[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Growing demand in denim item has created new opportunity

Breaking News, International News & Multimedia

thedailynewnation.com

Growing demand in denim item has created new opportunity​

1 Mar 2024, 12:00 am

Staff Reporter :

Increase in consumption of denim items internationally has created a new opportunity for Bangladesh and the local entrepreneurs are desperate to grab a share of the growing market.

The local exporters are now competing with China, Pakistan, Vietnam, Turkey and Mexico as the size of the global denim is expected to stand at over $76 billion by 2026.

The entrepreneurs are showing interest in producing the items as most of the fabrics used in the denim sector are being manufactured in the country, which is popular in various countries like the USA and Europe.

The share of Bangladeshi denim in the US market is over 22 per cent and 27 per cent in the EU market. Denim shipment to the US and EU has increased by 42 per cent and 15 per cent respectively in just one year.

Following this, local entrepreneurs have invested nearly Tk 25,000 crore in the denim segment of the primary textile sector, which already has 42 modern mills capable of supplying over 900 million metres of denim fabrics each year, according to data of the Bangladesh Textile Mills Association (BTMA).

Syed M Tanvir, Managing Director of the Chattogram-based Pacific Jeans Ltd, told The New Nation, “We want to increase denim production by more than 12 per cent this year compared to 2023. The outlook for denim in 2024 is better than last year, so the export of denim items is expected to grow this year.”

Reaching to the current state of the sector, the entrepreneurs had to struggle hard as there was no washing plant in the country till 1984. Later, late Nasir Uddin, founder of the Pacific Jeans Ltd, set up a washing plant in Chittagong Export Processing Zone (CEPZ) taking technical support of Italian buyers during the time.

As the entire work of fabric production, sewing and washing is being completed locally, lead time denim export has reduced significantly, the manufacturers said.

They further said demand for denim has been rising worldwide because of changes in fashion as the denim is more flexible and comfortable.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has set a target of apparel export worth $100 billion in 2030 and denim can play an important role in this regard.

Monsoor Ahmed, Chief Executive Officer of the BTMA, said that fresh investment and reinvestment in the sector was continuing as Bangladesh had already proven itself as a reliable source for denim fabrics.

Despite the fact that most mills were established over the past 10 years, they have had to increase their capacity due to demand from international clothing retailers and brands, he said.​

 

[Saif]

Apparel sector must adapt to climate crisis

Climate-adaptive measures are vital for the sector’s future

www.thedailystar.net

Apparel sector must adapt to climate crisis​

Climate-adaptive measures are vital for the sector’s future

VISUAL: STAR

We are alarmed to learn of a new study that suggests that Bangladesh could lose $27 billion in annual apparel exports by 2030, and $711 billion—or 68.5 percent of total RMG exports—by 2050 if it does not adopt a climate-adaptive approach. According to the study, climate-induced disruptions, primarily due to extreme heat and flooding, are already causing Dhaka's garment workers to miss an average of three days of work per month, incurring an income loss of Tk 1,200 to 1,500. Additionally, by 2030, up to 2.5 lakh employees are at risk of losing their jobs due to climate change. If left unaddressed, this situation could lead to billions of dollars in lost productivity and push apparel buyers to source from less climate-vulnerable countries, further jeopardising our export earnings.

We cannot underestimate the gravity of these findings and predictions. To address this situation, the study recommends embracing climate-adaptive approaches, such as by treating heat and flood events as health hazards or engaging with the investors, apparel companies, and other stakeholders to address the absence of adequate adaptation measures in their risk management strategies. Bangladesh, ranked as the seventh-most extreme disaster risk-prone country in the world, stands at the forefront of climate adversity.
​

A staggering 56 percent of the population resides in high climate-exposure areas. The country already faces heightened vulnerability to child marriage, illiteracy, erosion, displacement, extreme weather, land loss, food insecurity, diseases, pollution, and other related threats. Over the past 20 years, climate change has cost Bangladesh $3.72 billion. Additionally, extreme heat exposure results in an annual loss of 254 work hours per person, translating to $280 to $311 billion in lost productivity.

Against this backdrop, we must intensify our efforts to avoid further distress. Focused regional research and adaptive strategies are crucial, alongside developing more persuasive climate justice advocacy measures to expedite effective action, including in the apparel sector. Bangladesh has taken a leading role in advocating for climate justice and collective action in the world. But we must do more, considering the ever-increasing risks we face.

 

[Saif]

'Why don't RMG owners pressurise buyers instead of workers?'

Despite the five-year minimum wage review cycle, there seems to be no preparation on the factory owners’ end

www.thedailystar.net

'Why don't RMG owners pressurise buyers instead of workers?'​

'Why don't they pressurise the buyers instead of workers?'

Kalpona Akter, a labour rights activist and president of Bangladesh Garment and Industrial Workers Federation, discusses the ongoing protest of garment workers, their circumstances, and demands for a liveable minimum wage in an exclusive interview with Naimul Alam Alvi of The Daily Star.

Can you contextualise the latest protests by garment factory workers in Bangladesh?

The minimum wage for ready-made garment factory workers was last reviewed in 2018, when workers demanded Tk 16,000 of monthly wage. The government and RMG factory owners settled on Tk 8,000; since then, the workers have received a mandatory five percent wage increment. Even with the increment, entry-level workers currently earn only around Tk 9,000 per month.
Since 2020, the Covid-19 pandemic and the Russia-Ukraine war have triggered a worldwide cost-of-living crisis, impacting everyone, including the RMG workers. Regardless of their wage level, workers are struggling to make ends meet, unable to afford basic necessities for themselves and their families.

Despite the five-year minimum wage review cycle, there seems to be no preparation on the factory owners' end. Their proposal should have come earlier, but instead, they belatedly offered a disrespectful proposal in late October to set the minimum wage at Tk 10,400—not even half of the workers' demand. This angered the workers, whose demand is now clear: either reduce essential commodity prices or increase wages.

But the workers' voices are being suppressed. They are being beaten by law enforcement members and goons, fired at indiscriminately, and subjected to lawsuits. Some have been arrested, creating a climate of fear among workers and labour rights activists alike.

The owners accuse the workers of conspiracy, but how is it a conspiracy when eggs cost Tk 15 apiece, onions Tk 120 per kg, and potatoes Tk 70 per kg?

How long can the police suppress the workers? The owners may not be able to "afford" Tk 23,000, but the wage certainly cannot be Tk 10,400 or even Tk 12,000. It must enable the workers to survive, buy food, pay rent, and support their families. With stagnant wages, reduced capacity to meet basic needs, and no significant growth between entry-level and skilled workers, how long will the workers suffer in silence?

Factory owners argue that they are unable to increase minimum wages or overall wages due to competitive market pressure and the need to maintain low prices. What's your perspective on that?

The factory owners claim they must produce low-cost products due to buyers' low prices. They create a competitive environment both internationally and domestically. However, Bangladesh is the world's second-largest apparel producer. If we still cannot strengthen our position and negotiate with our buyers, establishing a minimum price below which we will not go, it's disheartening. We have powerful organisations like the BGMEA and BKMEA. What do they do? Why do they foster internal competition within our sector? What is the purpose of their association then? As long as they don't learn to say no, they'll keep producing cheap clothing and claiming no profit. Yet, we see many of them expanding their businesses and building new factories. If they don't have the money, I'm at a loss as to how they find the funding to build these factories.

Why do you think factory owners redirect pressure from buyers onto workers when such demands arise, offering excuses that the buyers will not listen, rather than negotiating for better prices and subsequently better wages for the workers?

Because they can get away with putting pressure on the workers. Factory owners have embedded themselves within the government. If the legislators are the factory owners themselves, where can I go to seek justice? Where is the impartial body that will listen to the workers? The government is not neutral. A high percentage of MPs are garment factory owners. They are concerned about themselves, not the workers. Their "power" works to silence the workers, labour rights activists, and those who are part of unions. Their strategy does not include negotiating with the buyers.

Whenever there has been a movement to raise wages, the workers have been suppressed. PHOTO: AMRAN HOSSAIN

They should have met with the buyers back in 2022. They should have informed them that the workers' wages in Bangladesh would need to be increased the following year, and set a minimum price limit that the buyers must adhere to. Instead, whenever there has been a movement to raise wages, the workers have been suppressed. Cases have been filed against the protesting workers; they have been fired from their jobs, and they have been blacklisted. The factory owners have managed to do this because they have the muscle, money and administrative power, none of which the workers possess.

However, there is hope for a solution. Many of the sourcing countries are working on laws for human rights due diligence. Germany, France and the Netherlands have already enacted them, and the European Union is also going to adopt one. One of the elements of such laws is to ensure a living wage for workers. We are trying to ensure that the question of living wage covers contributing countries, so that sourcing countries cannot shake off their responsibility by saying the manufacturing countries will ensure the living wage of the workers. We are saying that no, the companies that are sourcing from manufacturing countries have to make sure that they are paying enough and that the money contributes to the living wages.

Another hope will emerge if the power is neutralised here. And to do that, you have to give the opportunity to form free unions in the factories. Only when there is an opportunity for free unions will the workers have power in collective bargaining agreements. They will be able to decide whether to accept the mandatory five percent increment or demand 10 percent, should the wage review be done every five years or should it be three years.

We see RMG workers frequently taking to the streets to demand wage increases and other improvements. Why does this have to happen so often?

The legal framework exists. The law clearly states that the owner, worker or the government can review the wage structure after three years if the inflation rate is high. It is only mandatory after five years. Workers should not need to take to the streets. The procedure should involve a wage board meeting every five years. Both parties will submit proposals, there will be discussions, and the wage will be announced.

I spoke with labour rights activists in Kerala, India; they were surprised to learn that our minimum wage review occurs every five years. They do it annually there, and workers don't have to take to the streets for it. Wage review is the owners' responsibility. They announce a wage that aligns with the inflation rate. If our neighbouring country can do it, why can't we? Why wait five years; why not review the wage every year?

