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Exports to EU, UK rise in Jul-Aug despite Brexit

exports

Britain’s exit from the European Union is yet to have any impact on Bangladesh’s export business and the country’s export earnings in the July-August period of the current financial year 2016-17 witnessed a reasonable growth in most of the EU countries and the United Kingdom. The export earnings, however, witnessed a negative growth in the United States, the largest export destination for Bangladesh, while export to China achieved a strong growth in two months of FY17. Experts and exporters said that the Brexit was yet to hit the export business directly and the export earnings in the EU and the UK were still on the rise.They said that the earnings from the US market experienced a negative growth in the first two months of the current financial year as the overall prices in the US decreased. Except Canada and Italy, export earnings from the EU countries witnessed a positive growth in the July-August period of FY17. The earnings from the US in the two months of FY17 fell by 5.27 per cent to $997.51 million from $1.05 billion in the same period of FY16, according to the Export Promotion Bureau data. The data showed that the export earnings from Germany, the second largest destination for Bangladesh, grew by 10.29 per cent to $976.51 million in the July-August period of FY17 from $885.34 million in the same period of the previous year. Earnings from China in the two months of FY17 grew by 34.56 per cent to $143.71 million from $106.80 million in the same period of the previous financial year.‘Export earnings growth in the EU countries and the UK maintain the upward trend as Brexit is yet to have any direct impact on export business,’ Centre for Policy Dialogue executive director Mustafizur Rahman told New Age on Saturday. He said that the export earnings growth in the China market was encouraging for Bangladesh and the exporters needed to pay more attention to the market. According to Mustafiz, the negative growth in the US market was the impact of price affect as the overall price in the market decreased. Earnings from the UK, the third biggest export destination for Bangladesh, in the July-August period of FY17 grew by 3.36 per cent to $606.16 million from $586.44 million in the same period of the previous financial year. The UK growth was minimal due to the recent devaluation of the pound against the dollar, Mustafiz said.Sahidullah Azim, former vice-president of the Bangladesh Garment Manufacturers and Exporters Association, said that the Brexit was yet to have any direct impact on export business but the devaluation of currency took place due to the Brexit and it was one of the reasons for the slow export growth in the market.‘Overall prices have decreased in the US market as the US businesses are observing the situation on the eve of the presidential election there,’ he said. After the election, the export growth in the US market would rebound, Azim hoped.He said that China was the most promising market for Bangladesh and the export earnings growth would increase more in the market in the coming days as most of the renowned global brands were going to start business to cater to its domestic market demand. Azim said that the export earnings growth in Canada and Italy would be positive in the month of October when the shipment of winter products would start.Export earnings from Canada in July-August of FY17 fell by 4.68 per cent to $186.54 million from $195.71 million in the same period of the previous financial year.Export earnings from Italy in the two months of FY17 decreased by 2.01 per cent to $220.68 million from $225.22 million in the same period of FY16. Exports to Spain grew by 16.11 per cent to $368.21 million while earnings from France fetched $279.87 million with an 11.57-per cent growth.Export earnings from Japan in the July-August period of FY17 grew by 6.82 per cent to $191.28 million from $179.06 million in the same period of FY16.

