[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Textile unit closures may surge amid rising gas prices: BTMA

Bangladesh Textile Mills Association president Showkat Aziz Russell on Tuesday said that textile sector in Bangladesh might experience a surge in factory closures as a result of further hike in gas prices...

www.newagebd.net

Textile unit closures may surge amid rising gas prices: BTMA
Staff Correspondent 18 February, 2025, 22:33

Bangladesh Textile Mills Association president Showkat Aziz Russell speaks at a press conference in the capital Dhaka on Tuesday. | Press release

Bangladesh Textile Mills Association president Showkat Aziz Russell on Tuesday said that textile sector in Bangladesh might experience a surge in factory closures as a result of further hike in gas prices.

He said that despite hiking the gas price by nearly 179 per cent in 2023, the government still could not ensure uninterrupted gas supply to the industries.

‘In this scenario, if the government doubles the gas prices, Bangladesh’s textile sector will never become sustainable and the sector will lose its competitiveness,’ he added.

He said that it would also be a hindrance in getting fresh investments and bank finance.

The BTMA president was speaking at a press conference on the upcoming Dhaka International Textile and Garment Machinery Exhibition (DTG) in the capital Dhaka on the day.

Responding to a question, he said that it was high time to attract investment to Bangladesh, as Chinese factories were phasing out from the textile business.

‘China is shifting towards high-end industries, leading to closure of some apparel, textile and footwear companies. Moreover, a number of businesses are relocating from China due to rising labour costs,’ he added.

He said that US president Donald Trump had imposed an additional 10 per cent import duty on Chinese goods, resulting in some businesses moving their operations elsewhere.

‘To attract this investment, the government must ensure stable utility prices and an uninterrupted supply of fuel and gas. If we can secure some of these investments, it will help create employments in our country,’ he added.

He also expressed concerns over frequent policy changes. He urged the government to include industry representatives in Bangladesh Petroleum Corporation and Titas Gas boards to oversee gas procurement and distribution processes.

Regarding the national election, he said that the announcement of the national polls was necessary so that they could plan their investments.

Russell also pointed out that the textile industry had lost competitiveness over the years due to rising business costs, particularly as utility prices continued to increase.

Regarding the yarn import from India, he said that if there had been an uninterrupted supply of gas, they would not have imported much yarn from the neighbouring country.

‘Bangladesh imported yarn worth $2.7 billion in recent times as our factories are sitting idle due to gas shortage. For this reason, a number of workers have become jobless and now they are doing various miscreant activities,’ he added.

He also said that the past government did not explore gas, but completed contracts to buy gas from spot markets, which led to dollar crises. The problems are still persistent as most of the contracts were long-term, he said.

The BTMA, in collaboration with Yorkers Trade & Marketing Service Co, Limited, Hong Kong, will organise the 19th edition of DTG from February 20 to 23 at the International Convention City Bashundhara in the capital Dhaka.​

 

[Bilal9]

Garments industry textile leftovers are being converted to biodegradable Poly-ethylene sheeting (for bags) by ECOVIA who have a patent on the process. The bags degrade in about 180 days and turn into fertilizer.

 

[Saif]

Bangladesh should annually review minimum RMG wage amid inflation pressure: Study

Bangladesh should annually review its wage-setting process, as apparel workers in the country who are paid the minimum wage are losing income year-on-year due to current inflation rates, said a policy brief from Cornell University. The brief, titled “Waiting Game: Minimum Wage-Setting

thefinancialexpress.com.bd

Bangladesh should annually review minimum RMG wage amid inflation pressure: Study
Monira Munni
Published :
Feb 21, 2025 23:20
Updated :
Feb 21, 2025 23:21

Bangladesh should annually review its wage-setting process, as apparel workers in the country who are paid the minimum wage are losing income year-on-year due to current inflation rates, said a policy brief from Cornell University.

The brief, titled “Waiting Game: Minimum Wage-Setting in Bangladesh’s Apparel Industry”, by the Global Labor Institute (GLI), a part of Cornell University ILR School, was published recently. It made five key recommendations, including institutionalising the annual review of minimum wages and scheduling a review of the 2023 minimum wage in 2025.

