🇧🇩 Textile & RMG Industry of Bangladesh (1 Viewer)

[Saif]

Garment export to EU slightly up in July-April

Garment export to the European Union (EU) in the July-April period of the current fiscal year grew by 3.66 percent from that in the corresponding period of last fiscal year to reach $19.90 billion.

www.thedailystar.net

Garment export to EU slightly up in July-April

Garment export to the European Union (EU) in the July-April period of the current fiscal year grew by 3.66 percent from that in the corresponding period of last fiscal year to reach $19.90 billion.

Among the EU member countries, garment export to Denmark grew by the highest margin of 32 percent, according to data from the Export Promotion Bureau compiled by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Meanwhile, garment export to Poland grew by 20.65 percent followed by 17.51 percent to the Netherlands, 6.07 percent to Spain and 3.42 percent to France.

However, apparel export to Italy declined by 2.45 percent, as per the country-wise garment export data compiled by the BGMEA.

Moreover, garment export to Germany, the largest export market in the EU, amounted to $5.01 billion.

To read the rest of the news, please click on the link above.​

 

[Saif]

Intertek launches iCare in Bangladesh to support textile industry

Intertek has launched iCare, an innovative digital platform, in Bangladesh to support the local textile industry by offering a seamless and pioneering solution for managing testing processes from start to finish. The company--Intertek, an assurance inspection, product testing and certification com

thefinancialexpress.com.bd

Intertek launches iCare in Bangladesh to support textile industry

Intertek has launched iCare, an innovative digital platform, in Bangladesh to support the local textile industry by offering a seamless and pioneering solution for managing testing processes from start to finish.

The company--Intertek, an assurance inspection, product testing and certification company, launched the new platform in Bangladesh on Monday at an event in the capital city following its successful introduction in Türkiye last November and India in March, according to a statement.

Driven by increasing regulatory scrutiny and heightened consumer expectations, there is growing demand among customers for bespoke, end-to-end solutions that can improve transparency and traceability around the processing and testing of lab samples.

iCare is a one-stop science-based Customer Excellence portal that is designed to address these challenges, providing clients with a pioneering, industry-leading solution that will allow them to seamlessly manage and monitor their testing processes from start to finish, added the statement.

iCare would enable customers around the world to submit test requests, view reports and analytics online and connect with in-house teams of experts in just a few clicks, allowing greater transparency for customers regarding their samples and the testing process, it added.

Sandeep Das, President of Global Softlines and Hardlines and Regional Managing Director South Asia at Intertek, said, "iCare's industry-leading capabilities are not only a response to current customer demand but also a testament to Intertek Softlines' commitment to pioneering innovation."

By harnessing advanced technologies and redefining the benchmark for transparency and traceability, iCare sets a new standard for the ATIC industry and solidifies Intertek Softlines' position as an industry leader for customer excellence in the field of quality assurance and testing services, he added.

Neyamul Hasan, Country Managing Director, Intertek Bangladesh and Shelly Lo, Senior Director of Marketing and Innovation for Global Softlines and Hardlines at Intertek, among others, were also present.​

 

[Saif]

Manmade Fibre: Bangladesh’s best bet to become top apparel exporter

Having become the world’s second largest source for apparel items after China, Bangladesh is now pushing for the top spot by adding more value-added products to its export basket.

www.thedailystar.net

Manmade Fibre: Bangladesh's best bet to become top apparel exporter

Photo: Refayet Ullah Mirdha

Having become the world's second largest source for apparel items after China, Bangladesh is now pushing for the top spot by adding more value-added products to its export basket.

Clothes made of manmade fibre (MMF) are playing a particularly vital role in this regard as such highly value-added apparel items have significant demand abroad.

Besides, non-cotton apparel fetches higher prices than cottonwear for being more flexible, durable and functional, with the cost of a T-shirt made from MMF being about double that of one made from cotton.

As such, local garment makers have been diversifying their product base with non-cotton items.

