Local spinning industry under pressure: Gas price hike, Indian yarn imports blamed. Experts urge government policy reform at IEB discussion
The country’s spinning sector a vital component of Bangladesh’s textile value chain is facing severe challenges due to rising gas prices, policy loopholes, and the uncontrolled entry of Indian yarn into local markets. Speakers at a discussion on Saturday warned that without immediate policy support, the sector could face an existential crisis.
The discussion, titled “Current Challenges and Possible Solutions for the Spinning Sector,” was organized by the Textile Engineering Division of the Institution of Engineers, Bangladesh (IEB), at the IEB headquarters in Ramna, Dhaka on Saturday (25 October).
The event was chaired by Engr. Mahiuddin Ahmed Selim, chairman of the division, while Engr. Khan Manjur Morshed, acting president of IEB, attended as the chief guest.
“The key problems of our spinning sector are high gas prices and the growing dominance of Indian yarn,” said Engr. Morshed. “While spinning mill owners want restrictions on Indian yarn imports, garment manufacturers prefer having them for cost efficiency. A collective discussion involving all stakeholders is necessary to find a balanced solution,” he added.
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Presenting the keynote paper, Engr. Md. Abul Kalam Azad, director of Armada Spinning Mills Ltd., said, “Although Bangladesh is globally seen as a major textile exporter, we are not among the top 15 suppliers to the European market. Unfair trade practices, including duty-free yarn imports from India, are severely hurting our industry. The government must intervene to stop dumping practices that threaten local spinners.”
Engr. Nasiruddin Mia, director of One Composite Ltd., said the industry is facing unsustainable production costs. “We are selling a shirt for $1.20 when our production cost is $1.55. This is not viable. The government should reconsider policy measures and reintroduce the 25 percent incentive for spinning mills,” he said.
Masco Group’s executive director, Engr. Mahbub Milton, said, “Competition will always exist, but we must focus on efficiency. Reducing utility and transportation costs should be a top priority.”
Former executive director of Akij Group, Engr. Jamil Tipu, traced the industry’s struggles to historical mismanagement. “After independence, state-run spinning mills failed due to inefficiency. Now, Indian yarn dumping is doing similar damage. With gas prices soaring, we must explore renewable options such as solar power,” he said.
Engr. Enamul Haque, director of Bengal NFK Ltd., said high bank interest rates are further burdening mill owners. “Interest rates have increased from around 10 to over 13 percent. If loans were disbursed before factory operations begin, production costs could be reduced significantly,” he noted.
Engr. Ahsanul Rasel, chairman of Rah Spinning Mills Ltd., said, “Gas and power shortages are our biggest hurdles. Power cuts during production cause massive wastage. If the government ensures utility stability, costs will come down naturally.”
Afzal Hossain, chairman of Lablu-Babul Composite Mills Ltd., said, “We invested heavily in backward linkage industries to strengthen the textile chain, but the unrestricted entry of foreign yarns is putting our investments at risk. Immediate government intervention is needed.”
Mosharraf Hossain, chairman of Mosharraf Group, remarked, “Teachers build the nation, but engineers keep its economy running. Gas price hikes were made despite our warnings, and now the industry is suffering. When India lowers yarn prices, our spinning mills stop running.”
Other speakers included Engr. Md. Azhar Ali, CEO of Salma Group, and Engr. Ehsanul Karim Kayser, convener of ITET.
Distinguished guests at the event included Dr. Julhas Uddin, Vice Chancellor of Bangladesh University of Textiles (BUTEX); Dr. Ayub Nabi Khan, Vice Chancellor (Acting) of BGMEA University of Fashion & Technology (BUFT); Engr. Sheikh Al Amin and Engr. Niaz Uddin Bhuiyan, IEB Vice Presidents ; Engr. Sabbir Ahmed Osmani, IEB Honorary Assistant General Secretary ( Human Resources Development); and Engr. A.T.M. Samsuddin Khan, President of the Textile Engineers Forum, among others.
The vote of thanks was delivered by Engr. Md. Saidur Rahman, Vice Chairman of the Textile Engineering Division, while the session was conducted by Engr. Sumayel Md. Mallik.
The growing concern over rising gas prices and Indian yarn imports really highlights how fragile the spinning sector has become. Policy support and fair trade enforcement are urgently needed- how soon do you think reforms might come?