The flow of Chinese yarn and finished fabric through the Bangladesh route is giving a difficult time to the textile industries at home, comprising primarily of the Micro, Small and Medium Enterprises (MSMEs), Punjab Pradesh Beopar Mandal said.
Punjab Pradesh Beopar Mandal president PL Seth raised the issue of Chinese imports is exploiting and entering the market at a cheap price by routing its material through Bangladesh.
“Since Bangladesh is exempted from paying any duty under the SAARC agreement, Chinese yarn and finished fabric are able to enter our markets through Bangladesh”, Seth said.
Along with the local textile industry, local dress material industry, as well as printing industry, is at stake due to the unfavorable competition, he added. Industrial areas of Ludhiana in Punjab, as well as Bhilwara in Rajasthan, houses a number of textile units making different kinds of fabrics including suiting, shirting, blazer, and blankets.
With the market condition moving from bad to worse, these units, as well as the large share of the population that finds employment in these units, are nearing a vulnerable stage, Seth said.