[🇧🇩] Textile & RMG Industry of Bangladesh

[🇧🇩] Textile & RMG Industry of Bangladesh
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Protecting RMG workers from heat stress


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The growing intensity of heat in Bangladesh is no longer confined to climate discussions alone. Now, it is showing up on production floors of the country's most important export industry. A study on this issue conducted by the US-based Cornell University's Global Labor Institute (GLI) along with local partners, reportedly, is no doubt well-timed. Based on data from eight garment factories around Dhaka and workers' homes, the study found that the heat-stress season in 2025 expanded to seven months as a 'new norm'. But factory temperatures were often worse. Most exposed were workers in cutting, ironing and finishing sections in the hottest months. Obviously, a worker suffering from heat exhaustion, dehydration, headache or fatigue cannot maintain normal pace of work for hours. So, what might appear to factory owners as a workplace-comfort issue is actually one that involves workers' health and safety.

What makes the Cornell study noteworthy is that it translates the cost of heat stress into the language businesses understand-the loss of output and earnings-and shows spending on adaptation is not money thrown away. One representative small-and-medium-sized factory under study was estimated to lose 4.1 per cent of its annual revenue to high heat. Whereas, as the study noted, an industry-wide investment of around US$239 million, equivalent to a tiny fraction of Bangladesh's annual export earnings, could substantially reduce factory heat stress. The suggested measures include roof insulation, reflective coating, better ventilation, improved airflow and mechanical cooling, which might be used to meet specific needs. In fact, there is no one-size-fit-all solution to heat stress. The investment made for the cooling, however, can be recovered within one to four years through productivity gains. So, with temperatures rising, can an export industry dependent on millions of workers afford not to make such investments?

However, it would be unfair to place the entire cost burden on garment manufacturers, operating under intense price pressure from international buyers. The global brands whose supply chains benefit from Bangladesh's comparatively low production costs cannot ask suppliers to meet higher climate and labour standards while refusing to share costs. What is required, therefore, is a framework involving brands, manufacturers, government and international development partners to mobilise finance for heat adaptation, set enforceable workplace heat standards and monitor implementation. Such a framework should also look beyond factory gates. The study mentioned above has found workers facing heat stress also at their homes. That limits recovery after long working hours forcing additional spending on fans, electricity and medicine. In that case, safe housing, affordable electricity, social protection and commensurate wages become part of climate adaptation. Women workers, including pregnant and nursing mothers, and their children, are exposed to health risks during extreme heat. They need targeted protection and accessible healthcare.

There is no reason why such adaptive measures should remain confined to the RMG sector. Garment factories provide a visible example of what rising temperatures are doing to labour productivity across the economy. Workers in other manufacturing industries, warehouses, construction sites, transport services and informal workplaces are no less exposed, though their losses often remain unmeasured. The government should, therefore, treat occupational heat stress as an emerging national workplace hazard and develop sector-specific standards involving heat monitoring, rest breaks, drinking water, ventilation, cooling and emergency medical response. Incentives, concessional finance and technical support could help smaller enterprises make necessary changes without threatening viability. At the same time, industrial buildings and workers' residential areas need also to be brought within a wider heat-resilience strategy. Indeed, the Cornell University study shows that properly designed adaptation measures can protect workers' health and return the investment. So, industry leaders and policymakers should act fast before high heat exacts a still heavier price on life and the economy.​
 

RMG exports to UK reach $915.63m in first two months of FY27


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Bangladesh’s ready-made garment (RMG) exports to the United Kingdom reached $915.63 million during the first two months (July-August) of fiscal year 2026-27, registering a 3.74 per cent year-on-year growth driven primarily by a strong rebound in August.

During the corresponding July-August period of the previous fiscal year (FY2025-26), RMG exports to the UK market stood at $882.62 million, according to data from the Export Promotion Bureau (EPB) compiled by trade research platform Bangladesh Apparel Voice.

The cumulative earnings of $915.63 million in the first two months already account for 20.86 per cent of the total $4,388.55 million earned from garment exports to the UK across the entire FY2025-26, reports UNB.

The monthly export average so far in FY2026-27 stands at $457.82 million, running significantly ahead of the flat monthly average benchmark of $365.71 million recorded in the full FY2025-26.

However, the positive trajectory was driven almost entirely by a robust 10.53 per cent surge in August, which effectively offset a 2.44 per cent year-on-year drop recorded in July.

Mohiuddin Rubel, founder & CEO of Bangladesh Apparel Voice, highlighted that August’s strong recovery successfully lifted overall apparel exports to the UK market out of negative territory following a sluggish start in the first month of the fiscal year.​
 

What is holding back solar in Bangladesh’s garment industry?

Khairul Hassan Jahin

When Richard Arkwright started his cotton mill at Cromford, Derbyshire, in 1771, he built it beside a stream whose current powered its spinning frames. Factory design followed the source of power, first water and then steam. When electric motors arrived, replacing the engine alone was not enough. Older mills, often built on several floors around a central drive shaft, needed to reorganise their machinery to make full use of the motors. Few owners would scrap equipment that still worked. The pace of change depended on each factory’s capital, its infrastructure and its ability to wait for the returns.

Bangladesh’s garment industry now faces similar constraints of capital, buildings and time. It grew around domestic gas, which supplies electricity through factory generators and power stations, as well as heat for processes such as dyeing. Generating that electricity from renewable sources instead requires money, roof space and new ways of buying power. Gas shortages and the war in West Asia have made the transition more urgent.

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Low gas pressure has forced this spinning mill in Narsingdi to halt production. Many factories, including RMG units, are facing an acute gas and power crisis. The photo was taken recently. Photo: Anisur Rahman

“Suppose you have a gas connection, but the pressure is so low that the machines cannot run on it,” says Nishat Nahrin Hamid, chairman of the Bangladesh Garment Manufacturers and Exporters Association’s (BGMEA) standing committee on renewable energy transformation. “What will you do then? You will switch to diesel. But diesel is very expensive now.”

Rooftop solar offers a way to reduce some of that expense. It can supply electricity during the day without recurring fuel purchases. Research led by Dhaka University economist Atonu Rabbani found that suitably sized systems could recover their cost in five to eight years. That makes solar attractive to an industry under pressure to cut both costs and emissions. But it does not make the investment equally accessible to every factory.

Mapped in Bangladesh, a BRAC University platform, examined 2023–24 electricity records for 878 garment factories in Gazipur and Narayanganj. Renewables supplied about 3 percent of their electricity consumption. Smaller factories remained almost entirely dependent on conventional sources. Installation has continued since then. Enamul Karim, head of renewable energy at the state-owned Infrastructure Development Company Limited (IDCOL), says its industrial rooftop projects had reached 287 megawatts of operational capacity by September 20. But total capacity says little about which factories are installing solar.

The financing divide

The financing pattern offers a clue. In Rabbani’s survey of 661 factories in Gazipur and Savar, 94 percent of solar adopters reported paying entirely from their own funds. Rabbani links this to size. “Their liquidity constraints are smaller,” he says. “They have more money, because the firms are big.”

For an owner short of liquidity, the calculation is different. Money committed to panels is money unavailable for immediate expenses, even if those panels eventually lower the electricity bill. Hamid says factories in “survival mode” are spending “sometimes on the extra cost of diesel, sometimes on air freight” to meet delivery dates. “Let us secure survival first. Future investment can be looked at after that.”

Putting survival first is rational for an owner facing this week’s diesel bill. But the crisis that makes solar most valuable is also the one that leaves small factories least able to afford it. Rabbani adds another concern: owners must be confident that their businesses will keep operating long enough to benefit from the investment.

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An ongoing gas crisis and the rising cost of textile waste forced at least 100 Narsingdi textile factories to burn wood for fuel last month, creating a widespread and severe environmental hazard. Photo: Star

Cheap loans should ease the cash shortage, but their availability does not ensure access. Hamid says commercial banks with green funds tend to favour existing clients; moving a factory’s banking relationship to another bank takes time. Some businesses instead borrow at ordinary, double-digit commercial rates. “That is not green financing,” she says. The extra interest reduces the savings that made solar attractive in the first place. Short repayment periods add another pressure: a project that saves money over its lifetime can still strain a factory’s cash flow if the loan must be repaid before those savings accumulate.

IDCOL’s procedures show why changing lenders is difficult. A factory’s regular bank already holds documents from years of export transactions. IDCOL, as a new lender, requires its own assessment, whether the rooftop project is large or small. A small system, therefore, involves much of the same administrative work for a smaller loan. Karim says IDCOL approves 85 to 90 percent of applications, with credit histories and collateral among the obstacles.

Money is not the only barrier

Nor does a loan give an owner the expertise to choose and maintain a system. Almost half the non-adopters in Rabbani’s survey reported lacking the necessary technical expertise. Rabbani describes shortages of technicians and difficulties in judging equipment quality. An owner who cannot assess a contractor’s promises faces uncertainty about whether the expected savings will materialise. Shared technical advice through industry associations could help smaller owners compare suppliers and prepare applications.

When the roof becomes the limit

Even a factory that clears these hurdles encounters the limits of its roof. Here, the old mills’ problem returns: buildings designed for one source of power limit the adoption of the next. Several floors of machinery may share one small rooftop, parts of which already serve other purposes. Some older roofs cannot support panels without structural work. The Mapped in Bangladesh study estimated that full use of suitable roof space could meet, at most, about 14 percent of the surveyed factories’ electricity demand.

The kind of work a factory does sets another limit. Hamid distinguishes stitching units, where solar can meet part of the machinery’s electricity needs, from dyeing plants, which also require substantial amounts of gas for heat. Panels do not directly replace a gas-fired boiler, and daytime generation does not ensure power throughout a factory’s operating hours.

These limits point to a clear sequence. Factories first need support to make full use of suitable rooftop space. Once that capacity is exhausted, they need a practical way to buy renewable electricity from elsewhere. Leaving each factory owner to finance, arrange and manage rooftop solar on their own will continue to favour larger firms with easier access to capital and technical expertise.

Who pays for the transition?

IDCOL is developing a financing model to ease those constraints. While talking to The Daily Star, Karim said the organisation was preparing a rooftop solar programme that would work through intermediaries, allowing smaller customers to be grouped together and reducing the paperwork involved. The programme is designed mainly for households, but Karim said smaller garment factories could also qualify, with interest rates capped at 6 per cent.

