[🇧🇩] Textile & RMG Industry of Bangladesh

Saif · May 14, 2025

Bangladesh set to remain world’s top cotton importer in MY26

Bangladesh is on track to retain its status as the world’s biggest cotton importer in the marketing year (MY) 2025-26, with imports projected to reach 8.5 million bales, according to a record-setting forecast by the United States Department of Agriculture (USDA).

www.thedailystar.net

Bangladesh set to remain world’s top cotton importer in MY26

Bangladesh is on track to retain its status as the world's biggest cotton importer in the marketing year (MY) 2025-26, with imports projected to reach 8.5 million bales, according to a record-setting forecast by the United States Department of Agriculture (USDA).

Vietnam is set to follow closely with 8 million bales, marking an all-time high for both countries, as per the USDA's latest Cotton: World Markets and Trade report.

The report highlights a modest rebound in global cotton consumption, which is expected to hit a five-year high of 118.1 million bales. This resurgence is attributed to stable economic activity, particularly in major textile-exporting countries such as Bangladesh and Vietnam.

For Bangladesh, the surge in cotton imports reflects the continued expansion of its ready-made garment (RMG) industry — the backbone of its export economy.

In the first 10 months of FY25, Bangladesh's RMG exports grew 10.86 percent year-on-year to $30.25 billion, according to Export Promotion Bureau (EPB) data.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said Bangladesh's decision to import more cotton from the US is part of a broader strategy to reduce the trade gap between the two countries.

He noted that the record volume of cotton imports would also strengthen Bangladesh's case for securing duty-free access for its RMG products in the US market.

"The government has already taken necessary initiatives in this regard," Hatem said.

He further stated that US cotton is considered the best in the world in terms of quality and consistency, making it the preferred choice for local spinners and manufacturers.

"With global buyers increasingly prioritising sustainable sourcing and natural fibres, cotton remains a vital raw material for Bangladesh's spinners and knitwear producers," Hatem added.

He viewed the USDA's import forecast as a strong endorsement of Bangladesh's capability to maintain and expand its leadership in the global apparel value chain.

The global cotton trade is also forecast to rise by 2.3 million bales to 44.8 million bales in MY26, indicating a broader uptick in demand across textile-producing economies.

China, which imported 15 million bales in MY24, is projected to import only 7 million bales in MY26. The country's shift away has left space for Bangladesh to rise to the top, which analysts say marks a notable structural shift in global cotton trade flows.

The USDA also anticipates stable cotton prices globally, aided by adequate supply, a weakening US dollar, and declining energy costs. These trends may ease cost pressures for Bangladeshi millers, who have grappled with high input costs over the past two years.

On March 17 this year, Foreign Affairs Adviser Md Touhid Hossain said Bangladesh intends to import more cotton from the US, creating mutual benefits for US suppliers and local businesses.

He added that such trade ties could offer Bangladesh protection amid former US President Donald Trump's tariff-centric policies.

Although the Trump administration has levied high tariffs on many countries, Bangladeshi goods have so far remained outside the purview of such punitive measures.

Hossain argued that sourcing more US cotton could further dissuade the administration from targeting Bangladesh, whose products face an average tariff of 15.62 percent in the US market.

He also stressed the need to boost domestic cotton production to meet at least 20 percent of the country's annual demand, amounting to about 9 million bales.

Currently, local production covers just 2 percent of that requirement.

Saif · May 16, 2025

Apparel sector needs $6.6b investment to cut carbon emission by half: Report

Bangladesh's textile and apparel industry needs an approximate investment worth US$6.6 billion to help reduce the level of carbon emissions by half by 2030 through renewable energy and energy efficiency measures, according to a global report. Of the required amount, only $1.8 billion is currently

thefinancialexpress.com.bd

Apparel sector needs $6.6b investment to cut carbon emission by half: Report
Monira Munni

Published :
May 16, 2025 08:49
Updated :
May 16, 2025 08:49

Bangladesh's textile and apparel industry needs an approximate investment worth US$6.6 billion to help reduce the level of carbon emissions by half by 2030 through renewable energy and energy efficiency measures, according to a global report.

Of the required amount, only $1.8 billion is currently available or anticipated while there has been a gap of $4.8 billion, said the report titled 'Landscape and Opportunities to Finance the Decarbonization of Bangladesh's Apparel Manufacturing Sector'.

As of 2023, Bangladesh was among the top five countries having the highest level of potential in reduction of greenhouse gas emissions in the apparel and textile industries.

Apparel Impact Institute (Aii) in collaboration with Development Financial International, Inc (DFI) published the report on May 08 outlining how the country can close that gap and realize its decarbonization potential through strategic finance tools.

Aii is a global non-profit organisation, dedicated to identifying, funding, scaling, and measuring the apparel and footwear industry's proven environmental impact solutions and works with over 50 brands and retailers including Target, PVH, Lululemon and H&M Group that are leading the sector's global decarbonization efforts.

Bangladesh's textile and apparel industry contributes more than 80 per cent of the country's foreign export earnings, said the report.

The sector has significant potential to contribute to the goal of a 50 per cent reduction in greenhouse gas (GHG) emission by 2030, taking the industry's scale-- key production stages, including raw material processing, weaving, knitting, dyeing, finishing, manufacturing and distribution and continued reliance on fossil fuels, into consideration.

Despite its economic significance, local textile and apparel industry faces considerable environmental challenges and the high consumption of energy, water, and chemicals across the supply chain has contributed to significant environmental degradation and GHG emissions, according to the report.

