Due to high production costs, domestic textile millers, especially spinners, face stiff competition from foreign competitors, leading to loss of orders, even domestically. Garment exporters prefer importing raw materials, particularly yarn, hindering the growth of the local spinning sector. Imports of yarn increased by over 10% during the first nine months of the current fiscal year, while imports of other raw materials decreased. Local yarn prices are higher due to utility costs and gas shortages, making them less competitive than imported yarn. Garment exporters resort to sourcing yarn from abroad, despite incentives for sourcing locally. Importers allegedly sell yarn at a dumping price due to policy support and access to raw materials, while local mills face challenges like gas shortages and high interest rates. This trend could lead to closures in the textile industry. Local mills meet a significant portion of the knitwear and woven demand, but this situation threatens their viability and competitiveness.
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