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[🇧🇩] Textile & RMG Industry of Bangladesh
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Home textile exports stage comeback
Saddam Hossain 05 July, 2025, 22:18

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The export of home textile products has witnessed a comeback in the financial year 2024-25 after consecutive negative growth of two FYs, mainly thanks to improved purchase order situation.

According to Export Promotion Bureau data, in FY25, the country earned $871.57 million, representing a narrow positive growth of 2.42 per cent from $851.01 million in FY24.

The home textile sector was regarded as a key emerging player in the country’s export basket.

As export earner, the sector touched the milestone of $1 billion for the first time in FY21 after the readymade garment, jute, and leather.

In that year, the sector earned $1.13 billion, and crossed the billion club for the next FYs too, bagging $1.62 billion in FY22 and $1.09 billion in FY23.

However, due to an abnormal hike in gas prices, supply interruptions, and the Ukraine-Russia war, the sector’s earnings began to fall since FY23.

Following two consecutive years of negative growth, the home textile industry experienced positive growth in FY25.

Since November 2024, export earnings from home textiles have bounced back, sustaining this growth throughout FY25. However, the sector again faced negative growth in June 2025, the last month of FY25.

According to the EPB data, in FY25, bed, kitchen, and toilet lines generated $409.71 million, tents earned $226 million, rags and scrap twine earned $97.96 million, and the remaining $138 million came from other segments of the home textiles industry.

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

Shahjada Rubel, head of business at Momtex, told New Age that exports experienced positive growth, and the factories received a substantial number of purchase orders over the years.New Age merchandise

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

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

Rashed Mosharraf, executive director (sales, marketing, and operations) of Zaber and Zubair Fashion Ltd, one of the country›s most prominent players in the home textile sector, told New Age that a significant number of irregular orders were cleared last year, which impacted the exports.

‘The sector did well despite the political transition, severe fuel and energy shortage, and country’s overall discipline situation,’ he added.

Meanwhile, he stated that the newly imposed 2 per cent advance income tax on cotton imports would severely impact the sector.

‘If the government could provide sufficient policy supports, uninterrupted gas and electricity supply, the sector could again able to earn $1 billion, otherwise we may lose our competitiveness to Pakistan,’ he added.

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

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

Lotus silk: the fabric of the future
Bangladesh’s wetland wonder weaves a new path for sustainable fashion

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Imagine if the next global fashion sensation did not emerge from Paris or Milan but quietly bloomed in a lotus pond in the wetlands of Bangladesh.

It may sound unlikely, but Bangladesh has achieved something extraordinary -- it has produced a new kind of textile called lotus silk. Soft, glossy, and eco-friendly, the fabric is made from the stems of pink lotus flowers that grow in water.

In an era of climate urgency and demand for sustainable alternatives, Bangladesh's innovation -- a rare, biodegradable, and luxurious textile crafted from the pink lotus (Nelumbo nucifera) -- could mark a turning point.

To showcase its potential, a special six-yard-long scarf has already been produced from this lotus yarn. The scarf is currently kept at the office of the Bangladesh National Commission for Unesco in the capital, standing as a symbol of what Bangladesh's wetlands and homegrown ingenuity can offer the world.

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To demonstrate its potential, a six-yard scarf has already been made from lotus yarn.

Researchers and experts said for the first time, this special fabric is being made in the country and it could help Bangladesh emerge as a leader in smart and green fashion.

The breakthrough came through a research project titled "Study of Diversity and Conservation of Lotus from Bangladesh," initiated in 2021 by Bengal Plants Research and Development (BPRD), with funding from the Bangladesh National Commission for Unesco.

"This is not just a scientific innovation; it is a cultural renaissance in Bangladesh," said Sikdar Abul Kashem Shamsuddin, chairman of BPRD and lead researcher of the project. "For generations, the lotus has been part of our heritage. Now it is also a part of our sustainable future."


