[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Textile units to remain closed

Textile millers will keep their production units closed due to the prevailing volatile situation in the country.

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Textile units to remain closed

Textile millers will keep their production units closed due to the prevailing volatile situation in the country.

Bangladesh Textile Mills Association (BTMA), which represents the $25 billion primary textile sector, announced the decision in a statement yesterday.

The decision came because of the deteriorating law and order situation in the country and the government's declaration of a three-day holiday from today, the BTMA said.

"The decisions on reopening the mills will be made based on the situation and further declarations from the government," it said.

The BTMA member mills were also shut down for four days two weeks ago due to violence and a subsequent curfew imposed by the government to rein in violence.

The trade body reported that its members lost $58.8 million during the initial four-day closure caused by the violence and curfew.​

 

[Saif]

Garment factories shut down for indefinite period

Out of fear of vandalism and subsequent losses amid the current spell of violence, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) yesterday instructed all the factory owners to keep their units shut until further notice.

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Garment factories shut down for indefinite period

A sign on the wall of a garments unit states that the facility is closed due to the imposition of an indefinite curfew by the government because of heightened unrest around the country on the first day of a non-cooperation movement called by students. Photo: Anisur Rahman

Out of fear of vandalism and subsequent losses amid the current spell of violence, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) yesterday instructed all the factory owners to keep their units shut until further notice.

The garment exporters' platform circulated the message among the members through WhatsApp, said Md Ashikur Rahman Tuhin, a director of the BGMEA.

This is yet another blow to the sector as the apparel factories were shut down for four days during the first round of violence two weeks ago though this is the peak season for Christmas shipments and taking work orders for the next summer and spring seasons.

During the violence in mid-July, the exporters could not communicate properly with their business partners abroad because of an internet blackout.

Exporters now fear mounting losses as export performance had already been poor over the last two years because of the severe fallout of Covid-19 pandemic, Russia-Ukraine war, runaway inflation in the Western world, Red Sea crisis and a labour unrest at home.

Amid violence across the country, majority of garment factories were shut down yesterday on the first day of a countrywide non-cooperation movement called by the organisers of Anti-Discrimination Student Movement.

At least 73 people, including 14 policemen, were killed and dozens injured yesterday as fierce clashes took place in different areas in Dhaka and other parts of Bangladesh.

More than 400 garment factories in Narayanganj, Narayanganj BSCIC and Fatullah areas were closed though many of the units ran for some time in the morning.

Some factories were operational in Rupganj and Araihazar areas of Narayanganj district, said Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

Also, almost all the factories in Ashulia, Savar, Maona, Tongi and Chattogram had started production in the morning, but after a few hours the student protests began and some factories were vandalised, leading to the closure of the units.

At least six garment factories were vandalised in Narayanganj BSCIC and its adjacent areas, Hatem said, adding that fearing further escalation of the vandalism, the other factory owners have shut down their units.

Hatem confirmed that the workers left their workplaces peacefully after the shutdown.

"We will sit in meetings soon with the owners, the government and other high-ups on how to run our factories," Hatem said, adding that they will monitor the situation at least for two days.

Factories in Konabari and Kashimpur under Gazipur district were shut down although those were opened in the morning, said Arshad Jamal Dipu, vice-president of the BGMEA.

The factories were shut down anticipating violence, he said but could not confirm how many factories were closed.

He said the factory owners are fearing a shutdown of internet again as two weeks ago they suffered a lot and lost business because of the internet blackout. Exporters could not communicate online with their foreign retailers and brands.

Moreover, this is the time for bond renewal of the export-oriented garment factories and already seven factories have complained to him that they cannot renew the bond licences because of the current crisis, Dipu also said.

The owners are also facing trouble in garment shipment and import of raw materials, he added.

Md Towhidur Rahman, president of Bangladesh Apparel Workers Federation, confirmed that all the garment factories in Kaliakoir area have been shut down by the owners fearing escalation of unrest in the sector.

The owners announced closure to save their factories and other assets, he said.

Nazma Akter, president of Sammilito Garment Sramik Federation, a workers' platform, said that the BGMEA leaders held a meeting with the union leaders on Saturday and asked them to be more responsible during the crisis so that the garment factories could remain safe.

The owners are announcing closure of the factories fearing spread of violence in the sector, she said.

The garment exporters fear that if their workers join the ongoing movement across the country, it will further dent the sector, which was hamstrung for four days when factories were completely shuttered due to violence in mid-July.

The sector also suffered serious repercussions because of a five-day internet blackout, which hindered communications between garment suppliers and international retailers and brands, meaning they could not make business deals or hold meetings.

Last week, international retailers and brands expressed concern at a meeting with the leaders of the BGMEA, flagging the difficulties in communication with their headquarters and local suppliers.

The months of July, August and September comprise the peak season for both shipment of goods for next Christmas and also for booking the work orders from the international retailers and brands for the next summer and spring seasons.

The BGMEA has already said they have incurred losses of Tk 6,400 crore because of the shutdown and internet blackout, while the losses estimated by Bangladesh Textile Mills Association stand at $58.8 million.​

 

[Saif]

RMG exporters expect new vigour in business

Garment exporters are expecting a strong recovery in exports and business as normalcy is being gradually restored with the changing political scenario.

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RMG exporters expect new vigour in business

Garment exporters have lost Tk 6,400 crore due to the recent unrest and shutdown of factories, said Bangladesh Garment Manufacturers and Exporters Association. Photo: Star/file

Garment exporters are expecting a strong recovery in exports and business as normalcy is being gradually restored with the changing political scenario.

The business environment was facing an impasse because of the latest spells of violence and frequent shutdown of factories, for which they were unable to manufacture goods for export.

Exporters also said, though July, August and September comprise the peak season for shipping goods meant for Christmas and for booking work orders for the coming summer and spring seasons, they were facing challenges in sending goods to retailers through Chattogram port amid violence.

They were also unable to communicate with their business partners both at home and abroad because of the recent internet blackout across the country and for the violence.

The apparel manufacturers are now planning to reopen their production units and to restart with a new vigour as they have been facing shutdowns, difficulties in transportation and shipment of goods over more than one month because of the political crisis.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) called a meeting yesterday at 7:30pm to discuss the next course of action as the prime minister resigned, said a director.

They decided that the garment factories and textile mills will stay shut for now considering the current situation. The owners may take a decision on factory reopening today.

They had earlier shut down their units two weeks ago for four days amidst violence and curfew. During the first round of shutdown, they could not even communicate with their international clothing retailers and brands because of an internet blackout across the country.

Because of the latest spell of student movement and political impasse, the BGMEA has already said they have lost Tk 6,400 crore while the textile millers said the amount of their loss is more than $58.8 million.

The garment and textile millers have shut down their production units across the country fearing labour unrest and vandalism, which will cause a massive loss for the sector.

During the first round of violence and curfew, the international clothing retailers and brands expressed concern over the situation as they were facing difficulties in placing work orders with factories and receiving shipments of goods from Chattogram port.

"We mainly discussed the issue of reopening the factories. However, we may take more time to reopen the factories considering the change in the political situation," said BGMEA Vice-President Arshad Jamal Dipu over the phone.

"We want to restart production in the factories very soon. But we need help from the administration for the smooth running of the units as their instructions are important for us," Dipu added.

Also, it recently became difficult to do business and international trade because this is the time to renew bond licences but many, especially the Chattogram-based exporters, are complaining that the customs department is not renewing the bond licences.

Many have been forced to adopt expensive air shipments because of delays in production and transportation of goods to the factories.

Also, many have been forced to provide discounts and accept cancellation of work orders from international retailers and brands because of the latest spells of violence and curfew.

Banks are charging a higher interest rate on loans, he said, adding that all these things are affecting business and all those issues need to be broadly discussed with the trade bodies and administration soon for resolving the issues.

"We have to work seriously now," Dipu also said.

"I hope everything will change now and business will soon be restored," said a garment exporter asking not to be named.

