Many garment makers in Bangladesh are not honouring their primary contracts for buying yarn from local spinners as work orders from abroad have decreased amid volatility in the global economy.
Yarn prices have been increasing in the domestic market over the last two weeks as demand from garment exporters is rising amid a hike in work orders from international clothing retailers and brands thanks to easing inflation in the West.
The unsold yarn at the spinning mills of Bangladesh is piling up abnormally because of a fall in work orders by 30 per cent for apparel items from international clothing retailers and brands.