Textile excellence bangladesh edition february 2022

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Vietnam Apparel Industry More
Competitive Than Bangladesh : Report
I
n terms of product quality, lead time, and
sustainability, Bangladesh's clothing sec-
tor is not as good as its neck-and-neck
market peer Vietnam, according to a recent
World Trade Organisation (WTO) competi-
tiveness report, as Dhaka scores remark-
ably lower than Hanoi on ten indices out of
a total of twelve.
A comparison of lead times reveals that
Vietnam is better able in sourcing raw mate-
rials, according to the report, and also can
release the imported consignment at its
ports within 24 hours.
In contrast, Bangladesh takes 48 hours
to one month to release raw material
imports for the apparel industry, said local
garment factory owners. They said
Vietnam's fashion industry on the ten leading indices logs at least one score
ahead of Bangladesh, while the gaps are 1.5 and 2 respectively on
sustainability and political stability.
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FEBRUARY, 2022 PAGES 24

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Cover Story Textile Excellence Bangladesh Edition „ February 2022
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Vietnam Apparel Industry More...
Vietnamese workers are 10%-15% more efficient in manufacturing,
while the country can deliver the final product to European buyers
10-15 days earlier than Bangladesh.
Then comes the shipment time. Vietnam directly sends the prod-
ucts to the buyers from its seaports, but Bangladesh cannot. Due to
the unavailability of a deep-sea port, feeder vessels have to take the
products to countries such as Singapore and Sri Lanka, where the
products are transferred to mother vessels for shipment to Europe
and the USA.
Other major gauges of the recent WTO report, titled, Textiles and
clothing in Asian graduating LDCs: Challenges and options – pre-
pared after surveying at least 150 exporters and 30 global brands
and retailers – are ability to create value-added products, innovation,
efficiency, flexibility of order quantity, financial stability and political
stability.
Vietnam's fashion industry on the ten leading indices logs at least
one score ahead of Bangladesh, while the gaps are 1.5 and 2
respectively on sustainability and political stability, shows the report.
The report was prepared with data contributed by several UN agen-
cies including the United Nations Conference on Trade and
Development (UNCTAD).
Only on two indicators – price and tariff advantage, Bangladesh
is ahead of Vietnam and China thanks to duty-free access to key
global markets and local cheap labour. The country is a little ahead
in some indicators than three other least developed countries in Asia
including Cambodia, Laos and Nepal.
However, Fazlee Shamim Ehsan, vice-president at the BKMEA,
said he does not agree with all the indicators showing Bangladesh
apparel behind Vietnam. None is supposed to be ahead of us in
terms of flexibility of order quantity. We accept orders so flexibly that
buyers can take several thousand pieces to only a few hundred
pieces from us, he claimed.
The BKMEA vice-president also defended the quality of made-in-
Bangladesh products by saying, We manufacture products as buy-
ers want. Since Bangladesh is capable of satisfying the brands with
the quality, the country is getting increasing work orders. He, how-
ever, agreed that Bangladesh has a lot to improve in terms of higher
value addition.
Faruque Hassan, president at the Bangladesh Garment
Manufacturers and Exporters Association (BGMEA), too said the
report in some cases surprisingly underrated the progress made by
Bangladesh garment industry over the past decade.
The report mentions environmental compliance related risks as
a downside for sourcing from Bangladesh, while the industry has
made a huge stride to transform workplace safety, workers' wellbe-
ing and environmental sustainability. The rating seems to be inappro-
priate, he noted.
Bangladesh will no longer be entitled for duty-free market access
after 2029, as the country will graduate from least developed coun-
try club in 2026 and its export will enjoy facility extension for anoth-
er three years until 2029.
According to the report, Bangladesh may concede a loss of US$
5.37 billion due to the impact of LDC graduation on export.
Still there will be orders
The WTO report says fashion brands and retailers adopt diverse
sourcing considerations, including cost, speed to market, flexibility,
agility and compliance risks.
With China and Vietnam as critical sourcing bases, fashion
brands mostly see the least developed countries Bangladesh,
Cambodia, Laos and Nepal as part of their diverse sourcing loca-
tions. According to the report, Turkey is another major sourcing des-
tination for European Union-based fashion companies, while EU-
based buyers source fewer complex products (such as dresses and
outerwear) from Bangladesh, Cambodia, Laos and Nepal due to their
limited production capacities.
The report mentions, fashion brands and retailers may still find it
attractive to source from Bangladesh, Cambodia, Laos and Nepal
after their LDC graduation. Major brands and retailers believe LDC
graduation may only modestly affect their sourcing. It also said that
in the next three to five years, they will increase their sourcing from
Bangladesh and Cambodia.
While there may be some hardships, some issues with adjusting
to a world without GSP benefits, the Bangladeshi RMG industry has
been learning lessons from its competitors, investing in the latest
technologies, and environmental and worker safety processes and
standards. Even without the GSP benefits, Bangladeshi RMG export
sector will be a force to reckon with. It’s time to graduate to a more
complex product mix.■
....Contd. From Page 1

LDC graduation presents an opportunity for the countries to position their textile
and clothing sector higher up the global value chain.
Textile Excellence Bangladesh Edition „ February 2022 Cover Story 5
A
sian countries graduating from the
category of least developed coun-
tries (LDCs) need to take measures
to bolster their textile and clothing sector,
according to a report prepared by the World
Trade Organization (WTO) and three UN
bodies.
The report titled The Textile and
Clothing Sector in Asian Graduating Least
Developed Countries: Challenges and Ways
Forward, focuses on countries such as
Bangladesh, Laos and Nepal, where the tex-
tile and clothing sector is a major industry
and will be significantly impacted by LDC
graduation.
Combined textile and clothing
exports from LDCs in Asia account for
8% of the global total, which contracted
in 2020 due to the pandemic. The sector
is an important source of employment,
especially for women.
LDC graduation offers opportunity
The report notes that the LDC gradua-
tion presents an opportunity to move higher
up the global value chain. Manufacturers
consulted for the report said they expected
graduation to impact their export perform-
ance. In addition to facing higher tariffs,
most garment manufacturers rely heavily on
imported textiles and will struggle to meet
more restrictive rules of origin criteria after
graduation.
How graduation will affect sourcing
Many major clothing brands and retail-
ers consulted for the report believe that LDC
graduation will only modestly affect their
sourcing and are planning to expand sourc-
ing from graduating LDCs over the next
three to five years.
Workplace safety, working conditions,
environmental compliance, innovation and
speed to market are increasingly becoming
major factors for brands in their long-term
sourcing.
We have consulted many brands and
retailers on their future sourcing plans and
how it affects graduating LDCs. What we
have found is that major buyers are consol-
idating their sourcing portfolio and, increas-
ingly, they are seeking to source from larger,
often multinational apparel manufacturers,
said Matthias Knappe, programme manager
of Fibres, Textiles And Clothing at the
International Trade Centre (ITC).
Bangladesh – A Case Study
● The study notes the lack of export diversi-
fication among the Bangladesh RMG
exporting units and limited market reach.
● More than one-third of the firms ship to 3-
5 countries only, while another 16%
Strengthening Garment Industry Vital For
LDC Graduation: Report
...Contd. On Page 6
Source: EPB
Growth rates of RMG and Non-RMG exports (%)