The work orders from international retailers and brands will also be restored soon as normalcy has also started to return, the exporter added.

"We are getting ready to reopen our factories as soon as possible," said a director of the BGMEA asking not to be named.​

 

[Saif]

Yunus urges RMG industry to aid in rebuilding economy

Nobel laureate Muhammad Yunus, chief adviser to the interim government, called on the country’s garment manufacturers on Wednesday to support the rebuilding of Bangladesh after 15 years of economic plunder under the dictatorship of Sheikh Hasina....

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Yunus urges RMG industry to aid in rebuilding economy
United News of Bangladesh . Dhaka 14 August, 2024, 20:42

| BSS photo.

Nobel laureate Muhammad Yunus, chief adviser to the interim government, called on the country’s garment manufacturers on Wednesday to support the rebuilding of Bangladesh after 15 years of economic plunder under the dictatorship of Sheikh Hasina.

Speaking to the leaders of the Bangladesh Garment Manufacturers and Exporters Association at the State Guest House Jamuna, Yunus emphasised the challenges inherited by the interim government. ‘All the institutions were broken. We were in a mess. They left us in an economic crisis. But with the cooperation of everyone we can rebuild the nation,’ he said, according to a statement from the Chief Adviser’s Office.

BGMEA acting president Khandoker Rafiqul Islam led the delegation in the meeting, where the Nobel laureate highlighted the urgency of the situation. The country cannot afford to fail, he said. ‘Else, its impact will be disastrous. The nation may face an existential crisis,’ he warned.

Yunus also urged the manufacturers to keep their businesses separate from politics. ‘You should send a clear signal that you won’t mix business with politics. It does not help any cause,’ he advised.

Reflecting on the recent student-led revolution, which he described as ‘unprecedented in human history,’ Yunus noted the responsibility placed on the interim government. ‘They have put their trust in us. I was abroad when they called me and urged me to take up the leadership,’ he shared.

The BGMEA leaders expressed their full support for Yunus’s leadership during this critical time for the nation. They requested the formation of a task force to address sector-specific challenges, aiming to restore international buyers’ confidence in Bangladesh. Their demands included relaxed debt repayment terms and adjustments to utility bill payments.

The chief adviser listened to their concerns and promised to address them. ‘We will ensure transparency at every stage. The Bangladeshi people have immense talents. Bangladesh is the world’s second-largest garment exporter. We want it to grow further,’ he stated.

After the meeting, BGMEA director Shovon Islam spoke to reporters, expressing optimism about the future under Yunus’s leadership. As Yunus took charge of the interim government, buyers across the globe are gaining confidence in Bangladesh, he said. ‘We want to utilise that confidence and increase work orders.’

He also outlined the short-term and long-term needs of the industry, including the formation of a task force to address ongoing challenges. ‘We requested him to form a task force with all stakeholders so that it could play a long-term role,’ Shovon Islam added.

He further mentioned the BGMEA’s need for assistance in securing power and addressing liquidity issues, to which Yunus responded positively. ‘In reply, the chief adviser told us he would help us,’ he confirmed.​

 

[Saif]

Bangladesh’s RMG export to EU drops in Jan-June

Bangladesh’s apparel exports to the European Union in the first half of 2024 declined by 4.98 per cent to 8.72 billion euros compared with those of 9.18 billion euros in in the same period of 2023, according to data from the Eurostat, statistical office of the European Union, released on Saturday...

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Bangladesh’s RMG export to EU drops in Jan-June
Moinul Haque 18 August, 2024, 22:40

A file photo shows workers sewing clothes at a readymade garment factory in Narayanganj recently. Bangladesh’s apparel exports to the European Union in the first half of 2024 declined by 4.98 per cent to 8.72 billion euros compared with those of 9.18 billion euros in in the same period of 2023, according to data from the Eurostat, statistical office of the European Union, released on Saturday. | New Age photo

Bangladesh’s apparel exports to the European Union in the first half of 2024 declined by 4.98 per cent to 8.72 billion euros compared with those of 9.18 billion euros in in the same period of 2023, according to data from the Eurostat, statistical office of the European Union, released on Saturday.

Exporters said that global challenges had impacted all major exporting countries, including Bangladesh.

However, Bangladesh has been more severely affected due to the erosion of its competitive advantages, driven by high utility prices, poor gas supply and recent wage hike, they said.

Although the country’s knitwear exports to the EU decreased by 8.58 per cent in January-June of 2024, the shipment of woven garments witnessed a slight increase by 0.28 per cent to 3.74 billion euros from 3.73 billion euros, the data showed.

Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that global challenges impacted all major apparel exporting countries.

He said that Bangladesh had been severely affected due to the erosion of its competitive advantages, driven by high utility prices, shortage of gas and wage hike.

Citing the current situation of the country, Fazlul said, ‘Buyers rarely announce their decisions to shift or cancel work orders outright. Instead, they gradually redirect their orders elsewhere to mitigate business risks.’

He said that one of his buyers was scheduled to place an order for the next season at the end of July, adding, ‘I didn’t receive that order, which means it was likely diverted to other destinations.’

However, Fazlul expressed hope that the exports would recover in the coming months if the political situation stabilised.

The readymade garment imports by the EU from different countries in January-June of 2024 fell by 6.03 per cent to 38.47 billion euros compared with those of 40.94 billion euros in the same period of 2023.

Data showed that the overall reduction of 4.98 per cent in Bangladesh’s apparel exports was slightly better than the global average decline of 6.03 per cent in the EU’s apparel imports.

The Eurostat data showed that apparel imports by the EU from China in the first half of 2024 declined by 7.23 per cent to 9.16 billion euros compared with those of 9.88 billion euros in the same period of past year.

Although China remained as the top apparel exporter to the EU in value, the European Union’s official data showed that Bangladesh obtained the top position in exporting knitwear to the 27 nation economic bloc in January-June of 2024.

Bangladesh’s knitwear exports to the EU in in the first half of 2024 stood at 4.98 billion euros while those of China were 4.51 billion euros.

Bangladesh’s woven garment exports to the EU in January-June of 2024 stood at 3.74 billion euros against China’s exports of 4.65 billion euros in the period.

Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that long lead times were a major factor causing Bangladesh to lag behind its competitors.

The ongoing power and gas crises have hindered manufacturers from utilising their full production capacity and created challenges in procuring raw materials on time, leading to delays of additional 20-25 days in producing goods and making shipments, he said.

Hatem also said that Bangladesh had experienced negative growth not only on the EU market but also in the US and UK.

He mentioned that while Export Promotion Bureau data might have showed growth, the reality told a different story.

Apparel imports of the EU from Turkey in the first half of 2024 declined by 10.95 per cent to 4.59 billion euros compared with those of 5.15 billion euros in the same period of 2023, the EU data showed.

India’s RMG exports to the EU in the first half of 2024 fell by 4.53 per cent to 2.32 billion euros compared with those of 2.43 billion euros in the same period of the previous year.

Apparel imports of the EU from Vietnam in January-June of 2024 fell by 6.16 per cent to 1.70 billion euros compared with those of 1.81 billion euros in the same period of 2023.​

 

[Saif]

RMG supply chain disrupted by flood

The country’s apparel makers on Saturday said that the recent flooding had disrupted the readymade garment sector supply chain by submerging the Dhaka-Chattogram highway and sought alternative routes for transportation of goods in time of any natural calamities...

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RMG supply chain disrupted by flood
Staff Correspondent 25 August, 2024, 00:16

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

The country’s apparel makers on Saturday said that the recent flooding had disrupted the readymade garment sector supply chain by submerging the Dhaka-Chattogram highway and sought alternative routes for transportation of goods in time of any natural calamities.

They urged the government to arrange for exporting containers via the Pangaon port due to the flooding on the Dhaka-Chattogram highway, saying that the alternative route was crucial to meeting export deadlines.

Exporters also recommended using the Mongla Port as a backup to avoid further disruptions at the Chattogram port.