In Bangladesh, natural gas burning remains the country's primary source of energy and RMG sector alone accounts for 8.2 per cent of Bangladesh's total electricity consumption, it said, adding that the textile and garment sector represents 27.8 per cent of Bangladesh's primary energy consumption.

Besides, there is growing pressure from brands and emerging global and local regulations for the industry to adopt cleaner and sustainable practices, it said.

Explaining the possible credit lines, it said as of September 2024, some 12 credit lines and revolving fund schemes have been identified, with close to $1.6 billion in available funding and $175 million in upcoming funding from International Financial Institutions (IFIs) and the national government.

"This leaves a financing gap of US$4.8 billion," it said, adding IFIs are also partnering with the government and private sector to improve energy policies, build local technical capabilities, and support decarbonisation initiatives," said the report.

It, however, found financial constraints, limited technical expertise, insufficient energy policies and inadequate infrastructure as major challenges that manufacturers face in transitioning to sustainability.

A lack of technical experts such as energy auditors in Bangladesh drives up costs and prolongs inspection processes, with energy audits averaging $10,000 - approximately double the cost in neighbouring India.

Building local expertise can help reduce costs and generate quality local jobs, the report suggested.

It further said the renewable energy market is still in its early stages, with limited renewable energy service companies (RESCO) activity and no energy service companies (ESCO) operations in Bangladesh recommending "Growth capital is needed to scale renewable energy and energy efficiency solutions."

The report also recommended, among others, enhanced support from brands, active involvement of manufacturers to address barriers like higher level of debt and perceived risks by encouraging brands to offer stronger incentives and support through various financing and de-risking instruments.

Talking to the FE, Shams Mahmud, managing director of Shasha Denims Ltd, said the industry itself has, so far, invested to help cut emissions, taking the EU regulations into consideration.

"It is difficult to make funds available mostly for small and medium enterprises as they (SMEs) don't have enough capacity and lengthy documentation procedures," he said. He went on: "The rate of interest also remains high."

Mr. Mahmud, however, said the green transition fund is not industry-friendly.

The main issue is to measure as how much decarbonization is done, he said, adding that there is a lack of skilled manpower in government agencies concerned.

About the measures, he said, his factory has undertaken to decarbonise, while they are installing new energy-efficient technology that can help reduce usages of water and chemical.

Such technology using tri-generation systems of power generation to reduce carbon footprint, enhancing the efficiency level to 85 per cent from 60 per cent in two years back.

Saif · May 17, 2025

Apparel exports to EU surge by 33pc

Bangladesh’s apparel exports to the European Union showed a strong upward trend in the first quarter (January-March) of 2025, with total earnings increasing by 33 per cent compared to the same period in 2024...

www.newagebd.net

Apparel exports to EU surge by 33pc
Moinul Haque 17 May, 2025, 23:02

Bangladesh’s apparel exports to the European Union showed a strong upward trend in the first quarter (January-March) of 2025, with total earnings increasing by 33 per cent compared to the same period in 2024.

According to data from the Eurostat, the statistical office of the EU, From January to March 2025, EU apparel imports from Bangladesh totalled 5.68 billion euros, compared to 4.27 billion euros during the same period in 2024.

This increase of 1.41 billion euros in the quarter represents a notable 33 per cent growth in terms of value.

Knitwear exports drove much of this expansion, climbing nearly 36 per cent from around 2.39 billion euros to 3.25 billion euros. Woven apparel also performed strongly, with exports rising approximately 30 per cent from 1.87 billion euros to 2.43 billion euros.

Exporters attributed the recent surge in apparel exports to the EU to seasonal summer demand, early order placements by buyers and a recovering European market.

Although Bangladesh’s exports to the EU grew year-on-year in each of the three months, the rate of growth slowed gradually over the quarter.

Data showed that Bangladesh’s apparel exports to the EU in January 2025 posted the highest growth rate at 61 per cent, reaching 1.91 billion euros, followed by slower but healthy growth of 28 per cent in February with 1.66 billion euros and a further slowdown to 18 per cent growth in March with exports totaling 2.10 billion euros.

Bangladesh Knitwear Manufacturers and Exporters Association former president Fazlul Hoque said that the significant increase in the EU’s overall apparel imports in the first quarter of 2025 indicated a clear revival of the market.

‘The good news is that buyers are placing orders again — and the even better news is that a significant share of those orders is coming to Bangladesh. It shows that we are holding our ground, even as competition intensifies,’ he said.

The EU market saw strong growth in apparel imports in the first quarter of 2025, with total import value rising 20.6 per cent from approximately 19.44 billion euros in January-March of 2024 to 23.45 billion euros in the same period in 2025.

Knit apparel imports increased by 23.6 per cent, rising from 9.53 billion euros to 11.78 billion euros, while woven apparel imports grew 18 per cent, from 9.90 billion euros to 11.67 billion euros.

Overall, EU apparel imports rose by more than 4.9 billion euros year-on-year.

In volume terms, the EU’s apparel imports also recorded a significant increase.

Total import volume reached approximately 11.51 million kilograms in the first quarter of 2025, up from 9.57 million kilograms in the same period of 2024, a 20.3 per cent rise.

In quantity, Bangladesh’s total apparel exports to the EU rose from 2.90 million kilograms in the first quarter of 2024 to 3.61 million kilograms in the first quarter of 2025, an increase of 24.6 per cent.

Knitwear volumes grew by 29.5 per cent, from 1.76 million kilograms to 2.28 million kilograms while woven apparel exports increased by 17.1 per cent, reaching 1.33 million kilograms.

Among major EU suppliers, Bangladesh recorded one of the highest growth rates in value terms, surpassing key competitors such as China, Vietnam, Turkey, and India.

