[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

RMG Businesses eye opportunities amid US-China trade war

The country’s readymade garment manufacturers said that Bangladesh needs to improve and stabilise its law-and-order situation and business atmosphere to seize the opportunities emerging from the ongoing US-China trade tensions.

www.newagebd.net

RMG Businesses eye opportunities amid US-China trade war
Saddam Hossain 15 February, 2025, 23:04

A file photo shows workers sewing clothes at a readymade garment factory in Narayanganj. | New Age photo

The country’s readymade garment manufacturers said that Bangladesh needs to improve and stabilise its law-and-order situation and business atmosphere to seize the opportunities emerging from the ongoing US-China trade tensions.

After assuming office as the president of the United States, ‘tariff man’ Donald J Trump has implemented a series of executive order tariffs on its key trading partners, including Canada, Mexico, and China, as part of its broader trade policy agenda.

Recently, he imposed additional 25 per cent tariffs on Canadian and Mexican imports and 10 per cent tariffs on Chinese goods including textiles which may shift the trade dynamics between these two economic giants.

The industry insiders said that as Chinese exports to the US become more expensive due to tariffs, global buyers will shift their orders to other low-cost countries.

In this regard, Bangladesh will be a natural choice along with other competitors with its unshakable RMG sector.

The US is the single largest export destination for Bangladeshi RMG shippers, who exported apparel items worth $7.34 billion in 2024.

Moreover, Bangladesh secured the second-largest source of US apparel imports, with a 9.26 per cent market share.

China remains the market leader in the US, with a market share of 20.83 per cent, and the country exports apparel items worth $16.51 billion.

Industry insiders said that the country’s apparel exports to the US are stable thanks to competitive pricing, sustainability, and compliance with international labor and environmental standards.

If Bangladesh addresses the remaining challenges, it could emerge as a key beneficiary of this geopolitical shift.

Talking to New Age, Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that the law-and-order situation is improving gradually.

“But we need more improved and stable situation. The government should work stop shutting down of any factories. They have to provide policy supports in this regard,” he added.

He also said that the government has to solve the ongoing issues related to gas and energy. Interruption in gas and energy supply may hinder the golden opportunity.

“We also need to resolve the issues related to bonds, customs, and NBR. The corruption didn’t stop yet which is concerning for us. We hope the interim government can take many drastic decisions without any political burden. We urge the government to do this in the sake of country’s economy,” he added.

He also said that buyers have confidence in Bangladesh due to ethical and eco-friendly production practices. So, the manufacturers and government should work together to retain this confidence by maintaining a good business atmosphere, sustainable production, and a proper work environment.

Currently, Bangladeshi apparel exporters face a tariff of more than 15 per cent when exporting to the US, whereas Chinese exporters face 25 per cent.

Mohiuddin Rubel, former director of the BGMEA, told New Age that due to high production costs, apparel businesses in China have been gradually shifting.

“However, Trump’s tariff policy is making it earlier. Our competitors are also as same as our position to grab them, we have to address the challenges to grab these,” he added.

An improved business atmosphere and security will play crucial roles in raising businesses and attracting foreign direct investment.

“In the last fiscal, the FDI dropped by 8.8 per cent. Moreover, Bangladesh ranked 12th most corrupted country in 2024. We have to work hard to remove corruption to do better business and to attract more FDI,” he added.

He also said that the country should immediately focus on issues like infrastructure, fuel, and energy.

The manufacturers also stated the country must diversify its product basket by shifting its focus from T-shirts and sweaters and branching out into higher-value items.​

 

[Saif]

Apparel exports to Europe, US post robust growth

Bangladesh’s apparel shipments to key export markets—Europe and the US—posted robust growth in the first seven months of the current fiscal year of 2024-25.

www.thedailystar.net

Apparel exports to Europe, US post robust growth

Bangladesh's apparel shipments to key export markets—Europe and the US—posted robust growth in the first seven months of the current fiscal year of 2024-25.

This ushered in hopes that work orders would continue to come in increasing quantities, as some orders had been diverted from China amid tariff wars between the world's two biggest economies.

