Tariff body sits today to discuss cotton import

The Bangladesh Tariff Commission sits today with stakeholders to take opinions on cotton import from India, said an official on Sunday.

The meeting will begin at 3:00pm at the BTC conference room with BTC chairman Mujibur Rahman in the chair, the official at the BTC said.

On Thursday, the commerce ministry held a meeting with the stakeholders and decided to sign a deal with the neighbouring country to import 1.5 million bales of cotton to keep the country’s textiles sector unhurt.

A formal proposal in this regard will be placed during the visit of Indian textiles minister Anand Sharma, expected to be in Dhaka in the first week of May.
The BTC will prepare a paper for talks urging India to either lift the ban or sign an agreement to allow 1.5 million bales of cotton a year.

Once India is convinced, the agreement will be signed at the government level, but the private sector will carry out the import.

Usually, there is no need for agreement but since India imposes ban on cotton export from time to time Bangladesh feels the necessity of entering into a deal as it (ban) hurts Bangladesh’s textile sector.

On March 5, India, the second largest cotton-producing country, imposed a ban on cotton export mainly to build up its domestic stock.

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Samson H Chowdhury laid to rest

Visionary business leader Samson H Chowdhury was buried at his family graveyard in Pabna Saturday afternoon.

The late businessman’s wife, sons, daughter, and numerous friends and relatives joined the funeral ceremony at Astras Farmhouse at Boikunthapur village in Sadar upazila, reports our Pabna correspondent.

Earlier in the morning, Samson Chowdhury’s body was taken to his ancestral village home in Ataikula from the capital by an ambulance.

Later, his body was kept at the Ataikula Church for a prayer. People from all walks of life joined and prayed for his eternal peace.

His body was also taken to Pabna plant of Square Pharmaceuticals around 11:30am before he was buried at their family graveyard.

Chairman of Square Group, the country’s leading conglomerate, died at a Singapore hospital on Thursday of old age complexities at the age of 86.

 

News: The Daily Star, Sat, 07/01/2012

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BATEXPO begins: PM urges owners to improve quality, care for workers

DHAKA: Prime Minister Sheikh Hasina urged the owners of the apparel industries to take more steps to improve the working conditions and wages of the workers, as she launched a mega-show of garment products.

She also emphasized maintaining better industrial relations between workers and owners to help achieve better productivity.

The premier came up with the plea while inaugurating the 22nd Bangladesh Apparel and Textile Exposition (Batexpo-2011) Saturday at Bangabandhu International Conference Centre in the city.

She said that, to help achieve the goal, the government is ready to extend all support to the export sector as a facilitator.

The inaugural ceremony was also addressed, among others, by  Jute and Textiles Minister Abdul Latif Siddiqui, LGRD Minister Syed Ashraful Islam, Industries Minister Dilip Barua, Commerce Minister GM Quader, Civil Aviation and Tourism Minister M Faruk Khan and Shipping Minister Shajahan Khan.

First Vice President of BGMEA Nasir Uddin Chowdhuy and Second Vice President M Siddiqur Rahman also spoke on the occasion with BGMEA President Safiul Islam Mohiuddin in the chair.

Opposition leader Khaleda Zia would attend as chief guest the concluding session of the exhibition on December 12.

Source: banglanews24.com, Dec 10, 2011

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Apparel makers plan to set up production base in Bangladesh

After failing to convince the government against allowing duty-free imports from Bangladesh, textile manufacturers are looking to set up a base in that country. The government recently allowed duty-free imports of 48 textile items.

“Currently, many manufacturers and retailers are exploring the opportunity and are now studying the market there,” said Rahul Mehta, president of The Clothing Manufacturers Association of India. Labour in Bangladesh is also cheaper, compared to India. This will help manufacturers cut their cost of production.

Retailers like Creative Group are looking at setting up a base in Bangladesh, Mehta said. Globus, Reliance, Arvind Mills and Madura Fashions & Lifestyles are also looking at doing the same, according to sources familiar with the matter.

