[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

How our RMG industry empowered women

The RMG industry has provided lakhs of women, with their first formal employment opportunities.

www.thedailystar.net

How our RMG industry empowered women

FILE PHOTO: STAR

Over the past few decades, Bangladesh has emerged as a global hub for the ready-made garment (RMG) industry. The sector has played a pivotal role in transforming the socioeconomic landscape of the country. At the heart of this transformation is the empowerment of women, who make up the vast majority of the RMG workforce. A report by the International Labour Organisation (ILO) reveals that, as of 2020, our RMG sector employs around 32 lakh women. This sector's growth has created numerous job opportunities for Bangladeshi women, contributing to their economic empowerment while also playing a vital role in the growth of the economy.

The RMG industry has provided lakhs of women, particularly from rural areas, with their first formal employment opportunities. This shift from informal, often agricultural work, to formal employment in garment factories has had profound implications for their economic status and independence.

Earning a regular income has allowed women RMG workers to contribute to their household finances, often making them primary breadwinners. This financial independence has given them decision-making power within their families and communities. These women now have the means to invest in their children's education, healthcare, and better living conditions, leading to a positive cycle of development and improved quality of life.

Employment in the garment sector has also facilitated skills development. Many women enter the industry with little or no formal education. Through on-the-job training and experience, they acquire valuable skills in sewing, quality control, and production management. Some factories also offer literacy programmes and vocational training, further improving their capabilities and future employment prospects.

Beyond economic benefits, the RMG industry has been instrumental in fostering social empowerment of women in Bangladesh. By stepping into the workforce, women have challenged traditional gender roles and norms that often confined them to domestic duties. The presence of women in factories has gradually shifted societal perceptions of women's roles as well. As more women work outside home, the acceptance of women as economic contributors has increased.

Working in the garment industry has also facilitated greater social mobility for women. Employment has enabled women to move from rural areas to urban centres, exposing them to diverse cultures and ideas. This exposure has broadened their horizons, increased their awareness of rights and opportunities, and inspired many to pursue further education and career advancements.

However, this growth is not without challenges. Workers often face issues such as stagnated wages, long working hours, and challenging working conditions. These challenges have also sparked advocacy and efforts to improve labour rights and working conditions in the industry. Indeed, the rise of the garment sector has led to the growth of labour unions and advocacy groups fighting for workers' rights. These organizations have been instrumental in negotiating better wages, improving working conditions, and ensuring compliance with the labour law. Women workers have played a crucial role in these movements, often leading protests and strikes to demand fair treatment.

The Bangladesh government, along with international bodies and NGOs, has taken steps to address these challenges. The government had to take initiatives such as the Accord on Fire and Building Safety in Bangladesh and the Alliance for Bangladesh Worker Safety to improve factory safety standards following the Rana Plaza disaster in 2013. Additionally, programmes aimed at promoting fair wages and gender equality in the workplace have been introduced, further supporting the rights of female garment workers.

Women's increased economic participation has contributed to community development. As women invest in their families and communities, there is a noticeable improvement in areas such as health, education, and infrastructure. Empowered women are more likely to participate in community decision-making processes, advocating for issues such as clean water, sanitation, and better schools.

I truly believe that Bangladesh's RMG industry is a testament to the transformative power of employment in empowering women and lifting them out of poverty. While challenges remain, the strides made in economic and social empowerment, skills development, and advocacy for rights are undeniable. As the industry continues to evolve, it holds the potential to further enhance the lives of crores of women, driving not only the economic growth, but also social progress and gender equality in Bangladesh.

Mostafiz Uddin is the managing director of Denim Expert Limited. He is also the founder and CEO of Bangladesh Denim Expo and Bangladesh Apparel Exchange (BAE).​

 

[Saif]

Bangladesh may see fastest growth in cotton consumption: report

Bangladesh and Vietnam are expected to experience the fastest growth in cotton consumption and trade over the decade due to their competitive labour and production costs, which will lead to significant expansions in their milling capacities, according to a global report...

www.newagebd.net

Bangladesh may see fastest growth in cotton consumption: report
Moinul Haque 15 July, 2024, 22:42

A worker oversees a cotton processing machine at a factory in Habiganj recently. Bangladesh and Vietnam are expected to experience the fastest growth in cotton consumption and trade over the decade due to their competitive labour and production costs, which will lead to significant expansions in their milling capacities, according to a global report. | New Age photo

Bangladesh and Vietnam are expected to experience the fastest growth in cotton consumption and trade over the decade due to their competitive labour and production costs, which will lead to significant expansions in their milling capacities, according to a global report.

