Bangladesh spinners recently asked garment exporters negotiating prices of apparel items with buyers to be aware of the rising prices of cotton in global markets. Bangladesh Textile Mills Association (BTMA) president Mohammad Ali Khokon said as cotton prices are now between $1.05 and $1.07 per pound, there is a need to renegotiate costs with domestic garment exporters.
Consensus on the price was reached on August 21 among leaders of the BTMA, Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA).
It was decided that the widely consumed 30 carded yarn will be sold at $4.20 per kg if the cotton prices ranged between $0.85 and $1 per pound in international markets.
The leaders in a meeting also reached agreement that if the price of cotton went over $1 per pound, the spinners would be able to bargain a price hike of yarn with the buyers, according to Bangla media reports.
Conversely, if the cotton price went below 85 cents per pound, the buyers would be able to work out a price reduction with the spinner.
Leaders of the BGMEA and BTTLMEA in August had demanded that the government ease conditions for importing yarn from India and other countries through land ports as its prices were going up in the domestic markets.