A meeting aimed at finding ways to protect Bangladesh’s local yarn industry without harming the export-oriented knitwear and garment sector ended without consensus, as sharp differences emerged among key industry stakeholders.
The representative meeting, held on Thursday at a city hotel, brought together the Bangladesh Textile Mills Association, the Bangladesh Knitwear Manufacturers and Exporters Association and the Bangladesh Garment Manufacturers and Exporters Association.
The textile millers placed three proposals before the exporters: imposing a safeguard tariff on imported yarn, introducing special incentives for the use of locally produced yarn and withdrawing bonded warehouse HS code facilities for certain export-oriented yarns to limit imports of cotton and blended yarn used in knit garments.
Exporters from the knitwear and garment sectors rejected the first and third proposals, arguing that such measures could disrupt raw material supplies, hurt export competitiveness and undermine the confidence of international buyers. They said Bangladesh competes with multiple countries in global apparel markets and any uncertainty in sourcing inputs could weaken the sector’s position.
Instead, representatives of BKMEA and BGMEA said discussions should focus on protecting the domestic spinning industry through measures that do not directly affect exporters. They also questioned why Bangladesh has failed to expand yarn exports abroad, noting that many countries export yarn to Bangladesh and that India sends nearly 55 per cent of its yarn exports to markets other than Bangladesh.
Participants said the meeting should examine the types of incentives and policy support provided by India to its textile industry and assess whether similar measures could be adapted locally.
Data presented at the meeting showed that yarn imports declined over the past six months compared with the same period a year earlier, indicating lower overall yarn consumption and a build-up of local yarn inventories.
Bangladesh Textile Mills Association Director Masud Rana said a government incentive of 5 to 7 per cent on final exports could generate nearly double the revenue through taxes, related income streams, higher exports and increased employment. He said such an incentive could protect domestic spinners and small and medium knit garment factories while supporting export growth.
Representatives of BGMEA and BKMEA expressed agreement with the incentive-based approach. However, Bangladesh Textile Mills Association representatives Mokhlesur Rahman and Md Badsha Mia reiterated support for restricting yarn imports under bonded warehouse facilities.
The meeting asked export associations to submit data and evidence supporting their respective positions, after which recommendations would be prepared and sent to the Ministry of Commerce.
Those attending included BKMEA representative Fazle Shamim Ehsan and BGMEA Acting President Salim Rahman, Vice President Shehab Uddin Chowdhury, Director Md Hasib Uddin, Nafis-ud-Daula and Rupa Group’s Shahid Ahmed. From the Bangladesh Textile Mills Association, participants included Shamim Ahmed, Md Badsha Mia, Mokhlesur Rahman, Khorshed Alam, Shahid Alam and Salehuddin Zaman.