The report titled 'OECD‑FAO Agricultural Outlook 2024‑2033' said that over the next decade, global consumption of raw cotton was projected to increase by 1.7 per cent annually, driven by population growth and rising incomes in middle- and low-income countries.

The demand in the textiles and apparel sectors, as well as competition from substitutes, would remain key factors influencing raw cotton consumption, said the outlook, a collaborative effort by the Organisation for Economic Co-operation and Development and the Food and Agriculture Organisation of the United Nations.

The report projected that the global cotton trade would expand by 2.1 per cent annually, reaching 12.4 million tonnes by 2033, driven largely by increased mill use in Bangladesh and Vietnam, which heavily rely on imports to support their expanding textile sectors.

It also said that imports of raw by Bangladesh and Vietnam would grow by over 3 per cent annually, significantly contributing to global trade dynamics.

The OECD-FAO Agricultural Outlook said Bangladesh's mill consumption of cotton would increase to 2.42 million tonnes, which was 1.71 million tonnes in 2023.

The report showed that the country's import share of cotton would be 18 per cent in 2023 while the China would gain the highest 23 per cent of global share.

The United States would remain the largest exporter, with its share of world trade reaching 31 per cent by 2033, it mentioned.

Global cotton production is projected to steadily increase to 29 million tonnes by 2033, marking a 17-per cent rise from 21.14 million tonnes in the base year of 2004.

The growth will primarily stem from key producers; India is expected to contribute approximately 38 per cent to the global increase, followed by the United States (27 per cent) and Brazil (21 per cent).

The report also said that the reliance on imports, coupled with the projected growth in consumption, underscored Bangladesh's crucial role in the global cotton market.

According to the outlook, the phase-out of the Multi-Fibre Arrangement in 2005 initially favoured Chinese textile producers, but Bangladesh and Vietnam saw robust growth in their textile industries driven by abundant labour, low production costs and government support measures.

It said that Vietnam's accession to the World Trade Organisation in 2007 and significant foreign direct investments, particularly from Chinese entrepreneurs, further boosted its textile sector.

Additionally, free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the EU-Vietnam Free Trade Agreement facilitated greater market access for Vietnamese textile exports.

Similar foreign investments and FTAs contributed to Bangladesh's emergence as a major global player in textiles.

Furthermore, the report also said that the US-China trade dispute increased mill use in Bangladesh and Vietnam, driving their textile industry expansions.

In Bangladesh, investments in spinning capacity driven by increasing domestic demand for yarn and fabric are expected to raise cotton fibre consumption by 3.3 per cent annually, solidifying its position in the global textile market and significantly contributing to its economic development, the outlook observed.

Despite this shift, China is expected to retain its position as the largest cotton processing country in 2033, followed by India, with annual consumption growth projected at 0.9 per cent and 1.5 per cent respectively over the next decade.

According to the outlook, the global cotton production would grow as a result of improved yields and higher compliance with sustainable standards.

The leading producing countries — India, China, the United States, Brazil and Pakistan — are expected to account for about 77 per cent of global output by 2033.

The report identified that over the past decades, global demand for textiles fibres has sharply increased, driven mainly by population and income growth, particularly in low- and middle-income countries and the expanding demand has been largely supplied by chemical fibres.

Synthetic fibres offered diverse advantages over cotton, such as durability, wrinkle resistance, moisture-wicking properties and competitive pricing, leading the textile manufacturing industry to increasingly favour them over cotton fibres, it said.

As a result, global consumption of natural fibres, including cotton, reached its peak at 26.5 million tonnes in 2007, but declined to approximately 24.4 million tonnes in the period from 2021 to 2023.

Since the early 1990s, non-cotton fibres have steadily gained market share, reaching 78.2 per cent in 2023, while the cotton's share declined to 21.8 per cent, the report showed.