Trade gap with China rises by 18.77pc to $8.83b in FY16

trade gap with china rises by 18.77pc to $8.83b in fy16

The country’s trade gap with China increased by 18.77 per cent to $8.83 billion in last financial year from $7.44 billion in the FY 2015-16 despite a zero-tariff export facility for a number of items to the Chinese market. An economist and Bangladesh Bank officials said the trade gap with China continued rising in recent years as Bangladesh failed to attract the Chinese consumers to its products due to lack of product diversification. Bangladesh’s imports from China stood at $9.64 billion in FY16 whereas exports stood at $808.14 million during the financial year. The trade gap in FY15 was $7.44 billion with exports worth $791 million and imports worth $8.23 billion. The country’s trade gap with China stood at $6.80 billion in FY14 and $5.86 billion in FY13. Centre for Policy Dialogue executive director Mustafizur Rahman told New Age on Thursday that it was a bad sign that the country’s trade deficit with China continued rising in recent years. ‘Bangladesh is now enjoying a zero-tariff facility in exporting its more than 5,000 products to the Chinese market. But, we have failed to utilise the facility fully due to lack of product diversification,’ he said. The country’s single largest import source is China as it (Bangladesh) imports huge amount of capital machinery, industrial raw materials and consumer goods from the country due to lower prices of products there, he said. The increasing trend in imports from China is not a headache for the Bangladesh business sector but the rising trade gap is a matter of concern, he said. He said, ‘China imports products worth more than two trillion dollars from different countries each year, but our export share in the country is very low.’ Footwear, leather and pharmaceuticals will play a positive role in increasing the country’s export volume to the Chinese market, he said.The government should speed up investment for product diversification keeping the Chinese market in mind to decrease the trade deficit between Bangladesh and China, he said. Mustafizur said that the government should take more initiatives to attract the Chinese investors to boost the country’s overall foreign direct investment. To this end, the government should increase the infrastructure facility in the country to manage the foreign investors, he said.The government has taken initiatives so that Chinese business people set up a special economic zone for them, he said.He hoped the country’s export volume would increase if the items to be produced in the Chinese economic zone are exported to China.

চট্টগ্রাম বন্দরে আবার কনটেইনার জট

চট্টগ্রাম বন্দরে আবার কনটেইনার জট

ঈদের দীর্ঘ ছুটিতে আবার জট লেগেছে চট্টগ্রাম বন্দরে। ঈদের আগে ও পরে ট্রাক ও কাভার্ডভ্যানের মতো ভারী যানবাহন মহাসড়কে চলাচলে নিষেধাজ্ঞা থাকায় এবং ছুটি দীর্ঘ হওয়ায় বন্দর থেকে পণ্য খালাস করেননি অনেক ব্যবসায়ী। তাই বন্দরের টার্মিনালগুলোতে ধারণক্ষমতা ছাড়িয়ে গেছে কনটেইনার। দেশের প্রধান এ সমুদ্রবন্দরে ২০ ফুট দীর্ঘ ৩৬ হাজার ৩৫৭ একক কনটেইনার রাখার জায়গা থাকলেও গতকাল পর্যন্ত কনটেইনার ছিল ৩৭ হাজার ৭৭৬ একক। সংশ্লিষ্টরা জানান, স্বাভাবিকভাবে প্রতিদিন গড়ে চার হাজার টিইইউএস পণ্য বোঝাই কনটেইনার খালাস হওয়ার কথা থাকলেও গত দু’দিনে কনটেইনার খালাস হয়েছে যথাক্রমে ৩১৩ ও ৪৭৪ টিইইউএস। জাহাজের জট আছে বহির্নোঙরেও। সেখানে বিভিন্ন পণ্য নিয়ে অপেক্ষমাণ জাহাজ আছে ৩৭টি। গত ঈদের সময়েও বন্দরে তৈরি হয়েছিল কনটেইনার ও জাহাজজট।

এদিকে বন্দরের বহির্নোঙরেও জট লেগেছে জাহাজের। গতকাল পর্যন্ত জেনারেল কার্গো বোঝাই ৯টি, খাদ্যসামগ্রী বোঝাই ৬টি, সার বোঝাই ৫টি, সিমেন্ট ক্লিংকার বোঝাই ১২টি, চিনি বোঝাই ৩টি ও লবণ বোঝাই দুটি জাহাজ ছিল বন্দরের বহির্নোঙরে। বন্দরের সদস্য (পরিকল্পনা ও প্রশাসন) জাফর আলম সমকালকে বলেন, সাধারণত প্রতিদিন গড়ে চার হাজার কনটেইনার খালাস হলেও গত সপ্তাহে কনটেইনার খালাস হয়েছে গড়ে ২০০ থেকে ৩০০। এজন্য বন্দরে ধারণক্ষমতার বাইরে আছে কনটেইনার। বিজিএমইএর সাবেক প্রথম সহসভাপতি নাছির উদ্দিন চৌধুরী বলেন, আবহাওয়া অনুকূলে থাকলে বন্দরের কনটেইনারজট সপ্তাহ দুয়েকের মধ্যে স্বাভাবিক হয়ে যাবে বলে মনে করেন তিনি।

