The New Nation - Internet Edition

The government has relaxed conditions on import of yarn from India through Benapole land port for the 100 percent export oriented knitwear industries enjoying bonded warehouse facilities. Some conditions including examination of yarn count and chemical test were imposed on the import in early 2006. Though there was no ban on import of yarn, those conditions delayed the import process. Knitwear exporters now can import yarn against back to back letter of credits and subject to utilisation declaration. Bangladesh Textile Manufacturers' Association (BTMA) strongly opposed the government decision.

Bangladesh knitwear manufacturers were fully depended on imported fabric in the past. But as the sector thrived fast, many backward linkage industries producing yarn, fabric and accessories developed during the last two decades. Those industries produce better quality yarn and fabrics from high quality imported cotton. Some composite units also produce yarn and fabric themselves. The backward linkage industries meet up about 80 percent and 30 percent fabric demand of knit and woven industries respectively. This has not only helped readymade garment industries retain international market but also saved huge foreign exchange needed to import fabrics.

Those have also created employment opportunities. Now, withdrawal of whatever meagre restriction on import of fabric from India were there will throw the local textile industries into tough competition. This will lead to piling up of thousands of tonnes of yarn produced locally and ultimately to the closure of the textile industries. The inferior quality imported yarn will ultimately cause tremendous harm to RMG sector.

This whole thing will have seriously negative impact on the national economy as a whole. This will also create joblessness for the workers.

The present decision of relaxation of yarn import is supposed to be counter-productive in this respect. Therefore, the government should rethink about the decision and revise it to protect the local industries.

Ariful Huq

Dhaka