Terry towel exporters want concessional rates to import yarn

The Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA) has written to the National Board of Revenue (NBR) and two ministries seeking permission to import yarn at concessional tariffs for exporters without bond licences.

It wants the facility to solve the existing barrier to yarn import amid the growing crisis in the local market.

Exporters without any bond licence currently have to pay a 37% duty to import yarn.

BTTLMEA President M Shahadat Hossain Shohel told TBS, "We want to import this yarn at 1% duty, not a duty-free facility, which will balance the yarn market."

The letter has requested for the authorisation of the import of 6 to 20 count yarn used in the manufacture (those without a bond licence), the import of yarn at a discounted or reduced rate, imports by sea, land and rail, including other land ports outside Benapole port.

It was also demanded to allow partial shipment of yarn.

Entrepreneurs in the readymade garment and home textile sectors have been complaining about price hikes in the local market due to increasing demand for yarn. At a meeting last week on the issue, the Bangladesh Textile Mills Association assured that yarn prices would not go up for the time being.

But home textile mill owners say the yarn crisis has intensified since the announcement. At present, no yarn is available.

In the letter, BTTLMEA President also said, "We rely on local yarn to make home textile products including terry towels but local mills are not able to supply yarn as per our demand and lead time. Local yarn prices are 50-60% higher than in India, Pakistan and other countries.