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Regenerative organic farming to create a sustainable textile trend

POST BY
RMG Bangladesh
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The list of sustainability terms continues to grow, thanks in part to retail companies and their marketing messages. The big one dominating today is regenerative agriculture paving the way towards sustainable textile industry.

Regenerative organic farming to create a sustainable textile trend

Regenerative organic farming/ agriculture

8% of greenhouse gas emissions worldwide are attributed to the garment sector, which mostly uses hard coal and natural gas to produce heat and power. By 2030, the industry’s greenhouse gas (GHG) emissions are predicted to increase by over 50% if no substantial improvements are made. More than 100% of the yearly CO2 emissions worldwide might be stored in the soil if farmers can increase soil health using regenerative agriculture techniques, according to recent statistics from the Rodale Institute. That equates to about 52 gigatonnes of CO2 annually.

Regenerative organic farming/agriculture is a term that rose to prominence in the 1980s, and generally refers to a rehab-focused approach to farming and food systems that aims to improve the longterm health of the soil, rather than degrading it. The purpose of Regenerative Agriculture is that farmers promote healthy soil practices and biodiversity including low or no tilling, planting cover crops, managing fertilizer use, and improving nutrient management.

Regenerative organic farming/ agriculture towards sustainability

In the scale from net zero to net positive, regenerative agriculture leans towards the net positive end. While achieving carbon neutrality involves balancing emissions with removals, regenerative practices actively contribute to carbon sequestration and storage in the soil. It is estimated that farming currently accounts for about one-quarter of all greenhouse gas emissions and erodes 24 Billion tonnes of topsoil a year. Moreover, the farming concept is attracting investors at a time when venture capital is increasingly difficult to come by.

Figure: Regenerative farming can create a sustainable alternative by finding an alternative source via reducing carbon emission and sustainable skeleton building towards holistic supply chain.

Because of its chemical-intensive procedures and resource-intensive processes, the textile sector is one of the biggest worldwide pollutants. Regenerative agriculture, on the other hand, provides a fix for this issue. Textile producers may lessen their carbon impact and support responsible land management by obtaining their raw materials from regenerative farms.

Wool is a good competitor for sustainable apparel that lasts customers decades, which is explained by another issue. However, traditional wool production is still not climate-friendly since, over a 100-year period, sheep release methane gas, which has a potency 28–36 times greater than that of CO2. Set stock grazing, which involves keeping animals in the same paddocks for extended periods of time and can cause desertification, biodiversity loss, and soil erosion, is a common practice in conventional wool farming. Regenerative wool may be able to absorb carbon from the environment and lessen the consequences of climate change, according to studies. To completely grasp the potential of regenerative wool to lower emissions, further thorough scientific investigation is necessary.

Regenerative organic cotton farming methods are being incorporated into supply chains by a few fashion designers. While organic and regenerative cotton farming both aim to grow crops without the use of synthetic pesticides, chemicals, or fertilizers, regenerative farming goes a step further and incorporates environmental restoration techniques. In general, both types of cotton are better for the environment than conventional cotton.

Regenerative agriculture shows up as a ray of hope for sustainability and constructive development when we consider the future of the textile sector. Brands may improve their supply chains and make a positive impact on the environment by using circular practices and regenerative sourcing. By supporting companies that use regenerative fabrics, we as customers can accelerate this transition. Let’s set out on this path together to create a more sustainable, ethical, and regenerative fashion industry.

Bangladesh RMG industry: beyond bond & BBLC – new financial paths needed

POST BY
RMG Bangladesh
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In these challenging times, I want to remind everyone of the importance of nurturing care, brotherhood, and genuine relationships. True unity doesn’t come from speeches, discussions, or videos—it comes from the deep, sincere connections we build with each other. May Allah make us people of true unity, removing artificiality and hypocrisy from our relationships, and replacing them with the strongest, most genuine ties.

Figure: Bangladesh RMG industry-beyond bond & BBLC – new financial paths needed.

I’ve walked a difficult path myself, especially during the caretaker government from 2006 to 2008, where I faced immense challenges with little support. Now, as we navigate the current turmoil, I urge those who have the means to be kind to those genuinely in need. My experience has shown me that political transitions often bring pressures that can overwhelm even the strongest businesses. The coming months and years may test us further, and I pray that Allah keeps us strong to face these challenges.

As someone who has witnessed the industry’s growth since childhood, experiencing its black and white sides, good times, and bad times, I believe it is imperative to research and implement alternatives to bond and BBLC facilities. The RMG sector is no longer just an industry; it is the lifeline for the livelihood and bread and butter of directly and indirectly 50 million people in this country, with many more relying on it in the future. No other sector can create such employment opportunities.

