[🇧🇩] Textile & RMG Industry of Bangladesh

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[🇧🇩] Textile & RMG Industry of Bangladesh
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Commerce ministry requests NBR to restrict yarn imports through land ports

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The commerce ministry has suggested the revenue authority take steps to restrict yarn imports through land ports to protect the local textile and spinning sector.

In a letter to the National Board of Revenue (NBR) on March 27, the commerce ministry stated that yarn imports via land ports have caused significant losses to the domestic textile industry.

It said that lower values of yarn imported through land ports are declared compared to yarn imported through Chittagong port.

Local manufacturers are unable to compete with the yarn imported through land ports.

As such, it recommended the NBR take measures to bar imports through the land ports.

Last week, textile millers urged the government to take action, stating that the domestic yarn industry is struggling to survive.

Yarn imports from India are permitted through seaports and four land ports—Benapole, Sonamasjid, Bhomra, and Banglabandha.

The government had allowed yarn imports through these ports in January 2023 to meet a sudden surge in demand following the Covid-19 pandemic.

Currently, yarn worth around Tk 100 billion is stockpiled in local mills, as India continues to dump yarn at lower prices, millers said.​
 

Do I really need that new piece of clothing?

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The global fashion industry produces 92 million tons of textile waste, and one extra clothing purchase contributes to that. FILE PHOTO: PALASH KHAN

In the grand scheme of things, with rising expenses for everything else, clothing often does not seem like a thing to consider or bother about. Although the days of Tk80 t-shirts seem like a thing of the past, the cost of clothes isn't a burning issue for us. There are always options for different buyers, from broke students to the handful luxury item purchasers.

Let's go through the life of a t-shirt. For a typical Bangalee, the t-shirt will stay with its owner for a few years, with maybe around a hundred or so washes, and then it will eventually end up as a rag to clean the house. And one day, it will be too torn up and washed up to even use as a cleaning rag. And when it is thrown away, someone else will use it in some other way.

While the life-cycle for a single t-shirt seems nice, imagine the mounds of thrown-away t-shirts when every single person owns not one but an increasing number of t-shirts, oblivious to the true cost of clothing. The true cost might not come from our pockets directly, but the price is paid by our rivers and our environment that have been polluted through the entire clothing-making cycle. The cost of clothing is always hidden in its lifecycle, something we never really think about much.

The average person today buys 60 percent more clothing items than they did 15 years ago, while keeping each garment for half as long, according to the United Nations Environment Programme (UNEP). Textile matters because it is an integral part of human life. Responsible use of textiles is something that each person in this world should be accountable for, be it from a consumer's perspective or from a producer's perspective.

March 30, 2025, will be observed as the International Day of Zero Waste with the theme "Towards zero waste in fashion and textiles." The global fashion industry significantly contributes to resource consumption and carbon emissions, requiring 79 billion cubic meters of water annually (about 20 percent of the world's total water consumption), generating 1.7 billion tons of carbon dioxide (almost 10 percent of the world's total carbon dioxide emissions), and producing 92 million tons of textile waste (equivalent to a truckload of clothing being incinerated or sent to landfills every second).

When big celebrations like Eid come up, we purchase a lot for our loved ones, limiting our behaviour only through a monetary lens. When was the last time you asked yourself if your favourite designer/ brand had thought about the sustainability and durability of the clothing, reducing waste in the production process, using sustainable and non-toxic materials and providing fair wages to their suppliers? I, myself, seldom think about these perspectives while purchasing that really cool kameez set, or when I am swayed by that gorgeous piece of saree, or when that influencer is swaying my decision to purchase something needlessly. It's just a piece of clothing, and for some reason, I really "need" it. I do not think about its life with me.

The model of fast fashion is the leading cause of clothing waste. Remember how I said that I really "need" that piece of clothing? Our surroundings have been propagating this cycle of overconsumption, making us purchase the next thing and the next and then the next. By simply saying no to fast fashion, we can make the biggest impact! Question whether you truly need this purchase and if you will wear this at least 30 times. This "30 wears" test helps break the habit of impulse purchasing.

When you cannot wear the item 30 times (it happens; who is going to wear that poofy lehenga 30 times?), invest in higher quality, durable items that last longer. When possible, explore secondhand options first, without stigma! The habit of swapping clothes in your networks is also an excellent one. The environmental impact of a second-hand purchase is dramatically lower than buying new, as it requires no additional manufacturing resources.