Repression can never silence workers' voices or labour movements. It needs to be addressed systematically. We need to have discussions and provide workers with a platform for dialogue, such as a trade union. The second step is to move beyond the profit paradigm. If we don't include workers in profit-sharing, this backlash will continue. Calling the workers a part of the owners' families is a mere lip service if we don't believe it wholeheartedly and don't demonstrate it in our actions.​

 

[Saif]

A garment powerhouse

Walk down the road in Savar, Gazipur or Narayanganj in the morning hours and you will see a long line of workers heading to work.

www.thedailystar.net

A garment powerhouse​

A closer look at how retailers, from H&M to Walmart, turned Bangladesh into the world’s second-largest clothing supplier

Walk down the road in Savar, Gazipur or Narayanganj in the morning hours and you will see a long line of workers heading to work. They will soon join the production lines behind silent brick walls to make clothes for the world. The garment industry, home to 40 lakh workers, is one of the largest employers, fetching $47 billion in annual exports, a milestone Bangladesh crossed in 2023. Behind this growth story exists another group -- fashion retailers perpetually in pursuit of low-cost products.


After a journey of nearly five decades, Bangladesh has morphed into the second-largest garment exporter in the world after China, accounting for 7.9 percent of the global market share. It is now the mainstay of Bangladesh's economy with the sector's rapid growth and modernisation over the past decade. The transformation of the garment industry was catalysed, in part, by a series of workplace tragedies, including the Rana Plaza disaster that took the lives of more than 1,100 workers. In those dark days, retailers stayed with Bangladesh in a push for workplace compliance. The groundbreaking International Accord that made jobs safer for millions of garment workers in Bangladesh was later extended to Pakistan.​

​

Photo: Saurav Hossain Siam

It is now expected that Bangladesh's share in the global market will continue to grow. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) aims to capture 12 percent of the international market share by 2026 when Bangladesh is scheduled to graduate from the group of the least-developed countries. That partly depends on the retailers' appetite for Bangladesh as the nation will lose most of the duty benefits after LDC graduation.

Initially, Bangladesh's garment industry grew under a quota system introduced by an international trade agreement, known as the Multifibre Arrangement (MFA), in 1974. The MFA, which persisted until January 2005, imposed quotas on the amount of clothing and textiles that developing countries could export to developed nations. Thanks to the agreement, the garment sector found a niche in the market for many years and continued to thrive.


However, the main role was played by the buyers, who flocked to Bangladesh to source clothing items at competitive prices.

With local garment makers working under the cutting and making (CM) method, the onus was on the buyers to play the vital role of supplying designs, patterns, fabrics and raw materials. The CM method, which involves costs of cutting, sewing, pressing, folding and packing, is still popular in Bangladesh, with suppliers mainly doing so to avert risks.

Photo: Saurav Hossain Siam

In the late 1970s and mid-1980s, buyers used to place orders in small quantities and the sales of garment items were mainly facilitated by third-party vendors because the size and scale of businesses were so small that international retailers and brands were uninterested in placing direct orders.


However, with time, major retailers and brands, especially from Europe and the US, started arriving here and directly purchasing goods. About 50 of them now have liaison offices in Bangladesh, allowing them to buy garment items at competitive prices. By and large, Bangladesh has proven itself as a reliable supplier of value-added garment items while also growing by leaps and bounds in design and pattern-making.

Bangladesh cemented its position during the peak of the coronavirus pandemic when it kept its factories open except for the initial few months of the health crisis in 2020 while factories in all other supplying nations were shut for many months at a stretch.

Of the $47 billion worth of exports of garment items last year, the lion's share was shipped through a direct purchasing method by retailers and brands. With direct sales, both buyers and suppliers benefit as no third party shares the profit. However, many small buyers, who can't afford an overseas office, still rely on third-party vendors.

Swedish retail giant H&M is the largest buyer of Bangladeshi clothes, purchasing items worth nearly $4 billion annually. The country is also the single largest sourcing destination for H&M, which has its own office in Dhaka.

US retail giant, Walmart, is the second-biggest buyer of Bangladeshi apparel, procuring nearly $2.5 billion worth of products a year. It was the largest buyer for the country for many years before ceding the top spot to H&M in recent years.

Spanish company Inditex, which owns brands like Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Zara Home, buys nearly $2 billion worth of garment items from Bangladesh every year.

Shafiur Rahman, regional operations manager of G-Star in Bangladesh, said Bangladesh will remain an important sourcing destination for his company in future. G-Star Raw, a Dutch designer clothing company, buys nearly $1 billion worth of garments, including denim and T-shirts, from Bangladesh a year.

Photo: Saurav Hossain Siam

"We will keep sourcing the same amount of clothing in 2024, anticipating slight growth in the fourth quarter onward," said Rahman.

British retail giant M&S procures more than $2 billion annually from Bangladesh. Japan's Uniqlo has turned into nearly a billion-dollar buyer. Of the $1.6 billion worth of garment items exported to Japan last year, the majority was secured by the Japanese retailer alone.

Japan has remained a major destination for Bangladesh since 2011, when Tokyo started allowing zero-duty benefits to the LDCs for garment items and knitted items, even if they are made from imported fabrics.

Photo: Saurav Hossain Siam

With such a major trade benefit in place, Japanese clothing retailers started clamouring to Bangladesh and thus Japan became the largest export destination for the country in Asia.

Irish retail giant Primark has ramped up purchases, with their annual purchases now valued at nearly $2 billion.

Puma, Nike, PDS, Adidas, Gap, Levi Strauss & Co, VF Corporation, PVH Corporation, Old Navy, Banana Republic, Sainsbury's, Esprit, and C&A are some other major buyers, with each buying nearly $1 billion worth of clothes from Bangladesh a year.

The sourcing pattern from Bangladesh has also changed a lot over the years because of the changing habits of buyers and consumers, and the sales of retailers and brands.

Many top retailers and brands source garment items in small quantities but at higher prices. For instance, Hugo Boss, a German luxury fashion brand, procures garment items worth a few hundred million.​

 

[Saif]

Bangladesh uses more manmade fibres to make garments for global buyers

The use of non-cotton fibre in garment production in Bangladesh has increased to 29 percent from 25 percent in the last three years as exporters go for diversification for better prices and to expand their global footprint, according to a new study.

www.thedailystar.net

Bangladesh uses more manmade fibres to make garments for global buyers​

Study finds

Photo: Star

The use of non-cotton fibre in garment production in Bangladesh has increased to 29 percent from 25 percent in the last three years as exporters go for diversification for better prices and to expand their global footprint, according to a new study.

Varun Vaid, business director of Wazir Advisors Pvt Ltd, shared the findings at a press conference on the premises of the Bangladesh Garments Manufacturers and Exporters Association (BGMEA) in Dhaka today. He conducted the study on behalf of the BGMEA in the last two years.

Globally non-cotton fibre is used in 75 percent of garment manufacturing. In contrast, Bangladesh relies on cotton fibres to make 71 percent of the country's export-oriented products.
However, Bangladesh has more potential to use non-cotton fibre as the demand for manmade fibre garments is on the rise globally, according to the study.

If Bangladesh invests $18 billion, the country will be able to export $46 billion worth of non-cotton garment items by 2032, it said.

Speaking at the event, BGMEA President Faruque Hassan said that by using manmade fibres, the BGMEA wants to raise the global market share of locally made apparel items to 12 percent from 7.87 percent now since the prices are higher for the products made from artificial fibres.

He said climate change also has a major impact on fashion as consumers prefer non-cotton garment items to cotton items because of more functionality and sustainability.
​

"Local garment exporters are producing cotton garment items. By just increasing the volume of non-cotton products, we can expand to more markets and get better prices."

 

[Saif]

Non-cotton RMG exports could rise to $42b by 2032: study

Bangladesh’s non-cotton apparel exports could increase to $42 billion by 2032 from the existing $15.6 billion with the support of a fully...

www.newagebd.net

Non-cotton RMG exports could rise to $42b by 2032: study
Fully integrated value chain needed to make it happen

Staff Correspondent | Published: 22:09, Mar 03,2024


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

Bangladesh’s non-cotton apparel exports could increase to $42 billion by 2032 from the existing $15.6 billion with the support of a fully integrated value chain with investments worth $18 billion, according to a recent study.


The study titled ‘Beyond Cotton: A Strategic Blueprint for Fibre Diversification’ said that the share of non-cotton apparel exports from Bangladesh was lesser than cotton apparel exports, but it was increasing rapidly in the global trade.


Over the past five years, there has been a notable surge in global non-cotton fibre production, capturing an impressive 78 per cent share of the total fibre production, it mentioned saying that in contrast, cotton fibre production had faced a decline in the same period.

Under the support of the Bangladesh Garment Manufacturers and Exporters Association, Indian research firm Wazir Advisors Pvt Ltd conducted the research.

The BGMEA on Sunday launched the report at a press conference held at the headquarters of the trade body at Uttara in the capital Dhaka.


The study found that Bangladesh’s cotton apparel exports exhibited a high concentration, primarily focusing on four categories, including t-shirts, jerseys and woven trousers that collectively commanded a significant 63 per cent share.

As Bangladesh approaches graduation from the least developed country status in 2026 and the government and industry leaders are negotiating to extend the duty-free market access in the global market up to 2032, the country should aim to achieve a sustained double-digit growth rate in non-cotton apparel exports, aspiring to increase the earnings to $42 billion, it said.

To realise this vision, the report recommended developing a dedicated policy for the non-cotton industry, encompassing a clearly defined vision, mission and actionable points that specifically address the key challenges of insufficient technical know-how and limited upstream capacities.

It also estimated that an investment of approximately $18 billion in the area of yarn, fabric and garment manufacturing would be required to forge a fully integrated value chain that aligns with the aspirations set for the Vision 2032.

The report also showed that the investment would create additional employment of over 1.8 million.

The report also identified lack of technical know-how and limited upstream capacities as the key challenges for establishing a non-cotton value chain in Bangladesh.

Varun Vaid, business director of Wazir Advisors Pvt Ltd, presented the key findings of the study at the press conference.

He said that globally the use of non-cotton fibre was 75 per cent, but in Bangladesh the picture was just reverse as the local apparel makers used 71 per cent cotton fibre for making garment.


