Bangladeshi textile millers are accusing their Indian counterparts of crippling the local industry by ‘dumping’ yarn and fabric into the Bangladeshi market. Showkat Aziz Russell, President, Bangladesh Textile Mills Association (BTMA), claims, this is a deliberate ‘conspiracy; backed by Indian government subsidies.

Millers assert, Indian companies are selling products below production costs both through legal and illegal channels. To prevent this, the Bangladesh Government should levy an anti-dumping duty on these imports and restrict their arrival through land ports, they demand. As per the National Board of Revenue, Bangladesh’s cotton yarn imports rose by 39 per cent and fabric imports increased by 38 per cent rise in 2024, costing Bangladesh billions.

BTMA contends, local mills have the capacity to meet nearly all the domestic demand for export-oriented knit garments, but buyer nominations necessitate some imports. However, they has been a significant increase in local yarn stockpiles, valued at billions of Bangladeshi taka, due to decreased sales, they point out

Millers argue, Indian exporters benefit from government incentives, such as the Remission of Duties or Taxes on Exported Products (RoDTEP) scheme and duty drawbacks, giving them an unfair competitive advantage. They claim, while production costs are similar in both countries, Indian exporters are selling yarn at lower prices than their domestic market, disadvantaging Bangladeshi producers.

Bangladeshi millers are also grappling with rising production costs due to increased gas prices, wages, and inadequate gas supply. They're calling for a reduction in gas prices and lower interest rates to encourage investment. They also criticize the reduction in government incentives for using local yarn, making it less attractive for garment exporters.

These millers warn, without government intervention, factory closures are imminent, threatening the viability of the entire textile industry.