Bonded warehouse fabrics have been getting duty free facilities which are available in the local market and which are seriously taking a toll on the local textile industry, industry insiders have said.They said imported yarn, cloth, cotton and other materials which come under warehouse facilities are now available in the local market. As a consequence, local textile mills are not getting actual prices for their yarn and cloth.
Leading figures of the textile industry voiced their worries at a meeting with Salman F Rahman, Private Industry and Investment Adviser to the Prime Minister, at a program organized by the Bangladesh Textile Mills Association (BTMA) at his Gulshan office.
Mohammad Ali Khokon, President of BTMA, said sales of locally manufactured yarn and cloth sales have fallen drastically. Due to the presence of bonded warehouse fabrics in the local markets, almost 100,000 looms have had to be closed in Narsingdi, Madhabdi, Baburhat, Rupganj, Araihazar, Pabna and Sirajganj. At present, more than 50 to 60 percent looms are out of production.
He said dyeing mills have reduced their production capacity by 40 percent owing to the inability of the weaving mills to utilize their production capacity.Khokon noted that due to the prevailing situation, it has become difficult for mill owners to make regular installment-wise repayments of their bank loans. Besides, most of the mills are operating by paying high interests on their bank loans.
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