Therefore, we must think critically and secure not only the industry but also the future employment of our next generation. Today, I would like to share my thoughts on the past, present, and future of bond and BBLC policies. These policies have played a significant role in making this industry the second-largest exporter in the world, the highest employment sector, and the source of 82% of foreign earnings for the country.

Despite enduring immense challenges and pain over the past eight years, my love for the garment industry remains unwavering. From the struggles of 2008-2009 to recent betrayals, I’ve faced it all without bitterness. Even when support was absent, I continued to share good news and uplift others. The current crisis has only deepened my resolve to highlight the contributions of everyone in our community. Seeing your success fills me with pride and motivates me to share my experiences with the new generation.

This is a long discussion, so I have decided to publish it in parts. I am excited to share the first part of this article with you, our RMG textile students, employees, and owners. I also extend my thanks to Textile Today for providing a platform to share my thoughts.

The journey of the Bangladesh garment industry

The journey of the Bangladesh garment industry has been marked by remarkable milestones and significant challenges. Before delving into the role of BBLC and bonded warehouse facilities, it is essential to understand the industry’s early export processes and the transformation it underwent.

The early days: before bond and BBLC facilities

Back in 1978, when there were no facilities like BBLC and bonded warehouses, the first exports were achieved under challenging circumstances. Here are some notable milestones:

  • First export by Reaz Garments Ltd (1978)
    • Year: July-August 1978
    • Quantity: 10,000 pcs
    • Items: Men’s Shirts
    • Destination: France
    • Value: FF 130,000
    • Buyer: Hollander France (Country’s First Buyer)
    • Significance: Bangladesh RMG’s First Export
  • Second export (1979)
    • Quantity: 7,820 pcs
    • Value: US$ 5,610
    • Items: Ladies Blouse
    • Destination: USA
    • Buyer: Lloyds Mercantile Corp, NY
  • Third export by Reaz Garments Ltd (1979)
    • Quantity: 90,000 pcs
    • Value: FF 1,314,000 (BDT 8 million)
    • Items: Men’s Shirts
    • Destination: France
    • Buyer: Branbilla Cogros SA

During these initial exports by Reaz Garments Ltd, the process was cumbersome. Exporters had to submit the LC (Letter of Credit) to Bangladesh Bank, which would then issue an IMP (Import Permit) in favor of the exporter. Following this, fabric and trim LCs were opened with bank financing for a short period. Once the raw materials were shipped, exporters needed to submit shipping documents and obtain permissions from the Ministry of Textiles. At that time, all raw materials, including fabrics and cartons, were imported from Japan. This process was facilitated by supportive bureaucrats, bankers, and officials from the Ministry of Textiles, who recognized the vision of pioneering entrepreneurs.

There are a lot of names, but some notable figures who supported this process include:

  • Customs: Soiab Ahamed (before and after bond, past NBR Chairman and caretaker government advisor)
  • Customs:  Fakir Asraf (after bond)
  • Banker: Hayatur Rahaman (Was MD of Janata Bank, DGM in 1978)
  • Banker: Shajan Kabir (after 1980, founder of EXIM Bank)
  • Ministry of Textiles: Late Idrish Ali
  • CCI: Chakkam Babu

These individuals truly saw the vision of entrepreneurs who aimed to export their products and helped turn that dream into reality.

The transformation: introduction of BBLC and bonded warehouse facilities

In the late 1980s, the garment industry in Bangladesh was on the verge of an industrial transformation. The legendary Nurul Quader played a pivotal role in this transformation. By forming a joint venture with Daewoo of Korea, he initiated the first industrial revolution in the RMG sector. A visionary and freedom fighter, Nurul Quader leveraged his bureaucratic influence to innovate and convince the government to implement the policies of BBLC and bonded warehouses. This breakthrough laid the foundation for the industry’s rapid growth and development, ultimately making Bangladesh the world’s second-largest garment manufacturer.

While neighboring countries are increasing their exports by offering various facilities such as free land, 40% subsidies on electricity, and 50% subsidies on wages, we face numerous obstacles. Historically, dishonest traders exploited bond benefits during importation and engaged in BBLC (Back-to-Back Letter of Credit) encasement practices, tarnishing our image with banks and the NBR (National Board of Revenue). Although these practices have significantly decreased, their legacy still impacts government-level policymaking. This has hindered our ability to fully leverage beneficial policies that could otherwise enhance our industry’s growth.

