BTMA suspends factory shutdown programme

The Bangladesh Textile Mills Association (BTMA) has suspended its programme to shut down factories following government assurances to resolve the ongoing crisis in the spinning sector.
In a statement issued on Thursday, the primary textile millers' trade body announced the withdrawal of its earlier decision to close textile mills from February 01.
The assurance came at a high-level meeting held on Tuesday (January 27) at the Ministry of Commerce, chaired by Commerce Adviser Sheikh Bashir Uddin, where the government agreed to review the challenges facing the readymade garment and textile sectors, with particular emphasis on the spinning industry, the statement said.
The meeting was attended by senior government officials, including the NBR chairman, commerce secretary, representatives from the Bangladesh Trade and Tariff Commission, the finance division and leaders from the BTMA, Bangladesh Garment Manufacturers and Exporters Association (BGMEA), and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
According to the BTMA statement, the commerce adviser acknowledged the validity of the concerns raised by industry stakeholders and underscored the strategic importance of the spinning sector in Bangladesh's export competitiveness and industrial value chain. He also reaffirmed the government's commitment to finding a solution to the issues through lawful, equitable, and time-bound policy measures in line with existing fiscal and regulatory frameworks.
At a press conference on January 22, the BTMA announced that millers would keep their spinning units shut from February 01 if the government failed to implement the commerce ministry's proposal to exclude 10 to 30 count yarn import under bonded facility saying cheap Indian yarn had been affecting the US$25 billion domestic primary textile sector.
Earlier on January 12, following a demand from the BTMA, the commerce ministry asked the National Board of Revenue to withdraw bonded warehouse facilities for importing yarn with counts ranging from 10 to 30, in a move aimed at protecting domestic textile millers.
This sparked a strong opposition from apparel sector trade bodies, BGMEA and BKMEA, which alleged that the Tariff Commission's such recommendation was made without any consultation with the major stakeholders.
BGMEA and BKMEA argued that such a move would primarily affect garment exporters and could undermine the competitiveness of Bangladesh's apparel industry saying buyers might shift to other sourcing destinations as the exclusion of the bonded facilities will increase production costs.
The government will engage in a discussion again on February 03 with related stakeholders in order to address the ongoing crisis in the spinning sector.

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