India to resume cotton export

India, the second largest producer of cotton, yesterday lifted a ban on cotton export, at a time when Bangladesh is lobbying with Uzbekistan to strike a deal to ensure smooth supply for local spinners.

Bangladesh, which is fully dependent on imported cotton, went for an alternative to Indian as the neighbouring country has been frequently imposing ban on the export of the item for the last two years.

A delegation led by Commerce Secretary Ghulam Hussain is already scheduled to leave for Uzbekistan on May 4 to seek a state-level deal to reduce dependence on India.

India came up with the restriction several times last year and this year. The latest one came on March 5 mainly to build up the country's domestic stocks.

However, Bangladeshi spinners welcomed the yesterday's decision.

“The dependence on Indian cotton is increasing due to the country's geographical proximity. It takes shorter lead-time if we import cotton from India. Of course, the latest move is a positive sign for us,” said Jahangir Alamin, president of Bangladesh Textile Mills Association.

Production in the local spinning sub-sector faces troubles due the frequent changes in India's decision.

This time India changed its decision amid protests from its traders and on forecast of a higher yield, said a Bloomberg report, quoting Commerce Minister of India Anand Sharma yesterday.

Sharma said the traders can register for fresh shipment contracts within a day or two.

Sharma told this to journalists in New Delhi after a meeting of a panel of ministers headed by Finance Minister Pranab Mukherjee, according to the Bloomberg report.

Another reason for the previous ban was that exports surged 9.5 million bales (a bale weighs 170 kilograms or 375 pounds), the quantity that surpassed government estimates.

“Based on the revised estimates of cotton production by the Cotton Advisory Board as well as the agriculture ministry, we have decided to remove the suspension on registration of cotton exports,” Bloomberg quoted Sharma as saying.

Bangladesh imported more than 39.39 lakh bales of cotton in the year through June 2011, according to data from the commerce ministry.

Of the total amount, 41.82 percent was imported from India, 35.31 percent from Uzbekistan and other members of the Commonwealth of Independent States, 7.68 percent from Africa (East and West) and 15.19 percent from other countries, including the US, Australia, Pakistan and China.

News: The Daily Star, Tue, 01/05/2012

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Bangladesh, the Next most Potencial Economic Giant: NY Times

The most cited newspaper of the world, The New York Times has reported on Apr 23 that Bangladesh has a huge prospect of becoming one of the emerging economies.It is running with a strong promise of growth despite various challenges the nation of 160 million people is facing.

Still, the report has said, Bangladesh is making progress as the nation's economy has managed "to grow more than 6 percent a year for much of the last decade".

Thanks to expanding middle class, growing manufacturing sector and steady inflow of remittances remain the driving forces for economic growth in Bangladesh.

The newspaper has quoted economists at Standard Chartered Bank to say that Bangladesh could join what have been called the '7 percent club' of economies that expand at least 7 percent annually for an extended period, allowing their economies to double every decade.

Current members of the "club" include China, Cambodia, India, Mozambique and Uganda, the influential newspaper said.

The report said HSBC has included Bangladesh in a group of 26 economies — along with China, India and several Latin American and African countries — where it expects particularly strong growth.

The United States and much of Europe, by contrast, are likely to remain merely stable, according to HSBC's projections, the report said.

Expansion of the nation's middle class is a good news for Bangladesh, the report observed, quoting an official of the Asian Development Bank.

It quoted principal economist at the Asian Development Bank in Dhaka, Zahid Hossain, as saying that the growth in the country "mirrors the developments in other emerging economies".

"Domestic demand is growing and becoming an important driver of economic activity," Hossain was quoted as saying.

Bangladesh's economic prospect lies on China's fate, especially in the manufacturing sector amid stiff global competition, it said.

The report maintained that the gradual shift in global production to low-cost countries, from developed economies in Europe and North America, is driving much of Bangladesh's growth. The trend, which began turning parts of Asia — notably China — into manufacturing hubs in the 1980s and 1990s, has started to take root in Bangladesh.

For now, Bangladesh's manufacturing prowess is primarily focused on the garment sector, which has grown into a multibillion-dollar industry that employs 3.6 million people and accounts for 78 percent of the country's exports, it said.

Bangladesh has seen particularly strong growth in the last few years, partly because of rising labour costs in China, where manufacturing is moving into higher-margin activities like product design, it observed.

"For many years, China was almost always the hands-down answer to all buyers' needs," the newspaper quoted a recent report of the consulting firm McKinsey.

Now, Western wholesale buyers of garments are looking for the "next China," and Bangladesh "is clearly the preferred next stop for the sourcing caravan."

McKinsey forecast that Bangladesh's garment industry would grow by as much as 9 percent a year over the next decade, the report said.

Quoting BGMEA (Bangladesh apparel manufacturers' and exporters' association) statistics, the report said Bangladesh exported nearly $18 billion worth of garments in the 12 months through June 2011, $10.5 billion of that to the European Union and $4.6 billion to the United States.

