TCF POST Report
DHAKA — Bangladesh’s primary textile manufacturers have formally opposed recent government policy shifts, warning that a blanket simplification of raw material imports for the export-oriented apparel sector could cripple the domestic industry.
At a press conference on Saturday, leaders of the Bangladesh Textile Mills Association (BTMA) strongly urged the government to retain the existing 30 percent local value-addition requirement, which is slated for withdrawal under the proposed national budget for the fiscal year FY2026-27.
BTMA President Showkot Aziz Russell stated that maintaining the 30 percent threshold is critical to sustaining domestic yarn and fabric manufacturing while curbing irregularities in bonded warehouses. Removing this obligation, he warned, would trigger a massive rise in the abuse of bond facilities and fuel unfair market compehetition.
Leaders of Bangladeshi spinners and fabrics manufacturers categorically warned that easing value addition obligation will deactivate apparel exporters from higher value addition and consequently Bangladesh will face problems after ending her LDC market access. He pointed out that Bangladesh’s Post LDC exports will need proof on “double transformation” (converting yarn to fabric, and fabric to garment locally) and local value-addition threshold up to 40% to 50%.
In addition to the import policy, the BTMA urged the government to scrap a proposed 5 percent import duty on polyester staple fiber (PSF), the primary raw material used to produce man-made fiber (MMF) yarn and fabrics.
According to the association, MMF accounts for more than two-thirds of global apparel demand, whereas Bangladesh’s apparel exports remain heavily reliant on cotton. The BTMA noted that imposing a duty on PSF would keep non-cotton yarn production costs high, ultimately hindering the country’s necessary diversification into the non-cotton sector.
