[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

RMG exports grow 18% in Oct-Dec

Bangladesh’s readymade garments (RMG) industry has continued to expand despite global economic challenges and domestic labour unrest following the fall of the Awami League government last August, according to the latest Bangladesh Bank (BB) report.

www.thedailystar.net

RMG exports grow 18% in Oct-Dec

Bangladesh's readymade garments (RMG) industry has continued to expand despite global economic challenges and domestic labour unrest following the fall of the Awami League government last August, according to the latest Bangladesh Bank (BB) report.

Export earnings for the October-December period of fiscal year 2024-25 (FY25) stood at $10.36 billion, marking a 9 percent increase from the previous quarter.

Year-on-year, it was a growth of 18.6 percent.

"This growth was attributed to the rebound of economic activities in advanced economies along with the peak holiday shopping season in Western markets," said the central bank's quarterly review of RMG released yesterday.

Major US and European retailers typically increase their orders to meet consumer demand, it said.

The report said the apparel sector faced inflationary pressure, disruptions to supply chains, fluctuating fuel prices, and rising transportation costs. However, demand from key export markets remained strong.

Last year, the local garment sector witnessed demonstrations, national election-related movements, factory closures and production halts amid massive labour unrest after the fall of the Sheikh Hasina-led administration on August 5.

Goods shipment was severely affected in July, August, September and October due to a student-led mass movement culminating in Awami League's ouster and widespread labour unrest demanding wage hikes and an end to workplace discrimination.

On the international front, high inflation has persisted over the past few years because of the far-reaching implications of the Russia-Ukraine war that began just after the pandemic, affecting consumer demand.

But Western economies have been rebounding gradually with rising demand, for which retail sales have also been growing with the clearance of inventories of previous years in Europe and the US.

"Over the years, Bangladesh has established itself as one of the world's leading apparel manufacturers," it said.

"The growth of this sector can be attributed to competitive labour costs and a robust supply chain network," the report added.

The RMG sector contributed 11.68 percent to the gross domestic product (GDP) during the quarter.

The BB report said nine countries -- namely the US, Germany, the UK, Spain, France, the Netherlands, Italy, Canada, and Belgium -- were the primary destinations for Bangladesh's RMG exports.

These countries enabled roughly 70 percent of total RMG earnings in the second quarter of FY25.

Earnings from these markets increased by 7.13 percent compared to the preceding quarter.

Of the shipments, knitwear exports grew by 2.61 percent quarter-on-quarter to $5.48 billion.

The growth was 18 percent compared to the same quarter of the previous year, driven by strong demand from the US and European Union.

Woven garment exports rose by 17.23 percent to $4.88 billion, supported by increased consumer spending in the European and US markets.

The BB report said woven garment exports experienced notable growth, leading to a resurgence in consumer spending in major markets, particularly in Europe and the US.

"This uptick was influenced by economic recoveries and a renewed interest in apparel. Moreover, a competitive edge through cost-effective production has been maintained, offering quality woven garments at attractive prices," it said.

The report said the RMG sector continues to be affected by supply chain disruptions and increased raw material costs.

The import value of raw materials such as cotton, synthetic fibres, yarn, and textile fabrics reached $4.03 billion in the second quarter of FY25, accounting for 39 percent of total RMG export earnings.

Net export earnings stood at $6.32 billion, a 12.67 percent rise from the previous quarter.

The BB report said Bangladesh's RMG sector demonstrated strong resilience and steady growth during the October-December period of FY25, driven by increased global demand and production efficiency.

"Looking ahead, the significant performance of the RMG sector will be reaffirmed during the whole of FY25, setting a positive outlook for the coming years and positioning Bangladesh as a leading apparel exporter on the global stage," the report said.​

 

[Saif]

Bangladesh’s strategic edge amid US tariff war

The US-China trade war, along with tariffs on Mexican exports, has created a unique opportunity for Bangladesh’s ready-made garment (RMG) industry.

www.thedailystar.net

Bangladesh’s strategic edge amid US tariff war

The US-China trade war, along with tariffs on Mexican exports, has created a unique opportunity for Bangladesh's ready-made garment (RMG) industry. There is no doubt that the USA will pull out of China and Mexico after the imposition of tariffs, redirecting its sourcing mainly to Bangladesh and Vietnam, and to some extent, to countries such as Pakistan, India, and Indonesia. The key question remains: How much will Bangladesh truly gain? The extent of Bangladesh's benefit depends on how well it prepares to seize this opportunity.

The US has imposed an additional 10% tariff on China and 25% on Mexico, prompting apparel buyers to explore alternative sourcing destinations. Instead of hastily increasing capacity, as it did in the past, Bangladesh should learn from its past to map its current production capabilities and expand in a controlled manner. A data-driven approach will ensure factories align with high-value product categories, rather than overproducing cheap garments that yield lower margins.

Expanding without a clear strategy can lead to inefficiencies. The capacity-mapping focus should be on upgrading facilities, improving worker productivity through training, and adopting new technology. Businesses must avoid increasing capacity without securing sufficient demand or diversifying their product range to meet evolving buyer preferences.

Vietnam has become a leader in synthetic fibre-based garments. Bangladesh has already proved its mettle with cotton-based products; if it wishes to maximise the benefit from the opportunity at hand, it must diversify beyond cotton apparel to capture the growing demand for high-end, man-made fibre (MMF) clothing. Investing in advanced manufacturing capabilities will reduce dependence on volatile cotton prices and ensure higher profitability.

Currently, Bangladesh imports most synthetic fibres, increasing costs. Establishing domestic MMF production will enhance competitiveness while reducing reliance on foreign raw materials. Collaborations with research institutions can help drive innovation and quality improvements in MMF textiles. Existing factories must be encouraged to change their product categories to non-cotton, high-value apparel.

Bangladesh must strengthen its supply chain by investing in ports, energy, and transport networks. Reducing bureaucratic inefficiencies and streamlining regulations will enhance efficiency. Partnerships with logistics providers will minimise lead times, making Bangladesh a viable alternative to China and Mexico.

Ensuring a stable fuel and energy supply is also essential.

A business-friendly environment is key to attracting global investment. Bangladesh should encourage Chinese manufacturers to relocate operations and form joint ventures to bring in advanced technology, in addition to placing orders with the home industry. The current dollar scarcity the country is facing may indeed prove advantageous in this instance.

Mexico benefits from proximity to the US, while other countries dominate non-cotton apparel, often capitalising on LDP (landed duty paid) and DDP (delivery duty paid) terms—the two most preferred terms for US customers—over Bangladesh. Bangladesh can, however, compete through cost-efficient, high-quality production and strong ethical sourcing.

Branding Bangladesh as a sustainable and ethical sourcing destination will be crucial. Buyers prioritise environmental and social responsibility when selecting suppliers. Investments in waste reduction, water conservation, and labour rights will enhance Bangladesh's reputation and appeal to global brands.

It is also crucial for Bangladeshi suppliers to choose their buyers prudently. Similarly, it may be advantageous to convince buyers to send high-end products to Bangladesh by demonstrating profits from saved tariffs. This would create a win-win situation, provided that Bangladeshi suppliers can pitch themselves compellingly.

The author is a former director of the Bangladesh Garment Manufacturers and Exporters Association.​

 

[Saif]

Unit prices of Bangladesh’s RMG exports to the EU fell in 2024

Bangladesh’s readymade garment (RMG) exports to the European Union grew in 2024, but exporters saw unit prices decline as the growth in volume outpaced the increase in value.

www.thedailystar.net

Unit prices of Bangladesh’s RMG exports to the EU fell in 2024

Bangladesh's readymade garment (RMG) exports to the European Union grew in 2024, but exporters saw unit prices decline as the growth in volume outpaced the increase in value.

The South Asian nation's apparel shipments to the EU rose by 4.86 per cent year-on-year to $19.77 billion in 2024, according to Eurostat data.

During this period, Bangladesh exported 1,230.51 million kilogrammes (kg) of readymade garments to the EU, up 10.18 per cent from the previous year's 1,116.77 million kg.

Within a year, the per-unit price fell to $16.07 per kg in 2024 from $16.88 per kg in the previous year, marking a sharp 5 per cent drop.

Meanwhile, the EU's overall apparel imports increased by 1.53 per cent year-on-year in value to reach $92.56 billion in 2024, while the import volume grew by 8.98 per cent, according to Eurostat data.

This resulted in a 6.83 per cent decline in average unit prices, impacting major sourcing countries, including Bangladesh, said Mohiuddin Rubel, additional managing director of Denim Expert Limited.

China remained the largest apparel exporter to the EU, posting a 2.61 per cent export growth to $26.07 billion in 2024. Bangladesh ranked second, followed by Turkey and India.

All four of these countries, along with Vietnam and Cambodia, also saw declines in unit prices.

Bangladesh maintained its position as a key supplier to the EU market, but the decline in unit prices underscores the need for strategies to address profitability concerns amid global price reductions.

Rubel said falling prices highlight the challenges of maintaining profitability.

Several factors contributed to the steady rise in export volume and value growth, including the production of value-added garments, duty-free market access, adherence to workplace safety standards, and the combined efforts of manufacturers and workers.