Referring to sourcing company Li & Fung, a giant Hong Kong trading company that supplies retailers including Walmart with clothing mostly purchased from Asia, it said last year the company bought $1 billion worth of apparel from manufacturers in Bangladesh, 41 percent more than in 2010.

Bangladesh overtook Vietnam and Indonesia in 2011 to become the second-largest source of such products for Li & Fung, after China, it said.

About Bangladesh's prospect in garment sector, the newspaper quoted Li & Fung chief executive Bruce Rockowitz as saying that despite bottlenecks the company intends to increase the business it does in Bangladesh.

"The prognosis is good," Rockowitz was quoted as saying by the newspaper.

The report said the annual inflow of remittance is also expected to rise to $20 billion in five years' time while more than $11 billion worth of remittances flowed into Bangladesh last year.

Last year's figure is more than 10 times the amount the country got from foreign investment, it said.

Attracting foreign direct investment still remains a big challenge, the report observed.

Foreign direct investment in Bangladesh has languished at about $1 billion a year — less than what Albania or Belarus each receive, and about one-tenth of foreign investments in Thailand or Malaysia, the report said.
Inadequate power and transportation infrastructures, political infighting, bureaucracy, corruption and a shortage of skilled labourers contribute to a challenging investment climate, the report said.

News: BDNews24, Wed, 25/04/2012

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BPGMEA Demands 20pc Cash Incentive on Export

Bangladesh Plastic Goods Manufacturers and Exporters Association on Tuesday demanded the government should provide 20 per cent cash incentive in the next budget for direct exports of plastic goods.

They said the exporters needed such fiscal support to survive amid tough competition in the international market as well as an incentive to increase exports of plastic goods.

At a pre-budget discussion with the National Board of Revenue, BPGMEA also demanded imposing anti-dumping duty on imports of different plastic goods including toys, melamine, and plastic jewellery items to protect the local industry from products which some neighbouring countries were exporting to Bangladesh at dumping prices.

‘The plastic goods sector is not getting cash incentives for exports though many other sectors are getting such facility. There is a huge potential of increasing exports of plastic goods if the government could provide cash incentives for the sector,’ the BPGMEA said in a written proposal to the NBR.

BPGMEA president Shamim Ahamed and former president ASM Kamal Uddin placed the proposals to NBR.

The association claimed that neighbouring countries were exporting their plastic products at dumping prices to Bangladesh against the interest of the local plastic industry.

So the government should impose anti-dumping duty on import of plastic products to protect local industry by preventing unfair trade, the proposal stated.

If any foreign product is imported into Bangladesh at less than its factory price, it is dumping and is considered as harmful to local industries, NBR officials said.

The association’s proposal included withdrawal of duty on import of moulds and machineries for plastic industries, withdrawal of value-added tax on locally produced plastic products and reduction of duty on import of raw materials for the industry to 3 per cent from existing 5-12 per cent.

BPGMEA also demanded imposing higher duty on import of finished plastic products like box, cases, trays, tableware, kitchenware, furniture, toys, hanger and accessories.

As a part of the discussion for preparing the budget for 2012-13 financial year, the NBR also discussed with Bangladesh PVC Pipe Manufacturers Association and Bangladesh Cold Storage Association.

NBR chairman Nasir Uddin Ahmed, members Syed Aminul Karim and Farid Uddin, and coordinator of the pre-budget meetings and NBR first secretary Abdur Rouf attended the meetings.

News: The New Age, Wed, 25/04/2012

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Spinners look abroad for Steady Business

Local spinners look to set up mills abroad to ensure a steady supply of raw materials in an increasingly unpredictable global environment.

“Setting up mills abroad will give us double benefits: it will ensure yarn and save energy,” said A Matin Chowdhury, managing director of Malek Spinning Mills.

India and Uzbekistan, two major sources of Bangladesh's cotton imports, are chosen by primary textile millers as investment destinations.

Chowdhury, also former president of Bangladesh Textile Mills Association (BTMA), said he plans to set up a one-lakh-spindle factory in India and bring yarn to Bangladesh.

Textile millers operate machines that spin cotton to produce yarn and fabrics, the major ingredient for producing readymade garments.

Following volatility in the global cotton and yarn markets last year, the issue hit the spotlight when prices of these raw materials went up three times compared with what it had been a year ago.

Moreover, cotton producing countries such as India try to cash in on the situation by imposing extra tax or withdrawing it and suspending cotton exports sometimes, according to businessmen.

Bangladesh requires over 37 lakh bales of cotton a year, according to BTMA data. Of which, 30 percent comes from India and 30 percent from Uzbekistan. Locally produced cotton meets only 2 percent of the market demand. The rest are imported from the US, Pakistan and some other countries.

“Despite being a cotton producing country, India is establishing textile mills in Uzbekistan considering security of its yarn in future,” said Mehdi Mahbub, chief executive officer of Best Sourcing Business Advisory Services.

