[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Commerce ministry requests NBR to restrict yarn imports through land ports

The commerce ministry stated that yarn imports via land ports have caused significant losses to the domestic textile industry

www.thedailystar.net

Commerce ministry requests NBR to restrict yarn imports through land ports

The commerce ministry has suggested the revenue authority take steps to restrict yarn imports through land ports to protect the local textile and spinning sector.

In a letter to the National Board of Revenue (NBR) on March 27, the commerce ministry stated that yarn imports via land ports have caused significant losses to the domestic textile industry.

It said that lower values of yarn imported through land ports are declared compared to yarn imported through Chittagong port.

Local manufacturers are unable to compete with the yarn imported through land ports.

As such, it recommended the NBR take measures to bar imports through the land ports.

Last week, textile millers urged the government to take action, stating that the domestic yarn industry is struggling to survive.

Yarn imports from India are permitted through seaports and four land ports—Benapole, Sonamasjid, Bhomra, and Banglabandha.

The government had allowed yarn imports through these ports in January 2023 to meet a sudden surge in demand following the Covid-19 pandemic.

Currently, yarn worth around Tk 100 billion is stockpiled in local mills, as India continues to dump yarn at lower prices, millers said.​

 

[Saif]

Do I really need that new piece of clothing?

The true cost of clothing is paid by our polluted rivers and environment.

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Do I really need that new piece of clothing?

The global fashion industry produces 92 million tons of textile waste, and one extra clothing purchase contributes to that. FILE PHOTO: PALASH KHAN

In the grand scheme of things, with rising expenses for everything else, clothing often does not seem like a thing to consider or bother about. Although the days of Tk80 t-shirts seem like a thing of the past, the cost of clothes isn't a burning issue for us. There are always options for different buyers, from broke students to the handful luxury item purchasers.

Let's go through the life of a t-shirt. For a typical Bangalee, the t-shirt will stay with its owner for a few years, with maybe around a hundred or so washes, and then it will eventually end up as a rag to clean the house. And one day, it will be too torn up and washed up to even use as a cleaning rag. And when it is thrown away, someone else will use it in some other way.

While the life-cycle for a single t-shirt seems nice, imagine the mounds of thrown-away t-shirts when every single person owns not one but an increasing number of t-shirts, oblivious to the true cost of clothing. The true cost might not come from our pockets directly, but the price is paid by our rivers and our environment that have been polluted through the entire clothing-making cycle. The cost of clothing is always hidden in its lifecycle, something we never really think about much.

The average person today buys 60 percent more clothing items than they did 15 years ago, while keeping each garment for half as long, according to the United Nations Environment Programme (UNEP). Textile matters because it is an integral part of human life. Responsible use of textiles is something that each person in this world should be accountable for, be it from a consumer's perspective or from a producer's perspective.

March 30, 2025, will be observed as the International Day of Zero Waste with the theme "Towards zero waste in fashion and textiles." The global fashion industry significantly contributes to resource consumption and carbon emissions, requiring 79 billion cubic meters of water annually (about 20 percent of the world's total water consumption), generating 1.7 billion tons of carbon dioxide (almost 10 percent of the world's total carbon dioxide emissions), and producing 92 million tons of textile waste (equivalent to a truckload of clothing being incinerated or sent to landfills every second).

When big celebrations like Eid come up, we purchase a lot for our loved ones, limiting our behaviour only through a monetary lens. When was the last time you asked yourself if your favourite designer/ brand had thought about the sustainability and durability of the clothing, reducing waste in the production process, using sustainable and non-toxic materials and providing fair wages to their suppliers? I, myself, seldom think about these perspectives while purchasing that really cool kameez set, or when I am swayed by that gorgeous piece of saree, or when that influencer is swaying my decision to purchase something needlessly. It's just a piece of clothing, and for some reason, I really "need" it. I do not think about its life with me.

The model of fast fashion is the leading cause of clothing waste. Remember how I said that I really "need" that piece of clothing? Our surroundings have been propagating this cycle of overconsumption, making us purchase the next thing and the next and then the next. By simply saying no to fast fashion, we can make the biggest impact! Question whether you truly need this purchase and if you will wear this at least 30 times. This "30 wears" test helps break the habit of impulse purchasing.

When you cannot wear the item 30 times (it happens; who is going to wear that poofy lehenga 30 times?), invest in higher quality, durable items that last longer. When possible, explore secondhand options first, without stigma! The habit of swapping clothes in your networks is also an excellent one. The environmental impact of a second-hand purchase is dramatically lower than buying new, as it requires no additional manufacturing resources.

Material selection is also very important when we do customise our own clothing. When we choose dark coloured clothing, especially black, it can hide stains and requires less washing, whereas lighter colours show stains more, eventually leading to higher washing and faster replacement. Light coloured clothes typically require more intensive bleaching and chemical processing during their manufacturing to achieve this bright colour, which means more chemicals are leached into the environment while they are produced.

Choose natural fibres like linen, which requires less water than cotton and can thrive without intensive pesticides or fertilisers, alongside other not-so-common options like hemp, which requires fewer chemicals to produce. Avoid synthetic materials like polyester in your fabric which shed microplastics on washing.

And for the eventuality of disposal, never discount how helpful repurposing your textiles is. Turn it into a kantha or quilt; remake that old saree into a dress!

Consumers are not the only group with a responsibility to do better, it is also on the producers to rethink the way they produce clothing. For designers and clothing producers, sustainable thinking can enhance their creativity. Reducing waste starts at the beginning, with every scrap of clothing saved, when materials are selected sustainably and with innovation focus. Even fabric scraps can be reincorporated into new products through techniques like fibre recycling, among others.

Achieving zero waste in fashion requires collaboration between producers and consumers. This symbiotic process can only start when we start thinking about the "real" cost of our textiles.

Let's ask ourselves the next time we make bulk purchases, "Do we really need that extra piece of clothing?"

Raida A. K. Reza is doctoral researcher at United Nations University's Institute for Integrated Management of Material Fluxes and of Resources (UNU-FLORES), Leibniz Institute of Ecological Urban and Regional Development (IOER), and Technische Universität Dresden and the founder of Zero Waste Bangladesh (ZWBD).​

 

[Saif]

Purchase orders may drop by 20–30pc amid US reciprocal tariffs

If the 37 per cent reciprocal tariff remains for four to five years, the consequences for Bangladesh's exports could be devastating.

en.prothomalo.com

Purchase orders may drop by 20–30pc amid US reciprocal tariffs
Staff Correspondent
Dhaka
Updated: 05 Apr 2025, 11: 27

Workers at a garment factory File photo

Shovon Islam, managing director of leading garment exporter Sparrow Group of Industries, held meetings with three buyer companies in the United States last month. The US buyers separately expressed their positive mindset in shifting women’s clothing orders from China to Bangladesh.

