Bangladesh’s cotton spinning industry, a core pillar of the country’s apparel supply chain, is facing one of its toughest periods in recent memory. Rising production costs, heavy dependence on imported raw materials, policy inconsistencies and mounting global competition have forced many mills to halt operations. Industry insiders say the crisis is deepening fast and requires immediate government intervention.
The warning came at an urgent press conference held on Thursday at the National Press Club, where representatives from several leading spinning mills called for policy support and coordinated action to save the sector.
The press conference was attended by Engineer Azhar Ali, COO of Salma Group; Engineer ABM Sirajul Islam, Director of Jamuna Group; Engineer Shahinul Haque, Director (Operations) at Mosharaf Composite; Engineer Shantimoy Dutta, Advisor at Ahmed Group; Engineer Abul Kalam Azad, Director of Armada Group; and Md Ruhul Amin, Executive Director of Greentex Spinning.
Speakers said the cotton-based backward linkage industry is under severe stress, and the impact extends far beyond spinning mills. As the backbone of the ready-made garment sector, spinning mills are essential to Bangladesh’s export engine. But the combination of soaring gas and electricity costs, VAT and tariff disparities, global price competition and barriers in raw material imports has put the industry in survival mode.
According to mill representatives, nearly 40 percent of spinning mills have already shut down. This has left more than 100,000 workers, staff and officials without work. The mills that remain operational are running at half capacity, putting the entire backward linkage ecosystem at risk.
“If this situation continues, one of the country’s key export contributors will face serious long-term damage,” they said.
Industry leaders stressed that stabilising the spinning sector is critical to protecting Bangladesh’s apparel industry. They urged the government to take swift and practical measures, noting that with the right support, the sector can recover.
They expressed hope that the relevant ministries, Bangladesh Bank and policymakers will act quickly and implement effective steps to safeguard one of the nation’s largest export-driven industries.