Exports to the European Union shot up 13.91 percent year-over-year to $11.81 billion in the July–January period of fiscal year 2024-25.

In the case of the US, the single biggest market for Bangladesh's garments, clothing shipments surged 16.45 percent to $4.47 billion in the first seven months of this fiscal year.

With this growth, the share of exports to the EU increased to 50.15 percent in the July–January period of this fiscal year, up from 49.31 percent in the same period a year ago.

The share of garment exports to the US increased to 18.99 percent in the July–January period of FY25 from 18.27 percent a year ago, according to data compiled by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Mohiuddin Rubel, managing director of Bangladesh Apparel Exchange, which describes itself as an organisation promoting Bangladesh's apparel industry, said apparel consumption declined worldwide in the last fiscal year.

And imports by both the US and Europe fell, he said.

"Now these economies are doing better. Obviously, this is a reason. Buyers are placing more orders," he said.

Export data showed that within the EU, Germany emerged as a key market, with Bangladesh's exports to the biggest economy in Europe growing 13.47 percent year-on-year.

Spain, France, and the Netherlands were the other major markets in the EU, where there were substantial exports.

The growth of apparel exports to the UK, another major market accounting for 10.83 percent of total shipments, increased by 4.55 percent in the July–January period of FY25.

Shipments of garments to non-traditional markets increased by 6.42 percent during the period, thanks to higher purchases by Japan and Australia, two major markets.

Yet exports to Russia, South Korea, China, the United Arab Emirates, and Malaysia have declined.

Rubel, also a former director of the BGMEA, said exporters focused on non-traditional markets when demand for apparel slowed in the US and Europe.

But there should be a focus on non-traditional markets for product diversification and the development of new markets, he said.

He said Bangladesh had been performing well in South Korea. "We should explore the reasons," he said.

Shams Mahmud, managing director of Shasha Denims Ltd, an apparel exporter, said, "The current growth is good. Some buyers have shifted orders from China because of the US-China tariff war."

"Global brands that have outlets in Asia have increased sourcing from us," he said, adding that one of the internal factors was an improvement in law and order.

Mahmud, also a former president of the Dhaka Chamber of Commerce and Industry, said the current export trend would continue if the industry can smoothly address payment issues for workers during the two upcoming Eid festivals and ensure a stable energy supply.

"If we can pass this critical period, we will be able to achieve our export projections," he said.

Rubel said the ongoing global trade tensions were reshaping the landscape, presenting opportunities that Bangladesh could capitalise on, provided the country possesses the necessary productive capacity.

"Concurrently, there should be a concerted focus on investments in backward linkages to support and enhance our RMG sector's competitiveness and growth potential," he said.​

 

[Saif]

Bangladesh’s RMG exports show moderate growth, EU remains key market

Bangladesh’s Ready-Made Garment (RMG) exports have shown moderate growth, with the European Union remaining a key market, according to data from the Export Promotion Bureau (EPB) for the July-January period of the fiscal year 2024-25. The EU represented 50.15% of Bangladesh’s total RMG

thefinancialexpress.com.bd

Bangladesh’s RMG exports show moderate growth, EU remains key market
UNB
Published :
Feb 16, 2025 20:59
Updated :
Feb 16, 2025 20:59

Bangladesh’s Ready-Made Garment (RMG) exports have shown moderate growth, with the European Union remaining a key market, according to data from the Export Promotion Bureau (EPB) for the July-January period of the fiscal year 2024-25.

The EU represented 50.15% of Bangladesh’s total RMG exports, with a total value of US$11.81 billion, Mohiuddin Rubel, former director of BGMEA, said on Sunday while sharing the data.

Shipments to the United States reached US$4.47 billion, accounting for 18.99% of the total share, while the UK market was also significant, with exports valued at US$2.5 billion, equivalent to 10.83% of Bangladesh’s total RMG exports during the specified timeframe.

In terms of growth, our RMG exports to the EU expanded by 13.91% year-over-year, with the USA showing a robust increase of 16.45%. The RMG exports to the UK, however, grew at a more modest rate of 4.55%.

