The backbone of Bangladesh’s economy is trembling under the weight of a historic ultimatum. In a move that sent shockwaves through the global fashion industry, the Bangladesh Textile Mills Association (BTMA) recently threatened an indefinite nationwide shutdown of all spinning mills. This drastic measure highlights a deepening fracture between local textile producers and ready-made garment (RMG) exporters, occurring at a moment of extreme economic and political sensitivity for the South Asian nation.

At the heart of the conflict is a desperate plea for protectionism. Local millers are drowning under the pressure of "cheap yarn dumping" from India, compounded by domestic gas shortages and skyrocketing energy costs that have nearly doubled in two years. Showkat Aziz Russell, President of the BTMA, painted a grim financial picture during a press conference in Dhaka: "We do not have the capacity to repay bank loans. Even if we sell off all our assets, it will not be possible to clear the debts." The millers argue that without suspending duty-free yarn imports under the bonded warehouse facility, the domestic industry simply cannot survive the 15-20% price advantage held by Indian competitors.

However, for garment exporters represented by the BGMEA and BKMEA, removing duty-free access to imported yarn would be "industrial suicide." With Bangladesh preparing to graduate from the United Nations’ Least Developed Country (LDC) status this year, exporters are already fighting to remain competitive. They argue that forcing them to buy more expensive local yarn would hike raw material costs by nearly 37%, or roughly 60 cents per kilogram—a margin that could drive global brands straight into the arms of competitors like Vietnam. "As buyers, we are free to buy anywhere; there should not be any restrictions," noted Faisal Samad, a member of the BGMEA board of directors.

The timing of this standoff could not be worse. The country is currently under the caretaker leadership of Muhammad Yunus, with a general election looming on February 12. This political transition has left major policy decisions—such as new duties or incentives—in a state of limbo. Md. Rafiqul Islam Rana, an assistant professor at the University of South Carolina, warns that this is a "warning signal" for the entire supply chain. If the spinning sector collapses, Bangladesh risks becoming permanently dependent on imports, losing the vertical integration that once made it a manufacturing powerhouse.

While a temporary "suspension" of the shutdown was reached following government mediation, the détente is fragile. The industry is now looking toward a high-stakes meeting at the Ministry of Finance on February 3. For now, the looms remain running, but the BTMA has made it clear: if the government fails to provide urgent short-term support, they reserve the right to pull the plug, potentially causing irreparable damage to the nation’s $100 billion apparel legacy.