The OPEX model offers factories a way to install rooftop solar without paying the full cost up front. Under this arrangement, a solar developer finances and installs the system, while the factory pays for the electricity it generates. A 2025 study in Cleaner Energy Systems identified the model as one factor supporting industrial solar adoption.

For factories seeking to conserve working capital, paying for electricity over time can be more manageable than financing the entire installation at the outset. The model, however, shifts much of the financial risk to the developer. If a factory fails to pay, the developer bears the loss. That risk can make developers reluctant to work with smaller factories or firms with weaker credit profiles.


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FloSolar helped Ha-Meem Group install what the company claims is the largest solar PV system in Bangladesh’s owned garment and textile sector.

The contracts also need to specify who is responsible for maintenance and system performance. Without clear terms, factories may avoid the upfront cost of owning a solar system but face new uncertainty over how reliably that system will perform. Getting the system connected remains a separate task. Mustafa A.K. Khan, managing director of FloSolar Solution, says his company installed a 4.5-megawatt rooftop system for Ha-Meem Group in under three months, but net metering approval took another two months. Net metering credits surplus electricity sent to the grid against the customer’s bill. Faster, more predictable approval would help factories realise those savings sooner. Ha-Meem is a large group; for a smaller factory with less cash in reserve, the same wait weighs more heavily.

Looking beyond the factory roof

Beyond the roof, Khan argues for merchant power, a model his company is pursuing. A developer builds a plant elsewhere and sells its output to factories through the grid under long-term power purchase agreements. This allows several buyers to support a larger project without each having to find land or build a plant.

Land remains a constraint even when generation moves elsewhere. Khan proposes growing tea beneath solar panels in tea gardens, with the panels providing some of the shade that trees currently supply. In his example, a plant in Sylhet could sell electricity to a factory in Gazipur via the grid. Such shared use of land, known as agrivoltaics, deserves trials to assess its effects on tea yields, workers and the surrounding environment before it expands. Land permission would need to reflect those findings.

The electricity must also remain affordable after it travels through the grid. Khan wants the wheeling charge, the fee for using that network, to remain below Tk 1 per unit. He estimates that losses between the plant and the buyer could already absorb 10 to 12 per cent of output. Any charge low enough to keep factories interested would still have to cover the cost of running the network.

A low tariff still leaves the lender’s question unanswered. Khan says a developer signing a 20-year contract must convince a bank that the factory will keep paying for the full term. A large group is easier to assess than a small business whose future orders are uncertain. This is the same repayment risk that limits rooftop OPEX deals, and moving generation off-site does not remove it.


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Visual: Artificial Intelligence.

Making smaller factories bankable

Khan therefore argues for credit guarantees to encourage smaller businesses to enter into long-term contracts. Backing from the state or development lenders could cover an agreed share of losses if buyers default, making banks more willing to finance such contracts. Pooling several factories’ purchases could reduce dependence on any one customer, although it would not remove risks shared across the industry. Guarantees would also need to be accompanied by clear grid-use agreements and loans that run for as long as the contracts. International buyers seeking cleaner supply chains could share the risk through financing or firmer purchasing commitments.

The lesson from the electric motor still holds: a technology spreads when businesses can reorganise around it and afford the wait. Bangladesh’s garment factories need financing and services that reach smaller firms, along with practical access to renewable power beyond their roofs. Success should be judged by how much fossil-fuelled electricity is displaced across factories of different sizes. If the transition remains easiest for those already able to pay, the businesses most exposed to expensive power will keep paying for the delay.

Khairul Hassan Jahin is a journalist at The Daily Star.​
 

Export growth picks up as garment rebounds

Merchandise exports rise 8.54% year-on-year to $3.93b in September, led by RMG, pharma and leather

Refayet Ullah Mirdha


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The country’s merchandise exports rose 8.54 percent year-on-year to $3.93 billion in September, helped by a gradual recovery in garment shipments, according to data from the Export Promotion Bureau (EPB) released yesterday.

However, September earnings were 11.11 percent lower than the $4.42 billion recorded in August, data showed.

In the first quarter of the current fiscal year, from July to September, merchandise exports increased 6.34 percent year-on-year to $13.09 billion, compared with the same period a year earlier.

In its statement, EPB said that Bangladesh’s merchandise exports continued to show strong resilience and competitiveness in the global market.

The readymade garment (RMG) sector, the mainstay of the country’s export earnings, maintained its leading position and achieved encouraging growth during the period, according to the EPB.

During the July-September quarter of fiscal year 2026-27, RMG exports increased by 6.10 percent to $10.57 billion, from $9.97 billion in the same period a year earlier.

In September alone, RMG exports rose 8.56 percent year-on-year to $3.08 billion, from $2.83 billion.

Within the sector, knitwear exports grew 6.88 percent in the first quarter to $5.63 billion, from $5.58 billion, while woven garment exports rose 5.11 percent to $4.61 billion, from $4.39 billion.

In September, knitwear and woven garment exports grew 8.58 percent and 8.54 percent respectively from a year earlier.

Several major non-RMG sectors also performed strongly during the period.

Leather and leather products exports grew 14.74 percent in the first quarter of FY27 and 20.19 percent year-on-year in September, reflecting rising global demand and improved market penetration.

Jute and jute goods exports increased by 31.55 percent in the first quarter and 22.72 per cent year-on-year in September. This growth reflects the growing global preference for sustainable and environmentally friendly products.

Light engineering exports grew 16.51 percent in the first quarter of current fiscal year, while September exports rose 3.76 percent.

Home textile exports increased 11.94 percent in the first quarter and 13.52 percent year-on-year in September, supported by steady demand in key international markets.

Pharmaceutical exports recorded the strongest growth among the major sectors, rising 40.39 percent in the first quarter and 64.33 percent year-on-year in September.

Agricultural products and frozen and live fish recorded negative growth during the period. But strong performances by major manufacturing and value-added sectors helped drive overall export growth.

The United States remained Bangladesh’s largest export market in July-September quarter, with exports rising 11.34 percent to $2.59 billion from $2.32 billion a year earlier.

The United Kingdom remained the second-largest export destination, with exports worth $1.37 billion, followed by Germany with $1.21 billion.

Bangladesh also recorded strong growth in several emerging markets. Exports to Türkiye posted the highest growth among major destinations, more than doubling to $210.54 million from $105.21 million, an increase of 100.11 percent.

India and Japan remained important export markets, ranking sixth and ninth, respectively, among Bangladesh’s major destinations, with both recording positive growth, the EPB said.

Some sectors, including frozen fish, agricultural products such as vegetables, tea and fruits, tableware, kitchenware, rubber, cotton and cotton products, man-made filament, terry towels and ceramics, recorded negative growth in the first quarter of the current fiscal year, according to EPB data.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said garment exports increased in value but not in volume.

He also said exports in September last year were weak, which helped drive the higher earnings recorded in September this year.

“Higher yarn prices also pushed up the unit price of exported garments, contributing to the rise in overall export earnings in September,” he said.

Yarn prices were higher in September this year than in the same month last year, he added.

International clothing retailers and brands are placing work orders, but there has not yet been a full recovery in orders, he said.

Hatem said a strong rebound in apparel exports is expected as the energy supply situation gradually improves.​
 

Shafiqur assures BTMA of raising textile industry concerns in parliament

Jamaat chief pledges constructive opposition role after meeting with textile sector leaders

Star Online Report


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Photo: Courtesy

Jamaat-e-Islami Ameer and Leader of the Opposition Shafiqur Rahman has assured textile sector leaders that their concerns would be raised in parliament and discussed with the government when necessary.

The assurance came during a meeting with leaders of the Bangladesh Textile Mills Association (BTMA) at the official residence of the leader of the opposition on Minto Road in Dhaka today, according to a press release.

The meeting discussed incentives for the textile sector, gas and power supply, challenges arising from Bangladesh's graduation from the least developed country (LDC) category, taxes, duties and various policy issues.

At a briefing after the meeting, Jamaat Secretary General Mia Golam Porwar said the party did not believe in opposing every government initiative.

“They want to play the role of a constructive opposition,” he said, quoting Shafiqur Rahman. He added that Jamaat would support government initiatives serving public and national interests while criticising and protesting policies that go against those interests.

According to the press release, BTMA leaders highlighted a range of challenges facing the textile sector.

Shafiqur stressed the importance of ensuring raw material supply for export-oriented industries, protecting the domestic primary textile sector, increasing local value addition, safeguarding employment and conserving foreign currency.

The meeting also discussed protecting government revenue, preventing misuse of bonded warehouse facilities and curbing illegal imports, the release said.

BTMA Vice-President Shafiqul Islam Sarker said the sector had around $32 billion in investment and serves as a key backward linkage industry for the country's apparel sector.

Although gas and power supplies have improved to some extent, many factories continue to face difficulties, he said.

Porwar said BTMA leaders' concerns had been taken seriously and reiterated that the issues would be raised in parliament and discussed with the government in the interests of the economy and the public.

Meanwhile, asked about the reported departure from the longstanding practice of having the leader of the opposition as chief guest at the closing ceremony of the textile and apparel fair Batexpo on November 18, Porwar said there had traditionally been a practice of having the prime minister as chief guest at the opening and the leader of the opposition at the closing.

He said the practice reflected democratic political culture and mutual respect among state institutions. However, he added that Shafiqur Rahman had neither demanded nor requested to be made chief guest.

BTMA President Showkat Aziz Russell, Vice-President Shafiqul Islam Sarker and other directors attended the meeting. Jamaat Assistant Secretary General Ahsanul Mahboob Zubair and Central Executive Council members, including Mobarak Hossain, Nurul Islam Bulbul, and Md Selim Uddin, were also present.​
 

BGMEA urges World Bank to scale up funding for sustainable water management in RMG Sector


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Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the World Bank to scale up funding and expand the scope of projects aimed at promoting sustainable water management in the nation's readymade garment (RMG) sector.

The call was made during a high-level bilateral meeting between a World Bank delegation, led by Mara K. Warwick, Regional Director for Sustainable Development in South Asia, and BGMEA President Mahmud Hasan Khan at the BGMEA Complex in Uttara on Wednesday.