While it fell just short of Cambodia’s exceptionally high growth rate, it remained slightly ahead of Pakistan’s.

Despite the positive export trends, Fazlul Hoque cautioned that supply-side risks were mounting, particularly due to energy shortages.

He said that plans to divert gas from power generation could create significant energy supply challenges for the industry, potentially threatening Bangladesh’s ability to sustain or grow its market share.

Eurostat data showed that China retained its position as the EU’s largest apparel supplier by value. The country’s exports rose from 4.92 billion euros in the first quarter of 2024 to 6.35 billion euros in the same period of 2025, marking a 29 per cent increase. Knitwear shipments to the EU grew by 32.7 per cent, while woven apparel rose by 25.5 per cent.

Turkey saw a slight decline in total apparel exports, which fell by 0.9 per cent from 2.28 billion euros to 2.26 billion euros. While knit exports rose marginally by 1.5 per cent, woven apparel declined by 4.1 per cent, possibly reflecting changing competitiveness or supply chain dynamics.

India achieved solid growth, with EU imports rising from 1.07 billion euros to 1.37 billion euros, a 27.8 per cent increase. Knitwear grew by 34 per cent and woven by 22 per cent, indicating a broader improvement in India’s access to the EU market.

Vietnam’s apparel exports to the EU expanded by 22 per cent to 1.08 billion euros, supported by a 19 per cent rise in knitwear and a 24 per cent increase in woven apparel.

Pakistan recorded a 32.8 per cent rise in total exports, which reached 1.03 billion euros. Knitwear exports increased by 30 per cent, while woven apparel grew by 36 per cent.

Cambodia reported the fastest growth among all listed suppliers, with EU apparel imports rising by 37.8 per cent to 1.11 billion euros. Knitwear exports grew by 35 per cent, and woven garments surged by 41 per cent.

Saif · May 18, 2025

Fast fashion, fat margins: How retailers cash in on low-cost RMG

Global fashion brands are reaping triple-digit profits on Bangladeshi garments, buying at $3 and selling for three to four times more. Yet, they continue to pressure factories to cut prices further.

www.thedailystar.net

Fast fashion, fat margins: How retailers cash in on low-cost RMG

Global fashion brands are reaping triple-digit profits on Bangladeshi garments, buying at $3 and selling for three to four times more. Yet, they continue to pressure factories to cut prices further.

A shirt manufactured in Bangladesh at a free-on-board (FoB) price of $5 often retails for as much as $28 in Europe or North America. Once shipping, warehousing, duties, and other operational costs are added, bringing the total to around $16, retailers may still earn a profit of about $12 per item.

Western retailers and brands often justify their pricing strategies by pointing to the high costs associated with global operations, including freight charges, currency hedging, warehousing, demurrage, markdowns, and advertising.

"There are overheads, of course, but let's not pretend they're not making money," said Fazle Shamim Ehsan, proprietor of Fatullah Apparels. "Especially in the mid to high-end market, many brands earn huge profits from goods made in Bangladesh."

Still, many Western buyers continue to pressure Bangladeshi factories to reduce the prices further.

A 2020 study by the European non-profit Fair Wear Foundation found that nearly 39 percent of garment manufacturers in the country had sold products at a loss.

The practice, exporters say, is mainly to preserve long-standing relationships with global retailers and to secure future contracts.

Meanwhile, data from the Centre for Policy Dialogue (CPD), a Dhaka-based think tank, suggests that Bangladesh consistently receives lower prices than its Asian competitors for similar products.

In 2020, Bangladeshi cotton T-shirts exported to the European Union (EU) fetched €1,091.5 per 100 kilogrammes, a 1 percent decline from the previous year, while Vietnam's equivalent product saw a 3 percent price increase, rising to €2,157.9.

The contrast was even sharper in pullovers.

Bangladesh's average price fell 7 percent to €1,329.5, whereas Vietnamese pullovers held steady at €2,157.8.

For garments made from man-made fibres, Bangladeshi exports declined 6 percent to €1,319.4, while Vietnam's fell by just 3 percent to €1,906.2.

The United States market reflected similar patterns, as shown in the CPD data.

The average price for a dozen Bangladeshi-made cotton T-shirts dropped from $22.43 in 2019 to $17.99 in 2020, a 20 percent fall, while Vietnamese suppliers experienced a slightly smaller decline, with prices falling from $38.2 to $31.9.

Bangladeshi sweaters and pullovers also saw a 2 percent price drop to $39.31 per dozen, whereas Vietnamese equivalents remained largely unchanged, with prices hovering around $47.

For trousers, the gap was wider still. A dozen cotton-fibre trousers for women and girls exported from Bangladesh earned $64.17 in 2020, down 12 percent from the year before. Vietnam, by comparison, received $84.6 for the same product after a smaller price adjustment of just 6 percent.

SYSTEMIC UNDERVALUATION

A 2022 report by the International Trade Centre (ITC) underscored the pattern of systemic undervaluation of Bangladeshi garments.

Men's woven cotton trousers exported from Bangladesh earned an FoB price of $7.01 per piece, which was 9.2 percent below the global average of $7.72. Vietnam received $10.76 for the same item, while Sri Lanka and India fetched $8 and $8.41.

Similarly, men's cotton jeans made in Bangladesh were sold at $7.81 per piece, 7.2 percent below the global average of $8.41, while Vietnamese jeans sold for $11.55.

Even in niche categories like man-made fibre bras, Bangladesh was paid considerably less, with exporters earning $3.19 per unit compared to Vietnam's $6.06.

Only two Bangladeshi products -- women's cotton trousers and men's cotton T-shirts -- were sold at slightly above the global average.

