Bangladesh MMF Export Push Faces Headwinds Over Proposed Duties
Bangladesh’s efforts to expand exports of man-made fibre (MMF) garments may face new challenges following proposals in the FY27 budget to increase import duties on key synthetic raw materials.
The proposed measures include a 5% import duty on polyester staple fibre (PSF) and an increase in duties on PVC resin and PET resin to 10%, up from 5%. Industry stakeholders warn that the changes could raise production costs and slow the country’s transition toward MMF-based apparel manufacturing.
Bangladesh has been gradually shifting focus toward MMF garments to align with changing global apparel demand, particularly in Western markets. However, with more than 70% of its apparel exports still cotton-based, the country remains significantly behind global consumption patterns, where MMF products account for nearly 70% of demand.
Export data shows Bangladesh’s cotton apparel exports rose from around US$ 3 billion in 2001 to US$ 33 billion in 2021, while MMF apparel exports increased by approximately US$ 8 billion over the same period, indicating slower diversification in the sector.
Industry leaders caution that higher duties on raw materials such as polyester staple fibre could discourage MMF production and push manufacturers back toward cotton-based output. They argue that policy support, incentives and subsidies are needed to strengthen domestic backward-linkage industries and improve competitiveness.
Bangladesh Textile Mills Association (BTMA) Vice-President Md Saleudh Zaman Khan noted that local manufacturers currently meet only 15–18% of MMF input demand for knitwear and woven garments.
Industry estimates suggest that Bangladesh could potentially generate US$ 19–20 billion in MMF garment exports over the next decade if structural and policy constraints are effectively addressed.