In an over-the-phone conversation with Prothom Alo, Shovon Islam said, “After Donald Trump imposed the 37 per cent reciprocal tariff on Bangladesh, I contacted the buyers again regarding the purchase orders. They are now delaying the process, indicating that the orders are now uncertain.”

He continued, “A number of buyers informed us that the demand for readymade garments in the US would subside due to the tariff. If it happens, purchase orders may go down by 20-30 per cent next spring and winter.”

Garment exporters said the immediate impact of the US reciprocal tariff may be limited, but long-term impact on purchase orders could be severe if the tariff remains in place. As the US buyers have already begun recalculating costs, the Bangladesh government should initiate talks with the US without any delay.

If the 37 per cent reciprocal tariff remains for four to five years, the consequences for Bangladesh's exports could be devastating. Abdullah Hill Rakib, former vice-president of the BGMEA.

Regarding the tariff, commerce adviser Sheikh Bashir Uddin told Prothom Alo that it would take a few more days to fully assess the situation and the government’s response. He added that an emergency meeting will be held at his ministry on Sunday to determine the course of action.

Donald Trump, who began his second term as US president earlier this year, had pledged increased tariffs during his election campaign. On Wednesday, he officially announced reciprocal tariffs for around a dozen of countries. For Bangladesh, the US reciprocal tariff is 37 per cent, while it is 26 per cent for India, and 46 per cent for Vietnam.

According to Reuters and Vietnam+, India began reviewing import duties on over 30 US products, including luxury cars, solar cells, and chemicals, earlier this year, in an effort to deal with the US tariff. The nieghbouring nation has reportedly finalised plans to reduce import tariffs on 55 percent of American goods. Meanwhile, Vietnam has already slashed tariffs on 16 types of US products.

Our main competitor in home textiles is Pakistan, which faces a 29 per cent reciprocal tariff – lower than Bangladesh's 37 per cent. Simply, this gives Pakistan a competitive edge. M Shahadat Hossain, former chairman of the BTTLMEA.

In Bangladesh, the readymade garment sector accounts for 80 per cent of total exports, while the US is the single largest export destination, accounting for 18 per cent of garment shipments in the last fiscal year.

Against the backdrop, the reciprocal tariff sparked widespread concern among exporters, including those exporting footwear, leather goods, home textiles, and frozen foods.

Abdullah Hill Rakib, former vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said if the 37 per cent reciprocal tariff remains for four to five years, the consequences for Bangladesh's exports could be devastating. He laid emphasis on initiating negotiations with the US.

Home textiles is another key export product to the US. The country earned nearly USD 50 million from the US market in the last fiscal year. Now, the exporters are fearing a decline in their business due to the new tariff.

“Our main competitor in home textiles is Pakistan, which faces a 29 per cent reciprocal tariff – lower than Bangladesh's 37 per cent,” said M Shahadat Hossain, former chairman of the Bangladesh Textile and Linen Manufacturers and Exporters Association (BTTLMEA). “Simply, this gives Pakistan a competitive edge,” he added.

Shahadat also pointed out other challenges for the sector, including rising gas and electricity prices, reduced cash incentives, and now, the added burden of US tariff.​

 

[Saif]

RMG makers to seek buyers' support in emerging situation

Apparel makers are now considering writing US buyers seeking their patience and support in the wake of the emerging situation over new US tariff regime, insiders said. A number of the leading makers sat on Sunday night to brainstorm as to how they can cope with the situation in support with their

thefinancialexpress.com.bd

RMG makers to seek buyers' support in emerging situation
Monira Munni
Published :
Apr 07, 2025 00:05
Updated :
Apr 07, 2025 00:06

Apparel makers are now considering writing US buyers seeking their patience and support in the wake of the emerging situation over new US tariff regime, insiders said.

A number of the leading makers sat on Sunday night to brainstorm as to how they can cope with the situation in support with their major US buyers.

Meantime, US buyers of the locally made apparel items have started renegotiation with some of their local suppliers with few asking to hold their shipments either in ports or factories while some others seeking price concession, they added.

They, however, expect large volume of buyers' response on Tuesday onwards as Sunday was holiday and apparel sector trade body BKMEA has already asked its members to provide information in this regard.

On the other hand, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is likely to write US buyers requesting them to have patience for a certain period and not to impose any additional cost burdens, like keep orders on hold and price discounts, to suppliers.

The trade body would also inform the buyers about the government's diplomatic engagement with the US authorities to align bilateral trade relationship with the US, they added.

Talking to the FE, AKM Saifur Rahman Farhad, vice president of Bangladesh Garment Buying House Association (BGBA), said one of his US customers has asked for price reduction for an order worth of US$0.3 million while wants to renegotiate for goods worth of US$0.175 million.

Abdullah Al Mamun, owner of Sense Garments BD, said he annually produces 0.2 million pieces of apparel for a US buyer and he already shipped goods for May, goods for June is on the process of shipment.

He, also a member of BGBA, said the buyer has asked for suspension of production scheduled for July and holding the fresh order of 0.22 million pieces of apparel for August.

Expressing concern, he said one of his supplier factories that solely produces goods for the buyers is now in uncertainty over a shipment of 0.3 million pieces of garment scheduled to reach US port within 10 to 15 days.

It is not possible to shift the products immediately, he added.

Both the BGBA leaders called for immediate measures from the government as buyers are also expressing concern as to what Bangladesh government is doing.

"They also want to be assured from our parts," Mr Farhad added.

When asked, Fazlee Shamim Ehsan said he also heard that one of the US buyers has asked a garment maker to hold his production for a week to let them better understand the situation.

Responding to a question, he said they are also likely to write to the buyers seeking their supports in the crisis period.

According to him, BKMEA members have received work orders worth of US$2.75 billion since last October to March.

The United States is the single largest export destination for Bangladesh made exportable products mostly readymade garments.

Bilateral trade between the two countries stood at US$10.58 billion in 2024 with Bangladesh maintaining a healthy trade surplus of US$6.15 billion.

Bangladesh exported goods worth US$8.37 billion to the US in 2024 while the country imported $2.21 billion worth of goods from the US.

Out of Bangladesh's US$8.37 billion exports to the US, apparel items fetched US$ 7.34 billion, according to data.​

 

[Saif]

US loses cotton market share in Bangladesh

The United States is losing its market share in cotton exports to Bangladesh amid concerns about logistics and the lengthy shipment duration for American cotton, according to a recent report by the US Department of Agriculture (USDA).

