Bangladesh’s primary textile industry is facing a severe crisis that could threaten the country’s export-driven garment sector unless urgent government action is taken, the Bangladesh Textile Mills Association (BTMA) has warned.
In a statement signed by BTMA President Showkat Aziz Russell, the association said spinning and weaving mills are struggling with soaring productioncosts, persistent energy shortages and mounting financial pressures, leaving many manufacturers unable to operate at full capacity.
The textile industry supplies yarn and fabrics to Bangladesh’s ready-made garment (RMG) sector, the country’s largest export industry and a key supplier to major UK and European fashion brands.
BTMA said the industry is being squeezed by a combination of rising raw material and utility costs, unreliable gas and electricity supplies, high bank lending rates, difficulties in opening letters of credit (LCs) for imports and increasing competition from imported textile products.
The association warned that many mills are operating below capacity, while others have been forced to suspend production, putting thousands of jobs at risk and discouraging new investment.
It called on the government to take immediate measures to stabilise the sector, including ensuring uninterrupted gas and electricity supplies, improving access to affordable finance and working capital, increasing export incentives, simplifying loan restructuring procedures and introducing a fast-track mechanism to resolve regulatory and administrative bottlenecks.
BTMA also urged policymakers to adopt measures to protect domestic textile manufacturers from what it described as unfair competition from imports.
The association said the primary textile sector is the backbone of Bangladesh’s garment supply chain, supporting millions of jobs and generating significant export earnings. It warned that failure to address the industry’s mounting challenges could weaken Bangladesh’s position in the highly competitive global apparel market.
The statement comes as Bangladesh’s textile and garment manufacturers continue to face pressure from higher production costs, tighter financing conditions and increasing competition at a time when global demand remains uncertain.