Cotton yarn prices have increased in the local market as compared to Indian market by 20-22 per cent , posing threat to a projected growth of knitwear exports.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said that in India the common yarn is at lower rates than thelocal market, (30/1) was selling at 2.95 per Kg in the local market, which is 40-45 cents higher than the price in India, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said yesterday.
As the knitwear sector earned US$ 4.5 billion in 2006-07and yarn is the main raw material for knitwear manufacturing that shares around 60 percent of export value. 75-80 percent of the demand is cater by local spinners.
president Mohammed Fazlul Huq of BKMEA said "It's an unbelievable rise… it'll be very difficult for us to maintain the sector's growth due to the increase in yarn prices,"at a press conference at its office.
The early months of the current fiscal year, the knitwear exports earned US$ 2 billion from July-November, which is more than one-third of the fiscal year's total target of worth US$ 5.5 billion for the sector. "We hope, the growth in December-January will be even better and by the end of the fiscal, we're confident the earnings will cross at least the US$ 5 billion benchmark, if not achieve the high target," Huq said.Further he said that yearly target will also be achieved unless any unforeseen calamity comes though it is also under price presure under international market.