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Listed textile, RMG companies in a tight spot

Stock market data depicts a sorry picture of the textile and garment companies, depriving thousands of investors of expected dividends from the sector that accounted for 84 percent of Bangladesh’s exports last fiscal year. Analysing the data of 36 listed companies for 2011-2018 period, The Daily Star found that their net profits nosedived to Tk 341 crore in 2018 from over Tk 1,252 crore eight years ago. Entrepreneurs blamed higher cost of production, over capacity, competition, exchange rate and lower prices from international buyers for the situation. But an analyst raised questions about the quality of financial reports these companies make public. Data showed of the 36 listed textile and garment companies nine incurred losses last year. But all of them except one had logged profits in 2011. After 2011 another 19 textile companies have been listed on the DSE to take the tally to 55. An aggrieved investor said he bought some shares of Generation Next Fashions at Tk 8 per share against Tk 10 face value on October 1 last year seeing the company’s dividend paying trend, which is no less than 10 percent a year. The investor lost half of the share value in just one year and the price further fell to just Tk 2.4 a share on Thursday. “Now I don’t know how long it will take to get my investment back,” said the investor wishing not to be named. He is not alone; there are thousands of investors as public shareholders accounted for over 60 percent of the stakes in the company while sponsors shareholders have less than 14 percent shares. Conditions of the remaining companies are more or less the same as Generation Next as share price of 19 of the 55 firms trading at below their face value. Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue, said the listed companies’ data seem doubtful due to poor financial reporting, so it may not represent the whole sector. Many companies expanded their business seeing a lucrative growth in the sector and their sales volume soared and so did their revenue. “However, it is true that the clothing sector suffers for higher cost to meet compliance after Rana Plaza incident and the price of per unit dropped in the international market.” In 2013, the building collapsed in Savar on the outskirts of the capital, leaving at least 1,138 people dead and 2,500 others injured in the country’s deadliest industrial accident. Since then, local garment entrepreneurs put more than $1 billion to remediate the factories for preventing such tragedies in future. Overall, the sector is suffering from lower profits, said Rubana Huq, president of the Bangladesh Garment Manufacturers and Exporters Association. The cost of production of apparel items increased 30 percent between 2014 and 2018. Furthermore, the minimum wage of garment workers has increased 51 percent since December last year, she said. Between fiscal years 2015-16 and 2018-19, the industry’s value addition has gone down 1.61 percent though apparel exports have increased from $28.10 billion to $34.13 billion during the period. “Competitive countries have devalued their currency but we don’t, so we are lagging behind in the competition,” Huq added. She also blamed the unplanned expansion in the industry for the retailers’ accepting low prices. As many as 39 percent of the garment manufacturers are selling garment items to buyers at prices lower than the production costs now, according to a survey of the Fair Wear Foundation, an Amsterdam-based organisation that works to improve labour conditions in garment factories. Textile companies’ main input is fuel and captive power, said Mohammad Ali Khokon, president of the Bangladesh Textile Mills Association. “The price of captive power has increased 435 percent since 2012.” The interest rate of the banking sector also rose, so bank loan-dependent companies are hurt by the higher interest rate, said Khokon, also the managing director of Maksons Spinning Mills. The price of product also fell in the last two years, which hurt the textile makers’ profit, he added. If the suppliers do not accept prices below their production costs, they will lose everything as they will have to pay the workers at the end of the month without any production in factories, industry insiders said. Textile sector’s performance is the worst in the market, so investors are disappointed with the sector, said a top official of a leading asset management company. At present, 15 textile companies out of the total 55 are ranked as junk stocks due to their failure to provide dividends or hold annual general meeting or shuttering of their factory. 

পোশাক রপ্তানিতে ভিয়েতনামের পেছনে বাংলাদেশ

চলতি বছরই হয়তো ভিয়েতনামের কাছে দ্বিতীয় শীর্ষ পোশাক রপ্তানিকারকের মুকুট হারাতে যাচ্ছে বাংলাদেশ। চলতি ২০১৯-২০ অর্থবছরের প্রথম ৪ মাসে রপ্তানি ৬ দশমিক ৬৭ শতাংশ কমে যাওয়ায় শঙ্কাটি আরও প্রবল হচ্ছে। ইতিমধ্যে বছরের প্রথম ৯ মাসে পোশাক রপ্তানিতে বাংলাদেশকে ছাড়িয়ে গেছে ভিয়েতনাম।

