Textile millers urged the Bangladesh Bank to raise the limit of letters of credit (LCs) so that they can bring more raw materials amid a huge depreciation of local currency against the US Dollar.

The Bangladesh Textile Millers Association (BTMA) sent a letter to the central bank regarding this last week.

It also requested to allow higher limit for single borrowers.

The BTMA sought allowance to pay 20 percent of their term loans in the current year while the rest will be paid four years after the payment period is over.

It demanded an equal conversion price of dollars for both remitter and exporters, or to make the dollar price market-based.

Textile millers are also seeking to extend the repayment period of the stimulus package that was provided during the Covid-19 pandemic.

The textile business is enduring a concerning situation due to global economic pressure, volatile dollar market, and political uncertainty, said Mohammad Ali Khokon, president of the BTMA, in the letter.

The crisis was aggravated by the hike in prices of fuel and raw materials.

This situation comes at a time when the industry is still recovering from the Covid-19 pandemic and war-related challenges, he said.

Many firms are running their businesses without making any profits while others are incurring losses.

At the same time, the minimum wage of workers has risen 50 percent.

The local currency was devalued by around 40 percent in the last two years.

Consequently, firms' limit to open LCs reduced and, as a result, many companies are struggling to bring in enough raw materials.

It has become tough to provide salaries and wages to workers and pay utility bills.

So, the BTMA is demanding to raise LC limits and extending loan facilities as well as extension of stimulus package.