BGMEA president Faruque Hassan said that they wanted to take the global market share of locally made apparel to 12 per cent from the existing 7.87 per cent by using the non-cotton fibre as the prices of the products made with man-made fibre was higher than the cotton made items.

The choice of consumers has also changed and they prefer durable and sustainable products, he said.

Once the country graduates to a developing one, the government could not provide cash incentive for the sector, but the government incentive would be needed in different forms in establishing a non-cotton value chain in the country, the BGMEA president said.

Regarding the recent price hike of power, Faruque said that it would increase the cost of production, fuel inflation and hamper the growth of apparel sector.

He urged the government to withdraw the decision on increasing the price hike of electricity.

BGMEA director Asif Ashraf and former director Shovon Islam, among others, spoke at the press conference.​

 

[Saif]

Principles and the apparel sector

A VERY large number of women in Bangladesh have found employment in the readymade garment factories in Bangladesh, and there...

www.newagebd.net

Principles and the apparel sector​

Published: 00:00, Mar 08,2024

The root cause of why women are held back from becoming truly empowered anywhere needs to be addressed as well. Social change is required, and respect for gender, qualification, and education all need to come in a single package, writes Saira Rahman Khan

A VERY large number of women in Bangladesh have found employment in the readymade garment factories in Bangladesh, and there is little doubt that they have been seen as the success story for women’s empowerment in the country, supported by countless research and studies. To be empowered, women and girls must have the agency to use their rights, capabilities, resources, and opportunities to make strategic choices and decisions (UNICEF, 2017). Generally speaking, it is still a challenge for women from rural or poor economic conditions in Bangladesh to find ‘empowerment’. It is also seen that, despite the barriers, women are a part of the work and labour force of Bangladesh, especially in the RMG sector. Do these places of employment act as arenas of empowerment? According to UN Women, there were almost 5,000 ready-made garment factories in Bangladesh, contributing to the biggest export earning sector (80.7 per cent of the total export earnings) in the financial year of 2017 (UN Women, 2018). Women comprise 60–70 per cent of the RMG workforce, but with a low literacy level, little knowledge, and little control over their working conditions (UN Women, 2018).

In 2011, UN Women published a guideline on empowering women to participate in economic life in the workplace, market, etc. with the purpose of building strong economies. The guideline is called ‘The Women’s Empowerment Principles’ and consists of a set of principles for business offering guidance on how to empower women in the workplace, marketplace, and community. They are the result of a collaboration between the United Nations Entity for Gender Equality and the Empowerment of Women (UN Women) and the United Nations Global Compact. The principle’s emphasis is on the business case for corporate action to promote gender equality and women’s empowerment and is informed by real-life business practices and input gathered from across the globe.’ There are seven principles in total: Principle 1: Establish high-level corporate leadership for gender equality; Principle 2: Treat all women and men fairly at work — respect and support human rights and non-discrimination; Principle 3: Ensure the health, safety, and well-being of all women and men workers; Principle 4: Promote education, training, and professional development for women; Principle 5: Implement enterprise development, supply chain, and marketing practices that empower women; Principle 6: Promote equality through community initiatives and advocacy; and Principle 7: Measure and publicly report on progress to achieve gender equality. Have RMG industries adhered to these principles? Although all seven of the principles are vital for success, the focus of this paper will be on Principles 2, 3, and 4, as these seem to contain the most basic rights needed to provide empowerment opportunities for women workers in the RMG sector.

The second Women’s Empowerment Principle deals with the issues of fair treatment, non-discrimination, and respect for human rights. Islam (2018) has identified four types of gender-based discrimination in the RMG factory: gender division of labour, discrimination as regards promotions and service benefits, wage discrimination, and discrimination when in a leadership position. According to research conducted by the International Labor Organisation in 2020, 84 per cent of women workers in the RMG sector are in low grades, compared to 68 per cent of men. The research further found that from 2010 to 2018, the proportion of surveyed women in most managerial positions declined, and their overall average representation in such roles remained low and unchanged between 2010 and 2018 (approximately 9 percent). This indicates no improvements in enhancing women’s representation in managerial and leadership positions in the RMG sector in the past decade (ILO, 2020). An earlier 2018 study shows that the ratio of male to female professionals at the managerial and HR managerial levels is 190:1 and 176:17, respectively (CPD-RMG Study, 2017–2018). Thus portraying huge gender imbalances in these levels of RMG sectors. Women are further limited to ‘unskilled’ or’semi-skilled’ job categories in the garment factory; the reward they receive is neither up to their level of investment in labour and time nor is it equal to that of their male counterparts (Sharma 2020). According to the ILO study, the RMG industry tends to rely on low-paid female labour to compete and maximise profits in a highly competitive global market (ILO 2020). This statement alone shows how deliberately discriminatory this industrial sector is.

Tasks in the RMG factories are generally distributed based on gender in Bangladesh’s garments sector, and most of the working circumstances for women employees are determined by this (ILO, 2020). Most typically, women work as helpers, machinists, and, less frequently, as line supervisors and quality controllers (Ahmed, 2023). From data collected within factories, four out of every five production line workers are female, while just one in twenty supervisors is a woman (Heath, Mobarak 2014). Rahman (2022) writes that the percentage of women in managerial positions in the RMG sector has increased from 6 per cent to 12 per cent. This has been due to some training initiatives supported by international organizations. However, according to Ahmed (2023), access to managerial positions and higher-paying white-collar jobs is discriminated against for women. She further writes that as the burden of household work disproportionately falls more on women, the number of workers they can dedicate to work is also lower. Thereby, they also have a lesser inclination to opt for management positions (Ahmed, 2023). Meaning that due to the fact that women have to manage the bulk and burden of housework, they are less inclined to attempt managerial positions and opt for lower-paying work due to time constraints and the pressures and challenges of housebound activities.

As to payment, it is not globally uncommon that women in many sectors receive less pay than men. Farber (2017) gives three reasons for this: the ‘penalty’ of motherhood, the inability to negotiate ‘the right way’ and how they are treated when attempting to negotiate, and employer bias, where the employer knowingly or unknowingly undervalues a woman’s work. Women RMG workers in Bangladesh face all three of these hurdles. As seen, factories prefer to keep women in jobs that pay less. A 2021 study on the gender wage gap that used the administrative records of over 80,000 workers in 70 RMG factories in Bangladesh found an overall wage gap of 20 per cent of which more than half was due to the ‘overwhelming’ predominance of men in managerial roles (Menzel, Woodruff, 2021). In factory areas where women are a majority of the workers, such as in the sewing/floor areas, the same study found that the wage gap was 8 per cent. As regards impending motherhood and maternity leave, one study shows that the women workers’ knowledge of maternity leave and maternity benefits was inadequate, as was the accommodation provided by factories for pregnant workers (Awaj, 2019). In March 2021, it was reported that the IndustryAll Bangladesh Council had demanded from those in charge an assurance of six months of full-paid maternity leave for all female workers. The fact that this is still an issue shows that women are still being discriminated against for ‘motherhood’ in the 21st century.

The third Principle deals with ensuring the health, safety, and well-being of all workers. Workplace hazards can be broadly divided into five groups: (a) ergonomic hazards; (b) physical hazards; (c) psychological hazards; (d) mechanical hazards; and (e) chemical hazards (Raihan, Chowdhury 2023). According to Kabir (2019), it is ‘evident that RMG workers in South and Southeast Asia are the most affected by the unhygienic and unsafe nature of their workplace conditions’. In 2017, the ILO conducted a baseline survey on RMG workers with the South Asian Network on Economic Modelling. It studied the lives of 2,184 workers from 111 RMG factories and found that the three most pressing health issues the workers suffered from were thirst (68.5 per cent), hunger (53.2 per cent), and headaches (43.63 per cent) and that 7.05 per cent suffered long-term illnesses such as gastric ulcers and joint pains (Raihan et al. 2019). Another similar survey, conducted by ActionAid in 2019, of 200 women workers found that 90 per cent had experienced negative health impacts at work. These included exhaustion (78 per cent), severe back pain (57 per cent), and injuries to hands and feet (46 per cent), eyesight issues (36 per cent) (ActionAid, 2019).

‘Health, safety, and well-being’ can definitely extend to mental health and well-being. Given the discrepancies in the treatment of male and female workers, it is clear that women are already suffering some level of stress in the factory workplace. However, there is another side to this that has direct links to patriarchy, discrimination, and the poor treatment of women. This is sexual harassment and violence, and it is widely reported that women RMG workers face both. These contribute to the lack of empowerment opportunities for women in the RMG sector. In 2023, a Solidarity Centre report identified the kinds of gender-based violence female RMG workers suffer. The study showed that 45 per cent workers faced sexual harassment and violence, 22 per cent psychological, 17 per cent verbal abuse, 9 per cent economic and 7 per cent physical abuse and violence. Moreover, 89 per cent of the women in the study said that they had mental breakdowns due to such experiences, while 83 per cent said they had lost interest in their jobs. It is quite obvious that sexual harassment in the RMG workplace is a continuous violation, and its consequences leave both physical and mental pain and negate any opportunities for empowerment.

The fourth Principle towards empowerment is to provide women with training, education, and professional development. In 1978, 130 trainees were sent to South Korea from Bangladesh to embark on a training programme on how the RMG industry is run and how garments are manufactured. Eighteen of the 130 trainees were women (Khan, 2015). Today, training for female RMG workers is conducted in Bangladesh, mainly conducted and financed by international organisations, based on the recognition that women workers have low literacy levels and little control over their working conditions (H&M Foundation, 2020; UN Women Asia-Pacific). Training is also necessary to ensure that women are able to cope with the possibilities of automatons replacing them in the production line. Training is, however, not consistent across factories. A study of 111 factories conducted by SANEM (2019) for the ILO shows that introductory training of workers is either not carried out or is incomplete or improperly conducted in many factories. The same study shows that a majority of those who have received such training are male workers. But what about women’s training for managerial levels in the factory? For their professional development? Are there women in leadership positions on the factory floor? According to Islam and Jantan (2017), ‘In Bangladesh, the majority of the top managers are male, as evidenced by the report of the ILO (2015), which found women hold only 5.4 per cent leading positions in the organisations. Some reasons for this were highlighted in a study conducted by Matsuura’s (2020) and included the fact that supervisors or line chiefs are required to work overtime after regular working hours, and women had to go home and do housework and tend to children; women feared losing friends and peers if they advanced to supervisory roles; men were unable to accept the fact that women would be their supervisors; and women lack confidence in their abilities to manage male workers. Patriarchal traits of control, dominance, and position are clearly seen in the above reasons.