Indian textile company Spentex bought two textile mills near Tashkent in August 2006 with an investment of $81 million. It also acquired one more textile company in Ferghana in 2007 and made further investment of $6 million. More Indian millers set up factories in Uzbekistan in the recent years.

“Businessmen who are financially capable can invest in India, a country with better infrastructure,” said Jahangir Alamin, president of BTMA.

“But spinning mills in Uzbekistan will not be viable for us,” said the BTMA president explaining that freight charge and lead time to receive yarn from Uzbekistan would be huge.

Bangladesh has over 400 textile mills of different categories and sizes with an investment of around $3.5 billion.

These mills meet 90 percent yarn needs of knitters and provide 40 percent fabrics for weavers. Knitwear and woven sectors accounted for nearly $18 billion of exports out of $23 billion earned by Bangladesh in fiscal 2010-11.

News: 

 The Daily Star, Sun, 05/02/2012

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Govt eyes alternative Jute Markets in Thailand, Vietnam

The government is eying alternative jute markets in Thailand and Vietnam in the wake of substantial fall in the export of jute goods to the Middle Eastern and African countries.

Bangladesh Jute Mills Corporation (BJMC) will soon start exporting jute products to Thailand and Vietnam.

BJMC chairman TD Mitra held a meeting with the heads of all jute mills at its conference room on Thursday in this regard, said a PID handout on Friday.

The meeting took stock of the export situation of jute goods and decided to boost the export to Thailand and Vietnam.

The export of jute products suffered a setback due to unrest in different countries in the Middle East and Northern Africa. The export to Syria remained stopped, while the export volume to the Middle Eastern and North African countries came down to almost half due to crisis in Egypt and Libya, the handout said.

Different countries in the Middle East and Northern Africa used to import around 1.25 lakh tonnes of jute products from Bangladesh before the crisis erupted in Egypt, Syria and Libya.

The government exported around one lakh tonnes of jute products till January against its export target of 2.20 lakh tonnes in the current fiscal, the BJMC chairman told the meeting.

He said the BJMC will be able to achieve the export target if it could properly explore export opportunities in Thailand and Vietnam.

The BJMC chairman asked the jute mill chiefs to continue production in full swing for achieving the export target.

News: 

 UNB, Sat, 04/02/2012

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RMG Sector Business Leaders Industry Talks

They sought policy support from the government to protect RMG and textile sectors, or else, they said, no government will be able to face the economic challenges that may arise out of any ‘suicidal decision’.

The entrepreneurs said a vested quarter is out to hold back the growth in the sector and demanded those involved in impeding the economy be identified and given exemplary punishment.

“Untimely policy decisions on garment sector are not acceptable in any way. Any suicidal decision might destroy the RMG sector…our economy doesn’t have the strength to cope with the severe fallout,” BGMEA president M Shafiul Islam Mohiuddin told a joint press conference.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA) jointly arranged the press conference at the BGMEA conference room.

BTMA president Jahangir Alamin, BKMEA acting president M Hatem, BGMEA second vice president M Siddiqur Rahman and BGMEA director Nahid Hasan were, among others, present.

Speaking on the occasion, Mohiuddin said achieving the RMG export target of US$ 20.4 billion set for the current fiscal has become uncertain due to internal and external economic factors.

Apart from the global and domestic challenges, some untimely decisions taken by the government have created panic afresh among the entrepreneurs, he said.

Mohiuddin said the banks are charging 15 to 20 percent interest on lending after the withdrawal of the lending cap by the central bank. “In some cases, banks charge more than 20 percent interest.”

Meanwhile, the central bank has downsised the private sector credit growth to 16 percent for the remaining six months of the current fiscal. “It’s simply because of the government’s high bank borrowing…if this burden falls on productive sectors, it’ll shrink investment, production and employment and consequently have adverse impact on the overall macroeconomic economy,” he said.

The BGMEA president urged the government to take immediate steps for keeping the interest rate at a reasonable level.

He also criticised the IDRA (Insurance Development and Regulatory Authority) for cancelling special premium rate on export-oriented industrial units without any discussion with the BGMEA, BKMEA and BTMA.

“The introduction of normal premium rate cancelling special rate was not judicious,” he said requesting the finance ministry to restore the special rate.

Mohiuddin also criticised the increased charges realised by the Chittagong Port and said, “It’s not clear to us whether port should have commercial attitude or it should be service-oriented since Chittagong Port has Tk 4,000 crore FDR.”

On gas crisis, he said, “We’re really unhappy with the performance of Petrobangla (Bangladesh Mineral Oil & Gas Corporation -BMOGC). The government needs to give us a clear decision whether it’ll run mills and factories or fertiliser factories.”

He said industries are at stake due to absence of Petrobangla’s right decision and lack of coordination among the authorities concerned. “We need a solid energy policy.”

