[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Garment export to EU slightly up in July-April

Garment export to the European Union (EU) in the July-April period of the current fiscal year grew by 3.66 percent from that in the corresponding period of last fiscal year to reach $19.90 billion.

www.thedailystar.net

Garment export to EU slightly up in July-April

Garment export to the European Union (EU) in the July-April period of the current fiscal year grew by 3.66 percent from that in the corresponding period of last fiscal year to reach $19.90 billion.

Among the EU member countries, garment export to Denmark grew by the highest margin of 32 percent, according to data from the Export Promotion Bureau compiled by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Meanwhile, garment export to Poland grew by 20.65 percent followed by 17.51 percent to the Netherlands, 6.07 percent to Spain and 3.42 percent to France.

However, apparel export to Italy declined by 2.45 percent, as per the country-wise garment export data compiled by the BGMEA.

Moreover, garment export to Germany, the largest export market in the EU, amounted to $5.01 billion.

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[Saif]

Intertek launches iCare in Bangladesh to support textile industry

Intertek has launched iCare, an innovative digital platform, in Bangladesh to support the local textile industry by offering a seamless and pioneering solution for managing testing processes from start to finish. The company--Intertek, an assurance inspection, product testing and certification com

thefinancialexpress.com.bd

Intertek launches iCare in Bangladesh to support textile industry

Intertek has launched iCare, an innovative digital platform, in Bangladesh to support the local textile industry by offering a seamless and pioneering solution for managing testing processes from start to finish.

The company--Intertek, an assurance inspection, product testing and certification company, launched the new platform in Bangladesh on Monday at an event in the capital city following its successful introduction in Türkiye last November and India in March, according to a statement.

Driven by increasing regulatory scrutiny and heightened consumer expectations, there is growing demand among customers for bespoke, end-to-end solutions that can improve transparency and traceability around the processing and testing of lab samples.

iCare is a one-stop science-based Customer Excellence portal that is designed to address these challenges, providing clients with a pioneering, industry-leading solution that will allow them to seamlessly manage and monitor their testing processes from start to finish, added the statement.

iCare would enable customers around the world to submit test requests, view reports and analytics online and connect with in-house teams of experts in just a few clicks, allowing greater transparency for customers regarding their samples and the testing process, it added.

Sandeep Das, President of Global Softlines and Hardlines and Regional Managing Director South Asia at Intertek, said, "iCare's industry-leading capabilities are not only a response to current customer demand but also a testament to Intertek Softlines' commitment to pioneering innovation."

By harnessing advanced technologies and redefining the benchmark for transparency and traceability, iCare sets a new standard for the ATIC industry and solidifies Intertek Softlines' position as an industry leader for customer excellence in the field of quality assurance and testing services, he added.

Neyamul Hasan, Country Managing Director, Intertek Bangladesh and Shelly Lo, Senior Director of Marketing and Innovation for Global Softlines and Hardlines at Intertek, among others, were also present.​

 

[Saif]

Manmade Fibre: Bangladesh’s best bet to become top apparel exporter

Having become the world’s second largest source for apparel items after China, Bangladesh is now pushing for the top spot by adding more value-added products to its export basket.

www.thedailystar.net

Manmade Fibre: Bangladesh's best bet to become top apparel exporter

Photo: Refayet Ullah Mirdha

Having become the world's second largest source for apparel items after China, Bangladesh is now pushing for the top spot by adding more value-added products to its export basket.

Clothes made of manmade fibre (MMF) are playing a particularly vital role in this regard as such highly value-added apparel items have significant demand abroad.

Besides, non-cotton apparel fetches higher prices than cottonwear for being more flexible, durable and functional, with the cost of a T-shirt made from MMF being about double that of one made from cotton.

As such, local garment makers have been diversifying their product base with non-cotton items.

Additionally, they have increased their production capacities, maintained consistency in supply and improved product quality over the past five decades.

Now, about 7.9 percent of all apparel items sold worldwide come from Bangladesh as the country has turned into a reliable source for international clothing retailers and brands.

And with about 29 percent of the country's garment exports comprising MMF products, Bangladesh aims to use this segment to expand its global market share to 12 percent by 2030.

With this in mind, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) aims to increase the country's annual apparel exports to $100 billion within the next six years.

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[Saif]

Buyers shift to Delhi airport as higher expenses make Dhaka unattractive

The tariff at the largest airport in Bangladesh is so high that buyers stay competitive even when their goods travel a distance of nearly 1,900 kilometres in trucks from the country to Delhi via Benapole and Petrapole.

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Buyers shift to Delhi airport as higher expenses make Dhaka unattractive

International clothing retailers and brands sourcing from Bangladesh prefer the Delhi airport to Hazrat Shahjalal International Airport (HSIA) to carry goods owing to the lower tariff offered by India.

The tariff at the largest airport in Bangladesh is so high that buyers stay competitive even when their goods travel a distance of nearly 1,900 kilometres in trucks from the country to Delhi via Benapole and Petrapole.

For example, it costs $3 to transport one kilogramme of garment items from the HSIA to destinations in Europe. The charge is $1.2 if the goods are sent via Delhi's Indira Gandhi International Airport.

An elevated level of tariffs, value-added tax, and ground handling and service charges at the HSIA are mainly driving users away from Dhaka.

At the airport, a 72 percent surcharge is imposed for ground handling. If the fee is not paid on time, a 60 percent fine is levied.

A total of 1,65,000 tonnes of cargoes were shipped from the HSIA In July-March of the current fiscal year, according to data from the civil aviation and tourism ministry. Of the quantity, 1,34,000 tonnes were garment items and 30,000 tonnes were vegetables, fruits and other items.

In 2022-23, some 1,67,000 tonnes of cargoes were sent abroad via the airport. This included 142,000 tonnes of garment products and 24,000 tonnes of fruits, vegetables, and allied food items.

Kazi Wahidul Alam, an aviation expert, said more than 8,000 tonnes of cargoes, especially those containing garment items, were diverted from the HSIA to Delhi last year because of higher tariffs.

"The volume is higher this year as buyers are increasingly finding Delhi airport more competitive for their business," he said, adding that 50 tonnes of cargoes are redirected from the HSIA to Delhi every day on average.