It is quite clear that what mainly drives the choice to work in the RMG sector is financial necessity. After a study of the lives of 17 female RMG workers, Al Mamun et al. (2022) surmised that paid RMG employment in Bangladesh has significant positive impacts on female workers’ economic, social, and psychological empowerment. Their findings also pointed to the suggestion that female RMG workers have gained economic capacity, along with some autonomy, freedom of mobility, increased decision-making power, a greater sense of self-esteem, job skills and experience, and consciousness about their rights to make choices (Al Mamun, Hoque, 2022). Despite the positive impacts, the ‘curse’ of patriarchy loomed over the workers private lives, as shown by the 2022 study, which highlights the fact that: salaries were kept by some of the women in a common family fund and some women had to seek the permission of their husband’s before sending money to help their parents; despite working long hours, some women states that they had to do all the housework alone; some women had to leave their children behind with family members in the village because of the long working hours; some women stated that people back in their village were defaming them for working outside the home; and that women with low levels of education were not moving up the ladder.

A recent study supported by the German agency GTZ shows that in 2021, only 53.65 per cent of garment workers were women (Rahman et al., 2023). In 2023, a Bangladesh Bureau of Statistics survey reported that the number of women RMG workers had declined by 10.68 per cent in the span of four years. The same study quotes that the number of female workers makes up 46.18 per cent of the workforce. This is a significant drop in numbers. This shows that although women have been enticed into financial freedom from RMG factories, they have not been able to find the atmosphere or means by which they may be truly empowered in their professional lives either. When garment industries commenced work in the 1980’s, employment opportunities were very limited for women from lower income groups (Rahman et al., 2023). As a result, the number of female workers was high.

What is required for ‘empowerment’? According to Papa Seck, chief of the UN Women’s Research and Data Section, ‘There is no empowerment without rights, so women’s empowerment needs to be anchored in human rights, which provide a universal framework for monitoring. For women to be empowered, they need resources, respect, and a voice. This requires redressing women’s socioeconomic disadvantage, addressing stereotyping, stigma, and violence, and strengthening women’s agency, voice, and participation.’ Putting this all into the framework of women workers in the RMG sector, we see that though women are working and seeking employment, this may be an exercise of their rights, or it may be something that is forced upon them by a father or husband. It may be that they had no choice in the matter. Regardless of whether it is an exercise of their individual right to work, they are still not treated with respect and dignity in the workplace, their resources as regards wages and healthcare remain inadequate, and they have no guarantee of long-term employment. As regards the addressing and redressing of stereotypes, stigma, and violence— and even socioeconomic disadvantages — these issues go far beyond the factory walls and boundaries. These challenge patriarchy and the social structure as a whole. You can take a male factory manager or lineman out of the factory, but you cannot take the patriarchal mindset out of him.

Verbal and sexual abuse, the lack of promotion of qualified women workers, unequal pay, unhygienic conditions for women workers, and the reluctance towards pregnant and new mothers — all point towards a greater, social problem that, unless addressed, will never allow women to find empowerment. Even when they are home, women RMG workers need to do all the housework and even suffer domestic violence. Women are leaving the factories due to conditions that in no way enable them to continue work outside the home. These issues show that women have yet to break the bonds of patriarchy, despite finding employment and, perhaps, economic freedom.

The theme of International Women’s Day 2024 is ‘Invest in Women: Accelerate Progress’. What then needs to be done to make the RMG sector a safe space for women’s empowerment? There is no doubt that empowerment is required for progress. There has to be recognition from factory owners, factory management, and definitely foreign buyers that women workers are not merely dispensable parts of the factory, working to benefit only buyers and owners. The guidelines of the Women’s Empowerment Principles need to be followed and mechanisms put in place to ensure full implementation for the benefit of all women workers. This can only be done if women RMG workers are given the respect, security, and facilities they deserve in order to work with dignity. However, that is definitely not enough. The root cause of why women are held back from becoming truly empowered anywhere needs to be addressed as well. Social change is required, and respect for gender, qualification, and education all need to come in a single package. Given that patriarchy is firmly entrenched in the very fibre of Bangladeshi society, challenging patriarchy needs to be done in small doses, and it is the responsibility of families, workplaces, educational institutions, and the government to ensure these steps are implemented. Merely showing data on how many women are employed in various public sectors or are enrolled in academic institutions in no way means that women have been empowered or that they are not facing any social or familial backlash.

Saira Rahman Khan is a professor of law, BRAC University.​

 

[Saif]

Bangladesh’s growing prowess in RMG makes Chinese investors upbeat

Chinese textile and garment entrepreneurs are bullish about Bangladesh as the country cements its position as a top supplier of apparel items, evidenced from a healthy flow of orders from international clothing retailers and brands.

www.thedailystar.net

Bangladesh’s growing prowess in RMG makes Chinese investors upbeat​

Customers inspect products at an exposition on yarn, fabric and denim items at the International Convention City Bashundhara in Dhaka yesterday. More than 400 companies from 15 countries have set up 550 booths to showcase textile and garment items at the event. Photo: Sk Enamul Haq

Chinese textile and garment entrepreneurs are bullish about Bangladesh as the country cements its position as a top supplier of apparel items, evidenced from a healthy flow of orders from international clothing retailers and brands.

On the back of higher demand for fabrics, yarns, chemicals, dyes, and capital machinery used in the textile and garment sectors, China has turned into the largest supplier for Bangladesh.

Bangladesh imports nearly $20 billion worth of goods, including fabrics, from China, said industry people.

The reliance on the second-biggest economy in the world is growing since local weavers can only meet 40 percent of the requirement for woven fabrics. The remaining 60 percent is met through imports, mainly from China and India.

Owing to a brighter outlook of Bangladesh and the rising cost of production in China amid a dearth of skilled workers, Chinese investors are flocking to the country and investing in the textile and garment sectors.

At the same time, Chinese fabric sellers are targeting export-oriented garment factories which have been receiving an increased volume of orders from global retailers and brands.

A good number of Chinese textile and garment manufacturers are taking part in the 21st Dhaka International Yarn and Fabric Show 2024 and the 6th Denim Bangladesh 2024 International Expo at the International Convention City in the capital's Bashundhara.

CEMS Global and CCPIT-TEXT of China have jointly organised the exhibitions, where 410 companies from 15 countries have set up 550 booths to showcase textile and garment items. The event will continue until March 9.

"2023 was not good for business given higher inflation in Europe and the US. Now, a lot of orders are coming to Bangladesh and orders are expected to increase further in the near future," said Yong Zhang, general manager of Jinlite, an outerwear manufacturer, which has a factory in the Mongla Export Processing Zone.

Zhang set up the factory in 2018 with a 100 percent Chinese investment to meet demand for outerwear, rainwear, activewear and jackets in Europe and the US. Currently, the factory exports garment items worth more than $20 million annually.

Melody Zhou, sales manager at Top One Down & Feather Co Ltd, said their factory is witnessing a spike in demand for high-end jackets made from duck feathers.

She was the first to introduce the products in Bangladesh and the response from customers has been high.

"Bangladesh has a lot of garment factories and the business opportunity is high."

Aileen, a Chinese entrepreneur who has been selling viscose in Bangladesh, for the last nine years, agrees.

"Sales are good and the demand is rising."

At the inauguration of the showcase, Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association, said Bangladesh has the highest number of green garment factories in the world and this has brightened the image of the sector and the country and given a boost to buyers' confidence.

"2024 will turn out as a good year for us as retailers and brands are coming up with a higher volume of orders."

Bangladesh, the second-largest apparel supplier globally, is already the biggest denim exporter in Europe and the US, which highlights the sector's strength.

Amin Helaly, senior vice-president of the Federation of Bangladesh Chambers of Commerce and Industry, said Bangladesh imports more than $10 billion worth of fabrics from China per year.

"So, an opportunity has been created for Chinese investors to invest in the textile and garment sector in the country."

Lokman Hossain Miah, executive chairman of the Bangladesh Investment Development Authority, also spoke at the inauguration.​

 

[Saif]

US to look into 'unhealthy competition' in garment pricing

The United States International Trade Commission (USITC) is going to hold a hearing involving Bangladesh to see whether a recent rise in prices of garment items sourced from the country had anything to do with unhealthy competition.

www.thedailystar.net

US to look into 'unhealthy competition' in garment pricing​

The United States International Trade Commission (USITC) is going to hold a hearing involving Bangladesh to see whether a recent rise in prices of garment items sourced from the country had anything to do with unhealthy competition.

The USITC found out that the prices the US paid for each unit of Bangladeshi garments had recently exceeded the average of the prices paid by America for garments sourced from different countries.

This prompted the agency to open an investigation to find out whether any anti-competitive incident took place.

The USITC is an independent, nonpartisan, quasi-judicial federal agency that fulfils a range of trade-related mandates, according to its website.

Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), is going to virtually attend the hearing on March 11.

The prices rose mainly due to adjustments brought about by American clothing retailers and brands to compensate for an increase in raw material and shipping costs during and after the pandemic, he said.

The price per unit had been rising at a moderate pace since 2017 while that offered by China has declined, the BGMEA chief added. The unit price offered by Bangladesh is currently $3.23, compared to $1.86 and $2.95 for China and Pakistan respectively, he said.

Given that Bangladesh still largely manufactures basic items, the average price level is well above the global average import price per unit paid by the US, he said.

Hassan also said recent geo-political tensions have added woes to global supplies, which were already struggling, and to the demand dynamics of diesel prices, resulting in record hikes.

