All Textile Mills in Bangladesh to Shut Down Indefinitely from February 1

The Bangladesh Textile Mills Association (BTMA) has announced a nationwide, indefinite closure of all textile mills starting February 1, 2026. The drastic decision comes as a protest against the government's perceived inaction in protecting the local yarn-manufacturing industry from a deepening financial collapse.

BTMA President Shaukat Aziz Russel made the announcement during an emergency press conference held this afternoon at the association's office in Karwan Bazar, Dhaka.

"Capital Depleted, Debt Unpayable": BTMA President
Addressing the media, Shaukat Aziz Russel painted a grim picture of the sector's financial health. He stated that the industry's capital base has shrunk by more than half due to consistent losses, leaving millers unable to repay their bank loans.

"We are not just shutting down; we no longer have the capacity to keep the wheels turning. Even if we were to sell all our assets today, it would not be enough to clear our bank debts," Russell stated. He highlighted that the "pillow-passing" (responsibility shifting) among various government ministries has left the $23 billion industry in the "ICU" without any structural rescue measures.

Primary Reasons for the Shutdown
The BTMA leadership cited several critical factors that have pushed the sector to the brink:

Indian Yarn Dumping: Allegations that Indian yarn is being dumped in the Bangladeshi market at prices 30 cents lower than production costs, leading to a 137% surge in imports.

Energy Crisis: Rising gas and electricity tariffs coupled with inconsistent supply have made local production unsustainable.

Financial Strain: Bank interest rates have jumped from 9% to 16%, while the effective tax rate on the sector has nearly doubled to 27%.

Policy Neglect: Failure of the interim government to implement a dedicated banking window or provide special incentives for the spinning sector.

Impact on the RMG Sector and Economy
The closure of textile mills—the backbone of Bangladesh’s "backward linkage"—poses an existential threat to the Readymade Garment (RMG) industry.

Supply Chain Collapse: If local yarn production stops, garment exporters will become entirely dependent on imports, significantly increasing lead times and costs.

Massive Job Losses: The textile sector directly employs approximately 2 million workers, many of whom now face immediate uncertainty.

Export Decline: Industry leaders warn that this could lead to a domino effect, potentially causing a crash in national export earnings and GDP growth.

The BTMA has demanded immediate government intervention, including a reduction in utility costs and the restoration of duty-free benefits, as a condition for reopening the mills.