The GLI, which is dedicated to independent quantitative research and action, analysed Bangladesh’s national minimum wage-setting policy as the new government plans major updates to labour laws and practices.

The researchers note that the long-time minimum wage policy—which reviews wages every five years—combined with high inflation, favours employers over workers.

In addition, they noted that the local ‘purchasing power’ of workers’ wages in Bangladesh is significantly lower than that of workers in competing apparel-producing countries.

Regarding employers’ argument that rising labour costs in a labour-intensive sector would make their industry less competitive, the brief showed that there is no evidence to support this. It also highlighted that the experiences of Vietnam, Indonesia, Cambodia, and other countries in recent years undermine this argument.

Citing data, the brief said apparel brands and retailers' advocacy for meaningfully higher wages and a regular wage-setting process has been ineffective. The 2023 wage revision and the fall of the Hasina government in 2024 have drawn the industry’s attention once again.

As a result, the researchers are calling on Bangladesh’s government to simplify the minimum wage structure and adjust wages annually.

It also recommended that “genuine trade union representatives chosen by labour federations be appointed to a wage board.”

Speaking to The Financial Express on Thursday, Jason Judd, executive director of Cornell ILR, explained that Cambodia’s apparel industry is a good example for Bangladesh to follow, citing growth in wages and output.

Judd, who is in Bangladesh for a short visit until Friday, said the Cambodian government took a similar approach when it overhauled its wage-setting policy a decade ago.

“The experience of Cambodia’s apparel industry in remarkably similar circumstances is very clear,” he said, adding that a decade ago, after street protests and government violence against workers, brands joined the campaign for change, and wages and output have grown steadily since.

“Wages have grown regularly alongside orders and output since then in Cambodia,” he told The Financial Express.

He cited one of the Institute’s reports conducted in 2023, where workers interviewed estimated spending Tk 3,500 on medicine and Tk 2,000 on electricity at home in the hottest months when they had to run a fan constantly to sleep.

Monthly bills of this size equal 61 per cent of the average monthly rent payment of Tk 9,000, and workers reported borrowing against their personal belongings and paying high interest rates to afford electricity and medicines in May, June, and July.

“The Bangladesh industry’s price advantage has been maintained in part because of this downward pressure on real income for workers, as their low wages and the five-year review period work to keep production prices down and, therefore, enable competition with larger countries like China,” he said.

“There is a clear need and room—both political and economic—for an annual wage-setting process in Bangladesh. It’s long overdue. Imagine waiting five years for a raise while inflation rages [sic] at 10 per cent—that’s the situation for workers under the current scheme,” he said.

The brief said concrete actions the government of Bangladesh can take in the coming months include collecting explicit reassurances from brands that they support wage increases through higher prices. This includes references to labour-costing practices and the persistence of below-cost pricing by brands.

Other recommendations included distinguishing genuine worker representatives from others in the wage-setting process and social dialogue more generally.

It also called for extending freedom of association and bargaining rights to workers in export processing zones, complementing democratic representation of workers and wage enforcement efforts.​

 

[Saif]

RMG exports to all markets rise in first half of FY25

Exports to the European Union (EU), the United States, the United Kingdom, Canada, and other emerging markets have all increased.

en.prothomalo.com

RMG exports to all markets rise in first half of FY25
Staff Correspondent
Dhaka
Updated: 22 Feb 2025, 10: 30

A RMG factory Prothom Alo

Ready-made garment (RMG) exports have apparently rebounded with a notable surge in shipments to all major markets in the first six months of the 2024-25 fiscal year.

Exports to the European Union (EU), the United States, the United Kingdom, Canada, and other emerging markets have all increased. Except for the UK and emerging ones, all the markets registered growth over 10 per cent.

The RMG exports totaled USD 19.89 billion during the July-December period of the fiscal year, which is up by 13.28 per cent from USD 17.56 billion of exports recorded in the same period previous year.

