Amid rising raw material prices in the international market and increasing transportation, weavers across Bangladesh are worried over a steep rise in yarn prices over the past three months.

As per a Business Standard report, many weaving mills across the country have cut down production to tide over escalating raw material costs. A further rise in yarn prices may force them to shut down completely, says Md Nannu Ali Khan, Secretary, Chawla Textile Industry Owners' Association. Almost 70 per cent of the country's weaving mills capacity now remains unused as yarn prices have increased over 50 per cent in three months. Besides, 90 per cent of the operational factories are running only one shift a day, he adds. Abnormal price rise is also pushing around eight lakh weavers in Sirajganj, Pabna, Tangail, and Kushtia away from their age-old profession. Many weaving mills have already stopped production due to mounting losses.

Production reduced or stopped completely

The main weaving centers across Bangladesh are Mabhabdee and Baburhat in Narsingdi, and Araihazar in Narayanganj. The Chawla area of Narsingdi houses 300 weaving mills employing 24,000 direct workers. Many have either reduced or shut down production due to a rise in yarn prices. Md Noyon Mia, Owner, Sanzita Textile is using only half of the factory's capacity that too only on the night shift. Around 90 per cent weaving mills in this area now remain closed during the day and operate at 60 per cent capacity during night.

Md Nannu Ali Khan, another industrialist of the area, has two factories with 100 power looms. One is completely out of operation now while the other is open at 50 per cent capacity. Local spinning mill owners have increased yarn prices at an unusual rate, complain weaving mill owners. This hike is much higher than the rate of cotton price hike in international market. However, spinning mill owners’ claim, yarn prices have increased due to a rise in cotton prices in the international market. To resolve the crisis, BTMA has formed a standing committee led by Khorshed Alam, Former Director.

Clothing factories set up in Keraniganj and areas by River Buriganga in Dhaka cater to nearly 70 per cent of garment demand across Bangladesh. These factories are in dire straits with at least 50 per cent traders in the area losing their capital. Some factories have completely shut down due to yarn prices.

Handloom workers hit hard as sales decline to half

Unemployment has forced some workers in spinning yarns to switch professions. This has caused a crisis amongst artisans. The closing of markets for a long time has made it impossible for weavers to sell saris worth lakhs of taka, says Fazlur Rahman Talukder, President, Sirajganj Handloom and Powerloom Owners' Association. Retailers says, they find it difficult to convince customer that yarn prices have increased. This is resulting in a decline in sales to less than half of normal.