Textile millers in Bangladesh for banning yarn import thru land ports
The country’s textile sector businesses have requested finance adviser Salehuddin Ahmed to impose a ban on yarn imports using the customs houses of all land ports in the interest of the country’s textile sector.
Instead of land ports, they have suggested importing yarn through sea ports.
The letter said that if urgent steps were not taken to ban yarn imports using land ports, the country’s textile sector factories would face irreparable losses, making it impossible for them to conduct business on a competitive market.
Moreover, import dependence on foreign yarn will increase along with a surge in import costs, which will also lead to a hike in unemployment.
The letter also stated that the country’s industry, economy and trade were severely damaged as a result of the post-Covid and Russia-Ukraine wars. The textile sector faced problems due to various reasons, including a hike in gas and electricity prices, dollar crisis, abnormal interest rates, a reduction in cash incentives against exports on the pretext of fulfilling conditions of LDC graduation and the depreciation of the taka.
In the meantime, yarn and fabrics are coming to the local market at dumping prices from India through various land ports using customs houses. As a result, the domestic textile industry has faced new challenges.
The letter stated that since there was permission to import important raw materials like yarn and partial shipment permission, the domestic textile industry, especially the spinning mills, was being severely affected.
Moreover, textile mills are facing unfair competition due to the widespread marketing of unauthorised yarn through false declarations through customs houses when importing yarn through land ports. As a result, the government is being deprived of fair revenue.
Since the decision to allow partial shipments in the import of yarn is in place, this opportunity is being misused and more yarn is being imported under the same LC than is approved multiple times.
In this situation, the letter suggested that to protect the legitimate interests of the domestic textile sector, it was necessary to stop using the customs houses of all land ports and take necessary measures to import yarn only through sea ports.
The letter also said that this would save the country’s valuable foreign exchange.