Citing data from the Export Promotion Bureau (EPB), the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) noted that around 50 per cent of the total exports went to the European Union (EU) nations during the first six months of the current fiscal year. Exports to the EU reached USD 9.87 billion, which is 15.22 per cent higher than the previous year’s same period.

Among EU countries, Germany, Spain, the Netherlands, France, Poland, Italy, and Denmark imported more than USD 500 million worth of Bangladeshi garments. Except for Spain and Italy, exports to all these countries grew by over 10 per cent.

Germany remained the top European market during the period, importing USD 2.47 billion worth of garments. The figure is 14 per cent higher than its imports in the previous year's same period.

Meanwhile, exports to Spain reached USD 1.7 billion, France USD 1.09 billion, the Netherlands USD 1.06 billion, Poland USD 790 million, Italy USD 770 million, and Denmark USD 560 million. Among them, Poland saw the highest growth rate at 28 per cent, while Spain recorded the lowest at just under 3 per cent.

The US continued to be the largest market for Bangladesh as it accounted for 19-20 per cent of total RMG exports. The US imported RMG products worth USD 3.84 billion in the first half of the current fiscal year, which is 17.55 per cent higher than the previous year’s corresponding period.

Apparel exporters are seeing increased export opportunities in the US market as president Donald Trump imposed tariffs on imports from Canada, Mexico and China.

According to them, an additional 10 per cent tariff has been placed on Chinese products, which is expected to prompt US buyers to shift their purchase orders away from China, and create opportunities for the Bangladesh exporters to receive more orders.

Multiple traders told Prothom Alo that many US buyers had already started placing additional purchase orders even before the tariffs were imposed. The buyers are engaging in negotiations with factories and visiting Bangladesh to explore sourcing options.

Beyond the European Union and the United States, exports to the UK reached $2.16 billion in the first half of the current fiscal year, marking a 6.70 per cent rise compared to the same period last year. Exports to Canada totaled $640 million in the first half of the fiscal year, which is up by 14 per cent from the previous year’s corresponding period.

Bangladesh is also performing well in emerging markets as it exported $3.37 billion worth of RMG products to these markets in the first half, compared to $3.13 billion in the same period last year.

Among the new markets, Japan was the largest importer of Bangladeshi RMG products during the July–December period, with imports totaling $600 million. Exports to the Asian country rose by 5.7 per cent compared to the same period in the previous year.

Besides, exports to Australia reached $430 million, India $370 million, Korea $230 million, and Turkey $220 million. Growth rate was 7.5 per cent for exports to Australia, while 18 per cent for India, 2.84 percent for Korea, and 43 per cent for Turkey.

Mohammad Hatem, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told Prothom Alo that despite a rise in purchase orders, the key challenge is now the low price. Workers’ wages and other costs went up, but foreign buyers are offering lower prices than before. Hence, many purchase orders are not being accepted.

In response to another query, the BKMEA president said the textile mills are struggling to operate due to gas and electricity shortages. Hence, many RMG industry owners are importing yarn from India, which is eventually weakening the local textile mills.

He cited challenges over banking activities and law and order situations and feared that the positive trend in exports might not be retained had these internal issues not been addressed quickly.​

 

[Saif]

Bangladesh to surpass China in cotton imports

If this happens, Bangladesh will once again become the world’s top cotton importer, the position the country held multiple times before and after the pandemic.

en.prothomalo.com

Bangladesh to surpass China in cotton imports
The USDA’s October report had projected that global cotton imports for the 2024-25 trading year would reach 42.4 million bales, with China, Vietnam, Bangladesh, and Pakistan accounting for 65 per cent of the total

Shuvonkar Karmokar
Dhaka
Updated: 20 Feb 2025, 15: 01

Flags of Bangladesh and China

The US Department of Agriculture (USDA) has predicted that Bangladesh will surpass China in cotton imports—the primary raw material for the ready-made garment and textile sector—during the current 2024-25 trading year (August–July).

