Global cotton production will fall 5 percent year-on-year to around 113 million bales in 2015-16 mainly due to a drop in cultivation in China, a major producer, according to the United States Department of Agriculture. “Production is expected to remain flat or decrease for all major producers, with the largest reductions of about 2 million bales each expected for the United States and China,” a recent report of the USDA said. China’s production is expected to fall to 28 million bales (480 pounds make a bale) as producers respond to the government’s new policies. Responding to sharply lower prices, world consumption is projected to exceed production by three million bales in 2015-16, drawing world stocks down to 107 million bales, the equivalent of 92 percent of projected global consumption, the report said. However, Hissam Khandker, director of Delcot Enterprises, a leading cotton importer, said Bangladesh will not be affected by the drop in production due to the existing high stocks held globally and locally. Cotton consumption in Bangladesh will continue to grow as more spinning mills are being set up and the demand for yarn increases from domestic weavers and knitters, he said. “There is a large stock of cotton globally, which will exceed consumption despite lower productions this year. The prices of cotton will not be affected even in the next year as we have enough stocks,” he said. Bangladesh’s cotton consumption will rise 4.08 percent in fiscal 2015-16, riding on higher demand from local spinners and foreign investors in the textile sub-sector, London-based Economist Intelligence Unit (EIU) said in a forecast. Consumption will increase to 1.02 million tonnes despite poor safety standards, mainly due to a shift in investment in the textile sector from India and China, the EIU said. In Bangladesh cotton imports registered 8 percent growth to 5.6 million bales in fiscal 2013-14 and 6 percent the previous year. Currently, Bangladesh imports around $2 billion worth of cotton a year, according to Bangladesh Textile Mills Association. In recent times, cotton prices in the international markets declined significantly due to the release of older stocks by China, the largest cotton-consuming country. The current prices are at a five-year low of 60-65 cents per pound.

A fund set up to compensate the victims of the Rana plaza factory collapse has finally reached its 30-million target, the UN’s international labor organization (ILO) said this week, report agencies. With all the funding now secured, the last families still awaiting a payout will receive their money “In The Coming Weeks”, said the ILO, which chairs the Rana Plaza coordination committee. The committee, which was established in 2013 and represents all industry stakeholders, had estimated it would need 30 million (26.5 million euros) to fully and fairly compensate the families of the over 1,100 garment workers who died and some 1,500 others who were injured in the country’s worst ever industrial accident. By April 24, on the second anniversary of the disaster, the committee had raised 27 million and was able to pay compensation to 70 percent of the more than 2,800 claimants, the ILO said in a statement. “Further donations, including one significant sum pledged late last week meant that 30m had now been reached and all payments can be made,” it added. The development was welcomed by ILO director-general Guy Ryder. “This is a milestone but we still have important business to deal with,” he was quoted as saying in the statement. “We must now work together to ensure that accidents can be prevented in future, and that a robust national employment injury insurance scheme is established so that victims of any future accidents will be swiftly and justly compensated and cared for.” A host of western retailers had clothing made at Rana plaza, including Italy’s benetton, Spain’s mango and the British low-cost chain Primark. all three were