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US loses cotton market share in Bangladesh

The United States is losing its market share in cotton exports to Bangladesh amid concerns about logistics and the lengthy shipment duration for American cotton, according to a recent report by the US Department of Agriculture (USDA).

Bangladesh's millers imported 7.8 million bales of cotton in the marketing year (MY) 2023-24, beginning in August.

Of that, the share of US cotton, a key raw material for the country's apparel industry, was 9 percent. A year ago, in MY23, the share of cotton imported from America was 10 percent.

During the first seven months of MY25, local importers bought 286,056 bales of cotton from the US. The amount was only 6 percent of the total import of the item, down from 11 percent during the same period a year ago.

The USDA's report came just days before the Trump administration hiked tariffs on goods from 60 countries, including Bangladesh, entering the American market.

Bangladesh's exports will face a 37 percent higher tariff in the US market following Trump's tariff hike, which has created worries among exporters. It also prompted Chief Adviser Muhammad Yunus to write to the US President, promising to significantly increase imports of US farm products, including cotton.

The government is also finalising a dedicated bonded warehousing facility in Bangladesh, where US cotton will have duty-free access, according to the letter.

Citing its industry contacts, the USDA said the quality of US cotton is better than cotton from other sources.

"Many spinning mills in Bangladesh prefer US cotton; however, they always express concerns about the logistics and lengthy shipment duration required to obtain US cotton," it said in its Cotton and Products Annual report released on March 31.

The agency said many cotton merchandisers sell South American and West African cotton while it is afloat.

"This practice helps to reduce the shipment duration. However, US cotton is not sold afloat. Merchandisers also store their cotton in nearby warehouses in ports in Malaysia, Singapore, and Sri Lanka. Cotton from these warehouses can be delivered to Bangladesh in just seven days."

As per the report, West African countries and Brazil gained market share in cotton exports.

The West African countries collectively supplied 1.9 million bales, 41 percent of Bangladesh's total imports during the first seven months of this marketing year, the USDA said.

The US agency said the market share of West African and South American cotton is gradually increasing based on these logistical benefits, which allow importers to take advantage of price shifts.

"As a single country, Brazil emerged as the major raw cotton supplier to Bangladesh during this period," it said. Brazil exported 970,487 bales, comprising 20 percent of the market share, followed by India with 887,600 bales and a 19 percent share.

"Spinners prefer to buy Brazilian cotton due to its competitive pricing, increased availability during the harvesting season, and supply stability. The shipment period is also shorter for Brazilian cotton as it is often sold while it is afloat."

Cotton imports to rise

The US agency forecast an increase in cotton imports by Bangladesh to 8.2 million bales in MY26, up 1.2 percent year on year.

The report, citing industry contacts, said the RMG sector has shown resilience and growth despite recent political upheavals that led to the ouster of Sheikh Hasina's government in August 2024. The unrest led to factory shutdowns and a decline in international work orders. However, the industry has rebounded.

"With law and order restored, international clothing brands have resumed placing new orders since mid-January 2025, fostering optimism among garment exporters, with an increase in work orders from early 2025 boosting the demand for cotton."

"As the RMG industry is expecting a resurgence in work orders, the demand for raw materials, including cotton, will increase," it said.​

 

[Saif]

Garment sector resumes regular production after Eid: BGMEA

Nearly all garment factories under the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have resumed operations following the Eid-ul-Fitr holidays. 2,012 out of 2,024 factories – or 99.40 per cent – have reopened as of Wednesday, UNB reports citing a BGMEA statement i

thefinancialexpress.com.bd

Garment sector resumes regular production after Eid: BGMEA
FE Online Desk
Published :
Apr 12, 2025 18:07
Updated :
Apr 12, 2025 18:07

Nearly all garment factories under the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have resumed operations following the Eid-ul-Fitr holidays.

2,012 out of 2,024 factories – or 99.40 per cent – have reopened as of Wednesday, UNB reports citing a BGMEA statement issued on Saturday.

The highest concentration of garment factories is in the Gazipur and Mymensingh regions, where 851 out of 854 units are currently in operation.

In Savar, Ashulia and Jirani areas, 399 of 403 factories have resumed production. Besides, 186 factories are operational in Narayanganj, 320 in Demra, and 336 in Chattogram.

BGMEA data also reveals that 2,019 factories have already disbursed salaries for February, with only five factories – four in Dhaka and one in Chattogram – yet to do so.

As of now, 2,008 factories have paid salaries for March, either partially or in full. However, 16 factories are still pending full salary payments for the month, and 16 others have only paid partial salaries.​

 

[Saif]

Increase imports of US goods to reduce trade gap: textile millers

They also suggested increasing US content in manufactured goods to 20% to qualify for reduced tariff rates

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Increase imports of US goods to reduce trade gap: textile millers
They also suggested increasing US content in manufactured goods to 20% to qualify for reduced tariff rates

Bangladesh Textile Mills Association President Showkat Aziz Russell speaks at a roundtable on US tariffs, organised by the association at Gulshan Club in Dhaka today. Photo: BTMA

Textile millers and garment exporters today urged the government to increase imports from the US market in order to reduce the trade imbalance between Bangladesh and the United States.

They made the call at a roundtable on "US Tariffs on Bangladesh's Exports: Reciprocal Strategies and Way Forward for Negotiations," organised by the Bangladesh Textile Mills Association (BTMA) at Gulshan Club in Dhaka.

Showkat Aziz Russell, president of the BTMA, proposed leveraging Bangladesh's status as a major importer of American cotton by manufacturing cotton-based garments for duty-free access to the US market.

He also called for robust government support and greater foreign direct investment (FDI) to create employment and enhance competitiveness in the textile sector.

In his keynote, Masrur Reaz, chairman of Policy Exchange Bangladesh, underscored the significance of the recent 90-day deferment on new US tariffs and suggested that stakeholders move beyond diplomacy alone and pursue market-based solutions.

"Bangladesh must act decisively—by engaging buyers and brands, increasing US content in exports, and assessing sector-specific impacts—to secure long-term access to the US market," said Reaz.

The speakers suggested increasing US content in manufactured goods to 20 percent to qualify for reduced tariff rates, and establishing US cotton storage hubs in Bangladesh to streamline imports and eliminate logistical barriers.

They also recommended investing in infrastructure, industrial capacity, and human capital to boost productivity and global market readiness, and encouraging US investment in diversified sectors to expand export offerings.

Including the US private sector in ongoing free trade agreement (FTA) dialogues alongside government efforts was also recommended.

