Bangladesh’s garment industry is facing mounting uncertainty as its three leading trade bodies clash over proposals to impose duties and withdraw bonded facilities on yarn imports. The dispute has raised concerns about a potential image crisis at a time when global buyers are already cautious.
Over the past five months, Bangladesh’s garment exports to 26 countries have declined compared to previous levels. Industry insiders warn that the ongoing conflict over yarn imports could further erode buyer confidence and weaken the country’s position in the global apparel market.
Knit garment manufacturers argue that imposing duties on yarn would increase production costs, making Bangladeshi garments less competitive. Higher prices, they warn, could prompt buyers to shift orders to rival countries. They also caution that restricting imports to protect spinning mills could disrupt the knitting, dyeing, and garment manufacturing segments.
Textile-sector entrepreneurs, however, say the spinning industry is under severe pressure. According to them, around 50 spinning mills have already shut down, while unsold yarn worth an estimated BDT 12,000 crore remains stockpiled. To protect domestic mills, they are calling for the withdrawal of bonded facilities on certain yarn imports.
On December 29, the Bangladesh Textile Mills Association (BTMA) wrote to the Bangladesh Trade and Tariff Commission seeking either a 20 percent safeguard duty or the withdrawal of bonded facilities on imports of 10–30 count cotton and blended yarn, citing increased imports from India.
After meeting BTMA leaders on January 5, the Tariff Commission recommended the following day that the Ministry of Commerce exclude 10–30 count yarn imports from bonded facilities. This move drew objections from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), both of which sent protest letters on January 6.
A joint meeting of all stakeholders was held on January 8, where BGMEA and BKMEA opposed any duties on yarn imports. The meeting ended without a decision. Nevertheless, on January 12, the Ministry of Commerce recommended that the National Board of Revenue (NBR) withdraw bonded facilities on 10–30 count cotton yarn imports, reigniting uncertainty across the sector.
BTMA President Showkat Aziz said several formal meetings have been held with government bodies and industry representatives. He noted that in earlier informal discussions, leaders of BTMA, BGMEA, and BKMEA had agreed in principle that yarns fully produced domestically could be excluded from bonded facilities in the interest of local industry.
BKMEA President Mohammad Hatem warned that ongoing uncertainty over yarn imports is confusing foreign buyers and could discourage new orders, harming Bangladesh’s long-term brand image. He also stressed the need to identify why domestically produced yarn remains unsold.
Hatem also pointed to Bangladesh’s structural disadvantages compared to competing garment-producing countries. The absence of a deep-sea port adds 15–20 days to delivery times, while productivity remains lower than in countries such as Vietnam. Higher energy costs and interest rates further increase production expenses.
Despite these challenges, industry leaders say Bangladesh’s continued survival in the highly competitive global garment market remains a significant achievement—one that could be threatened if internal divisions persist.
Bd-pratidin English/Jisan