‘There is no doubt that the flooding will impact the timely shipment of readymade garment products, with the transportation through the Dhaka-Chattogram highway remaining suspended. However, we are uncertain about the overall impact this natural calamity will have on our business operations,’ former Bangladesh Garment Manufacturers and Exporters Association president Faruque Hassan told New Age.

Transportation will most likely resume tomorrow or the day after, but exporters will still face delays in meeting lead times, he said.

Faruque expressed hope that buyers would take the situation into account, as the natural calamity is an unavoidable circumstance.

He, however, recommended enabling alternative shipment routes through the Mongla port to avoid any unforeseen disruptions at the Chattogram port.

Faruque also suggested that the Pangaon river port be prepared for sending export containers to the Chattogram port.

Bangladesh Knitwear Manufacturers and Exporters association executive president Mohammad Hatem said that the flood had disrupted the supply chain of the readymade garment sector, with both the shipment and release of containers halted since August 22 due to the Dhaka-Chattogram highway being submerged.

He urged the government to make immediate arrangements for sending export containers to the Chattogram port via the Pangaon port in the River Buriganga so that exporters could maintain export deadlines.

Hatem said that after a month-long disruption caused by the student movement in the country, exporters had just begun clearing the backlog of shipments and releasing import consignments but the sudden flood had created a new challenge, hindering business momentum.

He claimed that global buyers had already begun pressuring suppliers to use air cargo for shipments to ensure timely delivery to their stores.

Hatem mentioned that exporters would have to cover the cost of air freight, which would amount to at least 50 per cent of the total value.

BGMEA president Khandoker Rafiqul Islam said that export and import business through the Chattogram Port was hampered as the Dhaka-Chattogram highway remained submerged.

After a month-long disruption caused by the nationwide student movement, business had just begun to rebound, but the sudden flooding has dealt a new blow, he said.

The BGMEA president hoped that the goods transportation on the Dhaka-Chattogram highway would resume today and that normalcy would soon be restored.​

 

[Saif]

Circular textiles lack policy, Bangladesh forgoes $5b in exports a year: study

The absence of a comprehensive policy framework for circular textiles, which would incentivise the recycling of post-industrial textile waste known as jhut, is causing Bangladesh to forgo $5 billion in potential annual export revenues from recycled textile products, according to a recent study...

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Circular textiles lack policy, Bangladesh forgoes $5b in exports a year: study
Moinul Haque 26 August, 2024, 22:28

A file photo shows workers sewing clothes at a readymade garment factory in Narayanganj recently. The absence of a comprehensive policy framework for circular textiles, which would incentivise the recycling of post-industrial textile waste known as jhut, is causing Bangladesh to forgo $5 billion in potential annual export revenues from recycled textile products, according to a recent study. | New Age photo

The absence of a comprehensive policy framework for circular textiles, which would incentivise the recycling of post-industrial textile waste known as jhut, is causing Bangladesh to forgo $5 billion in potential annual export revenues from recycled textile products, according to a recent study.

The study titled ‘Regulatory framework to enable recycling of post-industrial waste (jhut) for the RMG industry in Bangladesh said that to harness its potential for innovation and industrial advancement through the circular economy, Bangladesh’s textile industry must formalise the informal jhut sector, though political economy challenges have impeded an inclusive and just transition.

The study estimated that Bangladesh’s current annual recycling capacity for apparel-grade yarns was between 18,000 and 24,000 tonnes, which represented only about 5-7 per cent of the 3,30,000 to 5,00,000 tonnes of 100 per cent cotton and cotton-elastane waste produced each year.

It said that less than 5 per cent of this waste was upcycled into products like rag rugs, rag dolls, and blankets and a substantial portion — over 55 per cent — was exported to recycling companies worldwide, while the remaining waste was downcycled into stuffing materials for cushions and mattresses, incinerated onsite for energy recovery, or, in negligible amounts, sent to landfills.

The study was jointly conducted by the Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and H&M under the programme for sustainability in the textile and leather sector.

The report outlined measures and regulatory reforms necessary to establish an effective management framework for jhut aiming to maximise economic, social, and environmental benefits within Bangladesh’s jhut supply chain.

It recommended collaborative stakeholder engagement, protection of workers’ rights and safety, promotion of circular textile economy practices, and capacity building and technology adaptation to transform the jhut sector.

The report also outlined a number of key policy solutions for the informal jhut sector that include improving data availability, transparency and traceability through a national jhut database, introducing industry guidelines for jhut management and recycling standards and revising value-added tax and tariff rules for jhut transactions.

It also suggested providing economic incentives to formalise jhut collection, handling and sorting, establishing central depository systems and cluster-based sorting hubs to promote decent work and social inclusion and enhancing the investment environment for advanced recycling technologies.

Current disposal methods result in severe environmental impacts, such as air pollution, resource depletion, and harmful chemical leaching, which pose significant threats to ecosystems and public health, the report mentioned.

The survey pinpointed key challenges in Bangladesh’s recycling industry including sorting jhut, timely disposal, boosting productivity and minimising waste through improved design.

It also identified potential threats if factory owners implement jhut recycling strategies on their own premises.

Potential threats to jhut recycling include political restrictions, general pressures, increased scrutiny, internal recycling disruptions and intimidation from those benefiting from the status quo.

Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association, said that the textile industry in Bangladesh had begun recycling and it would yield very positive results in the near future.

‘We lack core raw materials like cotton and petrochemicals, but strengthening our recycling industry could reduce import costs and create a robust backward linkage industry for the country,’ he said.

Faruque said that sorting jhut was a major challenge due to a lack of trained personnel, though the sector had already provided training to many with support from GIZ and H&M.

He also highlighted the importance of establishing jhut collection points for the industry’s transition, mentioning that the BGMEA proposed this but implementation has been stalled due to political reasons.

‘In the global context, an evolving narrative around sustainability in the textile sector is shaping the operations and strategies of major brands. A pronounced push towards integrating circularity in value chains is evident, with entities such as H&M and GIZ at the forefront of these initiatives,’ the report said.

Regulatory bodies, particularly in the European Union, are moving towards stricter mandates and introducing extended producer responsibility requirements, it mentioned.

The study suggested that this global shift offered Bangladesh a chance to boost trade through sustainability goals and create formal employment by formalising the jhut sector and adopting circular economy models.

To transform the report recommended for the enhanced collaboration among government bodies, manufacturers, non-government organisations and recycling companies is essential for developing sustainable infrastructure, adopting innovative technologies and establishing efficient waste management systems.

It also suggested that enforcing existing labour laws and introducing new regulations are crucial to protecting workers’ rights and safety in the jhut recycling industry, including upholding health and safety standards, eliminating child labour and addressing gender-based issues.

The study also recommended that brands and suppliers should adopt recycled materials in their products to set sustainability standards, reduce waste, boost consumer demand for eco-friendly goods, and drive innovation and market growth for recycled textiles.​

 

[Saif]

Exports fell in FY24 for lower woven, knitwear shipments

Bangladesh’s overall exports fell 4.34 percent year-on-year in FY24 due to lower shipments of ready made garments (RMG), reflecting sluggishness in industrial activities and the economy.

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Exports fell in FY24 for lower woven, knitwear shipments

Bangladesh's overall exports fell 4.34 percent year-on-year in FY24 due to lower shipments of ready made garments (RMG), reflecting sluggishness in industrial activities and the economy.

The country's export receipts amounted to $44.47 billion in the previous fiscal while it was $46.49 billion in FY23, according to data released by the Bangladesh Bank on Tuesday.

The central bank said it compiled the export figures provided by the National Board of Revenue (NBR).

The Export Promotion Bureau (EPB) is yet to publish the export data for the entirety of FY24.

In July, the agency under the Ministry of Commerce informed that it would refrain from updating statistics for three months to ensure accurate reporting.

It decided to do so after the central bank released data on the country's balance of payments (BoP), which showed a $14 billion gap compared to the EPB's statistics.