Textile manufacturers had initially pleaded with the government to refrain from allowing duty-free imports, as it would result in imports of $2.5 billion a year, in addition to a loss of 1.25 million jobs.

The apparel industry is the largest employment generator with six million people employed. Bangladesh is a cheaper destination to manufacture apparel and other textile products as the cost of production is around 20 per cent lower compared to India.

Exports from Bangladesh are higher compared to India. India has been losing out to Bangladesh since 2009. Bangladesh exports grew at 16 per cent in 2010-11, while India's exports grew at four per cent.

“Manufacturers will not cut their production in India, but, will set up a base to manufacture basic textile items in Bangladesh. India is good at producing value added textile products,” said the director of the Apparel Export Promotion Council.

Source: Business Standard, September 27, 2011

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Fabrics Makers feel Pinch of EU's Relaxed Rules

Local fabrics makers should increase productivity, improve the quality of products and enhance efficiency in production to offset the bad impact of the European Union's relaxed rules of origin on the local textile sector, experts suggest.

The suggestions came when the local textile sector is affected by the relaxed rules of origin (RoO) for the least developed countries (LDCs), including Bangladesh, effective from January 1.

RMG exports to the European Union (EU) increased substantially in the first three months of the year, but the sales of local fabrics, especially woven, have been affected by the move.

The garment manufacturers import fabrics from other countries, such as China, paying less than what they would pay for locally produced fabrics.

MA Taslim, a trade analyst, said the opportunity of producing and selling fabrics locally to the garment makers increased tremendously following the EU's relaxation of the RoO under the generalised system of preferences (GSP).

But many are not purchasing the fabrics from local suppliers, but importing from other countries for lower prices. “As a result, the local fabrics sector is not seeing any boom,” he said.

The previous RoO acted as a protective shield for the local textile sector for decades, because the garment makers had to buy the majority of the fabrics from Bangladeshi textile factories at the time to get zero-tariff benefits from the EU.

Taslim said the garment manufacturers will purchase the fabrics from local manufacturers when they will be able to sell their products at competitive prices.

If the domestic investors cannot supply the fabrics at competitive prices, the foreign investors like Arvind will weigh in. Arvind, the largest denim company in India, is coming here because the company could realise that there is a market in Bangladesh.

"So, the domestic fabrics manufacturers should increase productivity, enhance efficiency and improve the quality of products to avail of the opportunity," said Taslim, who teaches economics at the Dhaka University.

Dr Zaid Bakht, research director of Bangladesh Institute of Development Studies (BIDS), said Bangladesh has no choice but to agree with the policy changes of EU, because it is their decision.

He said no industry can be protected for an unlimited period. Bangladesh's backward linkage industry has been protected for years since the early 1990s. "Now it's time for us to be competitive," Bakht said.

If the garment manufacturers can purchase quality fabrics at competitive prices from the local market, they will not import, he added. He also suggested the local manufacturers enhance their efficiency in production for supplying the fabrics at competitive prices.

He, however, said the capital costs of the fabrics manufacturers should be reduced. The government can supply electricity to them at a subsidised rate to help them or the government can help them in other ways to reduce their cost of capital, he elaborated.

Fahmida Khatun, head of research of the Centre for Policy Dialogue, said maintaining quality and supplying the fabrics at competitive prices are important for the local fabrics makers.

Moreover, they should also persuade the international buyers to specify particular types of fabrics for garment manufacturing which might favour them, she added.

"Since the exporters can avail the zero-duty facility even from the imported fabrics, in many cases the garment manufacturers do not want to purchase fabrics from the local makers. They import the fabrics at lower prices. As a result, the home textile sector is affected," said Jahangir Alamin, president of Bangladesh Textile Mills Association.

News Source: The Daily Star, Mon, 11/04/2011

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New EU rules hit local textile millers hard

Textile millers have been hit hard by the European Union's relaxed import rules, which allows garment exporters to buy fabrics from other nations overlooking the output of about 1,300 local textile plants.