among a number of international brands that contributed to the compensation fund. Earlier on June 9, 2015 The Rana Plaza Coordination Committee said it has raised the entire amount of $30 million needed to compensate all the victims of the building collapse. The payments will be cleared in the next few weeks, the panel, which was formed to raise and disburse the compensation, said in a statement. The committee that represents all industry stakeholders had estimated that at least $30 million was required to ensure fair and equitable compensations for all victims. In January 2014, the ILO also established the Rana Plaza Donor Trust Fund to support the committee’s efforts to finance the compensation scheme. Bangladesh does not yet have a national employment injury insurance scheme to protect victims of accidents at work although the ILO is now working with the government, employers’ and workers’ organisations, donors and industry partners to establish one. In this context, the full implementation of the Rana Plaza arrangement within a two-year period represents a very significant step forward, Ryder said. “Two years have gone and the victims and their families have not got their compensation, so they are anxious the brands and buyers pay their contribution. That’s why all the union groups are seriously annoyed,” said Kamrul Anam of the IndustriALL Bangladesh Council. “Families are seriously suffering because they have no earning source. Minors and babies need money for schooling and they are not able to join and earn money,” he said. Taherul Islam, of the Bangladesh Occupational Safety, Health and Environment Foundation (OSHE), said there have been some improvements in working conditions since the disaster, including the legally binding agreement of the Accord on Fire and Building Safety by brands and trade unions. “The Accord Alliance is trying to find local shortcomings in the buildings, for fire safety. But many issues related to health and safety remain,” he said, urging western companies that use suppliers from Bangladesh to press for better conditions. Support programmes have been set up by national and some international NGOs to provide survivors with vocational training and give their children educational support, but disorganisation between various initiatives is a cause of confusion and frustration among some workers, said Islam. Twenty victims have been invited to a face-to-face consultation with stakeholders at a meeting on Wednesday organised by OSHE to try to clarify the status of compensation and rehabilitation for survivors. A temporary hammer-and-sickle statue has been erected on the disaster site, but Islam dismissed this as the work of far-left groups and said he hoped a different, permanent monument could soon be built. The clothing industry in Bangladesh is second only to China’s in size and ready-made garments account for 78 per cent of the country’s exports. Around four million people are employed in the industry in around 3,500 factories. Fashion Revolution, a global campaign demanding more transparency in the fashion industry, is encouraging consumers to ask retailers where their clothes are made and is organising protest events in 68 countries on 24 April. Planned events in Bangladesh include a photo project of women workers and a “Trace my Fashion” QR code project in partnership with fashion and management students. “Instead of pointing out the negatives, I’d rather work actively towards improving the [clothing] industry, because it’s not going away anywhere,” said Nawshin Khair, Fashion Revolution country coordinator for Bangladesh. “I would rather concentrate on ensuring the right opportunities are given to university students to join the management sector, because they are the future of Bangladesh and right now mid-tier and top-tier jobs in this billion dollar industry are only offered to foreigners because they have the training and know-how,” she said.