Cover Story Textile Excellence Bangladesh Edition „ February 2022
6
export to 6-10 countries
● Export markets for woven manufacturers
was relatively more diversified than for
knitwear.
● Several firms reported that they were effec-
tively exploring new market opportunities
amongst others – in Brazil, China, India and
South Africa.
● The US is considered the second preferred
country in terms of marketing more prod-
ucts, followed by Japan, Russia, UK,
Canada and Korea.
Product complexity
● Several exporters produce complex items,
which require automated technology, and
versatile worker skills.
● One firm reported producing high-value
denim items which uses low ounce
stretch, sea plastic recycled fabrics, regen-
erated cotton fabrics, jute blended fabrics
and Tencel fibres, explaining its niche mar-
ket advantages.
● 40% of woven manufacturing firms believe
their products are difficult to produce by
other firms and countries.
Technology and skill upgradation
● 85% of sample firms have plans for
upgrading products and processes,
upgrading technology and worker skills.
● Firms are adopting energy saving and GHG
emission reduction technologies, soft-
ware-based production tracing, digitalising
administrative and other operations.
● Many reported producing and marketing
their own designs alongwith supplying the
regular import orders.
● One firm reported producing a complete
pair of denim trousers in 17 minutes, aim-
ing to bring it down to 14 minutes, at par
with global efficiency standards.
LDC graduation preparedness
Currently, Bangladesh enjoys preferential
market access in close to 50 countries. The
loss of tariff preferences after graduation
could thus trigger tremendous competitive-
ness pressure for Bangladesh. Another
important aspect of LDC graduation would be
a constrained policy space to support the
apparel sector.
● Many are of the view that as a bulk produc-
er, Bangladesh has tremendous depth and
competitiveness strength.
● They also believe that buyers probably
drive hard bargains in Bangladesh due to
the preferential tariffs.
● Moreover, business is already improving
due to the US-China trade war.
● Technology upgradation could happen at
the cost of employment generation.
● Seamless infrastructure is of course, much
needed, to reduce cost of doing business.
● Exporters could benefit from extended
transition period for graduating LDCs,
securing preferential trade deals. ■
Strengthening Garment Industry...
Source: UNCOMTRADE ITC Trade Map
Bangladesh'e market share in partner countries, 2000-20 (%)
Export subsidy as % of export earnings (FY2003-FY2019)

Textile Excellence Bangladesh Edition „ February 2022 Cover Story 7
Team Group Targets US$ 1 Billion
Export By 2026
T
eam Group, a leading garment
exporter, has targeted to export
goods worth US$ 1 billion by
2026, when Bangladesh is scheduled to
officially make the United Nations status
graduation from a least developed to a
developing country.
To put this into perspective,
Bangladesh earned US$ 4.85 billion
from merchandise exports in January
with apparel shipments accounting for
about 85% of it.
Apart from manufacturing textile and
clothing, the conglomerate has a gar-
ment buying house, a pharmaceutical
company and real estate development
firm. Among the ventures, the garment
buying house's exports last year stood
at US$ 270 million, said Abdullah Hil
Rakib, managing director of Team
Group.
Last year, the group's 4A Yarn
Dyeing exported garments worth US$
36 million and at the end of the current
year, Rakib expects to attain US$ 70
million. I am very much hopeful that
both the pharmaceuticals and buying
house would be very important compo-
nents in achieving the US$ 1 billion tar-
get, he said.
The group has been preparing for
the graduation challenges, such as ero-
sion of trade preferences, so that its
exports maintain robust growth. Mainly
producing outerwear for customers in
Europe and the US, 4A Yarn Dyeing has
made strong improvements in compli-
ance to laws and diversified its produc-
tion base, taking on high-end value
added garment items so that buyers pay
better prices.
As a result, almost all important
global clothing retailers and brands
have been placing work orders in bulk
quantity with 4A Yarn Dyeing. It has also
received the United States Green
Building Council's Leadership in Energy
and Environmental Design certification
of platinum standard.
Nearly all of the factory's 7,000
workers stay near the production facili-
ty at Kaichabari, Banchabarri, Baipail in
Savar under Dhaka district. So coming
to work does not require transportation
on vehicles, which helped reduced car-
bon emissions, said Rakib.
The factory is able to harvest 86.3%
of the rain that falls on it premises while
solar panels, LED lights and architectur-
al changes making better use of sunlight
saves up on around 50% in energy use.
With the higher inflow of work
orders from international retailers and
brands, Team Group is going for
a massive expansion of capacity, said
Rakib.
Currently, the factory's production
runs on a five lakh square feet space,
creating mainly outerwear for brands
like Guess, Next, Tommy Hilfiger, Calvin
Klein, s. Oliver and many more
European and American retailers and
brands.
By 2025, the group plans on open-
ing another factory of the same size just
near the current one. The factory being
planned will mainly produce manmade
fibres to reduce import dependence on
China, India and other countries.
Rakib said the next business of
Bangladesh would be of manmade fibre
and the group would mainly produce the
garment items out of manmade fibre.
The company is also upgrading
machines to achieve higher productivity,
and finer production.
Rakib has been transforming the
production facility mainly targeting the
LDC graduation as the country will not
be able to enjoy the GSP benefit after
the graduation.
I have been gearing up my produc-
tion facility in such a way so that the
retailers and brands cannot ask any
question regarding the compliances and
production facilities, for bringing effi-
ciency and for getting better prices in
the time of fierce competition after the
graduation, Rakib said. ■
“
By 2025, Team Group plans on doubling its pro-
duction capacity, focussing on production of man-
made fibres and apparel. The company has begun
upgrading machines to achieve higher productivity,
and finer production. This is in preparation for
Bangladesh’s LDC graduation when many trade
preferences will disappear.
“