Rakhal Hari Sarker, a supernumerary professor at the Department of Botany at Dhaka University, is the consultant for the project titled "Diversity, Uses, and Conservation of Lotus."

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In Faridpur’s Ronkail village, women are being trained to extract lotus threads. PHOTO: COURTESY

He said the lotus petiole has an incredible natural fine filament that can be transformed into high-value fibre with minimal intervention. "It's organic, it's durable and, above all, it's ours," he said.

Researchers said the lotus flower has always been seen as a symbol of purity, but now it is offering something more -- a clean, green solution to one of the world's one of the most polluting industries: textiles.

Lotus fibre cloth may seem like a new idea to many, but people in countries like Thailand, Cambodia, Myanmar, and Vietnam have long made this soft and strong cloth. Buddhist monks in Cambodia and Myanmar wore lotus fibre clothes as a symbol of peace and purity.

The first lotus cloth was reportedly made in Myanmar by Daw Sa Oo. She picked a lotus flower from Inle Lake and noticed threads coming out of its stem, which gave her the idea to weave them into cloth. She later gifted the first lotus robe to a monk.

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Inside the stem are sticky threads that, once exposed to air, turn into fine filaments.

Now, lotus fabric has become a growing business that helps rural women earn money while protecting nature.

The transformation from flower to fabric is a careful and eco-friendly process. Lotus petioles (stems) are harvested from wetlands across Bangladesh without uprooting the plant, allowing it to regenerate quickly. Inside the stem are natural sticky threads that, when exposed to air, turn into fine filaments. These are gently hand-rolled, dried, and spun into thread using traditional spinning wheels, often made from bicycle parts.

No chemicals, no fossil fuels, and no pollutants are involved in the process. Even the leftover plant matter is reused as compost or cattle feed. Each metre of lotus silk requires thread from 40,000 stems. A full garment may need up to 120,000 stems. Extracting enough lotus silk for one scarf can take up to two months, and the final product can cost ten times as much as regular silk.

In the village of Ronkail in Faridpur, rural women are now being trained to extract lotus threads, providing income and dignity. "Women who never thought they would be part of a global luxury industry are now expert artisans," said Shamsuddin.

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Lotus stems are harvested from wetlands without uprooting the plant.

The process of making lotus silk requires meticulous handwork and craftsmanship rooted in Bangladesh's rich textile heritage. As demand grows, it could create sustainable jobs in wetland areas while preserving biodiversity by protecting lotus-filled wetlands from farming or industrial use.

Uttam Rajbangshi, a supervisor from Ronkail village, said that from July to December, lotus grows in wetlands, and during this time, 16 people, mostly women, make yarn from the stems while four others collect the lotus. The yarn is then sent to the Bangladesh Handloom Board, where it is processed to make cloth and other useful products.

Bangladesh's wetlands, like beels, haors, and rivers, are rich in plant and animal life, but they are under threat due to rapid urban growth. "Bangladesh's beels, haors, and rivers are not just water bodies -- they're biodiversity hubs," said Prof Sarker. "Lotus cultivation can actually help preserve these ecosystems while creating jobs."

The process of turning lotus stems into cloth is eco-friendly. It uses no water, fuel, or harmful chemicals, making it a zero-emission and chemical-free method, said researchers. Even the extra plant parts do not go to waste -- they can be used as natural fertiliser or food for cows, making it part of a circular economy where nothing is wasted.

"Each time we harvest, the plant regenerates stronger," said Prof Sarker. "This is a model of how industry and ecology can work in harmony."

Lotus silk is quickly becoming one of the most sought-after eco-friendly fabrics in the world. Fashion houses in Italy, like Loro Piana, have already introduced jackets made from lotus silk that cost over $5,000. In India, a company called Hero Fashion has created a special white shirt made from lotus fibre, which resists stains and is kind to nature.

In Cambodia, Samatoa Lotus Textiles, a women-led business that won a Unesco award, has turned lotus fibre into a top choice in global fashion. These examples show that Bangladesh could also become a leader in lotus silk if the right steps are taken.

