Yarn imports: Apparel makers seek to utilise every land port

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has contacted the commerce ministry seeking permission to import yarn through every land port in the country, to ensure a smooth flow of the RMG industry's key raw material.

BGMEA's President Faruque Hassan – in a letter to Commerce Minister Tipu Munshi on Saturday – highlighted the crisis in RMG industry triggered by the rising yarn prices especially in the local market, and sought permission for partial imports under the same letter of credit (LC).

Presently, the apparel makers can import yarn through one land port – Benapole. Besides, they can only utilise the Chattogram port for partial imports of yarn under the same LC.

Importing through the Chattogram port takes too much time. So, many RMG owners import yarn through Benapole land port to meet shorter lead times, but existing regulations prohibit partial imports there.

Though these regulations have existed for years, the issue came under spotlight after the price of yarn skyrocketed in the domestic market. Apparel makers complained that the local textile mills are taking advantage of such shortcomings by hiking yarn prices to unreasonable levels. 

However, the textile mill owners have been claiming that the yarn prices have increased due to a rise in cotton prices in the international market.

In the letter, the BGMEA sought permission from the government to import yarn through Bhomra and Sonamasjid land ports. They also demanded overall infrastructure development of these ports, and an increase in their warehouse capabilities and manpower.

The association also expressed concerns over a possible disruption to the flow of raw material from China to Bangladesh, as the country has restricted operations in the some of its ports. This is another reason the BGMEA wants to import yarn through all land ports.

Speaking to The Business Standard, BGMEA's President Faruque Hassan said, "If the authorities concerned heed our proposal and implement the measures we have suggested, the pressure on a single land port will decrease.

"This in turn will boost the speed of imports, and save time and costs."