The drop in cotton prices across the globe has come as a serious blow to the terry towel industry in Bangladesh. The main cause of low cotton prices is the fallout from China’s support program for its growers. More than 16 big terry towel factories of the country have been closed in recent times while export earnings declined sharply in the last five years as Pakistan and India are getting major orders from foreign buyers.

Bangladesh’s factories purchase yarn from local spinning mills. The cost of yarn sourcing for a Bangladeshi factory hasn’t been reduced to a rate compared to that of Pakistan or India. Many companies have stopped operation because of lower orders. At least 16 out of 97 companies have stopped operation in the last one and a half years. Towel export witnessed a major setback among home textile items. Shipments of other home textile items have also fallen but not to the extent terry towels have.

Bangladesh’s terry towel products mainly go to the US, Canada and Europe. The country produces different types of terry towels such as face, hand, terry kitchen, stripped bath, assorted colored bath, dyed terry bath, golf and bath robes for export.