রপ্তানি উন্নয়ন ব্যুরোর (ইপিবি) তথ্যানুযায়ী, চলতি বছরের জানুয়ারি থেকে সেপ্টেম্বর পর্যন্ত প্রথম ৯ মাসে বাংলাদেশ থেকে ২ হাজার ৬১০ কোটি মার্কিন ডলারের পোশাক রপ্তানি হয়েছে। অন্যদিকে একই সময়ে ভিয়েতনাম থেকে রপ্তানি হয়েছে ২ হাজার ৯৩০ কোটি ডলারের পোশাক। তার মানে, ৯ মাসে বাংলাদেশের চেয়ে ভিয়েতনাম ৩২০ কোটি ডলারের পোশাক বেশি রপ্তানি করেছে—এমন তথ্যই দিচ্ছে দেশটির গণমাধ্যম।

এদিকে যুক্তরাষ্ট্রের বাজারে পোশাক রপ্তানির প্রবৃদ্ধিতে ভিয়েতনাম অন্য সবার চেয়ে এগিয়ে রয়েছে। ইউএস ডিপার্টমেন্ট অব কমার্সের আওতাধীন অফিস অব টেক্সটাইল অ্যান্ড অ্যাপারেলের (অটেক্সা) তথ্যমতে, ভিয়েতনাম চলতি বছরের প্রথম ৯ মাসে যুক্তরাষ্ট্রে ১ হাজার ৩৫ কোটি ডলারের পোশাক রপ্তানি করেছে, যা গত বছরের একই সময়ের চেয়ে ১২ দশমিক ৭০ শতাংশ বেশি। অন্যদিকে বাংলাদেশ রপ্তানি করেছে ৪৫৬ কোটি ডলারের পোশাক, যা গত বছরের একই সময়ের চেয়ে ৯ দশমিক ৯৬ শতাংশ বেশি। অন্যদিকে বাজারটিতে শীর্ষ রপ্তানিকারক চীনের রপ্তানি কমেছে ১ দশমিক ১০ শতাংশ। চলতি বছরের প্রথম ৯ মাসে চীন রপ্তানি করেছে ২ হাজার ১০ কোটি ডলারের পোশাক।

ইংরেজি ভাষায় প্রকাশিত ভিয়েতনামের জাতীয় দৈনিক ভিয়েতনাম নিউজ–এর এক প্রতিবেদনে সম্প্রতি বলা হয়েছে, চলতি বছর কয়েকটি বাজারে জটিলতা থাকার পরও দেশটির পোশাক রপ্তানি চার হাজার কোটি ডলারের লক্ষ্যমাত্রায় পৌঁছাবে। ইতিমধ্যে ৯ মাসে ২ হাজার ৯৩০ কোটি ডলারের পোশাক রপ্তানি হয়েছে। রপ্তানির পাশাপাশি ভিয়েতনামের অভ্যন্তরীণ পোশাকের বাজারও ৯০০ কোটি ডলারে দাঁড়াবে। 

পোশাক রপ্তানিতে ভিয়েতনাম যে বাংলাদেশকে ধরে ফেলতে যাচ্ছে, তা কয়েক মাস আগে বিশ্ব বাণিজ্য সংস্থার (ডব্লিউটিও) ওয়ার্ল্ড ট্রেড স্ট্যাটিসটিকস রিভিউ ২০১৯ প্রতিবেদনে উঠে এসেছিল। সেই প্রতিবেদন অনুযায়ী, গত বছর ইউরোপীয় ইউনিয়ন (ইইউ), চীন, বাংলাদেশ, ভিয়েতনাম, ভারত, তুরস্ক, হংকং, ইন্দোনেশিয়া, কম্বোডিয়া ও যুক্তরাষ্ট্র—এই শীর্ষ ১০টি দেশ ৪২ হাজার ১০০ কোটি ডলারের তৈরি পোশাক রপ্তানি করেছে, যা মোট রপ্তানির ৮৩ দশমিক ৩ শতাংশ। এর মধ্যে সর্বোচ্চ ১৫ হাজার ৮০০ কোটি ডলারের পোশাক রপ্তানি করেছে চীন। বিশ্ববাজারে দেশটির হিস্যা ৩১ দশমিক ৩ শতাংশ।

