Textile millers in Bangladesh have called on the Government to stop the import of yarn from India through land ports, citing significant challenges faced by the domestic yarn sector. The plea comes as millers report that substantial quantities of yarn are being smuggled through these ports, undermining their operations.
Showkat Aziz Russell, president of the Bangladesh Textile Mills Association (BTMA), made the request during a press conference held in Dhaka. He emphasised that while imports from India could still occur through seaports, where testing facilities are available and the risk of smuggling is lower, the current land port imports pose a significant threat to the domestic spinning industry.
Since January 2023, the Government has permitted yarn imports through four land ports: Benapole, Sonamasjid, Bhomra, and Banglabandha, in response to a surge in demand following the Covid-19 pandemic. However, Russell noted that the influx of yarn imports has jeopardized the local sector, which has attracted around US $ 15 billion in investment. Yarn imports from India surged by 40 percent last year, reaching US $ 2.7 billion, with Indian products accounting for over 95 per cent of those imports due to their competitive pricing 25 to 30 cents cheaper per kilogram than Bangladeshi yarn.
Russell highlighted that the weak oversight at land ports has led to illegal import practices, where traders exploit loopholes to bring in larger quantities than officially declared. For example, a trader may open a letter of credit for two tonnes of yarn but ultimately import ten tonnes across multiple trucks.
The domestic yarn industry is also grappling with challenges such as depreciating local currency against the US dollar, inadequate gas supplies, and decreased investment due to political instability. As a result, many yarn mills are operating at only half their capacity, with some having to shut down entirely.
Russell recalled that a previous Government had responded to similar concerns by halting yarn imports through land ports, a move he hopes the current administration will consider. He warned that without action, the increasing imports of Indian yarn over the next few months could lead to further job losses and diminish value addition within the sector.
To address these issues, Russell urged the Government to include representatives from the BTMA, BGMEA, and BKMEA on the board of directors of state-owned gas companies. This inclusion would help prevent detrimental decisions that could impact the textile and garment industries, which are vital to the country’s economy.
