The Indian customs authority is not allowing cotton-laden trucks to enter into Bangladesh territory, since their government imposed ban on cotton export on Monday, local knit manufacturers alleged on Wednesday. In a statement, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) president AKM Salim Osman said the cotton-laden trucks have legal documents as per earlier obtained L/Cs (Letters of Credit) by local importers. “Our importers have become disheartened due to the restriction… L/Cs (Letters of Credit) had been properly opened before the announcement of ban by the Indian government,” said Osman said in the statement.
The BKMEA president said Bangladesh’s knitwear manufacturers usually import 40 percent of total required cotton from India. He said Bangladesh’s knitwear exports will be affected seriously because of India’s sudden ban on cotton exports. He said import of cotton from India has become uncertain as well as it has created volatility in prices of local cotton. He said local spinning mills already hiked the price of cotton abnormally. “Such volatility in prices is not expected,” Osman said and urged the government to intervene immediately to help sustain the knit garment sector. He also demanded that the ministry of commerce formulate a special monitoring committee to overcome the ‘cotton crisis’ comprising representatives from jute and textile ministry, BKMEA, BGMEA and BTMA.
“The responsibilities of the committee will be to fix a justified price of cotton which will be effective for at least 3 months,” he said.