India currently selling yarn at dumping prices: BTMA

Business Report:

Yarn imported from India is being dumped in Bangladesh at prices 30 cents lower, leading to the closure of 50 local mills in the country and the loss of 200,000 jobs, Showkat Aziz Russell, President of the Bangladesh Textile Mills Association (BTMA) said on Sunday.

The BTMA president also informed currently, there are more than 500 yarn-producing mills in the country and spinning mills have a yarn stockpile worth about Tk12,000 crore even as production costs have risen significantly.

He made these remarks on Sunday at a views-exchange meeting organized by BTMA at the Gulshan Club in Dhaka. BTMA arranged the event to present the sector’s challenges and seek immediate policy support.

Seeking urgent government intervention to help local spinning mills cut production costs and remain competitive, the Bangladesh Textile Mills Association (BTMA) has demanded a decision within 72 hours to save the crisis-hit textile sector.

The trade body representing primary textile millers placed several demands, including a 10 per cent cash incentive on the use of locally produced yarn, a reduction in gas prices, and lower bank interest rates.

In response to journalists’ questions, Russell alleged that yarn from India is being dumped in the Bangladeshi market at low prices, creating unfair competition for local spinners and contributing to the closure of mills.

“Indian yarn is being dumped in Bangladesh at a price reduction of 30 cents. Our mills are gradually weakening. So far, 50 mills have closed, with investments in these factories ranging from Tk 5-7 billion. The closures have resulted in the loss of 200,000 jobs. Reopening these mills will be extremely difficult. In the past 15-20 months, we have not seen any government initiative. During this period, imports of yarn from India have increased by 137 percent, which is equally concerning.”

He warned that if Bangladesh’s textile mills shut down, the country could face serious consequences in the future, recalling past instances when India halted cotton and yarn exports to Bangladesh after local mills were weakened.

“If this continues, someday you may see a BTMA president without any textile mills,” he added
Emphasizing the need for self-reliance, Russell also remarks Bangladesh should not become overly dependent on imports.