fbpx
Facebook RSS Twitter Youtube
23 C
Dhaka
Wednesday, January 22, 2025
Facebook RSS Twitter Youtube
Home Blog Page 2

Textile millers want credit extension for importing raw materials

POST BY
RMG Bangladesh
-

Bangladesh’s textile millers have asked the Bangladesh Bank to extend the credit period to help ease the financial burden of importing raw materials and support their import-export trade.

The textile millers sent a letter regarding this to Ahsan H Mansur, governor of Bangladesh Bank, on Monday.

Brig Gen (retd) Zakir Hossain, general secretary of the Bangladesh Textile Mills Association (BTMA), signed the letter.

A central bank circular dated June 30, 2024, extended the credit period for importing industrial raw materials until December 31, 2024.

The bank representatives and the BTMA delegation held a detailed meeting on December 17, where they discussed the problems, challenges, and potential solutions, including the proposal to extend the crediting period for importing industrial raw materials once more.

Following the discussion, the BTMA also sent a detailed report identifying the existing problems and challenges of the export-oriented textile sector, along with potential recommendations for resolution and prioritization.

The letter explained that mills are unable to operate at full capacity because of several reasons.

That includes the Ukraine-Russia and Israel-Palestine wars, the global economic recession, significant depreciation of the taka against foreign currencies, a 250% increase in gas prices, a 70% increase in workers’ wages, recent political unrest in the country, workers’ unrest, and a lack of necessary gas and electricity supply, mills are unable to use their full production capacity.

Moreover, the export-oriented textile industry, including the manufacturing industries, has faced huge losses due to the exchange rate when importing raw materials.

The export-oriented textile industry has been facing several problems since the deadline for the extended crediting period has passed, the letter added.

Considering the overall aspect, it has become necessary to increase the credit period for the import of industrial raw materials urgently to facilitate the import-export trade.

The textile millers urged the central bank to take necessary measures to extend the credit period for importing industrial raw materials for the textile mills belonging to BTMA per the circular of June 30, 2024.

The BTMA, in a separate letter, also urged the central bank to take necessary steps to pay the outstanding amount of “Accepted/Matured” bills against the value of yarn and fabric supplied worth approximately $44.31 against 961 LCs of 66 BTMA member mills against back-to-back LCs by the LC opening banks.

The letter said that many of the concerned BTMA member mills are facing a liquidity crisis due to such a large number of unpaid bills.

Moreover, this issue was also discussed in detail in the meeting held by the Bangladesh Bank governor with the BTMA delegation on December 17, where he assured that steps would be taken to pay the outstanding bills as soon as possible.

The investment in this sector is about $22 billion, which is the highest single investment in the private sector. The textile and apparel sector earns about 84% of the country’s export earnings, with the country’s textile millers supplying 70% of the raw materials and gaining about 30% of foreign exchange through it.

RMG imbroglio

POST BY
RMG Bangladesh
-

It was no coincidence that the simmering discontent of garment workers burst into full blown labour unrest to synchronise with the July-August mass uprising. Workers who could not press home their demands earlier under a repressive regime known for patronising crony capitalism considered it was their best chance to align their protests with the anti-discrimination mass movement spearheaded by students. The country was in turmoil and labour unrest continued to deteriorate with both management and workers refusing to see to the greater interest of the RMG industry. Notably, of the more than 4,500 apparel factories, there are 229 LEED-certified green garment factories—highest in the world. These and some other factories boast sound labour-management relations because the authorities there have been considerate enough to pay higher wages and provide various facilities deemed fit to keep workers contended. Unfortunately, the owners of the rest of the garment factories are not equally smart in running their factories.

An incisive government report prepared to identify where things have gone wrong and suggest how the malaise can be addressed does the job more or less comprehensively. The lead story prepared on the basis of the report titled, ‘special report on labour unrest in garment sector’ and published in The FE’s Sunday issue presents quite a disconcerting picture. As if the 1108 incidents of labour unrest that took place between August and December were not enough, there is apprehension of more to come. Of the several reasons that have soured management-workers relations, unpaid wages, retrenchment and refusal to regularise jobs stand out. On the part of management, presumably the smaller and not so well run, the problems stem from shortage of raw materials and work orders. In a competitive market, the smaller units are always at a disadvantage. When industries are restive, their disadvantages compound with dollar crisis leading to limited import of raw materials.

Yet good management tries not to accumulate arrears of wages. As many as 67 factories were closed sine die and 77 temporarily during the period, according to the report. The fact is unrest in the RMG belts never got defused —even notwithstanding the higher wage agreed upon. Many of the factories did not comply with the payment of outstanding dues to their workers within the stipulated time. Then the termination of thousands of workers’ jobs from the closed factories owned by some disgraced industrialists of the past regime has not helped the matter. Its socio-economic implications, as hinted at the report, may be dangerous. At a time when industries in general are facing difficulty, such closures have to be avoided at any cost. Getting the mechanism right to run those would be wiser.

The report has indicated instigation by some labour leaders as one of the factors responsible for the unrest. Well, if workers do not get their overdue arrears and wages regularly on a fixed date, they cannot help taking to the street. In this time of outrageous market volatility, even their regular wages hardly prove more than a pittance. If the industry falters, the sign of which is there, both management and workers will suffer. The country’s economy will be affected as well because RMG is the number one foreign exchange earner. Before it makes its downhill slippery journey when rivals like Vietnam and India are gaining grounds, let every stakeholder cooperate to realise the high potential of the garment industry.

