Bangladesh’s Textile Mills Threatened an Indefinite Shutdown. Here’s What Happened Next.

Group 1 - The Bangladesh Textile Mills Association (BTMA) issued an ultimatum regarding the suspension of duty-free yarn exports, threatening indefinite mill closures starting February if domestic yarn production is not safeguarded [1] - BTMA president Showkat Aziz Russell stated that the mills lack the capacity to repay bank loans, indicating severe financial distress within the industry [2] - A standoff has emerged between textile producers and ready-made garment manufacturers, highlighting long-standing tensions between these sectors [2] Group 2 - Export-focused suppliers have relied on lower-cost cotton from India and polyester from China, and imposing import duties on these inputs is viewed as detrimental to the industry [3] - The Bangladeshi spinning industry is experiencing a slowdown due to competitive pricing from Indian yarn, which is 15-20% cheaper, and rising energy costs that have nearly doubled in the last two years [4] - U.S. tariffs on Indian exports have led to an oversupply of Indian cotton at lower prices, further challenging Bangladeshi mills unless they can offer value-added advantages [4] Group 3 - The Bangladesh Garment Manufacturers and Exporters Association and the Bangladesh Knitwear Manufacturers and Exporters Association oppose the withdrawal of bonded yarn imports, fearing a nearly 37% increase in yarn prices, which would add approximately 60 cents per kilogram to raw material costs [5]