Dhaka, Jan 22 (V7N) — The Bangladesh Textile Mills Association (BTMA) has warned that all spinning mills in the country will close from February 1 if the Commerce Ministry’s recommendations are not implemented within seven days. The announcement was made at a press conference held at the BTMA head office on Thursday (January 22) afternoon.

Shawkat Aziz Russell, BTMA president, alleged that neighboring countries are subsidizing their yarn exports by around 50 cents per kilogram, allowing them to sell at significantly lower prices. Meanwhile, due to the bond facility for duty-free yarn imports, domestic mills are left with unsold yarn worth about Tk 12,500 crore. He added that 60 mills have already shut down, while the rest are operating at only 50 percent capacity.

BTMA noted that the Commerce Ministry has recommended withdrawing the bond facility for cotton yarn of 10 to 30 counts, but the National Board of Revenue (NBR) has yet to implement the decision.

The association warned that if spinning mills close amid the current crisis, the ready-made garment (RMG) sector will become entirely dependent on imported yarn, creating a serious risk to Bangladesh’s economy and employment.

END/SMA/AJ