Within the EU, Germany emerged as a key market, with Bangladesh’s exports amounting to US$2.97 billion, trailed by Spain at US$2 billion, France at US$1.28 billion, and the Netherlands at US$1.25 billion. The growth rates were particularly notable in Germany (13.47%), the Netherlands (27.3%), Poland (13.7%), Denmark (18.56%), and Sweden (26.7%).

Bangladesh’s RMG sector also demonstrated growth in non-traditional markets, with an overall increase of 6.42%, signaling potential for further expansion.

Among these markets, Japan led with imports totaling US$721 million, followed by Australia at US$512 million, and India at US$427 million. Exports to countries like Turkey and Mexico are also significant, amounting to US$263 million and US$208 million, respectively. While growth in Japan, Australia, India, Turkey, and Mexico is encouraging during this period, exports to Russia, Korea, China, UAE, and Malaysia have declined.

The continued growth in exports is heavily reliant on the EU and USA, which remain the primary markets for Bangladesh, highlighting further potential within these regions.

The ongoing global trade tensions are reshaping the landscape, presenting opportunities that Bangladesh could capitalize on, provided we possess the necessary productive capacity.

Concurrently, there should be a concerted focus on investments in backward linkages to support and enhance our RMG sector’s competitiveness and growth potential.​

 

[Saif]

Apparel exports to nontraditional market surge by 6.42pc

Bangladeshi apparel exporters bagged $3.97 billion from the nontraditional market in July-January of the financial year 2024-25, which is 6.42 per cent higher than $3.72 billion in the same period of the previous financial year, according to the data from the Export Promotion Bureau...

www.newagebd.net

Apparel exports to nontraditional market surge by 6.42pc
Staff Correspondent 17 February, 2025, 23:02

A file photo shows workers sewing clothes at a readymade garment factory on the outskirts of Dhaka. Bangladeshi apparel exporters bagged $3.97 billion from the nontraditional market in July-January of the financial year 2024-25. | New Age photo

Bangladeshi apparel exporters bagged $3.97 billion from the nontraditional market in July-January of the financial year 2024-25, which is 6.42 per cent higher than $3.72 billion in the same period of the previous financial year, according to the data from the Export Promotion Bureau.

The exports to the nontraditional market made up a significant 16.84 per cent of Bangladesh’s total RMG exports in the mentioned period.

According to the EPB data, Bangladesh exported apparel items worth $23.55 billion to their global export destinations in the July-January FY25. The earnings from woven was $10.86 billion, and knitwear was $12.68 billion.

In terms of apparel exports, countries like the US, Canada, the UK, and EU are considered traditional markets, while other countries are considered non-traditional markets.

Japan, Australia, Russia, India, China, South Korea, UAE, Malaysia, Brazil, Mexico, and others are major non-traditional export destinations.

Of the $3.97 billion export earnings, $1.99 billion was from knitwear items, and $1.97 billion was from woven.

Among the nontraditional market, Japan was the top destination for Bangladeshi RMG products, as the exporters shipped apparel items worth $721.50 million to Japan in July-January of FY25.

This was followed by Australia, India, and South Korea, where Bangladesh exported RMG items worth $512.88 million, $427.62 million, and $271.48 million, respectively.

In the mentioned period, the export earnings from non-traditional Turkiye, Mexico, the United Arab Emirates, and China markets stood at $263.08 million, $208.03 million, $144.32 million, and $130.91 million, respectively, in July-January of FY25.

However, exports have decreased in several markets, including Russia, South Korea, China, the United Arab Emirates, Malaysia, Saudi Arabia, and New Zealand.

According to industry insiders, there is huge potential in nontraditional markets for the country’s apparel exporters. In this regard, detailed research on the trends, tastes, and clothing styles of local consumers is a must to increase exports manifold there.

In July-January of FY25, the European Union remained the largest destination for Bangladeshi apparel exporters where the country shipped apparel items worth $11.81 billion, which was 50.15 per cent of the total RMG exports.

Bangladesh shipped apparel worth $4.47 billion to the USA, the largest single destination for the country’s apparel, in the mentioned period. The US market covered 18.99 per cent of the total apparel exports.

