power loom owners that the spinning mills have formed a cartel and are charging excessive prices for their yarn.
On Sunday, top leaders of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Specialised Textile Mills and Power Loom Industries Association (BSTMPIA) and BTMA sat with the textile minister at his office to "fix a fair price of domestic yarn".
The four-hour long marathon talk however ended without any amicable decision, prompting the minister to threaten the spinners.
After Monday's meeting, the textile minister said the prices of yarn were not fixed at the meeting, but there was an understanding to keep the prices reasonable.
"Prices cannot be controlled in a free market economy, but they have agreed to keep the prices at a reasonable level that will help stabilise market," said Mr Siddique terming the two-day long discussion as fruitful.
"We hope the prices of yarn in the local market will come down to a reasonable rate and the market will be stable."
BGMEA president Abdus Salam Murshedy said: "It is true that prices of yarn have increased in the international market. But in the local market the prices have increased unusually and were much higher than the global rates."
He added: "We think it will not be necessary to open up Benapole land port to import from India if the local markets stabilise."
BKMEA president Fazlul Hoque said: "We are not telling the spinners to incur losses. Rather we have told them to fix the prices that is fair," he said urging the spinners not to be profiteers.
BKMEA second vice president M A Baset said: "We have urged the spinners to fix price as per their production cost, which we think is the reasonable price.'
BTMA director Hossain said prices of yarn in the local market increased, as prices of cotton in the international market have gone up.
"The prices of cotton in the international market have doubled from 55 cents per pound to $1 in the last six months. Besides, our production capacity has dropped sharply due to gas and power crises, which ultimately has increased our production cost."
He said prices of yarn would not increase further in the local market. "The millers and garment makers have told us to keep the prices at a reasonable level and we have agreed to do that," he said adding that there is no scope to reduce the current level of prices.
The country's spinners and textile millers, power loom owners and garment manufacturers had been at loggerheads over the prices of yarn, as the market of the key apparel raw material increased in the country.
Both parties turned to the textile minister amid accusations by the apparel manufacturers and power loom owners that the spinning mills have formed a cartel and are charging excessive prices for their yarn.
On Sunday, top leaders of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Specialised Textile Mills and Power Loom Industries Association (BSTMPIA) and BTMA sat with the textile minister at his office to "fix a fair price of domestic yarn".
The four-hour long marathon talk however ended without any amicable decision, prompting the minister to threaten the spinners.
After Monday's meeting, the textile minister said the prices of yarn were not fixed at the meeting, but there was an understanding to keep the prices reasonable.
"Prices cannot be controlled in a free market economy, but they have agreed to keep the prices at a reasonable level that will help stabilise market," said Mr Siddique terming the two-day long discussion as fruitful.
"We hope the prices of yarn in the local market will come down to a reasonable rate and the market will be stable."
BGMEA president Abdus Salam Murshedy said: "It is true that prices of yarn have increased in the international market. But in the local market the prices have increased unusually and were much higher than the global rates."
He added: "We think it will not be necessary to open up Benapole land port to import from India if the local markets stabilise."
BKMEA president Fazlul Hoque said: "We are not telling the spinners to incur losses. Rather we have told them to fix the prices that is fair," he said urging the spinners not to be profiteers.
BKMEA second vice president M A Baset said: "We have urged the spinners to fix price as per their production cost, which we think is the reasonable price.'
Source: The Financial Express, Tuesday April 27 2010
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