Women's cotton trousers earned $6.43 apiece, exceeding the world average of $5.22 by 23.3 percent, while men's T-shirts fetched $1.47, roughly 23.1 percent higher than the global benchmark.

Still, these figures were dwarfed by the earnings of countries like Turkey and Peru, which received up to four times more for similar items.

According to the ITC, which has a joint mandate with the World Trade Organization and the United Nations, these pricing gaps represent an entrenched imbalance in the global supply chain.

Industry insiders say Bangladesh's quality has improved, but its bargaining power remains weak.

RETAILERS CITE HIGH OPERATIONAL COSTS

Ehsan, owner of Fatullah Apparels, said jackets and outerwear produced in Bangladesh, often sold to retailers at FoB prices ranging from $20 to $25, regularly appear in stores for $100 to $110.

He added that some of the world's richest individuals have built their fortunes in fashion retail, with Bangladesh as a key production hub.

The profit chain often stretches beyond the retailers themselves.

Md Fazlul Hoque, managing director of Plummy Fashions Ltd, pointed out that a significant share of Bangladesh's garment exports is managed by intermediaries or third-party importers, who also take a cut before the goods reach retail shelves.

"Sometimes we sell a T-shirt at $3.50, and it ends up in a branded store for $39," Hoque said. "Of course, it doesn't stay at that price forever -- discounting comes in later, but the markup is still substantial."

He added that while pricing can vary across seasons and product categories, the general rule of thumb remains: most garments are sold at three to four times their FoB value.

However, a European retailer, on condition of anonymity, disputed the claims of excessive markups. "Those suggesting a substantial markup on Bangladeshi garment items are gravely mistaken," he said.

"In the garment supply chain, a European retailer must rent large warehouses to store goods, which is quite costly," he said, adding that transportation expenses also factor in.

"Renting retail space is another major expense, and ultimately, retailers and brands can sell, at best, 70 percent of the goods from a single consignment," he said. "Once the season ends, unsold items can no longer be offered to customers."

The retailer said that European companies pay higher wages than their Asian counterparts, which also affects profit margins. "Ultimately, European retailers earn less than 10 percent profit annually. The claims of high markups are exaggerated."

CALL FOR FAIR PRICING

Apparel industry advocates and multilateral organisations are increasingly urging retailers to adopt more equitable pricing models.

The ITC noted in its report that while apparel manufacturing has grown more complex, involving design, logistics, and branding, the actual cut-and-sew operations, which remain concentrated in countries like Bangladesh, continue to be the least rewarded.

Khondaker Golam Moazzem, research director at CPD, said that China and Vietnam are getting higher prices for their garments by utilising diverse fabrics and innovative product designs, despite sharing the same HS codes as Bangladesh.

In contrast, Bangladesh's garment exports are heavily reliant on just five or six products, accounting for 70 percent of its total exports. This concentration creates unhealthy competition, tempting local exporters to undercut prices, said Moazzem.

He also pointed out that the industry's heavy dependence on cotton and limited use of man-made fibres are also obstructing better prices.

"Bringing in more foreign investment could be a viable solution, as foreign investors usually have access to upmarket buyers and advanced technologies," said the CPD research director.

Saif · May 19, 2025

RMG export to EU rises 29% in Jan-Mar

Bangladesh shipped $5.98 billion worth of apparels to the EU in the first three months of 2025

www.thedailystar.net

RMG export to EU rises 29% in Jan-Mar
Bangladesh shipped $5.98 billion worth of apparels to the EU in the first three months of 2025

Bangladesh's apparel exports to the European Union surged by 29 percent in the first three months of 2025.

The South Asian country shipped garments worth $5.98 billion to the EU in the January–March period of 2025, up from $4.63 billion in the same period of 2024.

Moreover, garment export volume to the destination also rose by a strong 24.64 percent, along with a 3.55 percent increase in unit price, according to data from Eurostat, the statistical office of the European Union.

The rise in export value, volume, and unit price indicates balanced growth in amount, quantity, and price in the EU market, the data said.

In the January–March period of 2025, the EU saw a significant surge in apparel imports, with growth of 16.84 percent, totalling $24.65 billion.

This increase was accompanied by a notable 20.25 percent spike in volume and a 2.84 percent decrease in average unit prices.

China, India, Pakistan, and Cambodia also experienced substantial growth in the same period.

China's apparel exports to the EU reached $6.67 billion in January–March 2025, up from $5.34 billion in the same period of the previous year.

However, Turkey faced a 4.14 percent decrease in apparel exports to the EU, totalling $2.37 billion in January–March 2025, while Vietnam recorded 18.09 percent growth, reaching $1.14 billion in exports.

India, Pakistan, and Cambodia secured $1.44 billion, $1.08 billion, and $1.16 billion respectively from the EU clothing market during January–March 2025.

Saif · May 20, 2025

Bangladesh to stay as top cotton importer in 2025-26

Bangladesh, the second largest exporter of readymade garment items, is poised to remain the world’s largest raw cotton importer in the marketing year 2025-26, said the US Department of Agriculture...

www.newagebd.net

Bangladesh to stay as top cotton importer in 2025-26
USDA says
Saddam Hossain 20 May, 2025, 23:30

A file photo shows a worker overseeing a cotton processing machine at a factory in Habiganj. | New Age photo

Bangladesh, the second largest exporter of readymade garment items, is poised to remain the world’s largest raw cotton importer in the marketing year 2025-26, said the US Department of Agriculture.