বন্দর সূত্রে জানা যায়, ঈদের দিন নামাজের জন্য মাত্র আট ঘণ্টার জন্য বন্দর বন্ধ থাকলেও ঈদের এক সপ্তাহ আগ থেকেই অব্যাহত ছিল কনটেইনার খালাসের এ ধীরগতি। তাই গতকাল ৩৬ হাজার ৩৫৭ টিইইউএস কনটেইনারের বিপরীতে বন্দরের বিভিন্ন ইয়ার্ডে পড়েছিল ৩৭ হাজার ৭৭৬ একক কনটেইনার। এর মধ্যে সবচেয়ে বেশি ছিল এফসিএল (ফুল কনটেইনার লোড) ড্রাই কনটেইনার। এ ধরনের কনটেইনারের ধারণক্ষমতা ২২ হাজার ৪৮৫ টিইইউএস থাকলেও গতকাল ছিল ২৭ হাজার ৬৬৩ টিইইউএস।

চামড়া ও চামড়াজাত পণ্য রফতানি প্রবৃদ্ধিতে ভাটা

চামড়া ও চামড়াজাত পণ্য রফতানি প্রবৃদ্ধিতে ভাটা

কোরবানির ঈদে দুই বছর ধরে প্রায় এক কোটি বিভিন্ন ধরনের পশু কোরবানি দেওয়া হয়। প্রতিবছরই ৫ থেকে ৭ শতাংশ হারে এ সংখ্যা বাড়ছে। এ সময়ই ৫০ থেকে ৫৫ শতাংশ চামড়া সংগ্রহ করে ট্যানারিগুলো। বছরের বাকি সময়েও পশু জবাইয়ের পরিমাণ বাড়ছে। তবে সাম্প্রতিক বছরগুলোতে পশু কোরবানি ও জবাই বাড়লেও চামড়া ও চামড়াজাত পণ্য রফতানি প্রবৃদ্ধিতে ভাটা পড়েছে। তিন বছর আগেও যেখানে রফতানিতে ২৫ থেকে ৩০ শতাংশ প্রবৃদ্ধি হয়েছে, তা গত দু’বছরে ১ থেকে ২ শতাংশের ঘরে এসে ঠেকেছে। সম্ভাবনাময় এ খাতের রফতানি শতকোটি ডলারের বৃত্তে আটকা পড়েছে। এ খাতে এক ধরনের স্থবিরতাও চলছে বলে মনে করছেন সংশ্লিষ্টরা।

রফতানি উন্নয়ন ব্যুরোর (ইপিবি) পরিসংখ্যান অনুযায়ী, ২০১১-১২ অর্থবছরে চামড়া ও চামড়াজাত পণ্যের রফতানি প্রবৃদ্ধি ছিল ২০ শতাংশ। পরের অর্থবছরে তা বেড়ে ৩২ শতাংশে পেঁৗছায়। পরের অর্থবছরেও প্রায় ৩০ শতাংশ প্রবৃদ্ধি হয় এ খাতে। এর পর থেকেই হঠাৎ করে ব্যাপক ছন্দপতন হয় প্রবৃদ্ধিতে। টাকার অঙ্কে রফতানি বাড়লেও তার পরিমাণ অনেক কমে যায়। ২০১৪-১৫ অর্থবছরে রফতানি প্রবৃদ্ধি ১ শতাংশে নেমে আসে। সর্বশেষ হিসাব অনুযায়ী, গত অর্থবছরে প্রায় আড়াই শতাংশ প্রবৃদ্ধি হয়েছে। সংশ্লিষ্টরা বলছেন, সরকারের দীর্ঘ মেয়াদে নীতিগত সহায়তা না থাকায় নতুন বিনিয়োগে কারও আগ্রহ নেই। এর বাইরে আন্তর্জাতিক বাজারে দাম কমে যাওয়া অনেকাংশে দায়ী। ট্যানারি স্থানান্তরকে কেন্দ্র করে সরকারের সঙ্গে টানাপড়েনসহ কয়েকটি কারণে এমন পরিস্থিতি সৃষ্টি হয়েছে। শিগগিরই এ অবস্থা থেকে উত্তরণের আশা দেখছেন না তারা। এ জন্য চামড়া ও চামড়াজাত পণ্যের সম্ভাবনা শুধু কাগজে-কলমে থেকে যেতে পারে বলে অনেকের আশঙ্কা।