Tirupur’s export growth takes off: Can it maintain the pace?

POST BY
RMG Bangladesh
-

Tirupur, the crown jewel of India’s apparel manufacturing, is bouncing back after a tough FY ’24. The textile hub faced an 11 per cent dip in exports, driven by a 10-month slump from April to January. The exports fell by 11 per cent to Rs. 30,690 crore (US $ 3.62 billion) from Rs. 34,350 crore ((US $ 4.05 billion) in FY ’23 due to external factors such as the Ukraine war, economic troubles in Europe and the US and trade disruptions. However, FY ’25 has brought in strong recovery.

Accounting for 55 per cent of India’s knitwear exports, Tirupur posted 13 per cent growth in the first five months of FY ’25 as exports grew to Rs. 14,679 crore (US $ 1.73 billion), up from Rs. 12,995 crore (US $ 1.53 billion) during the same time last year, with August alone recording a 22 per cent rise to Rs. 3,114 crore (US $ 367 million)—the highest in over two years. The exports are projected to reach Rs. 40,000 crore (US $ 4.72 billion) in FY ’25.

The region’s 5000 MSMEs including 15 vertically integrated companies are operating at 95 per cent capacity, compared to just 60 per cent – 65 per cent a few months ago. Trade bodies credited an uptick in orders from the US and the UK as well as political unrest in Bangladesh for the recent growth in exports. Beyond exports, Tirupur also serves as the domestic market which generates Rs. 25,000 crore (US $ 3.1 billion) in revenue. To keep up the momentum and offset price pressure from buyers, local entrepreneurs are exploring new markets, diversifying product offerings, increasing their focus on man-made fibres and sustainability.

Tapping into the US Market
Talking about the growing importance of the US market, Logu, MD, AKR Industries, with an annual production capacity of 2.5 million kidswear garments, mentioned, “We used to have our products in almost all stores across the EU. Now, I’m very optimistic about the opportunities in the US as this market offers large orders. Developments like the China-plus-one policy and similar trends are expected to benefit us.”

Tirupur’s export growth takes off: Can it maintain the pace?
Logu, MD, AKR Industries
The company whose clients includes Tommy Hilfiger, H&M, Timberland, Lee Cooper and Landmark Group, is shifting from offering value products to focusing on high-volume products. Logu sees this as a positive move since larger orders come with the volume segment. Although the profit margin is lower in volume business, it will be partly offset by improved production efficiency as volume increases.

Tirupur’s export growth takes off: Can it maintain the pace?
P. Moghan, MD, Anugraha Fashion Mill
Similarly, P. Moghan, MD, Anugraha Fashion Mill, a vertically integrated garment manufacturer with an annual turnover of Rs. 400 crore (US $ 50 million) and a capacity of 100,000 pieces in a day, has also cast an eye on the US market. “US market can be an additional market area to focus on in near future,” he said and informed that the company is enhancing its production capacity by 30 per cent in Tamil Nadu.

Best Corporation, a leading textile company with an annual turnover of Rs. 1600 crore (US $ 200 million), was one of the first in Tirupur to recognise the potential of the US market, which now accounts for 60 per cent of its revenue.

“Europe is a fragmented market with smaller order sizes compared to the US. Right now, the focus is on expanding capacity to meet the opportunities available with our existing clients and markets,” said Rajkumar Ramasamy, MD, Best Corporation. He also noted that other markets are smaller and more mature, offering limited growth potential for companies like theirs.

Tirupur’s export growth takes off: Can it maintain the pace?
KM Subramanian, President, Tirupur Exporters Association (TEA)
The players are also negotiating strongly for a better price. “Earlier, we committed to a low price and the priority was to run the factories. Now almost all the exporters are negotiating with buyers and prioritising to work with good brands. The good thing is that more and more buyers are willing to pay higher prices than before and they are also increasing their orders,” emphasised KM Subramanian, President, Tirupur Exporters Association (TEA), a group of more than 1300 knitwear exporters and allied companies. Subramanian is also the Founder of KM Knitwear, a vertically integrated garment manufacturer. He also underlined that the cluster is putting more effort into getting business from the US, as Europe is now almost the same size in market for Tirupur. Earlier, Europe had a larger share, around 40 per cent, while the US had about 30 per cent. Now, big US companies like Costco, which didn’t give much attention to Tirupur before, are increasing their orders from here.

Though Subramanian clarified that US-based clients still prefer to work with only a few selected companies. However, as their focus on Tirupur grows, there will be more opportunities for other exporters to receive orders as well.

We used to have our products in almost all stores across the EU. Now, I’m very optimistic about the opportunities in the US as this market offers large orders. Developments like the China-plus-one policy and similar trends are expected to benefit us. – Logu, MD, AKR Industries
MMF takes the spotlight
The global move towards MMF (man-made fibres) is clear, as 50 per cent of US $ 953 billion in apparel exports worldwide were made from MMF in 2022, 37 per cent were made from cotton and the rest came from other fibres.

In line with this trend, representatives from the TEA recently visited Surat. The purpose of the visit was to find ways to combine Surat’s expertise in MMF production with Tirupur’s strong garment manufacturing capabilities. The group is also sharing ideas about MMF with experts from countries like Taiwan and Korea.