"These developments bolstered buyers' confidence, enhancing the business environment and fortifying Bangladesh's position as a key player in the export market," he said.

Despite fluctuations throughout the year, with a slow start followed by a surge in the last quarter of 2024, Bangladesh saw substantial year-on-year growth in October, November, and December.

"This positive trend, along with increasing exports, fuelled the current growth trajectory."

While 2024 showed improvement over 2023, earnings still fell short of the levels achieved in 2022.

"Looking ahead, the outlook remains optimistic as work orders are expected to increase, sustaining the growth momentum into 2025. With buyers regaining confidence and expanding their sourcing activities in the country, the growth trend is poised to continue."

Rubel said that while Bangladesh showed resilience in maintaining export volume and value, the data reveals a critical need for strategic shifts for future growth.

"Value addition and market diversification are essential for Bangladesh to secure its competitiveness and safeguard profit margins in the face of persistent global price deflation."​

 

[Saif]

Mental health challenges of female RMG workers

After 1975, Bangladesh saw economic liberalisation leading to the growth of an export-focused ready-made garment (RMG) industry that mainly employs women. With lower wages and little resistance, factory owners maintain a comparatively cheap and stable workforce. The working conditions for these wom

thefinancialexpress.com.bd

Mental health challenges of female RMG workers
Tasfia Rahman
Published :
Feb 26, 2025 22:28
Updated :
Feb 26, 2025 22:28

After 1975, Bangladesh saw economic liberalisation leading to the growth of an export-focused ready-made garment (RMG) industry that mainly employs women. With lower wages and little resistance, factory owners maintain a comparatively cheap and stable workforce. The working conditions for these women are mostly informal, leading to a precarious job environment. The growth of the RMG sector has been influenced by political and economic factors in Bangladesh. Changes in government policies, international buyer pressure, and worker protests have shaped the industry over time.

Recently, there have been significant policy changes in the RMG sector, including updates to minimum wage laws and stricter labour law enforcement following tragedies like the Rana Plaza collapse in 2013. Recent reforms in the RMG sector have been driven by international demands and supply chain regulations. After the Rana Plaza disaster, the Bangladesh government worked with international brands and labour groups to create safety accords. These initiatives aimed to improve factory safety and compliance with regulations. The Accord was followed by the establishment of the RMG Sustainability Council in 2020, which oversees safety measures.

The economic liberalisation of the 1980s coincided with global shifts towards decentralised production. This resulted in more informal jobs with lower wages and fewer benefits. The RMG industry emerged with support from the Bangladeshi government and international institutions. Bangladesh's competitive advantage attracted foreign investment, largely due to a young workforce and weak labour laws. However, this has also led to gender inequalities, with women facing exploitative practices and limited career advancement. About 90 percent of garment workers are women, often uneducated migrants from rural areas, making them vulnerable to exploitation.

Working conditions in Dhaka's garment factories are often poor. Many workers have no formal contracts, leaving work terms unclear and giving employers significant power. Women frequently work over eight hours a day without breaks, especially during peak shipment periods. Factories are often housed in unsuitable buildings due to high land costs. The 2013 Rana Plaza collapse, which killed over 1,000 workers, highlighted these unsafe conditions. Factory spaces are cramped, and access to restrooms is inadequate. Fire safety measures are often lacking, as seen in the 2012 Tazreen Fashion factory fire.

While workers are supposed to have an eight-hour shift six days a week, many work overtime until late at night to meet deadlines. In most cases, there are no formal contracts, leaving job terms ambiguous. Workers sometimes go an entire month without a day off, despite laws stating no one can work more than 10 consecutive days without a break. Breaks are often shorter than required, and most workers are paid at unskilled labourer rates, regardless of their skills or roles.

Gender and labour dynamics within the global economy are essential to understanding the challenges female RMG workers face. Globalisation has intensified gender inequality by embedding patriarchal structures in labour markets. In Bangladesh's RMG sector, this manifests as exploitative practices and limited economic opportunities for women.

There is also a strong connection between labour conditions and mental health, particularly concerning workplace stress. High job demands combined with low autonomy can lead to significant mental health issues. This is especially relevant for women in low- and middle-income countries, where precarious labour conditions and poverty are cyclical. The gendered nature of labour-related mental health disparities highlights the importance of understanding their broader implications.

Global economic pressures, particularly from international buyers, significantly impact labour conditions. The shift to low-wage labour in developing countries is well-documented. International buyers often drive down wages and labour standards, affecting worker well-being. In Bangladesh's garment sector, international buyer pressure is pronounced, as seen in comparisons between the effects of buyer power in Bangladesh and Vietnam. Understanding local labour conditions requires considering the global economic forces at play, including pressures from international buyers.

The work is physically demanding, requiring continuous use of machines. This leads to chronic pain and illness, and workers often lack the freedom to take breaks. They face pressure to work overtime to meet shipment deadlines, causing additional stress.

Workers feel alienated from their jobs. Many do not fully understand the production process and thus lack pride in their work. However, some coping mechanisms have emerged due to changes in government regulations, such as improved labour laws, sick leave, and maternity leave, which have contributed to reducing stress levels.

The workplace is not the only source of stress; living conditions also contribute. Workers struggle to find affordable housing near factories, sometimes resulting in long commutes. Limited income restricts transportation options, increasing stress. The government has raised the minimum wage to address labour concerns, but it remains insufficient to cover living expenses. Many workers live in overcrowded conditions. Social support plays a crucial role in coping. Family members often assist with childcare and household responsibilities, providing emotional support. The introduction of mobile financial services allows workers to send money home easily, improving their ability to support their families. Stress and coping mechanisms are shaped by systemic constraints, including poor labour conditions, social stigma, and economic pressures. These factors create a challenging environment for female RMG workers, leading to high levels of stress.

To enhance the well-being of female RMG workers, recommendations include promoting gender equality, reducing stigma, improving workplace culture, integrating mental health services, and ensuring compliance with labour laws. The following actions must be taken:

1. Enhancing Coping Mechanisms: Encourage equal participation of men in household responsibilities through incentives. Educational workshops can promote shared caregiving roles.

2. Removing Stigma: Address negative stereotypes about female RMG workers through community engagement and campaigns that highlight their contributions to the economy.

3. Improving the Workplace Environment: Create a collaborative work culture through peer mentoring and transparency in decision-making processes.

4. Integrating Mental Health Services: Provide accessible mental health support through mobile platforms and on-site counselling.

5. Strengthening Labour Laws: Collaborate with international organisations to enforce labour standards and promote ethical certifications for factories.

The interplay of gender, mental health, labour conditions, and social stigma reveals complex challenges for female RMG workers in Bangladesh. Addressing these issues requires holistic interventions to promote gender equality, mental health support, and transparent labour practices. These recommendations aim for both personal and systemic empowerment.

The writer is Research Fellow, Moulovibari Research and Partnership Hub (MoRPH), Tangail, Bangladesh​

 

[Saif]

RMG workers block Dhaka-Aricha highway in Savar demanding arrears

Despite assurances of paying salaries to workers after iftar today, the officials left the factory without paying their dues

www.thedailystar.net

RMG workers block Dhaka-Aricha highway in Savar demanding arrears

Photo: Star

Workers of a ready-made garment factory blocked the Dhaka-Aricha highway last night demanding payment of two months' arrears.

Hundreds of workers of Pratik Apparels Limited, whose factory is located in Karnpara area, started the protest by blocking the highway around 7:30pm. The workers continued to block the highway till the filing of this report at 10:15pm.

The blockade caused severe traffic congestion on both sides of the highway.

The agitating workers told The Daily Star that despite several strikes like these, the factory owner has not yet paid the workers' salaries.

Despite assurances of paying salaries to workers after iftar today, the officials left the factory without paying their dues.

Later, they blocked the highway.

The aggrieved worker said they will not move from the road until the outstanding dues are paid.

Mohammad Mominul Islam Bhuiyan, superintendent of

Ashulia Industrial Police-1 told The Daily Star that the workers had been staying at the factory premises all day demanding their arrears.

The owner was supposed to pay the salary today but did not. So the workers took to the streets after iftar, he added.

"We, along with the army personnel, are at the scene. We are not getting any help from the owner. The workers are demanding their salaries but the owner is not meeting the workers," he added.​

 

[Saif]

Reality is different from perceptions about RMG sector

Bangladesh’s RMG sector has improved, but challenges in wages and rights remain.

www.thedailystar.net

Reality is different from perceptions about RMG sector

For years, discussions about Bangladesh's ready-made garment (RMG) sector have been shaped by narratives that do not always reflect the current reality. While global media often highlights past tragedies or focuses on labour concerns, it overlooks the significant strides made in safety, sustainability, and ethical business practices. However, while acknowledging these improvements, it is equally important to recognise the challenges that remain, particularly regarding workers' rights and fair wages.

As a factory owner, I have seen firsthand the transformation of our industry. Our factories have undergone rigorous upgrades, yet misconceptions persist. Changing perceptions is crucial not only for our reputation but also for ensuring sustainable growth for our workers and businesses alike. We all stand to benefit.