Bangladesh Garment Manufacturers and Exporters Association has finally announced schedules for its biennial elections for 2015-2016 term after deferring two times.

The election board chairman Jahangir Alamin on June 10 announced September 8 as the election date for electing directors of the trade body for two years.

Earlier, the BGMEA board of directors took the decision on the polls in a meeting on June 9.

As per the schedule, the last date for paying the annual subscription is July 9 while the last date for submission of nomination for voter is July 12.

The last date for submission of the nominations for the post of director is August 3 while the polls will be held on September 8.

More than 3,000 voters of the trade body will elect 35 directors and the elected directors will choose president and seven vice presidents for the trade body.

The duration of the incumbent board ended in March as the last elections were held in March 2013. The commerce ministry extended the time for the incumbent board for six months.

The BGMEA was supposed to declare elections schedule by December 2014 for holding the polls in March 2015 but the elections were deferred to June as commerce ministry in a letter asked the BGMEA to submit the updated voters’ list to the ministry before holding the elections.

The BGMEA also missed the second deadline and sent a letter to the ministry seeking three more months for updating its members’ list.

The commerce ministry extended the tenure for the incumbents up to September for the second time.

The last biennial elections of BGMEA for 2013-14 were held in March 2013.

The Netherlands has extended its support for ensuring a ‘fair and true’ price for Bangladeshi readymade garments as Bangladesh has made a significant progress in transforming the sector that involves huge costs, reports UNB. “This is of course a very sensitive discussion… but I do think we have to sit together to try and come up with a decision,” visiting Dutch Foreign Trade and Development Cooperation Minister Lilianne Ploumen told a press conference while responding to a question from the news agency. She mentioned that if there is fare wage there has to be a fair price too and hoped that in the next year, working together with everyone, they can come up with some guidance identifying the composition of product price and the price at consumers’ end. The Dutch minister said it is not only the responsibility of the government to improve working conditions but the responsibility of the buyers, retailers consumers too. Commerce Minister Tofail Ahmed who also attended the joint press conference said the Accord and Alliance have no right to interfere in Bangladesh internal matters other than carrying out inspections. “In the name of social audit, they’ve no right to create unnecessary obstacles and interfere in our internal issues. We discussed it and their representatives were present,” Tofail said. He also said the government has already prepared rules for the amended labour law and those will be implemented by July. Earlier in her opening remark, the Dutch minister said since 2013 many challenges in the RMG sector have been tackled and some are need to be addressed in the coming days. She emphasised the need for speedy completion of the process towards adoption of the implementing rules of the Bangladesh Labour Act. Both the ministers underscored that fair pricing should also reflect among other 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. Earlier, the stakeholders, including BGMEA, BKMEA, trade unions and ministers and development partners, held a discussion on the sector. The meeting reaffirmed the collective determination to continue to work together in improving the condition of Bangladeshi workers in the RMG industry

Bangladesh has expressed its concern over the US trade bill on Trans- Pacific Partnership (TPP) with a fear that it might lose its competitive edge in the American market due to the preferential treatment to the trans-pacific partners. Bangladesh Ambassador to the United States Mohammad Ziauddin conveyed Dhaka’s concern to the US authorities in separate meetings held with the US Congressmen Brad Sherman and Tom Marino at the Capitol Hill in Washington DC on June 15 and 16 respectively. During the meetings, Ziauddin briefed the congressmen about Bangladesh’s trade relations with the US. Being a least developed country (LDC), Bangladesh does not receive any special or deferential treatment from the US in terms of trade and commerce, Ziauddin told the US Congressmen. The US is a major destination for Bangladeshi products mainly RMG, receiving nearly one fourth of total exports but Bangladeshi apparels are subjected to a high tariff in the USA as opposed to zero tariffs to almost all other least developed countries in the world, said Ziauddin. The Bangladeshi envoy said: “Around 90% RMG workers are women, who accelerated the process of women empowerment and socio-economic development in Bangladesh.” He urged the US government to provide preferential market access for Bangladeshi products (duty free and quota free) to the US market as accorded to other developing countries of the Sub-Saharan Africa and the Caribbean and to reinstate the GSP facilities for BangladeshBangladeshi RMG. “The international community should persuade Myanmar to take back the Rohingyas from the southern part of Bangladesh,” said Bangladesh envoy while responding to Brad Sherman. Bangladesh cannot afford to host such a large number of refugees inside her territory, he said Regarding the Burmese Rohingyas, he said: “They are extremely susceptive to the religious extremist groups as there are evidences of using Rohingyas for terrorist activities.” The envoy also briefed the Congressmen on the colossal adverse effect of climate change on Bangladesh saying that climate change, a fact of life of the people of the country, is hardly of their own making, and being one of the least emitters of CO2 (with only 0.3 metric ton per capita emissions). Bangladesh is the most vulnerable to the severe effects of climate change and the present government under the Prime Minister Sheikh Hasina created ‘Trust Fund’ of US$ 375 million and launched nearly 238 projects for adaptation and mitigating the adverse effects of climate change in Bangladesh, he told the US congressmen.