According to the data titled ‘Cotton: World Markets and Trade’ issued by the Foreign Agricultural Service under USDA, Bangladesh is projected to import 8.5 million bales of cotton in MY26, which starts in August.

USDA data show that in MY24, Bangladesh imported about 7.5 million bales of cotton from its global sources, which may increase to 8.2 million bales at the end of the current MY25.

Vietnam, one of the closest competitors of Bangladesh in the RMG export, is projected to import 8 million bales of cotton in MY26, where China may import 7 million bales, which imported 15 million bales in MY24.

However, Bangladesh remained top cotton importers, with 7 million bales import in MY23, and 8.45 million bales in MY22.

Meanwhile, on March 31, the USDA, in its report titled ‘Cotton and Products Annual,’ stated that Bangladesh’s cotton imports would witness a slight increase in MY26 thanks to increasing demand for RMG items.

According to the Export Promotion Bureau data, in the July-April period of the current FY25, Bangladesh’s RMG exports witnessed a positive growth of 10.86 per cent year-on-year to $30.25 billion.

In MY24, West African cotton held the largest market share in Bangladesh (37 per cent), while other major exporters included Brazil (17 per cent), India (23 per cent), and the United States (9 per cent).

US cotton growers and exporters tried to expand their exports to Bangladesh for years.

It is to be noted that in early April, the US administration announced hefty duties on multiple countries as part of sweeping global tariffs, and Bangladesh was also slapped with a 37 per cent reciprocal tariff. Currently, most Bangladeshi goods in the US face a 15 per cent tariff.

However, after a few days, the US administration paused the declared tariff for a 90-day period.

A number of exporters and experts suggested raising the import of US cotton to reduce the trade gap between Bangladesh and the US.

On 2023, Bangladesh lifted the double fumigation requirement for US cotton, meant US cotton could enter Bangladesh without fumigation at the port of entry, which saved importers millions of dollars and five days of waiting time.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said Bangladesh could import more cotton from the US as a part of a broader strategy to reduce the trade gap between the two countries.

He said that the USDA’s import forecast strongly ratifies Bangladesh’s capability to maintain and expand its leadership in the global RMG value chain.

He also said that importing a large amount of cotton from the US may reinforce Bangladesh’s position for bargaining for duty-free access for its RMG items to the US.

He also said that the government’s position in this regard is appreciable.

He added that cotton will always remain vital as a crucial raw material for Bangladesh’s spinners and knitwear producers as a primary source of natural and sustainable fibre.

According to the USDA, Bangladeshi producers could produce about 153,000 bales of cotton on 45,000 hectares of land, which is less than 2 per cent of its total consumption.

Saif · May 25, 2025

Textile mills gasp from severe disruption in gas supply

Textile and garment industry owners said that due to the inadequate supply of gas, the normal manufacturing activities is being hampered in the industry...

www.newagebd.net

Textile mills gasp from severe disruption in gas supply
Staff Correspondent 25 May, 2025, 22:59

BTMA president addresses the press conference organised by the Bangladesh Textile Mill Association in the capital on Sunday. | Press release

Textile and garment industry owners said that due to the inadequate supply of gas, the normal manufacturing activities is being hampered in the industry.

Moreover, a number of textile mills are on the verge of shutting down as they are unable to operate even at minimum capacity.

They were speaking at a press conference organised by the Bangladesh Textile Mill Association in the capital on Sunday.

Representatives from Federation of Bangladesh Chamber of Commerce and Industry, Bangladesh Garment Manufacturers and Exporters Association, Bangladesh Knitwear Manufacturers and Exporters Association, Bangladesh Terry Towel and Linen Manufacturers and Exporters Association, Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh, and Bangladesh Chamber of Industries were also present at the event.

BTMA president Showkat Aziz Russell said that the sector was going through a gas supply shortage for the past few months, and it became severe in the last few weeks.

He also said that the government was reluctant to resolve the crises and the sector was passing through a hard time.

‘The government seems like ostrich, everyone is saying about their problems but they hide their head in the sands,’ he added.

He also said that the factories are being strangled to death through anti-industry actions and the working capital has shrunk drastically.

‘It seems that we cannot pay wages and festival allowances properly before Eid and we won’t be able to reopen the factories after Eid,’ he added.

He also said that in 1971, intellectuals were systematically targeted and killed. In 2025, the industry and the industrialists are being targeted destroyed, he added.

He also said that the failure to save the industry could lead the country towards famine.

He sought immediate governmental measures to ensure smooth and uninterrupted gas supply to the textile industries of the country.

‘The government has failed to provide adequate gas supply to the industries despite hike in the prices several time and repeated commitments,’ he added.

But, the government is now setting a deadline for the factories to pay wages, otherwise, the owners will be arrested, and their houses and cars will be sold, he lamented.

‘Government should introduce a mid-term strategy and roadmap to resolve the gas and energy issues,’ he added.

He also said that there was about 20 per cent system loss in Titas Gas, though the global standard is 1 per cent to 2 per cent.

‘If the government take immediate measures to stop system loss, it would be lowered to 7 per cent to 8 per cent,’ he added.

BCI president Anwar Ul Alam Chowdhury said that the government committed to provide required mmcf of gas, but they couldn’t supply.

The government has hiked gas price, interest rates for which factories run only 60 per cent of their capacity.

Jakir Hossain Noyon, member of the assistant committee of the FBCCI, said that government must focus on exploring new gas field to meet the demands.

He also urged the government to start Small Modular Reactor technology for the industry.

BTMA director Rajeev Haidar also urged to drill new gas field.

BTMA vice-president Saleudh Zaman Khan said that if the government did not take proper action, Bangladesh would not see the birth of new entrepreneurs.