The collapse of Rana Plaza in 2013 was a turning point for Bangladesh's garment industry. In response, the Accord on Fire and Building Safety in Bangladesh and the Alliance for Bangladesh Worker Safety were introduced, leading to over 38,000 factory inspections and significant remediation efforts. Today, over 1,600 factories have successfully remediated safety issues under the accord, making our factories among the safest in the world.

Despite these advancements, concerns remain about compliance in smaller subcontracting factories, where enforcement is weaker. While larger exporters meet international safety standards, ongoing monitoring is needed to ensure that all workers, regardless of factory size, operate in safe conditions. Standards need to be raised across the board, and I would argue that we are, as an industry, only as good as our weakest link.

The garment sector employs over 4.2 million workers, of whom nearly 60 percent are women, according to a 2023 Bangladesh Bureau of Statistics report. While minimum wages have increased over the years, they remain a contentious issue. In November 2023, the government raised the minimum wage for RMG workers to Tk 12,500 ($113) per month, a 56 percent increase from the previous Tk 8,000 set in 2018. However, worker unions argue that this wage is still not a living wage given rising inflation and living costs.

Efforts to improve working conditions go beyond wages. Several factories have introduced healthcare facilities, childcare centres, and skill development programmes, but these benefits are not yet widespread. A stronger commitment from both government regulators and factory owners is needed to ensure that every garment worker receives fair compensation and a dignified working environment.

Bangladesh is now home to over 200 LEED-certified green garment factories, the highest number in the world. According to the US Green Building Council, investments in solar power, water recycling, and energy-efficient production have positioned Bangladesh as a leader in sustainable apparel manufacturing.

However, challenges persist. Textile dyeing remains a major environmental concern, with rivers suffering from industrial waste. While some factories have installed effluent treatment plants (ETPs), enforcement gaps allow smaller factories to discharge untreated waste. The industry must work collectively to ensure all manufacturers comply with environmental regulations. It only takes a negative report on one factory for us all to be tarred with the same brush.

One of the most effective ways to reshape perceptions is by increasing transparency. International buyers often arrive in Bangladesh with outdated assumptions about factory conditions. Factory tours provide them with firsthand insight into modern, well-equipped facilities that meet and often exceed global safety standards.

However, transparency must extend beyond factory tours. Ensuring that all labour policies are publicly documented, workers have a voice in decision-making, and violations are addressed swiftly will reinforce Bangladesh's reputation as a responsible manufacturing hub. Encouraging direct engagement between buyers and workers, rather than curated visits, will strengthen trust in our commitment to ethical production.

While the industry has made commendable progress, we cannot overlook the areas that still need improvement. Ensuring living wages, enforcing compliance in smaller factories, and addressing environmental concerns must remain priorities.

Bangladesh's RMG sector is a success story; but for it to remain sustainable, we must acknowledge both achievements and challenges. By embracing full transparency, strengthening labour rights, and reinforcing environmental responsibility, we can ensure that our industry is recognised not just for its growth, but for its commitment to fairness and ethical business practices.

As stakeholders, factory owners, workers, policymakers, and international buyers, we have a shared responsibility to uphold the integrity of Bangladesh's most vital industry. Only through collective effort can we truly transform the narrative surrounding our garment sector for both local and global audiences.

Mostafiz Uddin is managing director of Denim Expert Limited. He is also the founder and CEO of Bangladesh Denim Expo and Bangladesh Apparel Exchange (BAE).​

 

[Saif]

BKMEA seeks outstanding TK 70 billion cash assistance by 15th Ramadan

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) on Tuesday requested the interim government to release the outstanding installment of cash incentives worth TK 70 billion by 15th Ramadan. The trade body for the knitwear subsector argued for the immediate release of the cash ince

thefinancialexpress.com.bd

BKMEA seeks outstanding TK 70 billion cash assistance by 15th Ramadan
FE ONLINE REPORT
Published :
Mar 04, 2025 20:22
Updated :
Mar 04, 2025 20:22

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) on Tuesday requested the interim government to release the outstanding installment of cash incentives worth TK 70 billion by 15th Ramadan.

The trade body for the knitwear subsector argued for the immediate release of the cash incentive installment, saying delays could cause serious disruptions in the export-oriented sectors, especially the textile and garment industry.

BKMEA president Mohammad Hatem made the plea in a letter sent to the finance secretary on Tuesday.

In the letter, the BKMEA leader said that until March this year, incentive claims worth about Tk 70 billion in export subsidies or cash assistance have been submitted to the central bank for the fiscal year 2024–25.

Mr Hatem urged the Finance Division to take special measures to release the funds within the shortest possible time, preferably by 15th Ramadan before Eid.

He said that the readymade garment industry has been passing a tough time due to a number of challenges, including the changed political situation.

The prolonged labour unrests in various industrial zones have severely disrupted production, leading to factory closures and an abnormal rise in production costs, he added.

"But to maintain buyers' confidence here in the country's export industry, RMG entrepreneurs have been forced to accept work orders at prices lower than actual production costs in many cases," Mr Hatem said.

Despite an increase in orders, many factories are facing liquidity crisis, he said in the letter, highlighting the increasing pressure of wage and festival allowance payments ahead of Eid.

He warned that failure in making timely payments might lead to renewed labour unrests in the industrial sector and sought the government's support, which is crucial in maintaining stability in the sector.

Meanwhile, a commerce ministry report revealed that some 500 RMG factories are at risk of unrest over the payment of wages and festival allowances ahead of Eid-ul-Fitr.​

 

[Saif]

A story of resilience, adaptability & strategic development

Bangladesh's garment industry stands as a perfect example of economic transformation, a testament to how resilience, adaptability, and strategic foresight can reshape a nation's destiny. What began as a modest industry in the 1980s has grown to become the second-largest exporter of garments in the

thefinancialexpress.com.bd

Bangladesh's garment industry
A story of resilience, adaptability & strategic development
Manmohan Parkash
Published :
Mar 04, 2025 23:03
Updated :
Mar 04, 2025 23:03

A worker at a garment factory in Dhaka Photo : FE/Files

Bangladesh's garment industry stands as a perfect example of economic transformation, a testament to how resilience, adaptability, and strategic foresight can reshape a nation's destiny. What began as a modest industry in the 1980s has grown to become the second-largest exporter of garments in the world, following only China. This remarkable rise has not come without challenges, but it is the industry's ability to overcome adversity and evolve in the face of shifting global demands that has defined its success. Today, Bangladesh's garment sector is a symbol of determination, ingenuity, and the power of a nation harnessing its potential.

The first chapter of Bangladesh's garment story is one of sheer resilience. In the early years, the country faced a myriad of challenges: political instability, an underdeveloped infrastructure, and a population with limited skills in manufacturing. However, the most defining challenge came in the form of global competition and domestic hurdles-none more glaring than the 2013 Rana Plaza disaster. The tragedy, though heartbreaking, became a turning point in the country's commitment to improving the safety and welfare of its workers.

In response to this disaster, Bangladesh implemented rigorous reforms in factory safety, worker rights, and compliance with international labour standards. The Accord on Fire and Building Safety and Alliance for Bangladesh Worker Safety initiatives ensured that manufacturers modernised their factories, making them safer and more conducive to long-term sustainability. The tragedy, though a painful chapter, pushed the industry to its limits and forced it to confront issues that many had long overlooked. Yet, in its aftermath, the garment industry stood up stronger, with improved standards that have allowed it to retain its place in the global supply chain.

The garment sector's adaptability is perhaps its greatest strength. Over the years, Bangladesh has exhibited a remarkable ability to adjust to global market shifts and consumer demands, including the rise of fast fashion. Where many other countries failed to keep up, Bangladesh pivoted quickly, utilising its lower labour costs, growing infrastructure, and a labour force eager for work. The country's garment manufacturers became synonymous with quick turnaround times and competitive prices, positioning Bangladesh as a key player in the global fast-fashion sector.

Moreover, the industry has shown a remarkable ability to diversify. While initially focused on basic, low-cost garments, Bangladesh has become adept at producing more sophisticated and fashion-forward items. Today, it manufactures everything from jeans and jackets to sportswear and knitwear, appealing to a wide range of markets, from high-street retailers to luxury brands. This evolution speaks to Bangladesh's ability to understand and respond to the ever-changing nature of the global fashion industry.

The industry's responsiveness to sustainability trends is another testament to its adaptability. In recent years, global buyers have increasingly demanded eco-friendly and ethical practices in production. Bangladesh, ever attuned to the shifts in market expectations, has started investing in green technologies, cleaner production methods, and energy-efficient machinery. Factories are transitioning to sustainable practices, using renewable energy, water recycling, and eco-friendly fabrics. The increasing number of Platinum LEED-certified companies signify the growing commitment to sustainability, aligning with international environmental standards while fostering responsible manufacturing practices. This not only ensures continued market access but also demonstrates that Bangladesh is poised to meet the demands of a more conscientious consumer base.