To be continued…

In the following parts, I will delve deeper into the complexities and current challenges of the BBLC and bonded warehouse policies. I will also propose innovative financial management strategies, drawing on insights from successful garments industry owners and leaders, to help sustain and propel the future growth of Bangladesh’s garment industry.

পোশাক খাতের প্রণোদনা উঠিয়ে নেয়া; অর্থনীতিবিদরা ইতিবাচক দেখলেও ঘোর আপত্তি রপ্তানিকারকদের

POST BY
RMG Bangladesh
-

৪০ বছর পার করা তৈরি পোশাক খাত থেকে প্রণোদনা উঠিয়ে নেয়াকে ইতিবাচকভাবে দেখছেন অনেক অর্থনীতিবিদ। প্রতিষ্ঠিত খাতকে অব্যাহতভাবে নগদ প্রণোদনা না দিয়ে পিছিয়ে পড়া কিংবা নতুন শিল্পকে এগিয়ে নিতে প্রণোদনায় বৈচিত্র্য আনার পরামর্শ তাদের। যদিও রপ্তানিকারকদের মধ্যে রয়েছে তীব্র প্রতিক্রিয়া। সুবিধা হারিয়ে তাদের শঙ্কা, এতে রপ্তানি যেমন কমবে, তেমনি নতুন উদ্যোক্তা ও বাজার হারাতে পারে বাংলাদেশ।

তৈরি পোশাক শিল্প রপ্তানিতে যেমন শীর্ষে তেমনি প্রণোদনা প্রাপ্তির ক্ষেত্রেও শীর্ষস্থানে তৈরি পোশাক। বাজেটে বরাদ্দ তালিকার অগ্রভাগেও এই খাত। চলতি অর্থবছরে রপ্তানি ও রেমিট্যান্স প্রণোদনা বাবদ ১৫ হাজার ২২৫ কোটি টাকা বরাদ্দ থাকলেও এর প্রায় ৭০ শতাংশ বা ১১ হাজার ২২৫ কোটি টাকা পান পোশাক রপ্তানিকারকরা।

এমন সব সুবিধা নিয়েই চার দশক পার করেছে পোশাক শিল্প। এই সময়ে তৈরি পোশাক শিল্পে আকার যেমন বেড়েছে তেমনি বেড়েছে বিনিয়োগ। সেইসাথে বেড়েছে রপ্তানি, এগিয়েছে দেশ। তবে, চলতি বছরের জানুয়ারি থেকে নগদ প্রণোদনা কমানোর সিদ্ধান্তের পর থেকে ক্ষতির মুখে পড়েছে এ খাত। শুল্ক বন্ড ও ডিউটি ড্র-ব্যাক এর পরিবর্তে পোশাক মালিকরা যে বিকল্প নগদ সহায়তা পেয়ে থাকেন সেই হার চার শতাংশ থেকে কমিয়ে আনা হয়েছে মাত্র দেড় শতাংশে। যা সবচেয়ে বেশি প্রভাবিত করছে তৈরি পোশাক রপ্তানিকারকদের।

বিকেএমইএ নির্বাহী সভাপতি মোহাম্মদ হাতেম বলেন, ‘এই ইন্ডাস্ট্রিটা আমদানি নির্ভর একটা রপ্তানি শিল্পে পরিণত হবে। তাহলে বিদেশি রিজার্ভ কমবে, ডলার সংকট আরও বাড়বে। নগদ সহায়তার যে সিদ্ধান্তটা এখন দেয়া হয়েছে, এটা এখন না করে আপনারা ২০২৬ সালে যান। ২০২৬ সালের পরও কিন্তু এটা তিন বছর পাওয়া যাবে। তাহলে আমরা কি এতোই সাফিসিয়েন্ট হয়ে গেছি যে, আমাদের এগুলো সুবিধা নেয়ার প্রয়োজন নেই।’

বিটিএমএ সভাপতি মোহাম্মদ আলী খোকন বলেন, ‘আমাদের যে অবস্থা এতে করে আমাদের মনে হয় ২০২৬ সালে সিদ্ধান্ত নেয়া কঠিন হয়ে যাবে। আমরা যারা একবার উদ্যোক্তা হয়েছি, আমাদের সেলসম্যান বানাইয়েন না। আমরা অন্যের পণ্য বাজারে এনে বিক্রি করে ভাত খাবো। বাংলাদেশ মধ্যম আয়ের দেশ হতে যাচ্ছে। আমরা যে ভেসেলে উঠেছি সে শিপ থেকে আমাদের যে নামানোর জন্য যারা ষড়যন্ত্র করছে, এই সমস্ত পলিসির জন্য আমাদের সে শিপ থেকে নামতে হবে। এটা হবে আমাদের জন্য দুঃখজনক ঘটনা।’

