RMG buying houses term move to scrap bonded facilities for yarn imports 'self-destructive'

Garment buying house entrepreneurs have warned that the commerce ministry's proposal to withdraw bonded warehouse facilities on the import of yarn of 10 to 30 counts could harm the country's readymade garment (RMG) sector and unsettle international buyers.

They described the proposal as "self-destructive" and urged the government to offer alternative support to domestic textile millers instead of withdrawing bonded facilities. 

The concerns were raised at a press conference titled "The Country's Readymade Garment Industry in Crisis: A Struggle for Survival", organised by the Bangladesh Garment Buying House Association (BGBA) at its office in the capital today (25 January).

BGBA President Mohammad Mofazzal Hosen Pabel said the proposed decision had pushed the RMG sector "to the brink of death" and had triggered serious concerns among global buyers.

For several months, the country's textile millers and garment manufacturers have been at odds over duties and restrictions on yarn imports from India and other countries. 

On 12 January, the commerce ministry requested the National Board of Revenue to withdraw bonded warehouse facilities for importing 10-30 count yarn, citing the need to protect domestic spinning mills. 

The request followed appeals from the Bangladesh Textile Mills Association (BTMA) and recommendations from the Bangladesh Trade and Tariff Commission.

However, RMG sector leaders alleged that the commerce ministry's move was one-sided. Several textile and garment sector associations have held press conferences and sent letters to the government strongly opposing the move.

"Several buyers have expressed concern over the ongoing discord between the country's RMG and textile sectors," Pabel said, adding that many had already begun shifting their 2026 orders to competing countries.

He said global buyers and large retailers were increasingly worried about the overall business environment in Bangladesh, including political instability and security concerns.

"Buyers have expressed worries over safety, factory closures and reports of frequent mob violence," the BGBA president said, adding that disputes over yarn imports would further damage confidence.

Pabel also alleged that competitor countries were portraying Bangladesh negatively in global markets and that some buyers had imposed travel restrictions on visits to the country.

Responding to a question, he said any disruption to the RMG sector would ultimately affect buying houses, which act as a bridge between international buyers and local manufacturers.

Opposing the withdrawal of bonded facilities, he urged the government to provide incentives and policy support to make the textile industry more competitive.

"The government should make the spinning sector self-reliant so that RMG manufacturers can buy yarn from domestic sources at prices even 30 cents lower," he added.

He also said the association expected the next elected government to consult all relevant trade bodies on policy decisions affecting the textile and garment sectors, rather than holding discussions with a limited number of organisations.

Joint consultations would help identify core challenges and future prospects and lead to sustainable solutions, he said.

"As spinners are demanding the withdrawal of bonded facilities, it shows they are facing problems, while cutting bonded facilities would affect RMG manufacturers. Only joint dialogue can lead to solutions," he added.

Pabel said every policy decision carried both positive and negative consequences, but argued that the proposed move was taken through an unfair process involving only a few parties.

He warned that while some groups might benefit initially, the decision could prove harmful in the long run, particularly if export orders decline and begin to affect the textile sector as well.