Emerging Knit sector got slapped for yarn price hike in BD

cottonBangladesh’s exports of knitwear have an impact on rising cotton prices. According to RMG Bangladesh, there are now 30 carded threads for $3,60 to $3,75 per lb, whereas two earlier, it was for $2,60 to $2,80 available. local spinners, merchants, millers and consumers import cotton, which supplies 50% of the 75 lakh bales annually, mainly from future markets Carriage charges contribute to local importers’ expenses, which also affect yarn prices.

The growth of Chinese imports, the world’s largest market, is a major cause of inflation. Moreover, as a result of high Chinese prices and lower demand in Pakistan, import targets have increased. In a US Agriculture Department (USDA) report, Bangladesh will reduce importations by five lakh bales in the cotton marketing year (August-July) 2020-21.

As the impact of Covid-19 becomes more clear, global forecasts for 2020-21 have decreased. In the last months, however, use has increased as global economic components have stabilized and is now only 3% below the February level. The projected end of stock by 2020-21 was 97.5 million bales higher than that of February, 19 percent with worldwide lower projections and relatively unimpeded production (15.4 million bales).