Govt moves to halt yarn imports through land ports

Ministry officials stated that the decision follows a request from textile millers, who have long argued that yarn imports through land ports undermine local industry. Instead, they proposed that yarn, a key raw material for the ready-made garment (RMG) industry, should be imported only through seaports.

Apparel exporters have expressed concerns that restricting yarn imports through land ports could negatively impact small and medium-sized factories that rely on them for easier and more cost-effective access to raw materials. “The sudden ban will put additional pressure on small factories, particularly those in border areas, which depend on land ports for quick and flexible imports. This could lead to financial distress,” said a senior official from the Bangladesh Garment Manufacturers and Exporters Association.

The Bangladesh Textile Mills Association (BTMA), representing spinning and textile mill owners, made the request for the ban in a letter to Finance Adviser Salehuddin Ahmed…In its letter, BTMA warned that allowing continued yarn imports through land ports would cause irreparable damage to the country’s textile sector, increasing reliance on imported yarn and leading to higher import costs and unemployment. Meanwhile, industry leaders warn that the move could disrupt the supply chain, increase production costs, and affect Bangladesh’s competitiveness in the global apparel market.

Larger factories can source materials through seaports or local suppliers, but smaller manufacturers often lack these alternatives.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) BKMEA Executive President Fazlee Shamim Ehsan said, “While we understand the government’s concerns, a complete ban may not be the best approach. Instead, improving monitoring and customs procedures at land ports would be a more effective solution.” Exporters and industry leaders have urged the government to reconsider the decision, suggesting phased implementation or exemptions for smaller factories to mitigate the impact…The BTMA letter highlighted the risks of yarn imports, noting that land ports such as Benapole, Bhomra, Sona Masjid, and Banglabandha lack proper infrastructure, yarn count measuring equipment, skilled manpower, and effective oversight.

As a result, import and export trade is not being efficiently managed.

Additionally, textile mills face unfair competition due to the marketing of unauthorised yarn, often imported through land ports with false customs declarations.  This practice not only harms local industries but also results in significant revenue losses for the government. The letter further stated that the policy permitting partial shipments has been widely misused, allowing multiple imports under the same letter of credit beyond approved limits.

BTMA suggested that shifting yarn imports to seaports would help protect the domestic textile sector and preserve valuable foreign exchange. Seaports, they argued, have superior infrastructure, including high-quality scanners and yarn count measuring machines, and typically process imports within 13 to 15 days. During a meeting at the Ministry of Commerce yesterday (24 March), its secretary, Mahbubur Rahman, requested BTMA to provide supporting documents regarding allegations of dumping practices by Indian exporters.He noted that India has imposed anti-dumping duties on several goods from different countries, including Bangladesh, and assured that if the claim is substantiated, the government will take necessary action. BKMEA Executive President Fazlee Shamim Ehsan echoed the proposal for imposing anti-dumping duties, advocating for stronger regulatory measures to ensure fair trade practices.