Bangladesh’s two leading garment associations, BGMEA and BKMEA, have demanded the government cancel its initiative to withdraw the bonded warehouse facility for importing 10–30 count cotton yarn. The Ministry of Commerce recently recommended ending this benefit to reduce yarn imports from India, citing misuse of the facility. At a joint press conference in Dhaka’s Sonargaon Hotel, industry leaders warned that removing the facility would raise raw material costs, reduce export competitiveness, and threaten the apparel sector’s stability.

BGMEA acting president Selim Rahman said the decision was taken unilaterally despite ongoing discussions with the Tariff Commission. He argued that imposing duties amid global market slowdown, geopolitical tensions, and domestic energy shortages would further strain the sector. The associations noted that apparel exports fell 2.63 percent in July–December of fiscal year 2025–26 compared to the previous year, with a 14.23 percent drop in December alone.

The Commerce Ministry, however, justified its proposal by citing protection of local textile mills, which are operating at 60 percent capacity and facing losses. It warned that continued bonded imports could make the knitwear sector import-dependent, increasing lead times and reducing foreign exchange reserves.