[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Over 450 textile, RMG units cut freshwater usage by 35b litres

Over 450 textiles and readymade garment factories in Bangladesh under IFC-led programme ‘Partnership for Cleaner Textile’ have reduced freshwater consumption by 35 billion litres and cut wastewater discharge by 29 billion litres annually...

www.newagebd.net

Over 450 textile, RMG units cut freshwater usage by 35b litres
Staff Correspondent 02 June, 2024, 22:36

A file photo shows workers sewing clothes at a readymade garment factory at Savar, on the outskirts of Dhaka. | New Age photo

Over 450 textiles and readymade garment factories in Bangladesh under IFC-led programme 'Partnership for Cleaner Textile' have reduced freshwater consumption by 35 billion litres and cut wastewater discharge by 29 billion litres annually.

On the occasion of the 10-year anniversary of the PaCT programme, International Finance Corporation stated that freshwater saved through the reduced consumption under the initiative could meet the annual water need of over 1.9 million people.

Now, these factories save 3.8 million megawatt hours in energy per year and have reduced carbon emissions by 7,23,617 tonnes annually — equivalent to removing nearly 1,60,000 cars from the road each year.

To bring systemic and positive change to the textile value chain in Bangladesh, IFC's partnership for PaCT programme has catalysed transformative change over the last 10 years, contributing to the sector's competitiveness and environmental sustainability, the statement said.

The advisory programme PaCT — supported by Denmark and the Netherlands —is spearheaded by IFC and implemented in collaboration with the Bangladesh Garment Manufacturers and Exporters Association.

Over the years, PaCT has also been working with leading partners, including VF Corp, PUMA, Levi Strauss & Co and TESCO.

'Let me stress how pleased we are to see that PaCT has become a market leader in both its scale and comprehensiveness of its activities, especially on advisory support for energy efficiency and renewable energy,' said Denmark ambassador to Bangladesh Christian Brix Moller.

According to IFC, the PaCT programme was launched to support the entire textile value chain — spinning, weaving, wet processing and garment factories — in adopting cleaner production practices.

The programme engaged with brands, technology suppliers, industrial associations, financial institutions and the government to bring about systemic and positive environmental changes in Bangladesh's textile sector, contributing to its long-term competitiveness and environmental sustainability.

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[Bilal9]

RMG sees 10% growth in new markets

Bangladesh's RMG sector exhibited an overall growth of 4.97% during the fiscal 2023-24

Bangladesh' ready-made garment exports to new markets witnessed robust growth of 10%, reaching a total of $7.70 billion in July-April of FY24, compared to $7 billion in the equivalent period of the previous fiscal year.

Among major newly explored markets, shipments to Japan rose to $1.4 billion, reflecting a 6.14% increase. While exports to Australia and South Korea showed substantial rises of 17.18% and 14.73%, respectively.

Bangladesh' RMG exports to the Middle East markets also showcased notable growth. Exports to Saudi Arabia increased by 58%, while Turkey and the UAE recorded growth rates of 54% and 41.96%, respectively.

According to Export Promotion Bureau (EPB) data, overall exports to global markets reached an impressive total of $40.49 billion, compared to $38.57 billion in the first ten months of FY23.

"We have already achieved double-digit growth in these new markets," he said. "Our market share in the new markets has reached close to 20%. If the government continues its policy support, especially cash incentives, until 2029, our market share in new markets will be higher, which will help diversify our markets."

Kochi emphasized that Japan, Australia, South Korea, China, Russia, and other Middle East markets have the potential for further growth. He urged the government to introduce alternative incentives for apparel exports, similar to those provided by competitor countries, to enhance competitiveness.
The BGMEA president noted that India has been providing various incentives to its exporters, although the country only graduated from LDC status in 2007.
Bangladesh's RMG sector exhibited an overall growth of 4.97% during the fiscal 2023-24. According to EPB data, exports to the EU totaled $19.90 billion, with 3.66% growth, driven by strong performances in several key EU markets.

RMG exports to Spain, France, the Netherlands, Poland, and Denmark grew by 6.07%, 3.42%, 17.51%, 20.65%, and 32%, respectively.