If this happens, Bangladesh will once again become the world's top cotton importer. The country has held this position multiple times before and after the COVID-19 pandemic.

According to a USDA report published last week, Bangladesh’s cotton imports are expected to reach 8 million bales by the end of the 2024-25 trading year, which began last August.

The agency previously predicted in October that imports would be 7.8 million bales, but it has now revised its estimate upwards. The increase in cotton imports is primarily driven by a rise in purchase orders for ready-made garments.

In the 2023-24 trading year, Bangladesh imported over 7.5 million bales of cotton. Notably, one bale is equivalent to 480 pounds or 218 kilogrammes.

Despite the USDA's forecast, textile mill owners in Bangladesh point out that most mills are not operating at full capacity due to the ongoing gas crisis, which has raised production costs.

Additionally, incentives for the sector were reduced last year. As a result, domestic yarn producers are struggling to compete with Indian yarn, leading to an increase in yarn imports from India.

The report estimated that China would import 8 million bales, Vietnam 7.1 million, Bangladesh 7.8 million, and Pakistan 4.8 million.

The USDA’s October report had projected that global cotton imports for the 2024-25 trading year would reach 42.4 million bales, with China, Vietnam, Bangladesh, and Pakistan accounting for 65 per cent of the total. The report estimated that China would import 8 million bales, Vietnam 7.1 million, Bangladesh 7.8 million, and Pakistan 4.8 million.

However, in its updated February report, the USDA revised its forecasts, stating that China’s cotton imports could decrease by 700,000 bales from the previous estimate.

Meanwhile, Vietnam, Bangladesh, and Pakistan are each expected to import more cotton—by 300,000, 200,000, and 200,000 bales, respectively. As a result, China’s total imports may fall to 7.3 million bales, while Vietnam’s and Pakistan’s imports could rise to 7.4 million and 5 million bales, respectively.

When asked about the USDA’s forecast, Bangladesh Textile Mill Owners Association (BTMOA) Director Khorshed Alam told Prothom Alo that while the prediction is theoretically correct, the reality is different. The estimate is based on the production capacity of factories, but in reality, 40-50 per cent of this capacity remains unused due to the ongoing gas crisis. As a result, the actual cotton imports will likely be lower than projected. Moreover, a significant portion of the imported cotton will come from India in the form of yarn.

Citing his own experience, Khorshed Alam said, “My two spinning mills always maintain a three-month stock of cotton. Since we are currently utilising only 50-55 per cent of our production capacity, we have not imported any cotton in the last four months.”

According to the USDA, Bangladesh imported 8.4 million bales of cotton in the 2021-22 trading year to meet the demand of its primary export sector. During the same period, China imported 12.7 million bales. However, China's imports declined significantly in the following year. In the 2023-24 trading year, China made a comeback, importing 14.9 million bales of cotton. This year, however, their imports have once again decreased sharply.

According to the National Board of Revenue (NBR), Bangladesh’s textile sector traders imported 1.889 million tons of cotton last year—an increase of 39 per cent compared to the previous year—at a cost of 453.74 billion taka. Additionally, 1.2 million tons of yarn were imported, amounting to 457.13 billion.

The Bangladesh Textile Mills Association (BTMA) reports that the country has 519 spinning mills, though some remain closed. These mills supply 85-90 per cent of knit fabric and around 40 per cent of the yarn used in woven fabrics.

Speaking at a program on Tuesday, BTMA President Shawkat Aziz Rasel stated that Bangladesh is self-sufficient in yarn production. However, due to the ongoing gas crisis, only half of the textile mills are operational, while the rest are either running at reduced capacity or have shut down entirely. Meanwhile, export-oriented readymade garment factories have strong purchase orders for the next three to four months, but local textile mills are struggling to supply the necessary yarn due to the energy crisis.​

 

[Saif]

RMG exports grow 18% in Oct-Dec

Bangladesh’s readymade garments (RMG) industry has continued to expand despite global economic challenges and domestic labour unrest following the fall of the Awami League government last August, according to the latest Bangladesh Bank (BB) report.

www.thedailystar.net

RMG exports grow 18% in Oct-Dec

Bangladesh's readymade garments (RMG) industry has continued to expand despite global economic challenges and domestic labour unrest following the fall of the Awami League government last August, according to the latest Bangladesh Bank (BB) report.