Under the new EU rules of origin, which became effective from January 1 this year, clothing exporters can enjoy duty-free access to 27-nation European Union - the world's largest apparel market --- even if they source fabrics from other countries.

The previous RoO had worked as a protective shield for local textile sector for decades, as it required garment makers to buy bulk of their fabrics from Bangladeshi textile plants in order to enjoy zero-tariff benefit in the EU.

"New EU rules have badly affected our business. Many manufacturers now buy fabrics from abroad, turning blind eyes to local textile plants," A Matin Chowdhury, managing director of Rahim Textiles Mills, said.

While bigger and composite factories have managed to survive the EU policy onslaught, the relaxation has scythed through hundreds of small plants which enjoyed protection under the previous EU rules.

"Three months after the new rules have come into effect, we can see how they have impacted our primary textile sector," said the president of Bangladesh Textile Mills Association (BTMA), Jahangir Alamin.

"Thanks to the relaxed EU rules, many small and medium sized factories are facing a tough test for survival. The ongoing gas and power crises and soaring cotton prices have compounded their woes," he added.

The growth of primary textile mills, mostly export-oriented plants, has been robust for the last two decades due to the previous rules which all but forced garment makers to buy most of their fabrics from local sources, Alamin said.

"The previous EU rules of origin, which was effective from 1990s to December 2010, have been the single most important catalyst to our growth. Many investors set up textile plants just because of the EU rules," he said.

He said some textile mills based at Gazipur, Narayangankj and Chittagong have either been shut down during the last three months or shed workers due to the new rules.

"The EU should have consulted us and studied its impact before imposing such one-sided rules on us," said another textile miller.

Mr. Matin added further said: Thanks to the new relaxed rules, local garment makers are now procuring fabrics from India, Pakistan, China, Turkey and other countries. Textile millers of these nations are undercutting us.

Local primary textile mills produced around 1,700 million kilogram of cotton yarns, 2,000 million metres of woven fabrics and almost 2,000 million metres of dyed and finishing products last year.

Zillul Hye Razi, EU trade advisor in Dhaka, defended the relaxed rules, saying local textile millers were aware of the new RoO for more than 15 years.

"Every textile mill in the country knew that sooner or later we would lift the protection it has been enjoying for decades. They should have been prepared for the new rules," he told the FE.

Mr. Razi said apparel export from Bangladesh got a big boost by the relaxed rules. "Since it came into effect, export volume has increased as many garment makers are making maximum use of the new rules," he said.

"In the ultimate analysis, Bangladesh has been benefited by the new rules. If the textile millers are hurt by the new rules, they should find ways to stay competitive," he added.

BTMA president Mr Alamin said millers need cash incentive to make their products competitive. "We've already appealed to the government to raise cash incentive to 15 per cent from the existing 5.0 per cent."

He said the local textile millers were also hit by soaring prices of cotton. Local mills purchase the entire demand of their cotton from international market, making the country the world's second largest cotton importer.

"We need an extra financial muscle to buy cotton at a hefty price from the international market," he said.

News Source: The Financial Express, Sun, 03/04/2011

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Three-day Thai Trade Exhibition at Pan Pacific Sonargaon Hotel in Dhaka

Thailand Trade Exhibition-2011-at Pan Pacific Sonargaon Hotel in Dhaka

With a view to strengthening business and relations between Bangladesh and Thailand, a three-day Thai trade show began in Dhaka yesterday.

Thai Embassy in Dhaka and Thailand Trade Center, Dhaka jointly organised the fair-- Thailand Trade Exhibition-2011--at Pan Pacific Sonargaon Hotel in Dhaka.

Around 43 Thai manufacturers and exporters are displaying a wide range of products at the show which include auto parts and accessories, agriculture machineries, electric appliances, food and beverage, garments, textile and fashion accessories, and health, beauty and herbal products through 50 stalls.

The fair, which remains open till April 9, also offers Thai Cultural Show at the exhibition premises everyday until Sunday.

Speaking at the function as chief guest, Industries Minister Dilip Barua urged the Thai entrepreneurs to invest in the industrial sectors of Bangladesh or relocate their industries here.

