Will commerce ministry step back on yarn duties amid garment exporters' pushback?
The adviser has understood our concerns. He will review all the data and re-evaluate the issue, said Faisal Samad, a BGMEA director.
The commerce ministry may backtrack on a plan to withdraw bonded facilities and impose duties on yarn imports amid a standoff between the government and garment exporters over the issue, industry insiders say.
After industry leaders flagged the potential blow to export competitiveness, officials are signalling a possible rethink, suggesting that the matter may now be examined by independent economists rather than enforced immediately.
This came after a meeting yesterday between top representatives of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) with Commerce Adviser SK Bashir Uddin.
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"The adviser has understood our concerns. He will review all the data and re-evaluate the issue," said Faisal Samad, a BGMEA director.
BKMEA President Mohammad Hatem added, "We are more or less confident that the initiative will not go ahead. The issue will be analysed by three independent economists before a final decision is taken."
The dialogue, however, has not bridged all divides. Textile millers, represented by the Bangladesh Textile Mills Association (BTMA), met separately with the finance adviser without success.
"Despite understanding the situation, they are choosing not to acknowledge it," said BTMA President Showkat Aziz Russell.
Bangladesh imports around $2.4 billion of yarn annually, mostly from India, where incentives allow a cheaper supply than local mills can match. Spinning mill owners have struggled with underused capacity and mounting stockpiles, with nearly 100 mills partially or fully shut down.
Entrepreneurs in the sector – representing investments of about $23 billion – have sought urgent government intervention to survive.
Garment exporters warn that duties could increase knitwear production costs by 8-10%, translating into $2.4 billion in annual extra expenses, threatening the country's $28 billion knitwear export sector. Textile mill owners argue that open-costing agreements with buyers could absorb some of the increase, but exporters contend that higher prices risk lost contracts and market share
