Cheap, fast and reliable, Indian yarn, many really feel, contributed considerably in turning Bangladesh right into a sourcing hub for the world’s greatest trend manufacturers. But what as soon as regarded like a win-win association is now threatening to unravel and at the coronary heart of the present storm is a proposal to slap a ** per cent safeguard duty on yarn imports from India, ostensibly to guard Bangladesh’s home spinning mills, which appear to has snowballed into a serious bone of competition between the stakeholders, if latest media stories are to be believed, which claimed the garment producers and the textile mill house owners took a opposite place on the situation.
Spinning mill house owners argue that they’re being squeezed to the wall by Indian rivals who, they declare, get pleasure from beneficiant authorities incentives at dwelling and subsequently export yarn into Bangladesh at costs native producers merely can’t match. The end result, they are saying, is declining gross sales, mounting losses and, in some instances, shuttered mills. From their perspective, the safeguard duty isn’t protectionism however survival. Without some type of barrier, they argue, Bangladesh dangers hollowing out a key phase of its industrial base.