B Mirror Report : The Bangladesh Textile Mills Association (BTMA) on Thursday announced that all textile mills across the country will remain closed indefinitely from February 1, as the interim government has failed to take effective measures to protect domestic yarn-producing spinning mills.

The announcement was made at an emergency press conference held at the association’s office in Karwan Bazar, Dhaka, on January 22.

BTMA leaders said the decision was taken to press for the immediate enforcement of a commerce ministry decision aimed at safeguarding the local textile industry, particularly the spinning sector, by suspending duty-free yarn imports under the bonded warehouse facility.

Speaking at the press briefing, BTMA President Showkat Aziz Russell said the association had no option but to shut down operations. “We will close the mills regardless of the consequences. We simply do not have the capacity to repay bank loans,” he said.

Russell alleged that despite repeated appeals to various ministries and government agencies, the sector has received no meaningful support. “Every authority is shifting responsibility to another, like a game of passing the pillow,” he remarked.

He further stated that the capital base of the textile industry has eroded by nearly 50 percent, leaving mill owners unable to service their debts. “Even selling off all our assets would not be enough to clear the outstanding loans,” he added.

Senior leaders of the association were also present at the press conference.

The move comes after the Ministry of Commerce on January 12 requested the National Board of Revenue (NBR) to suspend duty-free yarn imports through the bonded warehouse facility in a bid to protect local spinning mills.

However, industry stakeholders warned that such a step could significantly raise production costs for garment and knitwear exporters, potentially increasing import duties to around 37 percent and adding an additional $0.30 to $0.60 per kilogram of yarn.

This has led to growing tensions between textile millers and apparel exporters. Leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) met Commerce Adviser SK Bashir Uddin seeking a review of the proposed move, while BTMA representatives separately held talks with the finance adviser, though no resolution was reached.

Industry experts caution that the ongoing policy deadlock could put Bangladesh’s $28 billion knitwear export sector at risk and upset the delicate balance between local yarn producers and garment manufacturers.