‘If the government couldn’t solve the problems by June, a number of factories will shut after the Eid,’ he added.

Business leaders from many other trade bodies also spoke at the event.

Saif · May 27, 2025

High-level consultation held to align on single monitoring and compliance system for RMG sector

A high-level consultation meeting towards alignment for a Single Monitoring and Compliance System (SMCS) was held on Tuesday at the BGMEA Complex in Uttara. The event was jointly organized by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufac

thefinancialexpress.com.bd

High-level consultation held to align on single monitoring and compliance system for RMG sector

FE Online Report
Published :
May 27, 2025 23:21
Updated :
May 27, 2025 23:55

A high-level consultation meeting towards alignment for a Single Monitoring and Compliance System (SMCS) was held on Tuesday at the BGMEA Complex in Uttara.

The event was jointly organized by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

The meeting brought together key stakeholders, including representatives from the International Labour Organization (ILO), the Department of Inspection for Factories and Establishments (DIFE), and major global brands such as M&S, GAP, Inditex, and Li & Fung, alongside members of BGMEA and BKMEA.

Discussions centered around the persistent challenge of overlapping audits and compliance requirements in the RMG and textile sector.

The participants highlighted how this leads to audit fatigue, duplication of efforts, and inefficient use of resources.

This consultation focused on discussing ways to establish a common platform to streamline monitoring and compliance practices for enhanced sector-wide efficiency and accountability.

The session was chaired by Md. Anwar Hossain, Administrator, BGMEA. ANM Saifuddin, Supporting Committee Member, BGMEA, moderated the discussion, while Fazlee Ehsan Shamim, Executive President, BKMEA, also spoke at the meeting.

In his remarks, Tuomo Poutiainen, Country Director of ILO Bangladesh, stressed the importance of developing a credible and inclusive national system. He highlighted the need for trust-building and institutional collaboration to ensure the system’s success and sustainability.

BGMEA Administrator Md. Anwar Hossain underscored the need to address fragmentation in audits to minimize fatigue and highlighted the importance of a common compliance platform with a credible and internationally accepted unified code of conduct for social and technical audits.

He emphasized that this would benefit all stakeholders — buyers, manufacturers, and workers alike.

Anwar Hossain urged the ILO to take the lead in facilitating its development.

All brand representatives and stakeholders present expressed support for the initiative.

BGMEA and BKMEA will jointly develop a concept paper outlining the scope, rationale, and framework of a unified monitoring and compliance system, according to meeting sources.

Stakeholder consultations will be initiated to identify common compliance indicators across trade bodies, employers, trade unions, brands, and auditing experts.

The initiative aims to lay the groundwork for a trusted and transparent national compliance system aligned with global expectations and the Bangladeshi context.

Saif · May 28, 2025

Over half of registered RMG factories pay festival allowance ahead of deadline: BGMEA

Over 53 per cent, or 1,126 garment factories registered with the apparel apex body — Bangladesh Garment Manufacturers and Exporters Association— paid festival allowances as of Wednesday, three days before the set deadline, according to data from the BGMEA. The trade body, in a circular

thefinancialexpress.com.bd

Over half of registered RMG factories pay festival allowance ahead of deadline: BGMEA

FE Online Report
Published :
May 28, 2025 19:47
Updated :
May 28, 2025 22:19

Over 53 per cent, or 1,126 garment factories registered with the apparel apex body — Bangladesh Garment Manufacturers and Exporters Association— paid festival allowances as of Wednesday, three days before the set deadline, according to data from the BGMEA.

The trade body, in a circular issued on May 26 citing the government’s decision, asked all its members to pay the festival allowance by May 31 and the monthly wages for May by June 3.

“But, if necessary, May wages could be paid before the Eid holiday starts, considering production and shipment, after discussions with respective workers,” read the notification.

It further added that, in such cases, factory management must ensure there is no labour unrest.

According to the BGMEA, some 2,092 factories listed with the trade body are currently in operation.

Some 46.18 per cent, or 966 factories, had not paid the festival allowance as of Wednesday, data showed.

It also showed that four units in the Gazipur, Savar, and Ashulia industrial zones out of the 2,092 factories suspended operations on Wednesday for various reasons.

Two factories located in Gazipur — Hong Kong Fashion Ltd and Hagh Knitwear Ltd — had not paid wages for the month of March as of Wednesday, while about two dozen factories had not paid wages for the month of April.

Saif · May 28, 2025

Bangladesh now has 244 green RMG factories

Now Bangladesh has 244 readymade garment factories certified by the United States Green Building Council’s Leadership in Energy and Environmental Design authorities as another unit achieved status of green factory. ..

www.newagebd.net

Bangladesh now has 244 green RMG factories
Staff Correspondent 28 May, 2025, 23:06

Now Bangladesh has 244 readymade garment factories certified by the United States Green Building Council’s Leadership in Energy and Environmental Design authorities as another unit achieved status of green factory.

Of the 244 green factories, 102 are platinum-rated, 128 gold-rated, 10 silver-rated and four certified factories, according to the Bangladesh Garment Manufacturers and Exporters Association.

In May, Gazipur-based Esprit Apparels Ltd achieved a platinum certificate from the USGBC under LEED BD+C: New Construction v4 rating system with a score of 101.

So far, 68 of the world’s top 100 LEED factories, including nine of the top 10 and 18 of the top 20, are in Bangladesh.

This success is expected to attract new investment and partnerships, reinforcing Bangladesh’s position as a sustainable manufacturing hub.

According to industry insiders, a total of 550 factories were awaiting the USGBC’s LEED certification.