Strategic foresight has been central to Bangladesh's garment industry success. The government played a crucial role in creating an enabling environment, through the development of Export Processing Zones (EPZs), bonded warehouses, and tax incentives for investors. These measures attracted foreign direct investment (FDI), allowing manufacturers to scale production, upgrade technology, and improve productivity. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has also provided a unified platform to advocate for the interests of garment manufacturers, enabling them to negotiate with both domestic and international stakeholders.

A key to the sector's success has been the robust textile supply chain that exists within the country. Bangladesh boasts a large number of textile mills that supply the fabric necessary for garment production. This local textile industry supports the garment sector, reducing reliance on imports and allowing for more cost-effective production. By building this vertically integrated supply chain, Bangladesh has positioned itself as a one-stop-shop for garment production, from fabric manufacturing to finished goods.

Equally important is the role of global market connectivity. Bangladesh has forged long-lasting relationships with international buyers, many of whom have become reliant on the country for high-volume, low-cost, and high-quality production. The country's participation in global trade agreements and its preferential access to major markets, such as the European Union (EU) and the United States (US), have further solidified its place in global supply chains. The access to duty-free imports of raw materials, coupled with competitive labour costs, has helped Bangladesh to remain at the forefront of the global garment industry.

The future of Bangladesh's garment industry is full of potential but also fraught with challenges. Rising labour costs, competition from countries with even lower wages, and pressures for further improvements in working conditions require constant adaptation. However, the industry has proven time and again that it can evolve and overcome adversity.

To remain competitive, Bangladesh must continue its focus on diversifying its product range, investing in cutting-edge technology, and nurturing a more skilled workforce. Moreover, continued investment in sustainability will be essential, as the global market increasingly demands that manufacturers adhere to environmental and ethical standards. Bangladesh is in a good position to lead this charge, as it has already begun to implement green practices and adopt new technologies that ensure it can maintain its position as a global leader in garment production.

The story of Bangladesh's garment industry is not just about cheap labour and low costs-it is a story of resilience, adaptability, and strategic development. Overcoming challenges, responding to global shifts, and continuously evolving to meet the needs of the market have made Bangladesh one of the world's largest and most successful garment exporters. As the world continues to evolve, Bangladesh's garment industry stands as a powerful example of what can be achieved with vision, perseverance, and a relentless pursuit of progress.

Manmohan Parkash is a former Senior Advisor, Office of the President, and Deputy Director General, South Asia, Asian Development Bank (ADB).​

 

[Saif]

Home textile exports witness comeback

The export of home textile products has witnessed a comeback over the past few months, owing to an improved order situation and increased production capacity...

www.newagebd.net

Home textile exports witness comeback
Saddam Hossain 06 March, 2025, 23:04

The export of home textile products has witnessed a comeback over the past few months, owing to an improved order situation and increased production capacity.

According to Export Promotion Bureau data, in the July-February period of the current financial year, the home textile sector earned $578 million, a positive growth of 5.23 per cent from $549.25 million in the same period of FY24.

The home textile sector was regarded as an emerging player in the country’s export baskets. It touched the milestone of $1 billion in export earnings as the third player, after the readymade garment, along with jute and leather.

In FY21, the sector crossed $1 billion in exports for the first time and in FY22, it bagged $1.62 billion.

However, due to an abnormal hike in gas prices and the Ukraine-Russia war, the sector’s earnings started falling. In FY23, the sector earned $1.09 billion and in FY24, the earnings dropped to $851 million.

Throughout the timeframe of more than one year, the monthly exports remained negative.

However, since November 2024, export earnings from home textiles bounced back. In July-January of FY25, the sector earned $494 million, in July-December $410.81 million and in July-November $326.83.

The EPB data stated that the sector’s earnings maintained positive growth between 5 per cent and 9 per cent throughout these months.

Momtex Limited is one of the major exporters of home textile products, with 7,500 employees and a production capacity of 6 million metres per month.

Shahjada Rubel, head of business at Momtex, told New Age that exports experienced positive growth and the factories had a handsome amount of purchase orders.

‘Due to a hike in duties in China, a number of Chinese companies shifted their production facilities in Bangladesh which impacted our exports’, he added.

However, he said, the government must focus on uninterrupted supply of gas and energy and price reductions to sustain export growth.

Industry insiders said that home textiles was one of Bangladesh’s first-line export sectors, with the ability to produce bulk products, which had also accelerated the country’s rise to global leadership.

The country’s home textile export basket includes bed linen, bed sheets and other bedroom textiles, bath linen, carpets and rugs, blankets, kitchen linen, curtains, cushions and cushion covers and quilt covers.

Talking to New Age, Mohammed Ayub Khan, senior vice-chairman of the Bangladesh Terry Towel and Linen Manufacturers and Exporters Association, said that due to the reasonable prices of yarn, the factories increased their production.​

 

[Saif]

RMG manufacturers want separate ministry

The manufacturers of the country’s readymade garment sector demanded a separate ministry for sustainable RMG and textile sector.

www.newagebd.net

RMG manufacturers want separate ministry
Staff Correspondent 08 March, 2025, 23:11

The manufacturers of the country’s readymade garment sector demanded a separate ministry for sustainable RMG and textile sector.

They also said that the RMG sector is a major source of export earnings as a single sector, but it has to face new challenges from global and local perspectives. To address these challenges, it requires a long-term policy, for which a separate ministry is necessary.

They were speaking at an Iftar event organized by the Bangladesh Garment Manufacturers and Exporters Association’s election-centric panel, Forum, in the capital on Saturday.

Mahmud Hasan Khan Babu, forum panel leader and managing director of Rising Group, said that the garment sector needs policy support for a certain period of time.

‘Domestic and foreign conspiracies are always going against this sector and a vested interest group is creating anarchy in the name of worker’s unrest at different times. It should be investigated whether politics is involved behind this,’ he added.

He also said that the entrepreneurs of this sector should be freed from customs inspections and harassment.

Rashid Ahmed Hossaini, secretary general of the Forum, said that they have learned about the identification of 700 fake voters through media outlets.

‘Their voting rights have been canceled. This is very shameful that this sector has fake voters. We want the next election to be transparent and acceptable. We should remember that the economy cannot be sustained in Bangladesh without this sector. And BGMEA cannot be turned into a party office of any particular political party,’ he added.

Former BGMEA President Anisur Rahman Sinha said that the government may have less knowledge about business, and it is the responsibility of businesses to assist the government.

‘BGMEA, as an organization, has to take a role in highlighting and resolving any problems being created.

Another former president, Anwar-ul-Alam Chowdhury (Parvez), said that BGMEA needs skilled leadership to deal with the crisis.

Rubana Huq, another former BGMEA president, said that the manufacturers want relief from many years of garbage. A transparent vote to restore the balance is necessary.

Moreover, a factory can become sick for reasons beyond its control, but there is no exit policy.

‘We urge the government to formulate a detailed exit policy. Moreover, the manufacturers should increase their bargaining with foreign buyers for fair prices,’ she added.

Meanwhile, the BGMEA election for the 2025-27 tenure is scheduled for May 28, according to the election schedule announced on Saturday.​

 

[Saif]

Lotus Silk: Weaving possibilities in a fine fabric

A group of skilled artisans in Bangladesh have now created a special scarf made from yarn derived from lotus stems, known as Lotus Silk.

en.prothomalo.com

Lotus Silk: Weaving possibilities in a fine fabric
Sheikh Saifur Rahman
Published: 08 Mar 2025, 11: 32

Extracting fiber from lotus stems

The world renowned gossamer-fine Dhaka Muslin spun from Phuti Karpas cotton disappeared from the scene. The intricate craftsmanship was lost to the world.

A few years ago, Dhaka Muslin saw a revival. A group of skilled artisans in Bangladesh achieved what was once thought impossible. They did not stop there. They have now created a special scarf made from yarn derived from lotus stems, known as Lotus Silk.

Unique properties of lotus silk

The colour of lotus silk yarn is a light milky yellow. This yarn is derived from a sticky resin found in lotus stems. The silk made from this yarn is called Lotus Silk, one of the most expensive fabrics in the world. The price of one kilogram of lotus silk yarn ranges from $2,000 to $3,500 (about Tk 427,000), and the price of fabric per yard varies between $25 and $1,000.

Countries such as Myanmar, Vietnam, and Cambodia have a long history of producing and using lotus silk. However, in Bangladesh, the use of lotus silk is a recent development.

A six-yard scarf was recently woven using the Jamdani weaving technique on a pit loom. This scarf has been presented to UNESCO and is currently displayed at the Bangladesh National Commission for UNESCO in Segunbagicha, Dhaka. Anyone interested can visit and see the scarf.

Experts and researchers believe that the successful production of lotus silk in Bangladesh has opened new doors for the textile industry. Since Bangladesh has numerous lotus-filled wetlands that remain flooded year-round, lotus stems can be collected at any time.

Artisan Achhia Begum holding her hand-woven lotus silk fabric

Prime prospects for Bangladesh

Padma (lotus) researcher and Chairman of Bengal Plants Research & Development (BPRD), Shikdar Abul Kashem Shamsuddin, expressed his optimism, saying, "Since labour costs are lower in Bangladesh, the cost of yarn spinning and fabric production will be reduced. This will make it easier for us to compete in the international market."