Additionally, they have increased their production capacities, maintained consistency in supply and improved product quality over the past five decades.

Now, about 7.9 percent of all apparel items sold worldwide come from Bangladesh as the country has turned into a reliable source for international clothing retailers and brands.

And with about 29 percent of the country's garment exports comprising MMF products, Bangladesh aims to use this segment to expand its global market share to 12 percent by 2030.

With this in mind, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) aims to increase the country's annual apparel exports to $100 billion within the next six years.

To read the rest of the news, please click on the link above.​

 

[Saif]

Buyers shift to Delhi airport as higher expenses make Dhaka unattractive

The tariff at the largest airport in Bangladesh is so high that buyers stay competitive even when their goods travel a distance of nearly 1,900 kilometres in trucks from the country to Delhi via Benapole and Petrapole.

www.thedailystar.net

Buyers shift to Delhi airport as higher expenses make Dhaka unattractive

International clothing retailers and brands sourcing from Bangladesh prefer the Delhi airport to Hazrat Shahjalal International Airport (HSIA) to carry goods owing to the lower tariff offered by India.

The tariff at the largest airport in Bangladesh is so high that buyers stay competitive even when their goods travel a distance of nearly 1,900 kilometres in trucks from the country to Delhi via Benapole and Petrapole.

For example, it costs $3 to transport one kilogramme of garment items from the HSIA to destinations in Europe. The charge is $1.2 if the goods are sent via Delhi's Indira Gandhi International Airport.

An elevated level of tariffs, value-added tax, and ground handling and service charges at the HSIA are mainly driving users away from Dhaka.

At the airport, a 72 percent surcharge is imposed for ground handling. If the fee is not paid on time, a 60 percent fine is levied.

A total of 1,65,000 tonnes of cargoes were shipped from the HSIA In July-March of the current fiscal year, according to data from the civil aviation and tourism ministry. Of the quantity, 1,34,000 tonnes were garment items and 30,000 tonnes were vegetables, fruits and other items.

In 2022-23, some 1,67,000 tonnes of cargoes were sent abroad via the airport. This included 142,000 tonnes of garment products and 24,000 tonnes of fruits, vegetables, and allied food items.

Kazi Wahidul Alam, an aviation expert, said more than 8,000 tonnes of cargoes, especially those containing garment items, were diverted from the HSIA to Delhi last year because of higher tariffs.

"The volume is higher this year as buyers are increasingly finding Delhi airport more competitive for their business," he said, adding that 50 tonnes of cargoes are redirected from the HSIA to Delhi every day on average.

Owing to the higher charges, local airlines, freight forwarders, courier companies, ground handlers, and many other related sectors are losing business.

At least eight private airlines that tried to do business on the domestic routes of Bangladesh could not become competitive because of escalated high tariffs, Alam said.

Kabir Ahmed, president of the Bangladesh Freight Forwarders Association, described the freight charge at the Dhaka airport as extremely high.

To read the rest of the news, please click on the link above.​

 

[Saif]

RMG export prices fall by 16% in 8 months: BGMEA

Apparel’s demand decreases among end consumers hit hard by high inflation, it says

www.thedailystar.net

RMG export prices fall by 16% in 8 months: BGMEA
Apparel's demand decreases among end consumers hit hard by high inflation, it says

Export prices of Bangladeshi garment items fell by 8 percent to as high as 16 percent year-on-year in the last eight months thanks to a fall in demand among consumers because of high inflationary pressure.

Not only the prices of apparels shipped from Bangladesh have fallen, but also the export of garments witnessed a falling trend in volume in major markets, according to data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

For instance, apparel import from the US declined by 7 percent and from the European Union it experienced a 13 percent fall in the July-April period of 2023-24 fiscal year, the BGMEA data also said.

Garment export increased by 4.97 percent year-on-year in the 10 months to April this year, down from the 9.09 percent year-on-year growth posted in the same period previous year.