Material selection is also very important when we do customise our own clothing. When we choose dark coloured clothing, especially black, it can hide stains and requires less washing, whereas lighter colours show stains more, eventually leading to higher washing and faster replacement. Light coloured clothes typically require more intensive bleaching and chemical processing during their manufacturing to achieve this bright colour, which means more chemicals are leached into the environment while they are produced.

Choose natural fibres like linen, which requires less water than cotton and can thrive without intensive pesticides or fertilisers, alongside other not-so-common options like hemp, which requires fewer chemicals to produce. Avoid synthetic materials like polyester in your fabric which shed microplastics on washing.

And for the eventuality of disposal, never discount how helpful repurposing your textiles is. Turn it into a kantha or quilt; remake that old saree into a dress!

Consumers are not the only group with a responsibility to do better, it is also on the producers to rethink the way they produce clothing. For designers and clothing producers, sustainable thinking can enhance their creativity. Reducing waste starts at the beginning, with every scrap of clothing saved, when materials are selected sustainably and with innovation focus. Even fabric scraps can be reincorporated into new products through techniques like fibre recycling, among others.

Achieving zero waste in fashion requires collaboration between producers and consumers. This symbiotic process can only start when we start thinking about the "real" cost of our textiles.

Let's ask ourselves the next time we make bulk purchases, "Do we really need that extra piece of clothing?"

Raida A. K. Reza is doctoral researcher at United Nations University's Institute for Integrated Management of Material Fluxes and of Resources (UNU-FLORES), Leibniz Institute of Ecological Urban and Regional Development (IOER), and Technische Universität Dresden and the founder of Zero Waste Bangladesh (ZWBD).​
 

Purchase orders may drop by 20–30pc amid US reciprocal tariffs
Staff Correspondent
Dhaka
Updated: 05 Apr 2025, 11: 27

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Workers at a garment factory File photo

Shovon Islam, managing director of leading garment exporter Sparrow Group of Industries, held meetings with three buyer companies in the United States last month. The US buyers separately expressed their positive mindset in shifting women’s clothing orders from China to Bangladesh.

In an over-the-phone conversation with Prothom Alo, Shovon Islam said, “After Donald Trump imposed the 37 per cent reciprocal tariff on Bangladesh, I contacted the buyers again regarding the purchase orders. They are now delaying the process, indicating that the orders are now uncertain.”

He continued, “A number of buyers informed us that the demand for readymade garments in the US would subside due to the tariff. If it happens, purchase orders may go down by 20-30 per cent next spring and winter.”

Garment exporters said the immediate impact of the US reciprocal tariff may be limited, but long-term impact on purchase orders could be severe if the tariff remains in place. As the US buyers have already begun recalculating costs, the Bangladesh government should initiate talks with the US without any delay.

If the 37 per cent reciprocal tariff remains for four to five years, the consequences for Bangladesh's exports could be devastating. Abdullah Hill Rakib, former vice-president of the BGMEA.

Regarding the tariff, commerce adviser Sheikh Bashir Uddin told Prothom Alo that it would take a few more days to fully assess the situation and the government’s response. He added that an emergency meeting will be held at his ministry on Sunday to determine the course of action.

Donald Trump, who began his second term as US president earlier this year, had pledged increased tariffs during his election campaign. On Wednesday, he officially announced reciprocal tariffs for around a dozen of countries. For Bangladesh, the US reciprocal tariff is 37 per cent, while it is 26 per cent for India, and 46 per cent for Vietnam.

According to Reuters and Vietnam+, India began reviewing import duties on over 30 US products, including luxury cars, solar cells, and chemicals, earlier this year, in an effort to deal with the US tariff. The nieghbouring nation has reportedly finalised plans to reduce import tariffs on 55 percent of American goods. Meanwhile, Vietnam has already slashed tariffs on 16 types of US products.

Our main competitor in home textiles is Pakistan, which faces a 29 per cent reciprocal tariff – lower than Bangladesh's 37 per cent. Simply, this gives Pakistan a competitive edge. M Shahadat Hossain, former chairman of the BTTLMEA.

In Bangladesh, the readymade garment sector accounts for 80 per cent of total exports, while the US is the single largest export destination, accounting for 18 per cent of garment shipments in the last fiscal year.

