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    Bangladesh Will Close All Textile Mills Immediately

    2011/8/11 9:15:00 113

    Closure Of Textile Mills In Bangladesh

    Local in Bangladesh spin Factory owners decided that after Eid al Fitr, if the government did not take the leading measures to promote the textile sector to overcome the current situation crisis Situation, will close all factories.


    Textile factory owners say that 50% of their mill's spindles are idle, yarn Of spindle It will be closed after Eid al Fitr.


    The leader of the Textile Mills Association of Bangladesh made five requests to the government at a press conference. They asked for incentives to be raised from 5% to 15% and extended to 2015, with appropriate incentives to encourage the use of local Fabric And yarn, in line with the export regulations of 2009, is one of the sector's protective measures to reduce the bank interest rate of the textile sector to various figures. In addition, all types of import taxes and taxes on polyester, viscose and acrylic fibers were exempted, and the deficit of working capital of spinning and weaving factories was reversed, and the loan did not bear any interest rate.


    "The government's indifference in taking the initiative to rescue the first textile sector out of the current crisis situation forced us to take extreme action to close factories after Eid al Fitr," said Jia Hanji, President of the Textile Mills Association of Bangladesh. Due to the relaxation of origin rules in Europe and the United States, the situation is getting worse and worse due to the lack of natural gas and electricity supply to textile mills. Our units can only use 30% - 35% of the capacity. In addition, textile mills had to purchase cotton from the international market at exorbitant prices from March to April. At present, the market price of cotton is less than half of the purchase price at that time. The high cotton purchase price caused the textile mill's account loss, as a result, they could not continue to operate their factory


    Jahangi also said that India frequently changed its policies according to the demand situation, but Bangladesh failed to do so, which led to unfair competition in the local textile sector. If we can't fight back at India's policies, then we will soon be in trouble. India has provided 25% of its cash outlay to the textile sector at different stages to combat other competition. In addition, they give an additional advantage in using their own machinery. In this case, we can hardly survive.


    Recently, India announced a cash incentive of 7.67% for the export of knitted and woven fabrics and yarns, with effect from April 1, 2011. This measure has dealt us another serious blow.

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