BTMA threatens production halt from Feb 1 over yarn imports

Bangladesh's primary textile sector is heading towards a potential nationwide shutdown, with mill owners warning that continued policy inaction could bring production to a standstill from February 1.

Industry leaders say mounting losses, unsold inventories and unfair competition from subsidised imports have pushed spinning and weaving mills to the brink.

The Bangladesh Textile Mills Association (BTMA) on Thursday issued an ultimatum, demanding urgent government intervention to protect domestic yarn producers.

It also warned that failure to implement the recommendation to withdraw bonded warehouse facilities for the import of 10-30 count cotton yarn could trigger widespread loan defaults, job losses and disruptions across the export-oriented garment supply chain.

The association also demanded a 10 per cent cash incentive on yarn production and the introduction of alternative safeguard measures to counter subsidised imports, describing the situation as a "national crisis".

BTMA President Showkat Aziz Russell placed the demands at an emergency press conference held at the association's office in the capital. He said the industry had reached a "state of emergency" after months of policy inaction.

"We are not slightly distressed; we are severely distressed. I consider this a national crisis. This is not a small problem," Mr Russell said.

BTMA leaders said the primary textile sector - spinning, weaving and dyeing-printing-finishing - had developed over decades as a critical backward linkage to the garment industry, but was now being pushed to the edge by a combination of policy withdrawals and unfair competition.

According to Mr Russell, the sector historically grew on the back of facilities such as bonded warehouses, back-to-back letters of credit, low interest rates and supportive investment policies-none of which are currently available to textile millers.

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