Workers and employees from the spinning sub-sector of the textile industry have called on the government for policy support to help the spinning mills overcome ongoing challenges, particularly the import of yarn at dumping rates.
The spinning mills are grappling with several issues, including escalating production costs due to gas supply crunch, a foreign currency crisis and global economic factors, they said at a press conference on Thursday.
They claimed that 35 out of the 490 spinning mills in the country had been shut down over the past one and a half years, with several others facing partial closures. This has led to significant job losses in the sector.
Md Shahinul Haque, Director (Operations) at Mosharaf Composite Textile Mills Ltd, placed a set of seven demands and called for meeting these demands to help sustain the industry and protect jobs.
In his written statement, he made the seven demands, including imposition of safeguard duty on imported yarn, and enhancing cash incentives for use of local raw materials in exportable garments.
The other demands included 30 per cent rebate on gas and electricity bills, incentives for mills for a two-year interim period, reinstatement of the export development fund (EDF) facility, and incentives for recycled products.
Haque also called for long-term loans at low interest to facilitate machinery upgrades for mills.
Responding to a question, Engineer Azhar Ali, Chief Operating Officer of Salma Group, said cotton-producing countries, particularly those in the region, are offering significant incentives to their yarn manufacturers, allowing them to export yarn at prices below their production costs.
This has led to a flood of low-priced imported yarn in the local market as garment exporters are importing a huge quantity of yarn, making it difficult for local spinners to remain competitive, he said.
The influx of cheap imported yarn is causing local mills to lose market share, with many running at only 50-60 per cent capacity due to the high cost of production and the ongoing energy crisis, he added.
Ali warned that if the mills cannot regain their competitiveness and are forced to close, it will be the workers and employees who suffer the most.
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