The Bangladeshi government plans to ban yarn imports through land ports on concerns raised by local textile millers about misuse and unfair competition.
These land ports lack the required infrastructure to identify the yarn category accurately, argues
The Bangladesh Textile Mills Association (BTMA). This often leads to widespread misuse and harming domestic industries. Therefore, yarn imports should be shifted exclusively to seaports that have better monitoring capabilities, adds the association.
However, apparel exporters, particularly small and medium-sized factories, have expressed concerns over the potential negative impact of such a ban.
As these exporters mainly rely on land ports for quicker and more cost-effective access to raw materials, a sudden ban on them lead to financial distress, warns BGMEA. The move could not only disrupt supply chains and increase production costs, but also Bangladesh's competitiveness in the global apparel market, it adds.
Highlighting the competitive disadvantage faced by local textile millers, the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) notes, their yarn prices are significantly higher than those in India and Vietnam. They also point to existing stockpiles due to reduced cash incentives on local yarn, further complicating the situation.
Industry leaders suggest that instead of a complete ban, the government should focus on improving monitoring and customs procedures at land ports. They also advocate for anti-dumping duties to address unfair competition from Indian exporters. The Ministry of Commerce has requested supporting documents from BTMA regarding alleged dumping practices.
The textile sector already faces numerous challenges, including rising energy costs, a dollar crisis, and reduced export incentives. A ban on land port yarn imports could exacerbate these issues, particularly for smaller manufacturers. Exporters are urging the government to reconsider the decision and explore alternative solutions, such as phased implementation or exemptions, to mitigate the potential damage to the industry.
