Bangladesh's textile industry is facing a crisis as imports, particularly from India, are rising. In 2024, the country’s cotton yarn imports increased by 39 per cent to $2.28 billion, while fabric imports rose by 38 per cent to over $2.59 billion. This is putting a significant strain on local textile mills, despite recent investments to enhance production capacity.
With garment manufacturers increasingly favoring cheaper imports, citing price competitiveness, local mills are struggling to compete due to rising production costs and reduced government incentives for using local yarn. For example, MB Knit Fashions saves over $200,000 by importing yarn from India instead of sourcing locally, despite government incentives.
Concerns are been raised about the illegal import of yarn through smuggling. Additionally, textile mill owners allege that Indian exporters benefit from substantial government subsidies, enabling them to sell yarn at dumping prices. They are urging the government to impose anti-dumping duties on imports from India.
Experts argue, long-term support for the textile industry through taxpayer money is unsustainable. Instead, they suggest focusing on reducing business costs for local mills, such as logistics, port, banking, and customs costs, to enhance their competitiveness.
The rise in imports is threatening the viability of the domestic textile industry and may have significant negative impacts on Bangladesh's economy, warn experts.
