The New Nation - Internet Edition

Staff Reporter

The Government is contemplating imposing ban on export of Waste Cotton/ Comber Noil, which is causing loss of US$ 0.72 in each kilogram and draining huge foreign currency, sources said.

The Ministry of Commerce will sit with the concern stakeholders soon to take a decision on it as the Bangladesh Textile Mills Association (BTMA) is pressing the Government for the last couple of months to impose the ban.

Informed sources said Comber Noil/Waste Cotton is being used as a raw material of denim fabrics and home textile products. The country meets the demand of the Waste Cotton through import as local millers fails to do so. Import of each kilogram of virgin cotton costs US$1.76 while the waste cotton is being exported at US$ 0.94 per kg.

According to the Export Promotion Bureau (EPB), export of waste cotton is increasing in volume each year. Waste cotton worth US$0.77 million had been exported in fiscal year 2002-03, while it reached US$ 7.42 million in 2006-07.

EPB said at present the shortage of waste cotton in the country is nearly 75 per cent. If the export of the waste cotton continues at the same volume, it will create shortage of yarn creating obstacle in production and export of denim fabrics and home textile, the EPB opined in a letter to the Commerce Ministry.

Sources said the Commerce Ministry officials have recommended the higher authority to discourage export of waste cotton for the sake of home textile and denim export.

Meanwhile, during the July-January period of the current fiscal year the country has exported home textile worth US$ 176.20 million against last year's US$151.59 million. The export target of home textile in the current fiscal year is US$ 310 million.