"In recent years, our cost of production has gone up exorbitantly. Price of electricity has risen by 25 percent, gas by 286.5 percent, diesel by 68 percent, and similar impacts on transport and other factors are notable," he said.

Inflation has pushed cost of finance further up, leading to increased cost of production and cost of goods, he added.

Also, bank charges and municipality and city corporation fees, including different registration and certification fees, have significantly increased, said Hassan.

In the past decade, the industry invested millions of dollars to remediate factories, and is constantly investing in greener manufacturing, emission reduction and resource efficiency to meet emerging due diligence requirements, he said.

He hoped that the USITC would view the overall scenario instead of considering only cost and efficiency-based competitiveness.

At the same time, drawbacks such as a lack of local raw materials and absence of foreign direct investment in this industry also need to be taken into consideration, the BGMEA chief added.​

 

[Saif]

Time to switch to non-cotton garment

After decades of steady growth with cotton-made products, it is high time the Bangladesh readymade garment (RMG) industry shifted its gears and strategically focused on man-made fiber (MMF) to drive further growth. A recent study conducted by Wazir Advisors Pvt Ltd. suggests that the expansion of n

thefinancialexpress.com.bd

Time to switch to non-cotton garment​

ATIQUL KABIR TUHIN

Published :​

Mar 06, 2024 21:48

Updated :​

Mar 08, 2024 19:25

Representational image/Files

After decades of steady growth with cotton-made products, it is high time the Bangladesh readymade garment (RMG) industry shifted its gears and strategically focused on man-made fiber (MMF) to drive further growth. A recent study conducted by Wazir Advisors Pvt Ltd. suggests that the expansion of non-cotton garment exports holds immense potential for the country's economy. According to the study, conducted under the patronage of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh has the potential to increase its non-cotton garment exports from the current $15.6 billion to an impressive $ 46 billion annually by 2032, if entrepreneurs were to invest $18 billion to enhance manufacturing capacity and a fully integrated value chain.


Of late, the global fashion landscape has undergone a dramatic shift, with the reign of cotton fading and MMF taking center stage. While cotton initially fuelled the surge of the Bangladesh apparel market, that seems now to have reached its peak and its growth potential appears limited. This echoes the global trend in fibre demand, where the cotton-to-MMF ratio has shifted from 75:25 thirty years ago to a stark 25:75 today.

This strategic change underscores the growing significance of apparel made from artificial fabrics in the global market. In spite of the seismic shift in fibre demand, with non-cotton fibre accounting for 75 per cent of garments manufactured globally, Bangladesh still relies on cotton fibers to make 71 per cent of the country's export-oriented products. In recent years, however, the country's RMG sector began to recognise the changing tide.

A recent report suggests manufacturers are actively aligning their strategies with the global trend and embracing MMF as the new frontier. This shift is evident in the rapidly rising imports and investments in MMF, with the import of MMF increasing by over 13 per cent in the past calendar year. Moreover, the study also finds that the use of non-cotton fibres in garment production in Bangladesh has increased from 25 per cent to 29 per cent over the past three years. This shift in preference towards non-cotton fibers presents Bangladesh with a lucrative opportunity to diversify its export portfolio and reduce its dependency on cotton fibers.

The study also suggests that the decline in China's share of the non-cotton garment market, coupled with Bangladesh's remarkable growth in this segment-from 1 percent to 5 percent in recent years-opens a new window of growth in this sector. Consequently, it is encouraging to note that Bangladeshi apparel exporters are increasingly turning to man-made fibers to secure better prices and expand their market reach. This strategic pivot towards non-cotton fibres aligns with Bangladesh's ambition to increase its share in the global apparel market from the current 7.87 per cent to 12 per cent by 2026.

Moreover, the surge in demand for non-cotton garments is not merely driven by market trends but also influenced by environmental factors. As consumers are becoming more environmentally conscious, the preference for non-cotton garments-perceived as eco-friendlier alternatives-is gaining momentum. MMF offers recyclability and reusability, aligning with the growing trend of sustainable clothing. Brands like H&M and Nike leverage recycled materials like polyester to attract environmentally conscious consumers.

Several other factors such as modern lifestyles and changing attitudes have led consumers to favour MMF for its easy care, functionality, and affordability. The growing "athleisure" trend further fuels the demand for polyester, a key MMF. Capitalising on this global trend, the MMF manufacturers are investing heavily in research and development to improve the technical and aesthetic properties of synthetic textiles such as polyester, viscose, recycled nylon and lyocell. Such improvements have not only helped the widespread usage of MMF products but also supported it in replacing other natural fibers.

Buoyed by this trend, many brands and retailers are shifting some products from cotton to man-made fibers. Moreover, cotton is becoming difficult and costlier to produce due to decreasing arable land. Other problems that have decreased the demand for natural cotton-made products are lower impact strength, shrinking after washing, variable quality influenced by weather, poor moisture resistance causing swelling of fibers, restricted maximum processing temperature, and low wetting with hydrophobic polymers. Alternatively, synthetic fiber has been offering some special benefits for both the consumers and the producers, along with offering solutions to the aforementioned problems of natural cotton.

This shift underlines that it's not a choice, but an imperative for Bangladesh to capitalise on the growing demand for artificial fibers, both to meet consumer preferences and to mitigate the environmental impact of cotton production. While Bangladesh currently imports non-cotton fibers worth US$ 1.2 billion annually, there exists immense potential for local investments to bolster garment exports and create additional opportunities.

In the end, the findings of the study emphasises a pivotal moment for Bangladesh's apparel industry. Perhaps even a crossroad-a moment that demands proactive investment and strategic alignment with global market trends. By seizing the potential of non-cotton garment exports, Bangladesh can not only diversify its export basket, but also emerge as a frontrunner in sustainable and competitive fashion manufacturing, driving economic growth and employment opportunities for its citizens. Policymakers and industry stakeholders must collaborate in harnessing this transformative potential of non-cotton garment export. This strategic shift driven by global trends, consumer preferences, and sustainability concerns opens doors for future growth and can solidify the country's position as one of the leading apparel manufacturers. Its potential is limitless.​

 

[Saif]

BGMEA requests Primark to source more from Bangladesh

Primark officials now in Dhaka

www.thedailystar.net

BGMEA requests Primark to source more from Bangladesh​

Primark officials now in Dhaka

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) today urged Primark to source more garment items from Bangladesh, particularly the high-end apparels.

BGMEA President Faruque Hassan made the call at a meeting with Primark high-ups held at the BGMEA office at Uttara in Dhaka.​

​

He also sought support from the Irish fast fashion retailer to implement the recently announced minimum wage for RMG workers by adjusting prices of Primark's orders.

Primark senior officials, including Steve Lawton, trading director; Matthew Rhodes, head of sourcing and supplier management; Eoin Tonge, chief financial officer; Richard Morrison, director; Filippo Poggi, sourcing country controller for Bangladesh, India, Pakistan and Sri Lanka, attended the meeting.​

 

[Saif]

Poor pay, long work hours making them quit jobs: study

Disruption to work-life balance due to extended working hours alongside family responsibilities is compelling many female ready-made garments workers to leave their jobs, according to a study.

www.thedailystar.net

Poor pay, long work hours making them quit jobs: study​

Disruption to work-life balance due to extended working hours alongside family responsibilities is compelling many female ready-made garments workers to leave their jobs, according to a study.

The findings of the study, "Unpaid Care Work: Perspective of Employers and Workers in RMG Sector," were revealed at a seminar at Dhaka's CIRDAP auditorium yesterday.​

​

Aimed at investigating the current challenges being faced by female RMG workers, the study was conducted during February-March this year, by Oxfam with support of Karmojibi Nari and Creative Pathways Bangladesh.
Around 79 percent of female RMG workers who quit cited family responsibilities as the prime reason, said the study.

Meanwhile, 31 percent of respondents said they were unable to take care of their children due to long work hours, and thus, had to leave their jobs.

Additionally, 29 percent said they quit due to inadequate salary and benefits, 18 percent cited harassment and discrimination, while 17 percent blamed poor working conditions.

"Daycare centre facilities should be arranged by factory owners," said Shah Mohammad Abu Zafar, president of Bangladesh Labour Federation.

"The government and factory owners must ensure all the required benefits within the industrial areas," he mentioned, stressing on the prevalence of malnourishment in female RMG workers and the need to address it immediately as it hampers productivity.

The wages have increased but their (workers') standard of living did not improve, said Meher Afroz Chumki, former state minister of women and children affairs ministry. Alongside highlighting the gap between workers' income and personal expenditure, she also stressed the need for daycare facilities at factories, emphasising on existing laws that are in place in this regard but are seldom adhered to.

"We need to practically implement the research findings and recommendations. Only then will laws be created and accountability be ensured," said Shirin Akhter, founder of Karmojibi Nari.

She also called for collaborative research and initiatives by the government and private stakeholders to improve sectors that employ more women.​

 

[Saif]

RMG diversification is imperative

For quite sometime now experts have been putting forward unambiguous suggestions for diversifying the product portfolio of Bangladesh's apparel industry (RMG). Its rival countries such as China and Vietnam have already taken the effort to seriously diversify their baskets of apparel export, whereas

thefinancialexpress.com.bd

RMG diversification is imperative​

SYED MANSUR HASHIM

Published :​

Mar 15, 2024 22:07

Updated :​

Mar 16, 2024 21:45

FE file photo

For quite sometime now experts have been putting forward unambiguous suggestions for diversifying the product portfolio of Bangladesh's apparel industry (RMG). Its rival countries such as China and Vietnam have already taken the effort to seriously diversify their baskets of apparel export, whereas Bangladesh still remains indifferent. Even India and Indonesia fall into the category of 'diverse'.While Bangladesh is one notch above Pakistan, that is hardly of any consequence because Bangladesh is number two in global apparel trade, and the time has arrived to start diversifying. The faster it is the better. A glimpse into the US market – very important for Bangladesh RMG – reveals the exporting country's overwhelming reliance on cotton products.

