Following continued rise in yarn price in Bangladesh local market for last one month, industry leaders BGMEA, BKMEA and BTMA have set the maximum price of mostly consumed 30 count yarn price at $4.20 a kg and 30s cotton combed yarn at $4.50 a kg. As per a New Age report, the decision was taken on the insistence of country’s readymade garment exporters who had been requesting the government for last few weeks to make the yarn import open through all land ports, alleging price of the item increased 50-60 per cent in the local market compared to international market.

Mohammad Ali Khokon, President, BTMA alleged the unusual price hike of yarn in the local market eroded their competitive edge on the global export market. He said the current global cotton index ranged between 93 points and 95 points and if the index exceeds 100 points, an upward revision of yarn price will take place in the local market and if the index goes down below 85 points, the price will be reduced, he said.

If yarn price in the local market becomes costlier than the international market, the RMG exporters would have to go for import to remain competitive, he added. Setting the price ceiling of yarn has eased the situation and apparel exporters are relieved from an uncertainty in calculating product prices for export, said Faruque Hassan, President, BGMEA