Participants expressed cautious optimism that evolving global trade realignments could open new doors for Bangladesh. However, they warned that inaction could lead to long-term setbacks.

The US remains Bangladesh's largest export destination, accounting for nearly 20 percent of total readymade garment exports, valued at $7.34 billion in 2024.

Hafizur Rahman, administrator to the Federation of Bangladesh Chambers of Commerce and Industry; Anwar Hossain, vice chairman of the Export Promotion Bureau and administrator to the Bangladesh Garment Manufacturers and Exporters Association, attended the event.

Anwar-ul Alam Chowdhury, president of the Bangladesh Chamber of Industries; Abdul Hai Sarker, president of the Bangladesh Association of Banks; and Shamim Ahmed, president of the Bangladesh Plastic Goods Manufacturers and Exporters Association, also attended.

Mohibuz Zaman, managing director of ACI Healthcare Ltd, and Mohammad Helal Mia, chairman of Amanat Shah Group, were also present.​

 

[Saif]

Bangladesh suspends import of yarn via land ports from India

The National Board of Revenue (NBR) has suspended the import of yarn from India through land ports. The facilities for importing yarn through Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari land ports have been revoked.

en.prothomalo.com

Bangladesh suspends import of yarn via land ports from India
Special CorrespondentDhaka
Updated: 15 Apr 2025, 19: 55

The unusual hike in yarn price is impacting the competitiveness of RMG industry BSS

The National Board of Revenue (NBR) has suspended the import of yarn from India through land ports.

The facilities for importing yarn through Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari land ports have been revoked.

The NBR issued a notification in this regard on Tuesday, with immediate effect.

The new notification revises the earlier one issued on 27 August 2024. Yarn was primarily imported from India through these land ports.

Earlier in February this year, Bangladesh Textile Mills Association (BTMA), an organisation representing textile industry owners, demanded the suspension of yarn imports from India via land ports.

Subsequently, in March, the Bangladesh Trade and Tariff Commission, under the commerce ministry, recommended that the NBR takes measures to halt yarn imports via land ports in order to promote the use of domestically produced yarn in the garment industry.

In a letter addressed to the NBR chairman, the tariff commission suggested continuing yarn imports through seaports as before, until appropriate infrastructure is developed in all land and rail routes, land ports, and customs houses adjacent to the borders to determine yarn count in accordance with international standards, thereby ensuring the protection of the domestic textile industry.

In response, NBR chairman Abdur Rahman Khan issued an order in this regard. However, the import of yarn may still be carried out via sea or other non-land routes.

Sources said yarn produced in the northern and southern regions of India is stored in warehouses in Kolkata before being transported to Bangladesh. This yarn enters the country at relatively lower prices. As a result, yarn imported via land ports has been used more extensively than locally produced yarn.

The Bangladesh Textile Mills Association (BTMA) has claimed that this has caused significant harm to the domestic textile industry.

Sources further indicate that although the prices of yarn produced in China, Turkey, Uzbekistan, and Bangladesh are relatively similar, Indian yarn imported via land ports is significantly cheaper.

In fact, the prices of yarn imported through land ports are much lower than the prices declared at the Chattogram customs house. Consequently, domestic yarn manufacturers are struggling to remain competitive in the market.​

 

[Bilal9]

US thread supplier opens new manufacturing facility in Ctg​

The facility is expected to increase production capacity, improve service levels, and shorten lead times, enabling A&E to deliver high-quality thread products more efficiently, the company said in a blog post on 20 March​

Global thread supplier American & Efird (A&E) has officially opened its 24th production facility in Chattogram, marking a milestone in its global expansion.

According to the yarn manufacturer, this new state-of-the-art facility will strengthen A&E's manufacturing network and increase its capacity to meet the growing demand for innovative thread solutions across Bangladesh and South Asia.

Strategically located near Chattogram's bustling seaport and financial hub, the new plant complements A&E's existing operation in Gazipur, further cementing the company's commitment to the region.

The opening was celebrated with a ribbon-cutting ceremony attended by key industry figures, customers, suppliers, partners, and government officials.

Guests were given a tour of the facility, which features cutting-edge technologies and scalable production processes.

The facility is expected to increase production capacity, improve service levels, and shorten lead times, enabling A&E to deliver high-quality thread products more efficiently, the company said in a blog post on 20 March.

Jeffrey P Pritchett, CEO of Elevate Textiles (A&E's parent company), expressed his enthusiasm, saying, "This facility enhances our ability to support customers globally while maintaining A&E's high standards of excellence. It reflects our long-term growth vision and commitment to providing innovative thread solutions."

He added, "The new facility features advanced production lines for spun and filament threads, incorporates green technologies to reduce environmental impact, and will serve as a regional hub for innovation, focusing on sustainable thread solutions."

In addition to strengthening A&E's manufacturing base, the new plant will create more than 350 local jobs, contributing to economic growth in the region.

Chris Alt, president of A&E, said, "This facility will allow us to meet the growing demand for our thread and specialty yarn products with greater speed and precision."

Angelo Leanage, managing director of A&E South Asia, emphasised that the facility's impact goes beyond production, with benefits for social development and regional growth.

"With this expansion, we continue our mission of delivering high-quality products and services while fostering economic progress in the region."

According to the company, this new plant is a key part of A&E's broader strategy to strengthen its leadership position in the global textile industry, building on a legacy of excellence that dates back to 1891. The Chattogram facility is set to play a pivotal role in shaping the future of thread solutions for the textile sector.

 

[Saif]

RMG exports grew 10.84pc in July-March

The country’s readymade garment exports witnessed a healthy growth of 10.84 per cent during the July-March period of the current financial year fetching $30.25 billion that highlights the resilience and potentials of the apparel sector...

www.newagebd.net

RMG exports grew 10.84pc in July-March
Bangladesh Sangbad Sangstha . Dhaka 17 April, 2025, 22:26

New Age file photo

The country’s readymade garment exports witnessed a healthy growth of 10.84 per cent during the July-March period of the current financial year fetching $30.25 billion that highlights the resilience and potentials of the apparel sector.

This was revealed since the Export Promotion Bureau recently published the country-wise export data for the July-March period of the financial year 2024-25.

The data revealed that the European Union continues to be a pivotal market, which represented 49.82 per cent of Bangladesh’s total RMG exports, with a total value of $15.07 billion.

Exports to the United States reached $5.74 billion, representing 18.97 per cent of the total share, while Canada totalled $963.85 million with a 3.19 per cent market share, and the UK market was also important, with exports worth $3.36 billion, which is 11.10 per cent of Bangladesh’s total RMG exports during the specified period.

