Workers, officers and employees from the country’s spinning mills have sounded the alarm over what they describe as a deepening crisis in Bangladesh’s textile and garment industry, triggered by “flawed government policies” and rising production costs.
At a press conference held on Thursday at the National Press Club, industry representatives said 35 spinning mills have already shut down over the past two years, leaving nearly one lakh workers unemployed and struggling to survive.
They warned that without immediate intervention, the sector could face a complete breakdown.
Those still in operation are running at just 40 percent capacity due to soaring expenses and shrinking liquidity.
The briefing was addressed by Engineer Azhar Ali, Chief Operating Officer of Salma Group, who read out a written statement on behalf of spinning-mill workers, officers and employees.
He said the sector has been battered by multiple shocks—COVID-19 disruptions, the Russia-Ukraine war, a severe dollar shortage, and repeated increases in fuel and energy prices—all of which have pushed production costs beyond sustainable levels.
“Forty percent of factories have already stopped production. The remaining mills are on the brink of closure. If action is not taken now, the textile sector cannot be saved,” he said.
Azhar Ali presented seven urgent demands, including a 10 percent cash incentive for using domestic yarn, a 30 percent waiver on gas and electricity bills, imposition of anti-dumping or safeguard duties on imported yarn, restoration of the EDF fund, mandatory sourcing of 70 percent of raw materials for garment exports from local producers, and an additional 5 percent incentive for recycled products.
In response to reporters’ questions, Engineer Mohammad Shahinul Haque said spinning mills once received a 25 percent incentive, which supported the growth of Bangladesh’s textile industry. “The reduction of incentives to just 1.5 percent by the present government was the final blow,” he said. “At the same time, India increased its export incentive on yarn to 11 percent, allowing cheaper Indian yarn to flood the Bangladeshi market.”
He added that Bangladeshi mills often wait up to a year to receive promised incentives, while Indian producers get theirs within three days. “Energy price hikes have also increased yarn production costs. If mills cannot recover their production expenses, most will not survive beyond the next six to twelve months,” he warned.
Engineer Mahiuddin Ahmed Selim, Chairman of the Garments Division of the Institution of Engineers, Bangladesh (IEB), said the collapse of spinning mills would trigger a chain reaction of job losses and economic disruption. “If spinning mills fall, the consequences for workers will be catastrophic. Decisions must be taken immediately, not after six months,” he said.
Engineer Enayet Hossain, Member Secretary of the Institution of Textile Engineers and Technologists (ITET), said Bangladesh’s economy is at risk, as more than 63 sectors depend directly on the textile industry. “If workers lose jobs on a large scale, social instability will follow,” he said.
Khorshed, Managing Director of Badsha Mia Textiles, said local garment factories prefer to use local yarn, but often buy imported products due to buyer pressure or short-term pricing advantages. He urged strict policy measures to protect domestic yarn producers.
Industry leaders from Jamuna Group, Ahmed Group, Armada Group, GreenTex Spinning and others attended the press conference and echoed the call for swift, targeted government support to prevent further factory closures and job losses.