News: 

 UNB, Thu, 02/02/2012

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Sleeping Bag Exports Hit a Snag

Image (C): http://www.northpoleltd.com 

The growth of the nascent sleeping bags sub-sector is set to face difficulties as the item was taken off the list of duty-free exports to the US in December last year, said industry insiders.

Bangladesh is now paying an average 12 percent duty to export sleeping bags to the US where the country enjoyed a duty-free benefit previously, they added.

The sleeping bag manufacturing industry in Bangladesh is still new. Only three companies make the item and employ more than 12,000 workers, mainly inside the export processing zones in Chittagong.

The sleeping bag makers have shifted to Bangladesh from China, mainly for higher costs of production and a shortage of workers in 2008 and 2009 in the world's second largest economy.

Investors from the US, Korea and China have shifted their production units to Bangladesh to produce the item at competitive prices.

Shahnewaz Karim, manager (shipping) of Chittagong-based Northpole BD Ltd, said the latest US decision would hamper normal growth of the sector.

“We used to receive a lot of orders from the US previously, but not now. This year we received fewer orders from the country than last year,” he said, adding that they are now exporting the item to Canada at zero duty.

Bangladesh has already informed these concerns to the US authorities through the Bangladesh embassy in Washington, Commerce Secretary Ghulam Hussain said.

“But I am not hopeful of regaining the duty facility for sleeping bags export as any renewal depends on reviews by the US government. Nothing can be said until the next review," he said.

Sleeping bags made in Bangladesh were removed from the generalised system of preferences on December 29 in response to a petition by US-based Exxel Outdoors, a sleeping bag-maker.

The US government included sleeping bags under the tariff benefit in September last year, only to be excluded from the list in late December.

The issue first came to the spotlight when Senator Jeff Sessions of Alabama lodged an objection in December 2010, demanding a ban on the duty-free import of sleeping bags.

Sessions argued that sleeping bags should be a subject to tariff, like other textiles, because the item competes with American manufacturers. The US trade programme allows about 4,800 products from 131 countries to be imported duty-free.

News: 

The Daily Star, Sun, 05/02/2012

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RMG Export Growth May Remain Sluggish for Global Slowdown

The growth of exports in the country's apparel sector is likely to remain sluggish in the current fiscal year (FY), due to the ongoing global slowdown, exporters said on Tuesday.


They said the export growth of ready-made garments (RMG) and knitwears would be below 20 per cent in the current FY against around 42 per cent in the previous fiscal year when the apparel sector fetched a record $17.9 billion.

Experts said despite a persistent global slowdown, mainly in the United States and the European Union, the growth in garments exports were still encouraging and remarkable.

The European Union and the United States take more than 90 per cent of Bangladesh apparel products, officials of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said.

In the first half of the current FY the exports of woven items grew by 22.56 per cent to $4.46 billion while knit posted 11.12 per cent growth to $4.79 billion, according to the Export Promotion Bureau (EPB).

During the same period in the last FY 2011 woven and knit registered a growth of 40.79 per cent and 43.39 per cent respectively, the EPB data said.

This year export of woven garments made a great stride compared to the growth of knit products because of the increase in their demand with the European Union offering EBA (everything but arms) facility under the generalised system of preference, traders said.

The BGMEA had set an export target of $20.29 billion at the onset of the current FY, when the overall exports were projected at $26.5 billion.

"We may not reach the target set for the current FY, but definitely the exports will be more than what we achieved in the apparel sector last fiscal year," Md. Shafiul Islam Mohiuddin, president of BGMEA told the FE.

"The exports are still satisfactory despite the bad days(slowdown)," the BGMEA president added.

Meanwhile, the overall exports crossed $11 billion mark in the first half of the current FY and as such officials of the ministry of commerce (MoC) said they were confident of meeting the overall export target by the end of the FY.

Apparel exports constitute 80 per cent of the overall exports, they said.

"Big export growth does not recur every year. But the growth which we have achieved in the first half of the current fiscal is very much remarkable," Nasir Uddin Chowdhury, a senior vice president of BGMEA said.

Source: 

 The Financial Express, Wed, 25/01/2012

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RMG growth needs fair politics: Amir Khasru

Former commerce minister and president of Chittagong City BNP Amir Khasru Mahmud Chowdhury said that the country will have to come out of traditional conflicting politics for sustainable growth in readymade garments (RMG) sector. As the country’s economy has almost become dependent on the RMG sector, any turmoil in the sector will lead to an economic disaster, he feared.

BNP has always been committed to supporting the development of the sector and hence the party has exempted RMG sector from political programme like hartal, he said, adding that his party would continue support to the sector in future.

He was addressing as chief guest at the closing ceremony of three-day CAFAXPO-2012 on the Gymnasium premises of MA Aziz stadium here on Saturday evening.

Kharu said if BNP comes to power in future, it would extend all out co-operation to solve all the existing problems in the sector and take initiatives to construct permanent exhibition centres both in Dhaka and Chittagong so that the BGMEA and other trade bodies do not need to hold fairs in open fields.

