When an industry grows complacent and particularly dependent on a particular factor, then any kinds of changes and shocks are bound to cause issues in that industry
Our RMG industry has always relied on the import of cotton, but now that the prices of cotton have reached $1.3171 per pound — the highest in a decade — this has naturally caused a wave of alarm.
However, this is the perfect time to talk about the need to not only overcome the initial shock that will be caused to the sector, but also for our RMG industry to evolve and become more resilient, so that such shocks, which are increasingly more likely in this volatile world, are not an issue in the future.
The price of cotton has increased for many reasons. But while something like this might be explainable, the fact that we have become so reliant on imported cotton is something that has to be circumvented. The RMG industry is by far our largest export earner, Yet, events like this once again show that even when something works, an industry always needs to look forward and look for ways to better its operations.
On that note, people of interest in the RMG sector would do well to invest both in technology and look at our manufacturing practices so that the industry can grow resilient and more capable of handling future shocks like this.
Moreover, the government should be using this shock as a lesson to diversify its export basket, something this newspaper has editorialized numerous times. As the economy of a country grows bigger, it is prudent to diversify its export basket so that changes in one industry does not end up adversely impacting the entirety of the economy as a whole. Bangladesh has been talking and making efforts to diversify by investing in manufacturing and technology parks. The latest revelations in the RMG industry should work as an incentive for these efforts.
