Surging cotton price: RMG exporters urged to negotiate additional prices

Bangladesh Cotton Association (BCA) on Monday urged the garment manufacturers to negotiate additional prices on their products as hike of cotton prices .

Dhaka, Oct 25 :  Bangladesh Cotton Association (BCA) on Monday urged the garment manufacturers to negotiate additional prices on their products as cotton prices in the international market are on the rise.

Addressing a press conference at a city hotel, the BCA leaders said the cotton prices are unlikely to fall anytime soon as the market got overheated during the harvesting time.

Reading out a written statement, BCA president Muhammad Ayub claimed that cotton is an agricultural produce but it is massively used as an industrial raw material while its pricing is done based on New York Features.

The price of cotton started showing an uptrend on September 28, and it’s still showing the same trend,” he added.

The cotton price index hit all-time high in a decade as it is selling at $126-127 cents or $1.26 to $1.27 per pound after an on call fixation system.

The per pound cotton price was below one US dollar on September 1, 2021 which is now selling at $1.20 per pound in the global market, the BCA president said.

Though the harvesting is on in almost all cotton-producing countries, the price of cotton is increasing and the market analysts cannot assume when it will come down, the BCA president said.

Considering the situation, he urged the Bangladesh Garments and Textile Manufacturers to negotiate additional prices in line with the cotton rate as the global buyers are also concerned over the price hike of cotton.

Earlier, the spinners asked the RMG exporters to negotiate the prices of apparel items with buyers keeping the price in mind as it was showing an uptrend in the global market.

BCA leaders also said cotton import cost has also risen by $ 2/3 cents in Bangladesh due to the delay in unloading the cotton from ships at Chittgong port. C& F charges at the Chittagong port are also high, making cotton import costlier from Bangladesh.

They also urged the government to take steps to ensure early unloading of imported cotton at the Chittagong port and reduce C&F charges.

Outgoing BCA president Sultan Riyad Chowdhury, BTTLMEA Chairman M Shahadt Hossain, BKMEA executive vice president Hatem Ali also spoke at the press conference, reports UNB.