Bangladesh textile industry is facing hardships

Bangladesh textile industry is in trouble as the price for cotton dropped sharply, thus, leaving the country with a lot of inventory of raw material bought at a higher price.

The problem for Bangladesh comes from the old-time central bank regulations, which bar textile companies from participating in current financial instruments, which could hedge commodity importers from price fluctuations.

For a country like Bangladesh which is the second largest garment exporter in the world, such old-fashioned regulations create a big hurdle, as a tussle between yarn producers and garment manufacturers is imminent. Bangladesh has some 400 spinning mills affiliated with the Bangladesh Textile Mills Association (BTMA).

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