The Bangladesh Garment and Buying House Association (BGBA) has demanded the withdrawal of the Ministry of Commerce’s directive to cancel bonded warehouse facilities for importing 10 to 30 count yarn used in export-oriented industries. At the same time, the association has called for initiatives to ensure the safe travel of foreign buyers and to restore their confidence in Bangladesh’s garment industry. These demands were raised at an emergency press conference organized by BGBA to protect the buying house sector.
The press conference was held on Sunday (25 January) at the BGBA office in Uttara, Dhaka.
Speaking at the conference titled “The Country’s Readymade Garment Sector in Crisis: A Fight for Survival,” BGBA President Mofazzal Hossain Pavel said that Bangladesh currently holds the second position globally in garment exports, and buying house entrepreneurs have played an undeniable role in this journey. However, due to the global economic slowdown, internal policy constraints, and abnormally rising production costs, the garment industry is now struggling to survive.
He said that although yarn prices have declined in the international market, yarn prices in Bangladesh continue to rise. Moreover, the Ministry of Commerce’s decision on 12 January to withdraw bonded warehouse facilities for importing 10 to 30 count yarn used in export-oriented industries is pushing the garment sector deeper into crisis, placing it in an uncertain future.
BGBA demanded that instead of withdrawing bonded warehouse facilities for yarn imports, rational steps should be taken based on consultations with all stakeholders involved in the export-oriented garment industry to protect domestic production.
BGBA President also said that uncertainty and lack of security surrounding foreign buyers’ travel to Bangladesh are affecting business investment and export flows. No visible initiatives have been taken to ensure the safety of foreign buyers or to keep production running smoothly. Due to political instability, mob violence, and security concerns, foreign buyers’ home countries have imposed travel advisories restricting visits to Bangladesh.
As a result, many orders for 2026 are being shifted to other countries. In this situation, BGBA has demanded a stable, industry-friendly environment, even during the election period.
Mofazzal Hossain Pavel further said that chaos prevails in the banking sector. Delays in opening letters of credit (LCs) and the lack of necessary loans are causing late payments to suppliers. Consequently, many small and medium-sized factories are shutting down, and supply chain delays are preventing timely delivery of garment products. While entrepreneurs’ costs are increasing, banks are also raising interest rates.
Under these circumstances, the garment industry is facing severe challenges. The press conference also demanded special industrial support in the electricity, gas, and energy sectors, along with new and effective incentives for exporters.
At the conference, newly elected BGBA President Abdul Hamid Pintu said that 10 percent of buying houses in the country have shut down over the past one and a half years. He warned that withdrawing bonded warehouse facilities for yarn imports could increase production costs by up to 20 percent, further endangering both the garment and buying house sectors.
Reiterating the demand to retain bonded warehouse facilities for yarn imports, he said the new government is expected to hold discussions with garment industry stakeholders such as BGMEA, BKMEA, and BGBA, review the problems, and take appropriate measures.
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