Bangladesh is missing the opportunities of adding more local values to its readymade garment (RMG) export sector.BTMA, the textile millers’ trade body, says they can meet only 35 per cent of the RMG industry demand. “Despite prospect of a big local market on the growing demand, new investment in the spinning and weaving sector is not happening due to power shortage and land crisis,” said Md Khorsed Alam, a director of Bangladesh Textile Mills Association.BTMA data point to no fresh investment in the textile sector for the last several years except import of capital machinery and expansion of some mills. The association said till today investment in the primary textile sector stands at more than $400 crore.BTMA officials think Bangladesh still can seize the opportunities of grabbing at least another 35 per cent market share for the export sector as exporters source only 35per cent woven fabrics from local mills and they import the rest 65 per cent from other countries under back-to-back letter of credit (LC). Khorsed Alam said if the government ensures power, easy bank loan and arranges lands, it is possible to invest more by the local entrepreneurs in the woven textile sector, adding more values to apparel exports.Though in the woven sector the local share for fabrics is only 35 per cent but it is more than 90 per cent of the total requirements for knit fabrics. BTMA Vice President Abdullah Al Mahmood also suggested necessary support to increase the local share for woven fabrics to 60 per cent in the next five years.He said, “Still RMG exporters prefer local woven fabrics as they can get it within low lead time and there is option of changes for the defective fabrics.” He pointed to the positive side that local mills are currently manufacturing high-tech woven fabrics but it is still less than 40 per cent of the demand for export industry.The RMG exporters now import the required high quality fabrics from China, Korea, India and other countries as local mills are yet to invest in manufacturing such types of artificial yarn based woven fabrics. Abdullah Al Mahmood said textile mills are missing the opportunity of a vast local market for woven fabrics.