Tirupur’s export growth takes off: Can it maintain the pace?
Rajkumar Ramasamy, MD, Best Corporation
Taking the next step in the MMF segment, Best Corporation is setting up a synthetic fabric facility that is expected to start in the next few months. The plant, with an initial capacity of around 10 tonnes per day, will outsource yarn and develop fabric with circular and warp knitting machines. “We will focus on producing different types of manmade fabric here”, said Rajkumar Ramasamy, who is seeking professional help from Taiwan for this plant.

This thrust is also seen by companies that usually focus on cotton, like Anugraha Fashion Mill.

Tirupur’s export growth takes off: Can it maintain the pace?
Raja M Shanmugam, MD, Warsaw International
“After Covid, exporters stepped out of their comfort zone and sped up product diversification. Fluctuations in cotton prices also pushed them to focus more on MMF,” said Raja M Shanmugam, MD, Warsaw International and past President, TEA. The company, with a focus on men’s apparel, works exclusively with a German premium casual brand and sells each garment for € 20.

TEA is closely working with its members to help them transition to MMF-based garments. The goal is for MMF garment exports to make up 30 per cent of total exports by 2030. Leading domestic brands like Technosport are guiding exporters in this shift. “Motivated by opportunities in MMF, my factory has started a separate dyeing division for 100 per cent polyester,” said KM Subramanian.

Earlier, we committed to a low price and the priority was to run the factories. Now almost all the exporters are negotiating with buyers and prioritising to work with good brands. The good thing is that more and more buyers are willing to pay higher prices than before and they are also increasing their orders. – KM Subramanian, President, TEA
Tirupur’s push for sustainability
Tirupur is often touted as India’s most sustainable apparel manufacturing hub. Thanks to the collective efforts of the apparel manufacturers, state and central government along with civil society, the cluster has established itself as a water treatment capital.

One of its key initiatives is the Zero Liquid Discharge (ZLD) system, which recycles 120 million litres of water every day. The area has also invested heavily in renewable energy, using wind and solar power, which provides five times more energy than it needs.

For instance, AKR Industries is using 100 per cent recycled polyester and recycled cotton in a major way. Similarly, Anugraha Fashion Mill, which has a LEED-certified (Gold) facility, is also focusing on making its production process more sustainable. The company has achieved the Certification of Sustainable Textile Production (STeP) and is eligible for Made in Green (MIG). Anugraha has also decided that all its new facilities will be green-certified. The company generates 60 per cent of its energy through its own power and claims its thrust on sustainability is not due to buyers’ pressure.

Tirupur’s export growth takes off: Can it maintain the pace?
Milton Ambrose John, MD, Cotton Blossom
However, Milton Ambrose John, MD, Cotton Blossom, another vertically integrated manufacturer underlined, “If the costs and requirements for certifications are reduced, more companies, especially smaller ones, will be able to focus on sustainability and work towards it.” The company has a capacity to produce 30 million garments per year and is certified with The Cradle to Cradle (C2C) Gold Level Certification.

KM Subramanian mentioned, “We are in discussion with the Government to establish a separate HSN code for truly sustainable garments.” TEA has even formed a dedicated committee for sustainability, working to raise awareness and support the cluster’s apparel manufacturers. KM Subramanian further added that KM Knitwear aims to become 90 per cent carbon-neutral and to become carbon zero by 2027.

Manufacturers explore new markets
Experts are also optimistic about the future. For example, AKR Industries expects to make around US $ 65 to US $ 70 million in turnover this year and believes it will reach over US $ 100 million in the next financial year. The company is looking for partnerships with Korean firms that have strong connections with American buyers and good control over design. Its in-house team of software engineers are working on their own ERP system, with plans to offer it to other apparel manufacturers in the future.

Tirupur-based companies are also exploring other parts of India to expand their manufacturing operations, attracted by various states offering generous subsidies. The availability of local labour in emerging hubs is another key factor, as Tirupur heavily relies on migratory workers and frequently faces labour shortages. Recently Madhya Pradesh’s CM Mohan Yadav also visited Tirupur and had a meeting with apparel exporters.

Tirupur’s export growth takes off: Can it maintain the pace?

Best Corporation, which already has a manufacturing unit in Kenya, plans to transform the company’s RMG unit in Madhya Pradesh into a vertically integrated unit mainly because of subsidies on capital, interest and employment offered by the state. The company has also developed its own ERP system and is now using it commercially. “Our goal is to provide the best quality and service to our clients while staying cost-competitive. To do this, we keep looking for new manufacturing locations, both in India and internationally,” said Rajkumar.

Warsaw International has also started making wool-based garments, something uncommon in Tirupur. It is currently importing wool from China but is also exploring sourcing options from other regions, including India.

KM Subramanian mentioned that business from the UAE and other regions is also growing. Orders from Australia have increased significantly, with companies like Woolworths, Target and Big W now placing orders in Tirupur, instead of Bangladesh. Similarly, buyers from Tesco, Next, Decathlon, Mothercare and C&A are also increasing their orders from Tirupur. Buyers and brands have now slowly started their compliance audit through third party agency which shows their interest in placing more orders in future.

The cluster is also trying to crack the Japanese market.