It also said that per capita consumption of non-cotton fibres continued to rise significantly, contrasting with stagnant or declining trends in per capita cotton consumption in recent years.

According to the Bangladesh Textile Mill Association, the country's cotton imports in the financial year 2023-24 stood at 7.5 million bales.​

 

[Saif]

Garment sector reeling from shutdown

DBL Group, a leading garment exporter, usually ships apparel worth around $50 million each month.

www.thedailystar.net

Garment sector reeling from shutdown

Most garment and textile factories reopened yesterday after being kept shut for four days due to violence centring the quota reform movement and the imposition of a nationwide curfew. The units are now racing to meet the strict lead times set by international buyers. The photo was taken at a garment factory in the capital's Jurain yesterday. Photo: Palash Khan

DBL Group, a leading garment exporter, usually ships apparel worth around $50 million each month.

But this month, their shipment will fall by at least 30 percent since production had to be halted following a spell of violence centring the quota reform movement and the government's imposition of a nationwide curfew.

Being a large group, DBL has its own production facilities, including spinning and dyeing units alongside factories for production of garments and accessories.

However, all their units were shut because of the violence over the past four days. At the same time, a few goods-laden trucks were waiting at the Chattogram port to unload export cargo.

"So, the losses are enormous," said DBL Group Managing Director MA Jabbar, adding that the biggest blow was the dent to the confidence of international clothing retailers and brands.

DBL Group is not alone.

As production remained halted for four days, all small, medium and large garment exporters faced similar challenges.

Moreover, business owners could not contact international business partners because of an internet blackout since July 18. However, as broadband internet services gradually began to come back online since Tuesday night, the situation has been improving.

The impacts of the shutdown were felt more acutely by small and medium factories, which cannot afford big losses given their comparatively weaker financial strength.

A factory owner in Rupganj, who ships T-shirts and polo shirts worth $6 million each month to American and Canadian retailers, could not timely receive raw materials, sourced from both at home and abroad.

The unit needs at least $3 million worth of raw materials each month, including yarn, which accounts for 70 percent of the total raw material requirement, chemicals and fabrics.

Although the factory owner placed orders with a few local spinners and millers for yarn and fabrics, they could not supply the raw materials as transport operators stayed off the roads fearing violence.

Effectively, the shutdown put factory owners in a double bind because they could neither contact buyers nor continue production.

This is the peak time to confirm prices for goods to be shipped next summer and spring, but the owner could not send quotes online due to the internet blackout.

Now, more money will have to be spent since employees will have to work overtime in order to adhere to the strict lead time set by international buyers, the owner said, asking not to be named.

There were hopes that business would regain momentum from July onwards compared to previous seasons, when the impacts of the Covid-19 pandemic, Russia-Ukraine war, and high inflationary pressures took a toll on business. Instead, a new disruption has shaken up the sector, the owner added.

Syed M Tanvir, managing director of Pacific Jeans, a leading denim exporter based in Chattogram, shared a similar experience.

Tanvir declined to comment on details regarding losses, only stating that they were huge. He said their factories have been closed since Saturday, adding that the supply chain was also severely disrupted.

The lull in production at garment units has also adversely impacted those involved in the primary textile sector, including the main suppliers of yarn, fabrics and other raw materials.

Hundreds of tonnes of unsold yarn have piled up in mills due to the shutdown, transport operators' reluctance to carry goods and a fall in demand.

Fazlul Haque, managing director of Israq Spinning Mills, said he usually sells 100 tonnes of yarn each day. But unsold yarn began piling up before the beginning of the shutdown. At present, the situation has been exacerbated and there is a stockpile of over 2,000 tonnes of yarn at his factory.

Mohammad Ali Khokon, president of the Bangladesh Textile Mills Association (BTMA), said huge losses were incurred, adding that an assessment was ongoing. The BTMA called a meeting of the mill owners today to get more information about losses from owners, he said.

However, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has already completed its primary assessment of losses, saying that they amounted to Tk 6,400 crore over the past four days.

BGMEA President SM Mannan Kochi said that garment factories would have to pay around Tk 1,000 crore to workers despite no work being done over the past four days.

The amount of losses in the garments accessories sector is also high, he added.