Apparel exports from Bangladesh to the UK and Canada reached $4.8 billion and $1.26 million, respectively.

Speaking about the RMG sector, the BGMEA president said, "When our Europe-America market began to recover post-Covid, our business slowed down again due to the Ukraine-Russia war. Our exports have suffered to some extent, but we still managed to maintain growth compared to other competing countries."

However, apparel exports to neighboring India declined by 22.44%. This decline has been noticeable since August 2023.

 

[Saif]

However, apparel exports to neighboring India declined by 22.44%. This decline has been noticeable since August 2023.

India's penny pinching bureaucrats are the main culprits for the decline of Bangladesh's exports to India. This I call exploitation of Bangladesh by our big neighbor---India.

 

[Saif]

SBTi debate has major implications for RMG suppliers

The carbon offsetting schemes that have been discredited in the past could be improved

www.thedailystar.net

SBTi debate has major implications for RMG suppliers

VISUAL: STAR

A row has broken out about the Science Based Targets initiative (SBTi), a corporate climate action organisation, which could have significant implications for garment manufacturers around the world, depending on how it plays out. The SBTi is the world's best-known initiative that supports global enterprises in their efforts to reduce carbon emissions in line with sciences aligned with global agreements such as the Paris Agreement. Many of the world's largest fashion brands have set science-based targets for 2030 and beyond.

The biggest challenge in meeting these targets has been in reducing Scope 3 emissions—in supply chains, essentially. For fashion brands, reducing the amount of CO2 emissions related to garment production and textile processing is a huge task, especially given that so much of this manufacturing takes place in countries that use "dirty" energy such as fuel and gas.

Up until now, the SBTi has indicated that in order to meet their science-based targets, signatories must make absolute reductions in their carbon emissions. In order to do this, they would need to support their supply chains in the transition to renewable energy sources.

This is no easy task. It also explains why fashion brands have been in prolonged conversations with their suppliers in recent years to look at how they can measure and reduce carbon emissions.

Recently, however, the SBTi issued a statement suggesting they would, moving forward, allow voluntary carbon offsetting schemes to contribute to CO2 emissions reduction targets in supply chains. This news was significant for the fashion industry as many brands are indeed struggling to reduce Scope 3 emissions while also hitting business growth targets.

To read the rest of the news, please click on the link above.​

 

[Saif]

Local spinners losing yarn market to import surge

Due to higher cost of production, domestic textile millers, especially spinners, are facing 'uneven' competition with their foreign competitors and losing orders for yarn even from the local readymade-garment exporters. The RMG exporters now prefer sourcing the raw material from abroad, hinderin

thefinancialexpress.com.bd

Local spinners losing yarn market to import surge
MONIRA MUNNI
Published :
Jun 05, 2024 01:27
Updated :
Jun 05, 2024 01:27

Due to higher cost of production, domestic textile millers, especially spinners, are facing 'uneven' competition with their foreign competitors and losing orders for yarn even from the local readymade-garment exporters.

The RMG exporters now prefer sourcing the raw material from abroad, hindering further growth of the local spinning sector.

According to the central bank data, imports of yarn recorded a double digit growth during the first nine months of the current fiscal year (FY) while imports fell in cases of other raw materials like raw cotton, textile and articles, and staple fibre.

Yarn import recorded a growth of over 10 per cent during July-March period of FY 2023-24 compared to the corresponding period of the last FY, according to Bangladesh Bank data.

Bangladesh imported yarn worth US$2.32 billion during the period which was US$2.10 billion in July-March period of FY 2022-23.

Overall imports of RMG inputs recorded a 9.1 per cent decline during the first nine months - raw cotton 24.9 per cent, followed by textile and articles 8.2 per cent, staple fibre 6.1 per cent and dying and tanning materials 3.1 per cent.

During the period under review, the country spent US$12.17 billion in importing those goods which was US$13.39 billion in the corresponding period of last fiscal.

Exporters said the price of locally produced yarn is higher than the imported variety while textile millers argued that the high costs of utilities and poor gas supply pushed up their production cost and it resulted in higher prices of locally made yarn.

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