Regarding growth, Bangladesh’s RMG exports to the EU grew significantly by 11.31 per cent year-over-year, with the USA demonstrating a strong increase of 17.23 per cent and Canada registering an increase of 15.66 per cent. However, RMG exports to the UK exhibited a more modest growth rate of 4.14 per cent.

Within the EU, Germany stood out as a significant market, with Bangladesh’s exports valued at $3.80 billion, followed by Spain at $2.65 billion, France at $1.65 billion, Italy at $1.17 billion, Poland at $1.26 billion, and the Netherlands at $1.61 billion.

Growth rates were especially notable in Germany (10.72 per cent), France (10.75 per cent), the Netherlands (23.15 per cent), Poland (10.32 per cent), Denmark (12.80 per cent), and Sweden (19.96 per cent).

Bangladesh’s RMG sector also showcased growth in non-traditional markets, with an overall rise of 6.66 per cent, where total exports reached $5.12 billion, capturing 16.93 per cent of Bangladesh’s total exports, indicating potential for further expansion.

Among these markets, Japan led with imports totalling $960.45 million, followed by Australia at $653.64 million and India at $535.15 million.

Exports to countries such as Turkey and Mexico are significant as well, amounting to $357.22 million and $251.22 million, respectively, with a commendable growth rate of 20.45 per cent by India, 10.06 per cent by Japan, 23.44 per cent by Mexico, and 32.54 per cent by Turkey.

While growth in Japan, Australia, India, Turkey, and Mexico is positive during this timeframe, exports to Russia, Korea, the UAE, and Malaysia have diminished.

Negative growth in the UAE, Malaysia, and Korea suggests the need for further efforts in these markets.

The knitwear sector has shown a total growth of 11.22 per cent, while growth has suffered particularly in non-traditional markets. The woven sector has also seen a growth of 10.40 per cent, with slower growth in the UK but considerably higher growth in non-traditional markets.

The ongoing growth in exports significantly depends on the EU and USA, which continue to be the main markets for Bangladesh, indicating further potential within these areas.

Talking to BSS, Mohiuddin Rubel, former director, BGMEA, managing director, Bangladesh Apparel Exchange and additional managing director, Denim Expert Ltd, said it shows the significance of the major/traditional markets in our total export growth.

‘The moderate growth in the non-traditional market underscores the importance of further research and focus in this category, as it possesses substantial growth potential, which will also help to balance reliance on traditional markets,’ he said.

Rubel also said that persistent global trade tensions are constantly reshaping the global environment, creating opportunities that Bangladesh could take advantage of.​

 

[Saif]

Rethinking Bangladesh’s garment exports

SINCE Donald Trump took office once again as the 47th president of the United States, the re-imposition of tariffs on global imports has brought the issue of trade wars back to the forefront of policy and academic debate. While the first Trump presidency initiated the use of tariffs and...

www.newagebd.net

Rethinking Bangladesh’s garment exports
Muhammad Mohiuddin 18 April, 2025, 00:00

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

SINCE Donald Trump took office once again as the 47th president of the United States, the re-imposition of tariffs on global imports has brought the issue of trade wars back to the forefront of policy and academic debate. While the first Trump presidency initiated the use of tariffs and non-tariff barriers — including the restriction of access to strategic technologies — to target Chinese firms, these measures did not abate under president Joe Biden. On the contrary, the policies were sustained and expanded in scope. The resurgence of Trump in 2025 signals an even more determined pursuit of this agenda, with wider implications across the global trading landscape.

Though widely criticised, particularly by trade liberalists, these policies cannot be analysed in isolation from the broader trajectory of American industrial history and the socioeconomic imperatives now confronting the United States. Amid growing concerns about stagnation, inequality and dependency on foreign manufacturing, reindustrialisation, domestic entrepreneurship and innovation have re-emerged as political priorities. This reconfiguration of the global trade order will likely persist, with long-term effects on global value chains (GVCs). It is thus imperative for countries like Bangladesh to rethink their positioning within global value chains — adjusting both upstream and downstream engagements based on geopolitical shifts and national capacities.

The very logic of the global production network is undergoing revision. Economic efficiency and cost optimisation, once paramount, now coexist with geo-economic and strategic calculations. China, targeted most aggressively since the first wave of Trump-era trade interventions, has shown considerable agility in adapting its supply chains. Yet, not all economies are equally equipped to respond in kind.

Until 2022, China held the position of the United States’ largest import source, accounting for 21 per cent of total imports. Recognising early the redirection of American trade priorities, China strategically reduced its exposure to the US market and redirected a growing share of its exports to the global South. Presently, over half of China’s exports are absorbed by developing markets, signifying a historic shift. Meanwhile, the ‘Made in China 2025’ initiative — backed by substantial investment in domestic technology — has begun to yield tangible results. At the same time, the Belt and Road Initiative has expanded China’s infrastructural and commercial influence far beyond its borders.

Despite formidable restrictions, such as the CHIPS Act and export controls preventing Dutch firm ASML from supplying critical semiconductor technology, China has responded with robust research and development investments, an assertive expansion into artificial intelligence and nanotechnology, and a realignment of its export strategy. As a result, the US share in Chinese exports has fallen from 22 per cent to 15 per cent, demonstrating China’s evolving resilience.

Bangladesh, of course, is not China. It lacks the same technological base, resource endowment, and geopolitical leverage. Nonetheless, there are instructive lessons to be drawn from China’s response, particularly around trade diversification, technological self-sufficiency and strategic engagement with emerging markets. Bangladesh’s rise as the second-largest exporter of readymade garments owes much to its role in global value chains, especially in the labour-intensive, low-cost manufacturing segment. However, this model is now under severe strain.

Over four decades, the structural conditions of the RMG sector in Bangladesh have remained largely unchanged. The industry relies heavily on imported intermediate inputs, is overly dependent on lead firms based in developed countries, and focuses predominantly on two key export markets — the European Union and the United States. This concentration exposes the industry to significant external shocks, such as the current wave of tariff impositions. But these vulnerabilities are not new. Even before the trade war, the sector was grappling with existential challenges: political instability, loss of preferential treatment post-LDC graduation, lack of value addition and intensifying global competition.

The tariff shock has merely underscored the urgency of long-overdue reforms. A strategic recalibration is essential, starting with the diversification of sources for raw materials and intermediate inputs. Bangladesh must reduce its dependence on China and India by exploring alternative suppliers. There is untapped potential in Pakistan, the Central Asian republics and even the United States for procuring textiles and cotton. Several Central American countries, for instance, use US-grown cotton to manufacture RMG products for export back to the US, enjoying duty-free, quota-free access under trade agreements. A similar arrangement could be pursued by Bangladesh, thus embedding its exports more strategically within US supply chains and incentivising American policymakers to reconsider punitive tariff measures.