Prof Rakhal Hari Sarker said, "We have the land, the workers, and now the knowledge. If we invest in better research, training, and natural dyeing techniques, we can take lotus silk to the world."

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Threads are gently hand-rolled, dried, and spun into thread using spinning wheels.

The price of lotus silk is high, ranging from $2,500 to $4,000 per kilogramme. But with many wetlands full of lotus and skilled hands ready to work, Bangladesh has what it takes to enter the global market. Still, more needs to be done. Bangladesh must build strong systems for research, green production methods, and international promotion to attract fashion brands looking for sustainable materials, said experts.

Researchers said lotus silk is made from a special natural material called cellulose found inside the stems, and the amount depends on the depth of the water. Prof Sarker said research can be carried out to improve the quality and quantity of cellulose in lotus petioles. Techniques of modern plant breeding, such as tissue culture and plant biotechnology, can be applied to increase fibre production.

The entire process used in muslin production has also been applied to lotus fibre. Officials from the Bangladesh Handloom Board and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have underscored its high potential.

Ayub Ali, chief of planning and implementation at the Bangladesh Handloom Board, said, "The yarn obtained from lotus plants is extremely fine and strong -- arguably even better than silk. One of the biggest advantages is that you can extract thread from a lotus plant up to four times a month without harming it."

"You don't even need the flowers; the yarn can be extracted just from the petioles," he added. "This is a completely natural fibre and there is tremendous potential for it in Bangladesh."

Mahmud Hasan Khan, president of the BGMEA, said, "Bangladesh has an abundance of canals and wetlands, so this can be done without major investment. At present, all materials are imported from abroad. If we can source the raw materials locally, that would be fantastic."

He said Bangladesh holds strong potential to advance even further in the global ready-made garment sector.​
 

Spinners demand withdrawal of 2% AIT on cotton import within a week

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Textile millers have demanded the withdrawal of the 2 percent advance income tax (AIT) on cotton imports within a week, warning of possible factory closures otherwise.

Speaking at a press conference organised by the Bangladesh Textile Mills Association (BTMA) at the Gulshan Club in Dhaka today, they pointed out that the tax was imposed in the budget proposal without consultation with the millers.

"The government should not do business everywhere, as the income of the government will in fact fall if the sector cannot perform well. At the end of the day, the impact of this 2 percent AIT is massive in business," BTMA President Showkat Aziz Russell said on the occasion.

Hossain Mehmood, chairman of the Bangladesh Terry Towel and Linen Manufacturers and Exporters Association, warned that the 2 percent AIT will increase costs by an additional 7 to 8 percent in the business and push the profit margin further down.

Amal Podder, vice-president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), criticised the move, saying the government should have taken such a decision in consultation with industry leaders.

Restrictive policies hinder growth

The call for withdrawal of the AIT comes as the primary textile sector, with an investment value of $23 billion, is facing multifaceted challenges, including increasing reliance on yarn imports from India, low gas pressure, high bank interest rates, declining working capital due to the exchange rate, and the looming US tariffs.

Md Badsha Mia, managing director of Badsha Textiles Ltd, said the government reduced the incentive to only 1.2 percent from 25 percent, hiked the gas price to Tk 32 per unit from Tk 4 per unit, raised the bank interest rate to 15 percent from single digits, and fixed the source tax at 1 percent—for which the sector is now in trouble.

Millers also noted that they suffered huge losses due to a 36 percent devaluation of the taka against the US dollar over the last three years.

Just before the beginning of the Russia-Ukraine war in February 2022, the exchange rate between the taka and the dollar was Tk 85. But the rate gradually reached Tk 122 per US dollar, causing many millers, traders, and importers to lose a massive amount of working capital, and they are now suffering from a capital shortage.

