Readymade garment (RMG) exporters have expressed their worries over the rise in yarn prices, especially in local Bangladesh.
The strange surges in yarn prices in the local market has made it tough for local RMG manufacturers to receive increased orders, recently apparel makers said at a meeting held at the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) office in Dhaka.
Present at the meeting, leaders of the BGMEA, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Terry Towel & Linen Manufacturers & Exporters Association (BTTLMEA) also decided to hold talks with government officials, pursuing their support on buying yarn at realistic prices.
RMG exporters said the local spinning mills are increasing yarn prices every day and giving proforma invoices – an estimated invoice sent by a seller to a buyer in advance of a shipment or delivery of goods – with a small time limit, which makes it hard for them to open LCs.
At the meeting RMG leaders said, it takes around 15 days to approve orders for yarn from the homegrown market, so many garment manufactures are inept to take more orders regardless of having the ability.
At present, countless garment factories are taking work orders under breakeven point just to stay in business, as buyers do not rise RMG prices on par with the rising yarn costs.
This issue is harmfully affecting the competitiveness of Bangladesh’s RMG industry.
Faruque Hassan, President, BGMEA chaired the meeting, which was joined by BGMEA Vice President Shahidullah Azim; Vice President (Finance) Khandoker Rafiqul Islam; Directors Asif Ashraf, Md Mohiuddin Rubel, Abdullah Hil Rakib, Rajiv Chowdhury, former Director Ashikur Rahman Tuhin, First Vice President of BKMEA Mohammad Hatem, Director Fazlee Shamim Ehsan, and BTTLMEA Chairman M Shahadat Hossain.