Leaders of the country’s textile mills and apparel exporters on Saturday fixed the price ceiling of the mostly consumed 30 count yarn at US$4.2 per kg, reducing it slightly from the recent rate.
The decision came at a meeting held on Saturday night with leaders from Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and Bangladesh Textile Mills Association held in the city.
BGMEA President Faruque Hassan, BKMEA President Salim Osman and its first vice president Mohammad Hatem, and BTMA President Mohammad Ali Khokon, among others, were present at the meeting.
According to industry insiders, spinners quoted yarn price ranging between $ 4.25 and $4.40 per kg recently while BTMA advised its export-oriented yarn makers not to further increase the price, quoted in the latest proforma invoices (PI) on August 10.
The BTMA also suggested keeping the PI valid for at least 15 days instead of the existing seven days.
When Asked, BGMEA president told the FE that they have decided to fix the upper ceiling of per kg 30 count yarn at $4.20.
"Majority of the spinners are selling yarn at $4.20 to $4.25 per kg while some are selling it below that price,” BTMA President Mr Ali said.
If the global cotton index reaches a 100-point mark that currently ranges between 93 and 95 points, they will revise the yarn price upward, and reduce it if the index goes down below 85 points, he explained.
The price fixation came in line with the three trade bodies leaders’ agreement made on August 10 that the yarn price in the domestic market would not increase further for the time being.
