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Dyecol™ expects substantial growth in Bangladesh amidst strong competition

Dyecol™, a subsidiary of Shree Pushkar Chemicals & Fertilisers Ltd., continues to make strides in the chemical industry with its innovative solutions. Specializing in dyes and colorants, Dyecol™ is known for its commitment to quality, sustainability, and customer satisfaction. With cutting-edge research and development, the company consistently delivers vibrant and eco-friendly products tailored to meet diverse market needs. As a frontrunner in the sector, Dyecol™ remains dedicated to pushing boundaries and setting new standards for excellence.

In an interview with Textile Today Dr. N. N. Mahapatra, Business Head (Dyes), Dyecol™ shared his insights on dyes industry. He is also Consulting Editor of Textile Today.

Dyecol™ expects substantial growth in Bangladesh amidst strong competition
Figure: Dr. N. N. Mahapatra, Business Head (Dyes), Dyecol™.

Textile Today: How do you see the Bangladesh dyes market in the context of India and some other countries?

Dr. N. N. Mahapatra: Currently, we are exporting to the markets of Bangladesh and Turkey. The Bangladesh market is notably larger than the Turkish market. In terms of catering to brands and retailers serving Bangladeshi customers, they prioritize these relationships more than those in India. This preference may be attributed to factors such as quality and cost considerations. In my opinion, Bangladesh surpasses other countries in this regard, making it the top choice. Vietnam follows closely behind in terms of market preference.

Textile Today: So, in the last three months, there is less demand of dyes in global market. How much it affected the dyes manufacturers in India, China and other countries?

Dr. N. N. Mahapatra: In the dye markets, manufacturing levels naturally fluctuate depending on demand. External factors such as global conflicts, such as the conflict between Gaza and Israel and the Russian war against Ukraine, have certainly had an impact. Currently, no dyeing unit is operating at full capacity; most are running at around 70-80 percent capacity. Last year, the situation was even more subdued. However, there seems to be a noticeable improvement across the board, not just in Bangladesh but also in India. I anticipate that 2024 will be the optimal time for the dye market in terms of capacity utilization and production.

Textile Today: How many months do you think the demand will increase in the dyes market?

Dr. N. N. Mahapatra: I anticipate a pickup in the market after June of this year (2024). We expect an increase in requirements and higher demand. Consequently, I believe the overall global market will also see improvement.

Textile Today: Do you have any new plans of DyeCol in Bangladesh market, how do you think the Shree Pushkar Chemicals can grow in the Bangladesh market in the next coming 5 years?

Dr. N. N. Mahapatra: We have high expectations for the Bangladesh market. We entered this market for the first time in 2018, and since then, six years have passed. In this timeframe, our growth compares favorably to competitors who have been in the market for 20-25 years. Despite being newcomers, our total backward integration as a company gives us a significant advantage. We handle the entire raw material production process for reactive dyes in our factory, followed by the manufacturing of these dyes. Considering our cost-effectiveness, we see tremendous potential and opportunities in the Bangladesh market.

Textile Today: Are you happy with the growth of the market?

Dr. N. N. Mahapatra: As compared to the last 6 years, whatever we have achieved, I think that is a good volume. Also, the next 5 years, we are expecting that it will more than double.

Textile Today: You are one of the leading Vinyl Sulfone (VS) manufacturers in India which is the main raw material for the reactive dyes. What advantage will you get in the pricing of reactive dyes in Bangladesh?

Dr. N. N. Mahapatra: Rightly said that Vinyl Sulfone is the major raw material for reactive dyes. And we are now the largest manufacturer of VS dyes raw material in India. We are manufacturing about 900-1000 tons a month. So, we are one of the leading Vinyl Sulfone manufacturers in India. Also, besides that specialty in our Vinyl Sulfone is that it has a different root of manufacturing which gives us the least PCA (para chloro aniline) content. Which in the powder form is less than 50 ppm and if you dye on the fabric, it is less than 5 ppm that is non-detectable.

PCA, or para-chloroaniline, is a banned amine, and currently, all brands and retailers prioritize low PCA levels in dyed fabrics. One advantage we possess in manufacturing our Vinyl Sulfone dyes is evident in our blacks and navys, where the PCA content is significantly lower compared to our competitors. This stands as a distinct advantage of DyeCol dyes in the Bangladesh market.

Textile Today: Do you have specific plans for your competitors in Bangladesh?

Dr. N. N. Mahapatra: As mentioned earlier, maintaining low PCA levels gives us a competitive edge due to differences in our manufacturing facilities compared to our competitors. Additionally, within the next three months, we are expanding our production capacity for reactive dyes by adding another 600 tons to our current 400 tons, resulting in a total of 1000 tons per month. In the new unit, we will exclusively produce black and navy dyes, while the old unit will focus on reds, yellows, and blues. Our batch size will be 32 tons, the largest in India and globally. This increase in production capacity will make our black and navy dyes highly cost-effective, with minimal batch-to-batch and lot-to-lot variations, currently at only 10-10 tons. These improvements are poised to have a significant impact on the Bangladesh market. Therefore, I believe that within the next five years, Shree Pushkar will achieve a substantial sales volume in Bangladesh.

