Impacted by India’s cheap cotton yarn, Bangladesh’s spinning industry faces disaster

In recent months, India’s cheap cotton yarn has impacted Bangladesh, causing a large amount of local cotton yarn to be unsaleable in Bangladesh. Spinners have closed down and reduced production. Some plan to develop the downstream garment industry to digest yarn materials. India is a major cotton producer. Coupled with the recent serious depreciation of the rupee, the cotton yarn produced by it is cheaper in the Bangladesh market. Bangladesh does not produce cotton and mainly imports cotton from India for cotton yarn processing, so the cost is higher. Zubeida Textile Company, the largest spinning mill in Bangladesh, has three spinning mills with a total production capacity of 338,000 spindles. One of them has been closed and the other two have reduced their production by 50%. The Bangladeshi industry believes that the best way to deal with this crisis is for the government to take measures to restrict Indian yarn imports, and for spinning mills to switch to apparel manufacturing and other industries.