The country imported a substantial volume of raw materials, especially raw cotton, cotton yarn, woven fabrics and synthetic fibres, last year to feed local textile and ready-made garment (RMG) industries, said industry insiders. Import of key raw materials had increased by about 5-10 per cent last year despite a comparatively slow growth rate in RMG export. The sector saw a 4.08 per cent export growth in the last fiscal year, 2014-15. However, it failed to keep pace with the growth of imported input. According to Bangladesh Textile Mills Association (BTMA), the country imported about 1.32 million tonnes (6.1 million bales) of raw cotton in 2015, up by 10 per cent from 1.20 million tonnes (5.5 million bales) last year. At present, local textile mills meet 90 per cent of the demand for raw materials for knitwear sub-sector of the apparel industry and 40 per cent for woven sub-sector. The country imports more than 95 per cent of cotton to feed the industries, as the domestic production can hardly meet 3-5 per cent of the country’s total demand. Last year, it produced about 1,45,000 bales of cotton. To bridge the gap, the country also imported some 0.29 million tonnes of cotton yarn, 0.48 million tonnes of woven fabrics and 92,577 tonnes of knitted fabrics last year, as against 0.28 million, 0.45 million and 67,061 tonnes respectively in the previous year. Import of synthetic fibres, like – Polyester and Viscose staple fibres, marked a substantial growth last year. The millers imported some 68,726 tonnes of Polyester Staple Fibre and 29,542 tonnes of Viscose Staple Fibre last year, as against 51,729 and 18,846 tonnes, registering a growth of 32 per cent and 56 per cent respectively. According to BTMA, the demand for synthetic fibres has increased in recent days, as these can easily be blended with cotton to produce mixed cloths. “At present, some 50 mills are using synthetic fibres as against 5-7 mills a few years ago,” said an executive of the association, expecting more use of the fibre in the coming days. Spinning sub-sector is producing cotton yarn, polyester, synthetic yarn, woollen yarn and blended yarn mixed of cotton and polyester of different counts (mostly up to 80 counts). The country experienced a notable growth in import of RMG raw materials. But export of RMG, both knits and woven, failed to keep pace with import of basic raw materials used to produce finished products, raising question among millers about the proper use of imported raw materials. Many industry insiders, especially textile millers, attributed the reasons to leakage of imported raw materials especially the fabrics into the local market. The Directorate of Customs Intelligence and Investigation (DCII) had seized a huge quantity of fabrics from various parts of the country in recent days. The National Board of Revenue (NBR) has decided to go tough on errant traders, who were allegedly misusing the bonded warehouse facility. Under the facility, the export-oriented industries are allowed to import duty-free fabrics. At least 80 per cent of the fabric imported under this facility must be exported, while the rest 20 per cent are allowed as waste. But according to NBR, a section of businessmen misuse the bonded warehouse facility by selling duty-free imported raw materials and finished goods in local market instead of using them in their own production line. The Transparency International Bangladesh (TIB) in a recent report on the garment supply chain accused factory owners of selling unused materials in local market, as they import duty-free raw materials in higher quantity than the amount required. Members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), however, denied the allegation of selling imported fabrics in local market by apparel makers. Asked about the gap between export of RMG and import of raw materials, they pointed out that the yarns produced from the cotton are used by various sub-sectors. “Besides RMG sector, the yarns are being used by various weaving sub-sectors, like – specialised textiles, handlooms and knitting and hosiery factories, across the country,” said BGMEA former president and Envoy Group managing director Salam Murshedy. A large number of handloom and weaving factories in the country are using yarns of various counts to produce traditional items, like – saree, lungi, napkin, bedcover and bed-sheet etc. According to industry sources, they are producing more than 100 million metres of cloths annually. The RMG exporters also attributed the sluggish export growth to prolonged political unrest and a series of disasters, including Tazreen factory fire and Rana Plaza collapse, which severely hit the export growth of the sector.
