The country's fast-growing knit apparel industry appears to run into trouble for short supply of local yarn.

A clear indication in this regard has come from Bangladesh Knitwear manufacturers and Exporters Association (BKMEA), The Bangladesh Observer reported on Thursday.

According to the daily, import-dependent woven garment manufacturers and exporters feel that their exports are facing stiff competition on the international market mainly because of an extended lead-time they require due to import of woven fabrics.

"Local spinners could supply yarn within 7-10 days of order, but now it takes 25-45 days," BKMEA President Fazlul Hoque was quoted as saying.

"The difference between the demand and supply is increasing day by day," he said, explaining that the yarn production capacity could not keep pace with the growth of the knit apparel sector.

He cautioned that the yarn short supply would take a serious turn in future as the sector sees a faster growth of 31 percent compared to the growth of production capacity.

"Banks are confused over the feared consequences after the post- MFA (Multi-fiber Agreement) regime as investors shying away in the spinning sector and causing a gap in demand-supply," he said.

"It's not possible to overcome the gap overnight," he said, demanding withdrawal of the ban on yarn import through land port that the government imposed in March 2001 on the plea that it prompts smuggling through false declarations.

Hoqqe also defended his demand saying that local yarn price remained much higher than the imported one and there was lack of ships to import yarn through sea.

According to the industry insiders, the ban on yarn import through land port contributed to a lot of the growth of the spinning mills in the country as well as reopening many sick spinning mills.

Source: Xinhua