However, the bank interest rate rose by 15 percent and the cost of production by 50 percent in the last five years, BGMEA President SM Mannan Kochi said at a meeting with the reporters of different print, televisions and online media outlets at Pan Pacific Sonargaon in Dhaka today.

The cost of production has increased because of price hikes of gas, power and wages of the workers, he said.

Kochi also said the government's decision of not allowing making investment outside of the export processing zones (EPZs) and the special economic zones (SEZs) will have a negative impact on the inflow of investment in the country.


He urged the government for reviewing the decision and giving go-ahead to making investment and setting up factories outside of the SEZs and EPZs so new investments come and new factories are set up.​

 

[Saif]

Over 450 textile, RMG units cut freshwater usage by 35b litres

Over 450 textiles and readymade garment factories in Bangladesh under IFC-led programme ‘Partnership for Cleaner Textile’ have reduced freshwater consumption by 35 billion litres and cut wastewater discharge by 29 billion litres annually...

www.newagebd.net

Over 450 textile, RMG units cut freshwater usage by 35b litres
Staff Correspondent 02 June, 2024, 22:36

A file photo shows workers sewing clothes at a readymade garment factory at Savar, on the outskirts of Dhaka. | New Age photo

Over 450 textiles and readymade garment factories in Bangladesh under IFC-led programme 'Partnership for Cleaner Textile' have reduced freshwater consumption by 35 billion litres and cut wastewater discharge by 29 billion litres annually.

On the occasion of the 10-year anniversary of the PaCT programme, International Finance Corporation stated that freshwater saved through the reduced consumption under the initiative could meet the annual water need of over 1.9 million people.

Now, these factories save 3.8 million megawatt hours in energy per year and have reduced carbon emissions by 7,23,617 tonnes annually — equivalent to removing nearly 1,60,000 cars from the road each year.

To bring systemic and positive change to the textile value chain in Bangladesh, IFC's partnership for PaCT programme has catalysed transformative change over the last 10 years, contributing to the sector's competitiveness and environmental sustainability, the statement said.

The advisory programme PaCT — supported by Denmark and the Netherlands —is spearheaded by IFC and implemented in collaboration with the Bangladesh Garment Manufacturers and Exporters Association.

Over the years, PaCT has also been working with leading partners, including VF Corp, PUMA, Levi Strauss & Co and TESCO.

'Let me stress how pleased we are to see that PaCT has become a market leader in both its scale and comprehensiveness of its activities, especially on advisory support for energy efficiency and renewable energy,' said Denmark ambassador to Bangladesh Christian Brix Moller.

According to IFC, the PaCT programme was launched to support the entire textile value chain — spinning, weaving, wet processing and garment factories — in adopting cleaner production practices.

The programme engaged with brands, technology suppliers, industrial associations, financial institutions and the government to bring about systemic and positive environmental changes in Bangladesh's textile sector, contributing to its long-term competitiveness and environmental sustainability.

To read the rest of the news, please click on the link above.​

 

[Bilal9]

RMG sees 10% growth in new markets

Bangladesh's RMG sector exhibited an overall growth of 4.97% during the fiscal 2023-24

Bangladesh' ready-made garment exports to new markets witnessed robust growth of 10%, reaching a total of $7.70 billion in July-April of FY24, compared to $7 billion in the equivalent period of the previous fiscal year.

Among major newly explored markets, shipments to Japan rose to $1.4 billion, reflecting a 6.14% increase. While exports to Australia and South Korea showed substantial rises of 17.18% and 14.73%, respectively.

Bangladesh' RMG exports to the Middle East markets also showcased notable growth. Exports to Saudi Arabia increased by 58%, while Turkey and the UAE recorded growth rates of 54% and 41.96%, respectively.

According to Export Promotion Bureau (EPB) data, overall exports to global markets reached an impressive total of $40.49 billion, compared to $38.57 billion in the first ten months of FY23.

"We have already achieved double-digit growth in these new markets," he said. "Our market share in the new markets has reached close to 20%. If the government continues its policy support, especially cash incentives, until 2029, our market share in new markets will be higher, which will help diversify our markets."