চীনের পরই একক দেশ হিসেবে পোশাক রপ্তানিতে শীর্ষ স্থানে আছে বাংলাদেশ ও ভিয়েতনাম। বাংলাদেশ ৩ হাজার ২৯২ কোটি এবং ভিয়েতনাম ৩ হাজার ২০০ কোটি ডলারের পোশাক রপ্তানি করেছে। উভয় দেশের বাজার হিস্যা প্রায় কাছাকাছি চলে এসেছে। গত বছর ১০ শীর্ষ রপ্তানিকারকের মধ্যে বাংলাদেশের বাজার হিস্যা ছিল ৬ দশমিক ৪ শতাংশ। অন্যদিকে ভিয়েতনামের বাজার হিস্যা বেড়ে হয়েছে ৬ দশমিক ২ শতাংশ।

জানতে চাইলে তৈরি পোশাকশিল্প মালিকদের সংগঠন বিজিএমইএর জ্যেষ্ঠ সহসভাপতি ফয়সাল সামাদ প্রথম আলোকে বলেন, ‘পোশাক রপ্তানিতে ভিয়েতনাম আমাদের ইতিমধ্যে ছাড়িয়ে গেছে। বছর শেষে সেটি অব্যাহত থাকতে পারে।’ তিনি বলেন, ‘বাণিজ্যযুদ্ধের কারণে যুক্তরাষ্ট্রের অনেক ক্রয়াদেশ চীন থেকে ভিয়েতনামে স্থানান্তরিত হয়েছে। ভিয়েতনামের পোশাক খাতে চীনাদের বিনিয়োগই বেশি। বাণিজ্যযুদ্ধ শুরুর পর তারাই মূলত যুক্তরাষ্ট্রের ক্রেতাদের ভিয়েতনামে নিয়ে গেছে। অন্যদিকে নানা কারণে আমাদের কারখানাগুলোর প্রতিযোগিতা সক্ষমতা কমে গেছে। সে জন্য আমরা বাণিজ্যযুদ্ধের সুফল কাঙ্ক্ষিত মাত্রায় নিতে পারিনি।’

ফয়সাল সামাদ আরও বলেন, ‘সরকার পোশাক রপ্তানিতে নতুন করে ১ শতাংশ প্রণোদনা ঘোষণা করেছে। ডলারের বিপরীতে টাকার অবমূল্যায়নও কিছুটা হয়েছে। প্রতিযোগিতা সক্ষমতা বাড়াতে আরও কী করা যায়, সেসব নিয়ে পরিকল্পনা হচ্ছে। ফলে আশা করছি, আগামী বছর আমাদের পোশাক রপ্তানি কিছুটা ভালো হবে।’

Women’s workplace participation slides

Female workers’ participation in workplaces in the country’s different sectors has declined for want of necessary support from the stakeholders, observed women rights activists. And, lack of necessary training and women’s inability to use advanced technologies at workplaces are also causes of it, they viewed. They came up with the views at an opinion-sharing meeting of women workers of the country’s different sectors, titled ‘Equal wage and security for women workers’. Bangladesh Mahila Parishad (BMP) organised the event in the city on Friday. Jona Goswami, director (Programme advocacy and lobby) read out a statement presenting the decline in women’s participation in workplaces and describing the reasons behind. “At present 65 per cent female workers are employed in the country’s garment sector while it was 85 per cent years before,” read the statement. “Improper healthcare system, unhygienic toilets, job insecurity, not getting maternity leave, wage disparity, insufficient day-care facility and sexual harassment are among the causes for the decline in female workers’ participation in workplaces in Bangladesh,” she added. She suggested arranging separate transportation for women workers alongside effectively dealing with the above-mentioned inconveniences and shortcomings. She also emphasised full implementation of the Labour Act (Amendment) 2013 and formulation of a policy on female workers’ workplaces to address these issues. The women rights activists also noted that if women’s participation in workplaces increases, the country’s economy would see further growth. BMP secretary Maleka Banu said, “Women at all workplaces face harassment in similar ways and we all have to deal with these to establish their rights in all sectors.” “Women are playing active role in alleviating poverty and in the journey of economic development,” she added. Shamsunnahar Bhuiyan, MP, addressing the event as special guest said women still face violence in workplaces. Their unity is hardly seen in the garment sector. She called upon them to raise movement forging unity to establish all their rights at workplaces. Women workers from different sectors participated in the programme.

