Dhaka looks globally for yarn after Indian export ban

DHAKA - Bangladesh’s spinners are trying to import cotton yarn and raw cotton from Africa, Austria, the US and Brazil after India recently imposed a ban on its export.

India is a major supplier of cotton yarn to Bangladesh, with intake of more than 3.5 million bales a year.

Imports from India have risen from the normal 10 percent to about 30 percent, from about 350,000 bales to 700,000 bales following a bad harvest in Uzbekistan.

The Indian export ban followed an increase in cotton price despite its good harvest, New Age newspaper said Sunday.

It had earlier quoted market leaders in saying that large-scale Indian imports were hurting the local yarn manufacturers and suppliers.

Bangladeshi spinners are exploring West Africa, Australia, the US and Brazil for the extra imports, said Prabir Kumar Saha, managing director of Rangdhanu Spinning Mills.

But the suppliers are charging 97-98 cents per pound against 84-86 cents a week back, said Saha.

The cotton crisis pushed up yarn prices by around 10 percent in a week, particularly for 30 count yarns that is widely consumed by the knitwear industry, said industry sources.

The Indian ban on exports, said Saha, would hurt the spinners.

Deepak Kumar Baral, managing director of DSM Commodities, said the Indian ban is significant due to its cheaper price.

The import from India rose to 700,000 bales last year from the usual three to four lakh bales, said industry sources.

Fazlul Huq, president of the Bangladesh Knitwear Manufacturers and Exporters Association said that the latest yarn price hike put the knitwear manufacturers in a tight corner.

Bangladesh Textile Mill Association acting president Manzurul Huq said that spinners would honour existing deals but for the new ones current prices would be relevant.