BTMA announces indefinite closure of all textile mills from 1 Feb
“We will shut down no matter what. We do not have the capacity to repay bank loans,” says BTMA President Showkat Aziz Russell.
The Bangladesh Textile Mills Association (BTMA) has announced the indefinite closure of all textile mills across the country from 1 February, citing the interim government's failure to take steps to protect local yarn-producing spinning mills by suspending duty-free yarn imports under the bonded warehouse facility.
The announcement came at a press conference at the association's office in Dhaka's Karwan Bazar this afternoon (22 January).
The association organised the emergency press conference to demand the immediate implementation of a decision taken by the Ministry of Commerce to protect the domestic textile industry and safeguard the survival of the spinning sector.
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Addressing the briefing, BTMA President Showkat Aziz Russell said, "We will shut down no matter what. We do not have the capacity to repay bank loans."
He alleged that despite approaching all relevant ministries and departments, no effective support had been forthcoming.
"Every department is simply passing responsibility to others, like a game of pillow passing," he added.
He said the industry's capital base has shrunk by half, and there is no viable mechanism to repay bank loans. "Even if we sell off all our assets, it will not be possible to clear the debts," he said.
Senior BTMA leaders were also present at the press conference.
The decision to close mills came after the commerce ministry requested the National Board of Revenue on 12 January to suspend duty-free yarn imports under the bonded warehouse facility, a move intended to protect domestic spinning mills.
Industry leaders warned that the measure could sharply increase production costs for garment and knitwear exporters, potentially raising import duties to around 37% and adding $0.30-$0.60 per kilogram of yarn.
This prompted a standoff between textile millers and exporters, with top BGMEA and BKMEA representatives meeting Commerce Adviser SK Bashir Uddin to seek a review, while BTMA leaders separately met the finance adviser without resolution.
The potential policy shift threatens to burden Bangladesh's $28 billion knitwear export sector and disrupt the balance between local yarn producers and garment manufacturers.