In the latest BoP, the Bangladesh Bank said export value, which is calculated on a Free on Board (FoB) basis for the BoP, stood at $40.8 billion in FY24, down by nearly 6 percent year-on-year.

When products are shipped on a FoB basis, the liability and ownership of the goods lies with the buyer.

The central bank added that the FoB has been adjusted with shipments from the Export Processing Zones (EPZ) in Bangladesh.

When comparing the FoB data to the export data, a gap of $3.66 billion is seen.

A senior official of the Bangladesh Bank said this is because they don't use the FoB method when counting overall exports.

"That's why there has always been a gap between the export statistics used in BoP and overall exports," the official added.

Khandoker Rafiqul Islam, newly elected president of the Bangladesh Garment Manufacturers and Exporters Association, said their exports to both Europe and the US are in the negative as per internal data.

"Business slowed after the beginning of the Russia-Ukraine war as sluggish demand in the West led to stockpiling of previously shipped goods. So, buyers cut back on purchases," he added.

The export data compiled by the Bangladesh Bank showed that exports of woven garments dropped 5.36 percent year-on-year to $16.86 billion in FY24.

Knitwear, the biggest export earner, accounted for 44 percent of total receipts. However, it also posted a 5.35 percent decline to $19.26 billion.

Islam said buyers usually place orders during the months of July and August, but this time they became cautious due to the political changeover stemming from a recent mass uprising.

"The good thing is that we see development," he said, informing that queries from prospective buyers have increased as their previous stocks have reduced.

"So, if the situation returns to normal, exports will likely become positive this year," Islam added.

Central bank data showed that of the top 10 exporting sectors, only three -- agricultural products, chemicals and plastic -- recorded export growth.

Plastic exports registered the highest growth followed by agricultural items and chemicals.

"The government allowed exports of aromatic rice for some days. This is one of the main reasons that exports of agricultural products grew," said Eleash Mridha, managing director of PRAN Group.

He added that freight costs, which soared in the wake of the Russia-Ukraine war, have gradually declined.

"However, the Red Sea crisis is still affecting shipments. But as global commodity prices remain low, exports may grow this fiscal too," Mridha added.

Home textile exporters saw the biggest fall in shipments at 24 percent followed by leather and leather products at around 12 percent and frozen and live fish at 11 percent.

Exports of home textiles, the fourth largest item in the country's export basket, brought home $782 million in FY24 compared to $1.08 billion in FY23.

Leather and leather products, the third biggest export item, recorded $1.03 billion in export earnings last year. It brought in $1.17 billion in FY23.

Arifur Rahman, general manager of ABC Leather Ltd, said the war affected demand for leather products, especially in Europe. However, the demand in Japan remains unchanged.

Meanwhile, the demand for artificial footwear is rising as they are comparatively cheaper than leather shoes, Rahman added, citing that the price of leather shoes ranges between $18 and $22 whereas a pair of artificial ones costs just $3 to $10.​

 

[Saif]

Army, police to start joint operation tonight to safeguard RMG factories

The Bangladesh Army, police and industrial police will start a joint operation in Savar, Ashulia and Gazipur areas tonight to safeguard the ready-made garment (RMG) industries. Home Affairs Adviser Lieutenant General (retd) M Jahangir Alam Chowdhury has issued such a directive. BGMEA President Kh

thefinancialexpress.com.bd

Army, police to start joint operation tonight to safeguard RMG factories
BSS
Published :
Sep 02, 2024 21:03
Updated :
Sep 02, 2024 21:03

The Bangladesh Army, police and industrial police will start a joint operation in Savar, Ashulia and Gazipur areas tonight to safeguard the ready-made garment (RMG) industries.

Home Affairs Adviser Lieutenant General (retd) M Jahangir Alam Chowdhury has issued such a directive.

BGMEA President Khandaker Rafiqul Islam told reporters after a meeting of the BGMEA and BKMEA with the home affairs adviser this afternoon at the Bangladesh Secretariat.

Earlier today, workers seeking jobs were protesting at Ashulia by blocking the Nabinagar-Chandra and Baipail-Abdullahpur roads, demanding equal employment opportunities for men and women in RMG factories, among other demands.

The workers gathered in front of various factories along the Dhaka EPZ and Baipail-Abdullahpur roads to begin their demonstration for employment this morning.

At one point, the protesting workers placed barricades at various points on the Nabinagar-Chandra and Baipail-Abdullahpur roads.

They started throwing bricks and stones at the factories, causing severe traffic congestion. A good number of factories in the area were forced to declare a holiday amid the protests.

Meanwhile, the industrial police and army members managed to clear the Baipail-Abdullahpur road of barricades.​

 

[Saif]

All RMG factories set to resume operations on Thursday with enhanced security measures

All garment factories across the country will reopen on Thursday, following assurances of enhanced security measures by law enforcement agencies. A coordinated effort involving various security forces, including the army, police, and industrial police, will begin on Wednesday night to ensure the sa

thefinancialexpress.com.bd

All RMG factories set to resume operations on Thursday with enhanced security measures
FE ONLINE REPORT
Published :
Sep 04, 2024 19:32
Updated :
Sep 04, 2024 22:50

All garment factories across the country will reopen on Thursday, following assurances of enhanced security measures by law enforcement agencies. A coordinated effort involving various security forces, including the army, police, and industrial police, will begin on Wednesday night to ensure the safety of industrial zones.

As many as 167 readymade garment factories in the industrial belts of Ashulia, Savar and Gazipur failed to operate on Wednesday due to workers' unrest, mostly instigated by outsiders.

On Tuesday, at least 126 garment factories suspended operation while another 100 were forced to close on Monday over unrest.

Bangladesh Garment Manufacturers and Exporters Association President Khandoker Rafiqul Islam made the announcement at a press conference held on Wednesday at the trade body's headquarters in Uttara in the city.

Before the conference, the BGMEA leaders held a meeting with factory owners and top officials from law enforcement agencies.

Former BGMEA presidents AK Azad, Dr Rubana Huq, Anwarul Alam Chowdhury, Anisur Rahman Sinha, Kutub Uddin Ahmed and Gulam Quddus, among others, were also present during the meeting.​

 

[Saif]

RMG export to US falls in Jan-July

Bangladesh’s apparel exports to the United States in January-July of 2024 witnessed a significant fall both in value and volume while the other competing countries, such as China and Vietnam, performed well in the market...

www.newagebd.net

RMG export to US falls in Jan-July
Staff Correspondent 05 September, 2024, 22:37

A file photo shows workers sewing clothes at a readymade garment factory in Narayanganj recently. Bangladesh’s apparel exports to the United States in January-July of 2024 witnessed a significant fall both in value and volume while the other competing countries, such as China and Vietnam, performed well in the market. | New Age photo

Bangladesh’s apparel exports to the United States in January-July of 2024 witnessed a significant fall both in value and volume while the other competing countries, such as China and Vietnam, performed well in the market.

The country’s apparel exports to the US, the largest export destination for Bangladesh, declined by 10.27 per cent to $4.10 billion in the first seven months of 2024 compared with that of $4.57 billion in the same period of 2023, according to the data released by the Office of Textiles and Apparel under the US Department of Commerce.

In terms of volume, Bangladesh exported 1.33 billion square metres of apparel from January to July period of 2024, a 4.55-per cent decrease from 1.39 billion square metres exported during the same period of the previous year.

Exporters said that the US buyers decreased their orders in Bangladesh due mainly to long shipment time.

Due to a shortage of gas and electricity, as well as complexities in banking and customs procedures, the shipment of export goods has been delayed, they said.

Negative growth in apparel export earnings from the US market persisted, as the underlying issues remained unresolved, Bangladesh Knitwear Manufacturers and Exporters Association president Mohammad Hatem told New Age on Thursday.

He said that the persistent shortages of gas and electricity, combined with the complexities of opening letters of credit with banks and delayed customs procedures, were continuing to cause shipment delays and adversely affected overall export performance.