While the Bangladesh government is moving towards more restrictive policies, the Indian government has been giving many incentives to the spinning, weaving, garment, and textile sectors, giving huge advantages to Indian millers in the competition, the millers also pointed out.

For instance, they said Indian millers can sell a kilogram of yarn at Tk 15 less than Bangladeshi millers due to the incentives introduced by the Indian government. This has led to local garment exporters showing interest in purchasing Indian-origin yarn to make garment items.

"When neighbouring countries have been giving a lot of incentives in the name of different developments for the sector, the Bangladesh government is reducing the incentive rate alarmingly, for which many units are about to be closed down," said BTMA Vice-president Md Saleudh Zaman Khan.

He alleged that such restrictive policies will end up destroying the Bangladeshi primary textile sector. "I am tired of talking about all these problems."

BTMA Director Razeeb Haider also echoed a similar sentiment. "Because of faulty policies, a massive amount of yarn comes from India now. The government should immediately reverse the decision to impose 2 percent AIT."

Another BTMA Director, Md Khorshed Alam, said that of the total $23 billion investment in the sector, $18 billion is the banking sector's money.

He called on the government to check the 18 percent pilferage of gas to increase supply to industrial units.

The millers, however, acknowledged that government intervention has recently increased gas supply to the industry.​
 

Textile mills push for withdrawal of AIT on cotton imports

FE REPORT
Published :
Jul 06, 2025 08:28
Updated :
Jul 06, 2025 08:28

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Leaders of the country's primary textile mills demanded immediate withdrawal of recently imposed 2.0 per cent advanced income tax (AIT) on cotton imports to avert factory closures.

They also urged the interim government to maintain the 15 per cent corporate tax until 2028 and exempt the specific tax of Tk 5 per kg at the production stage on cotton yarn, synthetic and other types of fibers.

Bangladesh Textile Mills Association (BTMA) leaders placed the demands at an emergency press conference held at Gulshan Club in the city on Saturday.

BTMA President Showkat Aziz Russell, who has both textile and fabric mills, said the additional costs will force him to import yarn from India instead of sourcing from his own mill.

"Textile industry is at risk and no mills can survive under such a policy," he said, urging the government to immediately reconsider and reverse the tax and VAT decisions.

"If not, the consequences will be irreparable," he warned, posing question as to whether the government is taking such policy to protect the interest of neighbouring country.

The new tax, coupled with additional VAT burdens, wage hikes and reduced export incentives, comes at a time when mills are passing through a critical time amid a severe gas and electricity crisis, BTMA vice president Saleudh Zaman said.

"If the government does not reverse this decision by Monday (July 07), it will backfire and cotton would remain stuck at Chattogram port," he warned.

The tax, applicable on the import of raw materials such as cotton and man-made fibres, is technically adjustable, he said, adding that in reality, there is no incident of getting back the money once it enters the government's account.

Factory will be closed down due to liquidity crisis, he said, alleging that such measures have taken to cripple the spinning mills.

Echoing the same concern, BTMA director Abdullah Al Mamun said, "Neighbouring countries are offering their industries incentives while Bangladesh is putting pressure on its industries."

He said about 90 per cent of mill owners are looking to sell their factories in the present scenario.

Hossain Mehmood, chairman of Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA), said 90 per cent of their members use local yarn and that the impacts of AIT and the rise in corporate tax would be severe.

He expressed doubts about whether cotton imports could be increased under the new US tariff regimes while the 2.0 percent AIT remains in place.

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) vice president Amal Podder and Bangladesh Cotton Association adviser Mohammad Ayub also spoke.​
 

BTMA seeks Withdrawal of 2pc advance income tax
Staff Correspondent 08 July, 2025, 00:54

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Leaders of the Bangladesh Textile Mills Association on Monday at a meeting urged finance adviser Salehuddin Ahmed to withdraw 2 per cent advance income tax for the import of cotton.