পণ্য রপ্তানিতে ভর্তুকি থেকে বেরিয়ে আসতে পাঁচ মাসের ব্যবধানে গেল ৩০ জুনের প্রজ্ঞাপনে এবার খাতভেদে নগদ সহায়তা কমবে সর্বোচ্চ পাঁচ শতাংশ পর্যন্ত। আর পোশাক কারখানার নগদ সহায়তা কমবে সর্বোচ্চ ৩ দশমিক ২ শতাংশ। ইউরো অঞ্চলে পোশাক রপ্তানিতে বিশেষ সহায়তা এক শতাংশ থেকে কমিয়ে করা হয়েছে দশমিক ৫ শতাংশ। ক্ষুদ্র ও মাঝারি কারখানার রপ্তানি প্রণোদনা এক থেকে কমিয়ে তিন শতাংশ, নতুন বাজারে প্রণোদনা তিন থেকে কমে দুই শতাংশ, আর রপ্তানিতে বিশেষ নগদ সহায়তা দশমিক ৫ শতাংশ থেকে কমিয়ে করা হয়েছে দশমিক ৩ শতাংশ।

তবে, সবচেয়ে ক্ষতির মুখে পড়বে ব্যাকওয়ার্ড লিঙ্কেজ শিল্প। যেখানে কমবে দেশিয় কাঁচামাল ব্যবহার করে পোশাক উৎপাদন। কেননা দেশিয় কাঁচামাল কিংবা দেশি সুতা ব্যবহার করে উৎপাদিত পোশাক নতুন বাজারে রপ্তানি করলে যে পাঁচ শতাংশ নগদ সহায়তা দেওয়া হতো তা কমিয়ে আনা হয়েছে তিন দশমিক পাঁচ শতাংশে। রপ্তানিকারকেরা বলছেন, একদিকে ব্যবসার খরচ বাড়ছে, অন্যদিকে প্রণোদনা কমছে। এতে পণ্য রপ্তানিতে দেশিয় কারখানাগুলোর প্রতিযোগিতা সক্ষমতা কমবে।

মোহাম্মদ হাতেম বলেন, ‘এখনকার যে ইনসেন্টিভের হিসাবটা দেয়া হয়েছে সুতার দামের যে পার্থক্যটুকু আছে সেটুকুই যদি আমি আমলে নেই তাহলে কিন্তু আমি লোকাল সুতা কিনবো না। এতে করে আমার দেশের সুতা কারখানা বন্ধ হলে লাভ হবে ভারতের, কারণ সুতার বাজার তখন ভারতের বাজারে পরিণত হবে। বিকল্প কোনোকিছু না ভেবে অর্থ মন্ত্রণালয় এবং বাংলাদেশ ব্যাংক এই যে ইনসেন্টিভটা এখন কমিয়ে দিলো, এখনই বিদায় করে দেয়ার ব্যবস্থা করবো, কারণটা কী?’

মোহাম্মদ আলী খোকন বলেন, ‘আমার দেশিয় সুতার কাপড় কেনার জন্য সে প্রণোদনাটা পায়। আসলে আমদানির ওপর পায় না তারা। যখন কেউ প্রণোদনা পাবে না, তখন বাইরের কাপড় আমদানি করবে, স্থানীয় কাপড় তারা কিনবে না। ডলার নেই বলা হচ্ছে কিন্তু স্থানীয় শিল্পগুলো বন্ধ হয়ে গেলে ডলার সংকট আরও তীব্র হবে।’

প্রতিষ্ঠিত খাতকে অব্যাহতভাবে নগদ প্রণোদনা না দিয়ে পিছিয়ে পড়া কিংবা নতুন শিল্পকে এগিয়ে নিতে প্রণোদনায় বৈচিত্র্য আনার কথা বলছেন অর্থনীতিবিদরা। নতুন বিনিয়োগ আসবে এমন খাতে সহায়তা বাড়ানোর পরামর্শ তাদের।

অর্থনীতিবিদ এবং বাংলাদেশের পলিসি রিসার্চ ইনস্টিটিউটের পরিচালক আহসান এইচ মনসুর বলেন, ‘প্রণোদনার উদ্দেশ্য হচ্ছে বিনিয়োগ বাড়ানো, নতুন কিছু নিয়ে আসা। সেজন্য আমি এই টাকাটা খরচ করবো। কিন্তু যারা ২০ বছর ধরে আছে তাদের আবার দিতে যাবো কেন? তারা তো প্রতিষ্ঠিত। তারা ২০ বছরে যদি স্থান অর্জন করতে না পারে তাহলে আর কোনোদিন পারবে না।’