BGMEA Director Md Hasib Uddin and senior World Bank specialists were also present at the discussion.

Highlighting the strategic importance of environmental stewardship, the BGMEA President emphasised that water management is now directly linked to international trade and global competitiveness.

Global buyers, particularly European apparel brands, increasingly demand data-driven proof of water reduction, wastewater treatment, and recycling across production stages.

Adopting modern water-saving technologies is therefore crucial to saving rivers and groundwater in Dhaka while maintaining export markets, he noted.

The meeting reviewed the progress of the World Bank-assisted ‘Dhaka Water Security and Resilience Program’ (D-Water) and its $5.0 million Viability Gap Funding (VGF) pilot scheme.

While BGMEA initially submitted a list of 31 factories, the World Bank selected eight to begin the pilot.

Indicating that the allocation is insufficient given the overwhelming demand from manufacturers, the BGMEA chief strongly requested expanding both the financial commitment and factory coverage.

Outlining key obstacles, BGMEA leaders highlighted that high capital expenditure hinders the financial viability of water stewardship projects, especially during the current global economic slowdown and price pressures.

They urged international development partners to offer grants, zero-interest loans, or long-term concessional financing to support factory owners in adopting green practices.

The association also called for practical solutions to infrastructural constraints, advocating for cluster-based treatment facilities, lorry-based industrial waste transportation for land-constrained units, and expanding the initiative beyond Dhaka to other industrial hubs.

Additionally, they emphasised the necessity of policy predictability and adequate lead time before implementing new environmental regulations.

The World Bank delegation received the proposals positively, assuring continued logistical and technical assistance to accelerate the RMG sector’s green transformation.​
 

Can cotton diplomacy transform our textile prospects?

Iftekhar Ul Karim

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Advances in cotton recycling could help recover valuable fibres from textile waste, reducing resource consumption and creating new sources of raw materials. File photo: Star

From Eli Whitney’s cotton gin, which transformed American cotton production and fuelled the expansion of slavery, to a cotton-related claim brought to Abraham Lincoln’s attention on the evening of his assassination, the fibre remained deeply intertwined with America’s economic history. Across the Atlantic, Bengal transformed cotton, derived from the Arabic qutn, into the legendary Dhaka muslin, coveted worldwide, before colonial rule hastened its decline. Today, Bangladesh has re-emerged as a global textile powerhouse and remains among the world’s largest cotton importers. From producing its own celebrated cotton textiles to sourcing fibre from across the world, Bangladesh’s evolving textile economy is opening new avenues for trade, innovation, and economic diplomacy.

The emerging relationship with the US illustrates how cotton is becoming more than a raw material. The cotton clause in the Bangladesh-US trade pact links potential preferential tariff treatment for certain Bangladeshi apparel exports to purchases of American cotton and textile inputs. While this creates opportunities for deeper cooperation, its commercial benefits will depend on sourcing costs, eligibility requirements, and implementation. Cotton diplomacy must therefore translate into measurable advantages for manufacturers rather than simply increasing import commitments.

The launch of CottonPort, Bangladesh’s first digital raw-cotton marketplace, marks a tangible step forward. With an initial offering of 82 tonnes of Virginia cotton, the platform seeks to connect American suppliers directly with Bangladeshi spinning mills, improving pricing transparency and traceability. A planned private warehouse in Chattogram could further accelerate deliveries and reduce procurement uncertainty. Together, these initiatives demonstrate how international cooperation can evolve beyond trade agreements into practical improvements in supply-chain efficiency.

Bangladesh’s engagement with Brazil adds another dimension to this emerging cotton diplomacy. Its pursuit of preferential market access for garments made with Brazilian cotton extends the relationship beyond Washington. Such partnerships could transform raw-material procurement into wider export opportunities while preserving diversified sourcing options.

Cotton traceability is becoming increasingly important as global buyers demand greater sourcing transparency. The US restrictions on products linked to forced labour in Xinjiang underscore the importance of verifying fibre origins. Integrating credible traceability systems across spinning, weaving and garment manufacturing could help exporters meet evolving buyer requirements. Cotton diplomacy must therefore extend beyond preferential tariffs to build the transparency, trust, and market confidence essential for long-term competitiveness.

While Bangladesh is strengthening its international cotton partnerships, disagreements over yarn imports continue to challenge its domestic textile industry. The government’s recent decision to suspend the withdrawal of bonded import facilities for 10-30 count cotton yarn followed competing concerns from spinning mills and garment exporters. Domestic millers argue that unrestricted imports undermine local investment and employment, while apparel manufacturers caution that sourcing restrictions could increase costs and weaken export competitiveness. The disagreement underscores the need to strengthen domestic spinning capacity without compromising manufacturers’ access to competitively priced inputs.

Energy reliability presents another challenge that cotton diplomacy alone cannot resolve. Energy shortages have constrained textile production and cotton demand, and the US Department of Agriculture has revised Bangladesh’s cotton import and consumption forecasts downwards. Even favourable sourcing arrangements cannot deliver their full benefits when factories face operational disruptions. Reliable energy, efficient logistics and predictable policies must therefore accompany international partnerships to translate cotton imports into export earnings.

Bangladesh is also rediscovering its agricultural potential. A long-term roadmap targets domestic production of 1.9 million cotton bales annually by 2050, supported by improved varieties, research, financing and cultivation in suitable regions. Although domestic production cannot entirely replace imports, it could diversify supply, support rural livelihoods, and reconnect Bangladesh’s textile industry with its agricultural heritage. Such expansion must remain commercially viable and environmentally responsible, particularly where cotton cultivation competes with food production or limited water resources.

The future of textiles, however, will not be written in cotton alone. According to the International Cotton Advisory Committee (ICAC), synthetic fibres accounted for 71.7 percent of global fibre demand in 2025, underscoring the importance of product diversification. Bangladeshi brand Illiyeen’s development of CottoCool, a cotton-based fabric designed for the country’s climate, illustrates how material innovation can respond to consumer needs. Such initiatives demonstrate opportunities to move beyond conventional apparel manufacturing towards functional fabrics, specialised textiles and higher-value products that strengthen Bangladesh’s competitive position.

Sustainability offers an opportunity to reshape the industry. Advances in cotton recycling and dye-removal technologies could help recover valuable fibres from textile waste, reducing resource consumption and creating new sources of raw materials. Bangladesh’s indigenous jute industry provides an alternative pathway towards diversified materials, blended textiles and higher-value applications. Combining cotton, jute, recycled fibres and man-made materials could help Bangladesh build a more innovative and resilient textile economy while responding to changing global demand and sustainability expectations.

From Lincoln’s America to Bengal’s muslin looms, cotton has long connected economic fortunes with wider historical transformations. Today, Bangladesh stands at another such intersection, linking American and Brazilian cotton fields with domestic farmers, spinning mills, garment factories, and emerging technologies. The opportunity is to ensure that these connections reinforce one another through competitive sourcing, reliable infrastructure, stronger domestic capabilities, and diversified products. On World Cotton Day, Bangladesh can look beyond cotton imports and build stronger partnerships that support its farmers, strengthen its textile industry, and create greater value at home.

Dr Iftekhar Ul Karim is assistant professor at BRAC Business School, BRAC University.​
 

RMG exports rise 6.10pc to US$10.58b in July-Sept of FY27


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Bangladesh's ready-made garment (RMG) exports grew 6.10 per cent year-on-year in the first quarter (July-September) of FY2026-27, reaching US$10,578.56 million against $9,970.42 million in the same period of FY2025-26, according to data released by the Export Promotion Bureau (EPB).

Knitwear exports rose 6.88 per cent to $5,963.76 million, while woven exports grew 5.11 per cent to $4,614.80 million during the first quarter.

United States (US), United Kingdom (UK) and Canada during the first quarter of the current fiscal year (FY27), the US, the largest single-country market, imported $2,220.86 million, up 10.40 per cent from $2,011.70 million. Its share rose from 20.18 per cent to 20.99 per cent. Knitwear shipments grew 11.61 per cent to $881.28 million, and woven shipments 9.61 per cent to $1,339.58 million.

Exports to the UK increased 5.94 per cent to $1,292.13 million. Knitwear rose 10.00 per cent to $897.93 million, while woven fell 2.27 per cent to $394.20 million. The UK's share was almost unchanged at 12.21 percent.Canada took $349.65 million, up 3.85 per cent. Knitwear edged up 1.07 per cent to $181.98 million, while woven grew 7.04 per cent to $167.67 million.

Non-traditional markets:

Exports to non-traditional markets during this July-September period rose 9.40 per cent to $1,811.89 million from $1,656.28 million, lifting their share from 16.61 per cent to 17.13 per cent. Knitwear grew 9.94 per cent to $889.34 million and woven 8.87 per cent to $922.55 million.

Turkey was the standout performer, with shipments more than doubling (up 123.14 per cent) to $146.63 million. Brazil rose 41.58 per cent to $63.09 million while the UAE 18.67 per cent to $74.34 million, and Mexico 14.77 per cent to $81.72 million.

In addition, South Africa grew 9.29 per cent to $37.85 million, South Korea 8.81 per cent to $120.94 million, Malaysia 6.31 per cent to $47.80 million and Saudi Arabia 5.67 per cent to $51.64 million.

Japan, the largest non-traditional market, grew 2.61 per cent to $343.65 million. Australia rose 1.02 per cent to $209.06 million, and China was nearly flat at $71.21 million (up 0.09 per cent). Other countries combined grew 14.45 per cent to $253.24 million.

The European Union:

The EU remained the largest destination bloc, importing $4,904.02 million of Bangladeshi apparel, up 3.33 per cent from $4,746.10 million. Knitwear shipments rose 4.29 per cent to $3,113.23 million, and woven shipments 1.70 per cent to $1,790.79 million.

The EU's share of Bangladesh's total apparel exports, however, slipped slightly from 47.60 per cent to 46.36 per cent.

Among individual EU members, Germany, the largest buyer, was nearly flat at $1,122.98 million (down 0.15 per cent). Spain grew 13.73 per cent to $1,148.46 million, the Netherlands 9.02 per cent to $597.49 million, and Poland 5.77 per cent to $401.93 million. Sweden rose 14.43 per cent to $177.00 million, and Belgium 1.39 per cent to $130.09 million.