Kochi emphasized that Japan, Australia, South Korea, China, Russia, and other Middle East markets have the potential for further growth. He urged the government to introduce alternative incentives for apparel exports, similar to those provided by competitor countries, to enhance competitiveness.
The BGMEA president noted that India has been providing various incentives to its exporters, although the country only graduated from LDC status in 2007.
Bangladesh's RMG sector exhibited an overall growth of 4.97% during the fiscal 2023-24. According to EPB data, exports to the EU totaled $19.90 billion, with 3.66% growth, driven by strong performances in several key EU markets.

RMG exports to Spain, France, the Netherlands, Poland, and Denmark grew by 6.07%, 3.42%, 17.51%, 20.65%, and 32%, respectively.

Apparel exports from Bangladesh to the UK and Canada reached $4.8 billion and $1.26 million, respectively.

Speaking about the RMG sector, the BGMEA president said, "When our Europe-America market began to recover post-Covid, our business slowed down again due to the Ukraine-Russia war. Our exports have suffered to some extent, but we still managed to maintain growth compared to other competing countries."

However, apparel exports to neighboring India declined by 22.44%. This decline has been noticeable since August 2023.

 

[Saif]

However, apparel exports to neighboring India declined by 22.44%. This decline has been noticeable since August 2023.

India's penny pinching bureaucrats are the main culprits for the decline of Bangladesh's exports to India. This I call exploitation of Bangladesh by our big neighbor---India.

 

[Saif]

SBTi debate has major implications for RMG suppliers

The carbon offsetting schemes that have been discredited in the past could be improved

www.thedailystar.net

SBTi debate has major implications for RMG suppliers

VISUAL: STAR

A row has broken out about the Science Based Targets initiative (SBTi), a corporate climate action organisation, which could have significant implications for garment manufacturers around the world, depending on how it plays out. The SBTi is the world's best-known initiative that supports global enterprises in their efforts to reduce carbon emissions in line with sciences aligned with global agreements such as the Paris Agreement. Many of the world's largest fashion brands have set science-based targets for 2030 and beyond.

The biggest challenge in meeting these targets has been in reducing Scope 3 emissions—in supply chains, essentially. For fashion brands, reducing the amount of CO2 emissions related to garment production and textile processing is a huge task, especially given that so much of this manufacturing takes place in countries that use "dirty" energy such as fuel and gas.

Up until now, the SBTi has indicated that in order to meet their science-based targets, signatories must make absolute reductions in their carbon emissions. In order to do this, they would need to support their supply chains in the transition to renewable energy sources.

This is no easy task. It also explains why fashion brands have been in prolonged conversations with their suppliers in recent years to look at how they can measure and reduce carbon emissions.

Recently, however, the SBTi issued a statement suggesting they would, moving forward, allow voluntary carbon offsetting schemes to contribute to CO2 emissions reduction targets in supply chains. This news was significant for the fashion industry as many brands are indeed struggling to reduce Scope 3 emissions while also hitting business growth targets.

To read the rest of the news, please click on the link above.​

 

[Saif]

Local spinners losing yarn market to import surge

Due to higher cost of production, domestic textile millers, especially spinners, are facing 'uneven' competition with their foreign competitors and losing orders for yarn even from the local readymade-garment exporters. The RMG exporters now prefer sourcing the raw material from abroad, hinderin

thefinancialexpress.com.bd

Local spinners losing yarn market to import surge
MONIRA MUNNI
Published :
Jun 05, 2024 01:27
Updated :
Jun 05, 2024 01:27

Due to higher cost of production, domestic textile millers, especially spinners, are facing 'uneven' competition with their foreign competitors and losing orders for yarn even from the local readymade-garment exporters.

The RMG exporters now prefer sourcing the raw material from abroad, hindering further growth of the local spinning sector.