Export earnings for the October-December period of fiscal year 2024-25 (FY25) stood at $10.36 billion, marking a 9 percent increase from the previous quarter.

Year-on-year, it was a growth of 18.6 percent.

"This growth was attributed to the rebound of economic activities in advanced economies along with the peak holiday shopping season in Western markets," said the central bank's quarterly review of RMG released yesterday.

Major US and European retailers typically increase their orders to meet consumer demand, it said.

The report said the apparel sector faced inflationary pressure, disruptions to supply chains, fluctuating fuel prices, and rising transportation costs. However, demand from key export markets remained strong.

Last year, the local garment sector witnessed demonstrations, national election-related movements, factory closures and production halts amid massive labour unrest after the fall of the Sheikh Hasina-led administration on August 5.

Goods shipment was severely affected in July, August, September and October due to a student-led mass movement culminating in Awami League's ouster and widespread labour unrest demanding wage hikes and an end to workplace discrimination.

On the international front, high inflation has persisted over the past few years because of the far-reaching implications of the Russia-Ukraine war that began just after the pandemic, affecting consumer demand.

But Western economies have been rebounding gradually with rising demand, for which retail sales have also been growing with the clearance of inventories of previous years in Europe and the US.

"Over the years, Bangladesh has established itself as one of the world's leading apparel manufacturers," it said.

"The growth of this sector can be attributed to competitive labour costs and a robust supply chain network," the report added.

The RMG sector contributed 11.68 percent to the gross domestic product (GDP) during the quarter.

The BB report said nine countries -- namely the US, Germany, the UK, Spain, France, the Netherlands, Italy, Canada, and Belgium -- were the primary destinations for Bangladesh's RMG exports.

These countries enabled roughly 70 percent of total RMG earnings in the second quarter of FY25.

Earnings from these markets increased by 7.13 percent compared to the preceding quarter.

Of the shipments, knitwear exports grew by 2.61 percent quarter-on-quarter to $5.48 billion.

The growth was 18 percent compared to the same quarter of the previous year, driven by strong demand from the US and European Union.

Woven garment exports rose by 17.23 percent to $4.88 billion, supported by increased consumer spending in the European and US markets.

The BB report said woven garment exports experienced notable growth, leading to a resurgence in consumer spending in major markets, particularly in Europe and the US.

"This uptick was influenced by economic recoveries and a renewed interest in apparel. Moreover, a competitive edge through cost-effective production has been maintained, offering quality woven garments at attractive prices," it said.

The report said the RMG sector continues to be affected by supply chain disruptions and increased raw material costs.

The import value of raw materials such as cotton, synthetic fibres, yarn, and textile fabrics reached $4.03 billion in the second quarter of FY25, accounting for 39 percent of total RMG export earnings.

Net export earnings stood at $6.32 billion, a 12.67 percent rise from the previous quarter.

The BB report said Bangladesh's RMG sector demonstrated strong resilience and steady growth during the October-December period of FY25, driven by increased global demand and production efficiency.

"Looking ahead, the significant performance of the RMG sector will be reaffirmed during the whole of FY25, setting a positive outlook for the coming years and positioning Bangladesh as a leading apparel exporter on the global stage," the report said.​

 

[Saif]

Bangladesh’s strategic edge amid US tariff war

The US-China trade war, along with tariffs on Mexican exports, has created a unique opportunity for Bangladesh’s ready-made garment (RMG) industry.

www.thedailystar.net

Bangladesh’s strategic edge amid US tariff war

The US-China trade war, along with tariffs on Mexican exports, has created a unique opportunity for Bangladesh's ready-made garment (RMG) industry. There is no doubt that the USA will pull out of China and Mexico after the imposition of tariffs, redirecting its sourcing mainly to Bangladesh and Vietnam, and to some extent, to countries such as Pakistan, India, and Indonesia. The key question remains: How much will Bangladesh truly gain? The extent of Bangladesh's benefit depends on how well it prepares to seize this opportunity.