Owing to the higher charges, local airlines, freight forwarders, courier companies, ground handlers, and many other related sectors are losing business.

At least eight private airlines that tried to do business on the domestic routes of Bangladesh could not become competitive because of escalated high tariffs, Alam said.

Kabir Ahmed, president of the Bangladesh Freight Forwarders Association, described the freight charge at the Dhaka airport as extremely high.

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[Saif]

RMG export prices fall by 16% in 8 months: BGMEA

Apparel’s demand decreases among end consumers hit hard by high inflation, it says

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RMG export prices fall by 16% in 8 months: BGMEA
Apparel's demand decreases among end consumers hit hard by high inflation, it says

Export prices of Bangladeshi garment items fell by 8 percent to as high as 16 percent year-on-year in the last eight months thanks to a fall in demand among consumers because of high inflationary pressure.

Not only the prices of apparels shipped from Bangladesh have fallen, but also the export of garments witnessed a falling trend in volume in major markets, according to data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

For instance, apparel import from the US declined by 7 percent and from the European Union it experienced a 13 percent fall in the July-April period of 2023-24 fiscal year, the BGMEA data also said.

Garment export increased by 4.97 percent year-on-year in the 10 months to April this year, down from the 9.09 percent year-on-year growth posted in the same period previous year.

However, the bank interest rate rose by 15 percent and the cost of production by 50 percent in the last five years, BGMEA President SM Mannan Kochi said at a meeting with the reporters of different print, televisions and online media outlets at Pan Pacific Sonargaon in Dhaka today.

The cost of production has increased because of price hikes of gas, power and wages of the workers, he said.

Kochi also said the government's decision of not allowing making investment outside of the export processing zones (EPZs) and the special economic zones (SEZs) will have a negative impact on the inflow of investment in the country.


He urged the government for reviewing the decision and giving go-ahead to making investment and setting up factories outside of the SEZs and EPZs so new investments come and new factories are set up.​

 

[Saif]

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

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

www.newagebd.net

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

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

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

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

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

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

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

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

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

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

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

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[Bilal9]

RMG sees 10% growth in new markets

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

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

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

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

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

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

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

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

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

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

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

 

[Saif]

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

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

 

[Saif]

SBTi debate has major implications for RMG suppliers

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

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SBTi debate has major implications for RMG suppliers

VISUAL: STAR

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

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

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

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

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

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

 

[Saif]

Local spinners losing yarn market to import surge

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

thefinancialexpress.com.bd

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

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

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

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

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

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

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

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

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

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

 

[Saif]

Bangladesh’s garment export growth slows to 2.86pc amid economic challenges

The Export Promotion Bureau (EPB) has released export data for the fiscal year 2023-24, highlighting a slowdown in the growth of Bangladesh’s garment exports. From July to May of the 2023-24 fiscal year, garment exports totaled $43.85 billion, reflecting a growth rate of 2.86 per cent. This

thefinancialexpress.com.bd

Bangladesh's garment export growth slows to 2.86pc amid economic challenges
UNB
Published :
Jun 05, 2024 22:01
Updated :
Jun 05, 2024 22:09

The Export Promotion Bureau (EPB) has released export data for the fiscal year 2023-24, highlighting a slowdown in the growth of Bangladesh's garment exports.

From July to May of the 2023-24 fiscal year, garment exports totaled $43.85 billion, reflecting a growth rate of 2.86 per cent. This is a marked decrease compared to the same period in the previous fiscal year, when exports reached $42.63 billion with a growth rate of 10.67 per cent.

The decline in exports became particularly evident in April and May 2024, significantly affecting the overall growth rate.

"Our garment exports over these 11 months have lagged behind the target by 7.63 per cent," said Mohiuddin Rubel, Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Rubel detailed that knitwear product growth dropped by 20.75 per cent and woven garment exports decreased by 12.48 per cent in May alone. He attributed this decline to several global and domestic economic pressures.

Due to inflation in the global economy and interest rate hikes to control it, consumers' purchasing power has diminished, leading to reduced retail sales and garment imports, Rubel explained. He noted that global garment imports by the United States fell by 7.18 per cent and by Europe by 12.84 per cent during January-March 2024. Additionally, significant price drops per unit of product in key markets, ranging from 8 per cent to 18 per cent, have exacerbated the situation.

Domestic challenges have also played a role. Increased minimum wages, rising costs of electricity, gas, and transportation, and bank interest rates soaring from single digits to 14 per cent-15 per cent, combined with reduced cash assistance, have hampered the industry's competitive edge. "This is somewhat reflected in the export growth," Rubel said.

It is noteworthy that the garment sector has to face continuous new challenges to survive. "On one hand, we are dealing with complexities related to NBR, ports, and banking. On the other hand, the government has decided not to provide gas-electricity connections and bank loans to any new factories outside industrial zones, a decision we have requested to be withdrawn. If implemented, such decisions could further hinder investment and exports," he added.

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[Saif]

Minimum tariff value of cotton fabrics increased

Finance minister Abul Hassan Mahmood Ali on Thursday proposed rationalising at the import level the minimum value of certain products, including cotton and synthetic fabrics, for imposing duty to safeguard the local industry...

www.newagebd.net

Minimum tariff value of cotton fabrics increased
Staff Correspondent 06 June, 2024, 22:10

| Star Mail photo

Finance minister Abul Hassan Mahmood Ali on Thursday proposed rationalising at the import level the minimum value of certain products, including cotton and synthetic fabrics, for imposing duty to safeguard the local industry.

The finance minister in his proposed budget for the financial year 2024-25 suggested increasing the minimum value of cotton fabrics and printed cotton at the import level to $4 a kilogram from exiting $3 a kilogram.

He also proposed increasing the minimum value of synthetic fabrics from $3 a kilogram to $4.50 a kilogram.

Waiving all other duties and taxes, the finance minister also proposed imposing 1 per cent customs duty on purified terephthalic acid and mono-ethylene glycol, the raw materials of polyester (synthetic) staple fibre and pet chips used in the textile industry.

The minister in his budget speech said that it was observed that the total tax incidence on the finished goods was less than its raw materials.

'In order to remove this discrepancy and for the protection of the domestic industry, I propose to impose 1 per cent customs duty on PTA and MEG and waive all other duties and taxes on these two raw materials,' Mahmood said.