জানতে চাইলে মেট্রোপলিটন চেম্বার অ্যান্ড কমার্স ইন্ডাস্ট্রি (এমসিসিআই) সভাপতি এবং অ্যাপেক্স ফুটওয়্যারের ব্যবস্থাপনা পরিচালক সৈয়দ নাসিম মঞ্জুর সমকালকে বলেন, এ খাতের সম্ভাবনা কাজে লাগানোর জন্য সরকারের দীর্ঘমেয়াদি নীতিগত সহায়তা নেই। ৫ থেকে ১০ বছর মেয়াদি নীতি-সহায়তা দিতে পারলে নতুন করে বিনিয়োগ আসবে। ইপিবির মাধ্যমে স্টাডি করে সরকার এ ধরনের ব্যবস্থা নিতে পারে। নাসিম মঞ্জুর বলেন, চামড়া ও চামড়াজাত পণ্যের আন্তর্জাতিক বাজার প্রায় ২০০ বিলিয়ন ডলার। সেখানে ১ শতাংশের একটু বেশি বাজার দখলে রেখেছে বাংলাদেশ। মূলত চামড়াজাত পণ্য রফতানি থেকেই এ বৈদেশিক মুদ্রা আসছে।

বাংলাদেশ ট্যানার্স অ্যাসোসিয়েশনের সাধারণ সম্পাদক শাখাওয়াত উল্লাহ সমকালকে বলেন, দুই বছর আগে যুক্তরাষ্ট্রে প্রতি পাউন্ড চামড়া রফতানি করে ১০৬ ডলার পাওয়া যেত। এখন তা ৭০ ডলারে নেমে এসেছে। এভাবে গত কয়েক বছর ধারাবাহিকভাবে দর কমছে। তিনি বলেন, পোশাক খাতের মতো বড় অঙ্কের রফতানি আয়ের সুযোগ থাকার পরও তা সরকারের সহযোগিতার অভাবে কাজে লাগানো যাচ্ছে না। তিনি মনে করেন, কিছু কিছু ক্ষেত্রে উল্টো অসহযোগিতা করা হচ্ছে। কাঁচামাল আমদানিতে আড়াই শতাংশ শুল্ক ফেরত দিত সরকার। ছয় মাস ধরে তা বন্ধ রেখেছে জাতীয় রাজস্ব বোর্ড (এনবিআর)।

সংশ্লিষ্টদের মতে, চামড়া খাতের রফতানি জুতার ওপর নির্ভর হয়ে পড়েছে। গত পাঁচ বছরে দ্বিগুণেরও বেশি প্রবৃদ্ধি হয়েছে চামড়ার জুতা রফতানিতে। ২০১০-১১ অর্থবছরে ২০ কোটি ডলারের কম জুতা রফতানি হয়। গত অর্থবছরে তা বেড়ে দাঁড়িয়েছে ৫০ কোটি ডলার। এর বিপরীতে চামড়ার রফতানি ক্রমাগতভাবে কমছে। ২০১৩-১৪ অর্থবছরে ৫০ কোটি ডলারের বেশি রফতানি আয় হলেও তা এখন কমে দাঁড়িয়েছে ২৮ কোটি ডলারে। রফতানিকারকরা বলেন, বাংলাদেশের চামড়ার মান ভালো হওয়ায় যুক্তরাষ্ট্র, কোরিয়া ও চীনে ব্যাপক চাহিদা রয়েছে। এ ছাড়া ইতালি, স্পেন ও পর্তুগালে রফতানি হয় চামড়া ও চামড়াজাত পণ্য। তারা মনে করেন, কিছু উদ্যোগ নেওয়া হলেই এসব বাজারে ভালো অবস্থান তৈরি করা যাবে।

