Yarn prices in Bangladesh in the last two months have fallen at least 12 per cent. Prices, between June and July, for the widely consumed 30 carded yarn ranged between $3.40 and $3.50 a kilogram. But from November onwards the prices of the same yarn dropped to $3.05 a kg. If the trend continues, the yarn stock, the main raw material for finished apparel items, may pile up, putting the $8 billion primary textile industry under threat.
Easy availability of cheap Indian yarn and lower prices of raw cotton worldwide due to the US-China tariff war are to blame for the sliding yarn prices. The oversupply of Indian yarn has been worsening the situation.
Supply of yarn from both the domestic and Indian market is very high at present, so the prices have decreased between 10 cents and 15 cents per kg. The price difference between Indian and Bangladeshi yarn is 10 to 15 cents per kg. Yarn prices have dropped because of the fall in cotton price worldwide, said Momin Mondol, Managing Director of Mondol Group. The total demand for yarn is more than 21 lakh tonne per year.
