Cotton demand exceeds supply in Bangladesh
The textile industry in Bangladesh is currently in a difficult situation due to the fact that faced with a significant difference between the demand and supply of yarn and fabric.
Population growth and increasing prosperity has driven up demand for the products, which, in turn, requires increasing production capacities in spinning, textile, knitwear sectors and sub-sectors such as dyeing, printing and finishing. Providing quality products at lower prices requires the introduction of new technologies.
Most of the cotton Bangladesh imports from foreign countries, while countries such as India and Pakistan subsidizes production in the domestic market. Because of import tariffs and the cost of transportation of raw cotton Bangladesh forced to pay more for the same raw materials.
Local spinning mills have to purchase raw cotton of the same quality but at a price 30% higher than the factories of India and Pakistan. Spinning mills of Bangladesh paid an additional 6-7% for the loading and transportation of cargo. Experts believe that to stimulate the production of growth the country needs a repeal of the tax on the import of raw cotton, dyes and chemicals.
Informs fibre2fashion.
