Textile millers yesterday urged the government to stop the import of yarn from India through land ports as the domestic yarn sector is struggling to survive due to significant quantities of the fibre being smuggled through such establishments.

Imports from India may continue through seaports, as they are equipped with testing facilities and there is little chance of yarn being smuggled, Showkat Aziz Russell, president of the Bangladesh Textile Mills Association (BTMA), said at a press conference at the Pan Pacific Sonargaon Dhaka in the capital yesterday.

Currently, yarn imports from India are allowed through seaports and four land ports, namely Benapole, Sonamasjid, Bhomra, and Banglabandha. The government allowed the import of yarn through these ports in January 2023 to meet the sudden rise in demand for the fibre after the Covid-19 pandemic.

However, the huge volume of imports has become a threat to the domestic spinning sector, where around $15 billion has been invested, with yarn imports surging 40 percent to $2.7 billion last year.

Currently, yarn imports from India are allowed through seaports and four land ports

India accounted for over 95 percent of those imports thanks to its competitive prices, with Indian yarn costing 25 to 30 cents less per kilogramme than Bangladeshi yarn.

However, Russell said that large quantities of yarn are also brought in through illegal channels, as the land ports are ill-equipped to curb smuggling.

For instance, traders open letters of credit (LCs) to import two tonnes of yarn but eventually import 10 tonnes through five trucks, capitalising on the weak oversight at land ports, the BTMA president said.

Alongside this, challenges such as a loss of working capital due to the depreciation of the local currency against the US dollar, inadequate gas supplies, and lower investment inflow due to political uncertainty have plunged the domestic yarn sector into crisis.

Russell said that when millers made a similar request in the past, former finance minister M Saifur Rahman stopped the import of yarn through land ports. But this government has not responded to their application seeking to stop yarn imports through land ports so far, he added.

Many yarn mills are running at half their capacity, while some have fully closed due to the gas and US dollar crisis, he said, adding that as imports of yarn from India continue to grow over the next three to four months, Bangladesh stands to lose more jobs and value addition.

"We are losing our competitive edge because of smuggled yarn, the hike in gas prices, and the depreciation of the local currency against the US dollar."

Russell demanded that the government incorporate representatives from the BTMA, Bangladesh Garment Manufacturers and Exporters Association, and Bangladesh Knitwear Manufacturers and Exporters Association on the board of directors of the state-owned gas transmission and distribution company Titas and Bangladesh Petroleum Corporation.

This would ensure that unwanted decisions by the government do not affect the country's economic lifeline: the textile and garment sectors.

At the press conference, the BTMA president also announced that a four-day exhibition of textile and garment machinery is set to begin in Dhaka.

The 19th edition of the Dhaka International Textile & Garment Machinery Exhibition (DTG) will commence on 20 February at the International Convention City Bashundhara in Dhaka. It will conclude on 23 February.

The country's largest textile machinery exhibition will feature 1,600 stalls and over 1,100 top brands from 33 countries, highlighting innovations in textile technology. It will focus on advancements in textile machinery, fabric production, dyeing technology, and accessories.

Leading enterprises from China, Germany, India, Italy, Japan, South Korea, and Turkey will participate.

The BTMA, in collaboration with the Hong Kong-based Yorkers Trade & Marketing Service Co Ltd, has been organising the DTG since 2004.