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The commerce ministry has asked the National Board of Revenue (NBR) to take necessary steps for stopping import of yarn through all land ports with a view to protecting local industry.
It has also suggested required suitable amendment to the existing SRO (statutory regulatory order) on the issue.
The ministry sent a letter on Thursday, requesting the next course of action in this connection.
According to the information provided by the Bangladesh Textile Mills Association that received stakeholders' opinions and necessary investigations, all types of imported yarn in Bangladesh is significantly undervalued which are being imported by land ports compared to the prices declared in Chittagong Customs House.
Local such yarn producers are not able to compete with these undervalued prices.
The average price of yarn produced in China, Turkey, Uzbekistan and Bangladesh is about the same while the prices of the yarn imported through land ports is much lower, the letter said.
Yarn produced in northern and southern parts of India is stored in Calcutta for fast shipment due to cheap entry into the country and the yarns imported through land ports is being used instead of domestic produced yarn.
"The domestic textile industry is facing losses due to imports of yarn," the letter reads.
Industry insiders claimed that India textile mills are dumping yarn and fabrics into Bangladesh to harm local industries.
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