Textile needs policy protection

The textile industry, widely regarded as the backbone of the country's economy, is going through a severe crisis. Stakeholders from the sector drew the government's attention to the issue at a press conference on Thursday. They stated that production costs have risen sharply due to the Covid-19 pandemic, the Russia-Ukraine war and the ongoing dollar and energy crises. As a result, nearly 40 per cent of factories have already halted production, leaving lakhs workers unemployed and living in distress. The remaining factories are barely surviving, with production capacity falling to less than half. In such circumstances, they argued, it will be difficult to arrest the decline of the industry without strong policy support from the government.

Meanwhile, spinning mill owners have pointed to serious policy weaknesses. The cash incentive, once set at 25 per cent, has been reduced to just 1.5 per cent, further weakening the sector. At the same time, low-priced foreign yarn is entering the country and capturing the domestic market, placing additional pressure on local producers.

Another major aspect of the crisis is the growing tendency of some local garment owners to import foreign yarn. Although the domestic textile industry is capable of supplying most of the raw materials required by the garment sector, this trend is shrinking the local yarn market. Consequently, the domestic industry is being undermined, and the opportunity to build a strong and sustainable value chain within the country is being missed. Experts warn that if spinning mills close today, garment manufacturers will be forced to rely on foreign yarn at higher prices in the future. The social consequences could be severe, as rising unemployment may lead to wider social unrest.

Policy support is therefore essential to save this industry. The government should seriously consider the demands raised by spinning mill owners, including a 10 per cent cash incentive for the use of local yarn, the imposition of anti-dumping or safeguard duties on yarn imports, and a 30 per cent concession on gas and electricity bills. There is also a need to require export-oriented garment factories to procure a certain proportion of raw materials from local sources. The government must recognise that protecting the textile industry is not merely about saving a few factories; it is about safeguarding the country's largest export sector and the livelihoods of millions of workers. Failure to act now could plunge both the textile and garment industries into a far deeper crisis in the future.

Mohibul Hasan Rafi

Government City College, Chattogram

mohibulhasanrafi809067@gmail.com