Bangladesh’s apparel exporters are increasingly sourcing fabrics and yarn from overseas, raising concerns over domestic textile production, local value addition and the competitiveness of the country’s backward-linkage industries.
Bangladesh’s combined imports of fabrics and yarn increased 12.33% to 221,324 tonnes in September 2026, compared with 197,026 tonnes in August, according to National Board of Revenue (NBR) figures. The imports were valued at approximately $1.08 billion, reflecting growing reliance on foreign intermediate materials among export-oriented garment manufacturers.
Fabric Imports Lead the Increase
Fabric imports rose 19.70% to 115,407 tonnes, valued at approximately $703 million. Woven fabric imports increased 20.02% to 63,174 tonnes, while knitted fabric imports climbed 19.31% to 52,233 tonnes.
Yarn imports increased 5.28% to 105,917 tonnes, worth $374 million. Cotton yarn accounted for 64,120 tonnes, while synthetic filament yarn reached 32,485 tonnes.
In contrast, raw cotton imports fell 13.38% to 107,824 tonnes, suggesting weaker demand for inputs used by domestic spinning mills.
Domestic Mills Lose Business
The shift is also evident in declining supplies from local textile manufacturers. Domestic mills’ reported fabric deliveries to export-oriented garment factories fell 38.67% to 14.69 million metres in September, while yarn supplies declined 22.19% to 25,791 tonnes.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem attributed import growth to the higher prices of locally produced materials.
However, Bangladesh Textile Mills Association (BTMA) President Showkat Aziz Russell warned that increased dependence on imports was weakening domestic mills and reducing the textile industry’s contribution to apparel value addition.
Import Restrictions Intensify Industry Dispute
The government has sought to protect local spinners by tightening bonded-import conditions for 10–30-count cotton yarn. However, changes introduced since September have generated uncertainty over customs clearance, procurement costs and delivery schedules.
Garment exporters argue that restrictions could undermine international competitiveness, while textile manufacturers seek protection against lower-priced imports.
The dispute is particularly significant as Bangladesh approaches its scheduled November 24, 2026, graduation from least-developed-country status, although a proposed extension remains under consideration.
The central challenge is balancing competitive input prices with investment in domestic spinning, weaving and finishing capacity. Future policy decisions and import trends will determine whether Bangladesh strengthens its textile supply chain or becomes increasingly dependent on imported intermediate materials.