Jute exports show revival

Jute and jute goods rebounded in July-October 2019 compared to the same period last year, thanks to jute goods diversification, changes in government policy, availability of quality raw materials, and better crop management, say industry insiders. Global concerns about climate change have opened up new opportunities for the country, they added. The jute and jute goods sector fetched export earnings of USD 314.49 million in July–October 2019, up from the USD 288.85 million recorded for the same period in the previous financial year. This signals a steady growth of 8.88 per cent, according to data from the Export Promotion Bureau (EPB). After readymade garments and leather products, jute and jute goods is the third sector to have crossed the USD 1 billion-mark in export receipts. HM Rezaul Karim, vice-president of the Bangladesh Jute Goods Exporters’ Association, told The Independent that the demand for jute products has been rising worldwide as more people are avoiding polythene use and moving towards eco-friendly products. Karim, who is also the owner of BICO Jute Fibres, said that the demand for jute sacks has also been rising in African countries like Cameroon, Tanzania, Uganda, Ivory Coast, Kenya, Nigeria, Egypt, and Sudan. These nations use jute sacks for food grain packaging. He also said that Japan and South Korea use jute fibre in car interiors and electronic casings because jute is eco-friendly, biodegradable, and easy to recycle. When asked for export figures, Karim revealed that BICO Jute Fibres exported jute bags worth USD 20 million last year. “We exported 80 containers of jute products, with each container holding 16,000 jute sacks. So, our exports last year amounted to 12.8 lakh jute sacks,” he said. According to data from the Bangladesh Jute Mills Corporation (BJMC), the country produced 9.2 million bales of jute in 2017, up from five million bales in 2016. The jute sector generates around 240 types of products. The average production of jute goods is 663,000 units per year. More than 40 million people are directly and indirectly involved in the sector. Highlighting the challenges within the sector, Karim said that the BJMC fixes the export price of jute products, but private mills flout the rules and sell at lower rates. At present, 22 government jute mills are fully operational. While local manufacturers enjoy a 7.5 per cent cash incentive from the government, there are no incentives for exporters. Karim also mentioned the Mandatory Jute Packaging Act of 2010, which was enforced in 2014 to promote the country’s jute sector. It was ruled that 17 agricultural commodities like sugar, rice, maize, wheat, paddy, and fertiliser, must use jute packaging. However, only one commodity—rice—is currently transported using jute. Sajjad Hussain Sohel, managing director of Erans Trade International Ltd, spoke with The Independent about the reasons for growth in the jute sector. He explained that Sudan and Turkey have produced an abundance of crops this year. These two nations, along with other African countries, have imported larger quantities of jute and jute goods from Bangladesh this year.

Row over ‘Nirapon’ activities: US retailers want BD to support their platform

A group of US apparel retailers and importers has urged Bangladesh government and other stakeholders to support their platform Nirapon’s efforts to improve worker safety in the country’s readymade garment industry. Nirapon has been formed this year by North America based 23 brands and retailers, including Walmart. Majority of them were the signatory of Alliance that inspected fire, electrical and structural integrity of some 700 garment factories and remediated the flaws in last five years after the Rana Plaza building collapse and folded its operation in last December. “…we are very concerned with reports coming from Bangladesh of calls to suspend Nirapon, an organization which provides the brands the assurance they need that workers in Bangladesh are being protected,” Rick Helfenbein, president and chief executive officer of American Apparel and Footwear Association (AAFA), said in a letter to the Prime Minister. At a point when Bangladesh is poised to take advantage of the opportunities presented by today’s global market and expand, that growth is threatened by efforts to hinder the work of Nirapon and its transparent, independent, brand?backed commitment to worker safety, the letter reads. AAFA, representing more than 1,000 world famous brands, deems worker safety as critical, said their industry’s top priority is to ensure that all workers in our supply chains – regardless of the country or region where we operate – work under safe, ethical, and humane conditions. “Nirapon’s critical work provides this much?needed assurance to brand,” Rick Helfenbein said, adding Nirapon, the successor to the Alliance, was created by brands to sustain six years of worker safety progress in Bangladesh. Brands believe Nirapon plays a critical role in further developing the local capacity both in the factory and in the sector, and building the will, to sustain worker safety in Bangladesh well into the future. Nirapon’s role does not conflict with the work by your government and other key stakeholders to improve worker safety. In fact, Nirapon’s efforts are complementary and mutually reinforcing with these initiatives, the group said. It added that Nirapon’s work not only puts millions of lives at risk but undermines brands’ confidence that the great progress made in Bangladesh on worker safety will be sustained today, tomorrow, and well into the future. “Efforts to ensure worker’s safety cannot be stopped,” it urged the government and other key stakeholders including Bangladesh Garment Manufacturers and Exporters Association and Bangladesh Knitwear Manufacturers and Exporters Association to fully support Nirapon and facilitate its protection of Bangladeshi workers. The High Court last month imposed a six-month ban on activities of Nirapon following a writ petition filed by a local garment factory. Earlier on September 29, at a views exchange meeting of BGMEA, apparel markers raised concern over the activities of Nirapon alleging that it had been creating confusion over safety standards and adding new cost burden in the name of monitoring and training. They also alleged that Nirapon was creating market for service providers, especially for local training providers and qualified assessment firms, which the manufacturers could not afford after investing huge amount of money in the industry to ensure workplace safety in last five years.