Jobs in EPZs rise by 8% in one year

Bangladesh Export Processing Zones Authority (BEPZA) has achieved 8.0 percent growth in terms of employment generation in 2015-16 fiscal year compared to the previous fiscal year. “The Export Processing Zones (EPZs) under BEPZA created employment opportunities for 33,551 Bangladeshi nationals. The figure was 31,084 in the fiscal year 2014-15,” a BEPZA press release said here on Thursday. Among the 33,551 new employments in the last fiscal year, 8306 manpower was added in Karnaphuli EPZ, 7124 in Uttara EPZ, 6154 in Chittagong EPZ, 6368 in Adamjee EPZ, 3330 in Dhaka EPZ, 2522 in Comilla EPZ and 15 in Mongla EPZ.The BEPZA press release said currently 4,53,652 Bangladeshi nationals are working in 461 enterprises of EPZs under BEPZA, with 64.0 percent being female workers indicating EPZs role in women empowerment in the country.

London Fashion Week puts brave face on Brexit

london fashion week puts brave face on brexit

British fashion put a brave face on Brexit Friday as it began its first catwalk shows since the vote, citing a surge in sales on the weak pound despite fears that leaving the EU will hit exports and increase costs. ‘It might not have been what we wanted, but I think there’s actually a sense of confidence,’ said British designer Anya Hindmarch, one of hundreds showing their wares at London Fashion Week. Organisers are hoping that the five-day event, which includes catwalk shows by Burberry, JW Anderson and Topshop UNIQUE, will help alleviate Brexit blues in an industry that overwhelmingly wanted to stay in the EU. ‘We have to look at the positives. Over the past few months, our luxury and retail has seen a bounce in terms of sales in the UK,’ said Caroline Rush, chief executive of the British Fashion Council.‘We’re very much open for business, we’re known to be collaborators with the rest of the world and I think it’s an opportunity for us to really demonstrate that over the next few days.’ Retail sales in Britain have largely held up since the June referendum vote to leave the European Union, easing fears of an immediate loss of consumer confidence. Analysts said this partly reflected falling prices, while the dramatic drop in the value of the pound has particularly boosted luxury items, which are now cheaper to tourists. But the weak currency will also make it more expensive to import goods from overseas, with high street giant Next among those warning of a rise in prices next year. Hindmarch, who has stores around the world including in China, Japan and the United States, said she believed the overall impact would be ‘negligible’. ‘Suddenly we’re 10 per cent cheaper to sell — so we’re going to be selling more,’ Hindmarch told the AFP.‘We might be four per cent more expensive to buy, who knows? It’s all swings and roundabouts, it balances. I really don’t think it’s going to be mathematically a big problem.’ Rush added: ‘The industry and businesses really need to focus on their margin, really need to focus on their price and really think about that to protect themselves.‘Many of our businesses currency hedge in any case, and for those that don’t, it’s made them think about it.’The potential loss of access to the European single market is a big concern, however, as the bloc accounts for about 70 per cent of British textiles and apparel exports. ‘My biggest concern is my Italian suppliers, who are very nervous,’ Hindmarch said. ‘I make almost everything in Italy, so many people do here.’ There is also the risk that restricting immigration into Britain — a major issue in the referendum campaign — will deter the foreign talent that has helped turn London into a unique creative melting pot. ‘Many of our young designers weren’t necessary born in the UK, but they came here to study, they wanted to stay and build businesses and they’re now employing hundreds if not thousands of people,’ said Rush. Prime minister Theresa May held a reception of key industry figures on the eve of Fashion Week, following the example of her predecessor’s wife, Samantha Cameron, who attended Thursday’s event at Downing Street. May sought to reassure the fears of the industry, which contributes £28 billion ($37 billion, 33 billion euros) to the economy and supports nearly 9,00,000 jobs, while giving little away on her plans for Brexit. ‘From our home-grown start-ups to international fashion houses — every business in the industry will play a major role in ensuring we make a success of Brexit,’ she said. Rush said the sector has sent a clear message to the government about its concerns, but had also raised the potential opportunities. ‘There was a lot of talk about whether this is going to see a resurgence in manufacturing within the UK, how can we put investment into that,’ she said.

