On Wednesday, the Bangladesh Textile Mills Association (BTMA) instructed its export-oriented yarn producers not to raise the yarn pricing mentioned in the current proforma invoices (PI) on August 10.
In this respect, the major textile millers’ trade association released a statement signed by its president, Mohammad Ali Khokon. It also proposed that the PI be valid for at least 15 days rather than the current seven days.
A PI is a preliminary invoice made by a seller to a buyer prior to the shipping or delivery of goods.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and BTTLMEA meet to discuss yarn prices. They agreed that yarn prices would not be increased further for a time being. They would form a committee or arbitration cell shortly, comprising representatives from the textile, terry towel and linen and ready-made garment sectors to fix the upper ceiling price of yarn for the local market. BGMEA president demanded that the widely-used 30-carded yarn price should be reduced immediately in line with the international market to help retain competitiveness of local industry. He alleged that local yarn prices are higher than the international markets.
Cotton is the main feedstock of the local export-oriented garment industry. The country is largely dependent on cotton as 75 per cent apparel items are cotton-based.