Bangladesh Textile Mills Seek Restrictions on Indian Yarn Imports Amid Industry Crisis
Bangladesh’s textile industry is facing growing pressure over cheaper yarn imports from India. Local spinning mill owners say large quantities of imported yarn have weakened demand for domestic products, leaving mills with substantial unsold stocks.
The Bangladesh Textile Mills Association (BTMA) has warned that spinning units could shut down if the government does not withdraw duty-free import facilities for certain yarn products. Industry representatives have cited unsold stocks worth around Tk 12,000 crore and warned that factory closures could put many jobs at risk.
The dispute comes as India and the European Union move forward with a free trade agreement. Negotiations concluded in January 2026, but the agreement has not yet entered into force. Once implemented, it could increase competition for Bangladesh’s garment exporters in the European market.
Bangladesh exported $38.48 billion worth of ready-made garments in 2024, including $19.37 billion to the European Union. However, the impact of the future India-EU agreement will depend on its final implementation and the competitiveness of both countries’ industries.
The yarn dispute highlights tensions between Bangladesh’s domestic textile producers and garment exporters, who depend on affordable raw materials.
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