Despite having the ability to fulfil, local clothing exporters are finding it difficult to capitalize on growing work orders due to rising yarn prices, according to industry executives.
Retail sales increased dramatically in Europe and the United States with the reopening of stores and mass immunization. As a result, they noted, more work orders are arriving to Bangladesh.
Concerned about growing yarn prices in the domestic market, they stated that many garment manufacturers are even taking orders at a rate lower than their production expenses as a result of the price increase.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) held a meeting in Dhaka on Sunday. The meeting was informed that local mills are increasing yarn prices every day and providing proforma invoice (PI) with a short time-limit. Buyers do not increase apparel prices as they only look at FOB (freight on board), they said, adding that the rising yarn prices have hit the local RMG industry.
