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WB advice on textile sector contradictory

Textile millers say

Star Business Report
Textile millers yesterday termed the World Bank's (WB) stance on the Bangladesh's textile and clothing sector contradictory, saying the WB did not consider the interest of textile mills before making any prescription.
They said as per a WB observation it is not possible to develop a sub-sector in the textile sector by neglecting another. But at the same time WB has recommended to the government to allow central bonded warehouse, Saarc cumulation and yarn import through land ports, much to the frustration of textile millers, they said.
The WB did not pay much attention to textile mills, the largpst sub sector of textile and clothing sector where 2.5 billion euroes has been invested, said MA Awal, chairman of Bangladesh Textile Mills Association (BTMA), while addressing a press conference in Dhaka.
"The WB has provided investment support for many countries. But, what's its role in developing the textile sector of Bangladesh?" questionedAwal.
Sri Lanka and Mauritius have lost their readymade garment export markets as the countries focused more on developing only one sub-sector of the textile and clothing sector, he said citing an example.
The WB five years ago forecast that the spinning sub sector would not develop in Bangladesh as the country has no capacity to produce cotton, said Syed Monzurul Huq, member of the BTMA executive committee. "But, since 2000 more than 3.5 million spindles were installed in the country," he said.
Now, there are around 5.2 million spindles in the spinning mills, industry sources said.
"Now, the time has come to evaluate the WB role in developing the apparel sector of Bangladesh,” the BTMAchiefsaid.
Meanwhile, protesting the BGMEA and BKEMA demand for allowing yarn import through land ports, the BTMA once again urged the government not to permit such import for the sake of local industry.
The government banned yarn import through land ports in March, 2001 to prevent unscrupulous businessmen from importing or smuggling yarn by taking advan-
tage of inadequate infrastructure facilities in the land pons, Awal said.
Textile millers can provide B0 to 85 percent yarn of the total requirement and according to Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA), the figure is 75 percent, he said. At present, yam is being imported through waterways.
“We see no difference between the land potts and the sea ports in case of importing yarn as the land ports are faced with multiple problems including inadequate infrastructure and handling facilities," he added.
Rejecting the allegations made by the Bangladesh Garment Manufacturers & Exporters । Association (BGMEA) and BKMEA of supplying low-quality yam and price hike of local yam, Awal said the allegations are not true. "How could they sustain growth by using our low-quality yam?" he raised a question.
"As we use the world's best cotton in our spinning mills, quality of our yarn is much better than that of many other countries and even India," hesaid.
He said the prices of per kg 20,
24. 26 and 30 carded yarns were USS 2.19. S 2.23, S 2.71 and S 2.3 respectively in September this year and prices were S 2.3, S 2.49, S 2.54 and S 2.51 respectively in November.
As 95 percent of the cotton used in local spinning mills as basic raw materials is imported and cotton cost constitutes 65 percent of the total production cost of yarn, the price went up in line with the cotton price hike in the international market, hesaid.
Rejecting the BKMEA's complaint about frequent failures to supply yam in peak season (March to October), Awal said they have thousand tonnes of yam on their factory premises.
He, however, hoped that the local spinners would soon be able to fulfil the total requirement of the knitwearsector.
BTMA Vice-chairmen Jahangir Alam, Mohammad Jamaluddin and Didar A Hussain, former chairman Mohammad Shajahan, former vice-chairman Abdul Hai Sarker, members of the executive committee Syed Monzurul Huq, Ibrahim Rahmatullah, Ashraf Hossain Bakaul and MA Zaher were also present at the press conference.