Reminding the contribution of BNP to the development of RMG sector, he said Bonded Warehouse facility was the base of RMG sector and it was introduced by the founder of the party late president Ziaur Rahman.

Chaired by Shafiul Islam Mohiuddin, president of BGMEA, the closing session was also addressed by former state minister for environment and forest Jafrul Islam Chowdhury MP, first vice-president of BGMEA Nasir Uddin Chowdhury and the chairman of BGMEA standing committee for CAFAXPO-2012 SM Abu Tayub.

Nasiruddin Chowdhury said the fair is not for selling and buying products. “It is mainly for displaying our capability, potential and latest development in the RMG sector.” He said more than 5,000 guests visited the fair till Saturday evening.

Mohammad Shahidul Alam Chowdhury, assistant manager of Chittagong Denim Limited, who had a stall in the fair, told The Independent that a good number of local and foreign buyers visited the fair and their response was very positive. “We are looking forward to having good quantity of order following the fair.”

 

Source: The Independent, Sun, 22/01/2012

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BGMEA, BKMEA voice concern over plot to overthrow govt

BGMEA and BKMEA have expressed concern over the reported plot to overthrow the government.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) have expressed concern over the reported plot to overthrow the government.

In a joint statement on Friday, the BGMEA and the BKMEA termed the incident as ‘unwarranted’ in a democratic state.

“BGMEA and BKMEA believe that change of power should take place through constitutional means and election for upholding democracy,” the statement said, calling upon all to work together for maintaining the continuity of the country’s democratic and constitutional process.

The BGMEA and the BKMEA also urged the government to bring those involved in the plot to justice and give them an exemplary punishment immediately.

Source:UNB, Fri, 20/01/2012

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RMG exports may grow 15 % in Financial Year 2012

Readymade garment (RMG) exports are likely to grow by around 15 per cent this fiscal year (FY), compared to the volume a year earlier, experts say.

Export Promotion Bureau data on July-November exports show that the country’s overall exports have grown by 18 per cent year-on-year against the 40 per cent growth a year ago. In July 2011, exports rose by 28.7 per cent, followed by a rise by 32.4 per cent in August. However, the growth rate declined to 2.29 per cent in September, 15.44 per cent in October and 2.4 per cent in November.

Shubhashish Bose, vice chairman of EPB, told fibre2fashion website, “Bangladesh’s export target for FY 2011-12 is $26.5 billion, and from July to November 2011 we exported $9 billion worth RMG. We hope we will be able to achieve our targets.”

RMG sector constitutes about 70-80 per cent of Bangladesh’s total exports, he added.

Mustafizur Rahman, executive director of Centre for Policy Dialogue (CPD), told fibre2fashion, “The exceptional growth rate of 40 per cent was registered because of rising global demands. But, such high rate cannot be expected every year.

Considering this, 18 per cent growth is remarkable.” Rahman also said prices of raw materials, i.e. cotton and yarn, have come down by 50-60 per cent compared to the last year, which resulted in lower price level and margin.

In light of these factors, the growth rate can be termed “significant”. “The demand in the US and Europe market was lower. But there were some shifting orders from China and India has also offered zero tariff access. All these factors favoured exports,” he told the website.

Rahman said that it is uncertain how the Eurozone crisis will develop and whether it will degenerate in recession, but predicted an overall growth. “I foresee a double digit growth rate with the overall growth at around 14-15 percent this fiscal,” he said.

Bose said Bangladesh mainly exports basic apparels, which are not high-value but basic necessities.
“Even if there is recession in Europe or the US, people will buy these apparels. Bangladesh can look forward to a double digit growth and achieving the export target,” he said.

Source: The Independent, Wed, 04/01/2012

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PM urges Russia to import more apparels from Bangladesh

Dhaka Chamber of Commerce and Industry (DCCI) president Asif Ibrahim on Sunday voiced deep concern over the possible political instability in the country centering the caretaker government issue.

“There might be a political instability over the caretaker government system this year. It’s a matter of concern for the business and the overall economy,” he said at a press conference at DCCI conference room.

He said the business community expects the political parties reach a consensus over the national and economic issues since political instability will impede trade and commerce in the country.

Replying to a question about the opposition’s road march, Asif Ibrahim said, “As an alternative to hartal this is good.”

He said the business community does not support any political movement that hampers economic activities in the country.

Asif observed the pace of foreign investment slowed down and the foreign investors do not consider economic indicators of the country as investment-friendly one.

“Lack of infrastructure, bureaucratic tangles, and political instability are the reasons behind this,” he said adding that the volume of foreign investment remains below US$ 1 billion for long days.

DCCI senior vice president Haider Ahmed Khan and directors of the chamber body, business leaders were present at the press conference.

News:UNB, Sun, 08/01/2012

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Bangladesh Apparel Makers Eye Big Pie in Indian Textile Market

 

India's decision to extend duty-free access to 46 Bangladeshi products can be a "game-changer" in Indo-Bangla trade ties, with local manufacturers saying the move can boost apparel export to India by $5.0 billion in five years.

