The Bangladesh Garment Buying House Association (BGBA) expresses deep concern over the recent decision by the Ministry of Commerce to request the National Board of Revenue (NBR) to withdraw bonded warehouse facilities on imported yarn.
BGBA believes that this move could have a serious negative impact on Bangladesh’s ready-made garment (RMG) sector, as it is likely to increase yarn prices, raise overall production costs, and significantly weaken the industry’s competitiveness in the global market. At a time when the apparel sector is already facing rising costs, declining global demand, and intense competition from regional rivals, such a policy change could further threaten the sustainability of exports.
Higher yarn prices will directly affect manufacturing efficiency and profitability, making it increasingly difficult for Bangladeshi garment exporters to compete in price-sensitive international markets. If not carefully reconsidered, this decision could place the future of the country’s largest export sector at risk.
In this context, BGBA President Md. Mofazzal Hosen Pabel has expressed strong hope that the government will review the matter in consultation with key national stakeholders, successful business leaders, and industry representatives before finalizing any policy decisions. BGBA emphasizes that inclusive dialogue and comprehensive policy assessment are essential to protect the long-term interests of the RMG and buying house sectors.
BGBA further believes that the situation can be addressed through strategic support and incentives for the domestic yarn and textile industry. With proper policy backing, financial assistance, and industry-focused incentives, local yarn production can be strengthened, reducing dependency on imports while ensuring stable and competitive pricing.
BGBA urges policymakers to adopt a balanced and industry-friendly approach that safeguards both the domestic textile sector and the export-oriented garment industry. The Association remains committed to constructive engagement with the government to ensure sustainable growth, export stability, and long-term competitiveness of Bangladesh’s RMG and Buying House ecosystem.
