Mill owners in Bangladesh have huge stockpiles of yarn. This is mainly due to a decline in demand. So they want a halt on yarn imports, saying this would open a way to sell the stockpiled yarn and save them huge losses.

However, entrepreneurs in the garment sector, the main buyers of yarn, say that if there is an opportunity to import yarn at a cheap rate, it should not be stopped. They say traders will have a monopoly business if the government takes action to discourage yarn imports. But the garment industry is willing to buy yarn from the mills if the price is not much more than the price of imported yarn.

Bangladesh exports yarns and fabrics. Spinners and weavers in Bangladesh export yarns and fabrics after meeting the demands of domestic garment factories.Vietnam buys yarn from Bangladesh. Similarly, textile millers and yarn and fabric users in Turkey, South Korea, Egypt and Taiwan buy yarns and fabrics from Bangladesh.

So spinners and weavers are expanding their capacity to produce manmade fibers because of the growing demand.In the next two years, Bangladesh's yarn production capacity will see an addition of 2.5 million spindles. Currently, 13.5 million spindles are used to manufacture textile raw materials.