২০২৪-এর নভেম্বরে যুক্তরাষ্ট্রে পোশাক রপ্তানি বেড়েছে ৪১.৬ শতাংশ

POST BY
RMG Bangladesh
-

২০২৪ সালের নভেম্বরে বাংলাদেশ থেকে যুক্তরাষ্ট্রে পোশাক রপ্তানিতে আগের বছরের একই সময়ের চেয়ে ৪১.৬ শতাংশ প্রবৃদ্ধি হয়েছে। ওই মাসে দেশটিতে ৬১৩.৯১ মিলিয়ন মার্কিন ডলার মূল্যের পোশাক রপ্তানি করেছে বাংলাদেশ। আগের বছরের একই সময়ে যা ছিল ৪৩৩.৫৬ মিলিয়ন ডলার।

গত বছরের নভেম্বরে পোশাক রপ্তানি প্রবৃদ্ধি ছিল বছরের অন্য যেকোনো মাসের চেয়ে বেশি।

২০২৪ সালে যুক্তরাষ্ট্রে মোট পোশাক রপ্তানিতে প্রবৃদ্ধির পরও ২০২৩ সালের বেশিরভাগ মাসের তুলনায়ই তা কম ছিল।

ইউএস ডিপার্টমেন্ট অব কমার্সের আওতাধীন অফিস অব টেক্সটাইল অ্যান্ড অ্যাপারেলের (অটেক্সা) তথ্য অনুযায়ী, গত বছরের শুরুতেই রপ্তানিতে ধাক্কা খায় বাংলাদেশের পোশাক খাত। ওই বছরের জানুয়ারিতে রপ্তানি প্রবৃদ্ধি কমে ৩৬.৭ শতাংশ। এর পর মার্চে প্রবৃদ্ধি কমে আরও ১৪.২ শতাংশ।

২০২৪ সালের এপ্রিল থেকে আগস্ট পর্যন্ত সময়ে রপ্তানি প্রবৃদ্ধির ব্যবধান ছিল সামান্য, ০.২ শতাংশ থেকে ৬.৮ শতাংশ।

তথ্য অনুযায়ী, বছরের শেষ প্রান্তিকে রপ্তানি প্রবৃদ্ধিতে গতি ফেরে। সেপ্টেম্বরে রপ্তানি প্রবৃদ্ধি ছিল ১৮.৪ শতাংশ ও অক্টোবরে ছিল ২৬.৭ শতাংশ।

তবে নভেম্বরে রেকর্ড পরিমাণ প্রবৃদ্ধির পরও ২০২৪ সালের জানুয়ারি থেকে নভেম্বর পর্যন্ত যুক্তরাষ্ট্রে পোশাক রপ্তানি ২০২৩ সালের একই সময়ের তুলনায় ০.৪৪ শতাংশ কম ছিল। যেখানে ২০২৩ সালের জানুয়ারি থেকে নভেম্বর পর্যন্ত রপ্তানি আয়ের পরিমাণ ছিল ৬.৭৯ বিলিয়ন মার্কিন ডলার, সেখানে গত বছরের একই সময়ে এটি ছিল ৬.৭৬ বিলিয়ন মার্কিন ডলার।

তৈরি পোশাকশিল্পের মালিকদের সংগঠন বিজিএমইএর পরিচালক মহিউদ্দিন রুবেল বলেন, ২০২৪ সালের সেপ্টেম্বর থেকে নভেম্বর পর্যন্ত বাংলাদেশ থেকে যুক্তরাষ্ট্রের আমদানিতে উল্লেখজনক বৃদ্ধি দেখেছি। তবে এ বিষয়টিও গুরুত্ব দিয়ে বিবেচনা করা উচিত যে ২০২৩ সালের নভেম্বরে আমদানির পরিমাণ অস্বাভাবিকভাবে কম ছিল।

ডেনিম এক্সপার্ট লিমিটেডের অতিরিক্ত এ ব্যবস্থাপনা পরিচালক আরও বলেন, সম্প্রতি রপ্তানি প্রবৃদ্ধি সত্ত্বেও সামগ্রিক প্রবৃদ্ধির দিক থেকে বাংলাদেশ অন্যান্য শীর্ষ উৎস দেশগুলোর চেয়ে এখনও পিছিয়ে রয়েছে।

আঞ্চলিক প্রতিযোগী দেশগুলোর চিত্র

অন্যদিকে একই সময়ে বাংলাদেশের অন্যতম প্রধান প্রতিদ্বন্দ্বী ভারতের পোশাক খাতের রপ্তানি প্রবৃদ্ধি ছিল ৪.৪৯ শতাংশ। একইসঙ্গে যুক্তরাষ্ট্রে ভারতের পোশাক রপ্তানি ১৩.২৬ শতাংশ বেড়েছে। ভারত স্থানীয় কাঁচামাল ব্যবহার করে প্রতিযোগিতামূলক মূল্যে আরও বেশি পোশাক রপ্তানি করতে পেরেছে।

অটেক্সার তথ্য অনুযায়ী, ২০২৪ সালের প্রথম ১১ মাসে বাংলাদেশ ২.১৭ বিলিয়ন বর্গমিটার সমপরিমাণ পোশাক যুক্তরাষ্ট্রে রপ্তানি করেছে। সে হিসাবে আগের বছরের ‍তুলনায় এটি ৩.৯৮ শতাংশ বেশি।

