Bangladesh has a great potential in yarn sector.
Global demand for the textile yarn market was valued at USD 11.9 billion in 2019, is expected to reach USD 16.0 billion in 2026, and is expected to grow at a CAGR of 4.0% between 2020 and 2026.
Exports of yarn and textiles increased by 20.46 per cent year-on-year to 14 141.12 million between July and May, an indication that Bangladesh could be a major source of raw materials if higher production is facilitated.
Currently, local spinners are able to meet 85 percent of the demand for raw materials in the knitwear sector and 40 percent for the knitted sector. Bangladesh imports yarn from China and India to meet local demand.
The high production of yarn and cloth requires further investment in the primary textile sector of the local industry. About 8 billion has been invested in the primary textile sector.
The export of yarn, especially cotton yarn, has grown recently. “There is a lot of potential for export of yarn and cloth in some other countries of Bangladesh,” said MA Jabbar, managing director of DBL Group, a leading spinner and garment exporter.
According to Jabbar, apart from Sri Lanka, Indonesia and Turkey, emerging garment producing countries like Ethiopia, Myanmar and Cambodia could be good export destinations for Bangladeshi yarn and cloth producers.
There are 450 spinning mills and nearly 1,300 small and medium weaving mills in Bangladesh. If local spinners and weavers produce more yarn and fabrics, Bangladesh will have more export potential.
