Bangladesh’s RMG sector in ICU for a year: BKMEA chief

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), has said the country’s garment industry has been in a critical condition for the past year and urgently needs government policy support to avoid further erosion of its global competitiveness.

He made the remarks at an emergency press conference jointly organised by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and BKMEA at a hotel in the capital on Monday, January 19.

“The textile mill owners say they are in the ICU, and for the past year we have been saying the same about the garments sector,” Hatem said. “Taking the industry out of this situation requires government policy support, but we are not seeing that support.”

The press conference, titled ‘The decision to impose duties on yarn imports is a threat to the apparel industry’, followed reports that the government has recommended withdrawing bonded warehouse facilities for certain yarn imports.

Reading out a written statement, BGMEA Acting President Selim Rahman warned that imposing duties on yarn imports would threaten the stability of the readymade garment sector, the country’s largest export-earning industry.

Hatem also expressed concern over the recently enacted labour law, saying it could have serious implications for the industry if not reviewed. “This law alone has the potential to significantly damage the apparel sector,” he said.

On the proposed withdrawal of bonded warehouse facilities, Hatem said local spinning mills have stopped issuing pro forma invoices since news of the recommendation emerged and have raised yarn prices. He questioned the rationale behind higher production costs, noting that global investment trends in spinning mills do not support such increases.

Industry leaders also called for closer scrutiny of pricing practices by international buyers. Hatem said low prices offered by global brands were undermining the sector’s competitiveness and urged stakeholders, including the European Union, to ensure fair and ethical pricing.

Meanwhile, BGMEA and BKMEA jointly demanded the immediate withdrawal of the recommendation to revoke bonded warehouse facilities for the import of 10–30 count yarn.

In the written statement, Rahman said imposing duties on yarn imports would hurt economic stability and weaken the industry’s ability to compete globally. He added that the move violates Articles 3 and 4 of the World Trade Organization’s Safeguard Agreement, which require a transparent and impartial investigation to establish serious injury to domestic industries before imposing protective measures.

“No such investigation has been conducted,” he said, warning that the decision could have severe consequences for the apparel sector and the broader economy.

EHT/MHK