Bangladesh: New Crown Virus Causes Panic, Yarn Prices Soar

According to industry sources, the fear of new coronavirus has caused panic buying in the past month, and the price of domestic yarn in Bangladesh has risen sharply.

Monsol Ahmed, Secretary of Bangladesh Textile Mills Association, said that the price of 30 yarn is now between 2.95-3 dollars per kilogram, up 11% from a month ago. Ahmad said that the price of yarn has been on the rise since last October due to the increasing demand of garment manufacturers. He added that the outbreak of the virus is pushing up prices further.

However, the primary textile sector, including spinning and weaving, has not been affected because the supply chain is still intact. Ahmad said clothing manufacturers need not worry because local textile mills and spinning mills are ensuring the continuous supply of yarns and fabrics.

The price of yarn has increased by 15% in the past month under the influence of the new coronavirus, the Bangladesh clothing purchasing Association (BGBA) said. As the price of cotton has not risen, there is no reason why local market yarn prices will go up. If yarn prices go up further, buyers will not give our clothing products a higher price. Bangladesh will lose its competitiveness in the international market.

The Bangladesh garment manufacturers and Exporters Association (BGMEA) sought special financial assistance from the central bank last month to avoid any negative effects of coronavirus on the apparel supply chain. It is reported that 46% of BGMEA's raw materials come from China. Bangladesh clothing manufacturers in a letter to Bangladesh Bank said that due to the outbreak of the outbreak, the supply chain of fabrics and other raw materials has been seriously affected.

In the 2018-19 fiscal year, imports from China amounted to US $13 billion 630 million, of which 5 billion 20 million US dollars were textiles. In view of the fact that the apparel industry's dependence on China's raw materials and the epidemic may persist, this could have a fatal impact on the industry, because the supply chain will be paralyzed.