Yarn consumption in Bangladesh's Ready-Made Garments (RMG) sector declined by 31.55% in the first half of the fiscal year 2022-23, as compared to the same period in the previous year. This was due to a decrease in orders from international buyers, as well as an increase in fabric imports.

According to data from the Bangladesh Textile Mills Association (BTMA), local garment factories purchased 809,351 metric tonnes of yarn during the January-June period of the previous fiscal year, reflecting a decrease of 373,080 tonnes compared to the same period in the previous year.

The decline in yarn consumption was despite the fact that the RMG sector's export earnings increased by 1.19% year-on-year in the latter half of the previous fiscal year. This was due to a shift towards producing higher-value clothing items, which led to higher prices per clothing item despite a decrease in unit exports.

The BTMA has urged the government to consider the textile sector and reduce gas prices, given that the spot market LNG rate has decreased.

The decline in yarn consumption is a worrying trend for the RMG sector, as it could lead to job losses and factory closures. The government and the industry need to work together to find ways to reverse this trend and ensure the continued growth of the RMG sector.