Moreover, the EPB data added that in July-January of FY25, Bangladeshi manufacturers exported RMG products worth $2.55 billion to the UK, 10.83 per cent of the total export earnings from the RMG sector.

Bangladesh received $751 million from Canada in the period as mentioned above, which was 3.19 per cent of the total earnings from apparel exports.

Talking to New Age, Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association, said that exports to the nontraditional market have witnessed a boost since 2009; however, for several years, they stood around 16-18 per cent.

‘We need to figure out the demands, trends and upcoming events at the nontraditional markets and focus on our production as per this. Like, Saudi Arabia will host FIFA World Cup 2034 and is spending much on domestic sports. We need to focus on Saudi to grab the market,’ he added.

He also urged the embassies in the respected countries to be proactive and urged the manufacturers to attend events and penetrate them.

Former BGMEA director Mohiuddin Rubel urged qualitative changes and diversifying product lines.

‘Development of infrastructure that meets product demand requires enhanced R&D,’ he added, saying that they must come out of the traditional way to grab non-traditional markets.

In FY24, Bangladesh earned $6.09 billion from the nontraditional markets.​

 

[Saif]

Apparel exports to EU rise by 4.8pc in 2024

Bangladesh’s apparel exports to the European Union in 2024 increased by 4.8 per cent to 18.27 billion euros from 17.44 billion euros in 2023 riding on the late year surge in shipment...

www.newagebd.net

Apparel exports to EU rise by 4.8pc in 2024
Moinul Haque 18 February, 2025, 22:39

Bangladesh’s apparel exports to the European Union in 2024 increased by 4.8 per cent to 18.27 billion euros from 17.44 billion euros in 2023 riding on the late year surge in shipment.

According to data from the Eurostat, the statistical office of the EU, Bangladesh’s knitwear segment saw a notable increase in 2024, rising from 10.66 billion euros in 2023 to 11.04 billion euros in 2024, with 3.6 per cent increase.

The woven apparel sector also saw stronger growth of 6.7 per cent, increasing from 6.78 billion euros in 2023 to 7.24 billion euros in 2024.

Data showed that December 2024 marked a strong finish to the year for EU apparel imports from Bangladesh, with total imports rising by 36.2 per cent to 1.54 billion euros compared with those of 1.13 billion euros in December 2023.

The EU data also showed that Bangladesh’s apparel exports to the 27-nation economic bloc in past one decade increased by 58 per cent to 18.27 billion euros in 2024 from 11.54 billion euros in 2015.

According to the data, between 2015 and 2019, Bangladesh’s apparel exports to the EU grew steadily by 7 to 9 per cent annually, reaching 14.96 billion euros by 2019.

However, in 2020, the Covid pandemic caused a sharp decline of 17.6 per cent, with exports falling to 12.32 billion euros.

The apparel exports to the EU then rebounded strongly, with a 16-per cent growth in 2021, reaching 14.29 billion euros, and a remarkable 53-per cent increase in 2022 and thus soaring to 21.91 billion euros.

In 2023, Bangladesh’s apparel exports to the EU dropped by 20.4 per cent to 17.44 billion euros due to global challenges, including war and high inflation, but by 2024, the sector showed resilience, with exports rising by 4.8 per cent to 18.27 billion euros.

Data showed that the overall apparel imports by the EU from different countries in 2024 slightly increased by 1.37 per cent to 85.48 billion euros from 84.33 billion euros in 2023.

Bangladesh remained the second-largest apparel exporter to the EU after China.

China retained its position as the EU’s largest apparel exporter in 2024, with exports rising by 2.3 per cent to 24.04 billion euros from 23.5 billion euros in 2023.

The EU’s apparel imports from Turkey in 2024 declined by 6.7 per cent to 9.31 billion euros from 9.29 billion euros in 2023.

The EU’s apparel imports from India increased by 1.9 per cent to 4.18 billion euros in 2024 compared with those of 4.1 billion euros in the preceding year.