“We have a lot of prospective sectors like shipbuilding, ship-breaking, automobile, light engineering, ICT and Pharmaceuticals. I invite you to invest directly or relocate your industries to Bangladesh and ensure my all-out support,” he said.

He also hoped that the exhibition be a milestone for strengthening bilateral cooperation and technology transfer between Bangladesh and Thailand.

He expressed his satisfaction over Thai investment in Bangladesh and said the Thai-Italian Group’s investment in the Elevated Expressway project is a milestone in the field of cooperation and bilateral relations between Bangladesh and Thailand.

Thai ambassador Tassanawadee Miancharoen said bilateral trade between two regional countries is increasing tremendously.

She informed that the two-way trade has witnessed a 39 per cent growth to US$ 909.95 million in 2010 compared to 2009. She hoped that the volume should be over $ 1 billion in the coming year.

The Thai envoy said Thailand Trade Exhibition is a distinctive effort of the Thai government to expand opportunities for the business communities of both the countries.

Director of Thailand Trade Center, Dhaka Usa Wijarurn said there would be one-to-one business meetings during the exhibition to facilitate new avenues of business opportunities.

President of Bangladesh-Thai Chamber of Commerce and Industry MA Momen was also present on the occasion, among other business leaders.

News Source: The Daily Sun, Fri, 08/04/2011

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Half of New Investment Proposals for Textile, Chemicals Sectors

A total of 1184 industrial units for textile, 638 units for chemical and 525 units for engineering sectors were registered with the Board of Investment (BOI) over the last 26 months, an official of the BOI told the FE.

Such registered proposals accounted for more than 50 per cent of the aggregate amount involving private investment during the period, he added.

Proposed investments were also recorded in sectors like food and allied industries, printing, publishing and packaging, tannery and rubber products, glass and ceramics and service sector, he said.

"The investors are interested in the textile and service sectors, because these two areas are very much successful globally," another BOI official said, adding that nearly 0.350 million workforce would be employed according to the project proposals they received over the last 14 months.

He said most of the intending investors will set up their plants in Narayanganj and Manikganj as road, river and train communication will be available which are the key factors for industrialisation.

President of Bangladesh Garments Manufacturers and Exporters Association (BGMEA) Shafiul Islam said the industry received a tremendous response from the local investors in recent time.

"It's a very good indicator for the country's industrial development. Immediate measures like uninterrupted supply of gas and power were needed to keep the momentum going," the newly elected president of the country's apex apparel body said.

Bangladeshi garment industry earned US$ 12899.21 in the period of June'09 to July'10, which accounted for nearly 80 per cent of the country's total export earnings.

It makes clothing for the world's top retailers like Wal-Mart, H & M, Tesco, Carrefour, Metro, Gap and JC Penney through its over 4,700 factories.

News Source: The Financial Expres, Tue, 29/03/2011

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ICT in Textiles Industry

Another advantage that the computer system has is that it can store almost infinite number of design templates. That means they can be recalled and adopted rather than having start from the beginning each time. An ICT isn't just help in speed up designing by reducing the time spend on sketching. It's also increasing the number of variation the designers can include in a collection.

Although many designers now use specialized textile and fashion software for designing garments. Here Halima uses standard graphics packages for develop design ideas. These enable her to try different sizes, shapes, colors and angles of bits and get an instant idea what the changes would look like? And because they drawing such as scale ICT saves times if the design eventually goes into production.



But adding the different embellishment to a design, isn't the only way that Halima uses ICT. An ICT has helped increase the number of designs by enabling them to easily change the color of a fabric, so they matches the rest of the collection or story being stocked by particular store.

Video Courtesy: http://www.youtube.com/user/ClassroomVideo

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Technical Textiles – A market with enormous potential

Technical textiles are nowadays used for a broad spectrum of applications, from protective clothing to insulation material for buildings. The technical-textiles sector is one of the most innovative branches of industry in the world and, according to analysts, ranks as one of the five high-tech sectors with the greatest potential for development. At present, the global market for technical textiles is worth around US $ 127 billion (approx. € 97 billion) whereby Asia leads the world in terms of textile consumption with 8.5 million tonnes followed by the USA and Europe with 5.8 and 4.8 million tonnes respectively.