Japan is 3rd largest importer of denim globally

Denimsandjeans will organise a new Denim B2B Trade from March 4-5 next year at Sunshine City, in Japanese capital city of Tokyo. Focusing on the latest developments which have been introduced in the denim industry recently, the show will have over 40 participants from all around the world. It eyes to attract a large number of reputed retailers and brands. Japan is one of the most inspiring country when it comes to denim. The way the Japanese have gone deep into adding their own distinct identity to this product in the last 5-6 decades is amazing. This gives the local grown Japanese denim a special flavor and touch. It is also a place where we can see how the traditional means of production have been preserved and perfected over decades. However, not many people know that Japan is also the third largest importer of jeans globally after the EU and the US, with approximately 175-180 million jeans imported in a year. This is because, though Japan has some good local production, those products are much more expensive, and many retailers and brands import their jeans from overseas. In the first eight months ending August 2019 Japan clocked a total import of 116 million pieces of denim garments, and the figure is expected to reach up to 174 million pieces by the end of this year. Japan is also home to amazing denim brands which bring some of the most unique products globally. Brands like Kapital, Momotara, Samurai, Sugarcane and many others have created their own niche globally with their offerings not affected by seasons. There is lot to be learnt from these brands and that is why global designers travel there every year for inspiration. The strength, breadth and importance of the Japanese market factors motivated Denimsandjeans to launch their new Denim B2B Trade show in Japan, which is due on March 4-5,2020 at Sunshine City, Tokyo. With a theme #designedinnovation, Denimsandjeans focuses on the latest developments which have been introduced in the denim industry recently. With over 40 participants from all around the world, denimsandjeans eyes to attract a large number of reputed retailers and brands from Japan besides the US, the EU and Southeast Asia. “Denim is one of the most favourite apparel for the Japanese customers and in spite of high Japanese costs, a decent amount of production still happens there. We all have a lot to learn from Japan and I think a show in Japan will inspire companies to bring out their best to showcase to Japanese customers and also to visitors from around the world,” said Sandeep Agarwal, CEO & Founder, Denimsandjeans. The entry in the show is through invitation, which can be received by registering on Denimsandjeans Japan website.

Canadian firms explore investment opportunities in Egypt

Egyptian industry minister Amr Nassar and immigration minister Nabila Makram recently held extensive discussions with a delegation of five Canadian firms to discuss investment opportunities in the country. The meeting was held on the sidelines of the 4th edition of Destination Africa 2019 textile and garment exhibition in Cairo from November 9 to 11. A hundred and fifty companies and 230 international buyers from the United States and the European Union participated in the exhibition, according to a report in an Egyptian newspaper. The Canadian delegation reviewed investment opportunities in Egypt in the textiles and apparel sector and the possibility of establishing joint projects to meet domestic demand and export to regional and African markets. The event was organised by the Textiles, Apparel, and Home Textiles Export Council in cooperation with the Egyptian Exporters Association (Expolink).