Local spinners upset over rising cotton yarn import

local spinners upset over rising cotton yarn import

Cotton yarn import has increased by more than 25 per cent during the first seven months in 2016, which local spinners termed a threat for the sub-sector of the country’s primary textile industry. Industry insiders apprehended that if the trend continues, it would badly affect the backward linkage industry that meets nearly 80 per cent requirement of the local knit sector. Bangladesh imported 207,644 tonnes of cotton yarn from January to July this year. It imported 165,076 tonnes of cotton yarn during the same period of 2015, according to the data of Bangladesh Textile Mills Association (BTMA). In 2015, a total of 295,330 tonnes of cotton yarn was imported, which was 280,283 tonnes in 2014, BTMA data showed. Major portion of the yarn has been imported from the neighbouring India. In recent times yarn is also being imported from Indonesia, industry insiders said. “This is alarming for the local spinning industry that has the capacity to meet the knit sector’s requirements,” said former BTMA president Jahangir Alamin. A few grades of yarn, used for producing high value added products, are not produced here, but it is insignificant, he added. The local millers can meet 35 to 40 per cent of the woven sector’s fabric requirement, and the rest is met through import, he explained. Some 430 local spinning mills supply more than 80 per cent of the raw material for the country’s knitwear sector and 35 to 40 per cent of the woven sector, according to BTMA. About $6.0 billion have been invested in the textile sector while spinning mills account for 60 per cent of the investment.   BTMA vice president Fazlul Hoque said if such trend continues, profitability of the spinners will gradually decline and the industry will turn into a sick one. The impact on the export loss is not visible, but this might happen very soon. The retention of foreign exchange by using backward integration is falling and will fall drastically in the near future, he feared. Some of the textile millers alleged that in absence of effective government monitoring, some unscrupulous businessmen are importing lower count of yarn with declarations of high count and low volume though import is much higher. Regarding lower rate of imported yarn, some spinners opined that India’s export to China has reduced substantially, and hence the former has a significant volume of surplus yarn to export at very low prices. In the last one year the Indian currency has been devalued by 9.0 per cent, which is making Indian products cheaper in dollar, they added. Fazlul Hoque, former president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said, “In free market economy one can buy his/her required products from any market.” Price is one of the main reasons behind the increasing trend of cotton yarn import, as the price of the raw material is higher in the local market, he explained. Moreover, buyers are placing demands for some grades of cotton yarn, which are not so much available in the local market. Bangladesh is still lagging behind in developing such varieties, he noted. M A Matin, former president of BTMA, said it is true that local spinners are yet to produce some of the varieties that buyers ask for, especially in denim segment. There are demands for local denim products and orders are also coming. But local spinners cannot supply all the required yarns. Foreign buyers are placing orders for ring-ended yarn, where the country’s capacity is relatively low, he added. Admitting that such rising trend of cotton yarn import might affect the local backward linkage industry, the BKMEA leaders suggested the spinners to think why garment exporters are importing such raw materials though they receive cash support from the government for using locally-produced raw materials.

Govt plans to inspect non-apparel factories

govt plans to inspect non-apparel factories

The government will begin inspecting non-garment factories to ensure compliance and strengthen workplace safety for workers. “The Tampaco fire is another big lesson for us,” Syed Ahmed, inspector general of the Department of Inspection for Factories and Establishments or DIFE, told The Daily Star by phone yesterday. “We will start inspecting the non-RMG factories to ensure workplace safety for workers. ”The DIFE that was created after the Rana Plaza collapse is responsible for ensuring workplace safety and compliance in the factories.Both the labour and employment minister and the secretary agreed to open inspections into the non-RMG factories, mirroring the effortthat are ongoing to upgrade fire, electrical and structural safety in garment factories, Ahmed said. However, Ahmed could not immediately say when the inspections will start. “We will prepare a project proposal and submit it to the government and other donor agencies so that the inspections can begin as soon as possible. ”Since the Rana Plaza collapse in 2013, Accord and Alliance, two foreign inspection agencies, have been inspecting 2,000 garment factories to fix the fire, electrical and structural flaws. Another 2,000 garment factories, which are not members of the Accord and the Alliance, are being inspected under a government initiative in collaboration with the International Labour Organisation. The non-garment factories were not in focus as everybody was busy with safety in the garment factories after the Rana Plaza incident killed 1,138 workers, he said.He could not mention the number of the factories, which are labour intensive, after the garment sector. Primarily, it might be difficult to manage the fund as foreign agencies such as the Accord and the Alliance may not come into the non-garment sector, he added. The government will bankroll the inspections and it takes more than $7,000 to carry out a complete preliminary inspection on a garment factory, he said. Ahmed said the inspection of structures and boilers is mandatory as the majority of the non-RMG factories are old and require immediate inspection. On the compensation for the people affected by the Tampaco blaze, Ahmed said the labour ministry has already declared a compensation of Tk 200,000 for the families of each dead worker. We will provide the fund to the victims from the recently formed Worker Welfare Fund. The victims may get more money after the completion of the assessment.”Ministry officials and doctors are preparing a list of the workers who died or were injured to give compensation, Ahmed said.