Logistics Textile Excellence Bangladesh Edition „ February 2022
8
T
he container ship Songa Cheetah left
the Chattogram port for the Port of
Ravenna in Italy with 952 TEUs
(Twenty-Foot Equivalent Units) of export
goods last week. This is the first time a ship
will directly carry goods from the
Chattogram port to a European port, taking
only 16 days.
About 98% of the export products on
Songa Cheetah are readymade garments
and the remaining 2% are handicrafts,
leather and jute products. Once the goods
reach the Port of Ravenna, they will be deliv-
ered to various destinations in Europe as per
the buyers' demand, said Mohammed
Rashed, chairman of Reliance Shipping and
Logistics Limited.
According to shipping agents, current-
ly, feeder vessels first transport
Bangladeshi goods from the Chattogram
port to transhipment ports – Colombo,
Singapore, and Tanjung Pelepas and Port
Klang of Malaysia – and some ports in
China. There, the containers are loaded
onto bigger vessels before they are sent to
their final destinations in Europe. It takes
around 40 days to carry goods from
Bangladesh to Italy in this way.
The new direct shipping route between
Bangladesh and Italy will decrease the trans-
portation time by around 24 days and save
costs by 40%.
Italian shipping company Kalypso
Compagnia di Navigazione has introduced
the direct service with two vessels: Songa
Cheetah and Cape Flores. The Cape Flores
arrived at the Chattogram port on 24
December 2021 with empty containers but
did not carry any exports on the way back
to Europe.
Considering the importance of garment
exports, the Chattogram Port Authority will
prioritise ships on Italy-Bangladesh route in
providing facilities, including berthing and
key gantry crane, said Rear Admiral M
Shahjahan, Chairman, Chattogram Port
Authority, at the inauguration of the
Bangladesh-Italy direct route.
The direct shipping route has started a
landmark chapter in our economy. If other
shipping lines want to launch such a direct
route, the port authorities will extend all pos-
sible cooperation, he added.
Mahbubul Alam, President, Chattogram
Chamber of Commerce and Industry, said,
Bangladesh would be ahead of Vietnam in
terms of garment exports if direct container
shipping on the Italy-Bangladesh route can
be kept uninterrupted because it will save
lead time and cost. ■
D
anish shipping company Maersk Bangladesh, in part-
nership with Ispahani Summit Alliance Terminals
Limited (ISATL), is all set to build a 200,000 sq. ft
custom bonded warehouse in the port city of Chittagong even
as the new warehouse will double the existing capacity at
ISATL and add around 8% additional space to the existing
ecosystem in Chittagong.
According to reports, construction of the new CFS has
already started and is expected to be completed by the end of
2022 in a phased manner. Said Angshuman Mustafi,
Managing Director of Maersk Bangladesh, “Maersk’s commit-
ment to connect and simplify our customers’ supply chains
means that we look at long-term solutions.” Maersk will also,
reportedly, offer customers barcode and RFID scanning,
Garment on Hanger facility, sorting, product audit, labelling,
etc. Further, the new facility is, reportedly, being built by
benchmarking international best practices in terms of safety
and other compliance guidelines. ■
Direct Freight Route To Europe Starts As
Songa Cheetah Leaves Ctg
Maersk To Build Warehouse In
Chittagong: Reports
The new direct route will decrease transportation time by around 24 days,
and save costs by 40%

Textile Excellence Bangladesh Edition „ February 2022 corporate update 9
Robintex’s Mega Solar
Rooftop Project
MJ Group Adopts H2H
Solution
R
obintex Group, a Germany-
Bangladesh joint venture,
has set up the country’s
largest industrial solar rooftop
project. Robintex has set up a
mega 3.2 MWp rooftop solar plant,
on its 11 buildings. The company
has partnered with Joules Power
Ltd (JPL).
With this mega solar power
plant, it expects to reduce GHG
emission at least by 40% and off-
set 81,446 tons of carbon emis-
sions during the plant’s 20 years
of operation.
Renewable energy makes busi-
ness sense as power supply and
price is unstable in the country.
More importantly, the company
realises the urgent need to adopt
practices that save the environ-
ment. The current project will meet
almost 50% of the company’s
daily power demand. ■
H
SBC Bangladesh has
established a Host-to-Host
Integration (H2H) solution
for MJ Group, one of the largest
RMG manufacturers in the coun-
try.
The digital service will enable
MJ Group to process a variety of
local payments directly from their
ERP (Enterprise Resource
Planning) system, said a press
release.
Inauguration of the virtual
event was attended by MJ Group
Managing Director Salahuddin
Ahmed, HSBC Bangladesh
Country Head of Wholesale
Banking Kevin Green and seniors
from both the organisations.
Our company continuously
welcomes value addition for the
betterment of business so that we
can pass on the benefits to the
society. HSBC's paperless solution
will help MJ Group significantly
to fullfil our objective, MJ Group
Managing Director Salahuddin
Ahmed said.
He also appreciated the bank's
support and smooth implementa-
tion within the planned turnaround
time.
Customers' expectations and
technology capability are evolving
at speed, so we work in agile, cus-
tomer-focussed, cross-functional
teams to test, learn and launch
new products and features at a
faster pace. With our innovative
financial solutions, I am sure that
MJ's H2H connectivity will
ensure a seamless end-to-end
flow in their working capital man-
agement, said HSBC Bangladesh
Country Head of Wholesale
Banking Kevin Green ■
Paramount Textile To Raise
Tk 1.50 Bln Through
Preference Shares
Paramount Textile, a sister concern of Paramount
Group, has decided to issue 150 million fully
redeemable non-convertible cumulative preference
shares, to raise funds worth Tk 1.50 billion for five-
year tenure, the company said in a filing. The funds
will be utilised for the upcoming project expansion
and to pay-off a portion of high-cost short term
loan.
Ring Shine Textiles Needs
Tk 30 Cr To Stay Afloat
Ring Shine Textiles has sought BSEC’s
approval to utilise Tk 30 crore of its IPO funds to
run the business. It has utilised Tk 90 crore of its
Tk 150 crore in IPO funds, raised upon listing on
the stock exchanges in 2019. The company spent
Tk 50 crore on debt servicing and Tk 40 crore on
its factory which was out of operation for a long
time.
CA Textiles To Issue New
Shares To Alif Group
Troubled CA Textiles wants to increase its
paid-up capital by Tk 50 crore through issuing new
shares to Alif Group, for reopening its factory
which has not been in operation for more than four
years. The company will seek approval from its
shareholders in its EGM on March 30.
Alltex Shares Jump 19% On
Sudden Profit
The troubled home textile exporter, which had
been consistently incurring huge losses since
2017, posted Tk 1.36 in earnings per share (EPS)
for the second quarter of the current fiscal year.
The company reported profits for the October-
December quarter alongside a meagre 1% cash
dividend only for the general shareholders. ■
News In Brief