Vietnam’s apparel exports to the EU in 2024 grew by 4 per cent to 3.98 billion euros from 3.82 billion euros in 2023.

Cambodia and Pakistan had stellar performance in exporting readymade garments to the EU in 2024.

The EU’s apparel imports from Cambodia in 2024 increased by 20.3 per cent to 3.9 billion euros compared with those of 3.24 billion euros in the previous year.

Pakistan’s apparel exports to the EU increased by 11.6 per cent to 3.51 billion euros in 2024 compared with those of 3.13 billion euros in 2023.​

 

[Saif]

Textile unit closures may surge amid rising gas prices: BTMA

Bangladesh Textile Mills Association president Showkat Aziz Russell on Tuesday said that textile sector in Bangladesh might experience a surge in factory closures as a result of further hike in gas prices...

www.newagebd.net

Textile unit closures may surge amid rising gas prices: BTMA
Staff Correspondent 18 February, 2025, 22:33

Bangladesh Textile Mills Association president Showkat Aziz Russell speaks at a press conference in the capital Dhaka on Tuesday. | Press release

Bangladesh Textile Mills Association president Showkat Aziz Russell on Tuesday said that textile sector in Bangladesh might experience a surge in factory closures as a result of further hike in gas prices.

He said that despite hiking the gas price by nearly 179 per cent in 2023, the government still could not ensure uninterrupted gas supply to the industries.

‘In this scenario, if the government doubles the gas prices, Bangladesh’s textile sector will never become sustainable and the sector will lose its competitiveness,’ he added.

He said that it would also be a hindrance in getting fresh investments and bank finance.

The BTMA president was speaking at a press conference on the upcoming Dhaka International Textile and Garment Machinery Exhibition (DTG) in the capital Dhaka on the day.

Responding to a question, he said that it was high time to attract investment to Bangladesh, as Chinese factories were phasing out from the textile business.

‘China is shifting towards high-end industries, leading to closure of some apparel, textile and footwear companies. Moreover, a number of businesses are relocating from China due to rising labour costs,’ he added.

He said that US president Donald Trump had imposed an additional 10 per cent import duty on Chinese goods, resulting in some businesses moving their operations elsewhere.

‘To attract this investment, the government must ensure stable utility prices and an uninterrupted supply of fuel and gas. If we can secure some of these investments, it will help create employments in our country,’ he added.

He also expressed concerns over frequent policy changes. He urged the government to include industry representatives in Bangladesh Petroleum Corporation and Titas Gas boards to oversee gas procurement and distribution processes.

Regarding the national election, he said that the announcement of the national polls was necessary so that they could plan their investments.

Russell also pointed out that the textile industry had lost competitiveness over the years due to rising business costs, particularly as utility prices continued to increase.

Regarding the yarn import from India, he said that if there had been an uninterrupted supply of gas, they would not have imported much yarn from the neighbouring country.

‘Bangladesh imported yarn worth $2.7 billion in recent times as our factories are sitting idle due to gas shortage. For this reason, a number of workers have become jobless and now they are doing various miscreant activities,’ he added.

He also said that the past government did not explore gas, but completed contracts to buy gas from spot markets, which led to dollar crises. The problems are still persistent as most of the contracts were long-term, he said.

The BTMA, in collaboration with Yorkers Trade & Marketing Service Co, Limited, Hong Kong, will organise the 19th edition of DTG from February 20 to 23 at the International Convention City Bashundhara in the capital Dhaka.​

 

[Bilal9]

Garments industry textile leftovers are being converted to biodegradable Poly-ethylene sheeting (for bags) by ECOVIA who have a patent on the process. The bags degrade in about 180 days and turn into fertilizer.

 

[Saif]

Bangladesh should annually review minimum RMG wage amid inflation pressure: Study

Bangladesh should annually review its wage-setting process, as apparel workers in the country who are paid the minimum wage are losing income year-on-year due to current inflation rates, said a policy brief from Cornell University. The brief, titled “Waiting Game: Minimum Wage-Setting

thefinancialexpress.com.bd

Bangladesh should annually review minimum RMG wage amid inflation pressure: Study
Monira Munni
Published :
Feb 21, 2025 23:20
Updated :
Feb 21, 2025 23:21

Bangladesh should annually review its wage-setting process, as apparel workers in the country who are paid the minimum wage are losing income year-on-year due to current inflation rates, said a policy brief from Cornell University.