Textile Today: How do you position your company as a zero waste manufacturing company?

Dr. N. N. Mahapatra: We proudly define ourselves as a zero-waste manufacturing company because during the production of dye intermediates, we generate a significant amount of by-products known as spent acid. This mixture contains both organic and inorganic acids and is highly toxic. However, we undertake a purification process to reuse this acid in the production of fertilizers, primarily super phosphate fertilizer. This commitment to recycling and reusing materials distinguishes us from our competitors, as not all of them have such facilities. We take pride in declaring that Pushakr is a zero-waste manufacturing company. We ensure that nothing is discharged from our factory, and all our by-products are efficiently reused.

দেশে নতুন বিনিয়োগ: সৃষ্টি হবে দুই লাখ কর্মসংস্থান

বাংলাদেশ বিনিয়োগ উন্নয়ন কর্তৃপক্ষের (বিডা) আওতায় এ বছরের জানুয়ারি-মার্চ পর্যন্ত মোট ৩০২টি শিল্প প্রতিষ্ঠান নিবন্ধিত হয়েছে। এর মধ্যে ২৭০টিতে স্থানীয়, ১৮টিতে শতভাগ বিদেশি এবং ১৪টিতে যৌথ বিনিয়োগ রয়েছে। প্রতিষ্ঠানগুলোতে প্রস্তাবিত মোট বিনিয়োগের পরিমাণ ৩ লাখ ৩৮ হাজার ৬২ মিলিয়ন টাকা। এসব বিনিয়োগ দেশে মোট ২ লাখ ২২ হাজার ৮৬৬টি নতুন কর্মসংস্থান সৃষ্টি করবে।

গণমাধ্যমে পাঠানো এক সংবাদ বিজ্ঞপ্তিতে এসব তথ্য জানিয়েছে বিডা।

স্থানীয় বিনিয়োগ প্রস্তাব

স্থানীয় শিল্পখাতে প্রস্তাবিত মোট বিনিয়োগ ১ লাখ ৭৬ হাজার ৩৬৯ মিলিয়ন টাকার মধ্যে কৃষি শিল্পখাতে সর্বাধিক ৪০ হাজার ২৭৪ মিলিয়ন টাকা, পোশাক শিল্পে ৩৭ হাজার ৬৫৩ মিলিয়ন টাকা, রাসায়নিক শিল্পে ৩১ হাজার ১৭০ মিলিয়ন টাকা, প্রকৌশল শিল্পখাতে ২৩ হাজার ৪২৯ মিলিয়ন টাকা এবং মুদ্রণ ও প্রকাশনা শিল্পখাতে ১৯ হাজার ৯৩৩ মিলিয়ন টাকার বিনিয়োগ প্রস্তাব পাওয়া গেছে। প্রস্তাবিত এ বিনিয়োগের মাধ্যমে মোট ২ লাখ ১৮ হাজার ১৩১ জন মানুষের কর্মসংস্থানের সম্ভাবনা তৈরি হয়েছে।

বিদেশি বিনিয়োগ প্রস্তাব

বৈদেশিক শিল্পখাতে প্রস্তাবিত মোট বিনিয়োগ ১ লাখ ৬১ হাজার ৬৯৩ মিলিয়ন টাকার মধ্যে প্রকৌশল শিল্পখাতে সর্বাধিক ১ লাখ ৩৬ হাজার ২০৭ মিলিয়ন টাকা। এছাড়া সেবা শিল্পখাতে ১৬ হাজার ৪৫৮ মিলিয়ন টাকা, রাসায়নিক শিল্পখাতে ৪ হাজার ১৩৬ মিলিয়ন টাকা, পোশাক শিল্পখাতে ৩ হাজার ৯৫২ মিলিয়ন টাকা এবং ট্যানারি ও চামড়া শিল্পখাতে ৪৮৭ মিলিয়ন টাকার বিনিয়োগ প্রস্তাব পাওয়া গেছে। প্রস্তাবিত এই বিনিয়োগ মোট ৪ হাজার ৭৩৫ জন মানুষের কর্মসংস্থানের সুযোগ সৃষ্টি করবে।

Club de Fashionista begins journey towards fashion & innovation

The fashion enthusiasts of Dhaka witnessed a dazzling event as Club de Fashionista (CDF) was grandly launched at The Zabeer Dhaka. The event, graced by eminent personalities from various sectors, marked the beginning of an exciting journey in the world of fashion and innovation.

Club de Fashionista begins journey towards fashion & innovation
Figure: Club de Fashionista inauguration ceremony

With a dynamic lineup of activities and a vision for the future, Club de Fashionista is poised to become a prominent hub for fashion enthusiasts, athletes, and professionals alike.

The founder of CDF, Engr. S M Jabead, welcomed guests and participants, setting the tone for an evening filled with style and creativity. Chief Guest Shamshad Qumer, Head of Sales & Marketing at Permess, along with Special Guest Nur Muhammad Pintu, Managing Director of Chembond Multitrade, added prestige to the occasion with their presence.

