The Bangladesh Textile Mills Association (BTMA) has expressed serious concerns regarding the influx of yarn and fabric imports in the country, which they claim threaten the local textile industry. During a press conference BTMA President Showkat Aziz Russell highlighted the negative impact of these imports on local mills, attributing the situation to competitive pricing that undermines local production costs.
Russell stated that the BTMA has formally requested the Government to halt imports of yarn through land ports until the capacity of these ports is improved. He emphasised that such measures are necessary to prevent false declarations associated with yarn imports, which he believes are contributing to the current challenges faced by the local textile sector.
He further mentioned that local mills currently hold substantial stockpiles of yarn, valued between Taka 8,000 crore and Taka 10,000 crore, indicating a significant capacity that is not being utilized effectively due to market pressures.
BTMA Vice President Saleudh Zaman Khan echoed these concerns, pointing out that current pricing dynamics are not benefiting Bangladesh’s garment factories and instead favor buyers. He called for government intervention to address the issue.
In addition to import concerns, Zaman also advocated for a reduction in gas prices to below Taka 20 per unit, citing that the ongoing gas crisis has led to mills operating at only 50 per cent to 60 per cent capacity. He questioned the rationale behind encouraging LNG imports when local gas reserves could potentially be utilized more effectively.
Another BTMA Vice President, Md Abul Kalam, urged for a reduction in interest rates to single digits to foster investment in the sector. He called for these rates to be fixed at single digits for a period of three years to stabilize the industry.