Cotton Update Textile Excellence Bangladesh Edition „ February 2022
10
Cotton Prices To Pick Up 5% In 2022 On
Rising Demand, Limited Crops In India, US
A
new report from IndexBox -
World - Cotton Lint - Market
Analysis, Forecast, Size, Trends
and Insights, estimates a 5% increase in
global cotton prices in 2022. Here is a
summary of the report's key findings.
In 2022, cotton prices are expected
to gain 5% y/y, as last year's ending
stocks are rapidly reduced amid strong
global demand outpacing available sup-
ply. Last year, the average cotton price
soared by 41% y/y to US$ 2.23 per
kg. In 2021, the average cotton
price surged by 41% y/y to US$ 2.23
per kg.
Despite the global cotton production
rebounded after a 2020's drop last year,
reaching the pre-pandemic level of 26.3
million tonnes, growing demand out-
strips supply. In H1 2022, cotton prices
are projected to increase, as global pro-
duction at the beginning of the year is
lower than in the previous months due
to smaller crops in India and the US.
This year, the average annual cotton
price is expected to pick up 5% y/y to
approx. US$ 2.34 per kg. Instigated by
boosting demand and high domestic
cotton prices, China is forecast to ramp
up imports sharply, also stimulating the
price rally.
Global Cotton Lint Exports by Country
In 2020, the amount of cotton lint
exported worldwide was estimated at
9.4 million tonnes, picking up by 5%
compared with the previous year's fig-
ure. In value terms, supplies contracted
to US$ 14.6 billion (IndexBox esti-
mates). The US (3.8M tonnes) repre-
sented the major exporter of cotton lint,
mixing up 41% of total exports. Brazil
(2.1M tonnes) held the second position
in the ranking, distantly followed by
India (960K tonnes). All these countries
together held near 33% share of total
supplies.
Greece (289K tonnes), Benin (280K
tonnes), Nigeria (212K tonnes),
Australia (170K tonnes) and Burkina
Faso (167K tonnes) followed a long way
behind the leaders. In 2020, the most
notable rate of growth in terms of ship-
ments amongst the key exporting coun-
tries was attained by India (+55.9% per
year), while exports for the other global
leaders experienced more modest
paces of growth. In value terms, the US
($6B), Brazil ($3.2B) and India ($1.4B)
appeared to be the countries with the
highest levels of exports in 2020, with a
combined 73% share of global supplies.
Turkey’s cotton textile and product
exports spur record consumption
Turkey’s 2021/22 cotton consump-
tion is forecast at a record 8.5 million
bales and use is expected to grow more
than 10%, well above the 3% consump-
tion growth forecast for the world.
Turkey is forecast to contribute a
significant portion of the world’s record
2021/22 consumption, behind only
India in its year-over-year increase of
0.8 million bales. Logistical advantages,
changes in global retailers’ sourcing
strategies, and duty-free access to the
European Union (EU) are supporting
robust cotton product and textile
exports.
Despite global issues with ocean
freight, Turkey’s location is ideal relative
to other cotton product and textile
exporters. Turkey is near European and
Middle East markets, with the EU being
the world’s second largest importer of
cotton products. Turkish exporters can
also ship by rail or truck versus relying
solely on ocean transit. Additionally,
Turkey’s Customs Union with the EU
means that most textiles and clothing
products can be exported duty-free to
the EU and European Free Trade
Association countries.
Outside of logistics, EU and US
retailers are actively restructuring their
supply chains to rely less on manufac-
turers in Asia (particularly China). The
United States is the world’s largest
importer of cotton products, and US
...Contd. On Page 11

Textile Excellence Bangladesh Edition „ February 2022 Cotton Update 11
Cotton Prices To Pick Up 5% In 2022...
Indian Industry Demands Duty-Free Cotton
Import With Quantitative Restrictions
T
he textile and clothing industry has
sought duty-free import of cotton
with quantitative restrictions.
Textile machinery manufacturers are
delivering almost two lakh spindles a
month, said T. Rajkumar, chairman of
Confederation of Indian Textile Industry.
This means that substantial addition of
production capacity has been taking
place. Thus, cotton consumption by tex-
tile mills during the current cotton sea-
son, which ends on September 30, is
likely to be higher at close to 340 lakh
bales while cotton production is estimat-
ed to be almost 350 lakh bales, com-
pared with 360 lakh bales in the previous
season.
Every year, 40-45 lakh bales turn out
to be of poor quality, which is unusable.
This year, the yield is said to be lower,
apart from quality issues. Cotton prices
have reached Rs 80,000 a candy, rising
from Rs 43,300 in January 2021 and Rs
57,000 a candy on October 1, 2021.
There is hardly any cotton arriving at the
markets, according to Ravi Sam, chair-
man, Southern India Mills’ Association.
“The best of mills have just one-and-
a-half months’ cotton stock,” he added.
The Centre must permit 30 lakh bales of
duty-free import of cotton for April-
September, and that too only by end-
users of cotton, Rajkumar urged.
Mills have to start booking cotton
now to ensure shipments in April-May.
“If this is not done, textile industry will
face a disaster in March-April,” Sam
said. Atul Ganatra, president, Cotton
Association of India, said there are indi-
cations that the area under cotton would
increase 20-25% for the next season.
The government should increase the
minimum support price for extra long
staple varieties by 25% and for other
varieties by only 3-5 %. ■
retailers are seeking to comply with the
US Withhold Release Order (WRO) on
products containing any derivative of
Xinjiang cotton. Compared with China
and other major exporting countries in
South and Southeast Asia (e.g.,
Bangladesh, Vietnam, and Cambodia),
Turkey’s supply chain from lint to fin-
ished fabric is mostly absent of
Xinjiang lint.
Turkey cotton product and textile
exports are booming despite wide-
spread economic concerns. These
include exchange rate fluctuations, ris-
ing energy costs, electricity cuts, cotton
prices more than doubling (in local cur-
rency), and slower tourist activity (a
significant contributor to domestic eco-
nomic growth).
Although the lira’s plunge makes
cotton lint imports and other inputs
more expensive, the lower-valued cur-
rency also makes textile and product
exports more affordable for foreign buy-
ers. Despite these economic head-
winds, lower priced exports continue to
surge. With global retailers seeking
alternative sources outside Asia and
with Turkey’s logistical advantages,
these factors provide a strong founda-
tion for 2021/22 consumption and
beyond
2021/22 outlook
Global production is lowered from
last month with smaller crops in India
and Tanzania. Use is mostly unchanged
and ending stocks are down more than
700,000 bales for the second consecu-
tive month.
Global trade is down slightly with
lower US exports and China imports for
the second consecutive month.
US production is unchanged at 17.6
million bales. Exports are reduced for
the second consecutive month to 14.8
million bales, and the US season-aver-
age farm price is unchanged at 90 cents
per pound.
Global cotton prices rose since last
month’s WASDE with the A-Index
exceeding 140 cents per pound, more
than 50 cents above the same period
last year.
Brazil witnessed the most significant
rise this month, climbing over 14 cents,
owing to rapidly rising exports. Strong
export sales, logistical constraints, and
unfixed mill positions continue to sup-
port prices on the Intercontinental
Exchange. Spot prices in China were
marginally higher amid the slowdown
from Lunar New Year. The A-Index is
roughly 20 cents lower than domestic
prices in China, compared with 30
cents last month, as the bulk of
classed newcrop enters the domestic
market. ■