Apparel makers said India's unilateral tariff removal was "the best thing to have happened to Bangladeshi exports" as the country enjoys competitive advantages in majority of the 46 garment items that are expected to be positively impacted by the Indian decision.

They, however, cautioned that a backlash from the powerful Indian textile lobby could be round the corner, as textile makers are major employers in India and they can force New Delhi to slap trade-restrictive safeguard measures on the Bangladeshi garments.

CITI, the Indian textile association, has already petitioned the government, warning the move could impact the fate of 35 million Indian textile workers and a large number of small and medium garment factories.

Shafiul Islam Mohiuddin, president of Bangladesh Garments Manufacturers and Exporters Association (BGMEA), said the government should now "stay vigilant" against any move to set the decision about the duty-free access at naught.

"This can be game-changer in Bangladesh-India trade-ties. Previously, India would give duty-free access to those items which we don't produce or where we don't enjoy any competitive advantages," he told the FE on Wednesday.

"But these 46 items are all garment products. We are highly competitive in these items. I am confident we can even raise our exports to $5.0 billion to India if New Delhi sticks to its duty-free decision," he said.

It means garments alone can neutralise Bangladesh's $4.0 billion trade deficit with India. In fiscal year (FY) 2010-11, the country imported Indian merchandise worth $4.5 billion and exported around half a billion dollars.

Presently, Bangladesh can export 10 million annually pieces of garments, free of duty to India. The amount is the annual production of a mid-sized local garment factory.

According to the BGMEA, Bangladesh apparel shipment to India stood at $35 million in FY 2010-11, out of the total overseas sale of $19 billion. The amount is 0.0013 per cent of India's $28 billion clothing market.

"Our products have a large demand in India but we could not export in volume due to the quota system," said Siddiqur Rahman, second vice president of BGMEA.

"India could be the third largest destination of our garments after the European Union and the United States following last Tuesday's decision. Our garment manufacturers have been making these products for years," he said.

Selim Osman, president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said knitted items such as t-shirt, sweater, pullover account for 25 of the 46 items, while woven products constitute the rest.

"There are many clothing products we can not export to the EU and the US. But they have good demand in India. If we can enter the Indian market with a population of 1.2 billion, the size of our sector will be doubled," he added.

"It opens a big door," he said adding the Bangladeshi small and medium garment makers will be the main beneficiaries of the Indian decision.

According to The Hindu Business Line, an Indian financial daily, the apparel items that have been allowed duty-free access include pants, shirts, blouses, skirts, kidswear, cotton nightwear, jeans, swimwear and tracksuits.

There will be "severe adverse impact" on the garment clusters in Tirupur, Ludhiana and West Bengal, CITI claimed, adding that all 46 products cover most of Bangladesh's total garment production in terms of quantity.

BGMEA president Mohiuddin warned that once Bangladeshi exports started making headway in the Indian market, New Delhi could opt for Turkish-style safeguard taxes on Dhaka's clothing items.

"In Turkey, we raised our exports to $650 million in just two years. But that created panic among the Turkish garment makers, who this year forced their government to slap 27 per cent anti-dumping taxes on our products," he said.

"The government should be prepared for such an upshot and stay vigilant against any move by any quarters to jeopardise the duty-free access," he said.

According to the World Trade Organisation (WTO), India has slapped the highest number of trade-restrictive safeguard taxes on foreign goods, which included Bangladeshi batteries and jute items for sometimes.

New Delhi lifted the anti-dumping duty on Rahimafrooz's batteries only after Bangladesh took up the case to the dispute resolution committee of the WTO.


Monira Munni, The Financial Express, Fri, 9 Sep, 2011

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Opposition Leader Khaled Zia to Chair BATEXPO’s Closing Ceremony

Opposition Leader Begum Khaled Zia

The 22nd Bangladesh Apparel and Textile Exposition (BATEXPO 2011), the country's largest apparel show, begins in the city on Saturday with high hopes to draw a larger number of foreign buyers despite global economic crisis with estimated $70m spot orders. 

Prime Minister Sheikh Hasina inaugurated the event at Bangabandhu International Conference Centre on Saturday morning.

Opposition leader and BNP chairperson Begum Khaleda Zia will attend the closing session of the three-day event as the chief guest on Monday, Dec 12, 2011.

Former Industries and Commerce Minister MK Anwar, BNP acting secretary general Mirza Fakhrul Islam Alamgir, former minister and BNP chairperson's adviser Dr. M Osman Faruk and former commerce minister Amir Khasru Mahmud Chowdhury will attend the closing session as special guests.

The organizers say this year's Batexpo will be different and attract larger number of foreign buyers with an increased volume in spot orders, which was US$ 65 million in 2010.

According to them, it will be a reunion for both foreign buyers and local manufacturers, and the fair would help expand global market for Bangladesh's readymade garments.

