[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Bangladesh to stay as top cotton importer in 2025-26

Bangladesh, the second largest exporter of readymade garment items, is poised to remain the world’s largest raw cotton importer in the marketing year 2025-26, said the US Department of Agriculture...

www.newagebd.net

Bangladesh to stay as top cotton importer in 2025-26
USDA says
Saddam Hossain 20 May, 2025, 23:30

A file photo shows a worker overseeing a cotton processing machine at a factory in Habiganj. | New Age photo

Bangladesh, the second largest exporter of readymade garment items, is poised to remain the world’s largest raw cotton importer in the marketing year 2025-26, said the US Department of Agriculture.

According to the data titled ‘Cotton: World Markets and Trade’ issued by the Foreign Agricultural Service under USDA, Bangladesh is projected to import 8.5 million bales of cotton in MY26, which starts in August.

USDA data show that in MY24, Bangladesh imported about 7.5 million bales of cotton from its global sources, which may increase to 8.2 million bales at the end of the current MY25.

Vietnam, one of the closest competitors of Bangladesh in the RMG export, is projected to import 8 million bales of cotton in MY26, where China may import 7 million bales, which imported 15 million bales in MY24.

However, Bangladesh remained top cotton importers, with 7 million bales import in MY23, and 8.45 million bales in MY22.

Meanwhile, on March 31, the USDA, in its report titled ‘Cotton and Products Annual,’ stated that Bangladesh’s cotton imports would witness a slight increase in MY26 thanks to increasing demand for RMG items.

According to the Export Promotion Bureau data, in the July-April period of the current FY25, Bangladesh’s RMG exports witnessed a positive growth of 10.86 per cent year-on-year to $30.25 billion.

In MY24, West African cotton held the largest market share in Bangladesh (37 per cent), while other major exporters included Brazil (17 per cent), India (23 per cent), and the United States (9 per cent).

US cotton growers and exporters tried to expand their exports to Bangladesh for years.

It is to be noted that in early April, the US administration announced hefty duties on multiple countries as part of sweeping global tariffs, and Bangladesh was also slapped with a 37 per cent reciprocal tariff. Currently, most Bangladeshi goods in the US face a 15 per cent tariff.

However, after a few days, the US administration paused the declared tariff for a 90-day period.

A number of exporters and experts suggested raising the import of US cotton to reduce the trade gap between Bangladesh and the US.

On 2023, Bangladesh lifted the double fumigation requirement for US cotton, meant US cotton could enter Bangladesh without fumigation at the port of entry, which saved importers millions of dollars and five days of waiting time.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said Bangladesh could import more cotton from the US as a part of a broader strategy to reduce the trade gap between the two countries.

He said that the USDA’s import forecast strongly ratifies Bangladesh’s capability to maintain and expand its leadership in the global RMG value chain.

He also said that importing a large amount of cotton from the US may reinforce Bangladesh’s position for bargaining for duty-free access for its RMG items to the US.

He also said that the government’s position in this regard is appreciable.

He added that cotton will always remain vital as a crucial raw material for Bangladesh’s spinners and knitwear producers as a primary source of natural and sustainable fibre.

According to the USDA, Bangladeshi producers could produce about 153,000 bales of cotton on 45,000 hectares of land, which is less than 2 per cent of its total consumption.​

 

[Saif]

Textile mills gasp from severe disruption in gas supply

Textile and garment industry owners said that due to the inadequate supply of gas, the normal manufacturing activities is being hampered in the industry...

www.newagebd.net

Textile mills gasp from severe disruption in gas supply
Staff Correspondent 25 May, 2025, 22:59

BTMA president addresses the press conference organised by the Bangladesh Textile Mill Association in the capital on Sunday. | Press release

Textile and garment industry owners said that due to the inadequate supply of gas, the normal manufacturing activities is being hampered in the industry.

Moreover, a number of textile mills are on the verge of shutting down as they are unable to operate even at minimum capacity.

They were speaking at a press conference organised by the Bangladesh Textile Mill Association in the capital on Sunday.

