At an extraordinary general meeting (EGM) of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), knitwear manufacturers and exporters called for keeping yarn prices unchanged for at least a month to help them negotiate prices with global buyers. As per Dhaka Tribune, they also called for a policy to ensure stable yarn prices. Shafiul Islam Mohiuddin, MP and former President, FBCCI was the chief guest at EGN while Selim Osman, President, BKMEA was the moderator.
The meeting was convened to discuss ways to come out from the present crisis caused by the pandemic, which pushed the prices of raw materials up and slashed demands of finished goods. Shamima Akhter, Managing Director, KAP Fashion said though they are getting a good response from buyers and work order flow is better, yarn prices go up abruptly forcing Bangladeshi exporters to lose their competitiveness in global market.
Fluctuating yarn prices prevents fixing a deal with buyers within the set prices, said Zakir Hossain Jewel, MD, Best Style Composite. BKMEA data reveals, prices of mostly consumed 30-carded yarn rose to $4.81, which was $2.78 last year. As of February 2021, the average price of yarn went up to $3.77 per kg from $2.94 a kg in 2020. Exporters called for holding a tripartite meeting among Bangladesh Textile Mills Association (BTMA), Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and BKMEA to put a leash on the price hike.
They also urged for keeping the yarn prices static for at least a month, as well as informing the buyers about the change 15 days beforehand, so that negotiations can be better dealt.