আহসান এইচ মনসুর বলেন, ‘আরএমজি খাতে তারা জানে কীভাবে ব্যবসা করতে হয়, কীভাবে টিকে থাকতে হয়। তাদের আর সাবসিডাইজ করার প্রয়োজন আছে বলে আমার মনে হয় না। উৎসাহ দেয়ার জন্য ম্যানমেইড ফাইবার যারা করতে তাদের আমরা তিন বছরের জন্য একটা প্রণোদনা দেয়া যায়।’

গত ৩০ জানুয়ারি হঠাৎ এক প্রজ্ঞাপনের মাধ্যমে রপ্তানি খাতে নগদ সহায়তা কমানোর ঘোষণা আসে। এলডিসি থেকে উত্তরণ পরবর্তী রপ্তানি খাতে চ্যালেঞ্জ মোকাবিলায় প্রণোদনা কমানোর সিদ্ধান্তে প্রথম ধাপে খাতভেদে নগদ সহায়তা ১০ শতাংশ পর্যন্ত কমানো হয়েছিল। এবার খাতভেদে নগদ সহায়তা কমবে সর্বোচ্চ ৫ শতাংশ পর্যন্ত।

সাধারণত কোনো খাতকে প্রতিযোগিতার সক্ষমতায় এগিয়ে নিতে কিংবা রপ্তানিতে উৎসাহ দিতে নির্দিষ্ট সময় পর্যন্ত প্রণোদনা দেয়া হয়। তাই, ৪০ বছর পার করা পরিণত তৈরি পোশাক খাত থেকে যে প্রণোদনা উঠিয়ে নেয়া হচ্ছে তাকে ইতিবাচকভাবে দেখছেন অনেক অর্থনীতিবিদ। যদিও রপ্তানিকারকদের মধ্যে রয়েছে তীব্র প্রতিক্রিয়া। তারা বলছেন, এতে রপ্তানি যেমন কমবে তেমনি নতুন উদ্যোক্তা, নতুন বাজার তৈরি, পণ্যের বৈচিত্র্য কমার পাশাপাশি দেশিয় কাঁচামাল দিয়ে পোশাক তৈরি বন্ধ হওয়ার উপক্রম হবে। তাই শীর্ষ এ রপ্তানি খাতকে এখনই সংকুচিত না করে আন্তর্জাতিক বাজারের চাহিদা বিবেচনায় সম্ভাবনাময় ম্যানমেইড ফাইবারে বিনিয়োগের পাশাপাশি নীতিসহায়তার পরামর্শ সংশ্লিষ্টদের।

এমএসআরএস

BGMEA members demand resignation of its president and Board

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RMG Bangladesh
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A group of BGMEA members on Monday demanded resignation of its current president, SM Mannan Kochi, and his board of directors due to their controversial roles during the recent students’ quota reforms movement.

They also alleged that the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) failed to provide proper directives to its members who faced difficulties operating during the movement and especially after the turmoil stemming from the government change.

They placed the demand at a press conference held under the banner of “General Members of BGMEA” at a hotel in the capital on Tuesday.

Inamul Haq Khan Bablu, a former BGMEA director, alleged that the current board, led by Mr. Kochi, took charge of the trade body through vote rigging and a fraudulent voters list.

He also alleged that Awami League MP Salam Murshedy, Industry and Commerce Affairs Secretary Siddiqur Rahman, and Dhaka North City Corporation Mayor Md Atiqul Islam were shamefully involved in vote rigging with their respective forces.

Bablu further claimed that President SM Mannan Kochi opened fire on students during their protest on August 4.

He also alleged that on August 7, a group of BGMEA members went to the BGMEA to submit a memorandum expressing no confidence in the existing board and demanding its dissolution.

But the current board, through a press statement, misrepresented the events of August 7 and condemned it, he said.

Bablu demanded immediate resignation and dissolution of the board and called for the appointment of an interim, non-political board to conduct a fair election with a fresh voter list.

Responding to a question about complaints regarding the election, Mesbah Uddin Ali, managing director of Wega Fashion Sweater Limited, said that they could not speak freely at that time due to fear of the previous regime.

However, he said they filed a writ petition regarding 400 fake voters, but the then attorney general allegedly supported the Sammilita Parishad panel.

The press conference ended abruptly when questions were raised about allegations that some attendees and members of the Forum panel had benefited from the previous regime.

RMG factories resume operations

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The majority of readymade garment (RMG) factories across various industrial hubs in the country have reopened, according to industry insiders.

