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Manufacturers fret over Tk120b unsold apparel raw material
Millers fret over a stockpile of unsold local yarn worth Tk 120 billion amid massive influx of the cheap-rated clothing raw material, allegedly meant to undercut domestic industry, manufacturers say. The country's primary textile millers, especially spinners, say yarn imports from India in
DUMPING-RATED YARN INFLUX IMPERILS DOMESTIC INDUSTRY
Manufacturers fret over Tk120b unsold apparel raw material
Neighbouring traders pushing in knitting threads at rates deep down market value, millers say
Published :
Dec 29, 2025 00:22
Updated :
Dec 29, 2025 00:22
Millers fret over a stockpile of unsold local yarn worth Tk 120 billion amid massive influx of the cheap-rated clothing raw material, allegedly meant to undercut domestic industry, manufacturers say.
The country's primary textile millers, especially spinners, say yarn imports from India increased 137 per cent last fiscal year as traders over there are dumping the raw material at significantly cut-down prices.
This competitive pressure has already forced 50 local spinning mills to shut down while another 50 are on the verge of closure, threatening the stability of the country's garment sector and its reliance on foreign raw materials.
Bangladesh Textile Mills Association (BTMA) president Showkat
Aziz Russell made the remarks at a press conference held Sunday at Gulshan Club in Dhaka.
The BTMA president alleged that Indian traders kept dumping yarns into Bangladesh at US30-cent lower price per kg than that of local make as their government provides a number of incentives.
Citing the closure of one of his cotton mills out of five, he said another one was going the same way.
"Reopening those closed mills where Tk 5.0 billion to Tk 7.0 billion has been invested is difficult," the association chief says, adding that some 0.2 million workers lost their employment following the shutdown.
He mentions that yarns worth of Tk 100 billion, if price is calculated at Indian rates, remained unsold in the spinning mills due to the influx of Indian yarns. He hastens to add that the original price of the unsold yarn would be Tk 120 billion.
The mill owner, however, makes it clear they are not against yarn import from the neighbouring country rather they want a reduction in gaping trade deficit.
"We should reduce such huge dependency on Indian yarn," the BTMA leader told the reporters, recalling the past instances when India had halted cotton and yarn export to Bangladesh.
The association comes up with a number demands meant for a remedy, by way of helping local spinning mills to reduce cost of production and sustain competitiveness.
They seek urgent government decision within 72 hours to salvage the crisis-hit textile sector.
The BTMA demands include 10-percent cash incentives on local yarn use, reducing gas price and bank interest rates, an extension in loan- repayment periods, enhancing the Export Development Fund and providing the funds at 1.0-percent interest.
Speaking there, A Matin Chowdhury, former president of BTMA, stressed stopping import of Indian yarns which are locally available and demanded financial supports to reduce the production cost to be competitive.
"Local yarn prices compared to that of Indian variety are not that high," he said, explaining that India offers a number of benefits, including incentives, to keep their yarn prices low.
Former BTMA director Rajib Haider demands safeguard measures against imported yarns which local spinners have the capability to produce.
Speaking at the news conference, former president of the association Mohammad Ali Khokon demanded separate window at the central bank for textile industry and an increase in the loan-repayment schedule with two years' grace period.
Manufacturers fret over Tk120b unsold apparel raw material
Neighbouring traders pushing in knitting threads at rates deep down market value, millers say
Published :
Dec 29, 2025 00:22
Updated :
Dec 29, 2025 00:22
Millers fret over a stockpile of unsold local yarn worth Tk 120 billion amid massive influx of the cheap-rated clothing raw material, allegedly meant to undercut domestic industry, manufacturers say.
The country's primary textile millers, especially spinners, say yarn imports from India increased 137 per cent last fiscal year as traders over there are dumping the raw material at significantly cut-down prices.
This competitive pressure has already forced 50 local spinning mills to shut down while another 50 are on the verge of closure, threatening the stability of the country's garment sector and its reliance on foreign raw materials.
Bangladesh Textile Mills Association (BTMA) president Showkat
Aziz Russell made the remarks at a press conference held Sunday at Gulshan Club in Dhaka.
The BTMA president alleged that Indian traders kept dumping yarns into Bangladesh at US30-cent lower price per kg than that of local make as their government provides a number of incentives.
Citing the closure of one of his cotton mills out of five, he said another one was going the same way.
"Reopening those closed mills where Tk 5.0 billion to Tk 7.0 billion has been invested is difficult," the association chief says, adding that some 0.2 million workers lost their employment following the shutdown.
He mentions that yarns worth of Tk 100 billion, if price is calculated at Indian rates, remained unsold in the spinning mills due to the influx of Indian yarns. He hastens to add that the original price of the unsold yarn would be Tk 120 billion.
The mill owner, however, makes it clear they are not against yarn import from the neighbouring country rather they want a reduction in gaping trade deficit.
"We should reduce such huge dependency on Indian yarn," the BTMA leader told the reporters, recalling the past instances when India had halted cotton and yarn export to Bangladesh.
The association comes up with a number demands meant for a remedy, by way of helping local spinning mills to reduce cost of production and sustain competitiveness.
They seek urgent government decision within 72 hours to salvage the crisis-hit textile sector.
The BTMA demands include 10-percent cash incentives on local yarn use, reducing gas price and bank interest rates, an extension in loan- repayment periods, enhancing the Export Development Fund and providing the funds at 1.0-percent interest.
Speaking there, A Matin Chowdhury, former president of BTMA, stressed stopping import of Indian yarns which are locally available and demanded financial supports to reduce the production cost to be competitive.
"Local yarn prices compared to that of Indian variety are not that high," he said, explaining that India offers a number of benefits, including incentives, to keep their yarn prices low.
Former BTMA director Rajib Haider demands safeguard measures against imported yarns which local spinners have the capability to produce.
Speaking at the news conference, former president of the association Mohammad Ali Khokon demanded separate window at the central bank for textile industry and an increase in the loan-repayment schedule with two years' grace period.