অন্যদিকে একই সময়ে ভারত রপ্তানি করেছে ১.২৭ বিলিয়ন বর্গমিটার সমপরিমাণ পোশাক, যার মূল্য ৪.৩৬ বিলিয়ন ডলার। আগের বছরের একই সময়ে এটি ছিল ১.১২ বিলিয়ন বর্গমিটার, যার মূল্য ছিল ৪.১৮ বিলিয়ন ডলার।

ভিয়েতনাম থেকেও যুক্তরাষ্ট্রে পোশাক রপ্তানি ৪.৪৮ শতাংশ বেড়েছে। গত বছরের জানুয়ারি থেকে নভেম্বরে দেশটি পোশাক রপ্তানি থেকে ১৩.৭৭ বিলিয়ন ডলার আয় করেছে। এর আগের বছরের একই সময়ে যা ছিল ১৩.১৮ বিলিয়ন ডলার। দেশটির রপ্তানির পরিমাণ ৯.০২ শতাংশ বেড়েছে।

তবে গত বছরের জানুয়ারি থেকে নভেম্বর পর্যন্ত সময়ে যুক্তরাষ্ট্রে চীনের পোশাক রপ্তানি থেকে আয় ০.৩০ শতাংশ কমেছে।

সার্বিকভাবে গত বছরের প্রথম ১১ মাসে যুক্তরাষ্ট্রের পোশাক আমদানির পরিমাণ ছিল ৭২.৯৪ বিলিয়ন ডলার। আগের বছরের একই সময়ের তুলনায় যা ০.৬৩ শতাংশ বেশি।

Apparel exports to US jump 41.6% in Nov 2024

POST BY
RMG Bangladesh
-

Bangladesh’s apparel exports to the United States, its largest single market, saw a remarkable 41.6% year-on-year growth in November 2024, reaching $613.91 million, up from $433.56 million in November 2023.

This surge marked the highest percentage increase of the year, highlighting Bangladesh’s growing competitive edge and strengthening its position in the US market during the crucial final quarter.

Despite this impressive growth, Bangladesh’s cumulative apparel exports to the US in 2024 were below 2023 levels for most months. The year began with sharp declines, including a 36.7% drop in January and a 14.2% decrease in March, according to data from the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce.

Between April and August 2024, the declines moderated, ranging from 0.2% to 6.8%, suggesting a gradual stabilisation in trade flows.

Recovery gained momentum in the final quarter, with September recording an 18.4% increase, followed by a robust 26.7% growth in October, culminating in November’s record-breaking performance, data shows.

Why US buyers still find Bangladesh among top apparel sources
However, despite the strong recovery, apparel exports to the US between January and November 2024 recorded a marginal 0.44% decline compared to the same period in 2023, with earnings standing at $6.76 billion, slightly lower than $6.79 billion in 2023.

How did regional competitors do?

In contrast, India, a key competitor, achieved a 4.49% growth in value and a notable 13.26% increase in the volume of apparel exports to the US during the same period. India shipped a higher volume of garments at competitive prices, benefiting from locally sourced raw materials.

According to OTEXA data, Bangladesh’s garment shipments to the US during the first 11 months of 2024 totalled 2.17 billion square meters, marking a 3.98% increase in volume.

On the other hand, India exported $4.36 billion worth of apparel and shipped 1.27 billion square meters during the same period, compared to $4.18 billion and 1.12 billion square meters in 2023.

Bangladesh RMG export to EU logs meagre growth amid price fall
Vietnam also recorded a 4.48% increase in apparel exports to the US, earning $13.77 billion during January-November of 2024, up from $13.18 billion in the same period of 2023. The country’s garment exports rose by 9.02% in volume, reaching 3.82 billion square meters.

Meanwhile, China experienced a slight 0.30% decline in apparel export value, generating $15.22 billion during the same period. However, China’s export volume increased by 5.50%, shipping 8.58 billion square meters of garments to the US.

Overall, US apparel imports totalled $72.94 billion in the first 11 months of 2024, reflecting a modest 0.63% increase compared to the same period in 2023.

Between January and November 2024, imports from Bangladesh to the US decreased by 0.46% in value terms, while the import volume increased by 3.95%. The unit price also declined by 4.24%, indicating that while Bangladesh maintained export volumes, lower pricing impacted revenue.

Former BGMEA director Mohiuddin Rubel told TBS that this trend may be attributed to competitive market pressures, product mix shifts, or raw material price adjustments.

“We observed robust increases in US imports from Bangladesh from September through November 2024. However, it’s important to consider that November 2023 had unusually low import levels,” he noted.

Exports grow 17.72% in Dec on robust RMG
Despite the recent recovery, Bangladesh continues to lag behind other top-sourcing countries in terms of overall growth, added Rubel, who is also the additional managing director of Denim Expert Ltd.

Brief on Bangladesh’s Selected Economic Indicators, December 2024

POST BY
RMG Bangladesh
-

The Bangladesh Bank’s December 2024 report highlights mixed trends in the country’s economic performance during FY25, indicating both recovery and challenges across various sectors.

Export Performance

BD Economic indicator
• Strong Export Growth: Export earnings rebounded with an 11.66% year-on-year growth during July-November FY25. Total exports reached USD 24.53 billion during July-December FY25, marking a 12.84% increase.
• RMG Sector Dominance: The Ready-Made Garments (RMG) sector led this growth with a 13.28% rise, earning USD 19.9 billion.