According to the central bank data, imports of yarn recorded a double digit growth during the first nine months of the current fiscal year (FY) while imports fell in cases of other raw materials like raw cotton, textile and articles, and staple fibre.

Yarn import recorded a growth of over 10 per cent during July-March period of FY 2023-24 compared to the corresponding period of the last FY, according to Bangladesh Bank data.

Bangladesh imported yarn worth US$2.32 billion during the period which was US$2.10 billion in July-March period of FY 2022-23.

Overall imports of RMG inputs recorded a 9.1 per cent decline during the first nine months - raw cotton 24.9 per cent, followed by textile and articles 8.2 per cent, staple fibre 6.1 per cent and dying and tanning materials 3.1 per cent.

During the period under review, the country spent US$12.17 billion in importing those goods which was US$13.39 billion in the corresponding period of last fiscal.

Exporters said the price of locally produced yarn is higher than the imported variety while textile millers argued that the high costs of utilities and poor gas supply pushed up their production cost and it resulted in higher prices of locally made yarn.

To read the rest of the news, please click on the link above.​

 

[Saif]

Bangladesh’s garment export growth slows to 2.86pc amid economic challenges

The Export Promotion Bureau (EPB) has released export data for the fiscal year 2023-24, highlighting a slowdown in the growth of Bangladesh’s garment exports. From July to May of the 2023-24 fiscal year, garment exports totaled $43.85 billion, reflecting a growth rate of 2.86 per cent. This

thefinancialexpress.com.bd

Bangladesh's garment export growth slows to 2.86pc amid economic challenges
UNB
Published :
Jun 05, 2024 22:01
Updated :
Jun 05, 2024 22:09

The Export Promotion Bureau (EPB) has released export data for the fiscal year 2023-24, highlighting a slowdown in the growth of Bangladesh's garment exports.

From July to May of the 2023-24 fiscal year, garment exports totaled $43.85 billion, reflecting a growth rate of 2.86 per cent. This is a marked decrease compared to the same period in the previous fiscal year, when exports reached $42.63 billion with a growth rate of 10.67 per cent.

The decline in exports became particularly evident in April and May 2024, significantly affecting the overall growth rate.

"Our garment exports over these 11 months have lagged behind the target by 7.63 per cent," said Mohiuddin Rubel, Director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Rubel detailed that knitwear product growth dropped by 20.75 per cent and woven garment exports decreased by 12.48 per cent in May alone. He attributed this decline to several global and domestic economic pressures.

Due to inflation in the global economy and interest rate hikes to control it, consumers' purchasing power has diminished, leading to reduced retail sales and garment imports, Rubel explained. He noted that global garment imports by the United States fell by 7.18 per cent and by Europe by 12.84 per cent during January-March 2024. Additionally, significant price drops per unit of product in key markets, ranging from 8 per cent to 18 per cent, have exacerbated the situation.

Domestic challenges have also played a role. Increased minimum wages, rising costs of electricity, gas, and transportation, and bank interest rates soaring from single digits to 14 per cent-15 per cent, combined with reduced cash assistance, have hampered the industry's competitive edge. "This is somewhat reflected in the export growth," Rubel said.

It is noteworthy that the garment sector has to face continuous new challenges to survive. "On one hand, we are dealing with complexities related to NBR, ports, and banking. On the other hand, the government has decided not to provide gas-electricity connections and bank loans to any new factories outside industrial zones, a decision we have requested to be withdrawn. If implemented, such decisions could further hinder investment and exports," he added.

To read the rest of the news, please click on the link above.​

 

[Saif]

Minimum tariff value of cotton fabrics increased

Finance minister Abul Hassan Mahmood Ali on Thursday proposed rationalising at the import level the minimum value of certain products, including cotton and synthetic fabrics, for imposing duty to safeguard the local industry...

www.newagebd.net

Minimum tariff value of cotton fabrics increased
Staff Correspondent 06 June, 2024, 22:10

| Star Mail photo

Finance minister Abul Hassan Mahmood Ali on Thursday proposed rationalising at the import level the minimum value of certain products, including cotton and synthetic fabrics, for imposing duty to safeguard the local industry.