An eco-friendly yarn

Lotus stems contain numerous small pores that store a sticky substance. When exposed to air, this resin solidifies and is skillfully spun into yarn. This yarn dries quickly in the air without needing sunlight.

The stems of the pink lotus (Nelumbo nucifera) are ideal for producing lotus silk yarn, although other lotus varieties can also be used. Compared to cotton or mulberry silk, lotus silk is stronger, more durable, and 100% water-resistant. Though it lacks high elasticity, it does not wrinkle. This yarn is naturally lustrous, soft, and breathable, making it highly receptive to dyes that enhance its beauty.

Since lotus silk is made from natural materials, its production does not harm insects, unlike other silk industries. It requires no water or fossil fuel usage, making it a zero-carbon-emission process.

Various uses of the lotus

The pink lotus is considered sacred in Hinduism and Buddhism. One of its remarkable properties is its ability to purify water naturally. Lotus flowers are also renowned for their medicinal properties, and the pollen (stamens) of the lotus is used to make expensive herbal tea.

Lotus stems and young leaves can be cooked and eaten, while the root is an excellent source of carbohydrates. Due to its medicinal value, lotus is now commercially cultivated in various countries. White lotus petals are used to make perfumes. Countries such as China, India, Japan, Korea, Vietnam, Myanmar, Thailand, and Cambodia have diverse applications for lotus.

Commercial potential in Bangladesh

Bangladesh has 35–40 large lotus-filled wetlands, most of which are government-owned. These wetlands remain waterlogged year-round, allowing for a continuous supply of lotus stems.

When lotus stems are cut, new ones grow underwater, with a growth rate of 6–8 inches per day. This allows for at least five harvests per month. According to researcher Shikdar Abul Kashem Shamsuddin, the entire process, from stem collection to fabric production, takes about a month.

By breaking a lotus stem every inch, a sticky resin is released, which is then spun into yarn. If more stems are used, the yarn becomes thicker; if fewer stems are used, the yarn remains finer. This characteristic is similar to Phuti Karpas cotton, making it easy for Bangladeshi women to spin fine-quality yarn.

Women from Ronkoil village in Kanaipur, Faridpur, have proven this by successfully spinning excellent yarn after just three days of training. Within six months, they were able to produce ultra-fine yarn.

In Bangladesh, the best time for yarn production is from August to December, when lotus flowers are abundant. Since this silk production is directly related to agriculture, it can create a new source of income for rural women. If this project is implemented commercially, many skilled yarn spinners will emerge across different districts, making them financially independent.

Lotus silk threads in various colours

In Cambodia and Vietnam, approximately 30,000 lotus stems are needed to produce one kilogram of yarn. However, in Bangladesh, the same amount of yarn can be produced with just 15,000 lotus stems, according to Md. Ayub Ali, head of planning and implementation at the Bangladesh Handloom Board.

Key People behind the project

The Bengal Plants Research & Development (BPRD) initiated a project titled “Diversity, Usability, and Conservation of Lotus” to develop the lotus silk scarf.

Key contributors to the project include: Dr. Rakhahari Sarkar, Supernumerary professor at Dhaka University was involved in the project as an advisor. Md. Manjurul Islam, Operations Manager at the Handloom Board, assisted in yarn spinning and dyeing. He was also assisted by Md. Mohaiminul Islam, who also worked in the Muslin Project.
The lotus silk fabric was woven by master weaver Achhia Begum from Sonargaon.

Md. Tajuddin, Senior Program Officer of the Bangladesh National Commission for UNESCO, provided valuable guidance and support to implement the lotus research and of lotus silk weaving.

The research project was funded and supervised by the Bangladesh National Commission for UNESCO.

Need for proper planning

Based on the experience of the pilot project, Md. Ayub Ali believes that if Bangladesh starts commercial production, it will require fewer lotus stems than other countries to produce yarn, allowing for the production of finer-quality silk.

Additionally, jacquard and semi-automatic looms can be used to scale up fabric production.

According to analysts and researchers, lotus silk could be Bangladesh's trump card in the global luxury fashion market. With proper planning and execution, Bangladesh has the potential to carve out a unique position in the global textile industry with lotus silk.​

 

[Saif]

Sammilito Parishad demands adequate gas, electricity

Garment manufacturers and exporters demanded adequate supply of gas and electricity to production units and a reduction in bank interest rates to enhance production and exports, a leader of one of the panels that contest the Bangladesh Garment Manufacturers and Exporters Association (BGMEA)...

www.thedailystar.net

Sammilito Parishad demands adequate gas, electricity

Garment manufacturers and exporters demanded adequate supply of gas and electricity to production units and a reduction in bank interest rates to enhance production and exports, a leader of one of the panels that contest the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) polls said yesterday.

Md Abul Kalam, the leader of Sammilito Parishad, was addressing garment exporters at an iftar event organised by the panel at the Army Golf Club in Dhaka.

It is possible to increase annual garment exports to $60 billion from the current $42 billion in the next five years if adequate gas and electricity can be supplied to industrial textile and garment units, he said.

He also made a commitment to achieve this target if Sammilito Parishad wins the upcoming BGMEA elections, scheduled to be held on May 28.

Quazi Moniruzzaman, a former BGMEA president, said the apparel sector has been passing through tough times and the challenges would continue to prevail in the next few months as expenses would increase for Eid-ul-Fitr and Eid-ul-Azha.

Kutubuddin Ahmed, another former BGMEA president, urged those present to help the body's members exercise their voting rights and elect the best leaders.

SM Fazlul Hoque, a former BGMEA president, said the association has played a big role in helping the garment sector of Bangladesh to thrive, but sometimes the sector falls in trouble because of non-cooperation from some quarters.

Former BGMEA presidents Faruque Hassan, Khandoker Rafiqul Islam and Redwan Ahmed also spoke.​

 

[Saif]

Tariff commission flags textile smuggling ahead of Eid

With festivities in full swing ahead of Eid-ul-Fitr, the Bangladesh Trade and Tariff Commission has emphasised the importance of safeguarding the local textile industry against the growing influx of imported garments.

www.thedailystar.net

Tariff commission flags textile smuggling ahead of Eid
Proposes critical steps to safeguard industry

A woman browses through the apparel selection at an Aarong outlet in Dhaka. With festivities in full swing ahead of Eid-ul-Fitr, the Bangladesh Trade and Tariff Commission focused on the need for urgent intervention to protect the domestic market for textiles, especially in the face of increasing competition from imports. The photo was taken recently. Photo: Prabir Das

With festivities in full swing ahead of Eid-ul-Fitr, the Bangladesh Trade and Tariff Commission has emphasised the importance of safeguarding the local textile industry against the growing influx of imported garments.

As demand for apparel spikes during the country's largest shopping festival, the commission proposed several critical steps yesterday to counter the rising trend of imports, smuggling, and duty evasion that is threatening locally produced textiles.

According to a survey by the Bangladesh Shop Owners Association (BSOA), business worth around Tk 170,000 crore is conducted ahead of Eid-ul-Fitr, with over Tk 37,000 crore spent on clothes.

However, smuggled garments often infiltrate shopping hubs, undercutting local producers, during this lucrative time.

In its recent report, the tariff commission focused on the need for urgent intervention to protect the domestic market for textiles, especially in the face of increasing competition from imports.

The Bangladesh Jamdani Manufacturers and Exporters Association (BJMEA) raised concerns about the rising availability of imported sarees, three-piece suits, "lehengas", and other garments, which could jeopardise the livelihoods of local weavers and manufacturers.

The commission's report revealed that a significant amount of apparel enters the market through both legal and illegal channels.

The analysis shows that saree imports from India alone reached 3,300 tonnes in fiscal year 2022-2023, valued at Tk 28.26 crore, before dropping to 2,526 tonnes in FY24, valued at Tk 25.89 crore.

Similarly, in FY24, imports of three-piece dresses and "lehengas" hit 37,676 tonnes, valued at Tk 1,531.56 crore. Until December 9 of this fiscal year, 16,506 tonnes, valued at Tk 658.43 crore, were brought in.

The commission further noted that the average net price per piece of imported garments appears lower than current market prices.

Some foreign sarees and "lehengas", which should be worth over Tk 1 lakh in the local market, are being sold well below those prices, suggesting oversupply and possible links to duty evasion or smuggling.

To ensure that the actual value of these imports is properly reflected, the commission has recommended that the National Board of Revenue issue special instructions to import clearance stations for garments, including two-piece outfits, three-piece dresses, "lehengas", and sarees.

The commission also called for all garment products to come under inspection during customs clearance.

These inspections should involve relevant customs officers and third-party agencies to prevent false declarations and guarantee compliance with regulations.

Furthermore, the commission urged the Ministry of Home Affairs, in collaboration with the Directorate of Customs Intelligence and Investigation, to take strict legal action against smuggling and duty evasion.

Special operations led by Border Guard Bangladesh, police and anti-smuggling district task forces are essential to protecting the domestic market from illegal foreign textiles.

