Bangladesh textile mills urge action against Indian yarn dumping

Bangladesh’s textile industry has accused Indian millers of dumping yarn and fabric at artificially low prices, calling it a ‘conspiracy’ to undermine local production. The Bangladesh Textile Mills Association (BTMA) urged the government to impose anti-dumping duties and halt imports through land ports. BTMA President Showkat Aziz Russell alleged that Indian mills, backed by government subsidies, are selling yarn below production costs, harming local mills. Vice President Saleudh Zaman Khan said Indian exporters are offering yarn at $2.90 per kg, while local mills sell at $3. He highlighted India's export incentives, including RoDTEP and duty drawbacks, totaling around 6 per cent of export value.

Bangladesh’s cotton yarn imports surged 39 per cent in 2024 to $2.28 billion, while fabric imports rose 38 per cent to $2.59 billion. This has led to rising yarn stockpiles worth Tk8,000 crore - Tk10,000 crore. BTMA leaders also demanded lower gas prices, citing mills operating at only 50 to 60 per cent capacity. Rising costs, reduced government incentives, and high gas prices up 179 per cent are pushing mills to the brink. Industry leaders warned of factory closures if gas prices remain high and urged the government to support local production.