The finance minister also proposed waiving all other taxes except customs duty of 5 per cent and advance income tax for importing chiller having capacity of 50 tonnes or more.

Chiller is used as essential capital equipment in various industries and a total duty of 104.68 per cent is applicable to the import of the item, which is not conducive to the related industries, he said.​

 

[Saif]

Textile, garment makers urge govt to reconsider their demands

Textile millers and garment makers in Bangladesh yesterday demanded that the government include some of their recommendations in the new national budget as many of the issues they raised remain unaddressed.

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Textile, garment makers urge govt to reconsider their demands

Textile millers and garment makers in Bangladesh yesterday demanded that the government include some of their recommendations in the new national budget as many of the issues they raised remain unaddressed.

For instance, garment exporters had demanded the reduction of source tax from the existing 1 percent to 0.5 percent for the upcoming fiscal year, which starts on July 1.

They also sought the continuation of cash incentives on export receipts until 2032 as the World Trade Organization (WTO) will allow graduating least-developed countries (LDCs) to enjoy trade benefits as LDCs till then.

As these demands were left unmet in the proposed budget for FY25, the textile millers and garment makers have asked the government to reconsider their recommendations on the grounds that such measures would improve businesses.

SM Mannan Kochi, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said one of the proposed measures in the budget would allow customs officials to levy a 400 percent fine if an exporter is found using inaccurate documentation.

"Such a proposal will only increase the harassment of exporters for simply making a mistaking when filing documents for the export procedure," he added.

Kochi was speaking at a post-budget press conference jointly organised by the BGMEA, Bangladesh Textile Mills Association (BTMA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) at the BGMEA office in Dhaka.

The BGMEA president also demanded food rationing for garment workers as persistently higher inflation has increased essential commodity prices in domestic markets.

He also suggested the government introduce a special scheme for both saving and fostering the growth of small and medium enterprises in the textile and garment sectors.

BKMEA Executive President Mohammad Hatem said although the government takes advanced income tax, the amount charged is often not returned as per the rules.

Besides, many textile and garment factories are facing serious difficulties due to a severe gas crisis.

BTMA President Mohammad Ali Khokon said there is an opportunity to bolster earnings from the 15 million kilogrammes of garment waste generated across the country each year as many global buyers want apparel made from recycled materials.

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

 

[Saif]

Go for recycled garments to boost exports

Bangladesh should soon go for producing recycled garment products that meet global environmental safety standards to increase its exports to the European Union (EU), according to speakers at an event.

www.thedailystar.net

Go for recycled garments to boost exports
Experts say at BUILD discussion

Bangladesh should soon go for producing recycled garment products that meet global environmental safety standards to increase its exports to the European Union (EU), according to speakers at an event.

Changes in trade patterns often bring major shifts to a country's economic structure, technological advancement, government policies and emerging trade theories or agreements, they said.

However, Bangladesh needs to take adequate preparation to this end, they added.

These comments came at a discussion on the impact of EU circular textiles policies on its trading partners, organised by the Business Initiative Leading Development (BUILD) at its office in Dhaka.

The recently introduced EU Strategy for Sustainable and Circular Textiles emphasises transparency, sustainability and circularity across the textile value chain, impacting both the EU and non-EU consumers and companies.

The EU is an important destination for garment and textile exports from Bangladesh.

In fiscal 2022-23, apparel exports from Bangladesh to the EU amounted to $28.6 billion. In fiscal 2023-24, the amount was $25.44 billion, indicating a year-on-year decline of about 6.07 percent.

The EU and UK account for more than 60 percent of Bangladesh's garment exports while apparel products constitute more than 93 percent of the total shipments.

Ferdaus Ara Begum, chief executive officer of BUILD, said Bangladesh needs to devise new strategies and projections for textile exports to the EU. This includes identifying potential growth areas as well as challenges for market entry.

She said Bangladesh also needs to analyse the policy shifts and chart out a detailed scenario to support its textile and garment industries to adapt to the EU's sustainable and circular strategy.

"We need to assess the landscape of the sector before we provide feedback on potential impacts and necessary adaptations," ‍said Patrick Schroeder, senior research fellow of the environment and society programme at The Royal Institute of International Affairs, a British think-tank.

"And we need to figure out strategies for enhancing collaboration between EU and Bangladesh stakeholders to promote a sustainable and circular global textiles sector," he added.

Producer countries like Bangladesh have existing circular practices and entrepreneurship, often in the informal sector having market structures, micro enterprises and trade for pre-consumer textiles (garment waste or Jhut).

"So, the EU should take a proactive, supportive, and collaborative approach with stakeholders to formalise the Jhut sector while preserving livelihoods," he said.

The garments sector in Bangladesh is already facing a crisis given the tight margins and slowdown in global demand. However, local entrepreneurs in the sector would finance the required investment for the developing a circular economy, said Asif Ibrahim, chairman of Chittagong Stock Exchange PLC.

Saleudh Zaman Khan, vice-president of the Bangladesh Textile Mills Association, said producers need to consider developing a supply chain for cotton recycling and form local regulations for recycling.

Chowdhury Liakat Ali, director for the sustainable finance department of Bangladesh Bank, said they have taken various policy initiatives to promote sustainable finance and green banking to reduce greenhouse gas emissions and speed up investments in renewable energy, energy and resource efficiency, the circular economy and eco-projects financing, etc.

He added that the central bank fixes disbursement targets for banks with 15 percent of all loans and investments set for green financing and 20 percent for sustainable financing.​

 

[Saif]

Textile millers seek central bank intervention over unpaid $35 million

Textile millers have sought the central bank's intervention to secure payments for raw materials supplied to apparel exporters under back-to-back letters of credit (LCs) opened by commercial banks. Bangladesh Textile Mills Association (BTMA) said the banks are withholding over $35 million owed to

thefinancialexpress.com.bd

Textile millers seek central bank intervention over unpaid $35 million
Published :
Jun 13, 2024 20:48
Updated :
Jun 13, 2024 20:48

Textile millers have sought the central bank's intervention to secure payments for raw materials supplied to apparel exporters under back-to-back letters of credit (LCs) opened by commercial banks.

Bangladesh Textile Mills Association (BTMA) said the banks are withholding over $35 million owed to some 52 textile mills despite having issued maturity dates.