According to the BGMEA, nearly 950 trucks with exportable garment items were waiting at the Chattogram port to be unloaded.

Garment and textile mills resumed operations yesterday, with workers and officials using their official identity cards as curfew passes.​

 

[Saif]

RMG exporters in a race against time to offset losses

Local apparel exporters are in a frantic race to recover the losses they incurred during the latest spell of violence centring the quota reform movement and nationwide curfew, with international retailers and brands pressuring them to ensure timely delivery of goods.

www.thedailystar.net

RMG exporters in a race against time to offset losses

Photo: Star/File

Local apparel exporters are in a frantic race to recover the losses they incurred during the latest spell of violence centring the quota reform movement and nationwide curfew, with international retailers and brands pressuring them to ensure timely delivery of goods.

Following the shutdown of factories and mills for four days, apparel exporters are planning to keep their production units open on Friday and pay overtime bills to meet lead times as they believe increasing productivity can offset a portion of losses.

Due to the situation over the past week, suppliers had to cancel hundreds of pre-scheduled meetings and factory inspections. They also could not communicate with foreign buyers due to an internet blackout, which began on July 18 and persisted until July 23.

The disruption in production, delivery and shipment took place at a time when the sector is struggling to recover its international trade.

Bangladesh's garment shipments fell 5.2 percent to $33.04 billion in the July-May period of the last fiscal year compared to the same period a year prior, according to data from the Bangladesh Bank.

International buyers are also piling pressure on apparel exporters to ship goods quickly as they have to fill their stores with new designs ahead of Christmas, the biggest retail sales extravaganza in the Western world.

The months of July, August and September are the peak time for the shipment of goods to be sold during Christmas.

"Buyers do not want to hear about any crisis. They want on-time delivery of goods," said a garment exporter who ships T-shirts and polo shirts to the US and Canada.

The global apparel supply chain has been struggling to recover from the severe fallout of the Covid-19 pandemic, the Russia-Ukraine war, and historic inflationary pressure on Western consumers.

It was dealt another blow this year in the form of the Red Sea crisis, which triggered commercial vessel operators to nearly double shipping charges.

The shipment of goods from Bangladesh to Europe is taking at least a month more than in previous times due to the crisis, which has forced commercial vessel operators to forgo the traditional route through the Suez Canal and navigate an additional 3,500 kilometres around the Cape of Good Hope in Africa.

As such, in many cases, international clothing retailers and brands are asking for expensive air shipments so goods can reach stores timely.

If a kilogramme of garment is sent to Europe through waterways, it costs around 10 cents or less. But if the same shipment is sent through air from Dhaka airport, it costs more than $4.

An apparel exporter, asking not to be named, said: "I have planned to keep my factory open on Friday so I can ship goods timely and avoid work order cancellations and expensive air shipment."

However, another exporter said it would be difficult to cater to the work orders because of a raw material shortage, which happened because goods could not be transported to factories over the past week.

Faruque Hassan, managing director of Giant Group, said his American buyers could not place work orders during the past week. So, he sent two of his officers to the US so that he does not lose business.

It will take more than one month to overcome the losses of one week, he lamented, adding that port, customs and transport services should be expedited so the business can run smoothly.

"My buyers are yet to seek discounts or cancel orders, but I am sure that I have to make a lot of air shipments to meet deadlines," said another major exporter, seeking anonymity.

Overtime is the main measure to recover losses, he said, adding that customers are not willing to accept any delays in shipment as they need goods quickly to prepare for Christmas.

Mohammad Ali Khokon, president of Bangladesh Textile Mills Association, said the primary textile sector, which includes spinning, weaving, dyeing and finishing activities, lost $58.8 million over the last six days because of shutdown and internet blackout, which is about $9.8 million per day.

Although buyers are not cancelling work orders or seeking discounts, they are putting a pause on work orders or delaying them, which is creating a stockpile of yarn and fabrics in mills.

Khokon also sought a government waiver from extra port charges during the shutdown.