The factory units remained closed for two consecutive days due to the ongoing student movement, which subsequently led to the resignation of Sheikh Hasina as prime minister and her fleeing the country.

Industry insiders reported that factories in major industrial hubs like Dhaka, Gazipur, Narayanganj, Savar, Ashulia, and Chittagong reopened on Wednesday. Although the number of open factories was low on that day, factories in Savar, Ashulia, and Narayanganj were declared closed shortly after operations began.

As of Wednesday, at least 95% of RMG factories had reopened, industry insiders said, noting that from next Saturday, the industrial hubs are expected to return to normal as the law and order situation improves after the interim government takes oath on Thursday night.

Speaking to the Dhaka Tribune, Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), stated that operations at the majority of the country’s factories have resumed.

“I hope by next Sunday, production at the factories will be in full swing as the interim government will take oath tonight and the police will return to their duties, which will accelerate the restoration of law and order and boost the confidence of both manufacturers and workers,” he added.

He also mentioned that on Wednesday, with some individuals vandalizing factories without any reason. He added that the army is providing protection currently.

Md Nasir Uddin, vice-president (finance) of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told the Dhaka Tribune that more than 95% of RMG sector factories in the major industrial hubs of the country are now operational.

“Factories in our major hubs, like Gazipur, Narayanganj, and Chittagong, are conducting their production activities. There were some issues at the factories in Savar and Ashulia on Wednesday, but normalcy has returned there as well,” he added.

He also said that the army is always responsive to their calls, which has boosted their confidence, and they expect that the police will join the army in restoring normalcy soon, helping to regain momentum in the industrial hubs.

Industry representatives stated that production has resumed in most RMG factories, including those in the BSCIC Industrial Estate in Narayanganj, with workers returning to their workplaces spontaneously.

However, in cases where there were incidents of vandalism, factory owners announced closures for safety reasons. At least 90% of the total garment factories in Narayanganj are in production, with workers back at work.

BGMEA Vice-President Nasir Uddin said that almost all garment factories in Chittagong have reopened, and the production process is running at normal speed as workers have returned.

He also emphasized that the RMG sector of Bangladesh is a family of at least 4 million workers, and they do not want factories to be closed for any reason.

RMG factories in the industrial areas of Konabari, Kaliakair of Gazipur, Savar, and Ashulia have reopened, and hundreds of workers have returned to work. However, according to sources, factories in Savar and Ashulia have yet to regain full momentum. Students from local educational institutions were seen guarding the factories.

On Wednesday, business leaders demanded the immediate restoration of law and order amid reports of looting and burning of factories.

At a press conference organized by the International Chamber of Commerce, Bangladesh (ICC-B), they also sought adequate assistance from the army to ensure the safety of their production units.

They welcomed the proposed formation of a new interim government led by Professor Muhammad Yunus.

A section of BGMEA members call for fresh election of the association

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A number of members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have called for the resignation of the current president, SM Mannan Kochi, and his board of directors. 

They described the March election as involving “unprecedented rigging” and are demanding a new election with a transparent voter list.

They made the demand at a press conference held under the banner of “General Members of BGMEA” at a hotel in the capital today.

They also alleged that the current president, who is the general secretary of the Dhaka Metropolitan North Awami League, fired on a crowd of students during the recent student movement. As a result, they argued that he should not be in charge of an organisation like the BGMEA.

Reading out a written statement, Inamul Haq Khan Bablu, a former BGMEA director, said, “As the BGMEA has been controlled by vested interests for many years, its normal functioning is now in question.”

“In the last BGMEA elections held on 9 March, SM Mannan Kochi came to power through unprecedented rigging and vote fraud with the help of his cadre forces,” he said, adding, “Former Member of Parliament Abdus Salam Murshedy, Awami League Secretary for Industry and Commerce Affairs Siddiqur Rahman, and Dhaka North City Corporation Mayor Atiqur Rahman assisted him.” 

The last BGMEA election was contested by two panels – “Sammilita Parishad” and “Forum”. The SM Mannan Kochi-led Sammilita Parishad won all 35 directorships, which was an unusual outcome.

However, after the election, the Forum panel did not make any complaints about election irregularities. 

Though the press conference was held under the banner of general members, it was primarily attended by members of the Forum panel.

In response to a question on why no complaint was made about the election, Mesbah Uddin Ali, managing director of Wega Fashion Sweater Ltd, said they could not say anything because of the fear of the previous regime. 

“Besides, before the election, when a writ was filed in the court regarding 400 fake voters, the then attorney general stood on behalf of them [Sammilita Parishad], and our petition was stayed and after which elections were held.”