The BTMA, in a letter to the Bangladesh Bank (BB) on Thursday, said that after submitting buyers' acceptance and other related documents, including negotiating papers, the LC-opening banks have yet to make payments.

BTMA President Mohammad Ali Khokon signed the letter addressed to BB Deputy Governor Abdur Rouf Talukder.

"The BTMA member mills -- local fabric and yarn manufacturers -- have been facing severe liquidity crisis due to huge overdue payments, while many have been at risk of facing crisis," the letter read.

According to BTMA data, payments worth $35.86 million for the supply of yarn and fabric from 52 mills remained overdue.​

 

[Saif]

RMG sector's 'green' transition

There can be any discussion that excludes the readymade garments (RMG) sector when it comes to energy transition. It is an established fact that this sector of the economy is representative of around 85 per cent of annual exports from the country and it has developed into a global player as far as

thefinancialexpress.com.bd

RMG sector's 'green' transition
Published :
Jun 19, 2024 21:50
Updated :
Jun 19, 2024 21:50

There can be any discussion that excludes the readymade garments (RMG) sector when it comes to energy transition. It is an established fact that this sector of the economy is representative of around 85 per cent of annual exports from the country and it has developed into a global player as far as apparel market is concerned. Hence, when it comes to battling environmental pollution, carbon footprint, etc., it is natural that interventions must include the sector. Over the last decade, the RMG factories in the country have been undergoing a quiet transformation, starting from becoming the most compliant country in terms of safety measures.

Over time, Bangladesh has also come into the limelight with 220 factories becoming 'green' adhering to LEED (Leadership in Energy and Environmental Design) - a globally recognised green building rating system that emphasizes environmental responsibility and energy efficiency. Reportedly, hundreds more factories are in the pipeline waiting for LEED certification and that points to a greater realisation by RMG owners that foreign consumers wish to wear apparels that are not only ethically sourced, but are made under environmentally-accepted conditions. The problem of course has always been financing. What was witnessed during Covid-19 pandemic was a slew of cancelled orders coupled with the fact that some of the major buyers of Bangladeshi apparels were refusing to pay for shipped goods. This created a lot of problems for RMG sector but those apparently have been ironed out and the sector has moved on. While the sector moved heaven and earth to become compliant on safety issues in the years after the Rana Plaza incident, the current global economic climate will not support the RMG sector to go green at the rate desired by foreign consumers because there simply isn't enough finance to make the impact necessary to make that happen.

In the midst of all this uncertainty, the much-needed (and awaited) green transition of the country's RMG industry has got a boost. What this means is that well-established global brands like H&M Group, Gap Inc, Mango and Bestsellter have committed to the first round of decarbonisation programme in the country. The financing model that has been launched is being headed by the Fashion Pact in partnership with Apparel Impact Institute, Guidehouse, and DBS Bank. This initiative intends to provide a "collective financing model" that will help support deep decarbonisation. Of course, the devil is in the details. Although it is mentioned that that technical and financial incentives will be employed to help more factories to adopt more environmentally-friendly electrification through the use of renewable-energy solutions, it remains to be seen precisely how much cost sharing will be done.

The initiative is a multi-year proposal that hopes to facilitate not only financial incentives but also technical support "to help suppliers identify and implement low-carbon technologies." A lot of promises have been made. While members of the initiative have been making enough noise that climate change is real and actions are needed, it is also a fact that successive COP conferences have failed to get developed countries to commit funds to already agreed upon climate-change funds for developing nations. One can only hope that the initiative (of collective financing model) will be backed up s with finance and technical assistance that is tailor-made for Bangladeshi companies and if that happens, decarbonisation can happen in a fruitful manner in the RMG sector.​

 

[Saif]

RMG exports to EU witness negative growth in Jan-Apr

Bangladesh's ready-made garment (RMG) export to the European Union has sustained year-on-year negative growth during the first four months of this year. It fetched 6.01 billion euro from RMG exports to the EU during January-April period of 2024 compared to 6.67 billion euro during the correspondin

thefinancialexpress.com.bd

RMG exports to EU witness negative growth in Jan-Apr
Global economic slowdown, energy shortage at home and long lead time blamed
MONIRA MUNNI
Published :
Jun 23, 2024 09:22
Updated :
Jun 23, 2024 09:22

Bangladesh's ready-made garment (RMG) export to the European Union has sustained year-on-year negative growth during the first four months of this year.

It fetched 6.01 billion euro from RMG exports to the EU during January-April period of 2024 compared to 6.67 billion euro during the corresponding period of last year, according to Eurostat data.

RMG exporters said overall import to the EU fell during the period in question due to the global economic slowdown, while Bangladesh lagged behind its competitors due to energy shortage, long lead time and customs procedure.

The EU's total apparel imports in the first four months of 2024 stood at 26.41 billion euro, which was 6.28 per cent lower than that of 28.18 billion euro during the same period of 2023.

China fetched 6.54 billion euro during the January-April period of 2024 against 6.66 billion euro, marking a 1.81-percent negative growth.

EU's import from Turkey and India recorded 11.84 per cent and 10.74 per cent decline to 3.02 billion euro and 1.52 billion euro respectively during the first four months of 2024.

Vietnam also recorded a 6.25-percent decrease to fetch 1.17 billion euro during the period, according to Eurostat data.

During the period, in terms of value, Bangladeshi made knitwear items became the top clothing exporter to the EU making shipments worth of 3.37 billion euro followed by China that fetched 3.15 billion euro.

When asked, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) executive president Mohammad Hatem attributed high production cost, fuelled by a hike in utility prices and wage, to this negative growth.

"High lead time is one of the major reasons Bangladesh lags behind its competitors," he said, adding that competitors like China and Vietnam managed to reduce the negative growth rate unlike Bangladesh.

Due to the power and gas crisis, they could not utilise full production capacity, while facing difficulties in procuring raw materials timely, requiring 20-25 additional days to produce goods and make shipments.

"Currently, we need 70-90 days of lead time, which was earlier 50 days," Mr Hatem told the FE.

Besides, they could not receive orders at the prices buyers were offering mainly because of high production costs, followed by price hikes in gas and electricity as well as accessories.