Import Trends

• Decline in Imports: Merchandise import LC settlements fell by 1.04% during July-November FY25, reflecting cautious import behaviour amid economic challenges.
• Drop in Capital Machinery Imports: Capital machinery LC settlements declined sharply by 21.62%, with garment and textile machinery imports falling by 8.95% and 18.11%, respectively.
• Textile Inputs Surge: In contrast, textile and fabric import LC settlements increased by 15.50%, supporting the RMG sector’s robust export performance.

Remittance and Forex Reserves

• Strong Remittance Growth: Remittance inflows surged by 27.56% to USD 13.78 billion during July-December FY25, providing great support to the economy.
• Foreign Exchange Reserves: According to BPM6, gross reserves stood at USD 21.36 billion as of December 31, 2024, ensuring a moderate cushion against external shocks.

Current Account and Fiscal Position

• Improved Current Account Balance: The current account deficit narrowed significantly to USD 752 million during July-October FY25, down from USD 3,160 million in the same period of FY24.
• Tax Revenue Challenges: NBR tax revenue collection declined by 1.03%, achieving only 21.10% of the FY25 target, indicating fiscal stress.

Inflation and Credit Growth

• Rising Inflation: Headline inflation increased to 11.38% in November 2024, up from 10.87% in October, reflecting persistent price pressures.
• Public Sector Credit Growth Decline: Public sector credit growth dropped to 14.37% in October 2024, compared to 20.69% in October 2023, signalling reduced government borrowing.

GDP Growth Projection

• Moderate Growth Outlook: GDP growth for FY2023-24 is projected at 5.82%, reflecting a recovery from global and domestic economic headwinds.

Key Insights

Export and Remittance Resilience: Strong export and remittance growth are the backbone of the economy, particularly driven by the RMG sector.
Import Contraction: Declines in capital machinery imports may indicate cautious investment sentiment, potentially impacting future industrial growth.
Fiscal and Inflationary Pressures: Rising inflation and falling tax revenues highlight challenges in maintaining fiscal discipline and managing living costs.
Improved External Balance: The narrowing current account deficit and stable reserves offer relief in external sector management.

RMG workers get paid two years after factory’s closure

POST BY
RMG Bangladesh
-

Workers of Chattogram-based factory Base Textile Limited, which had shut down two years ago, have finally received their overdue wages.

A total of 873 affected workers were paid after the Bangladesh Free Garment Workers Union Federation (BIGOF) secured Tk3.78 crore from a USA-based buyer to compensate the labourers, said the organisation’s President Chandan Kumar Dey.

He disclosed that a 20% commission was deducted for each settlement.

“Our organisation operates on workers’ contributions. We typically deduct 10% from settlements, but given the two years of effort we invested, we deducted 20% this time,” he said.

However, the workers have welcomed the initiative with extreme joy.

“I never thought I’d receive this money. After two years, I’ve finally received Tk 24,000 in dues. However, 20% of the amount was deducted,” said Selina Akhter, one of the workers who got paid.

The payments were distributed on Wednesday and Thursday at the Din Mohammad Community Center near the BIGOF office in the Pathantuli area in Chattogram.

Dey stated that another distribution programme would be arranged in 30 days to pay any workers who have been initially left out. The remaining funds, if any, will be returned to the buyers.

The distribution was organised without any involvement of the BGMEA and the Department of Labour, which raised some eyebrows.

When asked about their independent approach, Dey said, “We worked directly with the buyer company. While we should have informed the labour department, it wasn’t possible in this instance.”

Syed Nazrul Islam, former first vice president of BGMEA, said, “The workers protested while I was in office. Although we initiated efforts to resolve the issue, they remained incomplete. It is good to see the workers finally receiving their dues, though questions about the exact number of beneficiaries remain.”

Base Textile Limited began operations in 1998 in Mohra, Kalurghat, employing 2,870 workers. The factory closed in 2022 after failing to pay workers’ salaries and bonuses for a long time.

Bangladesh’s economy contracts slightly in Dec 2024: MCCI-PEB report

POST BY
RMG Bangladesh
-

Bangladesh’s economy witnessed a mild slowdown in December last year, with the purchasing managers’ index (PMI) dropping by 0.5 points from November to 61.7, according to a joint report by the Metropolitan Chamber of Commerce and Industry (MCCI) and Policy Exchange Bangladesh (PEB).
The contraction is attributed to reduced growth in the agriculture and services sectors, though manufacturing gained momentum and the construction sector expanded.

The manufacturing sector saw its fourth consecutive month of growth, driven by increases in new orders, exports, factory output and supplier deliveries.
Expansion in the agriculture sector, which maintaining growth for three consecutive months, was slower.

New business contracted, and business activity grew at a reduced rate. However, employment rebounded, and input costs rose at a faster pace, domestic media outlets said citing the report.

Despite challenges in many sectors, the report highlighted optimism, citing faster expansion in future business across manufacturing, construction and services.

Political instability and economic uncertainty remain significant hurdles, the report cautioned.

FILO launches ‘Capsule Collection’ bridging style and production

POST BY
RMG Bangladesh
-

63rd edition of FILO is set to unveil a groundbreaking initiative that takes innovation from concept to production. Introducing the Capsule Collection, this exclusive project translates the creative essence of Collages—the Dialoghi Creativi of Filo63 curated by Gianni Bologna, FILO’s Head of Style and Creativity—into tangible fabric prototypes.