The core team behind CDF comprises seasoned professionals dedicated to shaping the future of fashion in Bangladesh. Engr. Tariqul Islam Mithu assumes the role of Team Manager, with Engr. Rakibul Islam leading the Marketing efforts and Engr. Shahinul Islam Rana managing media relations. Key personnel include Engr. ABS Al-Amin, while Engr. Tanvir Mehedi has been appointed as the Club Mentor, bringing invaluable expertise to the table.

Strategic planning is entrusted to Engr. Md. Ariful Islam, ensuring a clear roadmap for the club’s growth and success. Engr. Abrar Al Fahad takes charge as Team Coordinator, facilitating seamless operations within the organization.

Moreover, the club’s reach extends to campuses, with dedicated ambassadors spreading the fashion fervor across educational institutions.

Also, CDF is set to engage in various activities including:

  1. Sports Activities: CDF recognizes the importance of a healthy lifestyle and aims to promote fitness among its members through sports activities. From friendly matches to organized tournaments, members can expect an array of sporting events to stay active and energized.
  2. CSR Activities: Beyond the realm of fashion, CDF is committed to giving back to the community through various Corporate Social Responsibility (CSR) initiatives. Whether it’s organizing charity drives, volunteering for social causes, or supporting underprivileged communities, CDF strives to make a positive impact on society.
  3. Professional Networking: CDF serves as a platform for like-minded professionals to connect, collaborate, and exchange ideas. With a focus on fostering meaningful relationships, the club provides networking opportunities, workshops, and seminars to empower individuals in the fashion industry.

In a notable moment, advisors of the club Engr. Jewel Ashraf and Engr. Mirza Razzak (Raj) were present, adding their expertise to the occasion.

As part of its future plans, CDF aims to onboard sportswear clothing brands, expanding its portfolio and catering to the diverse interests of its members. By partnering with renowned brands, the club seeks to offer premium quality sportswear options, further enhancing the fashion experience for its members.

It is time to pay attention to the heat stress of RMG factory workers

RMG factories, especially in regions with tropical climates like Bangladesh, often lack adequate ventilation and cooling systems. As a result, indoor temperatures can soar to uncomfortable and potentially dangerous levels, particularly during hot and humid seasons. 

The combination of high ambient temperature and the heat generated by machinery and bodies in proximity creates a stifling atmosphere for workers. For the thousands of individuals working in RMG factories, the battle against indoor heat stress is a silent struggle. 

In the midst of the hum of sewing machines and clatter of production lines, workers face soaring temperatures that often exceed their comfort zone. In countries like Bangladesh, where RMG factories are the biggest driver of the economy, the issue of indoor heat stress takes on added significance.

In the Laboratory of Environmental Ergonomics at Hokkaido University, Japan, I delved into a comprehensive study focusing on the prediction and comparison of monthly indoor heat stress in RMG production spaces in Dhaka, Bangladesh. 

This research, which has been published in the international journal Sustainable Cities and Society by Elsevier, deals with the critical issue of heat stress faced by garment factory workers. The study’s main highlights revolve around the analysis of monthly Wet Bulb Globe Temperature (WBGT) and predicted heat strain (PHS) criteria for these workers. 

We scrutinised the entire year’s heat stress prediction criteria, identifying a particularly concerning trend during the months of May to July, where PHS criteria reached alarmingly high levels, sometimes hitting 38°C. This poses significant health risks to the workers. 

Notably, WBGT and PHS showed substantial deviations during peak working conditions, as did the criteria across different exterior walls, orientations, and zones within the factories. These findings underscore the complexity of the heat stress issue and the need for tailored solutions. 

Our field monitoring efforts revealed the harsh reality faced by workers in RMG factories, with excessively hot indoor environments posing serious health risks. Indoor temperatures often soared far beyond the comfort range, adversely affecting workers’ physiological conditions.

Through simulations, we gained insights into the year-round heat stress landscape. The analysis showed that WBGT and PHS frequently exceeded comfortable levels, especially from May to August. These months witnessed indoor temperatures peaking at 36–38°C, heightening the risk factors for workers. 

The study also shed light on the importance of proper cooling systems. Without adequate cooling mechanisms, internal heat becomes excessively high, exacerbating the risk factors for workers. 

Furthermore, our predictions highlighted the varying risk levels across different months and conditions. From March to May, moderate to high levels of PHS were observed, corresponding to significant health risks for workers. 

Conversely, the months of September and October predicted higher WBGT levels, while colder outdoor temperatures kept them lower in January, February, November, and December. 

Our findings also emphasised the crucial role of environmental conditions in workers’ comfort and health. When indoor air temperatures (AT) ranged from 26.6°C to 29.3°C, workers experienced discomfort but were not at significant health risk. 

However, prolonged exposure to temperatures from 29.3°C to 38°C posed lasting health risks. The study underscores the urgency of addressing indoor heat stress in RMG factories. By understanding and implementing our findings, architects and engineers can contribute to the design of safer, more energy-efficient factory spaces, safeguarding the well-being of the workers who power this vital industry.

Considering heat stress for garment workers is crucial for several reasons:

Health risks: Excessive heat exposure can lead to heat-related illnesses such as heat exhaustion, heatstroke, and dehydration. Garment workers, often labouring in hot and humid conditions, are particularly vulnerable to these health risks, which can have severe consequences, including fatalities.

