Bangladesh’s efforts to expand exports of MMF garments may face challenges after the government proposed higher import duties on key synthetic raw materials in the FY27 budget.
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 % from 5%.
Industry stakeholders noted that Bangladesh has been gradually increasing its focus on MMF-based production to align with changing global apparel demand, particularly in Western markets. With garment exports facing pressure from weaker global demand and intensifying competition, expanding MMF production has become essential for sustaining export growth and competitiveness.
Bangladesh remains heavily dependent on cotton-based apparel, which accounts for more than 70 % of its total garment exports. In contrast, MMF-based products represent around 70% of global apparel demand, highlighting a significant gap between Bangladesh’s export basket and international market trends.
According to industry data, Bangladesh’s cotton apparel exports grew from around US $3 billion in 2001 to US $33 billion in 2021. During the same period, MMF apparel exports increased by about US $8 billion.
Bangladesh Textile Mills Association (BTMA) Vice-President Md Saleudh Zaman Khan said the proposed 5.0 %duty on polyester staple fibre would discourage MMF-based garment exports and could prompt manufacturers to revert to cotton-based production.
He suggested that the government could instead provide incentives or subsidies to support the development of domestic MMF backward-linkage industries.
According to Mr Khan, local manufacturers currently meet only 15-18 % of the demand for MMF-related inputs from knitwear and woven garment producers.
Industry estimates suggest the country could generate US $19-20 billion in MMF garment exports over the next decade if policy and supply-chain constraints are addressed.
Bharat Tex Special Report 2026 