The brief, titled “Waiting Game: Minimum Wage-Setting in Bangladesh’s Apparel Industry”, by the Global Labor Institute (GLI), a part of Cornell University ILR School, was published recently. It made five key recommendations, including institutionalising the annual review of minimum wages and scheduling a review of the 2023 minimum wage in 2025.

The GLI, which is dedicated to independent quantitative research and action, analysed Bangladesh’s national minimum wage-setting policy as the new government plans major updates to labour laws and practices.

The researchers note that the long-time minimum wage policy—which reviews wages every five years—combined with high inflation, favours employers over workers.

In addition, they noted that the local ‘purchasing power’ of workers’ wages in Bangladesh is significantly lower than that of workers in competing apparel-producing countries.

Regarding employers’ argument that rising labour costs in a labour-intensive sector would make their industry less competitive, the brief showed that there is no evidence to support this. It also highlighted that the experiences of Vietnam, Indonesia, Cambodia, and other countries in recent years undermine this argument.

Citing data, the brief said apparel brands and retailers' advocacy for meaningfully higher wages and a regular wage-setting process has been ineffective. The 2023 wage revision and the fall of the Hasina government in 2024 have drawn the industry’s attention once again.

As a result, the researchers are calling on Bangladesh’s government to simplify the minimum wage structure and adjust wages annually.

It also recommended that “genuine trade union representatives chosen by labour federations be appointed to a wage board.”

Speaking to The Financial Express on Thursday, Jason Judd, executive director of Cornell ILR, explained that Cambodia’s apparel industry is a good example for Bangladesh to follow, citing growth in wages and output.

Judd, who is in Bangladesh for a short visit until Friday, said the Cambodian government took a similar approach when it overhauled its wage-setting policy a decade ago.

“The experience of Cambodia’s apparel industry in remarkably similar circumstances is very clear,” he said, adding that a decade ago, after street protests and government violence against workers, brands joined the campaign for change, and wages and output have grown steadily since.

“Wages have grown regularly alongside orders and output since then in Cambodia,” he told The Financial Express.

He cited one of the Institute’s reports conducted in 2023, where workers interviewed estimated spending Tk 3,500 on medicine and Tk 2,000 on electricity at home in the hottest months when they had to run a fan constantly to sleep.

Monthly bills of this size equal 61 per cent of the average monthly rent payment of Tk 9,000, and workers reported borrowing against their personal belongings and paying high interest rates to afford electricity and medicines in May, June, and July.

“The Bangladesh industry’s price advantage has been maintained in part because of this downward pressure on real income for workers, as their low wages and the five-year review period work to keep production prices down and, therefore, enable competition with larger countries like China,” he said.

“There is a clear need and room—both political and economic—for an annual wage-setting process in Bangladesh. It’s long overdue. Imagine waiting five years for a raise while inflation rages [sic] at 10 per cent—that’s the situation for workers under the current scheme,” he said.

The brief said concrete actions the government of Bangladesh can take in the coming months include collecting explicit reassurances from brands that they support wage increases through higher prices. This includes references to labour-costing practices and the persistence of below-cost pricing by brands.

Other recommendations included distinguishing genuine worker representatives from others in the wage-setting process and social dialogue more generally.

It also called for extending freedom of association and bargaining rights to workers in export processing zones, complementing democratic representation of workers and wage enforcement efforts.​

 

[Saif]

RMG exports to all markets rise in first half of FY25

Exports to the European Union (EU), the United States, the United Kingdom, Canada, and other emerging markets have all increased.

en.prothomalo.com

RMG exports to all markets rise in first half of FY25
Staff Correspondent
Dhaka
Updated: 22 Feb 2025, 10: 30

A RMG factory Prothom Alo

Ready-made garment (RMG) exports have apparently rebounded with a notable surge in shipments to all major markets in the first six months of the 2024-25 fiscal year.

