Import of man-made fibre (MMF) as well as investment in its business is increasing in Bangladesh because of higher demand for polyester and viscose-made garment items worldwide. Local spinners imported 99,345 tonnes of polyester staple fibre (PSF) in 2020, up 3.4 per cent from 96,077 tonnes a year ago even during the coronavirus pandemic, according to data from the Bangladesh Textile Mills Association (BTMA). Currently, 40 spinning mills import PSF fibre to make yarns to produce high-end garments, such as sportswear. The import of viscose staple fibre (VSF) rose last year as well as spinners brought in 72,504 tonnes of VSF, an increase of 36 per cent year-on-year. The import of MMF has been on the rise over the last few years because of the surge in demand of fabrics made from the fibre as an alternative to cotton. Since MMF is used as a substitute for cotton fibre, all of the imported MMF is used by local millers. The demand for casual wear went through the roof for the longer stay of people indoor worldwide because of Covid-19. People are buying more MMF-based apparels as they are durable, recyclable and re-useable. MMF also meets the criteria for sustainable clothing compared to cotton-based fibre. Moreover, due to lifestyle changes, consumers are looking for products that are easy to care for. MMF adds to that convenience, spinners say. Nearly 30 per cent out of $8 billion investment in the primary textile sector in Bangladesh took place in the MMF segment, up from 20 per cent three years ago, spinners said. “The investment in MMF is growing as people are choosing the fabric as a substitute to cotton fibre,” said Md Khorshed Alam, chairman of Little Star Spinning. The use of MMF increased because of higher production of value-added garment items, he said. The concentration in cotton in terms of garment items produced and exported increased from 68.67 per cent in fiscal 2008-09 to 74.14 per cent in 2018-19, according to a study of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). The global trade of cotton-based apparel stands at around 35 per cent. It shrank by 0.5 per cent annually between 2007 and 2017. The share of MMF-based garments in the global apparel trade is around 45 per cent, and it grew at 5 per cent compound annual growth rate during the decade. In 2017, the global trade of MMF-based apparel was $150 billion. Bangladesh had a 5 per cent share in the segment, compared to 10 per cent of Vietnam. Industry people say Bangladesh has clear potential in the global market of MMF-based clothing. “The potential is very high as we are getting a lot of work orders of MMF-based apparels. We need to capture this global market,” said Syed Shafqat Ahmed, managing director of Saiham Knit. Currently, more than 120 spinning mills out of a total of 500 have the production facility for PSF and VSF, said Monsoor Ahmed, secretary of the BTMA. Member factories of the BTMA are expanding the production facility of PSF and VSF every year as the demand is increasing worldwide, he said. Since setting up a separate spinning mill dedicated to PSF and VSF yarn production is expensive, most producers make yarn from MMF in the same mill with separate lines. It costs Tk 80 crore to Tk 120 crore to set up a medium-sized MMF spinning mill in Bangladesh, Alam said. Out of 2,052,000 tonnes fibre import of Bangladesh in 2018, the share of cotton was 93.57 per cent, which highlighted the country’s reliance on the natural fibre. “While we can’t ignore the importance of the cotton-based market, the MMF-based clothing market bears strategic significance as far as our product diversification and higher-value-addition-led growth strategy is concerned,” said BGMEA President Rubana Huq. BTMA President Mohammad Ali Khokon said the import of MMF needed to be duty-free like cotton as the demand of yarn was increasing. The imposition of 5 per cent VAT on the sales of yarn is a discouraging factor for the sector, he said. The price of MMF has increased because many mills were shut in China and India during the peak of Covid-19 last year. Three months ago, PSF was sold between $0.70 and 0.72 per kilogram. It went up to $1.30 to $1.40. VSF was priced between $1.15 per kg and $1.18 per kg three months ago. The prices now vary between $2.50 and $2.54.
