Govt to request India to lift ban on cotton export; yarn price in domestic market to be brought to reasonable level by next week: Faruk Khan

Dhaka, Sept 28 (UNB) – High price of yarn affecting the garments sector will be brought down to a reasonable level within a week in consultation with stakeholders, assured the Commerce Minister Faruk Khan today.

Yarn price has sharply increased in the domestic market following rise in cotton price in the international market that put the country’s prime export industry textile under severe stress.

“We’ll call a meeting soon…I’ve already talked to BTMA president Abdul Hai Sarker in this regard. I hope we’ll be able to solve the problem within seven to ten days,” Khan said while talking to reporters at the Secretariat today after a meeting with the BKMEA leaders.

Faruk Khan said the government would request the Indian government to lift ban on cotton export to Bangladesh immediately. “I’ve already talked to Bangladesh Ambassador in New Delhi today about it.”

He said he is planning to go India within next few days where he would talk with relevant people about import of raw cotton.

Admitting price hike of yarn in the international market, Faruk Khan said they would check whether the price is hiked reasonably in the domestic market.

“We’re downloading last two months’ international yarn price status …How much the price can be increased logically, we’re looking into it,” he said.

Earlier, a three-member team of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) led by its president AKM Selim Osman met with Commerce Minister and expressed concern at exorbitant price hike of yarn badly affecting the textile sector.

Talking to UNB after the meeting Selim Osman said the government assured them of taking effective steps to reduce the price.

“We’re concerned over the matter…If it’s not tackled the number of unemployment will shoot up and export decline considerably,” he said.

Earlier, a 9-member coordination committee was formed comprising members from the BGMEA, BKMEA and BTMA to safeguard the interest of the three Associations while addressing the problems in the wake of the yarn price hike.

The coordination committee comprises three members each from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA).

The decision was taken at a joint meeting of the associations at BTMA office.

The meeting also decided that the BTMA will take necessary steps to contain the price of yarn to a rational and tolerant level. Coordination committee will take necessary measures to address the other issues.

The maximum used 30-count yarn price was hovering at $4.55 to $4.65 (30’s) till September 26, much to the sufferings of the garment producers. The yarn price last September was around $ 2.65.

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Signing of FTA with Malaysia, India in final stage: Commerce Minister

Dhaka, Sept 28 (UNB) – The signing of Free Trade Agreement (FTA) with Malaysia and India is now in final stage, Commerce Minister Faruk Khan said on Tuesday.

“Experts are now examining what benefit Bangladesh will get if the FTA is signed,” he told journalists at his Secretariat office.

Faruk Khan said the government would not sign any deal that might go against the country’s interest. “We’re considering all crucial aspects…it may take time,” he added.

If Bangladesh signs the FTA with Malaysia and India, it will be the first of its kind, as Bangladesh have no such agreement with any country yet.

END/UNB/