The Bangladesh Textile Mills Association (BTMA) advised its export-oriented yarn makers on Wednesday not to increase further the yarn prices, quoted in the latest proforma invoices (PI) on August 10.
The trade-body of primary textile millers issued a notice, signed by its president Mohammad Ali Khokon, in this regard. It also suggested keeping the PI valid for at least 15 days instead of the existing seven days.
PI is an estimated invoice, sent by a seller to a buyer in advance of a shipment or delivery of goods.
The BTMA suggestions came a day after the apparel exporters and textile millers, in a meeting on Tuesday night, softened their stances regarding the dispute over yarn prices, and agreed to resolve the issue jointly.
In the meeting, they agreed that yarn prices would not be increased further for a time being.
Besides, they would form a committee or arbitration cell shortly, comprising representatives from the textile, terry towel and linen and ready-made garment sectors to fix the upper ceiling price of yarn for the local market.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President A K M Salim Osman, Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA) Chairman Shahadat Hossain Sohel attended the meeting, while BTMA President Mohammad Ali Khokon and its former president Tapan Chowdhury joined virtually, among others.
Industry insiders said the emergency meeting was convened after the BGMEA, BKMEA and BTTLMEA leaders expressed their concern on Sunday over the rising trend of yarn prices in the local market for last couple of months.
The BGMEA latter postponed its press conference, scheduled on Wednesday, while the BTMA also cancelled its informal discussion with a group of journalists, scheduled on Monday.
Despite having capacity to deliver, local apparel exporters are facing difficulty in grabbing the opportunity of increased work orders because of the rise in yarn prices, apparel makers alleged.
"The BTMA has initiated the move to resolve the yarn price issue, following the concern expressed by different groups that created confusion, for the greater interest of the mills," Mr Khokon said in the notice.
Citing the meeting with leaders of the BGMEA, BKMEA and BTTLMEA on Tuesday, he said in the meeting they assured that the BTMA millers would supply yarn following the last prices, quoted in the PI on Tuesday (August 10).
The PI would be valid for at least 15 days instead of the existing seven days as per the assurance.
He also requested the yarn makers to follow the suggestions for their interest.
When asked, the BTTLMEA chairman said, "A committee will be formed within a couple of days with representatives from the textile and clothing sector trade-bodies concerned. They will collectively fix prices in line with the rate of New York, and considering other costs including utilities."
The committee of 10 to 15 members would be formed with leaders and representatives from the BGMEA, BKMEA, BTTLMEA and BTMA, he noted.
The BGMEA president in the meeting demanded that the widely-used 30-carded yarn price should be reduced immediately in line with the international market to help retain competitiveness of local industry.
Mr Sohel alleged that local yarn prices are higher than the international market.
The price of 20-carded yarn was US$ 4.30 per kg in local market on Tuesday, which was $3.20 in Pakistan, and $3.40 in India, he added.
Disagreeing with the allegation, the textile millers, however, claimed that yarn prices gone up in the local market following the hike in cotton price.
Cotton is the main feedstock of the local export-oriented garment industry. The country is largely dependent on cotton, as 75 per cent apparel items are cotton-based.
