Bangladesh Garment Manufacturers and Exporters Association (BGMEA) sounds the alarm on the proposed ban of 10-30 count cotton yarn imports via bonded warehouses. Dated January 18, 2026, this letter to the Ministry of Finance highlights dire threats to the RMG powerhouse, which fuels over 80% of national exports and millions of jobs.
Such restrictions won't fix spinning woes—instead, they'll spike raw material shortages, hike costs, and inflate FOB prices amid a buyer-driven market. Exporters face eroded edges against rivals like India, Vietnam; buyers may flee to stable sources, slashing forex inflows. Knitwear mills suffer as grey fabric imports surge, sidelining local capacity and jobs.
India gains pricing leverage on yarn and fabrics, while Bangladesh loses value addition. Sustainable certified cotton flows (95% from India) risk disruption, repelling global brands. With RMG already reeling from demand dips and crises—exports down 14% in six months—a $5B hit looms immediate.
BGMEA urges rethink: prioritize energy, low rates, WTO-aligned incentives for all linkages. Export growth built backward chains; bans reverse that. Ready for talks to safeguard economy.
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