Textile millers to seek govt support to protect local industry
They worry that such facilities will be misused to bring a large quantity of yarn into the country under false declarations, which in turn will flood the domestic market
If Bangladesh allows yarn imports through all land ports across the country, and permits partial imports of the readymade garment industry's key material under the same letters of credit (LCs), it will seriously impact the local textile mills, industry leaders have said.
They worry that such facilities will be misused to bring a large quantity of yarn into the country under false declarations, which in turn will flood the domestic market.
The Bangladesh Textile Mills Association (BTMA) has launched an effort to reach out to the National Board of Revenue (NBR) and ministries concerned in a bid to prevent such a scenario, and the decision came following a meeting of the association's senior leaders on Tuesday.
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An insider who attended the meeting said, "We will soon reach out to the government to showcase the impact local textile industry will suffer due to irregularities if yarn imports are allowed through every land port and permissions are granted for partial imports.
"But before that, we aim to hold meetings with both organisations of the RMG industry."
A number of BTMA leaders – who were also present at the meeting – on condition of anonymity said they are concerned that if all land ports allow yarn imports, large amounts of the key material imported under false declaration will flood the local market.
"If this happens, the local textile mills that are established through a lot of investment might suffer losses. We will write to the ministry concerned and the NBR regarding the matter."
BTMA President Mohammad Ali Khokon attended the meeting among many others.
RMG owners have been expressing their concerns for some time over the unusual rise of yarn, especially in the local market.
Though apparel makers are complaining that the spinning mill owners are hiking yarn prices unnaturally, they in response have claimed that the material's price has gone up in the international market.
Last week, leaders of both sectors held a meeting on the issue, and the BTMA assured the RMG leaders that the yarn prices will not increase for now.
After only a few days of that meeting, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) wrote to the commerce ministry seeking permission for importing yarn through all land ports across the country, and for partial imports of the key material under the same letters of credit (LCs).