According to a report published in this newspaper recently, government data show "over 80 per cent of Bangladesh's apparel export earnings in the last fiscal year came from shipping basic items like tee shirts, trousers, shirts, sweaters and underwear to the Western market. Local apparel manufacturers acknowledge that diversification does not happen overnight: it requires investment, infrastructure support, consistent energy and raw material supplies and, of course, time." These were findings by Dr. Sheng Lu, who is an Associate Professor and Director of Graduate Studies in the Department of Fashion and Apparel Studies at the University of Delaware, USA. His study tells us that China remains number one exporter primarily because of the wide selection of clothing styles it offers its customers.

Given the geopolitical situation, it is clear that the US policymakers are keen to diversify its sourcing of apparels away from China. Some countries like Vietnam and India are looking forward to taking a share of that pie.

In the past, the RMG industry was more than confident that it would be able to grab a large percentage of that pie, now it is hamstrung with its concentrated outlook on its product base. Hence, Vietnam is stepping into this game better equipped than Bangladesh as it can offer a wider selection of products to choose from (from a buyers' perspective) that include outerwear, under garments and swimwear. India is doing well in dresses whereas Bangladesh is still a major buyer destination for basic knitwear items. Basic, i.e. Bangladesh is very good at producing items that also carry a lower price tag.

One of the areas that the apparel industry association, the BGMEA has been looking into is value-added products, particularly non-cotton materials that include polyester and manmade fibres (MMF). This is an effort to shift away from cotton and for obvious reasons. For Bangladesh to attain the target of US$100 billion in export earnings by 2030, something fundamental needs to change in the industry. A move away from over-dependence on cotton-based apparels to the MMF!

In a recently unveiled BGMEA study titled 'Beyond Cotton: A Strategic Blueprint for Fibre Diversification in Bangladesh Apparel Industry', the potential of Fibre diversification of non-cotton textile and apparel for Bangladesh in the global apparel market has been explored. Global trade (cotton and non-cotton) has increased marginally from 1.0 per cent from 2018 to 2022. Indeed, wool fibre, yarn, and fabric trade have declined notably over the last five years, while over the same period, acrylic fabric exports have increased since 2018.The study reveals that non-cotton apparel exports by China, Vietnam, Italy and Spain have dominated that particular garment export scene where it accounts for more than 50 per cent of total exports. "The fastest-growing non-cotton categories globally, Jerseys and Pullovers of Man-Made Fibres (MMF) lead the way, and women's wear categories (outerwear, dresses, and trousers dominate the list."

So, what will Bangladesh do? It holds 2nd position in production and is squarely aligned with current market demands of international markets. To be able to catch up and compete with its closest rivals in the MMF and non-cotton segments, some problems remain. There is the challenge of a shortage of technical manpower, the overall reliance on imported raw materials, high manufacturing cost, and significant capital expenditure requirements.

What the industry is looking for is greater understanding of the problems facing it at policy level. The capital-intensive nature of investments requires a rethinking of high interest rates charged by financial institutions and more non-cotton-focused government policies. There is a huge demand for vocational training institutes that would go a long way to address the technical competences of Bangladeshi workers and of course, the availability of consistent power supply. Diversification won't happen magically, it requires an enabling environment whereby decision makers work with the industry to find solutions rather than simply adopting a top-down approach. These are serious issues and as RMG remains the top foreign exchange earner in annual exports, these issues need to be tackled head on if Bangladesh is to remain a dominant player in the global apparel trade.​

 

[Saif]

Garment export to USA falls 2.58%

However, apparel shipment to the EU rose 3.27% in Jul-Feb

www.thedailystar.net

Garment export to USA falls 2.58%​

However, apparel shipment to the EU rose 3.27% in Jul-Feb

Garment exports to the USA, the single largest export destination for Bangladesh, fell by 2.58 percent year-on-year to $5.46 billion in the July-February period of the current fiscal year.

American retailers and brands imported 23 percent lower amount of clothing items last year compared to the previous year because of high inflationary pressure, which impacted Bangladesh's shipment to the US markets.

Thanks to the presence of competitive pricing and long-time trade relations, Bangladesh is the third largest garment supplier to the USA after China and Vietnam.

Bangladesh's performance has been strong compared to its peers in case of garment export to the USA despite being slapped with a 15.62 percent tariff, the highest in the world in this particular market.

However, clothing sales have started increasing in the US economy thanks to the recent recovery of the market.

The National Retail Federation (NRF), the largest retailers' platform in the USA, said sales in the clothing and accessories stores were up 0.51 percent month-over-month and up 8.05 percent year-on-year in February.

"February retail sales indicate continued momentum from consumers," NRF President and CEO Matthew Shay said.

"While the future direction of interest rates and inflation remains uncertain, it's clear that a strong job market and increases in real wages are continuing to support spending."

In the July-February period of 2023-24 fiscal year, garment export to the European Union, the biggest trade block for Bangladesh, reached $16.23 billion, posting a 3.27 percent year-on-year jump, according to data compiled by the Export Promotion Bureau and Bangladesh Garment Manufacturers and Exporters Association.

Apparel shipment to Spain, France, Netherlands, Poland and Denmark showed 8.68 percent, 4.72 percent, 14.55 percent, 21.82 percent and 32.81 percent growth respectively.

However, the apparel export to Italy declined by 0.93 percent year-on-year in the July-February period.

On the other hand, RMG export to Germany, the largest market in the EU, declined by 11.63 percent year-on-year to $4.09 billion.

At the same time, the garment export to the UK and Canada reached $3.85 billion and $998.77 million, posting a 14.64 percent and 1.81 percent year-on-year growth respectively.

Meanwhile, apparel export to the non-traditional markets grew by 10.83 percent year-on-year to $6.30 billion.

Among the major non-traditional markets, exports to Japan, Australia and South Korea increased by 7.12 percent, 21.29 percent and 17.16 percent respectively.

However, apparel export to India declined by 22.99 percent year-on-year in the July-February period.​

 

[Amata]

What else can be expected from cheap and shameless Indians. Tangail saree has originated from Tangail of Bangladesh not West Bengal of India.

Such comments perpetuate harmful stereotypes and undermine the rich cultural heritage shared between India and Bangladesh. Appreciation of cultural origins should unite, not divide.

 

[Saif]

Such comments perpetuate harmful stereotypes and undermine the rich cultural heritage shared between India and Bangladesh. Appreciation of cultural origins should unite, not divide.

Stealing our invention by India in the name of shared cultural heritage is unacceptable.

 

[Saif]

Govt initiates step to enlist reputed int'l suppliers

The government has made a move to prepare a list of renowned international suppliers for ensuring smooth supply of key essential products in the market to face any crisis or price spiral in future. To this effect, the commerce ministry is working on the issue at the request of the Trading Corporat

thefinancialexpress.com.bd

Bangladesh making effort to diversify high-end products and explore new markets: BGMEA President​

UNB

Published :​

Mar 21, 2024 22:49

Updated :​

Mar 21, 2024 22:49

President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Faruque Hassan on Thursday said that Bangladesh is emphasising more on diversifying into high-end products and exploring new export markets.

He said this while the newly elected Executive Committee of the Bangladesh Garments Buying House Association (BGBA), led by its President Mohammad Mofazzal Hossain Pavel made a courtesy call on the BGMEA President at his office in Uttara.

During the meeting, a wide array of issues concerning the ready-made garment industry of Bangladesh was discussed, including its current status, vision, and potential avenues for growth and development.

BGMEA President Faruque Hassan extended his warm congratulations to the newly elected committee of BGBA (elected for the tenure of 2024-26), expressing optimism that under their leadership, BGBA would emerge stronger and play a more important role in the development of the apparel industry.

Faruque Hassan called on BGBA leadership to develop connections with new buyers who do not currently source from Bangladesh.

Both parties acknowledged the pivotal role played by the RMG sector in driving the economic progress of Bangladesh.

Emphasising the significance of collective endeavours, they underscored the importance of unity in addressing the challenges confronting the industry and enhancing its competitiveness amidst a dynamic business environment.

Both sides asserted commitment to working hand in hand towards building a sustainable garment industry in Bangladesh, one that is resilient, socially responsible, and globally competitive.

Other members of the Executive Committee include Md Abdul Hamid Pintu, Senior Vice-President, Mohammed Morshed Alam, A K M Saifur Rahman, Vice-Presidents, Zakir Hossain Secretary General, Emdad Ul Haque Miazi, Md Roman Mia, Joint Secretaries, and Fazlul Haque, Treasurer.​

 

[Saif]

BGMEA emphasises shift towards high-end apparels

Breaking News, International News & Multimedia

thedailynewnation.com

BGMEA emphasises shift towards high-end apparels​

26 Mar 2024, 12:00 am0

Economic Reporter :

As Bangladesh’s ready-made garment (RMG) industry continues to strive towards achieving the ambitious target of $100 billion from garment exports by 2030, a significant shift towards value-added, high-end apparel items is underway in the sector.

To move up the value chain, apparel exporters in Bangladesh are increasingly focusing on product diversification, with a particular emphasis on complex and high-end non-cotton garments such as jacket, lingerie, sportswear, suit, uniform, technical apparels.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the apex trade body representing the apparel sector, is spearheading initiatives to facilitate this transition towards high-value items, read a press release issued Monday.

BGMEA President Faruque Hassan made visits to several garment factories in Adamjee EPZ in Narayanganj to see the production of high-end apparel items.​

 

[Saif]

A timeless tradition

Ahead of every festival, demand for traditional dresses increases all across the country as everyone desires to join the festivities by draping themselves in beautiful clothing.

www.thedailystar.net

A timeless tradition​

Tangail saree weavers busy ahead of Eid, Pahela Baishakh

Ahead of every festival, demand for traditional dresses increases all across the country as everyone desires to join the festivities by draping themselves in beautiful clothing.

Of all kinds of traditional clothes, Tangail sarees hold a special place in the hearts of the country's people due to their long-standing tradition and history.

To a saree aficionado, any festival seems dull if they fail to get Tangail sarees for themselves or their close ones, and the tradition continues year after year.

