As per the Bangladesh Textile Mills Association (BTMA), the sudden deluge of low-cost Chinese and Indian substitutes in local markets has resulted in over Tk 25,000 crore worth of domestic yarn and fabrics remaining unsold in the last five months. The majority of demand is being met by the Chinese and Indian yarn and fabrics, which are imported under bond licences and illegally sold in the domestic market by a section of unscrupulous traders enabled by the lax monitoring by the customs department.

These yarns and fabrics are used to make saris, salwar suits, bed sheets, scarves, lungis, the local yarn makers and weavers sell Tk 25,000 crore to Tk 30,000 crore worth of products ahead of Eid-ul-Fitr and Eid-ul-Azha. The goods imported under bond licences are not allowed to be sold in the local market as those are imported duty-free for exporting to different countries after processing in factories.