Defying all odds, the sector claimed the title of the second main export earner of the country after the RMG sector
Home textile has gradually emerged as a new player in the textile production and exports from Bangladesh.
Defying all odds, the sector claimed the title of the second main export earner of the country after the RMG sector.
According to the recently released Export Promotion Bureau (EPB) data, the home textile exports earned $1.46 billion in July-May of the FY2021-2022, registering a year-on-year growth of 41.3%.
Industry insiders said that home textile is one of the first-line export sectors in Bangladesh with the ability to produce bulk products, which also accelerated the country to emerge as a global leader.
The home textile export basket of the country includes bed linen, bed sheet and other bedroom textiles, bath linen, carpets and rugs, blankets, kitchen linen, curtains, cushions and cushion cover, and covers for quilts.
“Bangladesh entered the market of home textile in the 1980s” M Shahadat Hossain, president of the Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA).
But Bangladesh only earned $150 million by exporting home textile products in the FY2004-05, showed the EPB data.
However, the situation has changed now. Just a decade ago, buyers thought that home textile products were only produced in China, India, Pakistan and Turkey. Now the name Bangladesh has also been added to the list of the countries producing home textile products.
Industry insiders said that the reasons behind the upcoming lead of Bangladesh are investments in research, quality products, innovation and latest technology, sustainable growth, and government support.
However, the number of home textile factories in Bangladesh is still less compared to woven or knit garments.
“There are more than 100 home textile factories in the country. But only around 40 factories are now operational in Dhaka, Gazipur and Chittagong,” said M Shahadat Hossain.
However, Zaber & Zubair Fabrics, Towel Tex, Mosharraf Group, Saad Musa Group, Alltex, ACS Textile, Apex Weaving, Regent, JK Group, Classical Home etc have established themselves as strong exporters. Among them, Noman Group’s Zaber & Zubair Fabrics is the pioneer home textile marketer in Bangladesh.
Noman Group produces more than 70 tons of terry per day with 6,000 workforces in their factory in Bhawal Mirzapur.
According to a senior official of Noman Group, they export home textiles worth $27 million per month.
“The EU countries, Canada, the United Kingdom and Japan are our main export destinations,” he added.
According to Technavio, the global home textiles trade was valued at $118 billion in 2017, $131.5 billion in 2020 and will be $170-$180 billion by the end of 2025, growing at a CAGR of 3.5% or more during 2018-2025.
However, the demand for home textiles increased significantly from 2020 as people stayed home due to the coronavirus pandemic, said the industry insiders.
Despite these positive sides, Bangladesh’s share in the global home textile export market is only 7%. Moreover, although Bangladesh has immense prospects in home textile, the country is still lagging behind in ensuring fair prices.
Talking to Dhaka Tribune, Momin Miah, managing director of Momin Tex, said that although the market has recovered from the pandemic, the impact of the current global supply chain disruption, rising raw material prices and the ongoing Ukraine-Russia war is being felt in the country’s home textile industry.
“A number of home textile factories have shut down and many of them reduced their production by 30%-50% due to the price hike of raw materials and disruption in transportation,” he added.
He also said that the situation further deteriorated due to the hike in gas prices.
The government’s policy support is paramount for the sector, said the industry insiders.
M Shahadat Hossain said that the political stability of Bangladesh is good, which is instrumental for any industrial growth.
“Also, governmental support and other factors are quite good. These factors are certainly aiding us in maintaining a steady export growth,” he added.
But the government has to take initiative to address the corruption, and abolish NBR and custom-related harassment as these are the main hindrances to the flourishing of businesses.
“If you want to create a complete atmosphere for investment and businesses, you must put off the bureaucratic complexity, corruption, and the guardianship of the bureaucrats over the businesses and entrepreneurs,” he added.
The industry insiders also recommended increasing the cash incentive for exports to 10% from the current 4% and providing seamless service at ports.
They also said that China once dominated the home textile market. But after the labour cost increased there, the orders began to come to Bangladesh.
Moreover, ongoing political uncertainty in Pakistan has also discouraged buyers from placing orders there.
The entrepreneurs of Bangladesh have to negotiate for better prices to ensure ethical manufacturing, they also said.