A total of 146 stalls of garment accessories (local and foreign), garment fabrics, garment technology and stock lot have been set up at the fair venue.

MGH, SAASCO Group, GIZ, IFC Bank, Exim Bank, Southeast Bank, Airtel, NCC Bank, Shahjalal Islami Bank and Well Park Residence are among the sponsors of the event.

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BGMEA expects larger number of buyers in Batexpo-2011

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is expecting a greater number of global buyers in the Batexpo-2011 that will begin in the city on December 10.

“The number of buyers will definitely be more than that of the previous year despite global economic crisis,” acting BGMEA president M Siddiqur Rahman told reporters at the BGMEA conference room on Monday.

Replying to a question, Rahman said, “We’ll let you know the exact figure on Thursday. Since we produce relatively cheaper but quality products, the buyers will go for our products.”

He was talking to the journalists at a meeting of sponsor companies and participants.

Chief coordinator of the Batexpo-2011 Syed Nurul Islam, chairman of BGMEA standing committee on trade fair M Nasir and representatives from different sponsor companies were present.

Nurul Islam, also the chief executive officer of the Well Group, said they would uphold Bangladesh’s potentials and strength through the event.

He said this time the cultural part of the event will be divided into two parts - Bangladesh Chapter and Global Chapter. Country’s legendary singers will perform at the functions.

He said they have received huge response from the buyers and sponsors, and hoped that the event will be a grand success.

Bangladesh Apparel and Textile Exposition (Batexpo) is the country’s largest and most glamorous apparel fair, the organizers said.

Prime Minister Sheikh Hasina will formally inaugurate the mega event on December 10 at the Bangabandhu International Conference Centre in the city.

Opposition leader and BNP chairperson Begum Khaleda Zia will attend the closing session.

MGH, SAASCO Group, GIZ, IFC Bank, Exim Bank, Southeas

Source: UNB

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Batexpo Begins Tomorrow Eyeing More Spot Orders

Shafiul Islam Mohiuddin, president of Bangladesh Garment Manufacturers and Exporters Association, announces the 22nd annual Bangladesh Apparel and Textile Exposition (Batexpo) at a press meet in the capital yesterday. BGMEA

“Bangladesh Apparel and Textile Exposition-2011” (Batexpo-2011), the biggest three-day annual event to showcase readymade garments, will begin tomorrow (Saturday) at Bangabandhu International Conference Centre (BICC) in the city.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is organising the lone international standard apparel and textile show in the country eyeing at drawing a large number of foreign buyers despite global economic crisis.

The organisers think this year’s Batexpo will be different and attract more foreign buyers with an increased volume in spot orders, which was US$ 65 million in 2010.

Prime Minister Sheikh Hasina is expected to inaugurate the exposition at BICC while Leader of the Opposition Begum Khaleda Zia is expected to attend the closing session on December 12.

BGMEA president Shafiul Islam Mohiuddin disclosed this at a press briefing at his office yesterday.

BGMEA first vice president Nasir Uddin Chowdhury, second vice president M Siddiqur Rahman, vice president Faruque Hossain and chief coordinator of the Batexpo-2011 Syed Nurul Islam were, among others, present at the briefing.

Addressing the press conference, the BGMEA president said the apparel makers this year will display diversified products of high quality and also highlight the availability of backward linkage infrastructure especially for the textile and accessories at the local level.

He said around 146 stalls including 16 for foreign companies from India, Pakistan, China and Thailand will participate at the exposition.

Shafiul informed Batexpo last year fetched spot orders of apparel worth US$ 65 million. “We hope, we will get more spot orders this year,” he said.

Three important seminars titled ‘Skill development and employment in Bangladesh RMG sector’, ‘Challenges of meeting compliance issues while exporting RMG’ and ‘Resource efficiency and environment compliance initiatives to sustain export growth’ will be held on the sidelines of the event each day.

Apart from cultural programmes, fashion shows will also be organised on Sunday and Monday. Country’s prominent singers will perform at the cultural events.

Organisers said the event will be a reunion for both foreign buyers and local manufacturers and the fair would help expand global market for Bangladesh’s readymade garments.

Finance Minister AMA Muhith, Textiles and Jute Minister Abdul Latif Siddiqui, LGRD Minister Syed Ashraful Islam, Commerce Minister GM Quader, Industries Minister Dilip Barua, Civil Aviation and Tourism Minister Faruk Khan and Shipping Minister Shajahan Khan are expected to address the inaugural session as special guests.

Opposition leader and BNP chairperson Begum Khaleda Zia will attend the closing session of the three-day event as the chief guest on Monday.

Former industries and commerce minister MK Anwar, BNP’s acting secretary general Mirza Fakhrul Islam Alamgir, former minister and BNP chairperson’s adviser Dr M Osman Faruk and former commerce minister Amir Khasru Mahmud Chowdhury will attend the closing session as special guests.