Bangladesh Denim Expo attracts 5,692 visitors

The 11th Bangladesh Denim Expo attracted 99 exhibitors from 11 countries and once again proved itself the most significant show of its kind in Bangladesh with total of 5,692 visitors. The exhibitors showed fabrics, garments, threads, machinery, finishing equipment and accessories, positioning the show as a true representation of Bangladesh’s denim industry. The great and good of this diverse industry once again descended on the expo which illustrated, once again, that the denim sector of Bangladesh is in rude health. The Bangladesh denim industry is the second largest denim exporter to the EU and third largest to the United States. The expo also saw other participating countries including China, Japan, Italy, India, Singapore, Brazil, Spain, Pakistan, Turkey and Germany. Responsibility was the theme of the 11th Bangladesh Denim Expo. Founder and CEO Bangladesh Denim Expo Mostafiz Uddin said: “It is the duty of all stakeholders in the denim industry to acknowledge their responsibility and to analyse the business practices for the benefit of all.” Leading global fashion brand, H&M Group, this year collaborated with Bangladesh Denim Expo and in a specially built zone of H&M within the expo the responsible sourcing practices of H&M were showcased. H&M’s Head of Sustainability, Global Production, was also present at a panel discussion of the expo. Other panels speakers include Andrew Olah, the founder of Kingpins denim show, Alice Tonello, R&D director with the Tonello Group, world renowned denim designer, Piero Turk and Jordi Juani, Asia regional director with Jeanologia. The speakers discussed the social, environmental and economic responsibilities of the denim industry. Highlights of the show included a series of product displays, presentations, seminar sessions and panel discussions. The aim was to encourage healthy debate and interaction among exhibitors and visitors to champion a more responsible denim industry.

Thailand ends consultations on EU free trade talks restart

The Thai ministry of commerce is preparing to wrap up consultations with relevant agencies and organisations across the country on a proposal to resume free trade talks with the European Union (EU). A summary of opinions would be submitted to a committee on international economic policy chaired by deputy prime minister Somkid Jatusripitak. Many parties support the resumption of trade talks, but there are concerns over the possible influx into Thailand of products like wine and liquor on a zero-per-cent tariff if a trade pact is signed, said Auramon Supthaweethum, director-general of the department of trade negotiations. She said Thailand would meanwhile hold free trade talks with Turkey next month, according to a report in a Thai newspaper. The European Free Trade Association (EFTA), which represents Iceland, Liechtenstein, Norway and Switzerland, has yet to be consulted as to whether it wishes to resume talks with Thailand. Those negotiations have been stalled for more than 13 years since the initial two rounds held in 2005 and 2006.

RMG exporters to go all out for fair prices

In a desperate move for better prices, Bangladeshi garment exporters are planning to hold rallies and human chains in major European cities to create awareness among the end consumers. The activist move comes after brands opposed the idea of fixing a base price for garment items. At present, as many as 39 percent of the garment manufacturers are selling garment items to buyers at prices lower than the production costs, according to a survey of the Fair Wear Foundation, an Amsterdam-based organisation that works to improve labour conditions in garment factories. The reason garment makers resort to the desperate move is that insolvency safeguard mechanism is absent, said Rubana Huq, president of the Bangladesh Garment Manufacturers and Exporters Association, the sector’s apex trade body. “The data mentioned in the report not only reflects the desperate move by the factories to retain their customers, but also their struggle to avoid any situation leading to insolvency since there is no legal route to safely exit from their investments.” The cost of production of apparel items increased 30 percent between 2014 and 2018, she said. Furthermore, the minimum wage of the garment workers has increased 51 percent since December last year. Between fiscal years 2015-16 and 2018-19, the industry’s value addition has gone down 1.61 percent though apparel exports have increased from $28.10 billion to $34.13 billion during the period. “This means that the growth is happening in physical terms only. But the value addition per piece of garment has rather declined over years.” She also blamed the unplanned expansion in the industry for accepting low prices from retailers. “While we are trying to find our way out from the price-trap situation, we need to look at ourselves and stop unplanned expansion and overcapacity. Overcapacity is perhaps the weakest point behind our poor bargaining ability.”  The current BGMEA board has taken a number of steps to bring discipline in the sector such as putting in a request with the commerce ministry to initiate a national database project named ‘National Base Capacity’ to monitor product-wise capacity in the industry and regulate future investments. The over concentration on few products and markets is another problem for the sector, she said. Almost 85 percent of the garment products from Bangladesh are headed to the EU and North America. “Product diversification is also not happening at the desired pace,” she added. Ahsan H Mansur, executive director of the Policy Research Institute, also supported the initiative of holding awareness programmes on the proposal to fix a base price. “In many cases the suppliers might lose the profit, but in the long run they may make profit.” The awareness programmes among the end consumers are needed because they should know that the low prices make poverty permanent in many countries. The suppliers should also form an association for launching such campaigns, he added. Syed M Tanvir, a director of Pacific Jeans, a leading denim jeans exporter, also welcomed the awareness programmes. Mohammed Hatem, first vice-president of the BGMEA, said: “Sometimes, we are bound to sell our products below our production costs.”   

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