Woven and knitwear garment exporters have urged the government to immediately withdraw its decision to impose duty on yarn imports, warning that the move would hurt apparel exports.

The call was made at a joint press conference organised on Thursday by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) at the Pan Pacific Sonargaon hotel in Dhaka.

The two trade bodies, which represent the country’s largest export-earning sector, reacted to a recent recommendation by the commerce ministry to the National Board of Revenue (NBR) to suspend the duty-free, or bonded, facility for importing 10- to 30-count yarn. Yarn count refers to thickness; a higher count indicates a finer yarn.

Under the bonded warehouse facility, export-oriented industries are allowed to import raw materials without paying duty, provided the finished products are exported.

Exporters said withdrawing the benefit would raise production costs and weaken Bangladesh’s competitiveness in the global apparel market, where buyers remain highly price-sensitive.

BGMEA Acting President Selim Rahman said the government had alternative options to support local textile mills without disrupting the garment sector.

He suggested that cash incentives be provided to spinners to protect the domestic textile industry, rather than suspending duty-free imports. He also called for improvements in gas supply to textile mills so they can operate at full capacity and improve efficiency.

Industry leaders warned that any sudden policy change affecting raw material costs could have serious consequences for exports and employment in the garment sector.