In an era where economic nationalism defines trade policy, appealing to fairness alone is insufficient. Demonstrating business value to the American economy is essential. A mere diplomatic appeal for tariff waivers will not suffice. Trade engagement must be backed by tangible economic logic.

To this end, Bangladesh’s RMG sector must also move away from its traditional dependency on low-cost, labour-intensive manufacturing. Investment in skill development, technology adoption and product upgrading is no longer optional. Public policies must create an enabling environment for the industry to climb the value ladder. Targeted incentives for research, design, and innovation, as well as improved training infrastructure, can help Bangladesh attract companies looking to relocate from China and Vietnam.

Beyond production upgrades, strategic reforms are required in trade policy. Export market diversification remains an urgent priority. Many African and South American economies have a growing demand for RMG products — demand which is currently being met indirectly through intermediaries in Dubai or Europe. Directly accessing these markets, through bilateral agreements or business-to-business initiatives, would reduce Bangladesh’s exposure to developed markets and enhance profitability.

Similarly, Bangladesh must better engage with the Gulf Cooperation Council market. At present, economic relations with Gulf states are dominated by low-skilled labour migration. Indian traders dominate RMG exports to the region. Bangladesh has yet to fully explore this potential, despite its existing cultural and religious ties to the Gulf. With strategic diplomacy and logistical investments, the Gulf Cooperation Council could become a key growth area for Bangladeshi exports.

Another critical front is economic diplomacy with neighbouring giants India and China. Bangladesh faces steep trade deficits with both, and non-tariff barriers continue to restrict market access. Negotiating the removal of such barriers, especially for RMG and other manufactured goods, could dramatically alter Bangladesh’s export dynamics. In such efforts, trade negotiation teams must include professionals with deep sectoral expertise rather than relying solely on bureaucrats.

Simultaneously, the policy community must prepare for the post-LDC transition. Graduation to lower-middle-income status brings not only reputational gain but also the erosion of trade preferences. Bangladesh should proactively negotiate phase-out periods or transitional arrangements that delay the imposition of new tariffs. Moreover, bilateral free trade agreements with major export destinations — particularly the EU and the US — must be explored. Unlike free tariff agreements with direct competitors, free tariff agreements with advanced economies are unlikely to result in market flooding. Rather, they can enhance Bangladesh’s competitiveness in sectors where it holds comparative advantage. Careful due diligence and market analysis are needed to evaluate the terms of such agreements.

If successfully negotiated, such agreements could unlock not only preferential access but also attract greater foreign direct investment in high-tech sectors. Foreign direct investment inflows, accompanied by technology transfer and management know-how, could significantly raise the productivity and value addition of Bangladesh’s RMG sector. This will be crucial as low-cost mass production becomes increasingly unviable for many competitors, including China and Vietnam, where wage and compliance costs are rising.

Importantly, competitiveness in RMG does not hinge solely on labour costs. Labour contributes merely 18–20 per cent of total production costs. Infrastructure, logistics, administrative efficiency, and financial services all play a critical role. Improvements in port operations, customs administration, banking, and regulatory institutions are therefore vital. Without such structural reforms, gains in productivity and scale will remain constrained.

In conclusion, the trade war presents both a threat and an opportunity for Bangladesh’s RMG industry. While the crisis exposes structural weaknesses, it also provides a pivotal moment to rethink the country’s place in global trade. Through investment in skills, infrastructure, technological capacity and strategic diplomacy, Bangladesh can transform external pressures into a catalyst for sustainable growth. What is required now is not just policy realignment but a national vision for industrial upgrading and global integration — one that anticipates change rather than merely reacts to it.

Dr Muhammad Mohiuddin is a professor of management at Laval University, Quebec, Canada.​

 

[Saif]

BGMEA enrolls 128 new RMG factories

About 113 readymade garment factory units under the membership of the Bangladesh Garment Manufacturers and Exporters Association have been closed in the last 15 months, from January 2024 to March 2025...

www.newagebd.net

BGMEA enrolls 128 new RMG factories
113 units closed in 15 months

Saddam Hossain 19 April, 2025, 22:53

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

About 113 readymade garment factory units under the membership of the Bangladesh Garment Manufacturers and Exporters Association have been closed in the last 15 months, from January 2024 to March 2025.

According to a source from the BGMEA, about 128 new factories received BGMEA memberships during this time.

The source also said that about 96,104 workers lost their jobs during the mentioned period, while about 74,081 workers got new employment due to newly established factory units.

In the meantime, the RMG exports also witnessed a healthy growth of 10.84 per cent to $30.25 billion in the July-March period of FY25, according to the Export Promotion Bureau data, meaning the operational situation is almost normal in the sector.

Industry insiders said that entry and exit in the private sector are very common and occur every year, though recent political discourses have fueled this.

After the ousting of the then prime minister, Sheikh Hasina, in August, 69 factory units were closed permanently from August 24 to March 25.

The industry people said that the factory units were shut down for several reasons: excessive and abnormal bank loans, hiding of the owners, lack of work orders, and interruption in gas and energy supply.

Moreover, most of the closed factories were in the small and medium category, which lost its competitiveness long ago.

Due to political changes in August 2024, some notable factories closed due to their close ties with the ousted government, which resulted in them receiving abnormal loans from the banks.

Meanwhile, the labour leaders said that more than 1 lac initially unemployed people were able to find new workplaces, and about 75,000 of them were able to, meaning about 30,000-40,000 workers are still unemployed.

Talking to New Age, Faruque Hassan, former president of the BGMEA, said that political and economic factors have contributed to the recent shutdown of several factories.

He also said that several cases of labour unrest and internal management issues have led to factory closures.

Moreover, some factories faced order cancellations or failed to secure regular work, making paying gas and other utility bills challenging.

The stakeholders also said that in some politically sensitive situations, owners were absent from their factories due to ongoing complications, while carrying large outstanding loans from banks.

During the previous government›s tenure, many owners had relatively easy access to bank loans.

However, following the political shift, they no longer received the same level of support from financial institutions.

For these reasons, the units could not sustain their operations.

Former BGMEA President Faruque Hassan said it is important to note that during the same period, many new factories have started operations, gained BGMEA membership, and created new employment opportunities.

‘Every year, some factories shut down while others open—this is part of the natural cycle of a large industrial sector,’ he added.

But this time, he added that the closures of factories owned by a few well-known figures after the political transition have made the issue more prominent.