International trade Textile Excellence Bangladesh Edition „ February 2022
12
India, UAE Finalise Free Trade Pact
U
nited Arab Emirates (UAE) could
once again become India’s largest
apparel market, following the signing
of the free trade agreement between the two
countries. India may get duty concessions
on textiles and apparel, gold jewellery, engi-
neering goods, food products, and other
labour-intensive sectors under
the free trade agreement (FTA) with the UAE.
The deal will not only boost India’s
exports, but also facilitate easier movement
of Indian workers and professionals to the
UAE. It is also expected to give Indian
industry access to other markets in the
region.
The FTA negotiations had started in
September 2021. Engineering exports to the
UAE are expected to double in the next five
years from the current US$ 4-5 billion and
create 100,000 jobs on account of tariff
concessions.
India’s exports to the UAE grew by 77%
year-on-year in April-December 2021 to
US$ 20 billion, accounting for 6.6% of
India’s total outbound shipments.
Experts said the deal is expected to
boost job creation and economic growth,
provide cheaper products to Indian con-
sumers and lead to lower input costs for
many products. ■
Duty concessions soon on textiles, apparel, jewellery, engineering
goods, food products.
Indian TC May Gain Duty-Free
Entry Into Australia
US Terminates AGOA Programme for
Ethiopia, Mali, Guinea
I
n lieu of opening up India's dairy and agri-
culture industries through low or zero tar-
iffs, Australia has offered tariff cuts on
99% of its traded items with India under the
proposed bilateral free trade settlement.
India is keen on dairy products, cereals,
oilseeds, and processed foods, which
Canberra is eager to sell. By the end of this
month, the two sides hope to have reached
an interim deal, termed early harvest in
trade parlance.
Australia has stated that their import
tariffs will be zero on 99% of products at the
time the deal enters into force, an official
said.
India's exports to Australia in FY21
reached US$ 4.04 billion, including refined
petroleum, pharmaceuticals, railway auto-
mobiles including hovertrains, gems, and
jewels, textile goods, while imports amount-
ed to US$ 8.24 billion. Imports included
coals, ores and extracts, gold, greens, wool,
fruits and nuts, and lentils.
Indian exports of agriculture products,
materials, clothing, footwear, and machine
tools, among other things, may be eligible
for zero-duty advantages.
Commerce and Trade Minister Piyush
Goyal indicated that the interim deal with
Australia will cover huge areas of interest,
notably our labour-oriented industries like as
textiles,?footwear,? pharma,??leather prod-
ucts, and agricultural products. The two
sides agreed to finalise a long-stalled FTA
known as a comprehensive financial coop-
eration settlement?by the end of 2022. ■
T
he United States has terminated
Ethiopia, Mali and Guinea from the
AGOA trade preference pro-
gramme due to actions taken by each of
their governments in violation of the
AGOA Statute. The Biden-Harris
Administration is deeply concerned by
the unconstitutional change in govern-
ments in both Guinea and Mali, and by
the gross violations of internationally
recognised human rights being perpe-
trated by the Government of Ethiopia and
other parties amid the widening conflict
in northern Ethiopia. Each country has
clear benchmarks for a pathway toward
reinstatement and the Administration will
work with their governments to achieve
that objective. ■
Australia grants tariff exemptions on 99% Indian imports

Textile Excellence Bangladesh Edition „ February 2022 13

14
China Explores FTA With Gulf
Cooperation Council
C
hina recently hosted the foreign
ministers from major oil produc-
ers and exporters in the Middle
East to discuss boosting energy ties
and a possible free trade agreement.
Beijing’s concerns with the unrest in
central Asian oil producer Kazakhstan
were also discussed.
The Gulf countries and China will be
seeking to progress negotiations over a
free trade agreement (FTA) and cooper-
ation in areas including energy. The
GCC includes Bahrain, Kuwait, Oman,
Qatar, Saudi Arabia, and the United
Arab Emirates (UAE).
China-GCC FTA negotiations had
started in 2004.
To date, China and the GCC have
held five rounds of negotiations and
have reached agreement on the majori-
ty of issues concerning trade in goods,
with the concentration being on energy
related products, although not exclu-
sively. Negotiations on trade in services
have also been launched.
China has been the largest export
market for GCC countries since 2012
and has upgraded relations with all of
them to ‘strategic economic partner-
ships’ and all have joined the Belt and
Road Initiative.
According to the US Department of
Commerce, by 2030, China will import
almost 80% of its oil needs, while by
2019, Saudi oil exports to China
increased to 47%.
The RMB possesses an advanced
status in the GCC foreign exchange
markets, and especially in the UAE and
Qatar. In 2018, several of Dubai’s
banks issued international bonds in
RMB.
There are further consolidations.
Saudi Arabia, with their 2030 Vision,
and Kuwait, with their Vision 2035 as
well as Bahrain and Oman’s national
development plans are all aligned
with Belt and Road Initiative develop-
ment. ■
T
extile maker Interloop Ltd has
said it’s going to set up its sixth
hosiery plant in 2023-24, one
year ahead of the original plan, in view
of “increased demand” from global
customers. This would entail an invest-
ment of US$ 100 million.
In a regulatory filing with the
Pakistan Stock Exchange, the company
said its fifth hosiery plant recently
started production and is currently
operating at full capacity. “Despite the
addition of plant 5, the company is
unable to meet the order requirement of
customers.”
“By advancing hosiery plant 6, the
company’s profitability will increase
substantially, which will be helpful for
setting up other projects as
per Vision 2025,” said the regulatory
filing.
The board of Interloop Ltd advised
the company management to “work out
possibilities of arranging new capital by
either bringing in foreign investors or
further issuance of shares through a
right issue”.
According to a stock filing, the firm
plans to begin civil work on an apparel
project with a capital outlay of US$ 100
million for which the company has
secured a Rs 5 billion LTTF, with the
remainder funds coming from internal
cash flow.
Interloop Limited manufactures and
sells socks, leggings, denim, yarn, gar-
ments, and allied products, and also
offers yarn dying services, while pro-
ducing its own electricity. The company
made a profit of Rs 2.69 billion in the
first quarter of 2021-22, up by 94%
year on year. ■
Interloop To Invest US$ 100 Million
In Sixth Hosiery Unit
● Significant breakthroughs expected in
trade, infrastructure and RMB interna-
tionalisation.
● China has been the largest export mar-
ket for GCC countries since 2012 and
is the main oil and commercial partner
to the GCC.
● China has upgraded relations with all of
them to ‘strategic economic partner-
ships’ and all have joined the Belt and
Road Initiative.

