Withdraw bond facility for 10-30 count yarn imports: textile millers

Textile millers today urged the government to withdraw the bond facility for importing 10-30 count yarn, mainly to protect the domestic spinning sector and prevent the import of undeclared yarn.

Domestic spinning mills are capable of supplying 10-30 count yarn, which is widely used, while cheap imports, sometimes made through misdeclaration, have also been hurting the local spinning sector.

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Showkat Aziz Russell, president of the Bangladesh Textile Mills Association (BTMA), made the call at the first coordination meeting of the textile and garment sector, an initiative of Prime Minister Tarique Rahman to address challenges facing the sector.

The meeting, chaired by Commerce Minister Khandakar Abdul Muktadir, who also heads the committee, was held at the commerce ministry.

Leaders of the BTMA, along with those of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), attended the meeting.

The BTMA president also called for a review of the wastage percentage for knit fabrics, saying some unscrupulous traders sell such fabrics in the local market after importing them under the bond facility. The allowable wastage rate was doubled to 32 percent from 16 percent in 2021.

The BTMA also demanded that a condition requiring 30 percent value addition be imposed on raw material imports by non-bonded companies using bank guarantees.

The trade body also urged the government to review the Import Policy Order 2026-29, keeping the interests of the textile sector in mind.

Textile and garment sector leaders also urged the government to increase the Export Development Fund and fix the interest rate at 2 percent for loans under the fund.

They also demanded an adequate supply of energy to factories so that they do not have to remain idle.

After the meeting, BGMEA President Mahmud Hasan Khan said the association had already reached a consensus with the BTMA on almost all the issues, with only a few remaining unresolved.

He said some of those issues could be resolved through discussions.

BKMEA President Mohammad Hatem also urged the government to revise the conditions for cash incentives for the use of locally produced yarn in export-oriented garment items.

Md Shehab Udduza Chowdhury, vice-president of the BGMEA, said many factories had been unable to avail themselves of loans under the government-sponsored stimulus package because of stringent terms and conditions.

Md Mostaqur Rahman, governor of Bangladesh Bank; Md Khairuzzaman Mozumder, secretary to the finance ministry; and Ahsan Habib, chairman of the National Board of Revenue, also spoke at the meeting.