He also alleged that there was bribery involved in obtaining utility declarations (UD) and claimed that the BGMEA’s arbitration committee is corrupt.

The press conference was abruptly ended when questions continued to arise on allegations that some of those present at the press conference, as well as some members of the “Forum” panel, received benefits from the previous regime.

RMG units back in full-swing production

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RMG Bangladesh
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Almost all apparel factories and accessory industries in the country resumed full-scale production on Thursday, hoping to meet shipment deadlines set by their buyers, which have already been delayed due to the recent unrest over the student movement.

However, while some textile mills have resumed production, others remain concerned about potential security threats from unknown outsiders, according to industry insiders.

On Thursday, apparel exporters also expressed concerns about the security of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) following an alleged hostile takeover attempt by the current board.

Later in the evening, the board met with Brigadier General Md Nazim-ud-Daula, director of military operations at the army headquarters, and other senior military officials to seek security support for their industrial zones.

Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Mahbubul Alam, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Executive President Mohammad Hatem, and BGMEA board members were present at the meeting.

BGMEA Director Shovon Islam told The Business Standard, “About 81% of factories were open on Thursday and operating at full capacity, especially in the Dhaka and Narayanganj zones.”

He added, “The presence of workers was over 90%.”

BGMEA Vice President Rakibul Alam Chowdhury told TBS that all apparel factories in Chattogram resumed production on Wednesday morning and managed to operate smoothly without issues.

EPZ factories also resumed full-scale production, as most are already behind schedule, said Syed M Tanvir, managing director of Pacific Jeans Ltd, the largest EPZ-based Bangladeshi exporter.

He noted that everyone is now working to meet their production targets, as buyers have extended shipment deadlines for the first round of general holidays.

Bangladesh Textile Mills Association President Mohammad Ali Khokon said over 80% of their mills were operational starting Thursday, with the rest set to open gradually due to a security threat.
 

Following a hostile takeover attempt by over 100 individuals led by forum panel leader Faisal Samad, apparel exporters have voiced concerns about the security of the BGMEA and the overall state of the garment industry.

Approximately 150 members raised their concerns during a meeting with BGMEA leaders at its Uttara office.

BGMEA’s acting president Khandoker Rafiqul Islam presided over the meeting, which was also attended by First Vice President Syed Nazrul Islam, vice presidents Arshad Jamal (Dipu), Md Nasir Uddin, Abdullah Hill Rakib, and other directors.

Earlier on Wednesday, Faisal Samad’s group submitted a memorandum to the current board, demanding its immediate resignation and the appointment of an interim, honest, efficient, and non-political board.

They expressed no confidence in the existing board due to their controversial roles during the recent quota-reform student movement.

In Thursday’s general meeting, members strongly condemned the recent incident at the BGMEA head office. They emphasised that, despite differing opinions, demands for reforms beyond established norms are unacceptable. Concerns were raised about the security of BGMEA, with warnings that repeated incidents could negatively affect foreign buyers’ perceptions of both the industry and the BGMEA.

Bangladesh once again second biggest global RMG exporter: WTO

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Bangladesh has retained the second position in global garment trade with 7.4 percent market share although the country’s exports, according to the World Trade Organisation (WTO), was $9 billion less than the estimates of the Export Promotion Bureau (EPB).

The WTO in its flagship “World Trade Statistics 2023” released on July 31 said Bangladesh exported garment items worth $38 billion in 2023, but the nation’s public overseas trade promotion council, EPB, mentioned the amount to be $47.38 billion.

However, the EPB later corrected the figure while Bangladesh Bank (BB) said the export figure was inflated, as the customs department of the National Board of Revenue (NBR) counted the amount twice.

Globally, China remained the top garment exporter worldwide with the shipping of $165 billion worth of apparel items, holding 31.6 percent of the global market share, according to the WTO.

Vietnam is in the third position by exporting $31 billion worth of garment items in 2023 and grabbed 6 percent global market share.

Turkey with $19 billion exports stood fourth with 3.6 percent market share while India becomes the fifth largest garment exporter as per the data from the WTO by exporting $15 billion garments in 2023 with 3 percent market share.

Indonesia with 1.6 percent of the global garment market share exported goods worth $8 billion in 2023.

In 2023, world trade in goods and commercial services fell on average by 2 percent to $30.5 trillion, on a balance of payments basis, the WTO said.

Trade in goods declined by 5 percent whereas services trade took an opposite trajectory, increasing by 9 percent.

