New Delhi, Jan 24 (NationPress) The Bangladesh Textile Mills Association (BTMA) has declared an indefinite halt of operations at mills, amidst a conflict regarding duty-free yarn imports that has arisen between textile mill operators and garment exporters. This situation has sent shockwaves through the Readymade Garments (RMG) export sector in Bangladesh, especially with the national election approaching on February 12, as per a recent report.

RMG exports contribute to nearly 85% of Bangladesh's overall export revenues. The livelihoods of over 1 million workers in this industry are now hanging in the balance, leading to potential instability concerning wages and benefits, which could incite labor unrest.

Reports indicate that the Bangladesh Ministry of Commerce's recent decision to levy duties on cotton yarn imports from India and other nations has added to the turbulence within the RMG sector.

Experts caution that widespread closures in textile manufacturing could further exacerbate the economic challenges already facing the country.

Commerce Secretary Mahbubur Rahman informed Dhaka's The Business Standard that the government acknowledges the gravity of the situation and is considering various solutions. 'The textile industry is indeed in distress. Action is required. We are contemplating alternative measures,' he stated.

Textile mill proprietors have warned of factory shutdowns beginning February 1, attributing their decision to the government’s inaction in safeguarding the $23 billion textile sector.

This announcement arises at a particularly critical moment, just under two weeks before the national elections set for February 12.

BTMA President Showkat Aziz Russell commented, 'This is not merely a threat. The sector will inevitably cease operations. We are facing a national crisis.' He criticized the slow policymaking, remarking, 'While India can make decisions in hours, our government struggles for months.'

Russell further noted that any increase in production costs under the open costing method ultimately impacts buyers.

'Should local textile mills fail, garment producers will have no option but to import yarn from India at inflated prices in the future, undermining competitiveness,' he cautioned.

'A cessation of yarn production would disrupt the garment supply chain, while complications in repaying bank loans could lead to a rise in non-performing loans (NPLs), which are already estimated at around 35% during a period when banks are under significant pressure,' the report mentioned.