Bangladesh imports apparel from countries like India, Pakistan, China, Myanmar, Hong Kong, Vietnam, Thailand, and Japan.​

 

[Saif]

Bangladesh beats competitors in RMG export growth to US

Bangladesh has outperformed competitor countries to attain the highest year-on-year growth in apparel shipments to the US market in January, as American retailers and brands are placing large volumes of work orders here to capitalise on the favourable tariff regime.

www.thedailystar.net

Bangladesh beats competitors in RMG export growth to US

Bangladesh has outperformed competitor countries to attain the highest year-on-year growth in apparel shipments to the US market in January, as American retailers and brands are placing large volumes of work orders here to capitalise on the favourable tariff regime.

In January, garment exports to the US from Bangladesh increased by 45.93 percent year-on-year to $799.65 million, according to data from the Office of Textiles and Apparel (OTEXA) of the US.

Exporters said this happened as the Trump administration raised tariffs on imports from China and Mexico, creating an advantage for Bangladesh in the US market.

In the run-up to the presidential election, Trump had declared that he would impose high tariffs on goods imported from China, Mexico, and other countries if elected.

Right after taking office, he increased the tariff on Chinese goods from 25 percent, which he had set during his last tenure as US president, to 35 percent.

On the other hand, Bangladeshi exporters have long faced a 15.62 percent duty on exports to the US. Under the current circumstances, Bangladesh has the opportunity to increase exports to the US.

In January, the US imported garment items worth $7.20 billion from all over the world, marking a year-on-year growth of 19.46 percent.

Meanwhile, China's apparel exports to the US rose by 13.72 percent to $1.60 billion.

Correspondingly, Vietnam secured 19.90 percent growth to reach $1.44 billion, India 33.64 percent to $473.27 million, Indonesia 41.70 percent to $419.95 million, Cambodia 29.95 percent to $324.99 million, and Mexico 1.20 percent to $193.70 million.

For Pakistan, it was 17.50 percent to $179.73 million, whereas for Korea, it was 5.54 percent to $16.43 million. Honduras witnessed a decline of 26.10 percent to $112.02 million, according to the OTEXA.

In the July–February period of the current fiscal year 2024–25, Bangladesh's garment exports worldwide totalled $26.80 billion.

This represents substantial growth of 10.64 percent from the $24.22 billion attained during the same period last fiscal year.

This increase signifies the resilience and dedicated efforts of the industry towards promoting sustainability and continuous economic advancement, said Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

It is significant, considering that the global market experienced a 5 percent year-over-year decline in 2024, he said.

Breaking it down further, Bangladesh's woven exports rose by 10.22 percent, increasing from $11.30 billion in FY 2023–24 to $12.46 billion in FY 2024–25.

The knitwear sector experienced even more significant growth of 11.01 percent, with exports climbing from $12.92 billion to $14.34 billion.

"While we celebrate these achievements, our month-by-month analysis indicates some challenges ahead," Hassan said over WhatsApp.

"Following a period of strong growth in the second quarter of FY 2024–25, we observed a deceleration starting in January 2025, which continued into February," he said.

In February this year, garment exports reached $3.24 billion, marking modest growth of 1.66 percent, with woven exports slightly declining by 0.44 percent while knitwear exports grew by 3.77 percent.

"As we look ahead, we recognise the dual nature of our path—both opportunities and challenges. There are significant internal factors that the government is earnestly working to address, and the industry itself is making proactive adjustments," he said.

Declining price levels remain a major concern that necessitates strategic actions to remodel the business, said Hassan.

Conversely, the potential for growth in various items, fibres, and markets, alongside trade diversification due to geopolitical tensions and trade wars, presents immense opportunities for Bangladesh, he added.​

 

[Saif]

The rise and fall of Dhaka muslin

Dhaka muslin: a fabled fabric from Bengal, prized worldwide, vanished quickly.

www.thedailystar.net

The rise and fall of Dhaka muslin

A demonstration proving true a claim passed through the generations that Muslin fabric is so fine that a six-yard sari could be passed through a ring. Photo: Star file/ Rashed Shumon

I grew up reading many Greek myths—whether it was about Sisyphus's exercise in futility, Prometheus's gift of fire to humanity, or Orpheus's fatal mistake of looking back at his beloved in the underworld. Those myths may be far-fetched, but what felt real enough to touch were the myths around the fabled fabric—Dhaka muslin. Something about living in the world's largest delta through which the Meghna River flows made it so. The river being shrouded by fog, young women with nimble hands weaving away and singing sweet melodies, and the supple softness of the fabric that was believed to be made under water—all these made for perfect conditions for any passerby to spin the myth of mermaids melodising in the mist.

The entire process of its production, from extracting the cotton fibre from a yellow flowering plant, Phuti karpas, that grew along the Meghna River to the fabric adorning royalty, involved 16 very elaborate steps that were carried out in different areas around Dhaka. The fibre was carefully cleaned using boal fish teeth attached to its jawbone. Bowls of water were scattered around during the process of spinning as it aided in the moistening of the air-humidity being a key ingredient to stretch it. The spinning would often take place in boats when humidity was at its peak, in early mornings and late afternoons. Young women carried out this task with their supple fingers and enviable eyesight. The fabric travelled the rich lands of Bengal and the hands of both the old and young before travelling the world. The Mughals refused to have their portraits drawn adorned in anything else but muslin. To the East, it went to Java and China, where in the early 14th century, the traveller Ibn Battuta wrote that it was highly prized. This fabric was what members of high society in Europe wore and scandalised entire courts by being accused of indecency in public. As such a fine fabric was unheard of and seldom seen in the West—it captivated the likes of Queen Marie Antoinette, Empress Joséphine Bonaparte, and the esteemed author Jane Austen. However, as quickly as the fabric took the aristocrats of the East and West by storm, it also disappeared in a blink of an eye.

My experience of seeing pieces of Dhaka muslin in the Victoria and Albert Museum in London was a conflicted one. A part of me was glad to see the fabled fabric so beautifully preserved. So many wonderful epithets given to muslin by historians played in my head, like "vapours of dawn," and "woven wind." But another part of me was pained, thinking about the "kothis," the Mughals put muslin artisans into that subjected them to extremely harsh conditions, and the unrelenting greed of British colonialism that made this pride of Bengal go extinct. I have heard from disgruntled uncles sipping their late afternoon tea saying that the British cut off the thumbs of the muslin workers to ascertain the production of muslin dried up sooner than their blood spilled to the ground. Aunties discussed, while chopping vegetables, that acres of this fabric could be tucked into their less-than-modestly sized engagement rings.

The capitalist East India Company had no regard for the convoluted nature of how the muslin was made, it only cared that the demand was met. Hence, pressure was put on the artisans of muslin till they cracked. Moreover, the British took advantage of the demand for muslin and hard launched the discount "muslin" produced in the cotton mills of dreary England.

Unfortunately, the cheaper prices they could offer far outweighed the need for the finesse of the real deal. This resulted in the cotton industry of Bengal coming to a screeching halt, and muslin artisans sought employment elsewhere. Fuel was added to the ravaging fire with the famines orchestrated by the terrible policies of the British colonisers in Bengal, which killed off many of these talented artisans. With their death, the intricate technique of weaving muslin was buried. Perhaps to mourn such a misfortune, Phuti karpas went extinct along the banks of Meghna.

The fabled fabric reached up to 1200 thread counts and today's rendition of "muslin" comes nowhere close—like an underachieving son making a mockery of the family name. However, there have been noteworthy efforts to revive the lost art of muslin weaving, which serves as a glimmer of hope for us to perhaps one day be adorned by this "woven wind," which has been a favourite topic of every textile historian. Moreover, Dhaka and its surrounding areas later developed the traditional art of "jamdani" weaving fortunately, which has been protected as a form of intangible cultural heritage in 2013 by UNESCO.

As is quite evident, the success of the Bangladeshi garment industry, which is worth $47 billion today is not without precedence. But perhaps the rise and fall of muslin serves as a cautionary tale of artisans being squeezed to their limits and also that the extreme industrialisation of any product will result in those crafts being endangered and ultimately going extinct.

Raina Sabanta is a barrister.​

 

[Saif]

Prices of garments shipped to US, EU see a decline

In recent months, Bangladesh’s garment shipments to major markets such as the European Union (EU) and the US have rebounded strongly, but the price per unit has declined.

www.thedailystar.net

Prices of garments shipped to US, EU see a decline

If Bangladesh can ensure better quality and timely delivery, buyers will be willing to pay more, said Faruque Hassan, a former president of the BGMEA. Photo: Star/file

In recent months, Bangladesh's garment shipments to major markets such as the European Union (EU) and the US have rebounded strongly, but the price per unit has declined.

International clothing retailers and brands consistently pressure local suppliers to lower prices, even while paying higher rates for sourcing garments from other countries.

For instance, in January this year, the unit price of garments shipped from Bangladesh to the US decreased by 2.20 percent, according to data from the Office of Textiles and Apparel (OTEXA) of the US. However, the value of exports grew by 45.93 percent year-on-year in January, reaching $799.65 million.

