Knitwear makers reiterated their demand for procedural simplification in import of yarn from India through Benapole land port in the face of rising prices of the item in the local market, while local spinners strongly discourage such import on the plea that the industry will be at stake.

BKMEA (Bangladesh Kniwear Manufacturers and Exporters Association) Secretary Sulav Chowdhury said, “The government should immediately take measures to ease the process of import of yarn through Benapole.”

The knitwear makers’ demand was conveyed to the government through two letters in the first half of the current monthone was sent to the commerce adviser and the other to the chairman of National Board of Revenue.

At present, any manufacturer hardly imports yarn thorugh Benapole land port due to tough procedural problems in customs, bond licences and transportation, although the government lifted ban on import of yarn using this landport two years ago.

According to BKMEA Director MA Baset, Bangladesh’s position as knitwear exporting country would be more advantageous in the international market on easing the procedures for importing yarn using Benapole Land port like Chittagong Port.

“Since the yarn prices are on the rise worldwide due to the scarcity of raw cotton, the government should bring the matter under consideration,” Baset said.

Meanwhile, opposing such import through Benapole, BTMA (Bangladesh Textile Mills Association) President Abdul Hai Sarker said such import should not be encouraged, as 90 percent of the demand for yarn is met by the local spinners.

He, however, is not opposed to the import of a special category of Indian yarn that Bangladesh cannot produce. “We produce quality yarn which is better than that of India and supply to the knit manufacturers with an afforadble price,” Sarker said.

There are allegations from industry insiders that imports of yarn by a section of knit manufacturers showing under-invoicing often encouage smuggling of the item into the country.

Exporters fear Bangladesh’s knitwear and readymade garments (RMG) industry may lose international competitiveness due to the persistent rise in prices of yarn in the local market.

The ’30 count’ variety of yarn is now selling at a price ranging from US$2.75 to $2.80 per kg, up from $2.40 and $2.45 at the beginning of the current year.

However, yarn producers say they have no choice, blaming the rise on the cost of raw materials.

For example, the cotton price increased to 78 US cents per pound from 60 US cents in September, according to industry insiders.

Yarn producers said the price of yarn was $2.40 per kg in January, which reached around $2.45 in July.

It increased to $2.50 in August and the rate continued upwards in September, they said.

In neighbouring India, yarn is now selling at $2.55 a kg, 25 cents lower than that in Bangladesh, according to Abu Jafar Nizami, managing director of Royal Denim.