Badrul Ahsan :
Terri towel industry of he country has got its lifeline after hike in export prices of ‘Jhut’.
The government has recently hiked export prices of ‘Jhut’ in a move that will offer lifeline for scores of terry towel makers, while boosting supplies for spinning mills.
Garment ‘Jhut’ becomes a major raw material for terry towel industry and a section of textile mills after being processed.
In the mid of the current calendar year (2015), export prices of a tonne of coloured ‘Jhut’ was re-fixed at US$ 235 from its existing rate of $140.
The rate of white ‘Jhut’ has also been fixed at $ 600 per tonne.
Earlier, exporters used to export all types of ‘Jhut’ at $140 without mentioning its colour, for which the government decided to fix a separate rate of the both coloured and white ‘Jhut’.
But a large portion of ‘Jhut’ has long been exported to India and China, creating shortage of such materials in the country,” Vice-Chairman of the Export Promotion Bureau (EPB) Suvashis Bose told the New Nation Tuesday.
Considering the need for ensuring available raw-materials of local industry at a reasonable price, the government has decided to re-fix its prices, he added.
Suvashis Bose said, many hi-tech factories have been set-up in India and China to re-process garment ‘Jhut’. These factory owners import their raw-materials mainly from Bangladesh.
Anwarullah Khan, Director of Pritili Textile Mill, a terry towel mill owner, hailing the government’s decision said, “The new rate will act as a lifeline for factories with lower capital base.”
“Small and medium factories were losing their competitiveness in the international market for high prices of yarn. The new decision will become a boon for them and they will be able to boost export again,” he said.
In the meantime, Anwarullah Khan said that as many as 16 export-oriented medium scale terry towel factories were shut down mainly for want of raw materials and its higher prices. “This decision will surely help these exporters to re-start their operations again.”
However, EPB data showed export of ‘Jhut’ was $20.03 million in the fiscal year 2010-11, $25.34 in FY 2011-12, $29.33 in FY 2012-13 and $ 31.05 in FY 2013-14 and $41.81 in the last fiscal.
On the other hand, export of terry towel has drastically fallen by more than 60 per cent in the last five financial years. The EPB data showed that the country exported terry towel worth $67.16 million in 2014-15, which was $ 157.07 in 2009-10 fiscal.
However, export of terry towel in the first quarter of the current FY achieved nearly13 per cent growth due to the decission.
However, no exporter of ‘Jhut’ could be contacted for their comments.
Terry towel manufacturing companies have started growing in the country since 1980s. Bangladesh’s terry towel products mainly go to the US, Canada and European markets.
Bangladesh produces different types of terry towels such as face, hand, terry kitchen, stripped bath, assorted coloured bath, dyed terry bath, golf and bath robe for export.
At present around 97 companies have been operating in the country in producing and exporting of terry towel across the globe.
Terri towel industry of he country has got its lifeline after hike in export prices of ‘Jhut’.
The government has recently hiked export prices of ‘Jhut’ in a move that will offer lifeline for scores of terry towel makers, while boosting supplies for spinning mills.
Garment ‘Jhut’ becomes a major raw material for terry towel industry and a section of textile mills after being processed.
In the mid of the current calendar year (2015), export prices of a tonne of coloured ‘Jhut’ was re-fixed at US$ 235 from its existing rate of $140.
The rate of white ‘Jhut’ has also been fixed at $ 600 per tonne.
Earlier, exporters used to export all types of ‘Jhut’ at $140 without mentioning its colour, for which the government decided to fix a separate rate of the both coloured and white ‘Jhut’.
But a large portion of ‘Jhut’ has long been exported to India and China, creating shortage of such materials in the country,” Vice-Chairman of the Export Promotion Bureau (EPB) Suvashis Bose told the New Nation Tuesday.
Considering the need for ensuring available raw-materials of local industry at a reasonable price, the government has decided to re-fix its prices, he added.
Suvashis Bose said, many hi-tech factories have been set-up in India and China to re-process garment ‘Jhut’. These factory owners import their raw-materials mainly from Bangladesh.
Anwarullah Khan, Director of Pritili Textile Mill, a terry towel mill owner, hailing the government’s decision said, “The new rate will act as a lifeline for factories with lower capital base.”
“Small and medium factories were losing their competitiveness in the international market for high prices of yarn. The new decision will become a boon for them and they will be able to boost export again,” he said.
In the meantime, Anwarullah Khan said that as many as 16 export-oriented medium scale terry towel factories were shut down mainly for want of raw materials and its higher prices. “This decision will surely help these exporters to re-start their operations again.”
However, EPB data showed export of ‘Jhut’ was $20.03 million in the fiscal year 2010-11, $25.34 in FY 2011-12, $29.33 in FY 2012-13 and $ 31.05 in FY 2013-14 and $41.81 in the last fiscal.
On the other hand, export of terry towel has drastically fallen by more than 60 per cent in the last five financial years. The EPB data showed that the country exported terry towel worth $67.16 million in 2014-15, which was $ 157.07 in 2009-10 fiscal.
However, export of terry towel in the first quarter of the current FY achieved nearly13 per cent growth due to the decission.
However, no exporter of ‘Jhut’ could be contacted for their comments.
Terry towel manufacturing companies have started growing in the country since 1980s. Bangladesh’s terry towel products mainly go to the US, Canada and European markets.
Bangladesh produces different types of terry towels such as face, hand, terry kitchen, stripped bath, assorted coloured bath, dyed terry bath, golf and bath robe for export.
At present around 97 companies have been operating in the country in producing and exporting of terry towel across the globe.