Source: Daily Sun

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Apparel makers start receiving hefty orders from India

Indian apparel companies and retailers are placing orders in Dhaka to buy Bangladeshi garments in a large volume taking advantage of the duty-free access and low prices, exporters said on Friday.

Many apparel companies of India’s famous brands including Arvind, Aditya Birla, Madura Garments, Provogue Zodiac Clothing, Raymonds, Vimal, Lews Philips, Van Heusen, Arrow, Lee, Levis, Wrangler and Dockers and others are intensely communicating with the Bangladeshi apparel manufacturers.

During the historic trip to Dhaka in September, Indian Prime Minister Manmohan Singh announced the duty-free access of Bangladeshi apparels to Indian market in an effort to address the long-standing multi-billion-dollar trade imbalance that goes in India’s favour.

Talking to BSS, Abdus Salam Murshedy, president of the Exporters Association of Bangladesh (EAB), said his company received export orders of two lakh pieces of shirts worth two million US dollars from a reputed Indian brand ‘Pantaloons.’

“We have already sent the consignments to India,” said Murshedy, also former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

He said Indian top apparel brands and retailers are even ready to shift their manufacturing units to Bangladesh to route garments back to India encouraged by the Delhi’s zero tariff facilities to Dhaka.

Bangladeshi apparel entrepreneurs could give competitive price and ensure timely supply to Indian retailers, he said and favoured organising single country fair in India to give fillip to Bangladesh and Indian apparel makers.

M Shafiul Islam Mohiuddin, president of BGMEA, said Bangladesh can easily penetrate the US$30b Indian apparel market.

Mohiuddin, who led a business delegation of apparel exporters to India last week, said the BGMEA leaders discussed with Indian apparel associations, manufacturers, entrepreneurs and leaders of the Confederation of Indian Industry.

On providing zero tariff facilities to the Bangladeshi apparels in the Indian market he said, “Some Indian businessmen consider the tariff treatment as risky and others as opportunities. But Indian government stance on the market access is firm.”

Dhaka’s exports are valued just one-ninth of the $4.5 billion worth of goods India shipped to Bangladesh in the 2010-11 fiscal.

The garment deal is the best Dhaka secured for the sector from India since the 1990s, when similar duty-free access to the EU transformed Bangladesh’s apparel trade into a multi-billion dollar industry, say insiders.

Bangladesh is the world’s third largest garment manufacturer, exporting apparels worth 19 billion US dollars last fiscal.

The garment industry, which accounts for 80 per cent of the country’s total exports, relies heavily on orders from European and North America retailers such as Sweden’s H&M, America’s Gap and British supermarket Tesco, industry insiders say.

Source: BSS, Sat, 03/12/2011

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Germany now Bangladesh’s largest RMG market in Europe

Among the European Union (EU) countries, Germany alone has become a rising market for Bangladesh’s readymade garments (RMG) in recent years, next to the largest market in USA, according to apparel exporters.

BGMEA data show more than US$3.1 billion apparel exports to the largest economy of Europe last fiscal year, a sharp rise with 56 percent growth over $2 billion exports a year earlier (FY 2009-10). Meantime, RMG exports to the USA reached $4.6 billion in FY 2010-11, about 27 percent growth over the total RMG exports worth $3.6 billion in FY 2009-10.

“Germany ranked top among 26 European countries by importing record quantity of RMG goods from us last year,” said Abdus Salam Murshedy, owner of the Envoy Group, a large RMG exporter of Bangladesh.
He said total value of RMG exports to European countries rose to $10.5 billion in 2010-11 from $7.1 billion in 2009-10.

Murshedy, also the former president of Bangladesh Garments Manufacturers and Exporters Association, said the country’s RMG exporters now look forward to fostering RMG market in Germany simultaneously with some emerging markets in Europe and elsewhere in the world. He said the BGMEA is closely working with the Center for Promotion of Imports from Developing Countries, an agency of the Netherlands’ Ministry of Foreign Affairs, to create better understanding between Bangladeshi apparel makers and European buyers to have ideas about EU markets, finding commercial partners for exporters and getting closer on all products and market related issues through direct business contacts with potential buyers.

Murshedy said as a result, Turkey in Europe is becoming a growing market for Bangladesh’s RMG products while export to other EU countries is getting bigger gradually. RMG export to Turkey grew by 69 percent last year, totaling the value $518 million, he said.

RMG exports to the UK rose by 39 percent to $1.7 billion in FY 2010-11 from $1.2 billion a year ago. At the same time, import of RMG products by France grew by 47 percent to $1.4 billion.

Data from the sector’s trade body also show that among the new and emerging markets, value of the country’s RMG exports stood at $247 million in Japan, $192 million in Australia, $94 million in Brazil, $81 million in Mexico, $52 million in China, $51.86 million in Russia, $48 million in South Africa, $47 million in Korea Republic, $35.94 million in India and $12.93 million in Chile.

In Canada, Bangladesh’s RMG export rose to $894 in  FY 2010-11 from $595 million in FY 2009-10.

source :theindependentbd.com

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