The apparels export growth is now under threat on persistent yarn price hike in the local market, according to industry insiders.

“We beat China, Pakistan and India in terms of growth in exports of apparel items. But we might not maintain this growth trend if the prices of yarn in the local market go up further. We will just lose our competitiveness in the international market,” said BKMEA (Bangladesh Knitwear Manufacturers and Exporters Association) President Fazlul Hoque, urging the local yarn manufacturers to the item's price at tolerable level.

Yarn producers say they have no choice, blaming the rise in the prices of yarn on the cost of cotton, the raw material. They pointed to the fact that the cotton price increased to US$ 87cents per pound from $78 cents per pound in December and $60 cents a pound in September last year.

The '30 count' variety of yarn is now selling at a price ranging from US$ 2.90-$3.0 per kg compared with its rates at $2.75-$2.80 per kg last December.

The '20 count', which is popularly known as 'open-end yarn,' is now selling at $2.35-$2.40 per kg compared with its previous rates at $1.90-$2.0 per kg, knitwear producers said.

The industry people said 40-count variety of yarn is selling at $3.85-$3.90 per kg compared with its previous rates at $3.40-$3.45 per kg.

Yarn producers said the price of 30-count variety of yarn was sold at $ 2.40 per kg in January last year, which reached around $ 2.45 in July. It increased to $2.50 in August and the rate continued upwards in September, manufacturers said.

At present, in neighbouring India '30 count' variety of yarn is selling at $2.10 per pound, according to Ahmed Ali, vice president of BTMA (Bangladesh Textile Mills Association).

India has two advantages in yarn marketing. “India can produce a substantial quantity of cotton and that country has its own technology and machinery,” Ahmed Ali said.

He said the local yarn producers can now meet 80 percent of the demand, but in the case of woven it is only 35 percent.

Meanwhile, the Ministry of Textile and Jute yesterday in a meeting said the yarn prices in the local market increased due mainly to the monopoly a section of unscrupulous traders enjoy.

As per a survey by the textile ministry, low supply of yarn against the higher demand for the item, double taxation in cotton import at the customs and price hike of raw materials worldwide were also responsible for the price hike of the item in the local market.