Against the backdrop, the reciprocal tariff sparked widespread concern among exporters, including those exporting footwear, leather goods, home textiles, and frozen foods.

Abdullah Hill Rakib, former vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said if the 37 per cent reciprocal tariff remains for four to five years, the consequences for Bangladesh's exports could be devastating. He laid emphasis on initiating negotiations with the US.

Home textiles is another key export product to the US. The country earned nearly USD 50 million from the US market in the last fiscal year. Now, the exporters are fearing a decline in their business due to the new tariff.

“Our main competitor in home textiles is Pakistan, which faces a 29 per cent reciprocal tariff – lower than Bangladesh's 37 per cent,” said M Shahadat Hossain, former chairman of the Bangladesh Textile and Linen Manufacturers and Exporters Association (BTTLMEA). “Simply, this gives Pakistan a competitive edge,” he added.

Shahadat also pointed out other challenges for the sector, including rising gas and electricity prices, reduced cash incentives, and now, the added burden of US tariff.​
 

RMG makers to seek buyers' support in emerging situation
Monira Munni
Published :
Apr 07, 2025 00:05
Updated :
Apr 07, 2025 00:06

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Apparel makers are now considering writing US buyers seeking their patience and support in the wake of the emerging situation over new US tariff regime, insiders said.

A number of the leading makers sat on Sunday night to brainstorm as to how they can cope with the situation in support with their major US buyers.

Meantime, US buyers of the locally made apparel items have started renegotiation with some of their local suppliers with few asking to hold their shipments either in ports or factories while some others seeking price concession, they added.

They, however, expect large volume of buyers' response on Tuesday onwards as Sunday was holiday and apparel sector trade body BKMEA has already asked its members to provide information in this regard.

On the other hand, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is likely to write US buyers requesting them to have patience for a certain period and not to impose any additional cost burdens, like keep orders on hold and price discounts, to suppliers.

The trade body would also inform the buyers about the government's diplomatic engagement with the US authorities to align bilateral trade relationship with the US, they added.

Talking to the FE, AKM Saifur Rahman Farhad, vice president of Bangladesh Garment Buying House Association (BGBA), said one of his US customers has asked for price reduction for an order worth of US$0.3 million while wants to renegotiate for goods worth of US$0.175 million.

Abdullah Al Mamun, owner of Sense Garments BD, said he annually produces 0.2 million pieces of apparel for a US buyer and he already shipped goods for May, goods for June is on the process of shipment.

He, also a member of BGBA, said the buyer has asked for suspension of production scheduled for July and holding the fresh order of 0.22 million pieces of apparel for August.

Expressing concern, he said one of his supplier factories that solely produces goods for the buyers is now in uncertainty over a shipment of 0.3 million pieces of garment scheduled to reach US port within 10 to 15 days.

It is not possible to shift the products immediately, he added.

Both the BGBA leaders called for immediate measures from the government as buyers are also expressing concern as to what Bangladesh government is doing.

"They also want to be assured from our parts," Mr Farhad added.

When asked, Fazlee Shamim Ehsan said he also heard that one of the US buyers has asked a garment maker to hold his production for a week to let them better understand the situation.

Responding to a question, he said they are also likely to write to the buyers seeking their supports in the crisis period.

According to him, BKMEA members have received work orders worth of US$2.75 billion since last October to March.

The United States is the single largest export destination for Bangladesh made exportable products mostly readymade garments.

Bilateral trade between the two countries stood at US$10.58 billion in 2024 with Bangladesh maintaining a healthy trade surplus of US$6.15 billion.

Bangladesh exported goods worth US$8.37 billion to the US in 2024 while the country imported $2.21 billion worth of goods from the US.

Out of Bangladesh's US$8.37 billion exports to the US, apparel items fetched US$ 7.34 billion, according to data.​
 

US loses cotton market share in Bangladesh

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The United States is losing its market share in cotton exports to Bangladesh amid concerns about logistics and the lengthy shipment duration for American cotton, according to a recent report by the US Department of Agriculture (USDA).

Bangladesh's millers imported 7.8 million bales of cotton in the marketing year (MY) 2023-24, beginning in August.

Of that, the share of US cotton, a key raw material for the country's apparel industry, was 9 percent. A year ago, in MY23, the share of cotton imported from America was 10 percent.

