TBT DESK: The Bangladesh Textile Mills Association (BTMA) held a special press conference on Monday at the Gulshan Club in Dhaka to highlight the ongoing crisis in the country's textile industry.
BTMA President Shawkat Aziz Russel stated that domestic textile mills are suffering losses as Indian yarn is being imported at dumping prices through various land ports.
Speaking at the event, Russel emphasised that Bangladesh's textile sector, a key driver of the economy and export earnings, has been grappling with multiple challenges for years. These include rising gas and electricity costs, a shortage of US dollars, an increase in bank interest rates up to 18%, a decline in cash incentives for exports due to LDC graduation conditions, and a devaluation of the taka leading to a working capital crisis.
In addition to these issues, the influx of Indian yarn and fabric at dumping prices via land ports and customs houses has further intensified the challenges for local textile manufacturers, he added.
"We are unable to sell the yarn we produce. Indian yarn is being imported both through letters of credit (LC) and without LCs, at dumped prices, which is leaving our domestic production unsold. At present, our members have around Tk 8,000 to 10,000 crore worth of unsold yarn in warehouses," said Russel.
Following movements in July-August, BTMA urged the government to take immediate measures to protect the domestic textile industry by revising discriminatory policies. One of their key demands is restricting yarn imports through land ports and allowing imports only via seaports.
BTMA also called for an immediate halt to the Bangladesh Energy Regulatory Commission's recent initiative to increase gas prices and requested uninterrupted gas supply to the textile sector. Furthermore, the organisation demanded the postponement of Bangladesh's LDC graduation process.
At the press conference, BTMA highlighted its role as the largest organisation in the primary textile sector, representing 1,854 members, including 527 spinning mills, 986 weaving mills, and 341 dyeing, printing, and finishing mills.
With an investment of over $22 billion, the textile sector remains the largest private sector investment in Bangladesh.
The industry contributes approximately 13% to GDP, with textiles and apparel accounting for around 85% of total export earnings. BTMA members supply nearly 70% of the raw materials for garment exports, contributing to a 30% foreign currency retention rate.
Currently, BTMA members provide nearly 100% of the yarn needed for the knitwear sector and 50% for woven textiles. Additionally, BTMA mills fully meet domestic demand for denim, home textiles, and terry towels, making a significant contribution to export earnings.