Led by BTMA president Showkat Aziz Russel told the finance adviser that imposition of the tax by the National Board of Revenue in the current financial year of 2025–26 was not equitable.Bangladesh-themed souvenirs

The finance ministry was expected to review the decision in the 24 hours, said the BTMA president, while talking to reporters after the meeting at the secretariat.

The finance adviser did not make any comment about the meeting held on the 7th day of the new FY26.

NBR chairman Abdur Rahman Khan was present at the meeting.

Officials attending the meeting said that the businesses were asked to maintain the new rate as it was not imposed only for the import of cotton.

The NBR has imposed 2 per cent of advance income tax on imports of over 150 essentials and capital goods for industries, including wheat, flour, maize, rice, soya beans, sunflower seeds, mustard seeds, linseed, sugar, bulbs, tubers, jet fuels, kerosene, diesel, furnace oil, LPG, natural gas, petroleum bitumen, iron oxides and zinc sulphate.

During the meeting, the NBR chairman assured the BTMA leaders of meeting other demands linked to value added tax, said the officials.

The day’s meeting was arranged within 48 hours after the BTMA held a special press conference at the Gulshan Club on Saturday to press home their demands, including withdrawal of 2 per cent advance income tax on cotton import.

BTMA leaders also demanded exemption from a specific tax of Tk 5 imposed per kilogram of domestic production of cotton yarn. They also told the authorities to reconsider the corporate tax decisions.

The textile millers have already questioned whether the move was designed to protect the interests of neighbouring countries at the expense of Bangladesh’s textile industry.Bangladesh-themed souvenirs

The BTMA in its annual report for 2024said that investment in the primary textile sector was around $23 billion and the sector contributed around 13 per cent in the country’s Gross Domestic Product.

According to the annual report, around 100 per cent yarn demand for knit readymade garments and 55–60 per cent yarn demand for woven readymade garments are met by the country’s primary textile that employs around 1.6 million workers, 60 per cent of which are women.​
 

Apparel market grows to $557.50 billion
Bangladesh retains second largest RMG exporter ranking amid modest growth


Jasim Uddin
Published :
Jul 08, 2025 11:31
Updated :
Jul 08, 2025 11:31

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The global apparel market expanded to $557.50 billion in 2024, reflecting a 7.08 per cent year-on-year growth from $520.62 billion, according to the latest data released by the World Trade Organization (WTO). This rebound signals a continued recovery in global demand despite ongoing geopolitical tensions, rising production costs, and lingering post-pandemic challenges.

China holds the lead, Bangladesh remains in the second place

China retained its position as the world’s leading apparel exporter, registering $165.24 billion in exports—up slightly by 0.30 per cent. Bangladesh held firmly to the second spot with export earnings of $38.48 billion, though its growth remained modest at 0.21 per cent.

Vietnam strengthened its position as a formidable competitor in the global apparel landscape. It posted the highest growth among the top exporters at 9.34 per cent, reaching $33.94 billion in apparel exports.

Other major exporters show mixed trends

Turkey reported exports worth $17.91 billion, while India stood at $16.36 billion. Cambodia, Pakistan, Indonesia, and the United States recorded apparel exports of $9.89 billion, $9.28 billion, $8.73 billion, and $7.00 billion, respectively.

Export growth across these countries varied significantly, ranging from a sharp 24.19 per cent rise to a contraction of 4.42 per cent, underlining the shifting dynamics of global sourcing, reshoring trends, and trade policy uncertainties.

Market share by the country

China accounted for the largest share of global apparel exports at 29.64 per cent, followed by Bangladesh with a 6.90 per cent share.

However, china has 31.64 per cent and Bangladesh holds 7.38 per cent shares in 2023.

Vietnam increased to 6.09 per cent from 5.96 per cent, while Turkey and India held 3.21 per cent and 2.94 per cent shares respectively.

Among other top exporters countries- Cambodia held 1.77 per cent share, Pakistan (1.66 per cent), Indonesia (1.57 per cent), and the USA (1.26 per cent) rounded out the top contributors.

