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Textile Mills Demand Lifelines As Banks Run Out Of Breath

• By  Textile Excellence
• January 03, 2026

The Bangladesh Textile Mills Association (BTMA) has urged the government to extend key financial support measures, warning that continued policy backing is critical to sustain the export-oriented textile industry.

In a letter to the finance secretary, BTMA president Showkat Aziz Russell requested a three-year extension of the cash incentive on export receipts, currently available under Bangladesh Bank’s Foreign Exchange (FE) Circular No. 28 and set to expire on December 31, 2025. The association has sought an extension until December 2028, citing mounting cost pressures and slower export realisation cycles that are straining liquidity across textile mills.

BTMA described the incentive as a crucial support mechanism, particularly as producers grapple with higher raw material import costs, currency depreciation and margin pressure in global markets. Without an extension, the association warned that export competitiveness could weaken further.

Separately, BTMA has appealed to Bangladesh Bank Governor Ahsan H. Mansur to extend the import credit facility for raw materials beyond the current deadline of December 31, 2025. The existing 180-day credit period, provided under FE Circulars No. 08 and No. 27, is insufficient, the association said.

Textile millers have proposed extending the credit period to 360 days, noting that the full production and export cycle - from cotton imports to receipt of export proceeds - typically spans 270–300 days. BTMA cautioned that without longer credit tenures, liquidity stress could disrupt production and weaken the export supply chain.

The association’s submissions underscore the sector’s reliance on targeted financial support as policymakers shape upcoming budget and trade decisions.

BTMA described the incentive as a crucial support mechanism, particularly as producers grapple with higher raw material import costs, currency depreciation and margin pressure in global markets. Without an extension, the association warned that export competitiveness could weaken further.