The finance minister in his proposed budget for the financial year 2024-25 suggested increasing the minimum value of cotton fabrics and printed cotton at the import level to $4 a kilogram from exiting $3 a kilogram.

He also proposed increasing the minimum value of synthetic fabrics from $3 a kilogram to $4.50 a kilogram.

Waiving all other duties and taxes, the finance minister also proposed imposing 1 per cent customs duty on purified terephthalic acid and mono-ethylene glycol, the raw materials of polyester (synthetic) staple fibre and pet chips used in the textile industry.

The minister in his budget speech said that it was observed that the total tax incidence on the finished goods was less than its raw materials.

'In order to remove this discrepancy and for the protection of the domestic industry, I propose to impose 1 per cent customs duty on PTA and MEG and waive all other duties and taxes on these two raw materials,' Mahmood said.

The finance minister also proposed waiving all other taxes except customs duty of 5 per cent and advance income tax for importing chiller having capacity of 50 tonnes or more.

Chiller is used as essential capital equipment in various industries and a total duty of 104.68 per cent is applicable to the import of the item, which is not conducive to the related industries, he said.​

 

[Saif]

Textile, garment makers urge govt to reconsider their demands

Textile millers and garment makers in Bangladesh yesterday demanded that the government include some of their recommendations in the new national budget as many of the issues they raised remain unaddressed.

www.thedailystar.net

Textile, garment makers urge govt to reconsider their demands

Textile millers and garment makers in Bangladesh yesterday demanded that the government include some of their recommendations in the new national budget as many of the issues they raised remain unaddressed.

For instance, garment exporters had demanded the reduction of source tax from the existing 1 percent to 0.5 percent for the upcoming fiscal year, which starts on July 1.

They also sought the continuation of cash incentives on export receipts until 2032 as the World Trade Organization (WTO) will allow graduating least-developed countries (LDCs) to enjoy trade benefits as LDCs till then.

As these demands were left unmet in the proposed budget for FY25, the textile millers and garment makers have asked the government to reconsider their recommendations on the grounds that such measures would improve businesses.

SM Mannan Kochi, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said one of the proposed measures in the budget would allow customs officials to levy a 400 percent fine if an exporter is found using inaccurate documentation.

"Such a proposal will only increase the harassment of exporters for simply making a mistaking when filing documents for the export procedure," he added.

Kochi was speaking at a post-budget press conference jointly organised by the BGMEA, Bangladesh Textile Mills Association (BTMA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) at the BGMEA office in Dhaka.

The BGMEA president also demanded food rationing for garment workers as persistently higher inflation has increased essential commodity prices in domestic markets.

He also suggested the government introduce a special scheme for both saving and fostering the growth of small and medium enterprises in the textile and garment sectors.

BKMEA Executive President Mohammad Hatem said although the government takes advanced income tax, the amount charged is often not returned as per the rules.

Besides, many textile and garment factories are facing serious difficulties due to a severe gas crisis.

BTMA President Mohammad Ali Khokon said there is an opportunity to bolster earnings from the 15 million kilogrammes of garment waste generated across the country each year as many global buyers want apparel made from recycled materials.

To read the rest of the news, please click on the link above.​

 

[Saif]

Go for recycled garments to boost exports

Bangladesh should soon go for producing recycled garment products that meet global environmental safety standards to increase its exports to the European Union (EU), according to speakers at an event.

www.thedailystar.net

Go for recycled garments to boost exports
Experts say at BUILD discussion

Bangladesh should soon go for producing recycled garment products that meet global environmental safety standards to increase its exports to the European Union (EU), according to speakers at an event.

Changes in trade patterns often bring major shifts to a country's economic structure, technological advancement, government policies and emerging trade theories or agreements, they said.

However, Bangladesh needs to take adequate preparation to this end, they added.

