Low gas pressure, declining local yarn prices and record increase in fuel prices have made life difficult for the local spinning mills in Bangladesh.
This is as per media reports, which cited the concerned industry players in this direction.
According to reports, local yarn prices have experienced around 20 per cent decline over the last three months — yarn now costs US $ 4 per kg, down from US $ 5.2 per kg in May — add to which the recent fuel price hike carried out by the Government apart from the decrease in gas pressure, which has been bothering the mill owners for some time now.
Speaking to the media, Chairman of Little Star Spinning Mills Limited and former Director of Bangladesh Textile Mills Association (BTMA) Khorshed Alam opined, “We will suffer losses if we are not provided with required gas pressure,” even as Executive President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem, on his part, said, “It is true yarn prices fell by US $1 per kg in the last three months, which put spinners in a fix.”
Mohammad Hatem, who is also the owner of Narayanganj-based MB Knit Fashions Ltd., further, reportedly, claimed as yarn prices are falling, foreign brands and retailers were placing work orders lower than they actually negotiated.
If the current scenario exists, entrepreneurs will find it tough to repay bank loans in time, reportedly, claimed industry people interacting with the media while adding the new entrants in particular are now a very worried lot consequent of onset of one trouble after another.