Photo : Messenger
Following a yearlong downtrend in importing yarn, the import of this major raw material for ready-made clothes has increased by 5.3 percent during the last seven months of the current fiscal year, while the export of ready-made garments increased by 3.45 percent during the same period.
According to data from the Bangladesh Bank, in July-December of the 2024 fiscal year, Bangladesh imported $1.52 billion worth of yarn, compared to $1.45 billion during the same period last year. Simultaneously, Bangladesh fetched $28.36 billion and set a record in January by exporting $4.97 billion worth of readymade clothes.
Monsoor Ahmed, Secretary-General of the Bangladesh Textile Mills Association (BTMA), told the Daily Messenger, “Yes, for the last two months, garment workflow has increased. We have also increased cotton imports. I believe this market will rebound soon.”
Additionally, the price of local yarn has fallen from $5.15 to $4.50, so manufacturers are also buying yarn from domestic markets, he said.
Mohiuddin Rubel, a director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told the Daily Messenger, “The overall growth in RMG exports is not up to the mark, but it's not bad either. However, the recent trend in trade reflects a depressing scenario for the retail business and the economy, which might continue throughout this year.”
He added, “For Bangladesh, the positive side is that we are gradually diversifying our products and moving towards sophisticated items, which is reflected in the growth. After 3 months, the growth has increased, and this is the first time in a single month that our RMG exports have reached nearly $5 billion.”
In July, imports declined by 1.20 percent; in July-March, it declined by 25 percent, and in July-September, it fell by 35 percent year-on-year.
Though yarn manufacturers gained profits of about 100 percent just a couple of months earlier, hiking the price in the local market abnormally, they are now suffering.
Responding to a query, Fazlul Haque, Vice President of BTMA, said, “When work orders were available in the country, yarn manufacturers invested in expansion, and they will do so in the coming days.”
“Once, we had to incur huge losses due to the lockdown. Now, with work orders increasing in the RMG sector, we want to recover our previous losses,” he added.
In July 2022, the price of poly-cotton from India (recycled) was $3.15 per kg, while in the local market it was $4.50. In August, it was $3.00 per kg, but in the local market, it was $4.45, according to RMG manufacturers, so they are importing yarn from abroad.
Messenger/Sajib
