The Government has taken steps to prohibit yarn imports through land ports, aiming to prevent the misuse of these facilities, which are reportedly ill-equipped to accurately identify various categories of yarn. This decision stems from a request by textile millers who argue that such imports undermine the local industry, according to sources from the Ministry of Commerce.
Ministry officials indicated that the ban will allow yarn to be imported exclusively through seaports, a key raw material for the ready-made garment (RMG) sector. However, apparel exporters have raised concerns that this restriction may adversely affect small and medium-sized factories that depend on land ports for more accessible and cost-effective access to raw materials.
A senior official from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) expressed worries that the sudden ban could place additional strain on smaller factories, especially those located in border areas that rely on land ports for quick and flexible imports.
The Bangladesh Textile Mills Association (BTMA), which represents spinning and textile mill owners, formally requested the ban in a letter to Finance Adviser Salehuddin Ahmed. BTMA President Showkat Aziz Russell emphasised that previous policy changes had allowed yarn imports through land ports, but these facilities lack the infrastructure to properly scrutinise raw materials.
Russell also noted that permitting partial shipments has led to significant misuse, negatively impacting local mills. He highlighted that although apparel exports have increased in the current fiscal year, local mills are grappling with challenges, including low orders. The BTMA has expressed concern that continued yarn imports through land ports could lead to greater reliance on imports, higher costs, and increased unemployment.
Apparel industry leaders have voiced their apprehensions about the potential disruption of the supply chain, rising production costs, and the impact on Bangladesh’s competitiveness in the global apparel market. While larger factories can source materials through seaports or local suppliers, smaller manufacturers often lack these alternatives.
Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), pointed out that local textile millers are struggling with large stockpiles due to previous Government decisions that reduced cash incentives on local yarn. He noted that local textile millers are less competitive in pricing compared to their counterparts in countries like India and Vietnam.
BKMEA Executive President Fazlee Shamim Ehsan suggested that while the Government’s concerns are valid, a complete ban may not be the best solution. He proposed enhancing monitoring and customs procedures at land ports as a more effective approach.
Industry leaders are urging the Government to reconsider the decision, advocating for phased implementation or exemptions for smaller factories to mitigate the negative impacts on the sector.
In their letter, the BTMA highlighted the inadequacies of land ports like Benapole, Bhomra, Sona Masjid, and Banglabandha, which lack the necessary infrastructure, yarn count measuring equipment, skilled personnel, and effective oversight, resulting in inefficient management of import and export trade.