These comments came at a discussion on the impact of EU circular textiles policies on its trading partners, organised by the Business Initiative Leading Development (BUILD) at its office in Dhaka.

The recently introduced EU Strategy for Sustainable and Circular Textiles emphasises transparency, sustainability and circularity across the textile value chain, impacting both the EU and non-EU consumers and companies.

The EU is an important destination for garment and textile exports from Bangladesh.

In fiscal 2022-23, apparel exports from Bangladesh to the EU amounted to $28.6 billion. In fiscal 2023-24, the amount was $25.44 billion, indicating a year-on-year decline of about 6.07 percent.

The EU and UK account for more than 60 percent of Bangladesh's garment exports while apparel products constitute more than 93 percent of the total shipments.

Ferdaus Ara Begum, chief executive officer of BUILD, said Bangladesh needs to devise new strategies and projections for textile exports to the EU. This includes identifying potential growth areas as well as challenges for market entry.

She said Bangladesh also needs to analyse the policy shifts and chart out a detailed scenario to support its textile and garment industries to adapt to the EU's sustainable and circular strategy.

"We need to assess the landscape of the sector before we provide feedback on potential impacts and necessary adaptations," ‍said Patrick Schroeder, senior research fellow of the environment and society programme at The Royal Institute of International Affairs, a British think-tank.

"And we need to figure out strategies for enhancing collaboration between EU and Bangladesh stakeholders to promote a sustainable and circular global textiles sector," he added.

Producer countries like Bangladesh have existing circular practices and entrepreneurship, often in the informal sector having market structures, micro enterprises and trade for pre-consumer textiles (garment waste or Jhut).

"So, the EU should take a proactive, supportive, and collaborative approach with stakeholders to formalise the Jhut sector while preserving livelihoods," he said.

The garments sector in Bangladesh is already facing a crisis given the tight margins and slowdown in global demand. However, local entrepreneurs in the sector would finance the required investment for the developing a circular economy, said Asif Ibrahim, chairman of Chittagong Stock Exchange PLC.

Saleudh Zaman Khan, vice-president of the Bangladesh Textile Mills Association, said producers need to consider developing a supply chain for cotton recycling and form local regulations for recycling.

Chowdhury Liakat Ali, director for the sustainable finance department of Bangladesh Bank, said they have taken various policy initiatives to promote sustainable finance and green banking to reduce greenhouse gas emissions and speed up investments in renewable energy, energy and resource efficiency, the circular economy and eco-projects financing, etc.

He added that the central bank fixes disbursement targets for banks with 15 percent of all loans and investments set for green financing and 20 percent for sustainable financing.​

 

[Saif]

Textile millers seek central bank intervention over unpaid $35 million

Textile millers have sought the central bank's intervention to secure payments for raw materials supplied to apparel exporters under back-to-back letters of credit (LCs) opened by commercial banks. Bangladesh Textile Mills Association (BTMA) said the banks are withholding over $35 million owed to

thefinancialexpress.com.bd

Textile millers seek central bank intervention over unpaid $35 million
Published :
Jun 13, 2024 20:48
Updated :
Jun 13, 2024 20:48

Textile millers have sought the central bank's intervention to secure payments for raw materials supplied to apparel exporters under back-to-back letters of credit (LCs) opened by commercial banks.

Bangladesh Textile Mills Association (BTMA) said the banks are withholding over $35 million owed to some 52 textile mills despite having issued maturity dates.

The BTMA, in a letter to the Bangladesh Bank (BB) on Thursday, said that after submitting buyers' acceptance and other related documents, including negotiating papers, the LC-opening banks have yet to make payments.

BTMA President Mohammad Ali Khokon signed the letter addressed to BB Deputy Governor Abdur Rouf Talukder.

"The BTMA member mills -- local fabric and yarn manufacturers -- have been facing severe liquidity crisis due to huge overdue payments, while many have been at risk of facing crisis," the letter read.

According to BTMA data, payments worth $35.86 million for the supply of yarn and fabric from 52 mills remained overdue.​