To address the issue of unsold stockpiling and conserve foreign currency, leaders of Bangladesh’s primary textile millers have appealed to readymade garment exporters to procure yarn from the local market.
The call was made by opening back-to-back letter of credit (L/C) arrangements. The millers have urged the government to continue providing support through the Export Development Fund (EDF).
The Bangladesh Textile Mills Association (BTMA) president, Mohammad Ali Khokon, highlighted these demands during a press conference held at the BTMA office in the city.
Khokon raised concerns about the irregular distribution of loans from the EDF, emphasizing the need for consistency. He pointed out that the textile millers’ limit within the fund has been reduced from US$30 million to US$20 million, urging the government to reconsider this decision.
Khokon also highlighted the significant impact of rising gas tariffs on the textile industry, stating that mills now face an additional annual expenditure of Tk 360 million for gas.
Despite this, uninterrupted gas supply remains elusive for the mills. He described the current gas supply situation as dire, noting that the increased gas prices have led to a rise in yarn production costs by Tk 35 to 40 per kilogram.
In light of this, he called for an uninterrupted gas supply to mitigate the challenges faced by the industry.
With these demands, the leaders of the textile millers hope to alleviate the burden of stockpiling and safeguard foreign currency reserves.
By emphasizing the importance of local yarn sourcing and the need for continued government support, they aim to strengthen the backward linkage industry and secure the future of Bangladesh’s textile sector.