Bangladesh Garment Manufacturers and Exporters Association has formally sought land from India to set up warehouse and distribution center in Gujarat. The trade body submitted a formal proposal to the Indian High Commissioner in Dhaka Pankaj Saran yesterday. “The process begins here with the submission of proposal,” BGMEA president Atiqul Islam told Dhaka Tribune.  He said the high commissioner had received the letter and would dispatch it to the Indian government. During a meeting with Indian Prime Minister Narendra Modi’s visit to Bangladesh on June 7,  the BGMEA president informally sought a 50-acre land in India for a warehouse and distribution centre. PM Modi gave an assurance of considering the proposal.  In the letter signed by BGMEA president, the apparel manufacturers requested the Indian envoy to take the matter to the relevant authorities. BGMEA said they wish to get a positive response from the Indian authorities as soon as possible, preferably in three months.  According to the proposal, the land will be procured in the name of the company formed by BGMEA, BKMEA and others. The trade bodies will make an investment of approximately $25m to set up the warehouse and distribution centre. The apparel makers will open 1,000 retail stores in different Indian cities to display and sell out products to earn a sum of $1bn in next few years, according to the BGMEA proposal.  The RMG manufacturers expressed hope to get necessary permission from the Bangladesh government on fast-track basis.  “We are all set to explore the Indian apparel market on a large-scale basis, and if the government helps us by providing land, Bangladesh will be able to secure a significant market share in the neighbouring country,” said Shafiul Islam Mohiuddin, senior vice president of Federation of Bangladesh Chambers of Commerce and Industry and former BGMEA president.

The Minister for Foreign Trade and Development Cooperation of the Netherlands, Lolianne Ploumen, yesterday said lots of progress have so far been made by the RMG sector, and still some challenges are ahead that need to be addressed.  `The Netherlands minister came up with the challenges at a meeting on development of the Bangladesh RMG sector in the context of Responsible Global Supply Chains through Multi-stakeholder partnership held at a city hotel. “If there is a fair wage, there should have a fair price,” Ploumen told the reporters after the meeting.  She said lots of progress have been made, including increasing workers’ minimum wage, inspection at the factories and labour law amendment. “I think, we have to celebrate the progress that has been made by the RMG sector since 2013.”  Still remains some challenges and collective efforts are necessary to address them, particularly fixing ‘true price’, she said. Ploumen added that the second issue is unauthorised subcontracting that needs to be eliminated, and the third is the right to organise. In his address, Commerce Minister Tofail Ahmed said the Accord and Alliance are creating obstacles in the name of social audit. He alleged that they want to interfere in some issues beyond their jurisdiction.  The government runs under the rule of law and they should not interfere in the internal issues, said Tofail. Talking on fair price, the commerce minister said RMG owners have to spend a lot of money on making the factory compliant, but the buyers did not increase the price of products. The Dutch minister also said they are discussing the issue of finance for small and medium enterprises.   She emphasised the need for speedy completion of processes towards adoption of the implementing rules of Bangladesh Labour Act.  Tofail said the rules of amended Labour Act 2013 would be implemented by July.  The meeting reaffirmed the collective determination to continue to work together in improving the condition of Bangladeshi workers in RMG industry. The Dutch minister called upon the industry owners to fully cooperate with the government of Bangladesh and ILO to complete all the safety assessments in the still-to-be inspected export-oriented factories.  She also recognised that once the challenges are addressed, the Bangladeshi garment sector could be transformed into a model of developing sustainable global supply chain in a labour-intensive manufacturing industry. The meeting was also attended by a multi-stakeholder delegation including BGMEA, BKMEA, brands, trade unions and civil society organisations.

Dutch foreign trade and development cooperation minister Lilianne Ploumen has identified three challenges for readymade garment sector of Bangladesh that are needed to be addressed. The challenges are fair prices of products, unauthorised sub-contracting and rights of workers. After a meeting on ‘Development of the Bangladesh RMG sector in the context of responsible global supply chains through multi stakeholder partnership’ with the Bangladesh government, factory owners, workers representatives from buyers and brand on Sunday the Dutch minister said the Bangladesh government and factory owners are not only responsible to ensure safe working condition. ‘Buyer brands and consumers also have responsibility and they will have to come up with true prices of the products,’ Ploumen said at a joint press conference at Hotel Westin in the city. At the press conference commerce minister Tofail Ahmed said Bangladesh had addressed all the conditions that had been raised by the international community following the Rana Plaza building collapse but the retailer groups had been creating some obstacles in the factories in the name of social audit. He alleged that the Accord, the platform of European brands and retailers, was doing some activities beyond its jurisdiction. ‘The Accord and Alliance (the platform of the North American buyers and brands) are supposed to conduct inspections in the factories, not to interfere in other affairs,’ Tofail said. The commerce minister, who has been vocal against Accord’s activities for the last couple of months, urged the retailer groups to come up under the rules and regulations of the Bangladesh government to operate their inspection-related activities in the country. Tofail said they discussed in the meeting about the true prices of products. The factory owners invested a lot to make their units compliant following the Rana Plaza building collapse but the buyers and the retailers are yet to increase the prices, the commerce minister said. ‘We have done all the requirements of the international community to ensure safe working condition and worker rights through finalising the implementation rules of labour act,’ Tofail said. The minister assured that the implementation rules of the labour act would be effective from July. Dutch minister Ploumen urged the government to allow workers to get actively engaged in trade unions. She also raised as a matter of priority the issue of unauthorised subcontracting and the need for safety assessment in the non export-oriented factories. According to a joint statement of the meeting, both the ministers addressed the issue of fair pricing and access to reasonably-cost finance.

