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Impose duty on Indian yarn: Bangladeshi textile millers urge govt

The Ronin

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Primary textile millers in Bangladesh have called upon the government to impose anti-dumping duty on Indian yarn imports to protect the $8 billion domestic textile industry.

The call comes soon after Indian clothing manufacturers recently suggested their government impose more duty on Bangladeshi clothing items.

Bangladesh Textile Mills Association (BTMA) sent a letter addressed to Finance Minister AHM Mustafa Kamal, Commerce Minister Tipu Munshi and Textiles and Jute Minister Golam Dastagir Gazi for taking necessary measures to stem the entry of cheap Indian yarn to the country.

In the letter, the BTMA also demanded cash incentives be increased to 10 percent from the existing 4 percent.

It also asked the authorities to scrutinise import prices of yarn at land ports along the Bangladesh-India border.

Local garment manufacturers are importing low-price yarn from India to make apparel items for export.

Local millers sell the widely consumed 30 carded yarn at a price between $2.80 and $2.90 per kilogramme, while the same quality Indian yarn is sold between $2.60 and $2.70 per kg in Bangladesh, according to BTMA.

The Indian yarn is highly subsidised as their government provides incentives in cotton purchase and production of yarn at the mill level, said BTMA Secretary Monsoor Ahmed.

The Indian yarn is cheaper also because of stockpiling of unsold yarn in the inventories of hundreds of mills in India amid the global pandemic.

"In Bangladesh also, yarn worth $1.4 billion has remained unsold at the factory level over the last two months," Monsoor told The Daily Star.

Bangladesh's annually produces yarn worth $12 billion and the local millers supply 85 percent raw materials to the knitwear sector and 35 percent to the woven sector.

In the letter, BTMA President Mohammad Ali Khokon said Bangladesh exported $566 million worth of garment items to India in the fiscal years 2017-18 and 2018-19, but imported $7.74 billion worth of textile related items including raw cotton, cotton yarn, cotton fabrics and textiles during the same period this year.

So, the Indian clothing manufacturers need not to be worried as they have already urged their textile minister to impose additional duty on import of apparels from Bangladesh.

Rakesh Biyani, president of the Clothing Manufacturers Association of India (CMAI), in a letter to Indian Textile Minister Smriti Zubin Irani on May 22 said the domestic clothing industry in India is under threat because of duty free import from different countries including Bangladesh.

Bangladesh has been enjoying duty free trade benefit to Indian markets from 2011 under the South Asian Free Trade Area (SAFTA).

BTMA President Khokon said Bangladesh had exported garment items worth $35 billion in the 2018-19 fiscal.

Of the exported garment items, products worth $22 billion were manufactured from locally-sourced raw materials, resulting in a high retention value at $15 billion

On the other hand, the retention value from items manufactured from imported raw materials was only $3.25 billion, Khokon said in the letter.

The retention value on local raw materials is higher because of shorter lead time and for use of local manpower and transportation, he added.

https://www.thedailystar.net/busine...bangladeshi-textile-millers-urge-govt-1906819
 

Black_cats

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Bangladesh millers seek anti-dumping duty on India, Pakistan yarns
Moinul Haque | Published: 21:38, May 30,2020 | Updated: 23:43, May 30,2020


A file photo shows spools of yarn at a garment machinery fair in Dhaka. The Bangladesh Textile Mills Association on Saturday urged the government to impose anti-dumping duty on Indian and Pakistani yarns to protect local manufacturers from cheap imports of the item from the neighbouring countries. — New Age photo

The Bangladesh Textile Mills Association on Saturday urged the government to impose anti-dumping duty on Indian and Pakistani yarns to protect local manufacturers from cheap imports of the item from the neighbouring countries.

The association made the proposal to the government one week after Indian apparel manufacturers had proposed to impose duty on import of readymade garment items from Bangladesh to protect their domestic industry.

BTMA president Mohammad Ali Khokon in a letter to finance minister AHM Mustafa Kamal, said that Bangladesh’s competitor countries like India and Pakistan had taken different undue initiatives, including exporting yarns, fabrics and other textile raw materials at dumping prices, to retain their market shares on the global market during the coronavirus pandemic.

Clothing Manufacturers Association of India president Rakesh Biyani on May 22 said in a letter to India’s textile minister Smriti Zubin Irani that their domestic industry was under threat because of duty-free imports from different countries, including Bangladesh.

BTMA, however, termed the proposals placed by the Indian apparel makers unacceptable, saying that the volume of Bangladesh’s import of textile products from India was 1,300 times higher than the volume of Bangladesh’s RMG export to the country.

India sits on a stockpile of yarns as export remained almost halted due to the coronavirus pandemic and now the country has started to export the item to Bangladesh at dumping prices in an attempt to reduce the size of that inventory, the letter said.

Considering the international prices of cotton and the cost of other components for production, the BTMA president claimed that India was exporting its 40-count combed yarn at rates lower than the production cost.

He said that the Bangladeshi manufacturers had been faced with undue competition due to the below-cost import of yarn from India.

Against the aggressive promotional policy adopted by the competitors, the country would have to adopt a sustainable policy, including imposition of anti-dumping duty on yarn import and increasing cash incentive on free on board prices to 10 per cent from the existing 4 per cent, to protect its spinning and weaving mills, the BTMA said.

The trade body said that Bangladesh’s primary textile sector with investments worth $8 billion was working as a dynamic backward linkage industry and supplying 80 per cent of knit and 35 per cent of woven fabrics to the export-oriented readymade garment sector.

Due to the use of local inputs, the value of RMG export had increased to $35 billion from $26 billion in the last five years but it was apprehended that RMG and textile exports would decline by 40 per cent in the European Union, the largest export market for Bangladesh, due to the coronavirus pandemic, the BTMEA letter read.

Under the circumstances, imposition of anti-dumping duty on the import of yarn from neighboring countries and provision of 10 per cent cash incentive on FoB prices would help the spinning and weaving mills to combat the risks posed by low-cost imports amid the COVID 19, the trade body said.

https://www.newagebd.net/article/10...eek-anti-dumping-duty-on-india-pakistan-yarns
 

Bilal9

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Joi Bangla!

Can I get free like:p:
Dilam tomakey like! :lol:

But great to see that Bangladesh industry leaders can finally turn the screws on the Indian Banyas.

These Sanghi gadhas need to be shown that their actions can have repercussions.

Besides they ARE dumping product below the cost of production.

Bunch of morons.
 

fallstuff

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Bad idea. These are raw materials where value are added to sell it at multiple of cost. Let India do what ever it wants with its imports.
 

Bilal9

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I Thought Bangladesh Only Had RMG Industry While all Yarns And Fabrics Were Imported
Other than growing cotton (some cotton is indeed grown in Northern Bangladesh) most backward linkages for textile is local. Unlike Vietnam for example, we have been in textile industry for eons. Weaving industry in Bangladesh has existed locally for at least a thousand years (known), probably much longer.

Whereas most spinning weaving and dyeing industries in India use older technology machines of 1940's (and older) vintage, ours are far newer and more efficient. I have personally observed these state-of-the-art machines in many textile spinning/weaving plants.

Spinning/carding plants use Trutzschler machines from Switzerland whereas water-jet and air-jet weaving looms are by Top grade makers like Toyoda. This has existed ince the mid-nineties...today many machines are also using robotics for these processes.
 

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