Productivity and quality: High temperatures can impair cognitive function, physical performance, and concentration, leading to decreased productivity and potentially compromising the quality of work. In the garment industry, where precision and attention to detail are paramount, any decline in worker performance can impact product quality and overall efficiency.

Workers’ well-being: Beyond the immediate health risks, prolonged exposure to high temperatures can negatively impact workers’ overall well-being and quality of life. Enduring uncomfortable working conditions day in and day out can lead to stress, fatigue, and decreased job satisfaction among garment workers.

Legal and ethical responsibilities: Employers have a legal and ethical obligation to ensure the safety and well-being of their workers. Failing to address heat stress in the workplace not only violates labour laws and regulations but also undermines the ethical responsibility to protect workers from harm.

Social and economic implications: Heat stress disproportionately affects vulnerable populations, including low-income workers in developing countries like Bangladesh, where the garment industry is a significant contributor to the economy. Addressing heat stress not only protects individual workers but also contributes to broader social and economic stability.

Several initiatives have been undertaken to predict and address heat stress for garment workers in Bangladesh. One notable effort is the collaboration between research institutions, governmental bodies, non-governmental organisations (NGOs), and industry stakeholders to develop heat stress prediction models and mitigation strategies tailored to the local context. 

Research institutions such as universities and environmental organisations should conduct studies to understand the factors contributing to indoor heat stress in garment factories. 

These studies often involve field measurements, data analysis, and simulation models to predict heat stress levels under different conditions. Government agencies, especially the Ministry of Labour and Employment, need to recognise the importance of addressing heat stress in the workplace. They can introduce regulations and guidelines to ensure that factories provide adequate ventilation, cooling systems, and rest breaks for workers during hot weather conditions. 

NGOs and international organisations have also played a crucial role in raising awareness about heat stress and advocating for the rights of garment workers. They provide training programmes, educational materials, and support services to help workers recognise the signs of heat stress and take preventive measures. 

Industry stakeholders, including factory owners, trade unions, and international apparel brands, can share interest in addressing heat stress to protect the health and well-being of workers. 

Nowadays, many factories are trying to implement heat stress management programmes, including heat monitoring, worker training, and infrastructure improvements. Overall, these initiatives aim to improve working conditions, reduce health risks, and enhance productivity in Bangladesh’s garment industry. 

By collaborating across sectors and implementing evidence-based interventions, stakeholders can create safer and more sustainable workplaces for garment workers. In summary, considering heat stress for garment workers is essential for safeguarding their health, ensuring productivity and quality, promoting worker well-being, fulfilling legal and ethical obligations, and fostering social and economic development.

Dr Sajal Chowdhury. Sketch: Courtesy

Dr Sajal Chowdhury. Sketch: Courtesy

Addressing indoor heat stress in RMG factories requires a multifaceted approach. Improving ventilation and cooling systems, implementing heat mitigation strategies such as providing access to shaded areas and cool drinking water, and enforcing regulations on working hours and breaks are critical steps. 

Furthermore, raising awareness among workers about the signs and symptoms of heat stress and empowering them to advocate for their rights is essential.

[Dr Sajal Chowdhury is an architect, educator at the Department of Architecture, CUET and a researcher focusing on Environmental Experience Design, Architectural Science and Well-being. sajal_c@cuet.ac.bd.]

পোশাক খাতের উন্নয়নে ইইউকে সহযোগিতা অব্যাহত রাখার আহ্বান বিজিএমইএর

পোশাকখাতের উন্নয়নে ইউরোপীয় ইউনিয়নকে (ইইউ) সহযোগিতা অব্যাহত রাখার আহ্বান জানিয়েছেন বাংলাদেশ পোশাক প্রস্তুতকারক ও রপ্তানিকারক সমিতির (বিজিএমইএ) সভাপতি এস এম মান্নান কচি।

বিজিএমইএর কমপ্লেক্সে অনুষ্ঠিত এক বৈঠকে তিনি এ আহ্বান জানান। এর আগে ইইউ, ডেনমার্ক, জার্মানি, নেদারল্যান্ডস, সুইডেন, স্পেন এবং ইতালির রাষ্ট্রদূত ও প্রতিনিধিদের সমন্বয়ে উচ্চ পর্যায়ের প্রতিনিধিদল বিজিএমইএ সভাপতির সঙ্গে সৌজন্য সাক্ষাৎ করে।

বৈঠকে বিজিএমইএ সভাপতি বাংলাদেশের তৈরি পোশাক শিল্পের বিভিন্ন দিকগুলো বিশেষ করে, সম্প্রতি কর্মক্ষেত্রে নিরাপত্তা এবং শ্রমিকদের কল্যাণ নিশ্চিতে বিভিন্ন ক্ষেত্রে শিল্পের অর্জনগুলো তুলে ধরেন।

এসময় তিনি ইইউকে বাংলাদেশের তৈরি পোশাক শিল্পে সহযোগিতা প্রদান অব্যাহত রাখা বিশেষ করে, চলমান এভরিথিং বাট আর্মস (ইবিএ) স্কিম থেকে জিএসপি প্লাসে উত্তরণের সময়কাল বৃদ্ধি করে বাংলাদেশকে সহযোগিতা প্রদানের অনুরোধ জানান।