Other EU markets with growth included Romania (60.03 per cent to $47.85 million), Hungary (25.46 per cent to $44.95 million), Slovakia (27.56 per cent to $19.86 million) and the Czech Republic (1.28 per cent to $72.35 million). Smaller gains were seen in Latvia (59.29 per cent to $0.53 million) and Malta (50.32 per cent to $0.10 million).

Talking to BSS, former BGMEA Director Mohiuddin Rubel said Bangladesh's apparel export growth in the last month remained encouraging despite the energy crisis and rising production costs, while non-traditional markets and the United States showed stronger growth than the overall export trend.

He said the export performance should be viewed in the context of the challenges faced by the apparel industry, particularly the energy crisis, which has increased pressure on production and business operations.

"Although the export figure may appear relatively low in absolute terms, the growth achieved amid the current energy crisis is definitely positive," Rubel said.

He identified the improved performance in non-traditional markets as a particularly encouraging development, noting that Bangladesh had struggled to achieve satisfactory growth in these markets for a considerable period.

According to him, export growth in non-traditional markets and the United States has exceeded the overall growth rate, indicating that Bangladesh is gradually improving its position beyond its traditional export destinations.

Rubel, also the Founder and CEO of Bangladesh Apparel Voice (BAV), said Bangladesh needs to reduce its excessive dependence on Europe and the United States by exploring opportunities in other markets, including Japan, Australia and India.

"Europe's performance has not been particularly strong. Therefore, we need to diversify our export destinations and explore the significant opportunities available outside the major traditional markets," he said.Bangladesh had maintained its position in the US market and that further export growth remained possible there, he added.Rubel, however, stressed that export growth alone would not be sufficient to ensure the long-term sustainability of the garment industry.

"Growth must be profitable and sustainable. We need to manage the rising costs and focus on higher-quality products and markets where we can achieve better returns," he continued.

Rubel said the recent improvement in monthly export performance offered some encouragement, adding that continued growth in the coming months could help the sector move closer to its overall annual target.

"If we can maintain the positive trend and continue to achieve incremental growth every month, we may be able to move closer to achieving our overall growth target." he said.

Rubel also emphasised that market diversification, product quality, cost management and profitable expansion would remain crucial to strengthening Bangladesh's position in the global apparel market.​
 

RMG exports to major markets grow in July-September

Staff Correspondent . Dhaka


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A file photo shows women workers sewing clothes at a readymade garment factory in Dhaka. | Md Saurav

The country’s readymade garment shipments to major export destinations showed mostly positive performance in the July-September period, the first quarter of the financial year 2026-27, with overall earnings rising.

RMG exports grew by 6.10 per cent to $10.58 billion, up from $9.97 billion in the same period of FY26, according to data from the Export Promotion Bureau, compiled by Bangladesh Apparel Voice.

The EPB has said the performance reflects resilience of the country’s export sector and sustained confidence of international buyers.

The state agency also said it remains committed to supporting export diversification, market expansion, product upgrading and trade facilitation to sustain export growth and achieve the country’s long-term export objectives.

Knitwear exports rose by 6.88 per cent to $5.96 billion, outpacing woven garment exports, which grew by 5.11 per cent to $4.61 billion.

The European Union, Bangladesh’s largest apparel destination, recorded exports of $4.90 billion in July-September of FY27, up 3.33 per cent from $4.75 billion in the same period a year earlier.

The EU’s share of Bangladesh’s total RMG exports stood at 46.36 per cent during the period.

Among major EU markets, Germany, France, Italy, Denmark and Austria recorded declines, while Spain, the Netherlands, Belgium, Sweden and Poland posted growth.

Germany, the largest EU market, dipped 0.15 per cent to $1.12 billion in the first three months of FY27, from $1.12 billion in the corresponding period of FY26.

France fell 4.91 per cent to $449 million, Italy declined 5.82 per cent to $316 million, Denmark dropped 15.40 per cent to $201 million and Austria fell 14.03 per cent to $19.49 million.

Among the markets that posted growth, Spain rose 13.73 per cent to $1.15 billion, the Netherlands grew 9.02 per cent to $597 million, Sweden climbed 14.43 per cent to $177 million, Poland increased 5.77 per cent to $402 million and Belgium edged up 1.39 per cent to $130 million.

Exports to the United States, the single largest destination for Bangladeshi RMG, rose 10.40 per cent to $2.22 billion from $2.01 billion, with the market accounting for 20.99 per cent of total RMG exports despite tariff and global geopolitical tensions.

Shipments to Canada grew 3.85 per cent to $350 million in July-September of FY27, from $337 million, with the market accounting for 3.31 per cent of total exports.

RMG exports to the United Kingdom rose 5.94 per cent to $1.29 billion in the first three months of FY27, from $1.22 billion in the same period a year earlier, with the UK’s share of total exports at 12.21 per cent.

In the apparel trade, the US, Canada, the UK and the EU are considered traditional markets, while other destinations are classified as non-traditional markets.

Major non-traditional markets include Japan, Australia, Russia, India, China, South Korea, the United Arab Emirates, Malaysia, Brazil and Mexico.

Exports to non-traditional destinations grew 9.40 per cent to $1.81 billion in July-September of FY27, up from $1.66 billion in the same period of FY26, and accounted for 17.13 per cent of total RMG exports.

Among major non-traditional markets, exports to India and Russia witnessed declines in July-September of FY27, while exports to Japan, Australia, China, South Korea, Brazil, Turkey, Saudi Arabia, the United Arab Emirates, Malaysia and Mexico recorded positive growth, the EPB data showed.

Bangladesh Knitwear Manufacturers and Exporters Association executive president Fazlee Shamim Ehsan said that August was marked by a fuel crisis throughout the month.

Even so, the export growth in September compared with the same month last year is undoubtedly positive, he said.

Despite most factories facing the crisis, it is possible that some managed to achieve exceptionally high exports through their own efficiency, which might have contributed to the growth, he added.

Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association, said that positive export growth amid the current global and domestic challenges was encouraging and reflected the sector’s resilience.

Despite geopolitical tensions, the global energy crisis and domestic gas and electricity shortages, the growth was a positive sign, he said.

He said that non-traditional markets had returned to positive growth after experiencing a prolonged negative trend, while exports to the US were also showing signs of recovery.

He stressed the need to make the growth profitable and sustainable by focusing on high-value products, innovation, market diversification and diversification within product categories.

In FY26 as a whole, the RMG sector earned $38.70 billion, a 1.64 per cent decline from $39.35 billion in FY25.​
 

RMG export to non-traditional markets


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That Bangladesh's garment export to emerging markets recorded an accelerated growth in the July-September period of the 2026-27 fiscal year is a positive development. Export to the traditional markets like the European Union (EU) has also grown. But against its 3.33 per cent year-on-year growth during this period, the 9.40 per cent growth in export to non-traditional market opens up a new chapter of readymade garment (RMG) export. RMG exports to the United Kingdom and Canada grew by 5.94 per cent and 3.85 per cent against a fall in export to Germany and France by 0.15 and 4.91 per cent respectively. Intriguingly, Bangladesh's export to the United States of America registered a growth by 10.40 per cent during the period under scrutiny and still it lost its second position to China, while Vietnam holds the top position. Quite a few of the European destinations like Spain, Sweden and Netherlands have made amends for the low demands for garments from Bangladesh in Germany and France.

At a time of international trade and energy turmoil, resetting trade relations remains high on the agenda. From that point of view, India has advanced its trading interests by clinching the free trade agreement (FTA) deal with the EU. This and the uncertainties over Bangladesh's graduation from the Least Developed Country (LDC) status may have been responsible for the overall low growth in export to the EU. Bangladesh should have opened negotiations on an FTA with the EU by this time. Access to non-traditional markets can help overcome the loss of revenue in the traditional market but this depends on the size of new destinations. The countries where exports from Bangladesh have increased are smaller and therefore are no substitute for large EU members like France and Germany. So, there is no reason to be complacent over the rise in RMG export to some non-traditional destinations.

Then performance of export to the two most populous countries in the world ---India and China to be precise---is hardly enviable. Both are competitors as well as consumers of Bangladesh garment products. Export of RMG to Chinese market marked a slight growth by 0.09 per cent while to the Indian market it declined by 5.37 per cent. Had Bangladesh found niche markets in these two countries, its revenue income would surpass those of many other export destinations. So far as international trade and commerce are concerned, adversarial geopolitical relationship should not be allowed to influence business as usual. Whether the issue of LDC graduation is postponed or not, Bangladesh must push for advancing its trade facilities with the EU, India and China.

Shrewd trade diplomacy has no alternative to staying in competition with the rivals. But the more important thing is business acumen required for identifying the specialised segments of broader markets defined by customers' special needs, choices and preferences in different countries. In this process, there is a very good chance to find niche markets even in the smaller countries added to the list of the new destinations. Besides, Bangladesh needs to diversify its export basket. Until that happens and the overreliance on export of RMG products continues, the country has to follow what is trendy in terms of style and materials such as man-made fibre and rise equal to the task.​
 

RMG makers seek PM’s intervention for yarn import

Saddam Hossain . Dhaka


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The readymade garment manufacturers of the country sought prime minister Tarique Rahman’s intervention to withdraw a restriction on imports of 10–30 count cotton yarn under bonded warehouse facilities.

They also said that the measure is disrupting raw material supplies and raising production costs for export-oriented garment factories.

The Bangladesh Garment Manufacturers and Exporters Association and the Bangladesh Knitwear Manufacturers and Exporters Association urged this in a joint letter to the prime minister sent on Thursday.

Earlier on September 7, the National Bureau of Revenue issued an order, following a meeting at the commerce ministry on August 20, withdrawing the bonded warehouse facility for the import of 10–30 count cotton yarn.

It allowed exporters to import the yarn against bank guarantees, subject to certification by the relevant trade bodies and release of the guarantees after export.

However, following major objections, the commerce ministry wrote to the NBR on September 13, requesting suspension of the decision for further review.

The NBR nevertheless issued another order on October 14 upholding the restriction order of NBR, according to the associations’ letter to the prime minister.

Signed by the BGMEA president Mahmud Hasan Khan and BKMEA president Mohammad Hatem, the letter said the latest order had created fresh uncertainty for exporters, with consignments of imported yarn held at Chattogram port disrupting production and supply chains.