With that in mind, weavers in Tagail have immersed themselves in weaving the traditional sarees with their hand-looms, as both the Eid-ul-Fitr and Pahela Baishakh draw near.

While there have been recent debacles regarding the GI tag of Tangail sarees, it was of little to no concern to these weavers. Like every year, they are working to come up with an array of variations in colours and designs in tune with the ongoing trends and festivities.

While Tangail sarees are produced across all upazilas of the district, Delduar upazila is known as the main hub for Tangail sarees.

Thousands of weavers in Bajitpur, Dhulutia, Suruj, Bertha, Bamankushia, Gosaijoyair, Taratia, Enayetpur, Belta, Santosh, Kagmari in Sadar upazila, Patrail, Chandi, Nalshodha, Barotia, Chinakhola, Mangalhor, Nalua, Bishnupur, and Deojan areas of Delduar upazila are engaged in weaving these traditional hand-loom sarees .

Also, there are many weavers from different areas in Kalihati Basail upazilas.

While others try to replicate the style of weavers from Tangail and even claim Tangail sarees as their own, the truth is that authentic Tangail sarees, which are unmatched in quality and variety, are traditionally woven in Tangail.

Speaking to this correspondent, weavers said they have already supplied several lakh sarees at shopping malls and shops across the country and even abroad.

After a few years of turmoil due to the pandemic, the weavers said they are expecting a turnaround this year by selling their sarees to women of all ages and professions, with their products ranging in price from Tk 400 to Tk 20,000 and higher.

Apart from traditional Tangail Sarees, the weavers also produce various other sarees -- including hand-loom cotton, Jamdani, Silk, Baluchari silk, half silk, soft silk, Dotari silk, jute silk, Khaddar, Benarasi, Katan, Tasar, Anarkali, Dhansidi, Resham, Manpura, Suti Kuchi, etc.

The sarees produced across the district are mainly sold wholesale during weekly haat (market) days in Karatia and Bajitpur of Sadar upazila and Salla of Kalihati upazila.

Wholesalers from all over the country come to these markets to buy sarees directly from local weavers. Sarees worth several crores of taka are purchased in these markets ahead of Eid, according to market sources.

Raghunath Basak, president of Pathrail Saree Traders Association, said the wholesale of sarees produced here is usually completed within 15 days of Ramadan, while retail sales continue till Eid.

The price of sarees from other places, including those from India, is cheap, but the quality is inferior compared to the traditional sarees weaved in Tangail, he added.

"There are many things that need to be done for the industry, including publicity. India wrongly took the GI rights of our Tangail saree," Raghu noted.

Kaiserul Islam, deputy commissioner of Tangail, said, "The rectification application with the Indian court regarding the GI rights for Tangail sarees is under process through a lawyer. The foreign ministry has been entrusted with this end. The process will be completed by April 1."​

 

[Saif]

Jamdani to be branded internationally: industries secy

Senior secretary of the industries ministry Zakia Sultana on Sunday said that Jamdani, the most artistic textile of Bangladeshi weavers...

www.newagebd.net

Jamdani to be branded internationally: industries secy
Bangladesh Sangbad Sangstha . Dhaka | Published: 22:31, Mar 31,2024

Industries ministry senior secretary Zakia Sultana looks at a Jamdani sari at the Jamdani Fair-2024 jointly organised by Bangladesh Small and Cottage Industries Corporation and Bangladesh National Museum in the capital Dhaka on Sunday. BSCIC chairman Sanjay Kumar Bhowmik, cultural secretary Khalil Ahmed and Bangladesh National Museum director general M Kamruzzaman, among others, were present. — Focusbangla photo

Senior secretary of the industries ministry Zakia Sultana on Sunday said that Jamdani, the most artistic textile of Bangladeshi weavers, would be branded internationally as its alternative was now rare in the contemporary world.

'Jamdani is unparalleled due to its quality weaving technique and beautiful design ... and now it is time to branding the fabric across the world as an alternative of Muslin,' she said.

The industries secretary came up with this remark while inaugurating 'Jamdani Fair-2024', jointly organised by Bangladesh Small and Cottage Industries Corporation and Bangladesh National Museum at Poet Sufia Kamal auditorium of National Museum in the capital Dhaka.

To this end, she said that necessary initiatives had already been taken on behalf of the concerned ministry.

The initiatives include imparting training to the entrepreneurs engaged with this industry, manufacturing of international standard packing, providing incentives for export and arrangement of showcasing at all Bangladeshi foreign missions.

As the fabrics are very much comfortable, so it is very much preferred by foreigners across the world, Zakia Sultana said, adding: 'A training programme has begun for the young weavers on March 11, as they are not expert at all about the design of the saris.'

In 2013, the traditional art of weaving Jamdani was declared a UNESCO Intangible Cultural Heritage of Humanity.

Though mostly used for saris, Jamdani is also used for scarves and handkerchiefs. Jamdani is believed to be a fusion of the ancient cloth-making techniques of Bengal, possibly 2,000 years old, with the muslins produced by Bengali Muslims since the 14th century.

Jamdani is the most expensive product of Dhaka looms since it requires the most lengthy and dedicated work.

Chaired by BSCIC's chairman Sanjay Kumar Bhowmik, the programme was also attended, among others, by cultural secretary Khalil Ahmed and director general of Bangladesh National Museum M Kamruzzaman.​

 

[Saif]

Bangladesh needs to develop MMF-based garments: study

Bangladesh should develop manmade fibre-based value chain and produce new product categories to gain the global market share as...

www.newagebd.net

Bangladesh needs to develop MMF-based garments: study
Staff Correspondent | Published: 23:13, Apr 04,2024

Bangladesh Garment Manufacturers and Exporters Association president Faruque Hassan, vice-president-elect Abdullah Hil Rakib, directors-elect Shovon Islam, Nusrat Bari Asha and Md Nurul Islam, PricewaterhouseCoopers managing director Shalini Shrivastava and director Arindam Saha, among others, are present at a report launching event at BGMEA headquarters in the capital Dhaka on Thursday. — New Age photo

Bangladesh should develop manmade fibre-based value chain and produce new product categories to gain the global market share as the exports of such apparel would increase to 60 per cent by 2030 from the existing 50 per cent in the world, according to a study.


The report titled 'From shirts to shores: blueprint for Bangladesh RMG industry' projected that the global export of readymade garment would grow to $1,121 billion, which was $953 billion in 2022.


It said that of the projected $1,121 billion global apparel exports, 60 per cent would be MMF-based garments.

In a bid to navigate the challenges and seize opportunities ahead, Bangladesh Garment Manufacturers and Exporters Association commissioned PricewaterhouseCoopers, a research farm, to conduct the study.

The study said that 50 per cent of $953 billion global garment exports in 2022 was MMF based, 37 per cent cotton-based and 13 per cent others.

It showed that China was the leader for MMF-based garment exports with 62 per cent of the market share in 2022 followed by Vietnam, Italy and Turkey.

The BGMEA on Thursday published the report at an event held at the headquarters of the trade body at Uttara in the capital Dhaka.

The report mentioned that Bangladesh should develop the ecosystem for being competitive in manufacturing of select products as the story of MMF would remain strong in global sourcing.

The report showed that the total global trade of four promising products — jackets/suits/blazers, activewears/swimwears, technical garments and brassieres — accounted for $100 billion and 73 per cent of them was MMF based.

It said that focused strategy was required for each promising product – market mix prioritising the high value-added products.

The study also suggested positioning Bangladesh as supplier of value-added MMF-based products in the European Union countries, the United States and the United Kingdom.

It also recommended continued efforts in penetrating new markets, including Japan and South Korea.

The report proposed making investments in automation, digitalisation and resource efficient technologies.


BGMEA president Faruque Hassan emphasised the significance of research-driven strategies in sustaining competitiveness amidst evolving global dynamics.

He said that the report offered vital insights and actionable recommendations aimed at building a more prosperous future for Bangladesh's apparel sector.

'These strategies outlined in the report will serve as guidelines for us to navigate challenges and capitalise on opportunities, thus maintaining our competitiveness in the global market,' BGMEA president said.

BGMEA vice-president-elect Abdullah Hil Rakib, and directors-elect Shovon Islam, Nusrat Bari Asha and Md Nurul Islam were present at the report launching event.

PwC managing director Shalini Shrivastava and director Arindam Saha, among others, attended the programme.​

 

[Saif]

Three priorities for a smart RMG industry

Bangladesh's Ready-Made Garment (RMG) industry stands as a cornerstone of the nation's economy, driving growth and employment while commanding a significant presence in the global fashion market. However, the industry faces pressing challenges in an era of rapid technological advancement and shifti

thefinancialexpress.com.bd

Three priorities for a smart RMG industry​

MOHIUDDIN RUBEL

Published :​

Mar 31, 2024 21:24

Updated :​

Mar 31, 2024 21:24

Bangladesh's Ready-Made Garment (RMG) industry stands as a cornerstone of the nation's economy, driving growth and employment while commanding a significant presence in the global fashion market. However, the industry faces pressing challenges in an era of rapid technological advancement and shifting consumer demands. To sustain its leadership position and embrace the future of fashion, Bangladesh's RMG sector must undergo a transformative journey, leveraging strategic technological interventions.


To sustain its position as a global leader in garment manufacturing and to ensure its continued relevance in an increasingly interconnected world, the RMG sector must embrace innovation and technological integration. This narrative delves into three paramount priorities that, when seamlessly integrated, can weave together a fabric of a smarter, more sustainable, and ethically conscientious RMG sector.

CAPACITY DATABASE—CHARTING THE INDUSTRY'S LANDSCAPE IN REAL-TIME: Imagine a real-time map of the industry's capacity, pulsating with data that reveals production strengths, limitations, and potential bottlenecks. This is the power of a capacity database, a comprehensive repository of information that empowers proactive decision-making.

This foresight enables the prevention of over-capacity, anticipation of shortages, and optimisation of production efficiency. Such transparency and unified data empower businesses to adapt swiftly, customise offerings, and forecast future demands, ensuring continued success on the global stage. This transparent and unified data landscape empowers businesses to adapt with agility, personalise offerings, and anticipate future needs, ensuring continued relevance and success in the global market.