Exports to the European Union (EU), the United States, the United Kingdom, Canada, and other emerging markets have all increased. Except for the UK and emerging ones, all the markets registered growth over 10 per cent.

The RMG exports totaled USD 19.89 billion during the July-December period of the fiscal year, which is up by 13.28 per cent from USD 17.56 billion of exports recorded in the same period previous year.

Citing data from the Export Promotion Bureau (EPB), the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) noted that around 50 per cent of the total exports went to the European Union (EU) nations during the first six months of the current fiscal year. Exports to the EU reached USD 9.87 billion, which is 15.22 per cent higher than the previous year’s same period.

Among EU countries, Germany, Spain, the Netherlands, France, Poland, Italy, and Denmark imported more than USD 500 million worth of Bangladeshi garments. Except for Spain and Italy, exports to all these countries grew by over 10 per cent.

Germany remained the top European market during the period, importing USD 2.47 billion worth of garments. The figure is 14 per cent higher than its imports in the previous year's same period.

Meanwhile, exports to Spain reached USD 1.7 billion, France USD 1.09 billion, the Netherlands USD 1.06 billion, Poland USD 790 million, Italy USD 770 million, and Denmark USD 560 million. Among them, Poland saw the highest growth rate at 28 per cent, while Spain recorded the lowest at just under 3 per cent.

The US continued to be the largest market for Bangladesh as it accounted for 19-20 per cent of total RMG exports. The US imported RMG products worth USD 3.84 billion in the first half of the current fiscal year, which is 17.55 per cent higher than the previous year’s corresponding period.

Apparel exporters are seeing increased export opportunities in the US market as president Donald Trump imposed tariffs on imports from Canada, Mexico and China.

According to them, an additional 10 per cent tariff has been placed on Chinese products, which is expected to prompt US buyers to shift their purchase orders away from China, and create opportunities for the Bangladesh exporters to receive more orders.

Multiple traders told Prothom Alo that many US buyers had already started placing additional purchase orders even before the tariffs were imposed. The buyers are engaging in negotiations with factories and visiting Bangladesh to explore sourcing options.

Beyond the European Union and the United States, exports to the UK reached $2.16 billion in the first half of the current fiscal year, marking a 6.70 per cent rise compared to the same period last year. Exports to Canada totaled $640 million in the first half of the fiscal year, which is up by 14 per cent from the previous year’s corresponding period.

Bangladesh is also performing well in emerging markets as it exported $3.37 billion worth of RMG products to these markets in the first half, compared to $3.13 billion in the same period last year.

Among the new markets, Japan was the largest importer of Bangladeshi RMG products during the July–December period, with imports totaling $600 million. Exports to the Asian country rose by 5.7 per cent compared to the same period in the previous year.

Besides, exports to Australia reached $430 million, India $370 million, Korea $230 million, and Turkey $220 million. Growth rate was 7.5 per cent for exports to Australia, while 18 per cent for India, 2.84 percent for Korea, and 43 per cent for Turkey.

Mohammad Hatem, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told Prothom Alo that despite a rise in purchase orders, the key challenge is now the low price. Workers’ wages and other costs went up, but foreign buyers are offering lower prices than before. Hence, many purchase orders are not being accepted.

In response to another query, the BKMEA president said the textile mills are struggling to operate due to gas and electricity shortages. Hence, many RMG industry owners are importing yarn from India, which is eventually weakening the local textile mills.

He cited challenges over banking activities and law and order situations and feared that the positive trend in exports might not be retained had these internal issues not been addressed quickly.​

 

[Saif]

Bangladesh to surpass China in cotton imports

If this happens, Bangladesh will once again become the world’s top cotton importer, the position the country held multiple times before and after the pandemic.

en.prothomalo.com

Bangladesh to surpass China in cotton imports
The USDA’s October report had projected that global cotton imports for the 2024-25 trading year would reach 42.4 million bales, with China, Vietnam, Bangladesh, and Pakistan accounting for 65 per cent of the total

Shuvonkar Karmokar
Dhaka
Updated: 20 Feb 2025, 15: 01

Flags of Bangladesh and China

The US Department of Agriculture (USDA) has predicted that Bangladesh will surpass China in cotton imports—the primary raw material for the ready-made garment and textile sector—during the current 2024-25 trading year (August–July).