The industry people said several RMG factory units were closed due to financial difficulties, political instability, and the absence of owners.

The political change affected factories owned by people closely associated with the ousted Awami League government.

Factory owners, such as Beximco and Nassa, were either in hiding or in custody, which led to the closure of factories.

Moreover, a number of factories, such as TNZ and Generation Next closed due to financial crises or utility issues.

Talking to New Age, Nazma Akter, president of the Sommilito Garments Sramik Federadtion, said that more than 1 lac workers lost their jobs due to the factories’ closure.

‘However, about 75,000 workers entered their new workplaces. We want the government should take initiatives to make working opportunities for the rest of the workers,’ she added.

Former BGMEA Director Mohiuddin Rubel told New Age that the newly opened factory units have already recruited the skilled workers of closed factories.

He also said that the pattern of RMG industrialization has changed, as the number of small factories is decreasing while the number of large-scale factories is increasing.

‘The causes of the factory closure are mixed like utility issues, absence of owners which led a weak management, lack of orders,’ he added.

However, he said that the government should focus on small factories so that they can survive.

Talking to New Age, Professor Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue, said that a number of factories have been struggling for the past few years.

‘Especially, small factories suffered most due to less competitiveness and global economic issues. After the political changes, owners of a number of factories were in hiding, which also impacted them,’ he added.

He also said that entry and exit are normal issues in the private sector. If the factory cannot repay the loans, the government has nothing to do.

‹The government can ensure the rights of the workers so that they can get their benefits. Government must assess the viability and sustainability of every steps,’ he added.

He also urged the government to normalize the law and order situation, diversify products, and increase efficiency and worker skills.​

 

[Saif]

Garment exports to US grow 17%

Bangladesh shipped apparels worth $5.74 billion in the July-March period to the USA

www.thedailystar.net

Garment exports to US grow 17%
Bangladesh shipped apparels worth $5.74 billion in the July-March period to the USA

Bangladesh's garment exports to the United States grew by 17.23 percent during the July-March period of fiscal year (FY) 2024–25, according to the latest data published by the Export Promotion Bureau (EPB).

The increase comes amid concerns over reciprocal tariffs imposed by the Trump administration in early April, as the US is the country's largest single-country export destination for readymade garments.

During the nine-month period, the US accounted for 18.97 percent of Bangladesh's total garment exports, with shipments valued at $5.74 billion, EPB data show.

Overall, Bangladesh's RMG exports stood at $30.25 billion in the first three quarters of FY25 -- up 10.84 percent from the same period a year earlier.

The European Union maintained its position as the largest regional destination, taking in 49.82 percent of total RMG exports, worth $15.07 billion.

This marks a year-on-year increase of 11.31 percent.

Germany led the EU market with imports worth $3.80 billion, followed by Spain, France, the Netherlands, Italy and Poland.

The Netherlands recorded a 23.15 percent rise in imports, while France, Sweden and Denmark also posted solid growth.

The United Kingdom, a traditional stronghold for Bangladeshi garments, imported $3.36 billion worth of products -- 11.10 percent of total exports.

However, growth in the UK market remained modest at 4.14 percent.

Exports to non-traditional markets grew by 6.66 percent, reaching $5.12 billion and making up 16.93 percent of total RMG shipments.

Japan led this category with imports valued at $960.45 million, followed by Australia and India.

Among other key destinations, Turkey imported $357.22 million worth of garments, while exports to Mexico stood at $251.22 million.

Despite encouraging performances in several emerging markets, exports to Russia, South Korea, the UAE and Malaysia declined.

The fall in Russian demand is widely attributed to geopolitical tensions, while softer performances in the UAE, Malaysia and Korea indicate the need for renewed commercial engagement.

By product type, knitwear exports grew by 11.22 percent, though gains in non-traditional markets slowed.

Woven garments saw a 10.40 percent increase, buoyed by rising demand in less conventional markets even as growth in the UK remained subdued.​

 

[Saif]

https://thefinancialexpress.com.bd/views/columns/is-fdi-a-boon-or-bane-for-rmg-sector

Is FDI a boon or bane for RMG sector?
Wasi Ahmed
Published :
Apr 22, 2025 23:05
Updated :
Apr 22, 2025 23:05

The question of whether Foreign Direct Investment (FDI) in Bangladesh's readymade garment (RMG) sector is ultimately beneficial remains unresolved. Industry stakeholders and policymakers have yet to provide a definitive stance. There are foreign collaborations, but not in the form of any large-scale FDI. However, the government's efforts to attract FDI in both within and outside the Export Processing Zones (EPZs) is not industry-specific, and hence not meant to exclude any specific manufacturing sector beyond the scope of investment. The key question remains: is FDI outside the specialised zones a welcome proposition?

In recent years, Bangladesh has emerged as a viable destination for industrial relocation, especially from countries like China, Japan, and South Korea. Rising labour costs in those economies have prompted many manufacturers to seek alternative locations for setting up export-oriented industries. Bangladesh, despite infrastructure and governance challenges, offers competitive advantages such as low wages, abundant labour force and experience in mass garment production. Among all manufacturing sectors, the RMG industry stands out as the most promising candidate for attracting overseas investment. Industry observers argue that FDI in this area could generate multiplier effects across various related sectors-logistics, packaging, accessories, and more.

However, local RMG manufacturers remain wary of such developments. It can well be guessed that much of the concerns of the local manufacturers stem from the fear that if the government allows unconditional approval to foreign investment in the RMG sector, there might be serious competition in the low-end segment products---the key strength of Bangladesh's apparel industry. This fear is further heightened by the fact that China has already made it known that producing low-end apparels is no longer viable in that country, because of soaring wages. So, provided with adequate opportunities, chances of relocation of Chinese factories for low-end products are high.

In view of this, stakeholders are more inclined to confine foreign investment to the garment sector and the EPZs only. As for investment outside the EPZs, they reportedly agreed some time ago to accept foreign investment outside the EPZs on condition that those factories will produce fashion items for non-traditional and new markets like Russia, Brazil, China, South Africa, India, Australia and Mexico.

The country's RMG sector is now in a state of uncertainty, if not of panic. Although exports did not suffer any major setback due to the fallout of the Covid 19 and the Russia-Ukraine war on global markets and some ups and downs in export orders coming to Bangladesh, the sector did demonstrate strong resilience that eventually paid to ride out the problems of supply chain disruptions and market instability. However, in order to further strengthen the foundation of the industry, experts including foreign buyers stress upon the need for expanding and diversifying the manufacturing base in ways that will be beneficial to the local industry and the country's economy. Is FDI the right recipe in this regard?