During the first seven months of MY25, local importers bought 286,056 bales of cotton from the US. The amount was only 6 percent of the total import of the item, down from 11 percent during the same period a year ago.

The USDA's report came just days before the Trump administration hiked tariffs on goods from 60 countries, including Bangladesh, entering the American market.

Bangladesh's exports will face a 37 percent higher tariff in the US market following Trump's tariff hike, which has created worries among exporters. It also prompted Chief Adviser Muhammad Yunus to write to the US President, promising to significantly increase imports of US farm products, including cotton.

The government is also finalising a dedicated bonded warehousing facility in Bangladesh, where US cotton will have duty-free access, according to the letter.

Citing its industry contacts, the USDA said the quality of US cotton is better than cotton from other sources.

"Many spinning mills in Bangladesh prefer US cotton; however, they always express concerns about the logistics and lengthy shipment duration required to obtain US cotton," it said in its Cotton and Products Annual report released on March 31.

The agency said many cotton merchandisers sell South American and West African cotton while it is afloat.

"This practice helps to reduce the shipment duration. However, US cotton is not sold afloat. Merchandisers also store their cotton in nearby warehouses in ports in Malaysia, Singapore, and Sri Lanka. Cotton from these warehouses can be delivered to Bangladesh in just seven days."

As per the report, West African countries and Brazil gained market share in cotton exports.

The West African countries collectively supplied 1.9 million bales, 41 percent of Bangladesh's total imports during the first seven months of this marketing year, the USDA said.

The US agency said the market share of West African and South American cotton is gradually increasing based on these logistical benefits, which allow importers to take advantage of price shifts.

"As a single country, Brazil emerged as the major raw cotton supplier to Bangladesh during this period," it said. Brazil exported 970,487 bales, comprising 20 percent of the market share, followed by India with 887,600 bales and a 19 percent share.

"Spinners prefer to buy Brazilian cotton due to its competitive pricing, increased availability during the harvesting season, and supply stability. The shipment period is also shorter for Brazilian cotton as it is often sold while it is afloat."

Cotton imports to rise

The US agency forecast an increase in cotton imports by Bangladesh to 8.2 million bales in MY26, up 1.2 percent year on year.

The report, citing industry contacts, said the RMG sector has shown resilience and growth despite recent political upheavals that led to the ouster of Sheikh Hasina's government in August 2024. The unrest led to factory shutdowns and a decline in international work orders. However, the industry has rebounded.

"With law and order restored, international clothing brands have resumed placing new orders since mid-January 2025, fostering optimism among garment exporters, with an increase in work orders from early 2025 boosting the demand for cotton."

"As the RMG industry is expecting a resurgence in work orders, the demand for raw materials, including cotton, will increase," it said.​
 

Garment sector resumes regular production after Eid: BGMEA
FE Online Desk
Published :
Apr 12, 2025 18:07
Updated :
Apr 12, 2025 18:07

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Nearly all garment factories under the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have resumed operations following the Eid-ul-Fitr holidays.

2,012 out of 2,024 factories – or 99.40 per cent – have reopened as of Wednesday, UNB reports citing a BGMEA statement issued on Saturday.

The highest concentration of garment factories is in the Gazipur and Mymensingh regions, where 851 out of 854 units are currently in operation.

In Savar, Ashulia and Jirani areas, 399 of 403 factories have resumed production. Besides, 186 factories are operational in Narayanganj, 320 in Demra, and 336 in Chattogram.

BGMEA data also reveals that 2,019 factories have already disbursed salaries for February, with only five factories – four in Dhaka and one in Chattogram – yet to do so.

As of now, 2,008 factories have paid salaries for March, either partially or in full. However, 16 factories are still pending full salary payments for the month, and 16 others have only paid partial salaries.​
 

Increase imports of US goods to reduce trade gap: textile millers
They also suggested increasing US content in manufactured goods to 20% to qualify for reduced tariff rates

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Bangladesh Textile Mills Association President Showkat Aziz Russell speaks at a roundtable on US tariffs, organised by the association at Gulshan Club in Dhaka today. Photo: BTMA

Textile millers and garment exporters today urged the government to increase imports from the US market in order to reduce the trade imbalance between Bangladesh and the United States.