They urged the government to withdraw the September 7 order without conditions and consult the relevant industry stakeholders before making such policy decisions.

They also proposed discussions among the BGMEA, BKMEA and the Bangladesh Textile Mills Association to develop a sustainable policy framework.

According to the letter, the consignments held at the port include twisted yarn used in sweater production, organic cotton yarn, Better Cotton Initiative cotton yarn, cotton melange and other specialised yarns that are not produced domestically to the required specifications and quality.

The associations said local spinning mills had already increased yarn prices by $0.30–$0.50 per pound since the September 7 order.

They also said that paying duties and taxes or providing bank guarantees for imported yarn would tie up exporters’ working capital and increase production costs, particularly for small and medium-sized exporters.

The BGMEA and BKMEA warned that the additional costs and supply disruptions could weaken Bangladesh’s competitiveness in international markets and put jobs at risk in the garment sector, which they said generated $39 billion in export earnings and supported the livelihoods of around four million people directly and indirectly.

The associations also claimed that frequent and unexpected policy changes had undermined buyers’ confidence, with some buyers shifting orders to India and Egypt.

Earlier, the NBR decision was welcomed by the BTMA, which argued that restricting duty-free imports of yarn available from local mills would protect domestic spinning industries, increase demand for locally produced yarn and help curb misuse of bonded facilities.

The BGMEA and BKMEA, however, opposed the measure, saying the decision had been incorporated into the meeting minutes without proper discussion with the apparel exporters’ associations and would increase costs for garment manufacturers.

They also said that they have been facing a series of policy changes since 2025, including the ban on yarn imports through land ports.

In this regard, they urged the prime minister’s instructions to protect the billion-dollar RMG industry.​
 

RMG exports to Poland rise amid Russia war

Refayet Ullah Mirdha

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Bangladesh’s garment exports to Poland are rising as the Russia-Ukraine war disrupts direct trade with Russia and buyers shift sourcing from China, even as shipments to several major markets face pressure.

Garment exports to Poland grew 9.8 percent year-on-year to $1.86 billion in fiscal year 2025-26 (FY26), according to Export Promotion Bureau (EPB) data.

In contrast, Bangladesh’s total garment exports fell 1.64 percent during the fiscal year.

The slowdown has continued in major destinations. Bangladesh’s garment exports to the US fell 5.3 percent in the first half of 2026, while shipments to the European Union declined 11.67 percent in the first eight months, according to World Bank and Eurostat data.

Industry leaders attribute the growth in exports to Poland partly to Polish buyers re-exporting garments to neighbouring Russia, where sanctions-related payment difficulties have complicated direct trade.

They also cite demand for basic garment items and opportunities created by Chinese suppliers losing orders.

A GROWING MARKET

Bangladesh exported garment items worth $1.38 billion to Poland in FY21, with the amount rising to $2 billion in FY22, according to EPB data.

Exports fell to $1.40 billion in FY23 before recovering to $1.54 billion in FY24 and $1.69 billion in FY25.

In contrast, garment exports to Russia have declined since the war began in February 2022.

Before the war, Bangladesh exported more than $665 million worth of garment items to Russia in FY21, with industry players considering it as a rising market for Bangladeshi apparels.

Exports to the country have since continued to fall, standing at $257.26 million in FY26.

POLAND AS A ROUTE TO RUSSIA

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said a significant volume of garment items was being re-exported from Poland to Russia.

Before the Russia-Ukraine war, Turkish traders also imported Bangladeshi garments for re-export to Russia, he said. Exports to Turkey declined after the country imposed a 17 percent duty on Bangladeshi garment items in 2011, according to him.

After the war began, Polish importers started re-exporting garments to Russia, contributing to the growth in Bangladesh’s exports to Poland, said Mahmud.

Salah Uddin Ahmed, managing director of IFS Texwear (Pvt) Ltd, which exports nearly $2 million worth of knitwear a month, also said some Polish buyers sourcing garments from Bangladesh also re-export products to Russia.

He, however, said he did not have specific evidence confirming that the garments being re-exported to Russia were sourced from Bangladesh.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said Poland could serve as a third country for exporting garments to Russia.

Western sanctions imposed after Russia’s invasion of Ukraine restricted several Russian banks’ access to the SWIFT international financial messaging system. The restrictions complicated some cross-border payment arrangements, making it harder for Bangladeshi exporters to receive payments from Russian buyers.

The war has also disrupted payments involving buyers linked to Russia. 28 Bangladeshi garment exporters have been struggling to recover $5.2 million from a Polish buyer for nearly two years, said Mijanur Rahman, managing director of Fabrica Knit Composite Ltd and a vice-president of the BGMEA.

Mijanur, who has been coordinating efforts to resolve the payment issue, said the buyer’s business had been disrupted by the war.

CHINA’S LOST ORDERS, BASICWEAR DEMAND

Exporters say the rise in shipments to Poland is not solely linked to the Russia-Ukraine war.

According to Mijanur, the loss of work orders by Chinese suppliers was one of the reasons behind the increase in Bangladesh’s garment exports to Poland.

Demand for basic garment items in the market was also strong, he added.

IFS Texwear’s Salah Uddin, meanwhile, noted that Poland was a growing market for Bangladeshi exporters because they enjoy zero-duty access under the European Union’s trade arrangements.

The duty advantage, combined with demand for basic garments and possible shifts in sourcing from China, has supported Bangladesh’s exports to Poland, exporters said.​
 

Govt eyes commercial revival of ‘Dhakai Muslin’: state minister

Star Business Report

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The government is working to bring the fabled ‘Dhakai Muslin’ back to commercial production, aiming to revive the heritage fabric, create jobs and open up global markets, State Minister for Textiles and Jute Md Shariful Alam said today.

Speaking at a seminar in Dhaka, he said research had restored the technology for producing the fabric, which was lost about 170 years ago. The next challenge is to improve the cotton used to make muslin and develop the textile for wider commercial use.

The seminar, titled “Dhakai Futi Karpas Fiber Genomics and Development”, was held at the CIRDAP Auditorium to discuss ways to improve the varieties of Futi Karpas, the cotton used to produce muslin.

It was organised under the second phase of the project to restore the technology for making muslin yarn and cloth. The Bangladesh Handloom Board is implementing the project under the Ministry of Textiles and Jute.

“Dhakai Muslin is not just a name; it is a witness to heritage and royal grandeur,” Shariful said. “Very soon, the long-awaited Dhakai Muslin, a golden chapter of our history, an inseparable part of our national identity and a saga of glory, will return in full once again.”

Textiles and Jute Secretary Sharf Uddin Ahmed Choudhury said under the ongoing project, researchers were working to develop Futi Karpas varieties that are less dependent on daylight duration, produce higher cotton yields and have more and larger cotton bolls with fewer seeds.

They are also seeking to control plant height, he said.

Research is also under way to improve the count, which determines finesse, and quality of muslin yarn and refine the processes involved in preparing, weaving and finishing the fabric, said the secretary.

Handloom Board Chairman Md Jakir Hossan said intensive training and research had helped spinners progress from producing yarn of 80 metric count to 750 metric count.

Md Ayub Ali, project director of the muslin restoration project, said the first phase was completed at a cost of Tk 12.10 crore, restoring the technology for producing Dhakai Muslin after nearly 170 years.

The second phase is now under way with a budget of Tk 18.50 crore, he said.

Ahmed Mohamed Abdelmoghny Abdulbaky, chief researcher at the Cotton Breeding Department of Cotton Research Institute under Egypt’s Agricultural Research Center, also took part in the seminar as a discussant.​
 

Extreme heat is raising costs for local garment factories

Mohiuddin Rubel


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As global temperatures rise, manufacturing and industrial sectors face a growing crisis: extreme heat. While global climate discussions often focus on emissions targets, the immediate challenge for Bangladesh’s $39 billion ready-made garment (RMG) industry lies inside its factories. The industry employs more than four million workers, and rising indoor temperatures are straining workers’ health, increasing operating costs and testing the industry’s ability to adapt.

The consequences of extreme heat are no longer abstract projections. Bangladesh lost an estimated 29 billion potential labour hours to heat exposure in 2024, a 92 percent increase on the 1990-99 average. This resulted in an estimated income loss of $24 billion, equivalent to nearly 5 percent of the country’s GDP.

Inside factories in Dhaka and Chattogram, conditions are becoming increasingly difficult. Indoor temperatures routinely exceed 35°C and can reach 40°C during peak summer months. A February survey by the Bangladesh Institute of Labour Studies (BILS) found that 78 percent of garment workers felt the summer heat had visibly worsened in recent years, with roughly half reporting weakness or illness as a direct result.

Keeping factory floors cool has become a business necessity rather than simply a matter of comfort. Factory managers are expanding the use of fans, improving ventilation and increasing maintenance of cooling systems. They are also ensuring access to safe drinking water and oral saline, introducing structured hydration breaks and first-aid protocols for heat-related illness, and adjusting working hours during severe heat spells.

These necessary measures come at a cost. Factory owners report that additional spending on electricity, backup generator fuel during power outages, drinking water and worker welfare programmes adds 2 to 5 percent to operating budgets during the peak summer months of April to June.

Extreme heat also directly affects productivity. A landmark 2025 study led by the University of Sydney and published in The Lancet Planetary Health, based on research inside Bangladeshi RMG factories, found that heat stress reduced output by 12 to 15 percent without cooling interventions, as workers slowed down under thermal strain. High temperatures cause fatigue, headaches and digestive illness, increasing error rates and production defects.

Poor sleep during hot nights and exhausting commutes leave workers arriving at factories already tired, contributing to absenteeism and health-related leave. However, the same study offered grounds for optimism. Targeted, low-cost interventions, such as cooling individual workers rather than entire factory floors, recovered a meaningful share of lost productivity. This suggests the problem can be addressed without prohibitive capital investment.

Factories cannot tackle the crisis alone. Workers’ living conditions determine how well they recover between shifts. Frequent power cuts, poor housing and inadequate water supplies in densely populated residential areas prevent workers from resting properly on hot nights, creating a cycle of fatigue. Building resilience requires targeted government investment in reliable electricity, clean water and climate-resilient urban infrastructure.