Hatem, however, hoped that the apparel exports to the market would get momentum in the coming months as the interim government was working to improve the situation.

The OTEXA data showed that overall US apparel imports declined by 4.65 per cent to $43.63 billion in the first seven months of 2024, down from $45.76 billion in the same period of 2023.

Apparel imports by the US from China in January-July period of 2024 declined by 4.22 per cent to $8.76 billion from $9.14 billion in the same period of the previous year.

Vietnam’s apparel exports to the US totalled at $8.09 billion in the first seven months of 2024, reflecting a 1.54-per cent year-over-year decrease, according to the data.

The OTEXA data, released on Wednesday, showed that Bangladesh’s position remained unchanged as the third-largest apparel exporter to the US market with 9 per cent share while China and Vietnam occupied the first and the second highest positions with 21.09 per cent and 18.54 per cent share respectively.

The OTEXA data revealed that the US apparel imports from Cambodia grew by 5.96 per cent to $1.91 billion in January-July 2024 compared with that of $1.8 billion in the same period in 2023.

In the first seven months of 2024, India’s readymade garment exports to the US market decreased by 2.21 per cent to $2.85 billion.

Meanwhile, Indonesia saw a decline of 7.86 per cent, with exports totalling at $2.28 billion during the same period.​

 

[Saif]

RMG work orders shifting to India amid unrest in BD

A latest spate in labour unrest in Bangladesh's readymade garment factories prompted global apparel brands to shift work orders to neighbouring India. The unrest follows Sheikh Hasina government's fall in a student movement. Factory owners and labour leaders allege that the unrest, apparently cre

thefinancialexpress.com.bd

RMG work orders shifting to India amid unrest in BD
Monira Munni
Published :
Sep 06, 2024 09:21
Updated :
Sep 06, 2024 09:21

A latest spate in labour unrest in Bangladesh's readymade garment factories prompted global apparel brands to shift work orders to neighbouring India.

The unrest follows Sheikh Hasina government's fall in a student movement.

Factory owners and labour leaders allege that the unrest, apparently created at the instigation of outsiders, has forced hundreds of their units to close for the last couple of days.

As a result, the buyers were reportedly shifting their orders to India, they said.

In addition to the closed ones, hundreds of garment factories suspended their operations for the last four days, beginning from Monday over the worker protests.

The Economic Times of India on Thursday reported that the Tiruppur knitwear export hub has swung export orders worth 4.50 billion rupees in the last two weeks from Bangladesh due to the political unrest there.

Quoting KM Subramanian, president of Tirupur Exporters' Association (TEA), it also noted that global apparel brands like KiK from Germany, Zeeman from Netherlands, and Pepco of Poland, among others, placed orders to be delivered before the Christmas and New Year and the average price of the garment ordered is to the tune of $3.0 per piece.

According to another report by Times of India, Raymond Ltd Chairman and Managing Director Gautam Singhania said on Tuesday last that the company has been receiving "massive inquiries" for garments supply after the political crisis erupted in Bangladesh over the last two months.

"Bangladesh has no fabric capacity... Fabric goes from India to Bangladesh. With the current crisis in Bangladesh, if a customer comes to us, we are giving them integrated supply, both the fabric and the garment, thus saving time.

"The perception has changed against Bangladesh. This is the time when we are getting massive inquiries. We invested 2.0 billion rupees last year to increase our capacity, which has come online and is available," the report quoted Singhania.

Global Data, a leading data and analytics company, on August 19 revealed that the ongoing political and economic instability in Bangladesh, a global hub for textile and apparel manufacturing, became the focal point of discussion among the industry experts and influencers on social media platform "X".

Influencers highlight that the disruption in Bangladesh's textile sector offers India a chance to capitalise on the potential shift in global apparel manufacturing.

They believe India's market share in apparel exports could increase as global brands seek to diversify their supply chains, revealed the Social Media Analytics Platform of Global Data.

GlobalData's Social Media Analytics Platform captured a few popular influencer opinions in this regard.

"Someone's crisis is someone else's opportunity. Bangladesh has been a major exporter of textiles. Now that Bangladesh is going through huge instability, India should make use of the opportunity to bring that business to our country. More so, Tamilnadu should use this opportunity as the state with the number one share of textile exports," GlobalData statement quoted D Muthukrishnan, a certified financial planner.

"India's market share in apparel exports has been 3.0 per cent for a long time. Disruption in Bangladesh along with wage revision is making global labels think of diversification… Lot of Indian companies could be benefitted inking term," it quoted Gurmeet Chadha, chief investment officer at Complete Circle Wealth.

"Bangladesh's loss (textiles) will be Bihar's gain," said Saurav Jha, founder and director of Delhi Defence Review.

Prashant Nair deputy executive editor at CNBC-TV18 was quoted as saying: "A quick point on textile stocks rallying - while the Bangladesh situation may benefit Indian mills. I reckon it will be a temporary bump. Textile exports are Bangladesh's mainstay. Whoever takes charge won't let it slip."

Shreyasee Majumder, Social Media Analyst at GlobalData, commented: "Influencers express a mix of optimism and caution regarding the potential benefits for India's apparel industry amid the Bangladesh's textile sector disruptions."

There is a widespread perception that this is a promising short-term opportunity, predicting a rally in textile stocks and an increase in India's market share, she said.

Many believe that Bangladesh, given the critical importance of textiles to its economy, will prioritise restoring its industry, potentially reclaiming its position sooner than anticipated, she added.​

 

[Saif]

RMG unrest will hurt exports and industrial output

Govt must prevent further disruptions, minimise damage

www.thedailystar.net

RMG unrest will hurt exports and industrial output
Govt must prevent further disruptions, minimise damage

VISUAL: STAR

We are concerned about the outcome of recent disruptions in the ready-made garments (RMG) industry. This vital sector—which last year fetched an all-time high of about $47 billion from exports—could be in for a rude shock this year after being rocked by frequent protests, factory closures, and vandalism over the past month or so. This is already having an impact, with many international buyers who regularly visit Bangladesh to finalise work orders cancelling their trips, affecting their planning for upcoming seasons. Citing a representative of a major European buyer, a report by this daily even said that many requests for value-added garments have already been cancelled or postponed.

In an environment of uncertainty and insecurity, it is natural that buyers would have a Plan B for sourcing apparel from alternative destinations where they can safely place orders. As well as supply-chain disruptions, buyers also have to think about reputational risks arising from placing orders in restive countries. There is already a concern among some buyers that about 5 to 10 percent of their work orders placed in Bangladesh could be affected by the latest unrest and other hurdles. What this means for local producers is that they are having to deal with concerns not just about future orders but also the profitability of existing ones, as they may now have to provide discounts and expensive air shipments because of supply delays.

Ironically, the problems in Bangladesh have raised hopes for rival apparel suppliers, including India, who are expecting a boost in their work orders. Even though India's apparel exports remain significantly lower than Bangladesh's, the country's offer of various incentives and policy supports to its garment hubs and manufacturers contrasts the frequent challenges facing our manufacturers. This shows how our position as the world's second-largest garment exporter could be upended if we don't ensure stability and competitiveness fast enough. True, Bangladesh can still turn around. Its competitive pricing, improved safety and environmental compliance, and increased capacity for diversified products are still a potent mix. But to prevent the recent incidents of work orders being shifted elsewhere from becoming a trend, we must significantly improve safety, support our manufacturers, and remove all hurdles in the supply chain.

