Warning signal for the spinning mills of Bangladesh

Spinners expressed their concerns and fears of closure of factories for the storage increase of unsold cotton yarn. Currently, the accumulated over 2.5 lakh tonnes of unsold cotton yarn achieved with a current market value of Tk 9000 cores, said Jahangir Alamin, president of Bangladesh Textile Mills Association (BTMA), in a press conference of the Association headquarters in Dhaka. He said local manufacturers imported expensive cotton eatly this year, but the price of both yarn and cotton fall from the month of May and June. Hence, the demand for local yarn also reduced, as the weavers want to import cheaper yarn from India and

China

, which buys a greater cost on the local market, he said. The average cost of imported cotton is $ 2.20 per pound, and the highest price of the white fiber came to $ 2.52 per pound in April. $ 1.3 per pound in the international market , but the high price reduced to $ 1. "The transition from the sub-sector lost 5,500 crores Tk prices fall over in the local market," he said. "We will not be able to receive such large losses. If the government goes ahead with the support of the policy, we will be forced to close plants." Now the country has 377 mills, 705 weaving mills and 231 dyeing finishing- printing mills. Several lakh people are dependent on the industry directly Tk 30 000 crore, Alamin said.

He added that the primary textile mills are not set up without bank financing, because it is a capital intensive industry. The boss of BTMA requires at least six months suspension of imports of cotton yarn from India to help the spinning subsector survive. She also urged the government to raise the cash incentive to 15 percent from the current 5 percent by 2015. "The Indian Government has revived recently 7.67 percent of the subsidies received for cotton and yarn exports. The grant can be implemented by April. As a result, will suffer more than the downside price again," said .

Also called the conversion of working capital during the loan and the loan should be set for interest free account block for two years as the threads and weaving is a liquidity crisis due to loss reserves. The spinners also urged the authorities to reduce the bank rate down to single digit, as the current interest rate is comparatively high, said Alamin. As a result we are losing competitiveness in the international market.