Global brands sourcing from Bangladesh must also recognise that suppliers cannot bear the costs of adaptation alone. Protecting supply chains requires long-term sourcing commitments, shared investment, realistic pricing that reflects rising operating costs, and the integration of climate resilience into core compliance frameworks. Without coordinated action, the next heatwave could become an industrial crisis.

The writer is founder and CEO of Bangladesh Apparel Voice.​
 

A new headwind facing Bangladesh’s export trade
Protests across EU could squeeze apparel orders
Exports already under pressure from sluggish demand, cutthroat competition


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Protests spreading like wildfires across France and other European countries are stoking concerns among garment exporters as prolonged unrest might weaken consumer spending and deepen pressure on apparel orders from Bangladesh's largest export market.

Global media reported that the protests in France are not over as fresh nationwide demonstrations and heavy security operations took place on Saturday, too, following a week of riots and looting over rising living-cost grievances.

Reuters on October 20 reported citing Carrefour CEO Alexandre Bompard that around 50 of its stores were hit on the day while many were looted.

Carrefour, one of the largest supermarket chains in France, apprehended the total impact could be between 80 million euros and 200 million euros of income.

Reuters also quoted Alexandre Bompard as saying "the unrest is hurting consumer confidence that was already weak because of high fuel prices."

Local apparel exporters have said protests across France, Italy and other European countries threaten to add another layer of uncertainty to Bangladesh's garment export that is already under pressure from sluggish demand, falling orders and intensifying competition from major suppliers, including India.

Talking to the Financial Expres, Nafis-Ud-Doula, director, Impress-Newtex Composite Textiles Ltd, said some buyers from Italy and France wanted to know the current status of the orders they have already placed -- whether they are already produced or not.

"Buyers might want to hold certain portion of work orders," he said.

Also a director of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), he said they were yet to face any impact, but if the protests prevailed for a long time, sales in those markets might decline and so the sourcing from Bangladesh.

"It can put another blow to the local exports that have been falling for last several months," he noted.

Data analysis shows that August figures showed signs of improvement in overall EU apparel imports. Compared with August 2025, EU import value rose 0.72 per cent in August.

According to Eurostat data, the EU imported apparel worth 60.29 billion euros in January-August 2026, down 3.83 per cent from 62.69 billion euros in the same period last year.

Bangladesh's apparel exports to the EU fell 11.67 per cent to 11.93 billion euros during the period from 13.50 billion euros a year earlier.

However, the August data showed local exports increased by 1.39 per cent in a sign of recovery.

When asked, Fazlee Shamim Ehsan, executive president of Bangladesh Knitwear Manufacturers and Exporters Association, said one of his France buyers indicated that the situation is not good there and warned Mr Ehsan to get prepared for about 20-percent less work orders in January next from the expected ones.

Talking to the FE on Saturday, Nuria Lopez, chairperson of Eurocham Bangladesh, said Bangladesh can't control the global issues, including the protests in France.

"We need to keep an eye on it but it is too early to assume that the problem will be solved soon.

"Bangladesh should focus on addressing its own issues as to how it could raise its competitiveness, how to balance the upcoming wage hike, improve customs, energy supply and logistics issues," she noted.

On a note of concern, Ms Lopez further noted that India is emerging as one of the strong competitors of Bangladesh and stressed market- access negotiations, including FTA, with the EU and pay attention to how neighbours are competing with Bangladesh.​
 

Bangladesh's denim exports to EU rise 12.71pc in August

BSS


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Denim jeans Reuters

Bangladesh's denim exports to the European Union grew 12.71 per cent year-on-year in August 2026 to 134.08 million euros, from 118.96 million euros a year earlier, according to Eurostat data.

The August growth outpaced the overall market, as total EU denim imports from the world rose 11.23 per cent to 430.16 million euros. Bangladesh's share of the EU's August imports stood at about 31.2 per cent, up from about 30.8 per cent a year earlier.

Over January-August, however, Bangladesh's shipments fell 5.85 per cent to 869.13 million euros from 923.11 million euros, a drop of about 54 million euros. The decline was sharper than the overall market's 4.40 per cent fall to 2,956.21 million euros.

As a result, Bangladesh's eight-month market share slipped to 29.40 per cent from about 29.9 per cent a year earlier. It nonetheless remained the EU's largest denim supplier, well ahead of Pakistan, by about 344 million euros.

Pakistan, the second-largest supplier, saw August exports grow 14.99 per cent to 87.71 million euros, but its January-August shipments fell 7.88 per cent to 525.49 million euros, a 17.78 per cent share.

Turkey, the third-largest, was hit hardest. Its August exports fell 13.26 per cent to 58.84 million euros, and its eight-month exports dropped 21.08 per cent to 438.25 million euros, a 14.82 per cent share.

Tunisia's eight-month exports fell 6.44 per cent to 219.94 million euros, while Cambodia's declined 6.47 per cent to 144.83 million euros. Morocco fell 14.48 per cent to 63.87 million euros.

Egypt was the standout, with exports up 59.57 per cent in August to 30.67 million euros and up 31.46 per cent over eight months to 188.14 million euros, for a 6.36 per cent share. China's exports rose 17.70 per cent over eight months to 197.13 million euros, giving it a 6.67 per cent share.

Vietnam and India, though small, posted strong growth. Vietnam's eight-month exports rose 45.38 per cent to 53.98 million euros, and India's rose 18.62 per cent to 31.40 million euros.

Bangladesh's eight-month decline was milder than that of Pakistan, Turkey, Tunisia, Cambodia and Morocco.

Talking to BSS, former Director of BGMEA Mohiuddin Rubel said Bangladesh has maintained a strong position in the European Union (EU) denim market despite an overall decline in apparel imports, thanks to its well-established supply chain, skilled workforce and technological capabilities.

He said Bangladesh had developed a strong foundation in denim manufacturing over many years, enabling the country to remain competitive in major markets, including Europe and the United States.

“Bangladesh has a strong supply chain base that has developed over many years. We have built expertise in technicians, technology and other areas of production,” Rubel said.

He said the country could further strengthen its position by shifting from volume-based production towards higher-value products, expanding value addition and adopting innovative technologies.

Although Bangladesh does not produce cotton, its strong fabric manufacturing capacity and established industrial base provide significant opportunities to upgrade denim products and increase export earnings, he added.

Rubel said the current slowdown in the European apparel market had affected exporters across countries, largely due to inflation, weaker imports and energy-related challenges.

Despite the difficult market conditions, Bangladesh continued to hold the leading position in the EU denim segment, with a substantial gap between the country and its nearest competitor, he said.

Rubel also stressed the importance of preparing for evolving EU trade rules, Generalised Scheme of Preferences (GSP) requirements and the European Green Deal.

Bangladesh should therefore focus on higher-value products, technological upgrading, innovation and compliance with emerging sustainability requirements to sustain its long-term growth in the global denim industry, he added.​
 

President stresses improved textile education to reduce reliance on foreign experts


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President Mirza Fakhrul Islam Alamgir on Sunday stressed the need to improve textile education and research to produce internationally competitive engineers and specialists and reduce the sector’s dependence on foreign experts.

He made the remarks when a seven-member delegation led by Bangladesh University of Textiles (BUTEX) Vice-Chancellor Prof Dr Md Julhas Uddin paid a courtesy call on him at Bangabhaban.

MP from a reserved seat for women and BUTEX alumna Sanjida Islam was also present.

Describing textiles as one of the country’s major economic sectors, the president emphasised ensuring suitable employment opportunities at home and abroad for textile graduates.

This would help make proper use of the country’s skilled human resources while earning foreign currency, he said.

The president also underscored the need to increase domestic cotton production to meet the raw material requirements of the textile industry.

He called for taking initiatives to encourage farmers, explore ways to reduce production costs and strengthen coordination between the agriculture and textile sectors.

He further stressed the need for more research into extracting fibres from natural sources, including jute, pineapple leaves and banana plants, alongside the development of synthetic yarn.

During the meeting, the delegation briefed the president on BUTEX’s contributions to the development of the country’s textile and readymade garment industries, as well as its academic and research activities.

They also highlighted several issues requiring attention, including infrastructure development, the establishment of modern laboratories, recruitment of additional staff, the creation of a separate BCS (Textile) cadre, increased budgetary allocations and the allocation of land in Purbachal, Dhaka, for a second campus.

The president listened to their concerns and advised them to contact the relevant ministries to resolve the issues.

He also assured the delegation of his cooperation.

During the meeting, the VC invited the president, also the chancellor of the university, to preside over BUTEX’s second convocation, scheduled for March next year.

The president accepted the invitation and assured the delegation that he would attend the event.

Other members of the delegation included Prof Dr Md Ahsan Habib, dean of the Faculty of Textile Management and Business Studies; Prof Shilpi Akter, dean of the Faculty of Textile Engineering; Prof Dr Hasina Akhtar, dean of the Faculty of Science and Engineering; Prof Dr Rasheda Begum Dina, dean of the Faculty of Textile Chemical Engineering; and Prof Dr Lamia Zahir of the Faculty of Fashion Design and Apparel Engineering.

The president's military secretary, secretary and press secretary were also present at the meeting.​
 

Bangladesh RMG price growth trails rivals in EU, US markets

Moinul Haque . Dhaka

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Representational image.

Bangladesh’s apparel unit prices grew more slowly than those of most competing suppliers in the United States and European Union markets over 2016-2025, reflecting the country’s concentration on low-cost products and continued reliance on cotton-based garments.

An analysis of 10-year data of US Department of Commerce’s Office of Textiles and Apparel, and Eurostat show that in the US market, Bangladesh’s unit price rose 8.1 per cent, compared with 10.5 per cent of Vietnam, 28.9 per cent of Cambodia and 8.6 per cent of Indonesia, while China fell 37.1 per cent.

10-yr apparel unit price growth

- In US: Bangladesh 8.1pc, Vietnam 10.5pc, Cambodia 28.9pc


- In EU: Bangladesh 5.9pc, Vietnam 12.2pc, Turkey 19.4pc

In the EU, Bangladesh recorded a 5.9 per cent increase, against 12.2 per cent in Vietnam and 19.4 per cent in Turkey, while China and India posted increases of 2.6 per cent and 1.2 per cent respectively.

Bangladesh began exporting garments to Western markets in 1978-80, while Vietnam’s large-scale entry into the global apparel trade took off in the early 1990s and accelerated after the 2001 US-Vietnam trade agreement.