The BKMEA leader also held customs harassment responsible for the negative growth, claiming that they faced difficulties in importing raw materials and making timely shipments.

Not only in the EU, Bangladesh recorded negative growth in the US and the UK too, he said, adding that these are the real scenario, although there is growth in the export data of the Export Promotion Bureau (EPB).

Talking to the FE, Fazlul Hoque, managing director of Plummy Fashions Ltd., also echoed Mr Hatem and added that though Bangladesh's main competitors China and Vietnam are able to gradually reduce the negative growth rate, Bangladesh could not make it up.

The former BKMEA president, however, commented that markets are yet to be stable and normal, and said there is hardly any possibility that the country's export growth situation would improve soon.

Bangladesh also recorded more than 14 per cent negative export growth to the US, its single-largest export destination, and fetched $2.30 billion during January-April period of 2024, according to US official data.​

 

[Saif]

Knitwear pushes up RMG value addition in Q3

Value addition in the country’s readymade garment sector reached a record high of 72.20 per cent in the third quarter (January-March) of the current financial year 2023-24 compared with that of 71.06 per cent in the same period of FY23...

www.newagebd.net

Knitwear pushes up RMG value addition in Q3
Staff Correspondent 25 June, 2024, 23:01

Workers sew clothes at a readymade garment factory in Narayanganj recently. Value addition in the country's readymade garment sector reached a record high of 72.20 per cent in the third quarter (January-March) of the current financial year 2023-24 compared with that of 71.06 per cent in the same period of FY23. | New Age photo

Value addition in the country's readymade garment sector reached a record high of 72.20 per cent in the third quarter (January-March) of the current financial year 2023-24 compared with that of 71.06 per cent in the same period of FY23.

This growth was primarily driven by increased shipments of knitwear products and other high value-added items, exporters said.

According to a Bangladesh Bank report titled 'Quarterly Review on RMG: January-March FY24', the import value of raw materials, including raw cotton, synthetic/viscose fiber, synthetic/mixed yarn, cotton yarn, and textile fabrics and accessories for garments, amounted to $3.84 billion in January-March of FY24, accounting for 27.80 per cent of total RMG export.

As a result, the net exports from the RMG sector stood at $9.97 billion in the third quarter of FY24, which is 18.70 per cent higher than the $8.40 billion in the preceding quarter and 14.49 per cent higher than the $8.71 billion in the same quarter of FY23, the report said.

In the third quarter of FY24, export earnings from RMG stood at $13.81 billion, marking a 17.30-per cent increase compared with that of $11.77 billion in the preceding quarter and a 12.69-per cent increase compared with that of $12.25 billion in the corresponding quarter of FY23.

Earlier, the highest value addition in the readymade garment sector was recorded at 71.48 per cent in the April-June quarter of FY23.

In the second quarter (October-December) of FY24, the value addition in the RMG sector was 71.35 per cent.

Bangladesh Knitwear Manufacturers and Exporters Association executive president Mohammad Hatem on Tuesday told New Age that the local value addition in the knitwear products topped 85 per cent and the overall value addition in the sector increased to 72.20 per cent due to increased shipments of knitwear.

He said that that the export of knitwear began to increase after the initial shock of Covid pandemic, and recently the ratio of knitwear to woven garment shipments had stood at 55:45.

At the same time, the shipment of some of high value-added woven products increased, Hatem said.

According to the business leader, the local value addition in the woven garments is 45-55 per cent.

The BB data showed that export earnings from the knitwear sector in January-March quarter of FY24 reached $7.53 billion, marking a 16.26-per cent increase compared with that of $6.47 billion in the same quarter of the previous financial year.

Additionally, knitwear exports exceeded its target by 1.69 per cent for the third quarter of FY24.

Export earnings from woven garments in the third quarter of FY24 stood at $6.28 billion, marking an 8.69-per cent increase compared with that of $5.78 billion in the same quarter of FY23.

The data showed that in January-March of FY24, RMG exports to Bangladesh's nine main destinations — the United States, Germany, the United Kingdom, Spain, France, Italy, the Netherlands, Canada and Belgium — totalled at $9.32 billion.​

 

[Saif]

RMG export to EU rises by 2% in 11 months

$21.64 billion worth of apparels were shipped to the European Union in the Jul-May period this fiscal year

www.thedailystar.net

RMG export to EU rises by 2% in 11 months
$21.64 billion worth of apparels were shipped to the European Union in the Jul-May period this fiscal year

Garment export to the European Union (EU) rose by 2 percent year-on-year to $21.64 billion in the July-May period of the current fiscal year.

Shipments to Spain, France, Netherlands, Poland and Denmark grew by 6.23 percent, 1.02 percent, 16.27 percent, 17.28 percent and 26.96 percent respectively.

On the other hand, garment export to Germany, the largest EU market for Bangladesh, declined by 10.12 percent year-on-year, according to data from the Export Promotion Bureau compiled by Bangladesh Garment Manufacturers and Exporters Association today.

Apparel export to Italy also declined by 6.1 percent in the 11 months to May this year.

Meanwhile, apparel export to the USA hit $7.46 billion in the period, posting a 3.43 percent fall.

At the same time, exports to the UK grew by 12.34 percent year-on-year to $5.15 billion and to Canada it declined by 0.31 percent to $1.3 billion.

However, garment export to non-traditional markets grew by 6.47 percent year-on-year to $8.18 billion.

Among the major non-traditional markets, shipments to Japan, Australia and South Korea posted respectively 1.83 percent, 11.76 percent and 14.34 percent growth.

But apparel export to India decreased by 23.11 percent.​

 

[Saif]

Bangladesh\'s RMG exports grow in non-traditional markets except India

Bangladesh’s readymade garments exports in the July-May period of the 2023-24 financial year grew in all non-traditional markets except neighbouring India...

www.newagebd.net

Bangladesh's RMG exports grow in non-traditional markets except India
Staff Correspondent 27 June, 2024, 22:15

A file photo shows containers at the Kamalapur Inland Container Depot in the capital Dhaka. | New Age photo

Bangladesh's readymade garments exports in the July-May period of the 2023-24 financial year grew in all non-traditional markets except neighbouring India.

The country's apparel export destinations outside the European Union, the United States, the United Kingdom and Canada are considered non-traditional markets.