ALL-DATA PORTAL CONNECTIVITY: THE SYMPHONY OF INFORMATION FLOW: Imagine an interconnected ecosystem where stakeholders in the RMG industry seamlessly exchange information, akin to a symphony orchestra playing in perfect harmony. All-data portal connectivity achieves this by facilitating real-time data exchange through cloud-based platforms.

This enhanced visibility enables agile decision-making, streamlines supply chain management, and fosters collaboration across the industry. By embracing standardized data formats and secure platforms, Bangladesh's RMG sector can establish a unified data infrastructure that catalyzes innovation and resilience.By fostering collaboration and establishing standardized data formats and secure platforms, we can create a unified data infrastructure that serves as the bedrock for a smarter and more resilient RMG sector.

SUPPLY CHAIN SMARTNESS: WEAVING INTELLIGENCE INTO THE FABRIC OF PRODUCTION: The concept of supply chain smartness revolutionises traditional production processes, integrating technologies like IoT, AI, and blockchain to optimise efficiency and sustainability.

Imagine a supply chain infused with intelligence, where every step - from raw material sourcing to finished product delivery - is optimised for efficiency and sustainability. This is the essence of supply chain smartness, achieved through leveraging sensors, AI-powered tools, and blockchain's transparency. From streamlining production schedules to identifying quality issues early and promoting sustainable sourcing, supply chain smartness can equip Bangladesh's RMG sector to thrive in a rapidly evolving market landscape.

By strategically weaving these technological threads into the fabric of the Bangladeshi RMG industry, we can create a tapestry not just of efficiency and profitability, but of sustainability, ethical practices, and a future where technology empowers both businesses and workers. This transformation marks not only the sustained global leadership of the Bangladesh RMG industry but also the birth of a new standard for a smart, sustainable, and ethical fashion landscape. With the government's support and industry-wide collaboration, Bangladeshi RMG industry can continue to flourish, woven with threads of innovation, sustainability, and global leadership.

Mohiuddin Rubel, Director, BGMEA and Additional Managing Director, Denim Expert Limited.​

 

[Saif]

Time for fashion brands, retailers to rethink green strategies

Over the past two or three years, we have seen a huge backlash against sustainability marketing in the West.

www.thedailystar.net

Time for fashion brands, retailers to rethink green strategies

Fashion brands have spent almost two decades attempting to use sustainability as a marketing tool, with varying degrees of success. For many, launching any new product will have a "green" angle to it. Sustainability sells—at least that is what we have always been led to believe. But does it, really? My guess is that most consumers still value qualities such as style, fit, value for money and choice above all else. They also have their favourite brands that they stay loyal to through thick and thin. Take, for instance, the remarkable success of sports giants Adidas and Nike in dominating the global market for sporting apparel for so long. Building a strong brand is critical to business success.

However, over the past two or three years, we have seen a huge backlash against sustainability marketing in the West. The word "greenwashing" has become commonplace, and there is a growing lack of trust around brands and the claims they are making about their apparel products. Some brands have been reported for making misleading or false claims about their clothing collections. Some are facing potential fines. All are now considering how to approach this subject. Is it worth making green claims if the risk is accusations of greenwashing, bad publicity and reputational damage? At what point will brands begin to think that the drawbacks outweigh the positives? Might we see more "greenhushing" moving forward?

The problem they all face is that, as their output grows, their supply chain emissions increase. In the absence of a rapid shift to renewable energy in supply chains, it is a thankless task. The net result of all this is that in about five years or so, the fashion industry will have to make radical changes in supply chains in order to reduce carbon intensity in line with protocols such as the Paris Agreement. If they cannot do this, the backlash from consumers, regulators and investors alike will be huge.

I think we may already be reaching that stage already. Aside from the fact that the benefits of green marketing are negligible anyway, there is another issue to consider: supply chains. Most major fashion brands have now set targets to reduce carbon emissions in their supply chains (tier 3). Many have set science-based targets on these issues, and this is an area which investors and regulators alike are watching closely. Brands are under a huge—and growing—level of scrutiny on this topic.

While fashion brands are often criticised for not financially supporting the green transition in supply chains, major brands are committing time to reduce the carbon impact of their supply chains. This is logical because if they fail on this issue, there will be serious questions to answer when we hit key milestones related to sustainability and green transition.

I closely follow the sustainability reporting of fashion brands and retailers. Most are now reporting in great detail their progress around reducing CO2 emissions. In some cases, they are achieving great success in this area, but mainly this is in their own operations, such as retail stores. These emissions are a tiny part of a brand's total emissions—often less than 10 percent.

When it comes to reducing emissions in supply chains, brands have not been quite so successful. Some are making progress in this area but, for most, it is a case of two steps forward, three steps back. Many major brands set CO2 reduction targets before the pandemic. Since then, their supply chain emissions have gone up.

The problem they all face is that, as their output grows, their supply chain emissions increase. In the absence of a rapid shift to renewable energy in supply chains, it is a thankless task. The net result of all this is that in about five years or so, the fashion industry will have to make radical changes in supply chains in order to reduce carbon intensity in line with protocols such as the Paris Agreement. If they cannot do this, the backlash from consumers, regulators and investors alike will be huge.

So many fashion brands are now playing catch-up because they have been unable to move the needle on supply chain emissions in the past five years. It would not be a surprise to see some of the relevant goals getting an extended deadline, but I am not sure this will go down well with investors and consumers.

I believe that while consumers may not care too greatly for products packaged in a "green" way, they do take notice of broader climate issues. There will come a point when the public at large will begin to look for people to blame, and large retailers with carbon-intensive supply chains will be high on the list. So brands need to be ready; they need to be seen doing all they can to cut their carbon footprint, and woe betide those who miss the critical 2030 targets.

So perhaps it is time to forget eco fashion and green claims by brands and retailers. As we move forward, green marketing could be less about products and more about the energy and emissions used in the production of clothing. This could spell opportunities for progressive suppliers.

---

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

 

[Saif]

Import RMG from Bangladesh directly, PM tells Brazil

Prime Minister Sheikh Hasina today called upon Brazil to directly import readymade garments (RMG) from Bangladesh

www.thedailystar.net

Import RMG from Bangladesh directly, PM tells Brazil

Photo: BSS

Prime Minister Sheikh Hasina today called upon Brazil to directly import readymade garments (RMG) from Bangladesh.

"RMG goods from Bangladesh is being exported to Brazil on a limited scale through a third party. It will be more affordable for Brazil if the country directly imports RMG items from Bangladesh," she said.

The prime minister made the remarks when a delegation of Brazil led by its Foreign Minister Mauro Vieira paid a courtesy call on her at her office in Dhaka this morning.

PM's Speech Writer M Nazrul Islam briefed the newsmen after the meeting.

Stressing the need to ensure trade balance between Bangladesh and Brazil, Sheikh Hasina said the trade balance between the two countries has highly tilted toward Brazil.

Brazil can import more products including jute and jute goods and leather items from Bangladesh to make sure the trade balance between the two countries, she continued.

The prime minister said Bangladesh mainly imports sugar, soybean oil and cotton from Brazil.

"There is huge scope to increase bilateral trade between Bangladesh and Brazil," she said.

Sheikh Hasina has also stressed the need for enhancing the existing bilateral relations between Bangladesh and Brazil.​

 

[Saif]

Bangladesh's cotton import to rise on bright RMG export prospects: USDA

Despite facing a number of economic challenges, Bangladesh may end up importing more cotton year-on-year in marketing year (MY) 2024-25 to meet increasing global demand for garments.

www.thedailystar.net

Bangladesh's cotton import to rise on bright RMG export prospects: USDA

Despite facing a number of economic challenges, Bangladesh may end up importing more cotton year-on-year in marketing year (MY) 2024-25 to meet increasing global demand for garments.

The nation, the second-largest garment exporter after China, is projected to import 80 lakh bales of raw cotton (1 bale equals 218 kilogrammes), the US Department of Agriculture (USDA) said.

This is a 6.7 percent increase from that in MY 2023-24, which begins in August for cotton, the agency said in its report on the production, import and use of cotton in Bangladesh.

Published earlier this month, the report forecast local spinning mills to use a higher amount of raw cotton due to lower imports of yarn and fabric.

The report by USDA's Foreign Agricultural Service said Bangladesh's garment industry is expecting exports to increase by 7 to 10 percent in 2024, rebounding from a decrease in orders during the global economic slowdown.

It said ready-made garments (RMG) exports during the first two months of 2024 reached $9.47 billion, posting 13.2 percent year-on-year growth, and expected this growth to prevail in MY25, leading to an increase in the import of raw cotton.

"Industry contacts noted that Bangladesh's RMG industry is expecting higher numbers of work orders from the second quarter of 2024 with rebounding global demand for RMG products," said the USDA.

The dwindling forex reserve is another reason that may lead to increased consumption of cotton and a decline in purchases of pricier fabrics.

The US agency said many garment factories in Bangladesh have their own spinning mills and prefer to import raw cotton rather than yarn.

These companies, which earn from exporting garments, can open letters of credit (LCs) as they have their own source of US dollars, it added.

"Companies that solely import yarn and fabric will continue to face forex challenges as they tend to be smaller than the fully integrated cotton spinning mills and have more difficulty opening LCs, leading to a reduction in their imports," it said.

"Industry contacts also anticipate a surge in global RMG demand after April 2024, which could increase cotton demand in Bangladesh."

However, it maintained its projection on Bangladesh's cotton imports at 75 lakh bales in MY24 and domestic consumption at 78 lakh bales.

Citing the National Board of Revenue's data, it said Bangladesh imported 41 lakh bales of raw cotton in the first seven months of MY24.

The report, citing spinning industry insiders, said shortages of gas and electricity hampered their production capacity in the first and second quarters of 2023.

However, since the beginning of MY24, the situation has improved slightly.

The industry estimates higher cotton imports and utilisation based on the increased demand for garments in the remaining months of MY24, according to the report.​