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Bangladesh - Yarn prices that witnessed a hike of more than 20% one and a half months ago, have emerged as a major concern for apparel exporters.

The Daily Star reports that textile mills' data shows the widely used 30-count yarn in Bangladesh, was selling at $3.20-$2.95 a kg on 27 January 2010. The previous rates hovered around $2.80-$2.90 a kg. Industry insiders see the situation as a result of higher domestic demand for the item and surging prices of raw cotton on the international market. Also, yarn makers blame the increasing cost of production, as they had to go below their capacity because of a scarce supply of gas to their factories.

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