Knitwear and textile major DBL Group has accorded a reception to the children of its employees who passed public exams with flying colours, the company said. M.A. Jabbar, Managing Director of DBL Group, M.A. Rahim, Vice Chairman & Group CEO, M.A. Quader, Deputy Managing Director, and employees of the Group along with their family members and other distinguished guests attended the reception programme and counseling session. The programme was held on Saturday at the Group’s Mymun Complex in Gazipur, it said in a statement. The day-long programme was divided into two sessions. The first one was devoted to “Academic Path Counseling Session”. This session was designed for DBL Group employees’ children who just passed H.S.C or Alim examination and need proper guidance to build a successful career in future. Dr. Abdul Hannan Chowdhury, Pro-Vice Chancellor, Eastern University, Dr. Shima Zaman, Associate Professor, Department of Law, University of Dhaka and others were present to advise almost 200 students who attended the session. The second session was an “Appreciation Programme” for the meritorious children of the Group’s employees who secured A+ or Golden A+ in the examinations of JSC or JDC, SSC or Dakhil and HSC or Alim. The Board of Directors of the Group handed over appreciation crest and cash to the students. DBL Group organises such programs every year to inspire the dependents of its employees. Besides, the Group bears all the education expenses of the students who get A, A+ and Golden A+ in board exams. Since its inception, DBL Group has been working for the betterment of its employees and their family’s education, health and improvement in living standard. The initiative is not only an encouragement for DBL Group’s employees, but also helps students continue their education properly. DBL Group aims to create a good employer-employee relationship, said the statement.

Ensuring fair prices of apparel products on the world market and workers’ rights to organise trade unions and checking unauthorised subcontracting still remain key challenges for an efficient readymade garment industry in Bangladesh, said a visiting Dutch minister.  Lilianne Ploumen, Minister for Foreign Trade and Development Cooperation of the Netherlands, made it clear that while it is the responsibility of the government and the industry to ensure good working conditions, the buyers and consumers also do have the obligation to pay fair price of the apparels. She made the observations at a joint press conference held Sunday at a city hotel. Commerce Minister Tofail Ahmed also spoke at the press meet organised following a seminar on ‘supply chains through multi-stakeholder partnership’. Apart from the two ministers, representatives from government, apparel makers, trade unions, brands, buyers, ILO, and Accord and Alliance were also present. President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Md Atiqul Islam, Vice- President of FBCCI Shafiul Islam Mohiuddin and Vice- President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Aslam Sunny were also among others present at the press conference. Addressing the fair-price issue, the Dutch minister said “…it is not only the responsibility of the government of Bangladesh, owners of factories to improve working conditions but also the responsibility of brands, buyers and also the consumers to come up with the true fair price.” Underscoring its importance, she called for collective effort to discuss the issue with the multi-stakeholder groups how the fair price is assessed while ensuring competitiveness of all. Ms Ploumen also raised the issue of unauthorised subcontracting as a matter of priority and the need for safety assessment in the non-export-oriented factories. “Joint effort is needed to make sure that unauthorised subcontracting will not be offered again and the small and medium units will be able to part of the attempt,” she noted. Mr Tofail Ahmed alleged that Accord and Alliance-the two groups of western retailers-are creating some unnecessary obstacles in the name of social audit. “Accord and Alliance are here to inspect factories. There is law of the land to look into the other issues,” the commerce minister said, warning both the groups not to interfere into any internal factory issues. He said that the rules regarding enforcement of the labour law are in the final stage and will be implemented from July next. Both the ministers also addressed the issue of fair pricing and access to reasonably-costed finances. They underscored that fair pricing should be reflected, among others, the cost of fire, structural and electrical safety and reasonable working hours in order to avoid workers having to pay the ultimate price through poor working conditions. In that context, the Dutch minister affirmed her support to convening a conference to address the issues related to access to finance and fair pricing in the RMG sector in the near future. Regarding trade unions, she urged the Bangladesh government and the industry to enable workers to be actively engaged in trade unions. Both the ministers, however, emphasised the need for continued interactions and engagement between governmental stakeholders, employers’ association and trade unions in Bangladesh as well as the brands, retailers and the international community within the global supply chain to work towards the realization of a safer, responsible, sustainable and more efficient RMG sector.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) formally placed its proposal to the Indian High Commissioner on Sunday, seeking allotment of land in India to set up a warehouse and distribution centre. BGMEA President Md Atiqul Islam handed over the proposal to the Indian High Commissioner in Dhaka Pankaj Saran at the latter’s office. Earlier, India sought a proposal from BGMEA over its investment plan in India. The business leaders, led by FBCCI President Abdul Matlub Ahmed, demanded 50 acres of land in India for investment during a meeting with Indian Prime Minister Narendra Modi on June 07.   “The land will be procured in the name of a company, formed by BGMEA, BKMEA and others, to set up a warehouse and distribution centre, primarily for RMG products,” the proposal read. According to the proposal, the leaders intend to invest about $25 million in India for setting up the warehouse and distribution centre. It also included a plan to establish around 1,000 retail stores in various Indian cities to display and sell locally-produced apparel products to increase the exports to $1.0 billion within the next few years. The BGMEA leaders said they are hopeful of obtaining necessary permissions from the Indian government on fast-track basis. The leaders requested the Indian High Commissioner to take up the matter to the relevant authorities of India to facilitate allotment of land in favor of the proposed company as soon as possible, preferably in three months.

