Home
+
Published : 22 Jan 2026, 04:52 PM
The Bangladesh Textile Mills Association (BTMA) has urged the interim government to implement the commerce ministry’s proposal to remove the bond facility for cotton yarn imports.
The demand was made at a press conference held at the BTMA office in Dhaka’s Karwan Bazar on Thursday.
Speaking at the event, BTMA President Showkat Aziz Russell said: “If our demand is not met, we will close the factories from the 1st of February.
“Only then will the government understand that we cannot continue under these conditions,” he added.
He said factories would shut automatically if bank loans could not be repaid, adding: “After graduating from LDC status, the garment sector will have to achieve 40 percent value addition. Preparations must begin now.
“By then, such large volumes of yarn imports will not be possible. How will the garment sector operate then? They will have to add value -- how will they do that? Otherwise, they will not be able to export to the US and European markets.”
Showkat said local spinning mills can meet 100 percent of the knit sector’s yarn demand and 70 percent of the woven sector’s demand.
“The proposal to withdraw bonded warehouse facilities on cotton yarn must be scrapped immediately. At present, they are importing yarn from India and exporting garments,” he said.
“During the COVID period, India stopped exporting cotton and yarn. We witnessed that first-hand. India is not a dependable country,” he added.
He alleged: “India is now supplying yarn at lower prices. Once our mills shut down, if they increase prices by one dollar per kilogramme, what will the RMG sector do then?”
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and BKMEA have proposed buying yarn from local mills even if it costs 10–20 cents more per kilogramme than imports.
Showkat said BTMA does not agree with the proposal.
Asked what price difference BTMA would accept, he said: “These are just theoretical discussions. They do not reflect reality.”
Export-oriented industries enjoy bonded facilities that allow duty-free import of raw materials.
There are allegations of misuse, with some traders selling bonded imports on the black market, depriving the government of revenue.
Yarn currently qualifies for bonded benefits.
Under a new proposal, the commerce ministry has recommended withdrawing bonded facilities on yarn made from imported cotton of 10–30 counts.
Importers, however, will receive duty refunds after exporting products made with duty-paid yarn.
Former BTMA director Rajib Haider said: “No import duty has been imposed on yarn. The commerce ministry has proposed withdrawing the bonded facility. That should not create any problem.”
The press conference also said unsold yarn worth Tk 125 billion has been lying with local spinning mills over the past six months.