Despite its later start, Vietnam has overtaken Bangladesh in US apparel export earnings and unit prices and recorded faster unit price growth in the EU, underscoring the importance of product diversification and value addition in boosting export competitiveness.

Data also showed that Bangladesh’s apparel export value to the US increased by 54.2 per cent, from $5.30 billion in 2016 to $8.18 billion in 2025. Shipment volume grew by 42.6 per cent, from 1.861 billion to 2.655 billion square metre equivalents, while the average unit price rose from $2.85 to $3.08 a square metre equivalent.

In the EU, the country’s apparel export value grew by 54.6 per cent, from €12.59 billion to €19.47 billion, while shipment volume increased by 46 per cent, from 9,33,000 tonnes to 1.362 million tonnes. The average unit price rose from €13.49 to €14.29 a kilogram.

Experts said Bangladesh’s apparel exports remained volume-driven because its product range was concentrated in a few items.

They said its image as a mass-scale, lower-value supplier also attracted buyers seeking bulk orders, underscoring the need for product diversification, advanced technology and stronger branding to attract higher-value buyers.

The two datasets use different measurement units: OTEXA records US apparel imports in square metre equivalents, while Eurostat measures EU imports in kilograms.

Bangladesh retained its position as the EU’s second-largest apparel supplier by export value, behind China, throughout the decade. Its share of EU apparel import value increased from 17.4 per cent in 2016 to 20.6 per cent in 2025, the largest percentage-point gain among the six suppliers examined.

Despite the increase, Bangladesh’s EU unit price remained the lowest among the six countries. China’s price rose from €18.63 to €19.12 a kilogram, while India’s increased from €19.51 to €19.74. Türkiye’s climbed from €22.44 to €26.80 and Vietnam’s from €23.94 to €26.85. Cambodia was the only supplier whose price declined, from €17.20 to €16.71 a kilogram.

Vietnam also outperformed Bangladesh in the EU market, increasing its export value by 82.9 per cent, shipment volume by 63.1 per cent and unit price by 12.2 per cent.

In the US, Bangladesh remained the third-largest supplier among the six countries examined. Its share of total apparel import value rose from 6.6 per cent in 2016 to 10.5 per cent in 2025.

Although Bangladesh’s US unit price remained below the six-country average, the gap narrowed from about 6 per cent in 2016 to less than 2 per cent in 2025. Its 2025 price of $3.08 per square metre equivalent was lower than Indonesia’s $4.03, Vietnam’s $3.56 and India’s $3.46, but slightly higher than Cambodia’s $3.06 and substantially higher than China’s $1.57.

Centre for Policy Dialogue research director Khondaker Golam Moazzem told New Age on October 8 that Bangladesh’s apparel export growth remained predominantly volume-driven because its product basket was highly concentrated, despite some diversification over the years.

Around 70 per cent of the country’s apparel exports, he said, were concentrated in five major products, including T-shirts and trousers.

Rival countries offered a more diverse range of medium- and high-value products, enabling them to secure higher unit prices, Moazzem said.

Bangladesh’s image as a mass-scale, lower-value supplier also attracted buyers seeking large-volume orders rather than higher-value products, he said.

Moazzem said the government and businesses needed coordinated efforts to diversify the products, adopt advanced technologies, strengthen environmental and social compliance, and improve country and product branding to attract buyers willing to pay higher prices.

Bangladesh Knitwear Manufacturers and Exporters Association Executive President Fazle Shamim Ehsan said Bangladesh lagged behind Vietnam in product prices and value addition, as Vietnam’s greater use of man-made fibres, compared with Bangladesh’s reliance on natural fibres, allowed it to produce higher-value garments.

‘Vietnam also enjoys a logistical advantage, with shipments reaching destinations about 20 days earlier than ours. The advantage enables Vietnamese manufacturers to undertake more value-added work and secure better prices, while Bangladesh continues to lag behind in unit prices,’ he said.​
 

HSBC, BGMEA to host apparel roadshow in Hong Kong

Staff Correspondent . Dhaka

HSBC Bangladesh and the Bangladesh Garment Manufacturers and Exporters Association would organise the Bangladesh Apparel Roadshow in Hong Kong on October 28 to showcase the country’s expanding apparel manufacturing capabilities and explore new opportunities for international trade and investment.

In collaboration with the Consulate General of Bangladesh in Hong Kong, the event would bring together global buyers, sourcing partners and industry stakeholders to highlight Bangladesh’s progress in product diversification, technical apparel, innovation and sustainable manufacturing, said a press release.

As one of the world’s leading apparel-exporting countries, Bangladesh is working to strengthen its position in the global value chain amid changing international sourcing strategies and evolving market dynamics.

The roadshow would provide a platform to showcase the sector’s growing capabilities and promote deeper international trade and business collaboration.

HSBC Bangladesh CEO Md Mahbub ur Rahman and BGMEA President Mahmud Hasan Khan would co-host the event.

Meanwhile, in a recent press conference, Mahmud Hasan Khan said that the roadshow would help connect Bangladeshi manufacturers directly with international buyers and investors and promote higher-value products and long-term business partnerships.

He said that Hong Kong, a major Asian financial hub and a strategic centre of global supply chains, offered an important platform for showcasing Bangladesh’s apparel manufacturing capabilities.

The roadshow would highlight manufacturers’ capabilities in vertical integration, innovation, sustainability, live product showcases, synthetic materials and technical apparel.

He said that they invited such international brands and buyers that do not usually source products from Bangladesh, with the aim of introducing them to the country’s manufacturing strengths and creating new market opportunities.

Khan also invited domestic and international buyers, brands and other stakeholders to participate in the Bangladesh Apparel Roadshow 2026.

The programme would feature presentations on Bangladesh’s apparel manufacturing capabilities, discussions on the global retail outlook and emerging sourcing trends, a panel discussion and an apparel showcase highlighting innovation and technical apparel, said the HSBC.

Senior officials from HSBC Hong Kong, including Oliver T Jones, Head of Global Network Banking, Hong Kong, would participate in the discussions.

The event aims to facilitate engagement between international buyers and industry stakeholders, encouraging dialogue on emerging business opportunities and the changing requirements of global apparel supply chains.

Through its international network, global trade expertise and longstanding presence in Bangladesh, HSBC supports businesses in navigating international markets and pursuing cross-border growth opportunities.

The roadshow reflects the bank’s commitment to strengthening international business connections and supporting Bangladesh’s participation in global trade.

BGMEA, the apex trade body representing the country’s apparel manufacturers and exporters, would contribute its industry expertise and representation to the initiative.

The collaboration would also highlight the importance of stronger international engagement in promoting product diversification, competitiveness and sustainable long-term growth in Bangladesh’s apparel sector.​
 

Bangladesh retains top denim exporter to Europe; China, India, Vietnam are also ahead

Staff Correspondent


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Bangladesh has retained its leading position in denim garment exports to the European Union (EU) File photo

Bangladesh has retained its leading position in denim garment exports to the European Union (EU). However, the country’s denim exports declined in the first eight months of this year (January–August), while exports from competitors such as China, Egypt, Vietnam and India grew rapidly.

According to data from Eurostat, the EU’s statistical office, EU member states imported denim garments worth 2.95 billion euros from countries around the world in the first eight months of this year. This represented a 4.40 per cent decline compared with the same period last year.

Bangladesh’s denim exports to the EU fell more sharply than the bloc’s overall imports.

The country exported denim garments worth 870 million euros in the first eight months of this year, down 5.85 per cent from the same period last year. Bangladesh now accounts for 29.40 per cent of the EU denim garment market.

Pakistan ranks second among denim garment exporters to the EU. The country exported denim worth 530 million euros in the first eight months of this year, a decline of 7.88 per cent compared with the same period last year. Pakistan currently holds a 17.78 per cent share of the EU denim garment market.

Türkiye and Tunisia rank third and fourth, respectively, among denim garment exporters to the EU. Türkiye’s denim garment exports fell by 21 per cent in the first eight months of this year, reaching 440 million euros.

Meanwhile, Tunisia, in Africa, exported denim worth 220 million euros. This represented a 6.44 per cent decline compared with the same period last year.

Competing countries are gaining ground

The figures for the three countries immediately behind Bangladesh in the EU denim export market do not tell the whole story. Four competing countries are rapidly increasing their denim garment exports.

For example, while Bangladesh’s exports fell by nearly 6 per cent in the first eight months of this year, Vietnam’s rose by 45 per cent.

According to Eurostat data, China’s denim garment exports to the EU rose by 17.70 per cent year on year in the first eight months of this year, reaching 200 million euros. China now accounts for 6.67 per cent of the market.

Similarly, Egypt’s denim garment exports to the EU increased by 31.46 per cent to 200 million euros between January and August. Egypt also holds a 6.67 per cent share of the market.

Cambodia and Morocco, which follow in the rankings, recorded declines of 6.47 per cent and 14.48 per cent, respectively, in their denim garment exports. During the first eight months of this year, Cambodia exported denim worth 140 million euros, while Morocco’s exports amounted to 60 million euros.

Meanwhile, Vietnam exported denim garments worth 50 million euros to the EU in the first eight months of this year, a 45 per cent increase compared with the same period last year.

India also exported denim garments worth 30 million dollars between January and August, recording growth of 18.62 per cent.

Bangladesh’s denim exports recover in August

Although Bangladesh lagged behind in the EU market earlier this year, its denim garment exports rose by 12.71 per cent in August, reaching 134.1 million euros. Overall EU imports of denim garments also increased during the month, rising by 11.23 per cent to 4.3 billion euros.

Pakistan recorded faster export growth than Bangladesh. Its denim exports rose by nearly 15 per cent in August to 87.7 million euros. During the same period, Türkiye’s exports fell by 13 per cent, while Tunisia’s increased by around 5.5 per cent.

Meanwhile, China’s denim exports grew by around 17.5 per cent in August. Egypt recorded an increase of 59.5 per cent. Cambodia’s exports rose by nearly 11 per cent, while Vietnam’s surged by 56 per cent. India’s exports increased by 52 per cent.

