Indian yarn pushes Bangladesh’s textile industry into crisis

Fear of rising unemployment looms

Dhaka (Bangladesh) – Bangladesh’s domestic textile industry is facing a serious crisis due to the growing import of Indian yarn. The influx of low-cost yarn from India has placed the very survival of local spinning mills at risk, raising fears of a large-scale employment crisis in the country.

Pressure on local industries

The share of Indian yarn in Bangladesh’s textile market has been steadily increasing. Since Indian yarn is cheaper than locally produced yarn, garment manufacturers in Bangladesh are increasingly opting for imports from India. As a result, local spinning mills are struggling to sell their output, leading to mounting inventories and significant financial losses.

Threat to employment

The ready-made garment (RMG) sector plays a crucial role in Bangladesh’s economy. If local spinning mills are forced to shut down, millions of workers could lose their jobs. The Bangladesh Textile Mills Association has expressed deep concern over the situation and has urged the government to take steps to protect domestic industries.

India’s competitive edge

India is among the world’s largest producers of cotton and yarn. Easy availability of raw materials and large-scale production enable Indian yarn to remain highly competitive in global markets. Additionally, India’s geographical proximity to Bangladesh keeps transportation costs low, giving Indian exporters a further advantage.

Signs of a trade conflict ?

Amid growing discontent and pressure from local entrepreneurs, the Bangladesh government may consider imposing restrictions on imports of Indian yarn. Reports suggest that banning yarn imports through certain ports is under consideration. If such measures are implemented, they could impact trade relations between the two countries.