Representatives from Federation of Bangladesh Chamber of Commerce and Industry, Bangladesh Garment Manufacturers and Exporters Association, Bangladesh Knitwear Manufacturers and Exporters Association, Bangladesh Terry Towel and Linen Manufacturers and Exporters Association, Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh, and Bangladesh Chamber of Industries were also present at the event.

BTMA president Showkat Aziz Russell said that the sector was going through a gas supply shortage for the past few months, and it became severe in the last few weeks.

He also said that the government was reluctant to resolve the crises and the sector was passing through a hard time.

‘The government seems like ostrich, everyone is saying about their problems but they hide their head in the sands,’ he added.

He also said that the factories are being strangled to death through anti-industry actions and the working capital has shrunk drastically.

‘It seems that we cannot pay wages and festival allowances properly before Eid and we won’t be able to reopen the factories after Eid,’ he added.

He also said that in 1971, intellectuals were systematically targeted and killed. In 2025, the industry and the industrialists are being targeted destroyed, he added.

He also said that the failure to save the industry could lead the country towards famine.

He sought immediate governmental measures to ensure smooth and uninterrupted gas supply to the textile industries of the country.

‘The government has failed to provide adequate gas supply to the industries despite hike in the prices several time and repeated commitments,’ he added.

But, the government is now setting a deadline for the factories to pay wages, otherwise, the owners will be arrested, and their houses and cars will be sold, he lamented.

‘Government should introduce a mid-term strategy and roadmap to resolve the gas and energy issues,’ he added.

He also said that there was about 20 per cent system loss in Titas Gas, though the global standard is 1 per cent to 2 per cent.

‘If the government take immediate measures to stop system loss, it would be lowered to 7 per cent to 8 per cent,’ he added.

BCI president Anwar Ul Alam Chowdhury said that the government committed to provide required mmcf of gas, but they couldn’t supply.

The government has hiked gas price, interest rates for which factories run only 60 per cent of their capacity.

Jakir Hossain Noyon, member of the assistant committee of the FBCCI, said that government must focus on exploring new gas field to meet the demands.

He also urged the government to start Small Modular Reactor technology for the industry.

BTMA director Rajeev Haidar also urged to drill new gas field.

BTMA vice-president Saleudh Zaman Khan said that if the government did not take proper action, Bangladesh would not see the birth of new entrepreneurs.

‘If the government couldn’t solve the problems by June, a number of factories will shut after the Eid,’ he added.

Business leaders from many other trade bodies also spoke at the event.​

 

[Saif]

High-level consultation held to align on single monitoring and compliance system for RMG sector

A high-level consultation meeting towards alignment for a Single Monitoring and Compliance System (SMCS) was held on Tuesday at the BGMEA Complex in Uttara. The event was jointly organized by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufac

thefinancialexpress.com.bd

High-level consultation held to align on single monitoring and compliance system for RMG sector

FE Online Report
Published :
May 27, 2025 23:21
Updated :
May 27, 2025 23:55

A high-level consultation meeting towards alignment for a Single Monitoring and Compliance System (SMCS) was held on Tuesday at the BGMEA Complex in Uttara.

The event was jointly organized by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

The meeting brought together key stakeholders, including representatives from the International Labour Organization (ILO), the Department of Inspection for Factories and Establishments (DIFE), and major global brands such as M&S, GAP, Inditex, and Li & Fung, alongside members of BGMEA and BKMEA.

Discussions centered around the persistent challenge of overlapping audits and compliance requirements in the RMG and textile sector.

The participants highlighted how this leads to audit fatigue, duplication of efforts, and inefficient use of resources.

This consultation focused on discussing ways to establish a common platform to streamline monitoring and compliance practices for enhanced sector-wide efficiency and accountability.

The session was chaired by Md. Anwar Hossain, Administrator, BGMEA. ANM Saifuddin, Supporting Committee Member, BGMEA, moderated the discussion, while Fazlee Ehsan Shamim, Executive President, BKMEA, also spoke at the meeting.

In his remarks, Tuomo Poutiainen, Country Director of ILO Bangladesh, stressed the importance of developing a credible and inclusive national system. He highlighted the need for trust-building and institutional collaboration to ensure the system’s success and sustainability.