বিজিএমইএ সভাপতি বলেন, স্বল্পোন্নত দেশ (এলডিসি) ক্যাটাগরি থেকে উত্তরণের পরও বাংলাদেশ যাতে তার অর্থনৈতিক প্রবৃদ্ধি ধরে রাখতে পারে, তা নিশ্চিত করার জন্য এই সম্প্রসারণ অত্যন্ত গুরুত্বপূর্ণ।

এছাড়া তিনি ডিউ ডিলিজেন্স ডিরেকটিভ ও অন্যান্য আসন্ন প্রটোকলগুলো অনুসরণ করার ক্ষেত্রে শিল্পের সক্ষমতা বৃদ্ধি করার জন্য ইইউ-এর সহযোগিতা কামনা করেন।

বৈঠকে বাংলাদেশে ইইউ-এর প্রতিনিধিদলের প্রধান ও রাষ্ট্রদূত চার্লস হোয়াইটলি, ডেনমার্কের রাষ্ট্রদূত ক্রিশ্চিয়ান ব্রিকস মোলার, জার্মানির রাষ্ট্রদূত আচিম ট্রস্টার, ইতালির রাষ্ট্রদূত আন্তোনিও আলেসান্দো, সুইডেনের রাষ্ট্রদূত আলেকজান্দ্রা বার্গ ভন লিন্ডে, নেদারল্যান্ডস দূতাবাসের চার্জ ডি’অ্যাফেয়ার্স থিজস ওয়াউডস্ট্রা, স্প্যানিশ দূতাবাসের কমার্শিয়াল অ্যাটাশে এসথার পেরেজ তাহোসেস ও বাংলাদেশে ইইউ প্রতিনিধিদলের বাণিজ্য উপদেষ্টা আবু সৈয়দ বেলাল উপস্থিত ছিলেন।

Decathlon invests in textile recycling startup Recyc’Elit

Sports goods retailer Decathlon has announced that it will invest a sum of money through its Decathlon Alliances structure in startup Recyc’Elit.

Recyc’Elit was established in 2019 in the Lyon region of France created a method for recycling complex polyester-based materials by sorting the fibers. The industrialization of this innovation is the next stage.

Decathlon invests in textile recycling startup Recyc’Elit
Courtesy: Collected.

Recycl’Elit plans to build its prototype by 2025. “The process of recycling complex textiles such as polyester and mixing it with other fibers is a priority for Decathlon, and Recyc’Elit is a trusted partner for developing recycled products from textile waste,” reads a release.

To “maintain its competitive edge while participating in the textile recycling value chain,” Decathlon intends to buy recycled polyester from the company in the long run.

A long-term business relationship has been formed, according to Decathlon, and it will include “the creation of a value chain with Recyc’Elit and all committed partners wishing to become involved in this process,” besides the production of capsule collections.

In October 2023, the start-up was granted €3.2 million by Demeter via the Crédit Agricole Création, business angels, the Fonds d’Amorçage Industriel Métropolitain (FAIM) Lyon – Saint Etienne, Banque des Territoires, and the French government on behalf of France 2030.

In terms of sustainability, Barbara Martin Coppola, CEO of Decathlon highlighted in her “North Star” business plan, which was revealed in March.

It also entails a redesigned shop layout, a more condensed portfolio of its brands, and a new visual identity.

The chain, which has 1,700 stores, brought in €15.6 billion in sales globally in 2023 (+1.15 percent) and made €931 million in net profit (+0.9 percent).

EPZ investors may lose duty-free benefits for machinery, vehicles imports

This move aims to create a level playing field with investors outside the zones and curb the misuse of these facilities, said NBR sources closely involved in fiscal policy-making.

Workers at a factory in the Korean Export Processing Zone (KEPZ). File Photo: TBS

Workers at a factory in the Korean Export Processing Zone (KEPZ). File Photo: TBS

The National Board of Revenue (NBR) is considering levying duties on the imports of capital machinery, vehicles, and furniture by investors in Export Processing Zones (EPZs) and hi-tech parks who have been enjoying duty-free benefits for decades.

This move aims to create a level playing field with investors outside the zones and curb the misuse of these facilities, said NBR sources closely involved in fiscal policy-making.

The revenue authority is also planning to raise duties on spare parts imported by investors in EPZs and hi-tech parks, especially those parts that are already being manufactured locally.

“We aim to align import duties for investors both within and outside the EPZs. To achieve this, the NBR may impose duties on machinery imports currently enjoying duty-free benefits,” an NBR official told TBS on condition of anonymity.

“We are considering raising import taxes on certain equipment and spare parts that currently benefit from reduced tax rates. Additionally, we plan to introduce import taxes on vehicles for investors in the EPZ area,” he said.

The official, however, declined to specify the exact rates of the proposed or increased duties.

NBR sources hinted that for the import of capital machinery by EPZ investors, a duty of around 1% may be imposed, while for spare parts, equipment, and furniture, the duty is likely to exceed 1%.