They made the call at a roundtable on "US Tariffs on Bangladesh's Exports: Reciprocal Strategies and Way Forward for Negotiations," organised by the Bangladesh Textile Mills Association (BTMA) at Gulshan Club in Dhaka.

Showkat Aziz Russell, president of the BTMA, proposed leveraging Bangladesh's status as a major importer of American cotton by manufacturing cotton-based garments for duty-free access to the US market.

He also called for robust government support and greater foreign direct investment (FDI) to create employment and enhance competitiveness in the textile sector.

In his keynote, Masrur Reaz, chairman of Policy Exchange Bangladesh, underscored the significance of the recent 90-day deferment on new US tariffs and suggested that stakeholders move beyond diplomacy alone and pursue market-based solutions.

"Bangladesh must act decisively—by engaging buyers and brands, increasing US content in exports, and assessing sector-specific impacts—to secure long-term access to the US market," said Reaz.

The speakers suggested increasing US content in manufactured goods to 20 percent to qualify for reduced tariff rates, and establishing US cotton storage hubs in Bangladesh to streamline imports and eliminate logistical barriers.

They also recommended investing in infrastructure, industrial capacity, and human capital to boost productivity and global market readiness, and encouraging US investment in diversified sectors to expand export offerings.

Including the US private sector in ongoing free trade agreement (FTA) dialogues alongside government efforts was also recommended.

Participants expressed cautious optimism that evolving global trade realignments could open new doors for Bangladesh. However, they warned that inaction could lead to long-term setbacks.

The US remains Bangladesh's largest export destination, accounting for nearly 20 percent of total readymade garment exports, valued at $7.34 billion in 2024.

Hafizur Rahman, administrator to the Federation of Bangladesh Chambers of Commerce and Industry; Anwar Hossain, vice chairman of the Export Promotion Bureau and administrator to the Bangladesh Garment Manufacturers and Exporters Association, attended the event.

Anwar-ul Alam Chowdhury, president of the Bangladesh Chamber of Industries; Abdul Hai Sarker, president of the Bangladesh Association of Banks; and Shamim Ahmed, president of the Bangladesh Plastic Goods Manufacturers and Exporters Association, also attended.

Mohibuz Zaman, managing director of ACI Healthcare Ltd, and Mohammad Helal Mia, chairman of Amanat Shah Group, were also present.​
 

Bangladesh suspends import of yarn via land ports from India
Special CorrespondentDhaka
Updated: 15 Apr 2025, 19: 55

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The unusual hike in yarn price is impacting the competitiveness of RMG industry BSS

The National Board of Revenue (NBR) has suspended the import of yarn from India through land ports.

The facilities for importing yarn through Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari land ports have been revoked.

The NBR issued a notification in this regard on Tuesday, with immediate effect.

The new notification revises the earlier one issued on 27 August 2024. Yarn was primarily imported from India through these land ports.

Earlier in February this year, Bangladesh Textile Mills Association (BTMA), an organisation representing textile industry owners, demanded the suspension of yarn imports from India via land ports.

Subsequently, in March, the Bangladesh Trade and Tariff Commission, under the commerce ministry, recommended that the NBR takes measures to halt yarn imports via land ports in order to promote the use of domestically produced yarn in the garment industry.

In a letter addressed to the NBR chairman, the tariff commission suggested continuing yarn imports through seaports as before, until appropriate infrastructure is developed in all land and rail routes, land ports, and customs houses adjacent to the borders to determine yarn count in accordance with international standards, thereby ensuring the protection of the domestic textile industry.

In response, NBR chairman Abdur Rahman Khan issued an order in this regard. However, the import of yarn may still be carried out via sea or other non-land routes.

Sources said yarn produced in the northern and southern regions of India is stored in warehouses in Kolkata before being transported to Bangladesh. This yarn enters the country at relatively lower prices. As a result, yarn imported via land ports has been used more extensively than locally produced yarn.

The Bangladesh Textile Mills Association (BTMA) has claimed that this has caused significant harm to the domestic textile industry.

Sources further indicate that although the prices of yarn produced in China, Turkey, Uzbekistan, and Bangladesh are relatively similar, Indian yarn imported via land ports is significantly cheaper.

In fact, the prices of yarn imported through land ports are much lower than the prices declared at the Chattogram customs house. Consequently, domestic yarn manufacturers are struggling to remain competitive in the market.​
 

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