If this happens, Bangladesh will once again become the world's top cotton importer. The country has held this position multiple times before and after the COVID-19 pandemic.

According to a USDA report published last week, Bangladesh’s cotton imports are expected to reach 8 million bales by the end of the 2024-25 trading year, which began last August.

The agency previously predicted in October that imports would be 7.8 million bales, but it has now revised its estimate upwards. The increase in cotton imports is primarily driven by a rise in purchase orders for ready-made garments.

In the 2023-24 trading year, Bangladesh imported over 7.5 million bales of cotton. Notably, one bale is equivalent to 480 pounds or 218 kilogrammes.

Despite the USDA's forecast, textile mill owners in Bangladesh point out that most mills are not operating at full capacity due to the ongoing gas crisis, which has raised production costs.

Additionally, incentives for the sector were reduced last year. As a result, domestic yarn producers are struggling to compete with Indian yarn, leading to an increase in yarn imports from India.

The report estimated that China would import 8 million bales, Vietnam 7.1 million, Bangladesh 7.8 million, and Pakistan 4.8 million.

The USDA’s October report had projected that global cotton imports for the 2024-25 trading year would reach 42.4 million bales, with China, Vietnam, Bangladesh, and Pakistan accounting for 65 per cent of the total. The report estimated that China would import 8 million bales, Vietnam 7.1 million, Bangladesh 7.8 million, and Pakistan 4.8 million.

However, in its updated February report, the USDA revised its forecasts, stating that China’s cotton imports could decrease by 700,000 bales from the previous estimate.

Meanwhile, Vietnam, Bangladesh, and Pakistan are each expected to import more cotton—by 300,000, 200,000, and 200,000 bales, respectively. As a result, China’s total imports may fall to 7.3 million bales, while Vietnam’s and Pakistan’s imports could rise to 7.4 million and 5 million bales, respectively.

When asked about the USDA’s forecast, Bangladesh Textile Mill Owners Association (BTMOA) Director Khorshed Alam told Prothom Alo that while the prediction is theoretically correct, the reality is different. The estimate is based on the production capacity of factories, but in reality, 40-50 per cent of this capacity remains unused due to the ongoing gas crisis. As a result, the actual cotton imports will likely be lower than projected. Moreover, a significant portion of the imported cotton will come from India in the form of yarn.

Citing his own experience, Khorshed Alam said, “My two spinning mills always maintain a three-month stock of cotton. Since we are currently utilising only 50-55 per cent of our production capacity, we have not imported any cotton in the last four months.”

According to the USDA, Bangladesh imported 8.4 million bales of cotton in the 2021-22 trading year to meet the demand of its primary export sector. During the same period, China imported 12.7 million bales. However, China's imports declined significantly in the following year. In the 2023-24 trading year, China made a comeback, importing 14.9 million bales of cotton. This year, however, their imports have once again decreased sharply.

According to the National Board of Revenue (NBR), Bangladesh’s textile sector traders imported 1.889 million tons of cotton last year—an increase of 39 per cent compared to the previous year—at a cost of 453.74 billion taka. Additionally, 1.2 million tons of yarn were imported, amounting to 457.13 billion.

The Bangladesh Textile Mills Association (BTMA) reports that the country has 519 spinning mills, though some remain closed. These mills supply 85-90 per cent of knit fabric and around 40 per cent of the yarn used in woven fabrics.

Speaking at a program on Tuesday, BTMA President Shawkat Aziz Rasel stated that Bangladesh is self-sufficient in yarn production. However, due to the ongoing gas crisis, only half of the textile mills are operational, while the rest are either running at reduced capacity or have shut down entirely. Meanwhile, export-oriented readymade garment factories have strong purchase orders for the next three to four months, but local textile mills are struggling to supply the necessary yarn due to the energy crisis.​