The US has imposed an additional 10% tariff on China and 25% on Mexico, prompting apparel buyers to explore alternative sourcing destinations. Instead of hastily increasing capacity, as it did in the past, Bangladesh should learn from its past to map its current production capabilities and expand in a controlled manner. A data-driven approach will ensure factories align with high-value product categories, rather than overproducing cheap garments that yield lower margins.

Expanding without a clear strategy can lead to inefficiencies. The capacity-mapping focus should be on upgrading facilities, improving worker productivity through training, and adopting new technology. Businesses must avoid increasing capacity without securing sufficient demand or diversifying their product range to meet evolving buyer preferences.

Vietnam has become a leader in synthetic fibre-based garments. Bangladesh has already proved its mettle with cotton-based products; if it wishes to maximise the benefit from the opportunity at hand, it must diversify beyond cotton apparel to capture the growing demand for high-end, man-made fibre (MMF) clothing. Investing in advanced manufacturing capabilities will reduce dependence on volatile cotton prices and ensure higher profitability.

Currently, Bangladesh imports most synthetic fibres, increasing costs. Establishing domestic MMF production will enhance competitiveness while reducing reliance on foreign raw materials. Collaborations with research institutions can help drive innovation and quality improvements in MMF textiles. Existing factories must be encouraged to change their product categories to non-cotton, high-value apparel.

Bangladesh must strengthen its supply chain by investing in ports, energy, and transport networks. Reducing bureaucratic inefficiencies and streamlining regulations will enhance efficiency. Partnerships with logistics providers will minimise lead times, making Bangladesh a viable alternative to China and Mexico.

Ensuring a stable fuel and energy supply is also essential.

A business-friendly environment is key to attracting global investment. Bangladesh should encourage Chinese manufacturers to relocate operations and form joint ventures to bring in advanced technology, in addition to placing orders with the home industry. The current dollar scarcity the country is facing may indeed prove advantageous in this instance.

Mexico benefits from proximity to the US, while other countries dominate non-cotton apparel, often capitalising on LDP (landed duty paid) and DDP (delivery duty paid) terms—the two most preferred terms for US customers—over Bangladesh. Bangladesh can, however, compete through cost-efficient, high-quality production and strong ethical sourcing.

Branding Bangladesh as a sustainable and ethical sourcing destination will be crucial. Buyers prioritise environmental and social responsibility when selecting suppliers. Investments in waste reduction, water conservation, and labour rights will enhance Bangladesh's reputation and appeal to global brands.

It is also crucial for Bangladeshi suppliers to choose their buyers prudently. Similarly, it may be advantageous to convince buyers to send high-end products to Bangladesh by demonstrating profits from saved tariffs. This would create a win-win situation, provided that Bangladeshi suppliers can pitch themselves compellingly.

The author is a former director of the Bangladesh Garment Manufacturers and Exporters Association.​

 

[Saif]

Unit prices of Bangladesh’s RMG exports to the EU fell in 2024

Bangladesh’s readymade garment (RMG) exports to the European Union grew in 2024, but exporters saw unit prices decline as the growth in volume outpaced the increase in value.

www.thedailystar.net

Unit prices of Bangladesh’s RMG exports to the EU fell in 2024

Bangladesh's readymade garment (RMG) exports to the European Union grew in 2024, but exporters saw unit prices decline as the growth in volume outpaced the increase in value.

The South Asian nation's apparel shipments to the EU rose by 4.86 per cent year-on-year to $19.77 billion in 2024, according to Eurostat data.

During this period, Bangladesh exported 1,230.51 million kilogrammes (kg) of readymade garments to the EU, up 10.18 per cent from the previous year's 1,116.77 million kg.

Within a year, the per-unit price fell to $16.07 per kg in 2024 from $16.88 per kg in the previous year, marking a sharp 5 per cent drop.

