Bangladesh Spinners at stake as demand drops

The capital-intensive spinning sub-sector is in a double whammy as sales of yarn dropped amid a price fall that stemmed from lower demand from weavers and knitters, industry people said.

Moreover, the spinners have already cut their production capacity to 30-40 percent as the stockpiling of unsold yarn is spiraling everyday at the factories, they said.

The spinners are counting loss as they are now forced to sell yarn at $3-$3.40 per kilogram, which was sold at $7 per kg during March and April, they added.