SM Mannan Kochi, president of the Bangladesh Garment Manufacturers and Exporters Association, said he would sit in a meeting in a day or two with the international buyers and request them to not cancel work orders or seek discounts.​

 

[Bilal9]

RMG exporters in a race against time to offset losses

Local apparel exporters are in a frantic race to recover the losses they incurred during the latest spell of violence centring the quota reform movement and nationwide curfew, with international retailers and brands pressuring them to ensure timely delivery of goods.

www.thedailystar.net

RMG exporters in a race against time to offset losses
View attachment 7097
Photo: Star/File

Local apparel exporters are in a frantic race to recover the losses they incurred during the latest spell of violence centring the quota reform movement and nationwide curfew, with international retailers and brands pressuring them to ensure timely delivery of goods.

Following the shutdown of factories and mills for four days, apparel exporters are planning to keep their production units open on Friday and pay overtime bills to meet lead times as they believe increasing productivity can offset a portion of losses.

Due to the situation over the past week, suppliers had to cancel hundreds of pre-scheduled meetings and factory inspections. They also could not communicate with foreign buyers due to an internet blackout, which began on July 18 and persisted until July 23.

The disruption in production, delivery and shipment took place at a time when the sector is struggling to recover its international trade.

Bangladesh's garment shipments fell 5.2 percent to $33.04 billion in the July-May period of the last fiscal year compared to the same period a year prior, according to data from the Bangladesh Bank.

International buyers are also piling pressure on apparel exporters to ship goods quickly as they have to fill their stores with new designs ahead of Christmas, the biggest retail sales extravaganza in the Western world.

The months of July, August and September are the peak time for the shipment of goods to be sold during Christmas.

"Buyers do not want to hear about any crisis. They want on-time delivery of goods," said a garment exporter who ships T-shirts and polo shirts to the US and Canada.

The global apparel supply chain has been struggling to recover from the severe fallout of the Covid-19 pandemic, the Russia-Ukraine war, and historic inflationary pressure on Western consumers.

It was dealt another blow this year in the form of the Red Sea crisis, which triggered commercial vessel operators to nearly double shipping charges.

The shipment of goods from Bangladesh to Europe is taking at least a month more than in previous times due to the crisis, which has forced commercial vessel operators to forgo the traditional route through the Suez Canal and navigate an additional 3,500 kilometres around the Cape of Good Hope in Africa.

As such, in many cases, international clothing retailers and brands are asking for expensive air shipments so goods can reach stores timely.

If a kilogramme of garment is sent to Europe through waterways, it costs around 10 cents or less. But if the same shipment is sent through air from Dhaka airport, it costs more than $4.

An apparel exporter, asking not to be named, said: "I have planned to keep my factory open on Friday so I can ship goods timely and avoid work order cancellations and expensive air shipment."

However, another exporter said it would be difficult to cater to the work orders because of a raw material shortage, which happened because goods could not be transported to factories over the past week.

Faruque Hassan, managing director of Giant Group, said his American buyers could not place work orders during the past week. So, he sent two of his officers to the US so that he does not lose business.

It will take more than one month to overcome the losses of one week, he lamented, adding that port, customs and transport services should be expedited so the business can run smoothly.

"My buyers are yet to seek discounts or cancel orders, but I am sure that I have to make a lot of air shipments to meet deadlines," said another major exporter, seeking anonymity.

Overtime is the main measure to recover losses, he said, adding that customers are not willing to accept any delays in shipment as they need goods quickly to prepare for Christmas.

Mohammad Ali Khokon, president of Bangladesh Textile Mills Association, said the primary textile sector, which includes spinning, weaving, dyeing and finishing activities, lost $58.8 million over the last six days because of shutdown and internet blackout, which is about $9.8 million per day.

Although buyers are not cancelling work orders or seeking discounts, they are putting a pause on work orders or delaying them, which is creating a stockpile of yarn and fabrics in mills.

Khokon also sought a government waiver from extra port charges during the shutdown.

SM Mannan Kochi, president of the Bangladesh Garment Manufacturers and Exporters Association, said he would sit in a meeting in a day or two with the international buyers and request them to not cancel work orders or seek discounts.​

It's only been about a week's worth of delays, I am sure the factories will bounce back into production nicely.

What will not be recovered however is the lives lost because of this lady's bullheaded attitude and greed. People will not forget this easily. There will be a high cost exacted from her and her sponsors.