Meanwhile, the EU's overall apparel imports increased by 1.53 per cent year-on-year in value to reach $92.56 billion in 2024, while the import volume grew by 8.98 per cent, according to Eurostat data.

This resulted in a 6.83 per cent decline in average unit prices, impacting major sourcing countries, including Bangladesh, said Mohiuddin Rubel, additional managing director of Denim Expert Limited.

China remained the largest apparel exporter to the EU, posting a 2.61 per cent export growth to $26.07 billion in 2024. Bangladesh ranked second, followed by Turkey and India.

All four of these countries, along with Vietnam and Cambodia, also saw declines in unit prices.

Bangladesh maintained its position as a key supplier to the EU market, but the decline in unit prices underscores the need for strategies to address profitability concerns amid global price reductions.

Rubel said falling prices highlight the challenges of maintaining profitability.

Several factors contributed to the steady rise in export volume and value growth, including the production of value-added garments, duty-free market access, adherence to workplace safety standards, and the combined efforts of manufacturers and workers.

"These developments bolstered buyers' confidence, enhancing the business environment and fortifying Bangladesh's position as a key player in the export market," he said.

Despite fluctuations throughout the year, with a slow start followed by a surge in the last quarter of 2024, Bangladesh saw substantial year-on-year growth in October, November, and December.

"This positive trend, along with increasing exports, fuelled the current growth trajectory."

While 2024 showed improvement over 2023, earnings still fell short of the levels achieved in 2022.

"Looking ahead, the outlook remains optimistic as work orders are expected to increase, sustaining the growth momentum into 2025. With buyers regaining confidence and expanding their sourcing activities in the country, the growth trend is poised to continue."

Rubel said that while Bangladesh showed resilience in maintaining export volume and value, the data reveals a critical need for strategic shifts for future growth.

"Value addition and market diversification are essential for Bangladesh to secure its competitiveness and safeguard profit margins in the face of persistent global price deflation."​

 

[Saif]

Mental health challenges of female RMG workers

After 1975, Bangladesh saw economic liberalisation leading to the growth of an export-focused ready-made garment (RMG) industry that mainly employs women. With lower wages and little resistance, factory owners maintain a comparatively cheap and stable workforce. The working conditions for these wom

thefinancialexpress.com.bd

Mental health challenges of female RMG workers
Tasfia Rahman
Published :
Feb 26, 2025 22:28
Updated :
Feb 26, 2025 22:28

After 1975, Bangladesh saw economic liberalisation leading to the growth of an export-focused ready-made garment (RMG) industry that mainly employs women. With lower wages and little resistance, factory owners maintain a comparatively cheap and stable workforce. The working conditions for these women are mostly informal, leading to a precarious job environment. The growth of the RMG sector has been influenced by political and economic factors in Bangladesh. Changes in government policies, international buyer pressure, and worker protests have shaped the industry over time.

Recently, there have been significant policy changes in the RMG sector, including updates to minimum wage laws and stricter labour law enforcement following tragedies like the Rana Plaza collapse in 2013. Recent reforms in the RMG sector have been driven by international demands and supply chain regulations. After the Rana Plaza disaster, the Bangladesh government worked with international brands and labour groups to create safety accords. These initiatives aimed to improve factory safety and compliance with regulations. The Accord was followed by the establishment of the RMG Sustainability Council in 2020, which oversees safety measures.

The economic liberalisation of the 1980s coincided with global shifts towards decentralised production. This resulted in more informal jobs with lower wages and fewer benefits. The RMG industry emerged with support from the Bangladeshi government and international institutions. Bangladesh's competitive advantage attracted foreign investment, largely due to a young workforce and weak labour laws. However, this has also led to gender inequalities, with women facing exploitative practices and limited career advancement. About 90 percent of garment workers are women, often uneducated migrants from rural areas, making them vulnerable to exploitation.