Source tax from exports raises 40%

exports

Tax collection at source from export proceeds of major items, including apparel, rose 40 percent year-on-year to nearly Tk 1,500 crore in fiscal 2015-16. Taxmen though were not satisfied with the receipts, doubting if the proceeds to the state coffer were based on the firms’ true export receipts. “The figure should have been much higher because of the hike in the rate of source tax for the apparel sector last fiscal year,” said a senior official of the National Board of Revenue. In fiscal 2015-16, the rate of source tax was doubled to 0.6 percent for the apparel industry, according to taxmen. Besides, the 0.6 percent source tax was applicable for export earnings from terry towel, jute goods, frozen foods, vegetables, leather goods and packed foods last fiscal year. Bangladesh raked in $34.24 billion from exports in fiscal 2015-16 — the highest yet. The apparel sector accounted for $28.09 billion, or 82 percent of the total receipts, according to Export Promotion Bureau. Delays in receiving payments from importers might be one explanation for the less-than-expected figure of withholding tax collection. In this scenario, the total collection would rise in the later months, the NBR official said. “Another reason may be the leakage in deduction of tax on the export proceeds at banks — we have to increase monitoring to ensure that the withholding tax comes in properly. ”The official said the amount of source tax collected from export earnings reflects the scenario of tax receipts from export-oriented industries. “It is because the source tax imposed on the export earnings is treated as minimum and final. As a result, exporters usually do not declare higher incomes. Even though their earnings are soaring, many exporters show profits or incomes in line with the amount of tax deducted at source of their exports earnings to avoid having to pay any additional tax. “Apart from source tax, the government gets income tax from owners or shareholders of export-oriented firms. ”Taxmen said the amount of tax collection from export earning sectors is not encouraging, given the need for increased revenue to finance development expenditure. To boost receipts from export-oriented sectors, the NBR proposed slapping a 1.5 percent tax at source on export earnings from fiscal 2016-17. The bid did not get the nod in the face of demand from businesses, with the parliament imposing a 0.7 percent source tax instead, up 0.1 percentage point from the previous year. The government has set the target of shipping $37 billion worth of products in fiscal 2016-17, with the garment sector contributing $30.3 billion.

Dream software for RMGs

rmg

The optimisation of fabric usage is something that a seasoned readymade garments (RMG) entrepreneur wants to attain all the time. And intelligent software can provide this optimisation solution, saving up to 10 per cent of material costs in the process. Banking on this idea, Threadsol, one of the most successful Indian tech start-ups, has successfully implemented and marketed its RMG material and production planning software across the world in just four years after it was founded in 2012. With a presence across 12 countries including Bangladesh, the Singapore-headquartered company is now eying to take the country’s RMG sector—the biggest export earner of the country—to a whole new level. During a recent visit to Bangladesh, Threadsol co-founders Manasij Ganguli and Mausmi Ambastha told The Independent that integrating technologies with the RMG sector was the new future.

