BKOA President Salim Sarwar expressed concern over the rising costs of production due to the depreciation of the taka against the US dollar and said 30 per cent of knitting factories afficiated with the organisation had already closed.

A statement by the association said a 40-per cent increase in the US dollar value over the past four years has led to soaring costs for imported raw materials like needles, sinkers and needle oil.

Added to that was rising labour costs, transportation expenses, factory rents and electricity prices. All these have led to significant losses for the knitting industry.

Therefore, all knitting and collar factories across the country will be indefinitely closed until a new production rate is implemented, domestic media outlets reported citing the statement.

To overcome the crisis, the association has proposed increase in prices of manufacturing per kg single jersey fabric from existing Tk 15-17 to Tk 20-22, per kg rib from Tk 18-20 to Tk 25-27 and per kg plain interlock from Tk 20-22 to Tk 30-32.

The proposed wage increase is directly linked to the 40-per cent increase in dollar value and not influenced by other factors like worker wages, electricity or rent, Sarwar said.

"A modest Tk5 increase per piece of product is deemed necessary to prevent factory closures," he was quoted as saying.

According to Bangladesh Knitting Owners Association, there are over 1,500 registered knitting factories and an additional 800 unregistered ones. In the past year and a half, Narayanganj's BSCIC Industrial Estate alone has witnessed the permanent closure of more than 10 knitting factories.

The association estimates that 85 per cent of BSCIC knitting units are operating at a loss.

Fibre2Fashion News Desk (DS)