Bangladesh’s challenges and opportunities

Commenting on the data, Mohiuddin Rubel, Former Director of BGMEA and Managing Director of Bangladesh Apparel Exchange, said, “While Bangladesh remains the second-largest apparel exporter globally, the negligible growth in 2024 signals the need for strategic reforms and diversification. Our competitiveness is being tested not only by Vietnam’s dynamic growth but also by the evolving demands of buyers and heightened sustainability expectations.”

He said that Bangladesh must invest in innovation, technology, upskilling, and climate resilience to retain its competitive edge in a rapidly transforming global supply chain.

Despite global headwinds, the apparel trade is showing resilience. However, rising inflation in key markets, shifting sourcing preferences, and regulatory compliance, particularly in sustainability and due diligence, are likely to shape the next phase of industry transformation, he added.

For Bangladesh, maintaining its foothold in traditional markets while exploring opportunities in non-traditional destinations such as Japan, South Korea, Australia, and the Gulf region will be crucial for sustaining growth in the coming years.​
 

Army reaffirms maintaining law and order at garment sector

UNB Dhaka
Published: 08 Jul 2025, 21: 12

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Army reaffirms maintaining law and order at garment sector UNB

Bangladesh Army has underscored its commitment to maintaining proper law and order in industrial areas to ensure the continued production of the garment industry since it's the lifelines of the economy.

GOC of the 9th Infantry Division Major General Md. Moin Khan said this during a view exchange meeting on Tuesday between the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Board and the General Officer Commanding (GOC) of the 9th Infantry Division and Area Commander, Savar Area, of the Bangladesh Army.

The discussion at BGMEA Complex in Uttara focused on the security of garment factories, particularly issues related to law and order.

BGMEA President Mahmud Hasan Khan led the BGMEA delegation, while Major General Md Moin Khan of the 9th Infantry Division, led the army's representation.

The GOC further stated that they are considering implementing a new method to solve the jhoot (fabric scraps) problem in the garment sector, suggesting that establishing an auction house for jhut could alleviate this issue for factories.

He expressed hope that entrepreneurs would provide accurate information to assist the army in maintaining stable law and order in the industrial sector.

He also urged BGMEA to encourage entrepreneurs to ensure timely payment of wages and benefits.

Maj Gen Khan reassured business owners that the Bangladesh Army stands with the industry in any unforeseen external incidents that could harm factories.

BGMEA President Hasan praised the Bangladesh Army for its patience and prudence in standing by the people during the critical post-student uprising period, and for their involvement in national reconstruction and economic recovery.

He specifically highlighted the army-led joint forces' cooperation in ensuring industrial security, which enabled the garment industry to survive a catastrophic situation. On behalf of the garment industry, he extended sincere gratitude and thanks to the Bangladesh Army for their continued support.

Among those present at the meeting were BGMEA Senior Vice President Enamul Haq Khan (Bablu), Vice President Md. Rezwan Selim, Vice President (Finance) Mizanur Rahman, Vice President Md. Shihab Uddoja Chowdhury, and several directors.

Also in attendance were the Commander of the 81st Infantry Brigade, Bangladesh Army, Commander of the 9th Artillery Brigade, Md. Abul Kalam Siddique, DIG (Operation & Crime), Industrial Police; Md. Israel Howlader, DIG (Administration & Crime), Industrial Police; and representatives from DGFI and NSI. Various chairmen and managing directors of garment factories also participated in the discussion.

The meeting also discussed the possibility of forming a confederation of various labor federations.

Entrepreneurs at the meeting stated that the industry is being held hostage by "jhoot terrorism" (terrorism related to leftover fabric scraps).

They explained that terrorist groups dominating the jhoot sector are forming juvenile gangs, creating an unstable environment in industrial areas, and harassing both factory owners and workers.

Garment entrepreneurs sought the army's cooperation in resolving these issues.​
 

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