The motivations

Mausmi Ambastha, who is the chief operational officer (COO) of Threadsol, is in a perfect position to blend technologies with textile and RMG industries. Being a student of computer science and a professional practitioner in the Indian textile and garments industry for eight years, she had the idea of bridging both worlds. “Use of technology is an omnipresent thing these days. I was surprised to find that a large industry like RMG has not been using technologies to make things easier and optimise the process,” she said. Observing the industry, she realised that there was a dire need for advanced and practical software that could optimise usage of fabric. Thus was born the idea of intelloCut—the flagship intelligent software of Threadsol. Mausmi Ambastha, along with her husband Manasij Ganguli, a software engineer with over 15 years of industry experience, and three other friends—Madhumita Phukan, Abhishek Srivastava and Bratish Goswami (all from tech industries)—decided to implement the idea of creating RMG material and production planning software. Ganguli, who is the CEO of Threadsol, had his own reason to venture out in this unexplored avenue of designing RMG software. After having worked in big multinational software companies like TCS, CSC, Impetus Technologies, and RS Software for more than 10 years, he joined Terracotta, a tech start-up based in San Francisco, USA. He was one of the early members of the start-up and witnessed the company grow from a bunch of tech nerds to a full-blown organisation with 30 employees. Later, it was sold for USD 90 million. “After experiencing those exciting times in the start-up sector, it was really hard for me to go back to the rut of an MNC. The dynamics and energy of start-ups are addictive. So I was thinking about launching a start-up of my own,” said Manasij Ganguli.

Tech tonic

Ambastha said fabric is the most important raw material and accounts for 70–80 per cent of the cost of garment production in the apparel industry. “By saving fabric, labour and time in an efficient and smart way, the input-output ratio can be enhanced and profits can be maximised,” she said. With this idea, the Threadsol team designed and developed its flagship product—intelloCut—which is intelligent material planning and optimisation software. Throwing light on the product, Ganguli said it measures, predicts and optimises material utilisation and productivity for the sewn products industry (apparel, footwear, automotive, home furnishing, technical textiles, etc.). “This software estimates the fabric requirements accurately and lets you buy exactly what you need. So there is zero wastage. It also generates the most suitable and optimized cut plan from millions of possible combinations.” Ganguli said the software also groups fabrics with similar width, shade and shrinkage in order to ensure high standards of quality and increased profitability. “And most importantly, it gives you complete control over your factory’s practices by getting real time status and complete tracking,” he added. After developing the software, it was first deployed at Madura Garments (Aditya Birla Group and makers of the apparel brands Van Huesen, Allen Solly, Peter England, Louis Philippe, ByFord, etc.), where intelloCut saved approximately USD 1 million a year during the trial run in May 2013. After the initial success of intelloCut, Threadsol was able to raise USD 200,000 from a consortium of early stage and angel investors, led by Blume Ventures and including Google India head Rajan Anandan. That investment aided them to expand. Later, Threadsol conceptualised and developed intelloBuy, which is intelligent material buying prediction software. It predicts the width and shrinkage of the fabric before it comes in house to estimate buying consumptions by tracking a vendor’s past records. Ganguli said they are now in beta testing stage of their third product intelloTrace, which is the world’s first NFC-based production management system. It will help manufacturers track every inch of fabric right from the store to finishing and shipment. “We have also developed support applications like intelloGreen—a smart tablet application that replaces on-floor lay slips currently used in the apparel cutting floor, rendering their industry paperless and green.”

Threadsol in Bangladesh

ThreadSol entered the Bangladesh garments market in 2014. In less than two years, the country’s largest manufacturers, including Pacific Jeans, Dekko Group, Unifil Group, Hirdaramani’s Kenpark and Regency, Fakir Fashions, Epic Group, and Urmi Group, are users of ThreadSol. Suresh De Silva, GM at Regency, said, “IntelloCut has reduced our efforts by effectively handling multiple fabric groups and planning all end pieces, which would otherwise be wasted. Indeed, it’s a solution worth recommending.” Anas Shakil, the company’s business development head, Bangladesh, said, “Kenpark and Regency are truly benefiting from IntelloCut. The wastage in both the facilities has been reduced to less than 1 per cent, which is remarkable.” About its future plan in Bangladesh, Manasij said, “Bangladesh is earning more than USD 25 billion from the RMG sector and is eyeing to earn USD 50 billion by 2021, which is very much possible.” “But you have to understand that if technologies are not integrated in this sector, then the import bill for fabric and materials out of that USD 50 billion export money will be around USD 16 billion, which will shrink the profitability,” he said. He added that to maximise profits, all the manufacturers in Bangladesh needed to understand the benefits technology can bring to their production floors and move towards more efficient manufacturing.

RMG BANGLADESH NEWS