Mohiuddin Rubel, a former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and additional managing director (AMD) of Bangladesh Denim Experts, told Prothom Alo: “Although orders remained low during the first five months of the year, the following three months were somewhat better. As a result, the rate of export decline is slowing. However, competing countries have recorded higher export growth than us. One of the main reasons is that we cannot offer buyers competitive prices. Factories are struggling with high gas and electricity costs, as well as other challenges. This is pushing up production costs. Moreover, our product range is less diversified than that of our competitors.”

In response to another question, Mohiuddin Rubel said: “Vietnam has signed a free trade agreement (FTA) with the EU, while India is in the final stages of negotiating one. As a result, buyers are becoming increasingly interested in sourcing denim garments from these two countries. Once Bangladesh graduates from the least developed country (LDC) category, it will lose preferential market access under the Generalised System of Preferences (GSP) after a specified transition period. We must therefore take effective steps to negotiate FTAs as well to secure duty-free market access.”​
 

Relief for sweater makers as NBR eases yarn import restrictions

Staff Correspondent . Dhaka


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NBR headquarters at Agargaon in Dhaka. | New Age photo.


The National Board of Revenue has clarified that restrictions on bonded imports of 10-30 count cotton yarn apply only to single-count yarn, not double-count yarn, essential for sweater production, bringing some relief to manufacturers concerned about raw material shortages.

In an order issued on Thursday, the NBR specified that 10-30 count cotton yarn under HS headings 5205, 5206 and 5207 of the Bangladesh Customs Tariff refers to single-count yarn.

The clarification followed amendments to earlier orders withdrawing bonded warehouse facilities for imports of the specified yarn, not distinguishing between single- or double-count.

The NBR said the clarification followed recommendations from an inter-ministerial committee formed to address problems in the textile industry and protect local industries while ensuring raw material supplies for genuine exporters.

Bangladesh Knitwear Manufacturers and Exporters Association President Mohammad Hatem told New Age that although the clarification had provided some relief to sweater makers, it did not fully address the industry’s concerns or compensate for the losses already incurred.

He said that double-count yarn was essential for sweater production but was not manufactured in Bangladesh. The earlier restrictions had caused significant losses across the export sector. Following the clarification, imports of double-count yarn had been cleared and released.

The NBR’s September 7 order withdrew bonded import facilities for 10–30 count cotton yarn, requiring exporters to provide bank guarantees to import the yarn, subject to certification by relevant trade bodies, with the guarantees to be released after exports.

But following objections from manufacturers, the commerce ministry asked the NBR on September 13 to suspend the decision for review.

However, the NBR issued another order on October 14, retaining the restrictions.

The restriction was imposed to protect local textile mills and prevent misuse of the bonded facility, under which export-oriented manufacturers can import raw materials duty-free.

The Bangladesh Garment Manufacturers and Exporters Association and the BKMEA sought prime minister’s intervention in a joint letter sent on October 15, saying that the measure was disrupting raw material supplies and increasing production costs for export-oriented factories.

They argued that the restrictions could undermine production and export competitiveness by making it more difficult for manufacturers to obtain the yarn required to fulfil orders.

The Bangladesh Textile Mills Association, however, urged the government to retain the restrictions, saying they would protect domestic investment, prevent misuse of bonded facilities and ensure fair competition.

In a statement on October 18, the BTMA said policy decisions should take into account the $32 billion invested in the primary textile sector.

The controversy has also raised concerns among investors in export processing zones, whose factories rely on timely access to imported raw materials to fulfil export orders.

In a letter dated October 26, the Bangladesh EPZ Investors’ Association urged the Bangladesh Export Processing Zones Authority to seek written clarification from the NBR on whether the restrictions applied to approved EPZ enterprises.

In the letter, BEPZIA President Shahadat Musharraf Khan said uncertainty over the orders and their implementation had raised concerns about raw material supplies, working capital and the fulfilment of export commitments.

The association said EPZ investors had made investment decisions based on the existing legal framework and facilities administered by BEPZA, including duty-free imports of qualifying raw materials for approved export production.

BEPZIA urged the authority to seek written clarification from the NBR on the legal position of the restrictions in relation to the EPZ framework.

The association warned that applying the restrictions to EPZ factories could disrupt production, delay exports and undermine investor confidence.

Additional bank-guarantee requirements could tie up working capital, increase financing costs and delay customs clearance, potentially exposing exporters to claims from international buyers. Prolonged disruption, it added, could result in order cancellations, production cuts, layoffs and labour unrest, threatening workers’ livelihoods and the wider EPZ community.

BEPZIA proposed retaining existing import facilities for eligible EPZ enterprises, arranging interim clearance of yarn consignments and protecting existing letters of credit and confirmed export orders.

It also called for an urgent meeting involving BEPZA, the NBR, customs authorities and the association to agree on procedures and ensure consistent implementation through ASYCUDA World, the customs data system.​
 

Apparel production largely returns to normal

Wage board meeting scheduled for today

Staff Correspondent . Dhaka

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Representational image.

The production at most readymade garment factories in major industrial hubs largely returned to normal on Sunday after several days of unrest.

However, some 40 units – 20 of them in Savar and Ashulia – remained closed as workers continued protesting for a monthly minimum wage of Tk 30,000, an RMG sector stakeholder said.

Workers in Savar, Ashulia, Gazipur, and Mirpur resumed work after the Minimum Wage Board’s first meeting, which pledged to set a new minimum wage by December, and after a tripartite meeting held on Wednesday.

The board is scheduled to hold its second meeting today, where both workers and owners might submit their proposals, said insiders familiar with the issue.

Anwar Hossain, the permanent workers’ representative to the wage board, told New Age that they were holding meetings with other federations and stakeholders.

‘We are discussing our proposal and preparing for the second meeting. If everything goes well, we are hoping to submit a proposal,’ said Anwar Hossain, also the president of the Bangladesh Jatiyatabadi Sramik Dal.

However, he didn’t reveal any amount.

ABM Shamsuddin, the owners’ representative and a director of the Bangladesh Garment Manufacturers and Exporters Association, said they remained concerned about the unrest, as 40 factories stayed closed on Sunday.

‘After discussing, we would take a decision on submitting our proposal, which might be on Monday or not,’ he added.

The production resumed after a two-day break, with Friday and a general holiday on Saturday marking National Revolution and Solidarity Day.

Ashulia Industrial Police-1 superintendent Mohammad Mominul Islam Bhuiyan said workers at most of the 1,873 industrial units in Savar and Ashulia were working peacefully.

Workers returned after assurances that wages would be revised in line with the wage board’s recommendations.

Savar Upazila Nirbahi Officer Saiful Islam said the overall situation was normal but warned that the coming days would be crucial as owners must pay wages by November 10.

In Gazipur, workers entered factories in an orderly manner at Konabari, Tongi, Banglabazar and other areas, with only a few isolated incidents, according to industry insiders.

Security measures remained in place for the ninth consecutive day, with platoons of specialised forces deployed in Gazipur.

Meanwhile, workers at two footwear factories in Gazipur, Apex Footwear and Zenith Footwear, halted production on Sunday, pressing for 14-point demands, including higher wages.

In a statement, Apex Footwear Limited said it is committed to maintaining healthy, positive and long-term industrial relations based on mutual trust, respect, and cooperation.

Meanwhile, Garments Sramik Front would hold a rally in front of the National Press Club today and submit its wage proposal to the chairman of the Minimum Wage Board, demanding Tk 37,000 as the minimum monthly wage.

The platform would also press for justice and adequate compensation for garment worker Toufiq Hossain, who died allegedly beaten by a group of people for filming a protest in Gazipur on Tuesday.​
 

Workers' side seeks Tk 32,000 minimum wage in RMG sector

Staff Correspondent

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The Minimum Wage Board held its second meeting on Monday at the board’s office in Segunbagicha, Dhaka.

The workers’ side has proposed a minimum monthly wage of Tk 32,000 for workers in the readymade garment (RMG) industry. It has also proposed setting the minimum wage at Tk 30,000 for new or apprentice workers.

The proposal was made at the second meeting of the Minimum Wage Board, held on Monday at the board’s office in Segunbagicha, Dhaka. The details were disclosed at a joint briefing with journalists after the three-hour meeting.

The meeting was chaired by Minimum Wage Board Chairman Syed Azad Subhani. Other attendees included the board’s independent member, University of Dhaka professor Mosleh Uddin Ahmed; employers’ representative and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) director ABM Shamsuddin; workers’ representative and Bangladesh Garments and Industrial Workers Federation (BGIWF) General Secretary Babul Akhter; the board’s permanent workers’ representative and Bangladesh Jatiyatabadi Sramik Dal President Anwar Hossain; and the permanent employers’ representative and Bangladesh Employers Federation Joint Secretary General Asif Ayub.

At the briefing, workers’ representative Babul Akhter outlined the details of their proposal. He said a worker needed Tk 45,000 to Tk 60,000 a month to maintain a decent standard of living for a family of four, taking into account nutritional needs, calorie requirements, housing, healthcare and education costs.

However, considering the industry's capacity and the overall situation, they had proposed setting the minimum wage at Tk 32,000 for Grade 4 workers.

The employers’ side was scheduled to submit its written proposal at the meeting but failed to do so.

Employers’ representative ABM Shamsuddin said that due to the disorderly situation in industrial areas around Dhaka, factory owners had to devote more attention to running their factories. As a result, they needed more time to prepare their wage proposal.

They had requested seven working days, but the board unanimously granted them four days. They will submit their proposal to the board within the next four working days.

However, Minimum Wage Board Chairman Syed Azad Subhani instructed the employers’ side to submit its proposal within four working days. He said, “Even if the employers’ side fails to submit its proposal at the next meeting, we will move forward with the decision-making process. We will not wait for their proposal.”

At the briefing, the chairman said the meeting had unanimously taken two important decisions.

First, to learn directly about workers’ actual conditions and expectations, board members will visit garment factories of all categories in different labour-intensive industrial areas within this week.

Second, independent board member Professor Mosleh Uddin Ahmed has been tasked with reviewing international indicators for determining wages. If necessary, he may seek opinions from the Institute of Business Administration (IBA) of the University of Dhaka, as well as prominent economists and experts in the country.

At the briefing, the chairman and representatives of both the employers and workers said the process of finalising the new wage structure would be completed by December. According to them, the new wage structure would take effect from December, and workers would receive their increased wages in the first week of January.​
 
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