Furthermore, for vehicle imports, there may be a substantial increase in import duties, possibly reaching as high as 800%.

“The decision to implement these measures was not solely based on revenue concerns. We also took into account the importance of establishing a level playing field with other investors and addressing the misuse of duty-free facilities,” the official said.

There are allegations that the duty-free benefits are being extensively misused.

During a budget discussion last year, NBR Chairman Abu Hena Md Rahmatul Muneem brought up the issue, saying, “Due to tax benefits, there is still excessive reliance on imports for products that could be domestically produced. We must also prioritise the development of local industries.”

Hinting at tightening the benefits, the head of the revenue authority said, “We will reassess the facilities and make them more stringent. We will no longer provide facilities for importing items like office stationery and chairs. Why should even wooden chairs be imported from abroad with duty-free benefits?”

Investors express concern

However, investors have expressed concerns about the NBR’s new approach, apprehensive of losing reasons for choosing the EPZs.

Shams Mahmud, the managing director of Shasha Denims Limited, a textile factory located in the Dhaka EPZ, told TBS, “If the existing duty and tax facilities are reduced, foreign investors may backtrack on their commitments.”

“When investors initially came to invest in EPZs, they were promised these facilities. However, if any of these facilities are suddenly withdrawn or reduced, it may lead to a loss of confidence among,” he said.

“This not only impacts foreign investors but also hampers local investment. Already, some facilities for EPZ investors have been cut,” Shams added.

Non-EPZ businesses welcome the move

Mohammed Hatem, the managing director of MB Knitwear Limited, a factory based in Narayanganj outside the EPZ, said, “This initiative is commendable if the government aims to create a level playing field between EPZ and non-EPZ zones.”

“However, we also do not agree with any decision made abruptly and without prior consultation with stakeholders,” he said.

Dr Ahsan H Mansur, the executive director of the Policy Research Institute (PRI), told TBS, “There is no justification for differing import tax rates between factories within and outside the EPZs. However, this consideration should have been made before granting these benefits. Sudden policy changes undermine investor confidence.”

Incentives provided to EPZ investors

Factories operating in Bangladesh EPZs since 1983 have been enjoying duty-free benefits and other facilities. 

According to the Bangladesh Export Processing Zone Authority (Bepza), factories in these areas currently benefit from duty-free imports of construction materials, machinery, office equipment, and spare parts. They also enjoy duty-free import and export of raw materials and finished goods, relief from double taxation, and exemption from dividend tax.

Furthermore, they are eligible for a tax holiday, which offers a reduced tax rate. 

According to both NBR sources and investors, every investor within the EPZ, whether foreign or in a joint venture, enjoys duty-free facilities for each vehicle. Additionally, they receive reduced import tax benefits for spare parts.

Moreover, they are relieved from double taxation and exempted from dividend tax. They also receive a Generalised System of Preferences (GSP) facility for exports from Bangladesh, and remittance of royalty, technical, and consultancy fees is permitted.

Additionally, factories in EPZ benefit from specialised security measures, and trade unions are still not permitted in the EPZ unlike other areas.

An EPZ investor, on condition of anonymity, said, “Some facilities exist only on paper as customs officials are reluctant to recognise Bepza’s certification for duty benefits. As a result, investors are compelled to pay higher taxes or engage in underhand deals with certain officials.”

Md Tanvir Hossain, executive director (Investment Promotion) of Bepza, told TBS, “It is understandable that the government needs revenue, so it is not unusual for the NBR to consider reducing certain benefits. However, it would be preferable if they consult with the relevant authorities before making any decisions.”

According to BEPZA, some 451 factories are operating in the country’s eight EPZs, with investments totalling about $8 billion from 38 countries, employing approximately 500,000 people. 

Of these 451 factories, around 300 are primarily related to the garment, textile, and accessories industries.

Fazlul Hoque, the managing director of Plummy Fashions Limited, one of the country’s renowned environmentally friendly RMG factories, said, “We also advocate for uniform facilities both within and outside the EPZs. However, it is crucial to consider that without additional incentives, investors may be reluctant to invest there.”

Import duty on some food items may be cut

According to NBR sources, there are plans to reduce import taxes on certain food items, such as baby food, which are not produced domestically, to stabilise their market prices. 

Additionally, the NBR aims to narrow the tariff gap between imported and locally made products.

“Given Bangladesh’s impending graduation from the least developed country (LDC) status by 2026, there is substantial pressure on us to rationalise tariffs and diminish anti-export biases,” explained an NBR official. 

“Therefore, we are devising a plan to lower the current high tariff barriers on certain items by either reducing import tariffs or increasing tariffs on locally produced equivalents,” he added.

Over Tk36 lakh earners may face a 5% higher tax

Currently, individual taxpayers have to pay taxes up to 25%. Accordingly, those whose income is more than Tk16.50 lakh, have to pay tax in the highest slab or 25%. 

NBR sources said that with the new plan, income up to another Tk20 lakh will be taxed at 25% and 30% tax on the subsequent income. So, a 30% tax has to be paid for income above Tk36.50 lakh.

As a result, about 50,000 taxpayers will come under the additional tax, according to the relevant sources of NBR.