The global brands and retailers are forecasting that Bangladesh would soon become a major player in the global denim market. Bangladesh is now turning into a major source of denim products as international retailers attracted by cheaper prices place higher volumes of denim-based work orders. At present Bangladesh is the third largest denim exporter to the US after Mexico and China with an 11.3 per cent market share, according to the US department of commerce. On the other hand, the global denim market will cross $65 billion in the next four to five years. Denim entrepreneurs of Bangladesh are facing serious problems at the moment but huge opportunities are there for increasing export of denim products. To take advantage of the expanding global market of denim, we need to take some steps. DEVELOPING R&D: In this rapid changing fashion world, denim products undergo diversification very frequently. Continuous research is required for this purpose. The managements of the denim industries very often show interest in research work. Without adequate budget, it is impossible to achieve effective R&D (research and development. INADEQUATE LOCAL YARN SUPPLY: Denim fabric is mainly produced from the open-end (Rotor) yarn. Local rotor yarn manufacturing industries can supply less than 50 per cent of the domestic demand. On the other hand, the slub yarn (Ring or Rotor) used in both warp and weft in fancy denim products and the core spun yarn used as weft in stretch denim fabric are mainly imported from countries like India, Pakistan, China, Taiwan, and Thailand. DEPENDENT ON IMPORTED CHEMICAL: Colourants and auxiliaries required for warp dyeing and garment washing are fully imported from abroad. When other Asian low-cost denim exporting countries like China, India and Pakistan are using their own chemicals which save their product cost. Moreover, insufficient gas, lack of infrastructural capacity and power crisis are common phenomena here. In spite of many limitations, our denim backward linkage is developing day by day. Presently Bangladesh has 25 denim fabric manufacturing plants. Most of them equipped with modern machineries have been set up in two years. More than five new companies are also setting up factories. They are now giving quality production with their maximum capacity. In addition, denim will contribute around $2.0 billion to the country’s garment export target of $50 billion by 2021. There is a huge demand of denim in the domestic market. Bangladesh is a growing market for denim fabrics and global retailers, especially European Union, are sourcing from here. Industries insiders say the local entrepreneurs are interested in denim production due to mainly higher demand and duty-free access opportunities to the European market. More than 60 international brands including G-Star, Jack and Jones, Oliver, River Island, H&M, C&A, PVH and GAP have turned to Bangladesh in the last couple of years for denim product imports. Versatile finishing range has to develop for the value added surface effect. To increase the percentage of contribution in the world denim market share, our manufacturers have to be as responsive and flexible as they can possibly be, by rapid response time with quality product and competitive price. Economists at home and abroad forecast that our next major business opportunity is denim, as orders are shifting from China to Bangladesh because of rising denim costs in China. Skilled workforce at all levels like operation, quality control, management, marketing, etc. related to denim manufacturing process are there in the country. It has reduced the dependence on foreign experts. Most of the recently running denim projects are running by our own experts. This encourages investors to set up new denim plants and expand the existing ones.

Visiting Dutch foreign trade and development cooperation minister Lilianne Ploumen opened a cleaner production measures in textiles industries in the city Tuesday. The seminar on ‘Sustainable Wet Processing’ was jointly organised by the International Finance Corporation (IFC) and Solidaridad. The initiative titled ‘Bangladesh Water Pact: Partnership for Cleaner Textile’ is being implemented in association with leading international apparel brands, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Embassy of the Kingdom of Netherlands in Bangladesh Working with over 100 textile factories, the project will facilitate ‘cleaner production measures’ across the textile industry resulting in a sustainable and competitive industry, according to the organisers of the seminar Earlier, Dutch Ministers Mrs. Lilianne Ploumen, Minister for Foreign Trade and Development Cooperation and Ms. Melanie Schultz Van Haegen, Minister of Infrastructure and Environment, paid a visit to DBL Group Factories at Kashimpur, Gazipur on Monday.  A multi-stakeholder delegation comprising representatives of Ministry for Foreign Trade and Development Cooperation of the Netherlands, Ministry for Infrastructure and the Environment of the Netherlands, Mr. Gerben de Jong, Ambassador of the Netherlands, Mr. Sheikh Mohammad Belal – Ambassador at the Bangladesh Embassy in the Netherlands, high officials from Dutch water companies, textile companies, trade unions and NGOs accompanied the Ministers. Mr. M.A. Jabbar, Managing Director, DBL Group and Mr. M.A. Rahim, Vice Chairman, DBL Group were also present during their visit, according to a media release. The visit was to intended to see the implementation of PaCT Project in DBL. PaCT seeks to bring about systemic, positive environmental change for the Bangladesh textile wet processing sector, its workers, surrounding communities and to contribute to the sector’s long-term competitiveness. PaCT is being implemented in about one hundred wet processing textile factories in Bangladesh. Besides, PaCT, DBL is also working on projects like Rice Fortification Programme, Nirapod: Saving Women from Unwanted Pregnancy & Unsafe MR etc. These projects are funded by the Netherlands government. During the visit, activity and progress of these projects have also been shared with the Ministers.