A lot has been said about the recent protests by workers. At a recent press conference, the IndustriALL Bangladesh Council, which represents 18 trader unions, blamed local youth gangs, garment waste traders, and unemployed individuals for instigating the demonstrations in Savar, Ashulia, and Gazipur. Going forward, we must approach these disruptions in a manner that both addresses the genuine grievances of workers—including delayed wage payments and unlawful dismissals—and persistent security issues. The interim government has reportedly set a 12.65 percent export growth target for this fiscal year, but without fixing the problems in our biggest export sector, such targets cannot be reached successfully.​

 

[Saif]

We must stop the infighting to retain buyers

To maintain its position as a global leader in the garment industry, Bangladesh must prioritise unity and stability.

www.thedailystar.net

We must stop the infighting to retain buyers

A female worker inquires at the gate of a closed factory in Ashulia when it would reopen. FILE PHOTO: AKLAKUR RAHMAN AKASH

Bangladesh has been through an extremely challenging situation recently, especially with the change of leadership brought forth by a student-led mass movement. As a business community, we should now be looking forward to the coming months with a sense of optimism. For the ready-made garment (RMG) sector, this is a crucial period as apparel manufacturers look to complete autumn and winter orders.

Therefore, it is frustrating to see that pockets of unrest continue, leading to closures of garment factories, which are already under tremendous pressure of completing their work orders. This is taking place at a time when the nation is facing numerous economic challenges. When foreign exchange reserves are a big concern, creating trouble in the garment sector will deal a heavy blow to the economy and the country as a whole.

The recent labour unrest in garment factories of Dhaka's Ashulia and Gazipur has been attributed to a power struggle between local thugs with differing political allegiances. Some ringleaders are allegedly attempting to assert dominance after the regime change and their rivalry has intensified the unrest.

According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the protests began at the Dhaka EPZ gate, where demonstrators demanded jobs. The unrest spread to nearby factories, although initial impacts were minimal.

On August 31, workers from a major exporter began vandalising factories, according to industry insiders, workers, and law enforcement reports. They forced other factory owners to close their factories and urged workers to join the protests. Violence erupted as owners and workers resisted the shutdown, resulting in more vandalism. Some unrest has persisted since then, with some factory closures. Garment manufacturers have held separate meetings with government officials and law enforcement agencies since then.

Industry insiders believe the police should ensure factory security, but some officers were involved in violent crackdowns during the student uprising, which may have left them feeling hesitant to confront workers. Although the Bangladesh Army has been deployed nationwide, it is more challenging for them to manage the situation without sufficient police support.

So, what now? My personal perception is that global apparel buyers have faith in the Yunus-led government, and orders continue to be placed. However, it is frustrating to see that a vested group is attempting to further destabilise the garment sector.

Moreover, these ongoing tensions between political factions in Bangladesh pose a significant threat to Bangladesh's reputation, especially at a time when it must present a unified and stable front to retain the trust of international fashion buyers.

The RMG sector, which accounts for over 80 percent of Bangladesh's export earnings, is the backbone of the nation's economy. Any instability in this industry directly impacts not only the livelihoods of millions of workers but also the broader economic prospects of the country. For global fashion brands, who rely on consistency, reliability, and timely delivery from suppliers, such infighting sends the wrong message.

Political unrest, labour strikes, and factory closures signal an unpredictable business environment. International buyers, operating in a highly competitive market with tight deadlines, cannot afford disruptions in their supply chains.

This does not bode well for Bangladesh, especially when other nations such as Vietnam, India, and Cambodia, are emerging as competitors in the global garment industry. These countries present themselves as stable, reliable alternatives, further exacerbating Bangladesh's challenges in maintaining its market share. Infighting within the RMG sector weakens the industry's competitive edge by diverting attention away from productivity and innovation and toward internal strife. The situation is particularly concerning given the country's dependence on international buyers, many of whom have voiced their support for ethical and sustainable sourcing practices.

To maintain its position as a global leader in the garment industry, Bangladesh must prioritise unity and stability. The government, industry leaders, and political factions must work together to create an environment conducive to business, signalling to the world that Bangladesh is a trustworthy and dependable partner. If the country fails to present a unified voice, it risks losing the confidence of global buyers, leading to devastating economic consequences for millions of workers and the nation as a whole.

In the past few weeks, buyers, NGOs, and rights groups have urged fashion brands to stand by Bangladesh amid its change of leadership. But we must repay this loyalty by providing a stable and reliable business environment. Major customers are supportive of our efforts but there is only so much they will tolerate before saying: enough.

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

 

[Saif]

Textile millers want immediate improvement in gas supply

Textile millers yesterday urged the interim government to take immediate steps to improve gas and power supply to production units, as most are now running at only 30 percent capacity.

www.thedailystar.net

Textile millers want immediate improvement in gas supply

Textile millers yesterday urged the interim government to take immediate steps to improve gas and power supply to production units, as most are now running at only 30 percent capacity.

They also urged the authorities to restore law and order urgently as garment factories are facing challenges in running operations.

They demanded that yarn imports from India be stopped through all land ports as large quantities are entering without proper documentation and quality testing, deteriorating sales of the domestic primary textile sector, where $22 billion has been invested.

The millers said yarn imports can be allowed through the Chattogram port as it contains facilities for quality testing.

They also urged to stipulate that any yarn which is sought to be imported from India needs to undergo quality tests at the Bangladesh University of Engineering and Technology.

In most cases, double the quantity mentioned in letters of credit is being imported through misdeclarations, said leaders of the Bangladesh Textile Mills Association (BTMA) at a press conference at its office in Dhaka.

Over the last eight months, textile millers at Bhulta, Gausia, Rupganj and Narayanganj areas have been suffering a lot because of low gas pressure in the supply lines, said BTMA Vice-President Md Saleudh Zaman Khan.

The textile mills are being run with alternative fuels such as diesel, methane-based compressed natural gas and liquified petroleum gas, which is composed of propane, butane, propylene, butylene, and isobutane, he said. This is also increasing the cost of production.

The mills are running at only 30 percent capacity and falling behind in competition with Indian companies as the latter get adequate gas supply alongside government incentives, he added.

Moreover, gas prices in Bangladesh have been hiked by over 400 percent in the past 2-3 years, he said.

BTMA President Showkat Aziz Russell said they have already written to Muhammad Yunus, chief adviser to the interim government, to review whether Bangladesh is truly qualified to make the United Nations country status graduation from a least developed country to a developing nation in 2026.

This is because, during the tenure of the last government, state data miscalculations led to export figures being inflated by around $14 billion to nearly $48 billion in fiscal year 2022-23, he said.

He also urged banks to provide loan rescheduling facilities as businesses suffered due to political unrest over the past two months.

Moreover, the interim government should provide incentives to the primary textile sector to make the domestic industry more competitive, he added.

Russell hoped for improvements in the law and order situation, saying it was especially necessary for the smooth operation of garment factories. He and other BTMA members accused "outsiders" of recent vandalism at garment factories.

The BTMA leaders said no textile mill had been attacked so far, although hundreds of garment factories have been facing trouble for labour unrest over different demands.​

 

[Saif]

Why this labour unrest in RMG sector?

The ongoing labour unrest since August 29, which has led to several factory closures across the industrial hubs of Ashulia and Gazipur, has brought the lucrative Bangladesh readymade garment (RMG) sector to a critical crossroads, sending warning signals to buyers throughout the world. This turmoil

thefinancialexpress.com.bd

Why this labour unrest in RMG sector?
Atiqul Kabir Tuhin
Published :
Sep 11, 2024 22:18
Updated :
Sep 11, 2024 22:18

The ongoing labour unrest since August 29, which has led to several factory closures across the industrial hubs of Ashulia and Gazipur, has brought the lucrative Bangladesh readymade garment (RMG) sector to a critical crossroads, sending warning signals to buyers throughout the world.

This turmoil follows a period of political instability in July, from which the industry was hoping to recover after the formation of the interim government on August 8. However, the unrest, marked by attacks, property damage, looting, and arson in various factories, has raised concerns about industrial security. This disruption comes at a time when factories are under contract and immense pressure to meet deadlines for winter orders from global buyers, further exacerbating the crisis.