Garment exporters yesterday submitted a proposal to the Indian High Commission in Dhaka, seeking 50 acres of land in Gujarat to build a warehouse from which apparel items can be shipped directly to retail shops across India. Indian authorities had earlier agreed to provide the land and asked Bangladesh Garment Manufacturers and Exporters Association to submit a detailed proposal. A BGMEA team led by its President Atiqul Islam first placed the demand to Indian Prime Minister Narendra Modi during his recent visit to Dhaka. Modi discussed the matter with his policymakers upon returning to New Delhi and decided to provide the land to the BGMEA. The move is expected to help Bangladesh’s garment makers meet their target of exporting $1 billion worth of products to the neighbouring country in the next three years. Islam handed over the proposal to Indian High Commissioner Pankaj Saran. Islam in the proposal said the land will be procured in the name of a company formed by BGMEA and Bangladesh Knitwear Manufacturers and Exporters Association and others to set up a warehouse and distribution centre primarily for garment products. “We want to invest around $25 million in India for setting up the warehouse and distribution centre,” he said, adding that they plan to establish around 1,000 retail stores in various cities of India to display and sell their products. Islam also said they are hopeful the Bangladesh government will allow them to purchase land in India to set up the warehouse.

The garment sector is set to miss its export target this fiscal year after the three-month political turmoil hampered shipments. Between July last year and May this year, garment exports raked in $22.92 billion, which is up 5.51 percent year-on-year but below the periodic target of $24.26 billion, according to data from the Export Promotion Bureau. Now, to meet the yearly target of $26.9 billion, some $3.98 billion has to be earned this month, the closing month of fiscal 2014-15. Atiqul Islam, president of Bangladesh Garment Manufacturers and Exporters Association, placed the blame on the political crisis. The garment exporters could hardly send their shipments for three months from January to March, he said. The strong performance by some competing countries such as India, Vietnam and Pakistan is another major reason for the fall, he added. The average export growth of the three countries is nearly 10 percent. Islam also identified some short-term challenges, including lower productivity by workers, higher cost of production and a steep fall of two major currencies — the dollar and the euro — against the taka. “It’s time to find out the root cause of our problems for the sustainability of the garment business and to achieve our $50 billion target by the end of 2021.” The long-term challenge for the garment sector is the Trans-Pacific Partnership (TPP), a trade agreement between Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam and the US. The agreement is expected to take effect soon. If the TPP is signed, Vietnam will enjoy duty benefits to the US and other prominent markets, another threat for the Bangladeshi garment items, he said. Ahsan H Mansur, executive director of Policy Research Institute, said a lack of new investment for expansion purposes set the sector back.