According to the Export Promotion Bureau data, Bangladesh's RMG exports in July-May of FY24 to the non-traditional markets grew by 6.47 per cent to $8.19 billion compared with that of $7.69 billion in the same period of the previous financial year.

But the country's apparel exports to India in the 11 months of FY24 declined by 23.11 per cent to $728.85 million compared with that of $947.86 million in the same period of FY23.

'We are optimistic about the future growth of Bangladeshi apparel to the non-traditional markets, as exporters are receiving better prices in those markets,' Bangladesh Knitwear Manufacturers and Exporters Association senior-vice president Fazlee Shamim Ehsan told New Age on Thursday.

He said that Indian government had announced huge incentives on the investments in the RMG sector in some states to gain more share on the global market.

'With the government support, Indian manufacturers have already begun to increase their production capacity. As India expanded its capacity, Bangladesh's apparel exports have started encountering more non-tariff barriers in the market,' Fazlee Shamim said.

Although Bangladesh's apparel exports to major markets like the EU, the US and Canada have been struggling in recent months, exporters have remained optimistic about the future of non-traditional markets.

The country's apparel exports to the EU in July-May of FY24 witnessed a meagre 2 per cent growth to $21.65 billion while the earnings from the US fell by 3.43 per cent to $7.47 billion in the period compared with that in the same period of the previous year.

Among the non-traditional markets, Bangladesh's apparel exports to Australia in July-May of FY24 increased by 11.76 per cent to $1.18 billion compared with that of $1.06 billion in the same period of FY23.

RMG exports to Japan in 11 months of FY24 increased by 1.83 per cent to $1.48 billion compared with $1.46 billion in the same period of FY23.

Bangladesh's apparel exports to South Korea in July-May of FY24 increased by 14.34 per cent to $572.85 million compared with that of $501.01 million in the same period of FY23.

The country's RMG exports to Russia in the 11 months of FY24 increased by 15.50 per cent to $462.35 million while the exports to China grew by 23.23 per cent to $310.55 million in the period.

The EPB data also showed that Bangladesh's apparel exports to the United Arab Emirates in July-May of FY24 grew by 34.08 per cent to $368.94 while the RMG export earnings from Saudi Arabia increased by 58.28 per cent to $273.05 million in the period.​

 

[Saif]

Declining apparel exports - any way out?

The decline in garment export to the largest markets USA and the EU is persisting since the second half of the current fiscal. Reasons broadly attributed to the situation include inflationary pressure, increased production costs, lead time, and energy crisis. Lead time has always been a factor to c

thefinancialexpress.com.bd

Declining apparel exports - any way out?
WASI AHMED
Published :
Jul 02, 2024 22:05
Updated :
Jul 02, 2024 22:05

The decline in garment export to the largest markets USA and the EU is persisting since the second half of the current fiscal. Reasons broadly attributed to the situation include inflationary pressure, increased production costs, lead time, and energy crisis. Lead time has always been a factor to cause delay in shipments-an inherent drawback that places competitors like Vietnam and Cambodia in an advantageous position over Bangladesh. However, in the past this inadequacy was partly made up by cheap labour and large-scale production of low-end apparel products. The situation now seems to be increasingly difficult as inflationary pressure coupled with energy crisis has made garment export more challenging than in the past.

According to the US Department of Commerce's Office of Textiles and Apparel data released last week, Bangladesh's apparel export to the USA in the first four months of 2024 declined by 14.44 per cent to $2.31 billion compared with that of $2.70 billion in the same period of 2023. During the same period, exports from Vietnam grew by 0.31 per cent, while those from China declined by 4.42 per cent. The data showed that Vietnam overtook China to become the largest RMG exporter to the US in the January-April period of 2024. The US apparel imports from Cambodia in January-April of 2024 also increased by 7.92 per cent to $1.03 billion compared with those of $951.93 million in the same period of 2023. In the same period, the combined export of textile and garment from Bangladesh to the USA declined by 14.15 per cent year-on-year to $2.38 billion, according to data from the Office of Textiles and Apparel (OTEXA), a body under the US Department of Commerce.

The situation in respect of the EU is no better, if not worse. Bangladesh's RMG exports to the European Union in January-April, 2024 fell by 9.85 per cent to 6.01 billion euros compared with those of 6.67 billion euros in the same period of 2023, according to data released by Eurostat. Bangladesh managed to reduce its negative apparel export growth in the EU slightly but still performed worse compared with competitor countries in the reporting period. Exporters say, like the United States, Bangladesh lagged behind its competitors in the EU market due to severe energy crisis, high cost of utilities, increased cost of production, long lead times and cumbersome customs procedures. The EU data showed that Bangladesh's knitwear exports to the EU in January-April of 2024 dropped to 3.38 billion euros from 3.88 billion euros in the same period of 2023. Similarly, the country's woven garment exports to the EU during the period declined to 2.64 billion euros from 2.79 billion euros in the same period of 2023.

Exporters observe that despite a recent growth in US demand for apparel, and the EU too increasing its imports, Bangladesh failed to capture a larger market share due to factors such as longer shipment times and higher production costs. They say buyers are placing more orders with Vietnam and China recently, due primarily to shorter delivery times. According to the exporters, lead time for importing and processing for export has become longer-to 70-80 days from 50-55 days in the recent past.

It is pretty well known that China in the past years has been gradually moving away from exporting low-end apparel products in preference for up-end, value added varieties. This shift did offer a prospect for countries like Bangladesh, Vietnam and Cambodia to compete for a fair share of those products in global market. There was also a prediction that many Chinese apparel exporting firms would opt for relocation of their production units to these countries because of the escalating cost of labour and other vital inputs in China. There were speculations among the business community and trade experts that relocation of Chinese factories and shifting of a sizable share of Chinese apparel exports would benefit Bangladesh. It is now clear that Bangladesh could not benefit from either of the two opportunities. The opposite, however, has happened in case of Vietnam-in grabbing shifting export orders and relocation of production units.

Lead time is indeed one factor to dissuade importers to place work orders, but equally important issues that according to exporters are responsible to deter importers, especially US importers, are logistics and infrastructure-related limitations, and instable energy supply.