The factories of Bangladesh have been obtaining the LEED certificate since 2011.

The USGBC honours factories based on several criteria: transformation performance, energy, water and waste management. The best performers are rated platinum, followed by gold and silver.

According to industry insiders, these criteria help green factories significantly reduce operational costs over time, even though they may initially cost more to set up.

Former BGMEA director Mohiuddin Rubel said that as the world increasingly prioritised ESG performance and sustainability in supply chains, this milestone enhanced the country’s global image.

According to apparel manufacturers, the move towards green factory buildings helped regain Bangladesh›s image after the Rana Plaza tragedy, which claimed 1,134 lives and left more than 2,000 injured.

Saif · May 29, 2025

We will expand new market destinations: Mahmud H Khan

As the election of the board of director of Bangladesh Garment Manufacturers and Exporters Association is approaching, Mahmud Hasan Khan (Babu), the panel leader of Forum, a contesting panel of BGMEA election for 2025-27 tenure, said his...

www.newagebd.net

We will expand new market destinations: Mahmud H Khan
Saddam Hossain 29 May, 2025, 23:06

Mahmud Hasan Khan (Babu)

As the election of the board of director of Bangladesh Garment Manufacturers and Exporters Association is approaching, Mahmud Hasan Khan (Babu), the panel leader of Forum, a contesting panel of BGMEA election for 2025-27 tenure, said his vision to expand market destination for the country’s readymade garment items.

In an interview with New Age, Babu, also the managing director of Rising Group, said that their goal is to increase stake in the nontraditional or new markets.

‘In the past ten years, the market for country’s RMG items expanded to Asian, African and Latin American markets significantly. Currently, about 20 per cent of the export earnings come from the new markets,’ he added.

Overreliance on few destinations is not ideal always, he added saying that they would work more for Japan, Australia, Brazil and other new destinations.

He also said that if they can be elected, they would closely work with the government to sign free trade agreement or preferential trading agreement as the Western countries frequently changes their tariff policies.

‘To fulfill our 14-point election manifesto, we have selected candidates’ entrepreneurial experience, professional competence, industry expertise, and technological proficiency, as well as their visionary leadership,’ he added.

He said that for the mentioned reason, the members would vote them, and if they can be elected, they will contribute to building a modern, transparent, and accountable BGMEA and in this regard.

He said that the Ministry of Commerce handles a wide range of domestic trade matters, often resulting in delays. So, they will work with the government establish a dedicated ‘Ministry of Apparel’ to faster decision-making, policy formulation and implementation.

He also said that small and medium entrepreneurs in the apparel sector have long faced numerous challenges.

‘It is crucial to ensure access to low-interest loans for SME entrepreneurs. We would work for a special fund to provide them with technology support and enhanced market access.

Regarding the industrial safety and labour rights, he said that it would introduce forced-savings among the RMG manufacturers as a solution to wage issues ahead of Eid and other festivals.

‘Bangladesh’s apparel industry is now 45 years old. Yet, it has not become truly sustainable. To build a resilient industry, we must prioritize key areas like industrial safety, labour rights, and environmental protection’, he added.

He also said that they would work for a practical and comprehensive exit policy for the factories which become unviable due to uncontrollable reasons.

Babu Said that they have a plan to establish zone-based crisis management cells to enable faster and more effective responses to any issues that arise locally.

‘The harassment faced during customs audits continues to be a major issue for us. We do not want to remain trapped in this cycle,’ he added.

He said that they work to implement a fully digitized clearance system to reduce both the time and cost of export-import operations.

He also said that they want a competent, transparent, and accountable BGMEA for the sake of a stronger national economy.

Saif · May 30, 2025

Bangladeshi RMG factories reap benefits from Better Work programme

Garment factories enrolled in the Better Work Bangladesh (BWB) programme are undergoing fewer social audits—used to assess labour and human rights risks—compared to factories not participating in the initiative. Babylon Group, which operates four knit and woven garment factories, has s

thefinancialexpress.com.bd

Bangladeshi RMG factories reap benefits from Better Work programme

FE ONLINE REPORT
Published :
May 30, 2025 10:32
Updated :
May 30, 2025 10:32

Garment factories enrolled in the Better Work Bangladesh (BWB) programme are undergoing fewer social audits—used to assess labour and human rights risks—compared to factories not participating in the initiative.

Babylon Group, which operates four knit and woven garment factories, has seen its average number of social audits drop from about 12 annually to seven or eight since joining the BWB programme. Rubaet Bin Aziz, Group General Manager of HR, Admin, and Compliance at Babylon Garments Limited, shared this information during a media visit to the company's Mirpur-based factory on Thursday.

“This reduction not only saves valuable time but also cuts annual costs by approximately Tk 10 million,” Aziz said.

Three of Babylon Group's factories have been working with the Better Work programme for the past seven years.

The media tour was organised by BWB to showcase how effective social dialogue and grievance mechanisms can lead to stronger worker-management relationships and support both economic performance and worker well-being.

A report by the International Trade Center (ITC), released in August last year, noted that Bangladesh's ready-made garment (RMG) sector continues to experience the highest average number of social audits, even as other countries like China, Vietnam, Turkey, and India have seen a decline in such assessments.

The report pointed out that excessive auditing can lead to "fatigue" and "inefficiencies" within supply chains.

Local apparel exporters echoed this concern, stating that the same auditors often conduct multiple audits throughout the year, collecting duplicate information for different buyers. This repetition, they said, disrupts production and incurs unnecessary costs.

Social audits play a key role in identifying labour and human rights risks and ensuring suppliers meet global or company-specific standards for ethical labour and supply chain practices.