Textile Excellence Bangladesh Edition „ February 2022 International trade 15
N
IKE x PIÑATEX® Happy Pineapple Collection has won
the Best Collaboration by PETA Fashion Awards 2021.
The Nike x PIÑATEX® Happy Pineapple collaboration was
launched in June 2021 and was comprised of five sneaker
models across eight colourways; the Free Run Trail Premium,
the Air Max 90, the Air Max 95, the Air-Zoom Type and the icon-
ic Air Force 1.
Head of Sales Business Development at Ananas Anam,
Meliza Ann Mendoza says, “The collection was a result of a
great team effort between everyone involved in the project. We
are delighted to know that the collaboration is being recognised
by PETA because I see this as an important step in working
together to create more impact at scale. We look forward to
building more collaborations in 2022 that will create positive
change within the fashion industry.” ■
NIKE x PIÑATEX® Happy Pineapple
Collection Wins PETA Fashion Award
T
he FIBRAL Material Alliance is an
international organisation established
by three founders: Dr Carmen Hijosa
from Ananas Anam, Hannes Schoenegger
from Bananatex® and Ricardo Garay of
Regenerate Fashion. It exists to bring
together companies and individuals work-
ing with ancient underrepresented and new
plant-based fibres to give a strong voice,
and to help provide a solution to the textile
crisis.
The textile industry is dominated by a
material mix that relies on fossil-based
resources or fibres that are associated with
intensive water, chemical and land use. In
the face of global climate change, there is a
growing need for alternative materials as
the Earth’s finite resources diminish and
natural systems continue to degrade.
The Fibral™ Material Alliance seeks to
align plant-based fibres under a common
umbrella to provide support and to foster
solutions to heal Earth’s ecosystems and
address the textile industry’s detrimental
impacts through increasing use of Fibral™
Materials.
These natural materials are derived
from precious renewable resources, such
as abaca, pineapple leaves, oilseed
flax/hemp, novel agricultural wastes, and
by-products. But, despite evolutions within
the textile industry over the last decade, the
benefits of natural fibres have been over-
looked in favour of the readily available and
defined biosynthetic materials and man-
made cellulosics.
FIBRAL looks to change this and bring
forward the next paradigm of materials.
Carmen Hijosa says, “FIBRAL™ is the
result of a fellowship of like-minded individ-
uals whose vision, work and life purpose is
to inspire change by bringing awareness to
plant-based fibres, regenerative systems,
local and indigenous communities and cul-
ture, and the importance of biodiversity.
With this alliance we wish to activate a
sense of community, sharing and collabo-
rating by focussing on plant-based solu-
tions, in particular the potential of underrep-
resented fibres in the marketplace – today”.
■
FIBRAL™ Material Alliance Set Up For
Plant-Based Textile Industry
To consolidate and provide a home for the plant-based textile industry,
Ananas Anam, Bananatex and Circular Systems have founded the FIBRAL™
Material Alliance.

16
Saitex To Set Up New Fabric Mill In Vietnam
S
aitex is opening a new fabric mill 40 minutes from its cut and
sew factory outside Ho Chi Minh City in Vietnam.
Encompassing 100,000 square metres – 40% of which is
reserved for farming – the site’s capabilities include the spinning,
weaving, dyeing, and finishing of fabric sourced from responsible
cotton producers.
The mill has created 630 jobs to date, and at full capacity will
employ 1,000 people, with plans to have 20% of jobs dedicated to
people with disabilities – an initiative first started in the cut and sew
factory to create upcycled merchandise for the Rekut product line.
Building on the recent opening of its Factory of the Future in Los
Angeles and its denim facility in Vietnam, the integration of the new
mill into the Saitex value stream gives the company unprecedented
control and traceability of the life cycles of its garments.
Seed to shelf
A “seed to shelf” approach to manufacturing starts with close
partnerships with cotton farmers, utilises eco-efficient spinning,
weaving, and dyeing machinery, and incorporates a production cre-
ation centre (PCC) with the capability to create and prototype gar-
ment samples on-site. Brand partners are now offered one of the
most sustainable and transparent “seed to shelf” processes,
globally.
The company’s spinning capabilities allow for the blending of dif-
ferent materials with dual-core, multiple-core and SiroSPUN
technology.
Dyeing takes place at the yarn phase with the Smart-Indigo sys-
tem, to develop hydrosulphite-free indigo dye baths that only use
indigo pigment, caustic soda, water and electricity. The Smart-Indigo
system utilises an electrochemical dye bath preparation that emits
90% less CO2, consumes 70% less energy, and 30% less water
where the only waste product is oxygen.
The mill uses energy-efficient Karl Mayer rope dyeing machines
which enable a minimum 30% reduction in indigo and chemical
usage. Finishing systems include singeing, mercerizing, pad batch
dyeing, pad steam dyeing, stentering, sanforizing and fabric tum-
bling. The mill’s machinery uses less energy, fewer chemicals, and
less water in environmentally friendly processes with a capacity of
24 million metres of fabric per year.
LEED Gold
The facility was constructed with a roof that reflects sunlight and
installed natural ventilation, and it employs materials that adhere to
LEED Gold Certified specifications. The solar panel system consists
of nearly 15,000 panels with 3-4 MW capacity, which equates to
2,000+ tons of CO2 reduction yearly. Additional energy is derived
from industrial sludge which is used to generate 40% of the facility’s
steam power.
Greywater is collected from the industrial park, run through the
custom reverse osmosis (RO) ultrafiltration recycling system and is
then used in the production processes, allowing the mill to operate
without the use of fresh water and achieving a closed water loop.
Additionally, rainwater is collected for use by flushing factory toilets
irrigation, and a sprinkler system. Within the mill compound, a
hydroponic farming system and organic farming fields occupy 40%
of the space and will produce six tons of clean vegetables per year
to feed employees and local communities.
Furthermore, 6,000 trees have been planted in the industrial park
and 50 hectares of mangroves were planted in the country to offset
carbon emissions, helping to progress the mill to carbon neutrality
by 2025. It is also in the process of obtaining ZDHC, Oeko-Tex,
GOTS, GRS, B Corp., and LEED certifications and has future plans
to apply for bluesign and Fair Trade status.
“It has been our long-term vision to close the loop on our oper-
ations,” said Saitex CEO and founder Sanjeev Bahl. “With the open-
ing of the mill and the upcoming launch of our Stelapop textile upcy-
cling facility, our vision will be complete. “We will close the circle,
allowing us to provide unprecedented transparency in denim produc-
tion and the ability to turn apparel and textile waste into high-quality
goods.” ■
New mill has an annual capacity of 24 million metres of fabric.