One sure way to cut lead time is raising local supply of raw materials and accessories. During the past two decades, substantial investment took place in the country's textile sector for meeting demands of woven and knit fabrics for export manufacturing. It is claimed that currently local textile and spinning mills have a capacity of meeting around 75-80 per cent of export requirements. But the instable energy security has led most mills to operate far below capacity.

Gas and power scarcity that seemed to take its toll on industrial production since a year ago has by now become potentially threatening to almost the entire range of industrial productivity. Notable among the sectors badly hurt include textiles, RMG, light engineering, fertiliser, cement etc. As reports have it, country's textile mills are the worst victims of gas and power shortage for several months. Production in the export-oriented textile mills has drastically fallen due to the ongoing gas supply shortage. A representative of the textile mills association has reported that local factories are operating at 60-70 per cent capacity due to energy shortages, prompting buyers to redirect orders to China and Vietnam for quicker deliveries. Some 300 textile mills located at Gazipur, Savar, Ashulia, Shreepur, Dhaka, Narayanganj, Narsingdi and Bhaluka are finding it extremely difficult to remain operational in this situation.

In order for things to improve, the most crucial requirement is ensuring adequate gas and power supply. While other areas affecting exports cannot be expected to be healed quickly, energy should be the key focus of the government.​

 

[Saif]

Cut in export incentives to weigh on textile sector

The government’s decision to further cut incentives on export receipts will badly hurt the domestic textile sector which bears an investment of $22 billion, a top leader of Bangladesh Textile Mills Association (BTMA) said yesterday.

www.thedailystar.net

Cut in export incentives to weigh on textile sector
BTMA says

The government's decision to further cut incentives on export receipts will badly hurt the domestic textile sector which bears an investment of $22 billion, a top leader of Bangladesh Textile Mills Association (BTMA) said yesterday.

Moreover, the primary textile sector, which has been working as the garment industry's main backward linkage, will lose its competitiveness in international markets, said BTMA President Mohammad Ali Khokon.

The government needs to formulate a long-term roadmap for the textile and garment sector to survive and grow well into the country's graduation into a developing nation, he said.

Other comparator countries have already devised such plans and those are working well, he told a press conference at the BTMA office in Dhaka.

For instance, India graduated from least developed country (LDC) status in 2004 and still provides a lot of incentives as alternatives to direct cash subsidies for the growth of the textile and garment sectors, said Khokon.

As a result, the difference in the cost of production of a kilogramme of 30 count yarn in Bangladesh and India is currently 22 cents, he said.

Unfortunately, this advantage is leading to 13 percent of Bangladesh's annual demand for yarn being met with imports from India, causing the local primary textile sector to suffer, he added.

Indian yarn sellers are flooding the Bangladesh market with their cheap products and dominating local yarn manufacturers, he said.

Asked whether the BTMA would ask the government to enforce anti-dumping initiatives, Khokon said lodging complaints is not something that the BTMA should take up.

The government will deal with state level issues and in this case, it can be assisted by the apex trade body, the Federation of Bangladesh Chambers of Commerce and Industry, he said.

The BTMA chief also demanded the withdrawal of a Bangladesh Bank circular of June 30 this year.

The circular announced that cash subsidy on use of local yarn had been reduced to 1.5 percent from 4 percent as a part of preparations for the LDC graduation in 2026.

In January, the government had also reduced the cash subsidy on export receipts to some extent.

However, Bangladesh will enjoy trade benefits of the European Union (EU) as an LDC up to 2029 as the EU always offers graduating LDCs a grace period of three years, said Khokon.

Moreover, the 13th ministerial conference of the World Trade Organization (WTO) held in Abu Dhabi in February this year decided to extend the LDC trade benefits to graduating LDCs for three more years, he said.

So, still there is a long time to go until final LDC graduation. The government should continue the trade facilities up to that time for the growth of the economy, the BTMA chief also said.

The government should also formulate a long-term policy support to address challenges in the post LDC graduation period, he added.

Of the major costs behind the production of every kg of yarn in Bangladesh, gas accounts for 27 cents whereas it was 11 cents prior to a price hike, he said.

Similarly bank loan interest accounts for 11 cents whereas it was 8 cents around a year ago, he said.

The mills have been running at 50 percent capacity because of low gas pressure, he added.

The government also increased the price of gas to Tk 31 per unit for the textile sector but kept it at Tk 15 per unit for power plants, which is discriminatory, he added.

Currently, the textile sector needs 3,800 million metre cubic feet of gas per day (MMCFD) but the government can supply 2,631 MMCFD.

Damage inflicted during the recent Cyclone Remal has reduced the gas supply to 2,350 MMCFD, for which the local millers are facing a severe gas crisis.

Regarding cotton imports, the BTMA chief said since Bangladesh does not produce any cotton, the local millers import nearly $4 billion worth of the fibre, helping to turn the country into the second-largest garment exporter after China.

Along with the continuation of cotton imports, the government should also facilitate imports of man-made fibres as the demand for garment items made from artificial fibres has been rising worldwide and an opportunity has been created for the country, he said.​

 

[Saif]

Hazards of textiles' 'forever chemicals'

A recent study by the Environment and Social Development Organization (ESDO) and International Pollutants Elimination Network (IPEN) titled 'Persistent Threat: PFAS in textiles and water in Bangladesh' sheds light on a critical issue that demands immediate attention from policymakers and garment an

thefinancialexpress.com.bd

Hazards of textiles' 'forever chemicals'
ATIQUL KABIR TUHIN
Published :
Jul 06, 2024 21:36
Updated :
Jul 06, 2024 21:36

A recent study by the Environment and Social Development Organization (ESDO) and International Pollutants Elimination Network (IPEN) titled 'Persistent Threat: PFAS in textiles and water in Bangladesh' sheds light on a critical issue that demands immediate attention from policymakers and garment and textile industry leaders. The report reveals alarming levels of toxic PFAS (per- and polyfluoroalkyl substances) in surface and tap water samples collected near industrial areas, particularly those associated with the textile industry in and around Dhaka.

PFAS are a large, complex group of synthetic chemicals that have been used in consumer products around the world since aroind the 1950s. PFAS are widely used for their water and stain-resistant properties in various consumer products, including textiles. These chemicals, however, earned the nickname of 'forever chemicals' because scientists say they could take hundreds or even thousands of years to degrade long after their initial use. If PFAS leak into water, they could remain there for centuries. As the textile industry accounts for about 50 per cent of global PFAS use, Bangladesh stands at the epicentre of this environmental crisis as the world's second largest apparel manufacturer.