In January, the volume of exports to the US increased by 49.21 percent from Bangladesh, 17.05 percent from Vietnam, 9.36 percent from China, and 18.49 percent globally.

Similarly, the unit price of locally made garments shipped to the EU decreased by 4.84 percent in the January–December period last year, according to the latest data from Eurostat, the statistical office of the bloc.

Bangladesh's garment exports to the EU grew by 4.86 percent to $19.77 billion last year. By volume, exports increased by 10.18 percent in the same period, while China recorded a rise of 12.05 percent. The EU's total apparel imports grew by 8.98 percent.

The unit price of the EU's global apparel imports fell by 6.83 percent, significantly influenced by China's 8.43 percent price reduction. Price cuts by Vietnam and Cambodia were also notable.

A free trade agreement (FTA) between the EU and Vietnam, in effect since 2021, has granted Vietnam the preferential benefit of a gradual removal of tariffs, exporters said.

Historically, Bangladeshi garment exporters have received lower prices than those in competing countries.

"The overall price of garment items traded globally declined last year and continues to do so this year," said Faruque Hassan, managing director of Giant Group and a former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

This decline is due to a drop in the prices of raw materials such as cotton, yarn, fabrics, and freight charges, he added.

The volume of work orders from international clothing retailers and brands is now increasing as major economies like the EU and the US rebound, Hassan said.

Bangladesh's lead time is high, and local manufacturers primarily produce low- and mid-price-range garment items, for which retailers and brands pay lower prices, he noted. However, an increasing number of local manufacturers are now exporting high-end garment items that command higher prices.

"If the country can ensure better quality and timely delivery, buyers will be willing to pay more. Additionally, unhealthy price competition among local manufacturers is another factor behind the low prices paid by buyers," Hassan said.

Mohiuddin Rubel, managing director of Bangladesh Apparel Exchange, said the competitiveness of local exporters remains lower than that of competing countries, which weakens their bargaining power.

In the July–February period of the current fiscal year, Bangladesh's garment exports grew by 10.64 percent to $26.79 billion, according to data from the Export Promotion Bureau (EPB).

Of this amount, exports to the EU—accounting for 50.10 percent of Bangladesh's total RMG exports—were valued at $13.42 billion.

Meanwhile, exports to the US reached $5.06 billion, representing 18.91 percent of the total share. Canada's exports totalled $845 million with a 3.16 percent market share, while the UK market accounted for $2.93 billion, representing 10.94 percent.

The value of RMG exports to the EU grew by 11.53 percent year-over-year, while exports to the US saw a strong increase of 16.38 percent and Canada 14.12 percent. However, RMG exports to the UK exhibited a more modest growth rate of 3.74 percent, according to EPB data compiled by the BGMEA.

Bangladesh's RMG sector also recorded 6.23 percent growth in non-traditional markets, reaching $4.52 billion and accounting for 16.90 percent of total exports.​

 

[Saif]

RMG value addition wanes, yet to rise to pre-pandemic level

Value-addition to Bangladesh's ready-made garments (RMG) that has been fluctuating in recent years has yet to reach the pre-pandemic level, as higher cost of raw-material imports eats into the export gains. Exporters mainly blame the rise in raw-material imports, especially that of yarn, for such

thefinancialexpress.com.bd

High raw-material import costs, low product prices
RMG value addition wanes, yet to rise to pre-pandemic level
Quick switch to MMF fabrics seen as booster
Monira Munni
Published :
Mar 15, 2025 23:45
Updated :
Mar 15, 2025 23:45

Value-addition to Bangladesh's ready-made garments (RMG) that has been fluctuating in recent years has yet to reach the pre-pandemic level, as higher cost of raw-material imports eats into the export gains.

Exporters mainly blame the rise in raw-material imports, especially that of yarn, for such subdued returns as prices of locally made garments have also been declining in the post-Covid period.

Local RMG items' value addition remained almost static between 60 per cent and 64 per cent since fiscal year (FY) 2012-13 until FY2018-19, according to Bangladesh Bank data.

But a data analysis shows a fluctuating trend, with a decline to 56.49 per cent in FY20 while a rise up to 59.13 per cent in FY21. The rate again dipped to 54.38 per cent in FY22 while rose to 58.11 per cent and 60.13 per cent in FY 23 and FY 24 respectively.

In FY24, Bangladesh received US$36.13 billion from apparel exports, while it imported raw materials worth $14.40 billion. Thus, the country's net value of RMG exports stood at $21.72 billion in FY24, showing a 60.13-percent value addition.

The percentage remained static at 60.09 per cent during the first half (H1) of the current fiscal of 2024-25, as net RMG exports amounted to $11.94 billion against total exports worth $19.88 billion and raw-material imports worth $7.93 billion.

The value addition remained lower than the pre-pandemic 64.32 per cent in FY19, data showed.

The central bank considered the main head value of the components (raw cotton, synthetic/viscose fibre, synthetic/mixed yarn, cotton yarn, textile fabrics, and accessories for garments) instead of only raw materials - brought through back-to-back LCs, according to its latest quarterly report.

Meanwhile, industry-insiders have said Bangladesh is largely dependent on imported raw materials, such as cotton, petro-chemicals and chemicals, despite being the second-largest exporter of garments.

"The value addition in the knitwear sub-sector is higher than in the woven segment, as the former sources 80 per cent of its necessary raw materials from local market, while woven is largely dependent on imported fabrics," says one of the sources.

When asked, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) executive president Fazlee Shamim Ehsan said that prices of locally made garments have been decreasing over the years while costs of imports increasing.

He, however, said they were now producing many high-value-added items, and because of producing these items, their dependence on imported raw materials also increased as Bangladesh does not produce all the required fabrics, especially those of man-made ones.

As a result, value addition in RMG still remains pegged in the current position.

Otherwise, the value-addition rate would have been much lower, as prices of garment items have not increased in line with prices of raw materials and cost of production, the exporter notes.

"Value addition to knit items is higher compared to that of woven," he said, explaining that it is because they mostly manufacture products after total processing-yarn manufacturing, knitting and dying-in the country.

On the other hand, buyers have their own nominations - mostly for fabric sourcing, washing and embroidery from third countries - in case of woven garments, he notes.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) former President Faruque Hassan explains that yarn import last year increased significantly, putting an impact on value addition.

He, however, says value addition in the processes of knitting, dyeing, finishing, printing and embroidery has increased though it is yet to reach the requisite level.

Asif Ashraf, former vice -president of BGMEA, however, differs on this score. He says that value addition is not decreasing in recent years.

He, however, says last year cotton import decreased and yarn import increased as spinners couldn't produce yarn mainly because of gas shortage.

"On the other hand, India has been exporting yarn here in the country at a dumping rate," he notes, adding that if yarn import rises, value addition would fall.

Besides, the global demand for garment items made of non-cotton or man-made fibres has been on the increase, whereas Bangladesh largely produces cotton-based items, the apparel-sector leaders noted.

Government policy support is needed to attract investment in producing man-made fibre-based garments - not only to increase value addition but also to face the post-graduation challenges and remain competitive, they added.

Sector leaders have requested the government for providing required policy supports, including cash incentives, for non-cotton or man-made fibre production as well as soft loan to attract investment in this segment.

According to Bangladesh Textile Mills Association (BTMA), yarn imports witnessed a significant surge in 2024.

Bangladesh imported 680.43 million kilograms of cotton yarn under bonded facility last year, which was 39.16-percent higher than the 2023 figure of 488.96 million kgs.

Besides, the imports of woven and knit fabrics recorded a 20.02-percent and a 38.35-percent rise, respectively, in 2024.​

 

[Saif]

RMG exports to major destinations increase

The exports of the country’s readymade garment items witnessed substantial growth to its major destinations in the past eight months (July-February) of the current financial year 2024-25...

www.newagebd.net

RMG exports to major destinations increase
Staff Correspondent 15 March, 2025, 22:39

A file photo shows a female worker works at a garment factory in the capital. The exports of the country’s readymade garment items witnessed substantial growth to its major destinations in the past eight months (July-February) of the current financial year 2024-25. | New Age photo

The exports of the country’s readymade garment items witnessed substantial growth to its major destinations in the past eight months (July-February) of the current financial year 2024-25.

According to the country-wise detailed export data of the Export Promotion Bureau and compiled by the Bangladesh Garment Manufacturers and Exporters Association, Bangladesh exported RMG items worth $26.8 billion in July-February of FY25, a moderate increase of 10.64 per cent, from $24.22 billion in the same period of FY24.

Apparel exporters said that, thanks to the growing demands of brands and retailers, export earnings maintained a growth momentum despite the political transition since August 5.

In the July-February period of FY25, Bangladesh bagged $13.42 billion from the European Union countries, the largest market of Bangladeshi manufacturers. This is 11.53 percent higher than the $12.03 billion earned in the same period of FY25. The export earnings from the EU accounted for 50.10 per cent of the total earnings.

Export earnings from the US witnessed a robust growth of 16.38 percent to $5.07 billion, up from $4.35 billion in the July-February period of FY24. The US, the largest single destination for exporters, represented an 18.91 per cent share of the total earnings.

