Bangladesh Textile Mills Association (BTMA) has introduced price ceilings for locally produced yarn following concerns among readymade garment (RMG) exporters that domestic spinning mills may raise prices after the withdrawal of bonded-warehouse facilities for importing certain yarn categories.
In its first such move, BTMA has fixed the price of 30-count single carded cotton yarn at $3.25–$3.45 per kilogram, depending on payment terms.
According to a circular issued on 1st November, the price has been set at $3.25–$3.40 per kg for at sight letters of credit (LCs) and $3.30–$3.45 per kg for 90-day deferred LCs. The circular, signed by BTMA Secretary General Brigadier General (retd) Md Zakir Hossain, took immediate effect and will remain in force until further notice.
BTMA officials said the initiative aims to prevent excessive pricing by local spinning mills. The association also warned that it would take action if exporters lodged complaints over violations of the prescribed limits.
Prices for other yarn counts will be determined proportionately based on the 30-count benchmark, considering production costs, raw material consumption and yarn quality.
Specialised and certified yarns, including organic, Physical BCI, regenerative, GOTS, CmiA, GRS, RCS and OCS varieties, will be priced separately based on certification requirements, production processes, additional raw material costs and buyer specifications.
The decision was taken at BTMA’s board meeting in October. Officials said yarn imports could still enter duty-free against bank guarantees despite the withdrawal of the bonded-warehouse facility.