To address the issue, Dr. Shahriar Hossain, senior policy and technical advisor for ESDO and lead author of the study, said "Regulating thousands of PFAS chemicals one-by-one would take decades and leave our children at risk. We urgently need global controls on all PFAS chemicals as a class." His call for a class-based approach to banning PFAS chemicals is both practical and necessary. Given the complexity and sheer number of PFAS compounds, a piecemeal regulatory approach would be insufficient and dangerously slow.

The long-time health implications of exposure to PFAS so far known are well documented. These chemicals have been linked to fertility problems, developmental issues, thyroid disruption, weakened immunity, liver damage, and cancer. Despite these serious risks, the textile industry and policymakers have been slow to respond. The study detected PFAS in 87 per cent of the surface water samples collected, with many samples exceeding proposed regulatory limits by alarming margins. One sample from the Karnatali River in Savar contained PFAS levels more than 300 times above the proposed EU limit, with PFOA and PFOS levels thousands of times higher than Dutch advisory limits.

The study also highlights the significant influence of major international fashion brands sourcing products from Bangladesh. These brands have the power to drive change by demanding PFAS-free products and being transparent about the presence of these chemicals in their products. Some brands have already committed to eliminating PFAS, demonstrating that safer alternatives are available and viable. The textile industry must follow suit and prioritise public health and environmental sustainability over short-term economic gains. If necessary the government must force them to follow suit.

Siddika Sultana, executive director of ESDO in Bangladesh, rightly points out that "the fashion export industry should not get a free pass to contaminate our rivers, lakes, and taps with PFAS." The industry must be held accountable and stricter regulations are essential. Bangladesh currently lacks specific regulations on PFAS, a gap that policymakers must urgently address. Implementing a class-based ban on PFAS chemicals and setting stringent contamination limits are critical steps toward mitigating this pervasive threat.

Clean water is the essence of all life. Not just for humans, but also for animals and plants. It is the very foundation of a healthy ecosystem. Yet, Dhaka's rivers, once teeming with life, are now being polluted, strangled, and choked by industrial and human waste. This is not just a major concern for now, but also for our very survival and collective future. We need to stop the rot and veer away from our suicidal ways immediately. Industry, policymakers, and the public alike must work together to clean up Dhaka's water and ensure a healthy future for all.​

 

[Saif]

Bangladesh is a promising destination for business, BGMEA president tells Chinese delegation

BGMEA president SM Mannan (Kochi) has said with strategic location, political stability, growing infrastructure and logistics, Bangladesh is a promising destination for business and investment. He provided an insightful overview of Bangladesh’s vibrant apparel industry, highlighting its stra

thefinancialexpress.com.bd

Bangladesh is a promising destination for business, BGMEA president tells Chinese delegation
Published :
Jul 07, 2024 20:21
Updated :
Jul 07, 2024 20:21

BGMEA president SM Mannan (Kochi) has said with strategic location, political stability, growing infrastructure and logistics, Bangladesh is a promising destination for business and investment.

He provided an insightful overview of Bangladesh's vibrant apparel industry, highlighting its strategic shift towards manufacturing high-value woven and man-made fibre (MMF)-based garments.

A delegation representing leading Chinese textile and apparel enterprises visited the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Sunday to explore collaboration opportunities in the textile and apparel sector, UNB reports.

Led by Huang Liansheng, Managing Director of the China Textile Industrial Corporation for Foreign Economic and Technical Cooperation (CTEXIC), the 15-member delegation engaged in fruitful discussions with the leaders of BGMEA including President SM Mannan (Kochi), Senior Vice President Khandoker Rafiqul Islam, Vice President Abdullah Hil Rakib and Vice President Rakibul Alam Chowdhury.

The meeting focused on exploring investment opportunities, and expanding business horizons between Bangladesh and China in the textile and apparel industry.

Mannan (Kochi) highlighted the increasing investment by Bangladeshi manufacturers in technology upgradation to enhance production capabilities and efficiency in manufacturing high-end complex garment items.

The BGMEA leaders underscored the potential for Chinese investment in high-end textiles and backward linkage industries in Bangladesh, which promise mutual benefits for both nations.

They also emphasised China's support in enhancing capabilities through the exchange of knowledge and technical expertise.

Huang Liansheng, Managing Director of CTEXIC, expressed the delegation's purpose during their visit to Bangladesh, emphasizing their interest in assessing the business and investment environment and policies of the country.

"During our visit to various factories, we are pleased to witness significant improvements in the working environment in Bangladesh. The workers here exhibit a positive and energetic attitude," he remarked. "Many Chinese companies are eager to explore business and investment opportunities in Bangladesh."

Huang Liansheng further said, "We intend to share our positive experiences with other Chinese companies that have not yet ventured into Bangladesh, encouraging them to explore the business potential this country offers."

BGMEA Directors Md Ashikur Rahman (Tuhin), Shams Mahmud, Rajiv Chowdhury, Abrar Hossain Sayem, Md Jakir Hossain, Md Nurul Islam, Md Rezaul Alam (Miru), M Ahsanul Hoq, Mohammed Rakib AL Naser, and Md Absar Hossain were present at the meeting.​

 

[Saif]

Knitting industries call indefinite strike for price hike

Production shutdown begins today

www.thedailystar.net

Knitting industries call indefinite strike for price hike
Production shutdown begins today

The knitting industries across the country have called for an indefinite strike demanding a price hike of the raw materials they produce for the knitwear sector.

Production will remain shut in the factories from July 15 and it will continue until further notice, Md Selim Sarwar, president of Bangladesh Knitting Owners Association (BKOA), said in a statement.

Over 700 knitting industries, which supply knit fabrics, collar, needles, button and needle oil, demanded the raise because of increasing US dollar rates and gas and power prices.

These industries supply nearly 70 percent of the fabrics that are used in export-oriented knitwear garment factories, said Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

"Their demand for a price hike of their goods is logical, but they have not discussed the issue before going for the production shutdown in their factories."

Instead of calling a strike, these industries should sit with the knitwear manufacturers as the prices of those goods need to be increased, he said.​