The reasons behind the unrest are the subject of much debate. The demands voiced by garment workers include equal opportunities for men and women, increased wages, improved benefits, and lighter workloads. In addition, delays in wage payments, alleged blacklisting of dismissed workers, and contentious issues surrounding unionisation have fuelled anger and dissatisfaction. Factory owners, on the other hand, claim the unrest is not primarily driven by the workers but by external elements, particularly political groups seeking dominance, especially over the scrap and rejects business. These groups, they argue, have incited disturbances to exert pressure on factory owners. A lack of adequate police presence has allowed the unrest to escalate and spread rapidly, presenting a grave threat to industrial peace and stability.

To quell the unrest, on September 2 the government deployed the army and police. While this intervention has restored some degree of order, the situation remains volatile and fragile, with approximately 100 factories in the Ashulia industrial zone alone forced to close on September 9 due to continued violent protests. This highlights that security measures alone cannot resolve the underlying grievances of the workers. There is an urgent need for factory management to engage in meaningful dialogue with the workers to address legitimate demands, as unrest in one factory can easily trigger a wave of disruptions across the sector.

This labour unrest, though seemingly localised, has far-reaching implications for both the economy of Bangladesh and the international reputation of its RMG sector. As the country's economic cornerstone, the garment industry contributes hugely as in 2023 it fetched over $47 billion from exports. Any prolonged disruption threatens not only the livelihoods of millions of workers but also the nation's macroeconomic stability. Bangladesh, as the world's second-largest garment exporter, faces intense global competition, particularly during peak seasons. Reports of international buyers diverting their orders to Cambodia, Indonesia, and elsewhere due to the instability should serve as a wake-up call for both the government and industry leaders.

Additionally, the unrest has diverted attention from other critical issues, such as energy shortages affecting the RMG sector as well as its backward linkage industries. The failure to address these challenges promptly will have ripple effects throughout the economy, exacerbating the difficulties already faced by the RMG sector.

The interim government, led by Nobel laureate Muhammad Yunus, has pledged to restore order and undertake necessary reforms. However, the urgency of stabilising the situation quickly cannot be overstated. Bangladesh's low-cost labour, while a competitive advantage, is insufficient to offset the risks associated with an unstable political environment. Restoring the confidence of international buyers will require more than security measures - it demands a comprehensive strategy that tackles the root causes of unrest, including workers' rights, governance, and corruption.

The sector should prioritise not only meeting international demands but also ensuring fair treatment of its workforce and bolstering security and governance in industrial zones. Failure to address these concerns risks deepening the current crisis, threatening not just the RMG industry, but also the entire economy.

The challenges facing the interim government are monumental. Political stability and law and order need to be restored swiftly if Bangladesh is to retain its standing in the global garment industry. The administration must collaborate closely with industry leaders to ensure that production timelines are met and that necessary governance reforms are implemented. Restoring the country's reputation as a reliable garment producer ought to be a top priority.

Moreover, the government should tackle the underlying issues that have plagued the sector for years, particularly corruption and political entanglement. While factory owners may have benefitted from political patronage in the past, these connections have now become liabilities. Reforming trade associations and ensuring transparency in business practices would go a long way towards restoring credibility in Bangladesh's garment sector.

Bangladesh's RMG industry stands at a pivotal juncture, facing both opportunities and challenges, especially as the country approaches graduation from its Least Developed Country (LDC) status. To thrive in the future, the industry will need to diversify its product range, embrace innovation, invest in technological upgrades, and enhance workforce skills. Collaboration among workers, factory management, and government remains essential to overcoming these challenges and sustaining the sector's growth.

Resolving disputes through dialogue could create a win-win situation for all stakeholders in the RMG industry. Positive relationships between workers and employers are crucial for fostering an environment of trust and mutual respect. This, in turn, will motivate workers and contribute to the sector's growth. By fostering a harmonious industrial environment, Bangladesh's RMG industry can navigate its current challenges and continue to play a crucial role in the country's economic development. The time for decisive action is now, and all stakeholders need to rise to the occasion.​

 

[Saif]

Deeper crisis feared as 219 factories shut

With 219 garment factories shut in Ashulia yesterday amid worker unrest along the industrial belts, Bangladesh’s apparel sector is feared to get into a deeper crisis if production does not resume on Saturday after the weekend.

www.thedailystar.net

Deeper crisis feared as 219 factories shut

With 219 garment factories shut in Ashulia yesterday amid worker unrest along the industrial belts, Bangladesh's apparel sector is feared to get into a deeper crisis if production does not resume on Saturday after the weekend.

Officials see conspiracies behind the unrest and believe "real workers" are not involved in the vandalism of some factories, while labour leaders blame the influence of partisan politics and control over fabric scrap trade for the situation.

Meanwhile, the inaction of a demoralised industrial police force and the "unusual demands" of the workers have frustrated the owners, who are under pressure from international buyers ahead of the next holiday season in the West.

Of the factories closed yesterday, 86 were shut indefinitely under the Labour Act, which empowers the employer to shut any unit in case of a strike.

The remaining 133 factories were closed as they declared a general holiday, said Md Sarwar Alam, superintendent of Ashulia Industrial Police-1.

The closed factories included 107 members of the Bangladesh Garment Manufacturers and Exporters Association, mainly in Ashulia and Zirabo, said Khandoker Rafiqul Islam, president of the association.

Although a few committees involving local politicians were formed in Ashulia to resolve the crisis through discussions, industry owners are worried about the safety of their factories, he said.

Industrial police have yet to start fully functioning more than one month after the ouster of the Awami League government, further fuelling safety concerns. Harsh measures like internet shutdown amid street protests during the mass uprising already hampered production and orders heavily.

Owners say they are not getting help from the industrial police even after lodging complaints. The number of personnel patrolling the industrial zones is inadequate.

Army personnel have been deployed to the industrial zones, but they do not have the magistracy powers to arrest protesters, said Shams Mahmud, managing director of Shasha Denims.

"We aren't getting the confidence to run the factories because of safety concerns," Mahmud told The Daily Star over the phone.

Foreign buyers are putting pressure for timely delivery but the factories are shut, said a frustrated Mahmud. Many shipments may get cancelled, or the buyers may demand big discounts or expensive air shipments, he added.

Many international retailers and brands are cancelling buying trips because of the unrest although this is the peak time to confirm work orders for the next winter season, exporters said.

"So, a massive impact of the unrest will be noticed in the next winter season," Mahmud said.

A senior officer of the industrial police, requesting anonymity, said they are conducting joint patrols in the industrial zones and responding to incidents. Industrial police are trying to be fully functional, the officer added.

AK Azad, chairman and CEO of Ha-Meem Group, echoed the views of Mahmud. He said most of the incidents were taking place in Ashulia and local groups were involved.

Police are not working, which is helping the unrest in one factory to spread to the others, said a garment exporter based in Narayanganj's Rupganj who asked not to be named.

In some cases, political issues are also involved, the exporter said.

For instance, he said, the unrest in the Beximco garment factory has political influence as one of its owners, Salman F Rahman, was an adviser to ousted prime minister Sheikh Hasina.

He also said that buyers, worried and frustrated over the situation, are sending a lot of queries to know about the condition of work orders for the next season.

Giant Group Managing Director Faruque Hassan claimed the ongoing unrest is not about wages because the pay was hiked in December last year.

In many cases, the workers are demanding the removal of senior officials, equal ratio in appointment of male and female workers, he said.

The workers are placing "unusual demands" in some cases, said Md Saleudh Zaman Khan, vice-president of Bangladesh Textile Mills Association.

For example, he said, protesters demanded the recruitment of 300 workers when a factory in Narayanganj needed only 20. The factory management decided to hire a little over 20 workers, but the protesters did not return to work, Zaman said.

Worker leaders pointed the finger at partisan politics and conflict in fabric scrap trade for the unrest. They said a section of fabric scrap traders were trying to maintain control by using the workers.

Many are taking advantage of weak law and order, said Md Towhidur Rahman, president of the Bangladesh Apparel Workers Federation.

If the factories do not reopen fully on Saturday, the sector may face a deeper crisis in near future, he said.