BGMEA Administrator Md. Anwar Hossain underscored the need to address fragmentation in audits to minimize fatigue and highlighted the importance of a common compliance platform with a credible and internationally accepted unified code of conduct for social and technical audits.

He emphasized that this would benefit all stakeholders — buyers, manufacturers, and workers alike.

Anwar Hossain urged the ILO to take the lead in facilitating its development.

All brand representatives and stakeholders present expressed support for the initiative.

BGMEA and BKMEA will jointly develop a concept paper outlining the scope, rationale, and framework of a unified monitoring and compliance system, according to meeting sources.

Stakeholder consultations will be initiated to identify common compliance indicators across trade bodies, employers, trade unions, brands, and auditing experts.

The initiative aims to lay the groundwork for a trusted and transparent national compliance system aligned with global expectations and the Bangladeshi context.​

 

[Saif]

Over half of registered RMG factories pay festival allowance ahead of deadline: BGMEA

Over 53 per cent, or 1,126 garment factories registered with the apparel apex body — Bangladesh Garment Manufacturers and Exporters Association— paid festival allowances as of Wednesday, three days before the set deadline, according to data from the BGMEA. The trade body, in a circular

thefinancialexpress.com.bd

Over half of registered RMG factories pay festival allowance ahead of deadline: BGMEA

FE Online Report
Published :
May 28, 2025 19:47
Updated :
May 28, 2025 22:19

Over 53 per cent, or 1,126 garment factories registered with the apparel apex body — Bangladesh Garment Manufacturers and Exporters Association— paid festival allowances as of Wednesday, three days before the set deadline, according to data from the BGMEA.

The trade body, in a circular issued on May 26 citing the government’s decision, asked all its members to pay the festival allowance by May 31 and the monthly wages for May by June 3.

“But, if necessary, May wages could be paid before the Eid holiday starts, considering production and shipment, after discussions with respective workers,” read the notification.

It further added that, in such cases, factory management must ensure there is no labour unrest.

According to the BGMEA, some 2,092 factories listed with the trade body are currently in operation.

Some 46.18 per cent, or 966 factories, had not paid the festival allowance as of Wednesday, data showed.

It also showed that four units in the Gazipur, Savar, and Ashulia industrial zones out of the 2,092 factories suspended operations on Wednesday for various reasons.

Two factories located in Gazipur — Hong Kong Fashion Ltd and Hagh Knitwear Ltd — had not paid wages for the month of March as of Wednesday, while about two dozen factories had not paid wages for the month of April.​

 

[Saif]

Bangladesh now has 244 green RMG factories

Now Bangladesh has 244 readymade garment factories certified by the United States Green Building Council’s Leadership in Energy and Environmental Design authorities as another unit achieved status of green factory. ..

www.newagebd.net

Bangladesh now has 244 green RMG factories
Staff Correspondent 28 May, 2025, 23:06

Now Bangladesh has 244 readymade garment factories certified by the United States Green Building Council’s Leadership in Energy and Environmental Design authorities as another unit achieved status of green factory.

Of the 244 green factories, 102 are platinum-rated, 128 gold-rated, 10 silver-rated and four certified factories, according to the Bangladesh Garment Manufacturers and Exporters Association.

In May, Gazipur-based Esprit Apparels Ltd achieved a platinum certificate from the USGBC under LEED BD+C: New Construction v4 rating system with a score of 101.

So far, 68 of the world’s top 100 LEED factories, including nine of the top 10 and 18 of the top 20, are in Bangladesh.

This success is expected to attract new investment and partnerships, reinforcing Bangladesh’s position as a sustainable manufacturing hub.

According to industry insiders, a total of 550 factories were awaiting the USGBC’s LEED certification.

The factories of Bangladesh have been obtaining the LEED certificate since 2011.

The USGBC honours factories based on several criteria: transformation performance, energy, water and waste management. The best performers are rated platinum, followed by gold and silver.

According to industry insiders, these criteria help green factories significantly reduce operational costs over time, even though they may initially cost more to set up.

Former BGMEA director Mohiuddin Rubel said that as the world increasingly prioritised ESG performance and sustainability in supply chains, this milestone enhanced the country’s global image.

