Manufacturing activities at the readymade garments (RMG) factory units at major industrial hubs like Savar, Ashulia, Gazipur, and the capital have returned to normal despite sporadic incidents.

Although there were no reports of massive unrest in Ashulia, Gazipur, and Savar, 12 factories were declared closed in the aforementioned areas due to workers’ protests demanding arrears for some particular factories, or factories belonging to some industrial groups.

According to sources, 10 factories were declared closed in Gazipur.

Among them, factories of the Beximco Group were declared closed as workers protested, demanding their October wages and started attacking nearby factories to coerce workers to join them, which disrupted work activities at the area.

Moreover, two factories of Doreen Group (Doreen Apparels Ltd and Doreen Garments Ltd), Apparel 21 Ltd, and Shadhin Garments Ltd were closed in Gazipur areas under Section 13(1) of Bangladesh Labour Act, which enforces the rule of “no work, no pay”.

Moreover, five factories of TNZ Group were also closed under general holidays.

The workers of TNZ garment factory recently withdrew their 55-hour and another 3-4 hours blockade on the Dhaka-Mymensingh Highway after the authorities assured them of their overdue wages by November 30.

Meanwhile, according to a source of the BGMEA, the wages and allowances of the workers and staff of the five factories of TNZ Group have been cleared for the month of September on Thursday between 06:00PM-06:30 PM.

The decision to lift the blockade was taken at 10:30pm on Monday after a tripartite meeting among factory owners, worker representatives, and Secretary of the Ministry of Labour AHM Safiquzzaman.

As decided at the meeting, the government will provide a total of Tk16 crore as a loan to TNZ Apparels.

Of this amount, Tk6 crore will come from the central fund and will be used to pay the first installment of wages.

The remaining Tk10 crore will be provided by the Ministry of Finance, which will cover the remaining dues. The factory owners will later repay this amount to the government.

Moreover, the workers will be paid a regular salary from the factory’s own income from December.

Following the meeting, the workers accepted the decision and lifted  the blockade, allowing traffic to return to normal.

Meanwhile, Abdul Halim, a director of Basic Knitwear Limited of TNZ Group, was arrested and sent to jail for not paying wages to workers.

The judge ordered him to be sent to jail when he was produced in court from Basan police station on Wednesday afternoon.

In Savar and Ashulia, two RMG factory units were closed on Thursday where Saadatia Sweaters of Ashulia was on general holiday where Global Attire Ltd of Savar was closed under 13(1), said industry sources.

Meanwhile, no factory closures were reported in the Dhaka area on Thursday.

Moreover, during the protests, the Chittagong, Narayanganj, and Narsingdi area factories also witnessed zero factory closure incidents.

On Thursday, 99.50% of the 401 factories in Savar and Ashulia remained operational. In Gazipur, 98.85% of the 870 factories were functioning, and in the DMP area, 100% of 300 factories were operational.

Nationally, 99.43% of factories operated normally, or 2,077 out of 2,089.

Bangladesh’s spinning industry, a vital part of its textile and garment sector, has faced severe challenges over the past few years. As a crucial supplier to the country’s export-oriented garment industry, the survival of the spinning sector is essential for maintaining global competitiveness. The collapse of this industry would have serious repercussions, as garment manufacturers rely on locally sourced yarn to manage production costs and meet international lead times.

One key challenge for the garment industry is controlling the cost of yarn, which accounts for 60-70% of total production costs. Garment manufacturers prefer sourcing yarn locally to benefit from smaller inventories, quicker quality control responses, and easier payment terms. However, the significant price gap between local and international spinners pushes many Bangladeshi garment manufacturers to purchase yarn from abroad, weakening the domestic spinning sector.

The main reason for this price discrepancy is Bangladesh’s total dependence on imported cotton. Unlike major textile-producing countries like China, India, and Pakistan, which have access to locally grown cotton, Bangladeshi spinners rely entirely on imported raw materials. This dependence not only increases production costs but also limits the industry’s competitiveness globally. As a result, the spinning sector, instead of being a robust backward linkage industry, has become a financial liability.

Currency exchange rates further exacerbate the problem. While competitor countries buy cotton in their local currencies, Bangladeshi spinners must purchase cotton in foreign currencies, making it harder to predict profitability due to exchange rate fluctuations. Additionally, local spinners often have lower production efficiency and smaller output per spindle compared to international competitors, further straining the industry’s margins.

To overcome these challenges, the spinning industry needs to reduce its reliance on cotton by diversifying into blended yarn production. Blended yarns, such as cotton-polyester, cotton-viscose, and other synthetic fibers, could make up at least 50% of the industry’s production capacity. This shift would lower the industry’s overall production costs and enable it to compete more effectively with global players. Moreover, value-added yarns can support garment exporters in producing higher-quality, higher-priced products, enhancing Bangladesh’s reputation in the global market.

Government support is crucial for the survival of the spinning industry. One important step is imposing a 10-15% duty on imported yarn, which would help local spinners compete. Currently, garment exporters turn to Indian or Chinese yarn for its lower price for long lead-time orders. However, if the local spinning industry fails, Bangladeshi garment exporters will lose their ability to fulfill short lead-time orders, which are critical for maintaining competitiveness. At present, local spinners are incurring significant losses, and without government intervention, many spinning mills may be forced to shut down.

Upgrading technology is another essential step. Many Bangladeshi spinners still use outdated first-generation generators, which consume more gas than modern, fourth-generation generators. Upgrading these generators would reduce production costs by lowering gas consumption and making yarn production more efficient. Government funding or incentives could facilitate this much-needed technological upgrade.

In addition to technological improvements, Bangladesh must increase domestic cotton production. Currently, the country imports 97% of its cotton, requiring around 80-90 million bales annually. With the right policy support, Bangladesh could produce up to 20% of its cotton needs within the next five years. This would significantly reduce reliance on imports and lower the cost of raw materials for the spinning industry.

The government should urgently form a policy-making board involving all stakeholders in the spinning industry. This board would be responsible for developing long-term strategies to ensure the industry’s sustainability. Without a strong spinning sector, the garment export industry will struggle to survive, as it depends heavily on efficient and reliable backward linkages.