Bangladesh’s domestic textile industry, with investments worth about $25 billion, is facing severe pressure due to a surge in low-priced yarn and fabric imports from India. The Bangladesh Textile Mills Association (BTMA) reported that since 2022, yarn imports from India have risen sharply—from $429 million in 2022 to $2.28 billion in 2024—now accounting for 95 percent of total yarn imports. Despite a government ban on land-route imports in August 2024, Indian exporters have continued shipments by sea at dumping prices, supported by export subsidies of 3.88 percent per kilogram.

BTMA and local mill owners warn that aggressive Indian pricing has forced many domestic mills to shut down, with over 30 closures in three years. The Ministry of Commerce has proposed ending bonded warehouse facilities for certain yarns to protect local spinners, while garment exporters’ associations BGMEA and BKMEA oppose the move, citing higher production costs and reduced export competitiveness. Industry leaders are urging policy support, lower bank interest rates, and stronger oversight at land ports to prevent further losses.

The ongoing dispute underscores tensions between protecting domestic textile producers and maintaining competitiveness in Bangladesh’s export-oriented garment sector.