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 Taanbazar,
situated by the bank of the river Shitalakhya,
in Narayanganj town, is the only wholesale
market of cotton-based yarn in Bangladesh.
Historically this is an area renowned for local
spinning and fabric, particularly the famous
muslin.
During the last leg of British rule, fabrics and
yarn produced in Narayanganj was so reputed and
its fame reached such a level that people
started calling Narayanganj the 'Manchester of
Asia'. Raja Suryokumar Bose established the
first cotton mill (Lakshmi Narayan cotton mill)
in the area in 1927. Babu Romesh Chandra Rai
then followed Bose and set up another cotton
mill (Chittaranjan cotton mill) in 1942. Three
cotton mills had started their operation before
1947. Regrettably, such pride is only in the
history of glorious past.
Though not in an illuminating manner, the
descendants of the successful ancestors are
still trying to keep their traditional business
alive. Although they are struggling in absence
of both policy and monetary incentives;
Taanbazar yarn market is still contributing as a
major player in sustaining the local fabric and
handlooms and to some extent to export oriented
textile. Only locally produced yarn is sold in
this market. Spinners import raw cotton and
process it to yarn. Merchants of Taanbazar do
trading with this yarn as agents of spinning
mills.
Taanbajar is not only a yarn market; it is also
the only wholesale selling point of dye and
chemicals for handloom and local fabric.
 Merchants
in Taanbazar yarn market are agents of spinning
mills. They usually make annual or multiple year
contracts with spinning mills. In accordance to
such contract, each agent is entitled to sellout
the total quantity of yarn produced, by any
spinning mill, within contract period. As per
the contract, production output of spinning
mills directly goes to warehouses of the
merchants located in different parts of
Bangladesh, from where they supply yarn to their
customers. In these cases their customers are
either the retailers or the representatives of
textile plants.
Retailers of yarn are usually the supply source
of handloom sector of the country particularly
in Baburhat in Narsingdi; Sohagpur, Enayetpur
and Shahajadpur in Sirajganj; and Tangail and
Kumarkhali in Kushtia.
Some unfriendly custom and monetary policies are
adversely affecting the local textile sector.
Businessmen of Taanbajar consider the provision
of importing less than 30 count and above 80
count raw cotton 'not business friendly'.
Another serious concern for the cotton sector is
the increasing exchange rate of dollar that
contributes to soar up the production cost of
spinning mills.
Increased exchange rate of dollar coupled with
price hike of raw cotton in international market
has pushed the spinners to uncertainty. Raw
cotton selling at the rate of 52-55 cent per
118-inch only five months back is presently
selling at 60 cent. In such a situation, the
traders cannot reduce the price of yarn and the
millers producing clothes for local market need
to scale up their price for cost adjustment.
“In such situation, we face uneven competition
with subsidized left over products of export
oriented textile industries”, said Devdas Saha,
an executive member of the Bangladesh Yarn
Merchant Association. This imbalance occurs when
export-oriented textile industries produce
apparels more than their order. Being
export-oriented textile they can avail 15
percent incentives from the government against
their sale and subsequently they can also keep
their product rate lower than those only
produced for local market.
Bangladesh Yarn Merchant Association is a
platform of yarn merchants where they can raise
their common voice. When Abdul Mannan, Executive
Secretary of the Bangladesh Yarn Merchant
Association, stationed at Taanbazar, Narayanganj,
was asked about the role of the association in
facing crisis situation, he said, “We generally
address license related problems of yarn
merchants and breach of contract by spinners.”
Apart from these, if merchants face any other
market-oriented problem and seek policy support,
the association raises those issues to the
concerned ministry. In this connection,
according to Mr. Mannan, the association plays a
significant role in preventing import of yarn
through land port. He believes that with ban on
import of yarn through land port, spinning mills
have witnessed a growth in Bangladesh.
Bangladesh Yarn Merchant Association is enlisted
with the country's business apex body Federation
of Bangladesh Chamber of Commerce and Industries
(FBCCI). It has about 600 members across the
country.
 According
to some key members of Bangladesh Yarn Merchant
Association, with expansion of spinning sector
the gap between demand and supply is getting
narrowed. Demand of yarn in the country for both
domestic and export-oriented textile industries
has increased significantly.
It is felt that imposition of ban on import of
yarn through land port has already created an
environment of expansion of spinning sector in
the country. If the bottleneck related to
customs and monetary policy that adversely
affect the delivery of raw cotton could be
removed and if domestic textile or handloom
sector could be brought under incentive package;
like export-oriented textile, these age-old
local industries will again see ray of hopes and
thrive to success.
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