Refayet Ullah Mirdha

The simple step that Bangladesh took in the apparel trade four and a half decades ago has proven to be a giant leap as the country has emerged as the second-largest garment exporter globally after China. 

The unsold yarn at the spinning mills of Bangladesh is piling up abnormally because of a fall in work orders by 30 per cent for apparel items from international clothing retailers and brands. 

Although cotton prices have declined sharply in the international futures markets, spinners and garment exporters in Bangladesh are not feeling elated owing to the dearer US dollar, the energy crisis and the fall in demand for finished goods.    

America will continue to be a major export destination for apparel items made in Bangladesh as Washington is working with Dhaka to improve the condition at the factories in the country, said a senior official of the US. 

Plummy Fashions, a Narayanganj-based export-oriented knitwear factory, used to spend Tk 65,000 per month on diesel even two months ago. But the same factory now has to consume one month’s worth of fuel in a single day owing to rolling blackouts. 

Businesses yesterday reiterated their demand for uninterrupted gas and power supplies to industrial units as they are having to operate at half capacity because of the ongoing energy crisis.

Post-pandemic, the speed in planning and execution will be the determining factor for businesses to survive amid changing behaviour of consumers and the volatility in the global supply chain. 

Many thought exports from Bangladesh to Russia would come to a halt after the Russia-Ukraine war began in February as the transcontinental nation was slapped with numerous sanctions and embargoes that restrained its import activities.

Bangladesh is working on getting either a free trade agreement (FTA) or economic partnership agreement (EPA) signed with Japan, the most promising export market in Asia, with the commerce ministry having already prepared a relevant memorandum of cooperation (MoC). 

Rapid urbanisation, industrialisation and electrification in rural areas of Bangladesh has led to a boom in the country’s electrical cable industry over the past few years.

International buyers are consistently paying lower than the global average price to apparel suppliers in Bangladesh but higher to some of the country’s competitors, according to the International Trade Centre (ITC).

The knitwear segment has retained its position as the country’s biggest export earner in the readymade garment industry and among all the sectors of Bangladesh. 

The Bangladesh Trade and Tariff Commission (BTTC) is conducting further studies on possible outcomes of the country joining the world’s largest China-led trade deal, Regional Comprehensive Economic Partnership (RCEP), Senior Commerce Secretary Tapan Kanti Ghosh said yesterday.

Local garment manufacturers are pumping money to expand their capacity to produce technical garment items such as activewear and workwear since their demand is rising in the western markets. 

Apparel exports from Bangladesh will cross $95 billion by 2030 if the country can expand its share in the global market for manmade fibre (MMF) to 12 per cent from less than 5 per cent at present, according to a recent study.

Business and industrial activities were disrupted for several hours since yesterday afternoon as the national power grid failed, plunging half of the country into darkness.

The slowdown in demand and stronger US dollar worldwide has pushed down cotton prices in the international market, raising hopes of increased work orders from global brands and retailers among local garment makers.

Bangladesh has started the groundwork to begin negotiations for signing a Comprehensive Economic Partnership Agreement (CEPA) with India, as has been agreed upon by top leaders of both countries last month. 

The number of green garment factories in Bangladesh has reached 173 as two more units received the Leadership in Energy and Environmental Design (LEED) certification from the US Green Building Council (USGBC) yesterday.

Export earnings dropped 6.25 per cent year-on-year to $3.9 billion in September, the first fall in 14 months, as the cost-of-living crisis in the western countries took its toll on Bangladesh’s main foreign currency earning sector.