Textile manufacturers in the country asked for strict actions to stop the sale of illegally imported yarn, fabric, and clothing in the local market.
In this regard, the Bangladesh Textile Mills Association (BTMA) on Sunday sent a letter to Abu Hena Muhammad Rahmatul Muneem, chairman of the National Board of Revenue (NBR), signed by its president Mohammad Ali Khokon.
In the letter, BTMA President said that Bangladesh has a viable backward linkage industry in the primary textile sector and the mills are supplying the bulk of export-quality yarns and fabrics to the export-oriented garment sector.
Moreover, it is providing the entire basic needs of the common people of the country as a result of this, both the export earnings have increased and a huge amount of foreign exchange is being saved, which is playing a vital role in keeping the foreign exchange reserves stable.
The letter stated, “We have learned that illegally imported yarns and fabrics have been widely traded in the major textile hubs, particularly Narayanganj, Araihajar, Gausia, Madhabadi, Baburhat, Narsingdi, Tangail, Sirajganj, Belkuchi, and Pabna.”
As a result, the liquidity shortage in the mills is quite apparent due to the enormous increase in the stock of yarn and fabric produced in the nearby mills.
The letter added that the government is losing a significant amount of money as a result, and the mills are progressively deteriorating because of a lack of money.
Even though mills are experiencing a financial problem, he continued, “As Eid-ul-Fitr approaches, we have to pay wages, bonuses, allowances, and other utility bills which will require a huge amount of money.”
Additionally, the global recession in the context of the Ukraine-Russia war, difficulties importing raw materials as a result of the dollar crisis, and decreased purchasing power of consumers, including not receiving fair pricing for finished yarns and fabrics, have all served to exacerbate this dilemma.
Earlier various Bond Commissionerate frequently conducted drives with a view to stopping the sale of illegally marketed yarn but this operation has been suspended for a long time.
In this situation, BTMA urges search raids to stop the sale of yarn and cloth brought illegally into the local market under duty and tax-free facilities or by misdeclaration or by any means at the above hubs.