Workers, officials and employees in the local spinning industry have demanded that the decision to withdraw the bonded facility for importing 10–30 count cotton yarn be kept in force. At the same time, exporters have demanded that the facility for importing the raw materials required by them be continued.
The demand was raised at a press conference organized by the Dhaka Reporters Unity (DRU) on Wednesday. Salma Group’s Chief Operating Officer (COO), Ajhar Ali, presented a written statement on behalf of the workers, officials and employees working in the spinning sector.
On September 7, the Ministry of Commerce asked the local yarn-producing industry to withdraw the bonded facility for importing 10–30 count cotton yarn in order to protect the industry. However, it allowed such yarn to be imported against bank guarantees when required by the relevant garment factories. The Ministry of Commerce later suspended this order.
At the press conference, the participants demanded that this decision be retained. According to them, if the facility remains operational, the use of locally produced yarn will increase. This could increase local value addition and reduce foreign-currency expenditure on yarn imports. At the same time, they believe that the bonded facility would reduce opportunities for illegally selling or diverting imported yarn in the local market.
The press conference said that during the 2022–23 fiscal year, the quantity of imported 10–30 count cotton yarn was 216 million kilograms. In the 2024–25 fiscal year, it increased to 460 million kilograms. In other words, imports of this category of yarn increased by approximately 113% within two fiscal years.
There are currently 530 spinning mills in the country. Of these, 117 mills were completely or partially closed between 2019 and 2026 for various reasons. At present, 413 mills are operating either fully or partially.
It was also stated at the press conference that the annual production capacity of the operating mills for only 10–30 count cotton yarn is approximately 1.9 billion kilograms.
The speakers said that if a factory closes, the impact will not be limited to the livelihoods of workers and employees; it will also affect bank investments, suppliers, transportation costs and the overall economy. This concern was highlighted at the press conference.
They further said that they are not seeking any unreasonable protection or special privileges. Rather, they want to ensure fair competition, a stable and sustainable policy, an end to misuse of bonded facilities, and guaranteed import facilities for genuine exporters.
They also demanded that the improvement in gas supply to the industrial sector be maintained, along with increased use and production of recycled and textile products, and an additional 5% incentive for exports.
In the press conference among others attended by Mr. Shahinul Haque, Director of Operations, Mosharraf Group; Abdus Salik, DGM, Utha Spinning; and Mr. Enamul Haque, Executive Director, Bengal NFK Spinning, The entire program was conducted by Mr. Ruhul Amin Ashiq, Executive Director of Getco Group.
