Bangladesh’s textile spinners have warned of an indefinite shutdown of spinning mills, citing mounting pressure from duty-free yarn imports that they say are undercutting domestic producers. Industry representatives argue that the continued inflow of zero-duty yarn has eroded demand for locally produced yarn, leading to falling capacity utilisation, financial stress and rising inventories across spinning units.
The Bangladesh Textile Mills Association (BTMA) has flagged that many mills are already operating at reduced levels due to weak orders from the garment sector, which increasingly prefers cheaper imported yarn. According to millers, high production costs driven by elevated energy prices, interest rates and raw material expenses have further squeezed margins, making it difficult for local spinners to compete with imported alternatives.
Millers have urged the government to review the duty-free import regime and introduce safeguard measures to protect domestic spinning capacity. They warn that prolonged inaction could force widespread mill closures, resulting in job losses and disruptions to the upstream segment of Bangladesh’s textile value chain.
The warning comes at a time when Bangladesh’s readymade garment industry remains heavily export-oriented and focused on cost competitiveness. Analysts note that while duty-free yarn imports help garment exporters manage costs and meet delivery timelines, prolonged stress on domestic spinners could weaken backward linkages and increase reliance on imports over the longer term.