According to apparel manufacturers, the move towards green factory buildings helped regain Bangladesh›s image after the Rana Plaza tragedy, which claimed 1,134 lives and left more than 2,000 injured.​

 

[Saif]

We will expand new market destinations: Mahmud H Khan

As the election of the board of director of Bangladesh Garment Manufacturers and Exporters Association is approaching, Mahmud Hasan Khan (Babu), the panel leader of Forum, a contesting panel of BGMEA election for 2025-27 tenure, said his...

www.newagebd.net

We will expand new market destinations: Mahmud H Khan
Saddam Hossain 29 May, 2025, 23:06

Mahmud Hasan Khan (Babu)

As the election of the board of director of Bangladesh Garment Manufacturers and Exporters Association is approaching, Mahmud Hasan Khan (Babu), the panel leader of Forum, a contesting panel of BGMEA election for 2025-27 tenure, said his vision to expand market destination for the country’s readymade garment items.

In an interview with New Age, Babu, also the managing director of Rising Group, said that their goal is to increase stake in the nontraditional or new markets.

‘In the past ten years, the market for country’s RMG items expanded to Asian, African and Latin American markets significantly. Currently, about 20 per cent of the export earnings come from the new markets,’ he added.

Overreliance on few destinations is not ideal always, he added saying that they would work more for Japan, Australia, Brazil and other new destinations.

He also said that if they can be elected, they would closely work with the government to sign free trade agreement or preferential trading agreement as the Western countries frequently changes their tariff policies.

‘To fulfill our 14-point election manifesto, we have selected candidates’ entrepreneurial experience, professional competence, industry expertise, and technological proficiency, as well as their visionary leadership,’ he added.

He said that for the mentioned reason, the members would vote them, and if they can be elected, they will contribute to building a modern, transparent, and accountable BGMEA and in this regard.

He said that the Ministry of Commerce handles a wide range of domestic trade matters, often resulting in delays. So, they will work with the government establish a dedicated ‘Ministry of Apparel’ to faster decision-making, policy formulation and implementation.

He also said that small and medium entrepreneurs in the apparel sector have long faced numerous challenges.

‘It is crucial to ensure access to low-interest loans for SME entrepreneurs. We would work for a special fund to provide them with technology support and enhanced market access.

Regarding the industrial safety and labour rights, he said that it would introduce forced-savings among the RMG manufacturers as a solution to wage issues ahead of Eid and other festivals.

‘Bangladesh’s apparel industry is now 45 years old. Yet, it has not become truly sustainable. To build a resilient industry, we must prioritize key areas like industrial safety, labour rights, and environmental protection’, he added.

He also said that they would work for a practical and comprehensive exit policy for the factories which become unviable due to uncontrollable reasons.

Babu Said that they have a plan to establish zone-based crisis management cells to enable faster and more effective responses to any issues that arise locally.

‘The harassment faced during customs audits continues to be a major issue for us. We do not want to remain trapped in this cycle,’ he added.

He said that they work to implement a fully digitized clearance system to reduce both the time and cost of export-import operations.

He also said that they want a competent, transparent, and accountable BGMEA for the sake of a stronger national economy.​

 

[Saif]

Bangladeshi RMG factories reap benefits from Better Work programme

Garment factories enrolled in the Better Work Bangladesh (BWB) programme are undergoing fewer social audits—used to assess labour and human rights risks—compared to factories not participating in the initiative. Babylon Group, which operates four knit and woven garment factories, has s

thefinancialexpress.com.bd

Bangladeshi RMG factories reap benefits from Better Work programme

FE ONLINE REPORT
Published :
May 30, 2025 10:32
Updated :
May 30, 2025 10:32

Garment factories enrolled in the Better Work Bangladesh (BWB) programme are undergoing fewer social audits—used to assess labour and human rights risks—compared to factories not participating in the initiative.

Babylon Group, which operates four knit and woven garment factories, has seen its average number of social audits drop from about 12 annually to seven or eight since joining the BWB programme. Rubaet Bin Aziz, Group General Manager of HR, Admin, and Compliance at Babylon Garments Limited, shared this information during a media visit to the company's Mirpur-based factory on Thursday.

