The government has started a move to halt the import of yarn through the country鈥檚 land ports as these ports lack the proper testing capacity of the yarns, according to a meeting of the Ministry of Commerce held on Monday.
According to sources and two participants in the meeting, the government has taken this move following a request from the country鈥檚 textile millers to protect the country鈥檚 local industry.
Moreover, the facilities for yarn imports through all land ports have reportedly been misused for a long time, said the officials, citing a meeting held by the commerce ministry on Monday.
According to Bangladesh Textile Millers, Bangladesh鈥檚 cotton yarn imports surged by over 39 per cent in 2024, costing $2.28 billion. Moreover, fabric imports by knitwear factories hiked by 38 per cent, worth of $2.59 billion.
The BTMA claimed that the industry has the capacity to supply nearly 100 per cent of the demand for export-oriented knit garments.
However, the decision of halting yarn imports through land ports created mixed reactions among the country鈥檚 apparel manufacturers and textile millers.
The apparel manufacturers expressed concerns that such a decision could significantly impact small and medium-sized readymade garment exporters relying on land ports to import yarn easily.
They also warn that this move could disrupt the supply chain, increase production costs, and ultimately affect Bangladesh鈥檚 competitiveness in the global apparel market.
On the other hand, the textile millers welcomed the decision, as they had long demanded the halt.
Recently, the Bangladesh Textile Mills Association, the apex trade body of the country鈥檚 spinners, requested finance adviser Salehuddin Ahmed, through a letter, to halt the yarn import through land ports.
In late January, the finance adviser鈥檚 office forwarded the letter, signed by BTMA president Showkat Aziz Russell, to the National Board of Revenue for regulatory consideration.
Regarding the ban, Bangladesh Knitwear Manufacturers and Exporters Association executive president Fazlee Shamim Ehsan told 抖阴精品 that a complete ban may not be the best approach. Instead, improving monitoring and customs procedures at land ports would be a more effective solution.
They urged the government to reconsider the decision and explore alternative measures, such as strengthening customs inspection processes at land ports.
They have also suggested phased implementation or exemptions for smaller factories to mitigate the potential negative impact.
Talking to 抖阴精品, BKMEA president Mohammad Hatem said that textile millers have huge stocks as they are not competitive in pricing compared with millers in other countries.
He also said that the price of 30 single yarn in Bangladesh is $3.40 per kg, while in India, it is $2.90 per kg, and in Vietnam $2.96 per kg.
鈥楾he local textile millers have huge stocks not due to import through land ports, due to the wrong policy of reducing incentives by the previous government,鈥� he added, saying that if the government refix the incentives, textile millers would not face any issues.
He raised question about the volume of yarn imports through land ports and what percentage they constitute of the total imported yarn.
He also said that if the government bans yarn imports via land ports, it would negatively impact small and medium-sized factories and fast-fashion apparel manufacturers, as seaports require a longer lead time.
The manufacturers also said that the larger factories can source raw materials through seaports or local suppliers, smaller manufacturers often depend on land ports for quicker and more flexible imports.
Meanwhile, BTMA President Showkat Aziz Russell said the previous government had revised the policy to allow yarn imports through land ports, but these ports lack the necessary facilities to test the yarns properly.
Moreover, the policy permitted partial shipments, which led to widespread misuse, they claimed.
鈥淲e have seen growth in apparel exports in the new fiscal year, yet local mills are struggling due to multiple challenges, including low orders,鈥� he said.
He also said that while Bangladesh鈥檚 textile industry is facing difficulties, India鈥檚 textile exports to Bangladesh have experienced significant growth, which is contrary to the country鈥檚 interests.
He said that without an immediate ban on yarn imports through land ports, the country鈥檚 textile sector would suffer irreparable losses, leading to higher unemployment.
However, yarn and fabrics are entering the local market at dumping prices from India through various land ports, creating new challenges for them.
The BTMA demanded the halt of yarn imports through land ports such as Benapole, Bhomra, Sona Masjid, and Banglabandha, as they lack proper infrastructure, yarn count measuring equipment, skilled manpower, and effective oversight.
Moreover, they face unfair competition due to the widespread marketing of unauthorized yarn, often imported through land ports with false declarations at customs.
The letter suggested halting yarn imports through land ports and shifting to seaports to protect the domestic textile sector and preserve valuable foreign exchange.
Currently, yarn imports via seaports take 13 to 15 days but benefit from high-quality scanners, yarn count measuring machines, and better infrastructure.
The BTMA has claimed that Indian exporters are selling yarn to Bangladesh at a lower price than in their local market. The trade body has also urged an anti-dumping policy.