Reyad Hossain is a Senior Staff Correspondent at The Business Standard, who specialises in national and international trade, readymade garments sector, labour issues, the National Board of Revenue (Tax, VAT, Customs) and local trade bodies. His career spans over a decade. He can be reached at

RMG injury scheme to cover commuting accidents: ILO

“The Governance Board of the Employment Injury Scheme (EIS) Pilot approved the inclusion of ‘commuting accidents’ as industrial accidents, making them eligible for compensation payout starting from 1st July 2024” as per the International Labour Organization (ILO).

Md Mahbub Hossain, secretary of the Ministry of Labour and Employment (MoLE) chaired the meeting, and announced the decision to include commuting accidents in the Employment Injury Scheme Pilot to ‘ensure protection of industries and workers in Bangladesh’.

RMG injury scheme to cover commuting accidents: ILO
Figure: RMG injury scheme to cover commuting accidents.

The EIS Pilot Governance Board’s member government agencies (Central Fund, DoL, DIFE), workers’ organizations (UFGW, NCCWE), and employers’ organizations (BEF, BGMEA, BKMEA) all unanimously supported the decision.

Technical experts from the ILO offered insights into important technical and financial aspects of such an expansion, such as the need to treat accidents involving commuters as workplace accidents but to keep separate records because these incidents happen outside of factories and are not associated with any specific factory.

Additionally, they presented a strong case for the financial sustainability of the coverage of accidents under the EIS Pilot, ILO said. 

The workers’ representatives also expressed their commitment to support the initiative.

“RMG Sector is a relatively safe sector, however, road travel is the most horrible part of this job, therefore commuting accidents are important to be covered,” they said.

Article 7 of the ILO Employment Injury Benefits Convention No. 121 (C-121) requires countries to define industrial accidents, including the conditions under which a commuting accident is considered to be an industrial accident.

Adapting this measure brings the Bangladesh EIS one step closer to alignment with the requirements outlined in C -121.

Within the scope of the EIS Pilot, incidents that occur during the direct route between an employee’s place of employment and their local place of residence are classified as commuting accidents.

The EIS Pilot now addresses two of the three suggested vulnerabilities—”Occupational Diseases” is still uncovered—after including commuter accidents. However, a procedure to increase national occupational disease data and capacity has begun.

Tuomo Poutiainen, ILO’s Country Director for Bangladesh said, “Since June 21, 2022, the EIS Pilot has been compensating injured workers and the dependents of deceased workers in the ready-made garments sector for work-related accidents. With this inclusion of commuting accidents, the initiative is expected to provide enhanced protection to workers and improve industrial relations, which are often disrupted by accidents involving workers on their way to or from work.”

১১ বছরেও টিকফা চুক্তির সুবিধা নিতে পারেনি বাংলাদেশ

রানাপ্লাজা ধসের পর যুক্তরাষ্ট্র শুল্কমুক্ত সুবিধা বা জিএসপি উঠিয়ে নিয়ে টিকফা চুক্তিতে বাণিজ্য সমতা করতে চেয়েছিল। তবে এ চুক্তির ১১ বছরেও তেমন কোনো সুবিধা নিতে পারেনি বাংলাদেশ। উল্টো শ্রমমান নিয়ে প্রতিনিয়তই প্রশ্ন তুলে চাপে রাখছে যুক্তরাষ্ট্র।

দেশের তৈরি পোশাক খাতের ইতিহাস প্রায় সাড়ে চার দশকের। সত্তর দশকের শেষের দিকে দেশের তৈরি পোশাক প্রথম ফ্রান্সে রপ্তানি হয়। মাত্র ১০ হাজার পিস শার্টের ওই চালানের দাম ছিল ১ লাখ ৩০ হাজার ফ্রাঁ, বর্তমান টাকার অঙ্কে যা ছিল ২৩ লাখ ৪০ হাজার।

মাত্র ২৩ লাখ টাকার বাজার এখন দেশের শীর্ষ রপ্তানি খাত, যার আকার ৪ হাজার ৬৯৯ কোটি ১৬ লাখ মার্কিন ডলার। তৈরি পোশাকের সবচেয়ে বড় গন্তব্য ইউরোপ ও যুক্তরাষ্ট্র। তবে এ বাজারে প্রবেশ করাটা খুব একটা সহজ ছিল না। বাজার ধরার সে লড়াইয়ে ক্রেতাদের নানা শর্তের বেড়াজাল ছিল। যা পোশাক রপ্তানির ৪৬ বছরেও কমেনি বরং এর ধরন বদলেছে, বেড়েছে শর্তের তালিকা।

শর্ত মানলেও কাঙ্ক্ষিত সুবিধা দিতে যুক্তরাষ্ট্রের যেন বরাবরই অনীহা। দোহানীতি অনুযায়ী, স্বল্পোন্নত দেশগুলোর ৯৭ শতাংশ পণ্যে জিএসপি দিয়ে থাকে যুক্তরাষ্ট্র। তবে বাংলাদেশের তৈরি পোশাকে তা কখনোই মেলেনি। উল্টো শ্রমমান, কর্মপরিবেশ ও নিরাপত্তার দোহাই দিয়ে ২০১৩ সালে রানাপ্লাজা ট্র্যাজেডির পর যেসব পণ্যে জিএসপি ছিল তাও উঠিয়ে নেয়া হয়। তবে সেই ক্ষতি কাটিয়ে দুই দেশের বাণিজ্য ও অর্থনৈতিক সম্পর্ক আরও জোরদারের জন্য সে বছরের নভেম্বরে আলোচিত টিকফা চুক্তি সই হয়। কিন্তু ১১ বছরেও সেই চুক্তির কি কোনো সুবিধা নিতে পেরেছে বাংলাদেশ?