“This reduction not only saves valuable time but also cuts annual costs by approximately Tk 10 million,” Aziz said.

Three of Babylon Group's factories have been working with the Better Work programme for the past seven years.

The media tour was organised by BWB to showcase how effective social dialogue and grievance mechanisms can lead to stronger worker-management relationships and support both economic performance and worker well-being.

A report by the International Trade Center (ITC), released in August last year, noted that Bangladesh's ready-made garment (RMG) sector continues to experience the highest average number of social audits, even as other countries like China, Vietnam, Turkey, and India have seen a decline in such assessments.

The report pointed out that excessive auditing can lead to "fatigue" and "inefficiencies" within supply chains.

Local apparel exporters echoed this concern, stating that the same auditors often conduct multiple audits throughout the year, collecting duplicate information for different buyers. This repetition, they said, disrupts production and incurs unnecessary costs.

Social audits play a key role in identifying labour and human rights risks and ensuring suppliers meet global or company-specific standards for ethical labour and supply chain practices.

The Better Work programme, a joint initiative of the International Labour Organization (ILO) and the International Finance Corporation (IFC), collaborates with governments, employers, workers, and global brands to improve labour conditions and boost competitiveness in the garment sector.

Launched in Bangladesh in 2015, the programme currently includes around 490 factories, benefiting approximately 1.3 million workers—51 per cent of whom are women—according to BWB Team Lead Syed Fazle Niaz.

Nasrin Akter, a senior operator and president of the Babylon Garments Workers Union, told The Financial Express that workers communicate their demands through the union, which negotiates with factory management.

She cited the recent announcement of a 10-day Eid-ul-Adha holiday on May 12, which came after workers requested the time off—two weeks before the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) issued similar guidance to its members.

Aziz emphasised Babylon’s commitment to fair labour practices, supported by a strong governance structure that encourages open dialogue in the workplace.

He noted that the BWB programme’s capacity-building initiatives have helped trade union leaders improve their critical thinking, debating, and listening skills—enhancing communication and ensuring better representation of worker interests.

Mr Niaz added that trade unions play a vital role in allowing workers to voice concerns democratically, ultimately contributing to long-term business sustainability.​

 

[Saif]

Budget a bit optimistic for garment sector: BGMEA

The Bangladesh Garment Manufacturers and Exporters Association welcomed the Tk 7.9 lakh crore national budget for FY 2025–26, acknowledging its focus on inclusive and sustainable development amid a post-political transition landscape...

www.newagebd.net

Budget a bit optimistic for garment sector: BGMEA
Staff Correspondent 03 June, 2025, 00:24

The Bangladesh Garment Manufacturers and Exporters Association welcomed the Tk 7.9 lakh crore national budget for FY 2025–26, acknowledging its focus on inclusive and sustainable development amid a post-political transition landscape.

In a statement issued by BGMEA administrator Anwar Hossain on Monday, the trade body praised the emphasis on education, health, good governance, job creation, and preparation for LDC graduation.

He said that the proposed 6.5 per cent inflation target and no increase in electricity prices were positive for low-income workers and industries.

Moreover, the VAT exemptions on LNG imports and reduced duties on petroleum and diesel are expected to cut production costs.

BGMEA also lauded allocations for women entrepreneurs (Tk 125 crore), blue economy research (Tk 200 crore), climate risk mitigation (Tk 100 crore), and youth entrepreneurship (Tk 100 crore).

The RMG sector, accounting for 84 per cent of exports, is under pressure from global challenges, including US tariffs, India’s transshipment suspension, high bank interest rates, and utility price hikes.

In this context, BGMEA appreciated the decision to keep source tax and corporate tax for exporters unchanged.

Moreover, they also applauded several reforms simplifying the bond and customs system, such as extended general bond renewal terms, revised penalties, and tariff exemptions for key machinery for EPZs.

However, BGMEA expressed disappointment that some proposals, like full VAT exemptions for RMG-related services and smoother HS code and bonded operations, were not included.

The association emphasised the need for continued support to safeguard the livelihoods of 4 million people tied directly and indirectly to the industry.​