Nazma Akter, president of Sammilito Garment Sramik Federation, said many workers are also involved in partisan politics. In some cases, outsiders are instigating them to launch unrest, she said.

She recommended holding a dialogue among the stakeholders to find a way out of the crisis.

Labour and Employment Secretary AHM Shafiquzzaman believes those involved in the vandalism of factories are not real workers.

The secretary said he held a meeting with BGMEA leaders and union leaders at Tongi yesterday as part of measures to improve worker-owner relations.

Asif Mahmud, youth and sports adviser to the interim government, suspects a conspiracy behind the ongoing unrest in the garment sector.

Speaking at a media briefing at the Foreign Service Academy yesterday, he said that around 20 percent of total orders have been cancelled.

"And we have witnessed that the buyers of a certain country have been desperately lobbying to get those orders," he said, citing Secretary Shafiquzzaman.

Asif said that workers prevented attacks on factories by a group called Bekar Jubo Songho, or Unemployed Youth Association, and one leader of the association arrested in Netrokona was found to be involved with AL's student front Chhatra League.

He admitted that the protesting workers have some genuine demands besides the conspiracies.

The adviser also warned of strict action against fabric scrap traders who are fuelling the unrest.​

 

[Saif]

Authorities must immediately address apparel sector unrest

THE ongoing labour unrest in the apparel sector that has led to the shutdown of more than a hundred factories is gravely concerning for owners and employees in the sector and the economy. The unrest at a time when fresh orders come aplenty is feared to have a lasting negative impact on the...

www.newagebd.net

Authorities must immediately address apparel sector unrest
13 September, 2024, 00:00

THE ongoing labour unrest in the apparel sector that has led to the shutdown of more than a hundred factories is gravely concerning for owners and employees in the sector and the economy. The unrest at a time when fresh orders come aplenty is feared to have a lasting negative impact on the sector. September and October are crucial for the sector as most western buyers place orders in these two months targeting Christmas. Any disruption now in the sector, one of the pillars of the economy, will give benefits to Bangladesh’s competitors, which naturally eye to seize the market. Labour unrest shut down, as New Age reported on September 11, 114 factories in Ashulia and Gazipur industrial areas. Workers of several factories in the Beximco Industrial Park in Gazipur on September 11 went on demonstration demanding their wage for August and tried to mobilise workers of other factories, leading to a clash. About 32,000 workers in the Beximco Industrial Park had rallied for their overdue wage for August and although the authorities issued payment on September 10, many workers did not receive the wage. The workers also burnt a factory in Kashimpur after a clash between two worker groups.

In the wake of the unrest that has continued for a few days, at least 60 factories announced a paid general holiday while 54 units announced closure for an indefinite period. It is feared that about 100,000 workers might get laid off if the shutdown continues and if work orders do not come. Factory owners have, meanwhile, alleged that the unrest is created by outsiders and is politically motivated. While the allegation appears a typical response of owners, it bears some truth as a leader of the Chhatra League, the student wing of the Awami League, was arrested on September 8 after a provocative speech in front of apparel workers at Savar had gone viral. This suggests that the unrest might be, to some extent, politically motivated and outsiders, local or foreign, might have attempted sabotage. The authorities certainly need to examine the allegation and assess the situation. But at the same time, the authorities need to address the labour rights issue that continues to be a cause for concern. Bangladesh cuts a sorry figure when it comes to labour rights. The Global Rights Index has ranked Bangladesh among the 10 worst countries for workers for consecutive years since 2017.

The government needs to address the issue efficiently, effectively and immediately to bring stability in the sector. The authorities must provide security for industrial areas and investigate whether the unrest is an act of sabotage. The authorities, however, should by no means be high-handed to workers and heed genuine grievances of the workers. The labour unions also need to come forward and help bring stability in the sector.​

 

[Saif]

130 factories remain open in Ashulia on weekend

A total of 130 factories in the Ashulia industrial area, where there is no worker unrest, remained open today despite the usual weekly holiday, due to pressure from work orders

www.thedailystar.net

130 factories remain open in Ashulia on weekend

Photo: Palash Khan/File

A total of 130 factories in the Ashulia industrial area, where there is no worker unrest, remained open today despite the usual weekly holiday, due to pressure from work orders.

Md Sarwar Alam, superintendent of Ashulia Industrial Police-1, confirmed the matter to our Savar correspondent this noon.

He said that there are a total of 1,863 factories in the Ashulia industrial area, most of which are garment factories. Due to heavy work order pressure, production continued today in 130 factories, mostly garment factories.

"In these factories, there are no issues with the workers, and due to the high volume of work orders, the owners decided to continue production even on holidays," said SP Sarwar Alam.

SP Sarwar Alam said the decision to keep some factories open during the holidays was made by the owners to compensate for the losses caused by recent worker protests. About 30 percent of the total factories in Ashulia area operated today.

He further said additional law enforcement personnel were deployed in front of the factories to prevent any untoward incidents.

Worker unrest has been ongoing in the Ashulia industrial area for the past two weeks due to various worker demands.

Yesterday, a total of 219 garment factories were declared shut in Ashulia Industrial area so far today due to the labour unrest. Of these, 86 factories were shut by the authorities for indefinite period under Section 13 (1) of the Labour Act, and the remaining 133 factories remained closed as they declared a general holiday.

However, the 219 factories that were closed yesterday remain closed today.​

 

[Saif]

Bring back normalcy in the RMG sector

Understand and act to calm the frustrations in industrial belts.

www.thedailystar.net

Bring back normalcy in the RMG sector
Understand and act to calm the frustrations in industrial belts

VISUAL: STAR

We are gravely concerned about the ongoing unrest in our RMG industry as workers continue to protest in Ashulia, Zirabo, Savar and Gazipur over payment of arrears, better pay, job regularisation, increase of allowances and benefits, etc. According to the BGMEA, on September 12 alone, 219 garment factories in Gazipur and Ashulia were closed down due to workers' protests. Reportedly, in many areas, the protests took a turn for the worse as a result of unresolved negotiations with factory owners over their demands. Workers allegedly vandalised many factories; some of them were also set on fire. The question is: how has the situation come to this point?

According to industry insiders as well as some labour leaders, outsiders and political elements are trying to instigate the workers. It is imperative that, under the circumstances, a proper investigation is conducted immediately to identify the external factors responsible for the vandalism and destruction of properties. Owners have also pointed out that the industrial police are yet to start functioning fully in the industrial belts since the Hasina government was ousted around six weeks ago, fuelling safety concerns. This prolonged state of insecurity must be addressed by the interim government urgently, and the role of the industrial police—who have been used by successive governments to quell workers' protests—must also be re-evaluated to restore trust in the force.

Even if the allegations of external forces trying to create instability in the sector are true, we need to understand and address the underlying frustrations of the workers. During the 15 years of Awami League rule, we saw how the workers' legitimate demands were routinely disregarded. Last year, when the workers demanded Tk 23,000-25,000 as their monthly minimum wage, the government fixed it at Tk 12,500 in compliance with the proposal made by RMG factory owners. Sadly, many owners are still depriving their workers of their dues and aggravating an already volatile situation. Meanwhile, RMG factories are yet to institute an equitable mechanism for negotiations between workers and owners. Such practices must come to an end and workers' grievances must be properly addressed.

As production in a lot of factories remains suspended, there are concerns among the owners about financial losses they might incur, which will eventually affect our economy and the workers at large. There are, in fact, real reasons to worry as the disruption in production has already led many international buyers to cancel their trips to the country to finalise work orders for the coming seasons. Under the circumstances, we urge the interim government to act promptly to understand and act on the simmering frustrations on the ground. Its decision to review the workers' wage through the minimum wage board is a step in the right direction. The government also said it would consider inflation and the rising prices of essentials while reviewing the minimum wage, which is only the right thing to do. It also needs to take steps to improve security at the RMG factories, support the manufacturers in need, address the international buyers' concerns, and ensure stability and competitiveness in the sector.​