Textile Excellence Bangladesh Edition „ February 2022 Industry News 17
BGMEA To Set Up Apparel Innovation Centre
T
he Bangladesh Garment
Manufacturers and Exporters
Association (BGMEA) is estab-
lishing the first Apparel Innovation
Centre in the country. Abdullah Hil
Rakib, Managing Director of the Team
Group and a director of BGMEA will be
the director in-charge of the BGMEA
Innovation Centre.
Many factors have led to the need
for an innovation centre. According to
Rakib, “The clothing industry has
reached an `evolve or die’ situation
because disruptive technologies are
frequently challenging conventional
ways of conducting business. Besides,
consumers' changing appetite and
increasing competition in the global
retail supply chain has made the pursuit
of innovation all the more important.
Today more than ever, it is imperative to
focus on product design, reducing lead
time, increasing productivity, adapting
to the latest technologies, minimising
production costs and making manufac-
turing plants more sustainable. With
this in mind, the BGMEA is going to
launch the new Centre for Innovation,
Efficiency and Occupational Safety and
Health at the newly built headoffice
of the BGMEA in Uttara, which
will work as a knowledge hub for the
industry.”
The Centre will also serve as an
extended display centre of the collec-
tions developed there and by partici-
pants from individual factories. The
structural and interior investments for
the Innovation Centre amount to about
US$ 250,000. In addition to that, the
BGMEA will bear the operational
expenses of the Centre, including the
salaries of its staff. The major techno-
logical and knowledge showcasing at
the Centre will happen through partner-
ship with technology providing compa-
nies, embassies and development
partners. ■
3 Foreign Firms To Invest US$ 49 Million At
BEPZA Mirsarai Economic Zone
W
ith a US$ 37 million invest-
ment plan, a leading Sri
Lankan apparel maker is
among the first batch of export-orient-
ed companies that have leased plots
in the Mirsarai economic zone in
Chattogram.
Four firms – three foreign and one
local have signed deals with the
Bangladesh Export Processing Zones
Authority (BEPZA) to set up factories to
manufacture apparel, garment acces-
sories, camping equipment and shoe
accessories at the BEPZA economic
zone in the Bangabandhu
Sheikh Mujib Shilpa Nagar in
Chattogram.
The companies altogether will
plough in around US$ 50 million and
employ 23,453 people, it is learnt.
The firms are Sri Lanka-based
Univogue Garments Company Ltd, US-
based Campex (BD) Limited, Chinese
Fengqun Composite Material Company
(BD) Ltd, and Bangladeshi TexTrim
Labels (BD) Limited.
Md Hafizur Rahman, BEPZA
Economic Zone project director, said
Sri Lankan Univogue Garments will
invest around US$ 37 million to pro-
duce woven bottoms and woven jack-
ets. With a more than US$ 2 million
investment plan, Chinese Fengqun
Composite will set up a shoe accesso-
ry-making and packaging industry at
the economic zone. US-based Campex
(BD) Limited will set up a tent, tent
accessories and outdoor garment man-
ufacturing industry with an investment
of US$ 10 million, while Bangladeshi
TexTrim will set up a garment acces-
sories and paper converting industry
with an investment of US$
1.27 million.
Under Bepza, there are now eight
EPZs across the country – Chattogram
EPZ, Dhaka EPZ, Mongla EPZ, Ishwardi
EPZ, Comilla EPZ, Uttara EPZ, Adamjee
EPZ, Karnaphuli EPZ.
Ali Reza Mazid, member
(Investment Promotion) at BEPZA, said
some 453 industries have been set up
at the EPZs with a total investment of
US$ 6 billion. The industries employ
around 5 lakh people, while 66% of
them are women. BEPZA now con-
tributes about 20% to the country's
total annual exports.
The Bangabandhu Sheikh Mujib
Shilpa Nagar is located on about
30,000 acres of land in Mirsharai and
Sitakunda upazilas of Chattogram and
Sonagazi upazila of Feni. ■