The Better Work programme, a joint initiative of the International Labour Organization (ILO) and the International Finance Corporation (IFC), collaborates with governments, employers, workers, and global brands to improve labour conditions and boost competitiveness in the garment sector.

Launched in Bangladesh in 2015, the programme currently includes around 490 factories, benefiting approximately 1.3 million workers—51 per cent of whom are women—according to BWB Team Lead Syed Fazle Niaz.

Nasrin Akter, a senior operator and president of the Babylon Garments Workers Union, told The Financial Express that workers communicate their demands through the union, which negotiates with factory management.

She cited the recent announcement of a 10-day Eid-ul-Adha holiday on May 12, which came after workers requested the time off—two weeks before the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) issued similar guidance to its members.

Aziz emphasised Babylon’s commitment to fair labour practices, supported by a strong governance structure that encourages open dialogue in the workplace.

He noted that the BWB programme’s capacity-building initiatives have helped trade union leaders improve their critical thinking, debating, and listening skills—enhancing communication and ensuring better representation of worker interests.

Mr Niaz added that trade unions play a vital role in allowing workers to voice concerns democratically, ultimately contributing to long-term business sustainability.

Saif · Jun 2, 2025

Budget a bit optimistic for garment sector: BGMEA

The Bangladesh Garment Manufacturers and Exporters Association welcomed the Tk 7.9 lakh crore national budget for FY 2025–26, acknowledging its focus on inclusive and sustainable development amid a post-political transition landscape...

www.newagebd.net

Budget a bit optimistic for garment sector: BGMEA
Staff Correspondent 03 June, 2025, 00:24

The Bangladesh Garment Manufacturers and Exporters Association welcomed the Tk 7.9 lakh crore national budget for FY 2025–26, acknowledging its focus on inclusive and sustainable development amid a post-political transition landscape.

In a statement issued by BGMEA administrator Anwar Hossain on Monday, the trade body praised the emphasis on education, health, good governance, job creation, and preparation for LDC graduation.

He said that the proposed 6.5 per cent inflation target and no increase in electricity prices were positive for low-income workers and industries.

Moreover, the VAT exemptions on LNG imports and reduced duties on petroleum and diesel are expected to cut production costs.

BGMEA also lauded allocations for women entrepreneurs (Tk 125 crore), blue economy research (Tk 200 crore), climate risk mitigation (Tk 100 crore), and youth entrepreneurship (Tk 100 crore).

The RMG sector, accounting for 84 per cent of exports, is under pressure from global challenges, including US tariffs, India’s transshipment suspension, high bank interest rates, and utility price hikes.

In this context, BGMEA appreciated the decision to keep source tax and corporate tax for exporters unchanged.

Moreover, they also applauded several reforms simplifying the bond and customs system, such as extended general bond renewal terms, revised penalties, and tariff exemptions for key machinery for EPZs.

However, BGMEA expressed disappointment that some proposals, like full VAT exemptions for RMG-related services and smoother HS code and bonded operations, were not included.

The association emphasised the need for continued support to safeguard the livelihoods of 4 million people tied directly and indirectly to the industry.

Saif · 2025-06-09T19:26:07-0400

Garment exports hit $10b as raw material import costs $4b

In the third quarter (January–March) of the current 2024–25 fiscal year, Bangladesh exported ready-made garments worth a total of USD 10.34 billion (USD 1,034 crore).

en.prothomalo.com

Garment exports hit $10b as raw material import costs $4b
Staff Correspondent Dhaka
Published: 09 Jun 2025, 13: 13

Readymade garments factory AFP file photo

In the third quarter (January–March) of the current 2024–25 fiscal year, Bangladesh exported readymade garments worth a total of USD 10.34 billion (USD 1,034 crore). During the same period, USD 4.25 billion (USD 425 crore) was spent on importing raw materials.

This means that the value addition in garment exports during the last quarter stood at 58.90 per cent while in the previous quarter, the value addition stood at 61 per cent.

These figures were revealed in the latest quarterly report by Bangladesh Bank on the ready-made garment sector. The report shows that since the fourth quarter of the 2021–22 fiscal year, value addition in garment exports has been hovering around 60 per cent.

The central bank calculates the net export or value addition in the garment sector by deducting the cost of importing cotton, yarn, fabric, and accessories from total garment export earnings. Some also refer to net export income as the sector’s value addition.

The Export Promotion Bureau (EPB) had inflated export figures in the last two fiscals. The export as well as the value addition rate saw a false increase then. The Bangladesh Bank brought this discrepancy in the statistics to light in middle of last year. The export data was later revised and the value addition rate in the garment sector dropped across seven quarters in the last two fiscal years in turn.

Due to the inflated export figures, value addition in garment exports suddenly jumped from 59 per cent to over 67 per cent for the second quarter (October–December) of 2022–23 fiscal year. The value addition ranged between 70 per cent and 72 per cent in the following five quarters.

However, after the data revision, it was revealed that value addition in the January–March and April–June quarters of that fiscal year had actually dropped to 62 per cent. Meanwhile, the value addition ranged between 57.5 per cent and 61.5 per cent in all four quarters of 2023–24 fiscal year.

According to the Bangladesh Bank report, the export of readymade garments stood at USD 9.51 billion (USD 951 crore) in the first quarter (July–September) of the current fiscal year while the import of raw material was at USD 3.84 billion (USD 384 crore) resulting in a value addition of 59 per cent.

Then in the second quarter (October–December), garment exports reached USD 10.37 billion (USD 1,037 crore), with USD 4.04 billion (USD 404 crore) spent on raw materials. With this the value addition stood at 61 per cent.

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