As a result, the share of goods in global trade decreased from 77.8 percent in 2022 to 75.3 percent in 2023 while the share of services reached 24.7 percent, up from 22.2 percent.

The global supply chain experienced volatility last year because of the severe fallouts of Covid-19, Russia-Ukraine war, higher inflationary pressure on the western consumers, labour unrest demanding the wage hike for the garment workers, Red Sea crisis and exorbitant rise in freight charge.

Bangladesh retains the 2nd position in RMG export

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RMG Bangladesh
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As a single country, Bangladesh retained the second top position in the world in the export of ready-made garments in 2023 as well. Vietnam ranks third in exporting ready-made garments worth $7 billion less than Bangladesh. And as always, China is at the top.

This figure has emerged in the ‘World Trade Statistical Review 2023’ report of World Trade Organization (WTO). The report was published on the organization’s website last Thursday night. With this, for the third time in a row, Bangladesh showed the achievement of retaining the second position in the export of ready-made garments in the world market.

According to WTO statistics, last year Bangladesh exported garments worth $38 billion. In the previous year, i.e. in 2022, Bangladesh’s garment export amount was $45 billion. In other words, garment exports decreased by $7 billion compared to the previous year. Due to the decline in exports, there has been a change in the share of apparel exports in the world market. Last year, Bangladesh’s share in the world market stood at 7.38 percent. In 2022, Bangladesh’s share in global garment exports was 7.90 percent.

On the other hand, last year, China exported the highest $165 billion worth of ready-made garments to the world market. The previous year their export was $182 billion. That is, last year the export of clothing from China decreased by $17 billion. The country’s share also fell to 31.64 percent due to the decrease in exports. Vietnam, Bangladesh’s main competitor in garment exports, exported garments worth $31 billion last year. The country’s share in the world market is 5.96 percent.

The fourth and fifth largest exporters of ready-made garments in the world are Türkiye and India respectively. In 2023, Turkey exported $19 billion and India $15 billion of ready-made garments. In addition, Indonesia and Cambodia exported $8 billion worth of garments last year. On the other hand, the amount of exports of clothing made by the United States and Hong Kong is $7 billion.

Garment workers safeguard factories from vandalism and keep economic wheels moving

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RMG Bangladesh
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Despite the widespread movement for political transition in Bangladesh, there has been no devastating blow to the garment industry in Bangladesh except for some isolated incidents. It is a manifestation of the positive perception of the vast majority of people about the garment industry in Bangladesh.

Garment workers safeguard factories from vandalism and keep economic wheels moving
Figure: Despite the call for closure of factories, many garment factories continued their operations allowing workers to join work voluntarily. 

Apart from some isolated incidents, the garments factories as a whole have been saved from the destructive activities of miscreants mainly by the combined efforts of the garment industry owners and workers.

The general students and people of Bangladesh are well aware that the garment industry is one of the driving forces of Bangladesh’s economy. So the students and common people along with garment workers did not let the political transition movement affect the garment industry.

Since there was a possibility of damage, Bangladesh Garments Manufacturers and Exporters Association (BGMEA) and other organizations requested the owners to close all the garment factories across the country, considering the safety of the workers and the garment industry.

However, despite the call for closure of factories, many garment factories continued their operations allowing workers to join work voluntarily. Students and workers collectively tried to keep the wheels of the economy moving without interruption.

Also, because the garments were kept open, miscreants could not carry out much destructive activities in the factories. This is unprecedented in Bangladesh.

According to a business leader, workers have reported to work as usual in all sections of the factories. Nearby factories were also functioning without any issues.

The industrial police have also tried to provide security in general. Imran Ahmed, additional superintendent of industrial police-2 in Gazipur said, “We have increased vigilance and patrolling in important areas to ensure the safety of factories and workers. As a result, the situation in the industrial area was normal.

The Chief Production Officer (COO) of a reputed factory said that many workers have joined work since morning. Production is ongoing in all sections. Nearby factories are also working. There was no problem.”

However, many garment workers joined the movement along with the students and general people.

Notably, 48 young entrepreneurs from the garment and textile industries expressed solidarity with the students’ anti-discrimination movement.

“We, as members of the next-generation apparel business community of Bangladesh, expressing solidarity with the demand made by the people of Bangladesh,” according to a statement signed by the representatives of the business leaders.

However, a total of 67 factories were reportedly vandalized by isolated miscreants during the agitation. Among them, there are 45 factories in Gazipur, 15 in Narayanganj, five in Savar-Ashulia and other factories. In many places, the workers defended their factories.

Besides, many entrepreneurs have refrained from opening factories due to the law and order situation has not improved significantly yet.

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