The Bangladesh Textile Mills Association (BTMA) on Thursday announced an indefinite shutdown of all textile mills across the country from February 1, citing the interim government’s failure to take effective steps to protect local yarn-producing spinning mills.

The announcement came at a press conference at the association’s office in Dhaka’s Karwan Bazar this afternoon.

BTMA President Showkat Aziz Russell said the decision was unavoidable as the industry has lost the capacity to service its bank loans. “We will shut down no matter what. We do not have the capacity to repay bank loans,” he told reporters.

Despite repeated approaches to relevant ministries and departments, no concrete support has been extended, he alleged. “Every department is simply passing responsibility to others, like a game of pillow passing,” he added.

Russell said the sector’s capital base has eroded by nearly half, leaving no viable mechanism to repay outstanding debts. “Even if we sell off all our assets, it will not be possible to clear the debts,” he said.

Senior BTMA leaders were also present at the press briefing.

The announcement comes against the backdrop of a commerce ministry letter sent to the National Board of Revenue (NBR) on January 12, requesting the suspension of duty-free yarn imports under the bonded warehouse facility in a bid to protect domestic spinning mills.

Industry insiders warn that any abrupt policy shift could put additional pressure on Bangladesh’s $28 billion knitwear export sector and upset the delicate balance between local yarn producers and garment manufacturers.