In the recently held investment summit, the deliberations mainly centred on economic zones including what the country is ready to offer to investors in those zones. Since the event was organised by the Bangladesh Economic Zones Authority (BEZA), the focus was obviously to attract prospective investors to those zones - some of which are country-specific.

There are quarters in the country who fear foreign investment in the RMG outside the SEZs and EPZs might pose genuine threat to the sector. Looking at the scenario simplistically may not help, as there are counter-arguments that may reveal that the fear of the local manufacturers is more from better wage prospects for workers in the foreign factories, which in turn will have its effect on the local factories.

Notably, the local manufacturers at the moment are rigid in their stand on wages. The rigidity of domestic entrepreneurs on wage issues has often been a contentious topic, particularly in labour rights discussions. Allowing foreign investment in low-end segments could, they fear, disrupt the wage equilibrium and create labour unrest in existing factories. So, according to them, inviting foreign investment in the basic and low-end segment of apparels would call for undesirable chaos. In this context, critics are at ease to raise the all-important question: if foreign investors can afford to pay better and still make profits, why not the locals?

Given these complexities, any decision to allow FDI in the RMG sector - particularly outside EPZs -must be preceded by a comprehensive consultation process. Engaging local stakeholders, especially domestic manufacturers, will be critical in finding a workable solution. It is also essential to involve think tanks, policy analysts, and industry experts to weigh the broader implications of such a policy shift.

Bangladesh's RMG sector is at a crossroads. While FDI could act as a catalyst for transformation and long-term competitiveness, unregulated or poorly managed foreign entry could disrupt the delicate balance the industry has maintained over decades. A thoughtful, strategic approach - rooted in inclusive dialogue and clear regulatory frameworks - will be essential to ensure that FDI complements rather than competes with local industry.​

 

[Saif]

Textile giant Bangladesh pushed to recycle more waste

Bangladesh’s limited capacity to deal with the enormous waste generated by its textile sector may prove unsustainable as the global fashion industry faces pressure to reduce its environmental footprint. Bangladesh, the world’s second-largest apparel producer, only recycles a small perc

thefinancialexpress.com.bd

Textile giant Bangladesh pushed to recycle more waste
REUTERS
Published :
Apr 23, 2025 20:00
Updated :
Apr 23, 2025 20:18

Bangladeshi garment workers make clothing in the sewing section of a factory in Gazipur, Bangladesh, Apr 9, 2025. Photo : REUTERS/Mohammad Ponir Hossain

Bangladesh’s limited capacity to deal with the enormous waste generated by its textile sector may prove unsustainable as the global fashion industry faces pressure to reduce its environmental footprint.

Bangladesh, the world’s second-largest apparel producer, only recycles a small percentage of its textile waste, with the rest shipped abroad or left to pollute the landscape.

As more countries introduce rules requiring greater recycled content in clothes, analysts and business owners say Bangladesh must expand recycling to meet demand from a global textile recycling market projected to be worth $9.4 billion by 2027.

The European Union this month published its first road map towards meeting the standards under its Ecodesign for Sustainable Products Regulation, which includes provisions for reducing the environmental harm caused by the textile industry.

This will require Bangladesh and other fashion suppliers to boost recycling while improving working conditions in what is largely an informal sector, said Patrick Schröder, a senior research fellow at the British think tank Chatham House.

“As the call for recycling grows and fast fashion goes out of fashion in the coming years, millions of jobs will be impacted, and Bangladesh needs to think ahead to step up its capacity to keep up with the changes,” he said.

TONS OF WASTE

Bangladesh’s fashion industry is estimated to produce up to 577,000 metric tons of textile waste from the factories each year.

Most of it is shipped abroad, and the rest is left to clog bodies of water, pollute the soil, enter landfills or be incinerated, which produces toxic gases, according to a report by Switch to Circular Economy Value Chains, a project supported by the EU and the Finnish government.

What is processed has evolved into a vast, informal business in Bangladesh. Thousands of informal workshops sort and bundle the waste, known as jhut, and what remains in Bangladesh is down-cycled to make low-value products like mattresses, pillows and cushions.

When clothing scraps are swept up from factory floors, politicians and other influential people control who gets it and at what price, said Asadun Noor, project coordinator at the United Nations Industrial Development Organisation in Dhaka.

“This is a very opaque process, offering limited visibility of the waste value chain to clothing brands and suppliers,” he said.

The scraps go to hundreds of mostly unregistered workshops near the capital Dhaka, where they are cleaned and sorted into batches based on quality, colour and other considerations.

Tens of thousands of workers, 70% of them women, sort the remnants for 10 to 12 hours a day, a study by the UN’s children agency UNICEF said last year.

Workers said they toil for low wages without key safety measures, like drinking water, paid sick leave or protection from harassment.

One of them is Sabura Begum, 30, who works with 250 other women at a workshop in the city of Narayanganj, near Dhaka.

“I earn a wage of about $80 a month and it does not make it easy to run my family,” she said.

A small share of the waste sorted in workshops like Begum’s is sent to about two dozen recycling factories in Bangladesh.

A large portion is exported to other countries such as India or Finland for recycling into new fibre where this is a larger base of recycling facilities as well as advanced technology like chemical recycling that produces strong, fresh fibres.

Some of the fibres made from exported scraps are then sent back to Bangladesh to be made into clothes.

More local recycling could save Bangladesh about $700 million a year in imports, the Switch to Circular Economy Value Chains report estimated.

Other major textile hubs are ramping up recycling capacity. For example, India recycles or reuses about 4.7 million tons, or about 60%, of its textile waste, according to a report by Fashion for Good, a coalition of businesses and non-profits.

DOING A BETTER JOB

Some Bangladeshi companies are aiming to compete and provide proper labour standards.

In 2017, Entrepreneur Abdur Razzaque set up Recycle Raw, which has now become one of the largest waste-processing businesses in Bangladesh.

“We offer decent wages and respect basic labour standards - ensuring things like drinking water, air circulation and security for our largely female workforce - so we attract and retain them much better than others,” Razzaque said.

A few local recycling factories are also investing in adding more production lines, but large-scale investment in technology like chemical recycling, with support from fashion brands and development-finance organisations is needed, said Abdullah Rafi, CEO of recycler Broadway Regenerated Fiber, based in the city of Ashulia, near Dhaka.

However, investors expect a regular supply of waste feed stock and that means the current opaque system of handling waste would have to go, he said.

“What we now need is more finance and collaboration among brands, suppliers, waste handlers and recyclers to scale up our capacity,” said Rafi.​