February 2025 edition represents a milestone for FILO as it ventures into production, showcasing a collection of fabric prototypes in the Dialoghi Creativi area. This dedicated space highlights product research and development, from initial concepts to manufacturing processes.

From Concept to Fabric

Designed by fabric expert Rossano Bisio, the Capsule Collection brings to life the product development ideas proposed by Bologna in Collages. Using exhibitors’ yarns, the prototypes emphasize material quality while paying homage to Italy’s renowned manufacturing tradition.

Bisio explains “The goal is to transform FILO’s product development concepts—previously presented in descriptive and multimedia formats—into real fabrics that form part of a tangible collection. This approach leverages techniques emblematic of Italy’s exceptional textile heritage.”

An Industry-First Initiative

Paolo Monfermoso, Filo’s Manager, underscores the importance of this innovative step. “Today’s textile and apparel industry must underscore and fortify its technical expertise, which risks being overshadowed. With the FILO Capsule Collection, we aim to reverse this trend by introducing a first-of-its-kind project to the international exhibition landscape.”

Monfermoso highlights the collaborative spirit behind the initiative: “This project embodies Filo’s signature qualities—creativity, innovation, and collaboration. It has been made possible thanks to the active participation of all exhibition stakeholders, particularly our exhibitors.”

Reimagining Innovation for the Textile Industry

‘Capsule Collection’ offers more than just fabric samples; it serves as a resource for textile professionals, stimulating creativity and advancing innovation within the industry. By merging stylistic proposals with hands-on production, FILO redefines its role in the international textile landscape, offering a new model of collaboration and creative development.

As the FILO Capsule Collection debuts, it promises to set a new standard for product innovation and redefine the relationship between creativity and production in the textile world.

চাহিদা বেড়েছে তৈরি পোশাকের, নভেম্বর পর্যন্ত রপ্তানি প্রবৃদ্ধি ৬.৫%

POST BY
RMG Bangladesh
-

বড়দিন, নতুন বছর, শীত মৌসুম ঘিরে বিশ্ববাজারে ব্যাপক চাহিদা বেড়েছে বাংলাদেশের তৈরি পোশাকের। ইপিবির সবশেষ তথ্য বলছে, গেল বছরের তুলনায় এই নভেম্বর পর্যন্ত পোশাক রপ্তানির সার্বিক প্রবৃদ্ধি সাড়ে ছয় শতাংশ। শুধু নভেম্বরেই প্রবৃদ্ধি ১৬ শতাংশের বেশি। আগামীতে রেকর্ড রপ্তানি আয়ের প্রত্যাশা রপ্তানিকারকদের। অস্থিরতার মাঝেও রপ্তানি আয়ের এ প্রবৃদ্ধি দেশের জন্য ইতিবাচক বলছেন অর্থনীতিবিদরা।

দীর্ঘদিন ধরে দেশের শীর্ষ রপ্তানি খাতের নেতৃত্বে তৈরি পোশাক। ক্রেতাদের নানা শর্ত আর বিধিনিষেধ যেখানে সর্বদা ছায়ার মতো, সেই তৈরি পোশাক খাতে যেন পান থেকে চুন খসলেই উদ্বেগ বাড়ে ততো।

দেশ যখনই উত্তাল হয়, তখনই কমে তৈরি পোশাক রপ্তানি। তবে ভিন্নতা দেখা গেছে জুলাই-আগস্টে বৈষম্যবিরোধী আন্দোলনের সময়। এসময় কমেনি বরং বেড়েছে তৈরি পোশাক রপ্তানি। তবে বড়দিন ও নতুন বছরে কী পরিমাণ পোশাক রপ্তানি হয়েছে সে তথ্য না পাওয়া গেলেও সার্বিকভাবে প্রবৃদ্ধি হয়েছে।

ইপিবি বলছে, গেল বছরের তুলনায় চলতি বছরের নভেম্বর পর্যন্ত পোশাক রপ্তানির সার্বিক প্রবৃদ্ধি প্রায় সাড়ে ছয় শতাংশ । অঙ্কে যা ২০৩ কোটি ডলারের বেশি। আর অর্থবছরের হিসাবে চলতি অর্থবছরের প্রথম পাঁচ মাসে প্রবৃদ্ধি হয়েছে ১২ শতাংশের বেশি । আর মাসের হিসাবে গেল বছরের তুলনায় ২০২৪ সালের প্রতি মাসেই বেড়েছে পোশাক রপ্তানি।

রাজনৈতিক অস্থিরতা, শিল্পাঞ্চলে একের পর এক শ্রমিক বিক্ষোভ, এই খাতে উৎপাদন কমার মাঝেও রপ্তানি আয়ের এমন নজির কমই দেখা গেছে। তবে রপ্তানি প্রবৃদ্ধি ধরে রাখতে সামগ্রিক স্থিতিশীলতা প্রয়োজন বলে মনে করেন ব্যবসায়ীরা।

রাইজিং গ্রুপের ব্যবস্থাপনা পরিচালক মাহমুদ হাসান খান বাবু বলেন, ‘যে বায়াররা আমাদের এখানে বছরের পর বছর কাজ করছে, চাইলেই রাতারাতি তারা অন্য কোথায় চলে যায় না এবং যেতে পারে না। কিন্তু রিপিটেডলি তারা আমাদের সতর্ক করেছে যে এই ধরনের যদি আনরুলি সিচুয়েশন বজায় থাকে তাহলে অন্য জায়গায় খুঁজবে।’