Industry News Textile Excellence Bangladesh Edition „ February 2022
18
Huntsman Corporation To Invest US$ 20
Million In Abdul Monem EZ
Dr Rubana Huq New VC Of Asian
University For Women
W
ith a wide range of lucrative fea-
tures, such as suitable location,
river connectivity, eco-friendly
environment, and all required amenities, pri-
vate sector industrial hub Abdul Monem
Economic Zone is attracting giant investors.
In a recent breakthrough, the under-con-
struction economic zone on the banks of the
Meghna in Munshiganj's Gazaria allotted 5
acres of land for a facility of the US-based
multinational chemical producer Huntsman
Corporation.
Huntsman Corporation will set up a
bonded warehouse soon. After having the
necessary approvals, it will start construc-
tion of the manufacturing plants. A design
has already been finalised, said ASM
Mainuddin Monem, managing director and
chief executive officer at the economic zone.
Huntsman will produce chemicals used
in the apparel industry, with an initial invest-
ment of US$ 20 million, he said, adding that
local RMG manufacturers will be greatly
benefitted once the facility goes into opera-
tion. Currently, the country imports these
chemicals from China, India and a few other
countries. The availability of local apparel
industry chemicals will reduce the lead time
as well, added Mainuddin.
Prime Textile and Basundhara too have
shown keen interest in setting up factories in
the economic zone. We are scrutinising the
proposals. We hope we will have over US$
1 billion investment and can create at least
50,000 jobs in the zone.
The authorities are prepared to build a
power plant for their own electricity, install
jetties for utilising river connectivity and
develop a system for rainwater preservation.
Besides, a solar power grid will be built
there. Officials said the industrial hub, 37km
from the capital city and adjacent to the
Dhaka-Chattogram Highway, is being devel-
oped as a green economic zone at a budget
of Tk 5,000 crore. The Bangladesh
Economic Zone Authority approved the zone
in 2017 for assembling motor parts, pro-
ducing food and beverage, and manufactur-
ing light engineering, packaging and chemi-
cal products. We hope we can complete
the development work of the zone within the
next two years, Mainuddin Monem said.
Abdul Monem Economic Zone is one of
the country's existing 11 privately run eco-
nomic zones. The BEPZA is working toward
establishing 100 economic zones across
the country by 2030. The goal is to create
employment for 10 million people. The
BEPZA also expects to produce and export
products worth $40 billion annually in and
from these economic zones. Investors can
avail of tax holiday, duty-free imports of raw
materials and machinery, exemption from
dividend tax, VAT-free electricity, gas and
water and other fiscal facilities in the
zones. ■
D
r Rubana Huq has been appointed
vice chancellor of the Asian
University for Women (AUW),
Chattogram, Bangladesh, with effect from
February 15, 2022, the AUW said in a press
release. Dr Huq succeeds noted political sci-
entist Professor Nirmala Rao, who retired
from the AUW after serving as its vice chan-
cellor for five years.
She is the first woman to have led the
Bangladesh Garments Manufacturers’ and
Exporters’ Association (BGMEA) as its pres-
ident. Dr Huq has been a trustee of the AUW
and, was more recently, elected vice chair-
man of the Board of Trustees.
She was instrumental in launching the
AUW’s Pathways for Promise programme
that enables exceptionally talented workers
from Bangladesh’s RMG factories to enroll
at the AUW.
She was named as one of BBC’s top
100 women in the world in 2013 and again
in 2014. Dr Huq is currently also a visiting
fellow at the Stern School of Business at
New York University and the Asia Center at
Harvard University. Founded in 2008, the
AUW is the first of its kind: a regional institu-
tion dedicated to women’s education and
leadership development through liberal arts
and sciences education. ■
Dr. Rubana Huq, Chairperson, Mohammadi
Group.

Textile Excellence Bangladesh Edition „ February 2022 Industry News 19
BKMEA Demands Raise In Wastage
Rates Yet Again
MiB Maps 3,630 Export-Oriented RMG
Factories In Bangladesh
M
iB (Mapped in Bangladesh), a 5-
year project to develop a digital
database of RMG workers, has
mapped and compiled the data of 3,630
export-oriented ready-made garment
(RMG) factories in Bangladesh, as of
January 2022.
Centre for Entrepreneurship
Development (CED) of Brac University
(BracU) conducted the survey using the
factory census method all over
Bangladesh, reads a press release.
Bangladesh Garment Manufacturers
and Exporters Association (BGMEA) and
Bangladesh Knitwear Manufacturers and
Exporters Association (BKMEA) are the
strategic partners of the project MiB,
which is being implemented by Brac
University.
The project is also supported by the
Department of Inspection for Factories and
Establishments (DIFE) under the Ministry
of Labour and Employment.
MiB aims to provide accurate, credible,
and updated RMG factory information to
all industry stakeholders in a manner that
enables greater efficiency, productivity,
accountability, and transparency.
With its robust data verification and
validation protocol, the digital repository
can be utilised to design significant inter-
ventions and formulate policies for the
wellbeing of workers.
While there is further research scope
on MiB database, this data also can be
used for policy formulation of the govern-
ment and for the planning of different
development activities related to the facto-
ries and workers inRMG sector, said
Afshana Choudhury, CED-BracU joint
director and MiB lead operation officer.
A recent publication of MiB
researchers has demonstrated that the
male to female workers ratio in
Bangladesh RMG is 42:58 as per analysed
data of 2,565,761 workers in 3,212
export-oriented RMG factories.
One of its rapid surveys, on the basis
of responses from 2,334 factories com-
municated over phone in June 2020 using
contacts in the MiB database, revealed
that the member RMG factories (factories
that are members of BGMEA and/or
BKMEA) were able to utilise 70.55% of
their production capacity, compared to
59.83% by non-member RMG factories
during the pandemic period. ■
T
he Bangladesh Knitwear
Manufacturers and Exporters
Association (BKMEA) has demanded
that the government raise the wastage rates
of raw materials used in producing ready-
made garments, particularly for knitwear
items, yet again as the trade body believes
the recently revised rates are not realistic.
The commerce ministry usually sets the
rate to curb irregular practices in cotton and
yarns that are allowed to be imported duty-
free.
The Commerce Ministry has revised the
maximum wastage rates to 27% from 16%
for the production of basic knit items – such
as t-shirts, polo shirts, trousers, shorts,
skirts, pyjamas. The revision was made as
per the recommendation of a committee that
the ministry formed a year ago following
requests of the manufacturers.
Apart from the basic items, the authori-
ties for the first time, creating separate cate-
gories, set a wastage rate of 4% for
sweaters, socks and similar items, 30% for
special items including rompers, gowns,
and hoodies.
However, the BKMEA Executive
President Mohammad Hatem, in a letter to
the Commerce Minister Tipu Munshi,
expressed his concern over the newly-set
rates and said the actual wastage was high-
er than the newly set rates.
In the letter, the apex trade body of the
knitwear producers urged the government to
raise rates to 30% for basic knit items, 35%
for special items, and 12% sweaters and
socks items.
In the meeting, stakeholders concerned
presented detailed data on the actual
wastage rates with practical explanations.
Sadly, the reevaluation of the rates did not
reflect it, said the letter. Around 90% of
knitwear are basic items.
The letter also reads that no sweater fac-
tory has been inspected by the committee
so far but the wastage rate is fixed at 4% for
the items, which is completely unreason-
...Contd. On Page 20

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