বাংলাদেশ টেক্সটাইল মিলস অ্যাসোসিয়েশন (বিটিএমএ) সভাপতি মোহাম্মদ আলী খোকন বলেন, ‘৩ থেকে ৪ বিলিয়ন ডলার থেকে ১০ বিলিয়ন ডলারে আমরা উন্নীত করেছি। আমেরিকার মার্কেটে আমাদের অবস্থান ভিয়েতনামের চেয়ে খারাপ নয়। আর আমরা যে জিএসপি সুবিধা পাচ্ছি না, এটি সম্পূর্ণ রাজনৈতিক সিদ্ধান্ত। এখানে আমাদের কোনো ব্যর্থতা নেই।’

যুক্তরাষ্ট্র থেকে আমদানি করা তুলা দিয়ে যেসব পোশাক তৈরি করা হয়, সেসব পোশাকে শুল্কমুক্ত সুবিধা পেতে দীর্ঘদিন ধরে দাবি জানিয়ে আসছে বাংলাদেশ। তাদের প্রস্তাব অনুযায়ী, যুক্তরাষ্ট্র থেকে আমদানির পর বন্দরে তুলা ফিউমিগেশন পদ্ধতি বা বিষবাষ্পীকরণের বাধ্যবাধকতা তুলে নেয়ার পর আমদানিও বেড়েছে। পাশাপাশি শত শত কোটি টাকা সাশ্রয় ও বন্দরে পাঁচদিন অপেক্ষার অবসান হয়েছে।

বিটিএমএর তথ্য অনুযায়ী, দুই বছর আগে বাংলাদেশে যুক্তরাষ্ট্রের তুলার বাজার হিস্যা ছিল ৯ শতাংশ। ফিউমিগেশন পদ্ধতি বাতিলের পর তা এখন প্রায় ১৪ শতাংশে উন্নীত হয়েছে। তাহলে শুল্কমুক্ত সুবিধা দিতে বাধা কিসে?

মোহাম্মদ আলী খোকন আরও বলেন, ‘আমাদের দাবি কিন্তু বাস্তবায়ন হয়নি। আমরা দীর্ঘদিন ধরে আলোচনা করে আসছি। কিন্তু আমাদের বিষয়টি বিবেচনায় রাখেনি।’

ঢাকায় সবশেষ টিকফা বৈঠকেও ইপিজেডে ট্রেড ইউনিয়ন বাস্তবায়ন, শ্রম অধিকার লঙ্ঘন করলে কারখানার মালিকদের বিরুদ্ধে ব্যবস্থা নেয়াসহ দেশের শ্রম অধিকার নিয়ে ১১ দফা কর্মপরিকল্পনা দেয়া হয়।

অর্থনীতিবিদ ড. এম এ রাজ্জাক বলেন, ‘যুক্তরাষ্ট্রের কাছ থেকে রাতারাতি বাণিজ্য সুবিধা পাওয়া সম্ভব নয়। এজন্য দীর্ঘমেয়াদি পরিকল্পনা প্রয়োজন।

১৫ দশমিক ৬২ শতাংশ শুল্ক থাকা সত্ত্বেও মার্কিন যুক্তরাষ্ট্রে বাংলাদেশের প্রধান রপ্তানি পণ্য তৈরি পোশাক। যা যুক্তরাষ্ট্র থেকে আসা আয়ের ৯০ শতাংশের বেশি। চলতি অর্থবছরের প্রথম ৮ মাসে এ বাজারে প্রায় সাড়ে ৫ বিলিয়ন ডলারের পোশাক রপ্তানি হয়েছে।

এওয়াইএইচ

Govt sets $110bn export earnings for FY27

The government has set a target to export goods and services worth $110 billion in FY27, which is double the earnings recorded in the last fiscal year. 

The cabinet committee on economic affairs approved the draft Export Policy prepared for 2023-24 to FY27 on Wednesday. 

“It will now be placed at the cabinet for approval,” said Mahmudul Hossain Khan, secretary for coordination and reforms at the Cabinet division.

Bangladesh’s export earnings stood at $55 billion in FY23.

Khan said that the draft policy highlighted the challenges that Bangladesh is expected to face once it graduates from the group of least-developed countries in 2026.

The policy focuses on alternatives to cash incentives to encourage exporters since the country will not be able to offer direct financial support once it becomes a developing country.

The government’s export target for FY24 stands at $62 billion.

Exporters shipped goods worth $47.47 billion in July-April of the fiscal year.

RMG BANGLADESH NEWS