After India, Bangladesh is now planning to form an alliance with China to tap the marine resources in the Bay of Bengal. “We received a Chinese proposal on Wednesday to forge an alliance on blue economy,” a senior Foreign Ministry official said, seeking anonymity. Bangladesh and India signed a memorandum of understanding on blue economy and maritime cooperation in the Bay of Bengal and the Indian Ocean on June 6 in the presence of Prime Minister Sheikh Hasina and her Indian counterpart Narendra Modi. “We are now scrutinising the proposal and hope to come to a conclusion as soon as possible,” the official said. Bangladesh also wants to form a bloc comprising regional littoral states to cooperate in the field of blue economy. These states are Bangladesh, India, Thailand, Myanmar, Sri Lanka, Maldives, Indonesia and Malaysia. The MoU is mainly on skill development, capacity building, pollution response, tsunami and cyclone warning and fishing among other things. “We incorporated the harmless issues and dropped the thorny or sensitive issue such as security,” said another Foreign Ministry official. Bangladesh does not have much knowledge about marine bio-technology unlike India who has advanced knowledge in this field, and Dhaka can benefit from sharing, he said. Medicines such as cod liver oil, cosmetics and toiletries can be produced with marine resources but Bangladesh lacks investment in the sector. Fishing is another area where both Bangladesh and India can cooperate as the former lacks deep sea fishing capacities, the official said. “Bangladesh has sovereign right to fish in up to 200 nautical miles but the vessels can go up to only 40 nautical miles,” he said. The deep sea has massive untapped fishing resources but Bangladesh has been unable to tap it, he said. The joint statement issued during Narendra Modi’s visit to Dhaka said that the two prime ministers had expressed satisfaction at the amicable settlement of the maritime boundary issue. “To harness the vast economic opportunities this has opened up, they agreed to work closely on the development of ocean-based Blue Economy and maritime cooperation in the Bay of Bengal and chart out the ways for future cooperation,” the statement said. About the deal with China on marine cooperation, the official said it would be like what Bangladesh has with India. “We will cooperation in the harmless areas like what we have with India while security and other thorny issues will not be included in the deal with China,” he added. Bangladesh settled maritime boundary disputes with India in 2014 and with Myanmar in 2012. Bangladesh now has sovereign authority over a 118,000 sq-km area in the Bay.

Country’s exports to most of the non-traditional markets witnessed a healthy growth in the July-May period of the current financial year 2014-15 but Turkey and South Korea remained blemishes during the period. Exporters said earnings from the Turkey market dropped due to imposition of safeguard duties on the readymade garment imports and devaluation of the euro and the Turkish currency lira while earnings from South Korea decreased due to a fall in export of leather and leather products. On the other hand, export earnings from Australia, China, India and Japan witnessed significant increases. Export earnings from the Turkey market dropped by 17.53 per cent to $653.73 million in 11 months of the current fiscal year from $792.77 million in the same period of the FY 2013-14. Export earnings from Australia in the July-May period of the FY15 increased by 25.39 per cent to $547.38 million from $436.69 million in the same period of the FY14, data showed. ‘It’s a good sign for the country’s RMG sector that the earnings from the non-traditional markets have been increasing gradually,’ a former vice-president of the Bangladesh Knitwear Manufacturers and Exporters Association, Mohammad Hatem, told New Age. He said the export to Australia increased in the recent months as the country shifted its procurement from China to Bangladesh. ‘Export earnings from Australia witnessed a significant growth in 11 months of the FY15 riding mainly on the earnings from knitwear products. Not only Australia but also New Zealand raised its procurement from Bangladesh as China shifted their production to high-end products from basic items,’ Hatem said. RMG export to Australia in 11 months of the FY15 increased by 22.80 per cent to $481.58 million from $392.17 million in the same period of the FY14, the EPB data showed. Hatem also said the earnings from Turkey dropped due mainly to the imposition of safeguard duty on importing RMG from Bangladesh as well as a depreciation of the euro. The payments between Bangladesh and Turkey are settled in the euro, Hatem added. According to the EPB data, the export of RMG to Turkey in 11 months of the financial year 2014-15 decreased by 23.88 per cent to $438.69 million against $576.34 million in the same period of the FY 2013-14. Export to China increased by 6.40 per cent to $720.01 million in the July-May period of the FY15 against $676.68 million in the same period of the FY14. RMG export to China increased by 26.42 per cent to $265.71 million. Export to India in the July-may period of the FY15 increased by 18.97 per cent to $472.12 million from $396.82 million in the same period of the FY14. RMG export to India increased by 11.80 per cent to $94.45 million in the period. Export earnings from Japan in 11 months in the FY15 grew by 6.20 per cent to $838.34 million from $789.38 million in the same period of the FY14. RMG export to Japan grew by 14.58 per cent to $594.81 million in the period, the EPB data showed. Exporters hoped that the export to Japan would increase more and the market might be the next one-billion-dollar market for Bangladesh as the country (Japan) relaxed rules of origins on knit articles from two stages to one stage. The EPB data showed that export to South Korea in 11 months of the FY15 decreased by 23.78 per cent to $244.12 million from $320.28 million in the same period of previous financial year. Leather export to South Korea in the 11 months dropped by 49.31 per cent to $51.86 million from $102.31 million in the same period of the FY14.