বিজিএমইএ সহায়ক কমিটির সদস্য মো. শিহাব উদ্দোজা চৌধুরী বলেন, ‘বাংলাদেশে কখন নির্বাচন হবে এবং নির্বাচন পূর্ববর্তী কোনো সহিংসতা আবার হয় কি না এবং এখানে অর্ডার প্লেস করার পর আমরা সঠিক সময়ে পণ্যগুলো অর্ডার শিপমেন্ট করতে পারবে কি না, সে ধরনের শঙ্কার মধ্যে বায়াররা আছে।’

মূলত তৈরি পোশাকের ক্রয়াদেশ চার থেকে পাঁচ মাস হাতে রেখেই দিয়ে থাকেন ক্রেতারা। সে হিসেবে আগামী বসন্ত ও গ্রীষ্মকালে ভালো ফরমায়েশ পেয়েছেন ব্যবসায়ীরা। তাই ভবিষ্যতের ক্রয়াদেশ নিয়েও আশাবাদী রপ্তানিকারকরা।

তৈরি পোশাকের সবচেয়ে বেশি ক্রয়াদেশ আসে শীত মৌসুমে। একই সময় খ্রিষ্ট সম্প্রদায়ের বড়দিন আর নতুন বছর ঘিরে, আদেশে বাড়তি মাত্রা যোগ করে। তবে এ বছর ৫ আগস্ট পরবর্তী শ্রমিক অসন্তোষ, রাজনৈতিক পট পরিবর্তনের ফলে ক্রয়াদেশ ঠিকঠাক থাকলেও মূলত বেগ পেতে হয়েছিল পণ্য শিপমেন্টে।

রাইজিং গ্রুপের ব্যবস্থাপনা পরিচালক মাহমুদ হাসান খান বাবু বলেন, ‘জুলাই বিপ্লবের সময় আমরা কিছুদিন কাজ করতে পারিনি। কিন্তু পরবর্তীকালে আমরা অতিরিক্ত কাজ করে বা এয়ারে হলেও আমরা শিপমেন্ট করতে পারছি। ক্রিসমাস বা নিউ ইয়ারে নট ন্যাসেসারি যে সবসময় ফ্যাসনের আইটেম বিক্রি হয়। এখানে কিছু বেসিক আইটেমও বিক্রি হয়। সেজন্য বায়ারের সেলফ যদি খালি হয়ে যায় তখন তারা আমাদের অর্ডার দিবে।’

বিজিএমইএ সহায়ক কমিটির সদস্য মো. শিহাব উদ্দোজা চৌধুরী বলেন, ‘গতবছরের আগের বছরের নভেম্বরের সাথে যদি এই বছরের নভেম্বরের তুলনা করা হয় তাহলে সেটা ১০ শতাংশ গ্রোথ। এক বিলিয়ন ডলারের মতো পণ্য আমরা সঠিক সময়ে রপ্তানি করতে পারিনি। এই পণ্যগুলো আমরা পরে ডিসকাউন্ট এবং এয়ারে করে বায়ারদের কাছে পৌঁছাতে বাধ্য হয়েছি।’

দেশে যতবড় রাজনৈতিক পরিবর্তন হয়েছে ততবড় বাণিজ্যিক সংকট তৈরি হয়নি বলে মনে করছেন অর্থনীতিবিদরা। পোশাক উৎপাদনের সক্ষমতায় বাংলাদেশ অন্য দেশের তুলনায় এগিয়ে থাকায় ক্রয়াদেশ আরও বৃদ্ধি পাবে বলে মনে করেন তারা।

অর্থনীতিবিদ ড. আব্দুর রাজ্জাক বলেন, ‘কেউ কেউ ভয় পেয়েছে যে, হয়তো আরও সশয় লাগবে ব্যবসা-বাণিজ্যে আস্থা ফিরে আসতে। কিন্তু অসম্ভব ভালোভাবে কিন্তু উন্নত হয়েছে। পৃথিবীর যেকোনো দেশের সঙ্গে আমাদের গার্মেন্টেসের দাম চিন্তা করলে ২০ থেকে ৩০ শতাংশ কম দামে আমাদের পণ্য বিক্রি হয়। কারণ যারা রপ্তানিকারক আছে তারা বলছেন যে, তারা দেখেছেন অর্ডারটা বেড়েছে। সামনের মাসগুলোতে আমরা দেখবো তৈরি পোশাকে রপ্তানি আরও বাড়বে।’

রপ্তানি আয়ের এ প্রবৃদ্ধি অব্যাহত রাখতে ক্রেতাদের আস্থা ফেরানোর পাশাপাশি দেশে রাজনৈতিক স্থিতিশীলতা দরকার বলে মনে করেন সংশ্লিষ্টরা।

123...1,200Page 2 of 1,200

RMG BANGLADESH NEWS

RMG BANGLADESH
A Knowledge-based Initiative of Best Sourcing
Ready Made Garments sector is the key source of foreign currency and GDP for Bangladesh. Approximately 4.2 million people are dependent on the RMG sector for their bread and butter.
Contact us: info@rmgcentre.com
Facebook RSS Twitter Youtube

EVEN MORE NEWS

POPULAR CATEGORY

© Copyright 2019 - RMG Bangladesh