Working conditions in Dhaka's garment factories are often poor. Many workers have no formal contracts, leaving work terms unclear and giving employers significant power. Women frequently work over eight hours a day without breaks, especially during peak shipment periods. Factories are often housed in unsuitable buildings due to high land costs. The 2013 Rana Plaza collapse, which killed over 1,000 workers, highlighted these unsafe conditions. Factory spaces are cramped, and access to restrooms is inadequate. Fire safety measures are often lacking, as seen in the 2012 Tazreen Fashion factory fire.

While workers are supposed to have an eight-hour shift six days a week, many work overtime until late at night to meet deadlines. In most cases, there are no formal contracts, leaving job terms ambiguous. Workers sometimes go an entire month without a day off, despite laws stating no one can work more than 10 consecutive days without a break. Breaks are often shorter than required, and most workers are paid at unskilled labourer rates, regardless of their skills or roles.

Gender and labour dynamics within the global economy are essential to understanding the challenges female RMG workers face. Globalisation has intensified gender inequality by embedding patriarchal structures in labour markets. In Bangladesh's RMG sector, this manifests as exploitative practices and limited economic opportunities for women.

There is also a strong connection between labour conditions and mental health, particularly concerning workplace stress. High job demands combined with low autonomy can lead to significant mental health issues. This is especially relevant for women in low- and middle-income countries, where precarious labour conditions and poverty are cyclical. The gendered nature of labour-related mental health disparities highlights the importance of understanding their broader implications.

Global economic pressures, particularly from international buyers, significantly impact labour conditions. The shift to low-wage labour in developing countries is well-documented. International buyers often drive down wages and labour standards, affecting worker well-being. In Bangladesh's garment sector, international buyer pressure is pronounced, as seen in comparisons between the effects of buyer power in Bangladesh and Vietnam. Understanding local labour conditions requires considering the global economic forces at play, including pressures from international buyers.

The work is physically demanding, requiring continuous use of machines. This leads to chronic pain and illness, and workers often lack the freedom to take breaks. They face pressure to work overtime to meet shipment deadlines, causing additional stress.

Workers feel alienated from their jobs. Many do not fully understand the production process and thus lack pride in their work. However, some coping mechanisms have emerged due to changes in government regulations, such as improved labour laws, sick leave, and maternity leave, which have contributed to reducing stress levels.

The workplace is not the only source of stress; living conditions also contribute. Workers struggle to find affordable housing near factories, sometimes resulting in long commutes. Limited income restricts transportation options, increasing stress. The government has raised the minimum wage to address labour concerns, but it remains insufficient to cover living expenses. Many workers live in overcrowded conditions. Social support plays a crucial role in coping. Family members often assist with childcare and household responsibilities, providing emotional support. The introduction of mobile financial services allows workers to send money home easily, improving their ability to support their families. Stress and coping mechanisms are shaped by systemic constraints, including poor labour conditions, social stigma, and economic pressures. These factors create a challenging environment for female RMG workers, leading to high levels of stress.

To enhance the well-being of female RMG workers, recommendations include promoting gender equality, reducing stigma, improving workplace culture, integrating mental health services, and ensuring compliance with labour laws. The following actions must be taken:

1. Enhancing Coping Mechanisms: Encourage equal participation of men in household responsibilities through incentives. Educational workshops can promote shared caregiving roles.

2. Removing Stigma: Address negative stereotypes about female RMG workers through community engagement and campaigns that highlight their contributions to the economy.

3. Improving the Workplace Environment: Create a collaborative work culture through peer mentoring and transparency in decision-making processes.

4. Integrating Mental Health Services: Provide accessible mental health support through mobile platforms and on-site counselling.

5. Strengthening Labour Laws: Collaborate with international organisations to enforce labour standards and promote ethical certifications for factories.

The interplay of gender, mental health, labour conditions, and social stigma reveals complex challenges for female RMG workers in Bangladesh. Addressing these issues requires holistic interventions to promote gender equality, mental health support, and transparent labour practices. These recommendations aim for both personal and systemic empowerment.

The writer is Research Fellow, Moulovibari Research and Partnership Hub (MoRPH), Tangail, Bangladesh​