[🇧🇩] Textile & RMG Industry of Bangladesh

[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...

www.newagebd.net

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...

www.newagebd.net

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.

www.thedailystar.net

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.​