Fetching a positive growth of 3.74 per cent, Bangladeshi apparel exporters earned $2.92 billion in July-February of FY25 from the UK, higher from $2.82 billion in the same period of FY24, the EPB data stated.

From Canada, the RMG sector earned $845.55 million in July-February of FY25, 14.12 per cent more than the $740.91 million earned in the same period of FY24.

Germany remained the largest export destination within the EU countries, from where Bangladeshi RMG manufacturers bagged $3.38 billion in July-February of FY25.

Followed by Germany, the export earnings from Spain stood at $2.35 billion, France at $1.43 billion, Italy at $1.05 billion, Poland at $1.13 billion, and the Netherlands at $1.43 billion, the EPB data stated.

Regarding apparel exports, countries like the US, Canada, the UK, and the EU are considered traditional markets, while other countries are deemed non-traditional. Japan, Australia, Russia, India, China, South Korea, UAE, Malaysia, Brazil, and Mexico are major non-traditional export destinations.

Export earnings from the nontraditional market also demonstrated positive growth, with an overall surge of 6.23 percent reaching $4.52 billion, which was $4.26 billion in the FY24 period.

The nontraditional market represented 16.90 per cent of Bangladesh’s total RMG exports. Among these markets, Japan led with imports worth $839 million from Bangladesh, followed by Australia at $582 million and India at $478 million.

Moreover, RMG exports to Turkey and Mexico also witnessed significant earnings, amounting to $305 million and $229 million, respectively.

EPB data showed that export earnings from almost all major destinations experienced a double-digit growth rate during the July-February period.

Talking to New Age, Mohiuddin Rubel, former director of the BGMEA, said that Bangladesh’s ongoing growth in exports significantly depends on the EU and USA, which continue to be its main markets.

The moderate growth in the non-traditional market underscores the importance of further research and focus in this category, as it possesses substantial growth potential, which will also help to balance reliance on traditional markets, he added.

He also said there should be a dedicated emphasis on investing in backward linkages to bolster and enhance the RMG sector’s competitiveness and growth potential, as remaining competitive throughout is always essential.​

 

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BGMEA seeks Tk 500cr from unpaid incentives

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) yesterday urged the government to release Tk 500 crore in due export incentives to help small and medium enterprises (SMEs) pay workers’ bonuses and other dues ahead of the upcoming Eid-ul-Fitr.

www.thedailystar.net

BGMEA seeks Tk 500cr from unpaid incentives
Will use it for Eid payment

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) yesterday urged the government to release Tk 500 crore in due export incentives to help small and medium enterprises (SMEs) pay workers' bonuses and other dues ahead of the upcoming Eid-ul-Fitr.

The finance ministry agreed in principle to release Tk 325 crore soon, said BGMEA Administrator Anwar Hossain over the phone after meeting finance ministry officials at the secretariat in Dhaka.

Hossain also requested the banking division secretary of the finance ministry not to adjust the incentive with bank loans before Eid payments, as SMEs lack financial capacity due to the sluggish economic situation.

To facilitate payments to workers, the finance ministry and the central bank last week disbursed Tk 2,000 crore in cash incentives on export receipts to garment exporters.

Hossain said the upcoming Eid is unique in terms of salary payments. "This is not a good time for businesses, as they are facing various difficulties."

"Moreover, factories must pay salaries for February, half of the salary for March, and the full Eid-ul-Fitr bonus. So, although business has not been good, expenses remain high," the BGMEA administrator added.

The labour and employment ministry last week instructed factories to clear all arrears, salaries, and bonuses by the 20th day of Ramadan.

According to intelligence reports and the BGMEA's assessment, nearly 150 factories are in a vulnerable position regarding worker payments ahead of Eid due to financial constraints, Hossain said.

However, the BGMEA and concerned banks are continuously working on the issue. The disbursement of cash incentives last week solved the problem to a great extent, he said.

Now, the BGMEA is working to resolve the financial issues of 42 factories. It appears that the disbursement of Tk 325 crore will address major problems plaguing these factories, he added.

Ultimately, only three to four factories will face difficulties due to their dire financial condition, Hossain said.

This year, many factories, the majority being garment units, either faced closure or shut down temporarily due to political and labour unrest following last year's political changeover.​

 

[Saif]

It’s time Bangladesh built its own global apparel brand

Why can’t Bangladesh have its own global apparel brand?

www.thedailystar.net

It’s time Bangladesh built its own global apparel brand

File photo: Star

Several years ago, while preparing for one of our brand management classes at Dhaka University, we searched for a suitable example of a brand that significantly contributes to a country's GDP. We found a few well-known brands from the US, such as Coca-Cola, Google, and Amazon. However, their contributions to GDP were not substantial, given the vast size of the American economy. One brand that caught our attention in Asia was Samsung, which seemed to have a significant impact on South Korea's GDP. According to a 2015 article published in The New York Times, the Samsung brand accounted for one-fifth of South Korea's exports and contributed approximately 17 percent of its GDP. Reflecting on the considerable impact of a single brand on a country's economy, we began to contemplate Bangladesh's RMG industry. The RMG industry contributed about 82 percent of total exports and 12.69 percent of our GDP in FY2015-16. We tried to identify notable brands from the sector, but could not find any. Consequently, we intended to raise this point during the next brand management class discussion, but unfortunately, it was unsuccessful.

After further investigation, we realised that Bangladesh primarily manufactures products for others, concentrating significantly on lower-value-added goods. While the sector does produce some higher-value-added products for major brands, the quantities are relatively small. Further analysis indicated that we have substantial expertise in both lower- and higher-value-added manufacturing, as the sector has been operating for over 35 years, and we possess the necessary hard and soft resources to produce all types of RMG products. This encouraging discovery led to some questions: when we are highly equipped, why do we only produce for others? Why can't Bangladesh have its own global brand? We only get paid for stitching; the company that owns the brand enjoys the major share of the pie.

In 2017, Dhaka University hosted a seminar outlining the roadmap for Bangladesh to achieve its $50 billion target for the RMG sector by 2021. We posed a question to the chief guest, who was both an RMG businessman and the state minister of an important ministry. We asked how realistic and sustainable the roadmap could be without our own Bangladeshi brand. He replied that we are not yet at a stage where we can have our own brand. This made me wonder why, despite having a mature industry and exceptional expertise in both hard and soft resources, we do not recognise the significance and necessity of establishing Bangladeshi RMG brands for the international market. Later, while conducting an ILO-funded research in the RMG sector, we asked the same question to several decision-makers from major RMG firms in Bangladesh. Most of their responses were along the line of "creating a brand is expensive and demands a significant time commitment. It also entails considerable risks, as we are collaborating with big brands. We certainly want to avoid threatening our existing business."

The insights they shared are indeed true. However, Bangladesh has a comparative advantage over other nations from both the supply and demand sides. We have the necessary infrastructure, manufacturing efficiency, and the presence of feeder industries; thus, the upstream value chain is mostly well-established, except for occasional vulnerabilities in yarn supply. Additionally, Bangladesh is familiar with the downstream value chain as it effectively utilises it for its buyers. Consequently, establishing this chain would be less challenging, aside from the need for acceptance from independent international retailers and their willingness to feature Bangladeshi brands on their shelves, as well as consumer preference for these brands.

Bangladesh is strongly positioned to gain preference from both retailers and consumers. This is because these key downstream actors recognise that Bangladesh can produce high-quality products as a country of origin. Bangladesh has been manufacturing top-notch clothing for brands like Tommy Hilfiger, Giorgio Armani, Hugo Boss, Zara, and H&M, with "Made in Bangladesh" tags on the clothing that customers see. Therefore, the country-of-origin-based points of differentiation are already acknowledged by both retailers and end customers. If customers encounter a new brand that is of good quality and carries a "Made in Bangladesh" tag, they are unlikely to dismiss the brand outright. Besides those who are hardcore loyal to a particular brand, many customers will certainly be interested in trying the new brand from Bangladesh.

According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA), our apparel exports worldwide reached $38.48 billion in 2024. Although we still have considerable progress to make to achieve the previously set $50 billion target, there are ample opportunities to extend this goal within the $1.84 trillion global market. Unfortunately, without owning brands and benefiting from the premiums that established brands command in the value chain, it will be challenging for Bangladesh to capitalise on the available opportunities in the global clothing market. Creating and sustaining a brand in the international market is an expensive endeavour. However, a few companies have the financial capacity to do so. If it seems too costly and risky for major RMG players, a consortium could be established to create and develop a Bangladeshi apparel brand, allowing for shared risks. BGMEA could lead this initiative.

Let us conclude with the Samsung story. Samsung has inspired other South Korean brands like SK, Hyundai, and LG, and nearly half of South Korea's GDP comes from Samsung and its success-inspired brands. These companies compete globally—most are going head-to-head and succeeding in their respective industries. They are sometimes viewed as the frontrunners of innovation in their fields. When will Bangladesh witness a day when it can proudly say our apparel brands are the market leaders and innovators in the global apparel industry?

Dr Muhammad Ismail Hossain and Dr Nasrin Akter are professors in the Department of Marketing at the University of Dhaka.​