The decision to impose duty on yarn import is extremely ‘disastrous’ and ‘suicidal’ for the garment industry, two major organizations of the country’s garment sector, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). At a joint press conference organized at a five-star hotel in the capital on Monday, the two organizations strongly demanded the cancellation of this unilateral decision, a press release said.
Present at the press conference were BGMEA Acting President Selim Rahman, BKMEA President Mohammad Hatem and Executive President Fazle Shamim Ehsan, BGMEA Senior Vice President Enamul Haque Khan, Vice President Md. Rezwan Selim, Vice President (Finance) Mizanur Rahman, Vice President Md. Shihab Uddoza Chowdhury, Director Mohammad Abdur Rahim, Director Faisal Samad, Director Mohammad Abdus Salam, Director Sumaiya Islam, Director Kazi Mizanur Rahman, Director Mohammad Sohel, former Vice President Shahidul Islam and Chairman of BGMEA Public Relations and Promotion Committee, Masud Kabir.
BGMEA Acting President Selim Rahman read out a written statement at the press conference. He said, “Imposing duty on yarn imports at this critical time of global market recession and domestic energy crisis means knowingly pushing the country’s main export sector to the brink of destruction.”
BKMEA President Mohammad Hatem said, “The garment sector is now in the ICU.” After jute, now the garment industry will be destroyed.’
The joint press conference said that according to international rules, proof of damage to the local industry must be provided before imposing duties on imports, which was not accepted in this case and is a direct violation of the WTO Safeguard Agreement. Garment exporters said that currently, domestic spinning mills are demanding about 40 cents or 46 taka more per kg of yarn than in the international market, which is seriously affecting export capacity.
The press conference also mentioned that the annual export income of $27 billion from the knitwear sector is now at risk due to this decision. If the import route is blocked due to the inability of domestic mills to supply high-value specialized yarn on time, the production schedule will be ruined. The garment sector leaders made it clear that they are not against protecting the domestic industry, but that protection should be provided not by blocking imports but through direct cash assistance, uninterrupted fuel and low-interest loans.
BGMEA and BKMEA leaders have strongly requested the government to immediately withdraw the unreasonable decision to impose duty on yarn imports to protect the country’s economic stability and the employment of millions of people.
