Government Intervention

Representation to the government on the situation of the industry yielded some fruitful result because government eventually took special interest in the survival of the industry. The imposition of a temporary suspension on the importation of printed textiles and eventual ban on importation of all textile products as from 1st January, 2004 was a welcome development. Majority of the imported raw material input of the industry were to attract low duty rate:

Government efforts were appreciated but the anticipated results were not achieved. Although placing back the ban had some salutary effect, on the spate of closures, it appeared that the lifting of ban had already done the damage. Smuggling of the prohibited textiles continued unabated.

Locally produced textiles cannot compete price-wise with the smuggled once because of the high cost of production in the country which is due to many factors. As at the end of 2009, only about 34 textile companies are functional employing less than 25,000 workers.