In Germany – in this field, the world’s leading nation alongside the USA – the share of technical textiles in total textiles sales currently amounts to approx. 52 percent. Technical textiles are primarily made and processed for the ‘Mobiltech’ (22 percent), ‘Indutech’ (18 percent), ‘Buildtech’ (10 percent) and ‘Protech’ (10 percent) areas of application. This weighting is valid for the whole world except that, according to the Association of the Yarns, Woven Fabrics and Technical Textiles Industry, the share held by the ‘Mobiletech’ area of application rises to no less than 28 percent.

Technical textiles are so versatile and can be used for so many different areas of application that, to offer a better overview, they have been divided into nine product groups and twelve areas of application such as ‘Buildtech’, ‘Geotech’, ‘Mobiltech’ and ‘Sporttech’. This nomenclature was developed by the organisers of Techtextil, the leading international trade fair for technical textiles and nonwovens, in cooperation with the exhibitors and is used by the entire sector today.

The primarily reason for the success of technical textiles is the innovativeness of woven, knitted and nonwoven fabrics, especially in combination with each other because around 70 percent of all technical innovations are dependent on the qualities of the materials used (Allianz Faserbasierte Werkstoffe Baden Württemberg, AFBW, 2010). Another very important aspect for the huge economic potential offered by functional textiles is the great importance given to diversification in research to promote the discovery and implementation of these innovations.

Innovations as driving forces of growth
 
Carbon and ceramic fibres are considered to represent the most innovative field of research at present. The unique qualities of these materials – great rigidity and tensile strength coupled with extraordinary lightness – mean they are an important element for tomorrow’s lightweight structures and open up a very broad spectrum of possibilities. A recent example of the use to which these fibres can be put is the Airbus A 380. Parts of the fuselage and wings of the world’s biggest airliner are made of carbon-reinforced plastic, which meant a weight-saving of around 30 percent.

Thanks to their specific properties, reinforced textile fibres also contribute to the efficiency and reliability of rotor blades of wind turbines. And, for a new bridge, the approx. 60 tonne slabs were reinforced by 1,400 square metres of interlaid scrim consisting of glass-fibre bundles impregnated with epoxy resin. The result is a construction that cannot corrode and will last longer. 

In the modern medical field, an idea for the development of a cell-seeded, stented heart-valve prosthesis based on synthetic polyurethane cell carriers recently won an award in the Medical Technology Innovation Competition of the Federal Ministry of Education and Research (Bundesministerium für Bildung und Forschung – BMBF). To this end, a synthetic, non-absorbent nonwoven structure in the form of a semi-lunar valve is seeded with venous cells from the patient. The new prosthesis is treated as if it had been naturally produced in the body, which thus takes no steps to reject it.

Also innovative and only a few months on the market is a new kind of modified acrylic fibre that is not only flame, heat, UV and solvent resistant but also impervious to acids and bases. Therefore, the fibres of this kind are particularly suitable for use in protective garments (Protech), plasterboard (Buildtech) or automobiles (Mobiltech).

All in all, the opinion in the sector is that more innovations revolving around the subjects of environmental protection and the use of regenerative energies are to be expected in the future. Primarily, these innovations will be found in ecological and landscape protection sectors (Geotech).


Source: fibre2fashion.com, 08/01/2011

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Textile mill sealed, fined Tk 2.24cr for pollution

Factory keeps ETP shut, discharges waste into vast wetland, farmland in Mymensingh

The Department of Environment (DoE) yesterday sealed Experience Textiles Ltd, a Pakistani venture for fabric dyeing at Bhaluka in Mymensingh, and fined it Tk 2.24 crore for polluting over 232 acres of agricultural land.

This is the highest amount of fine ever imposed by the DoE.

Officials involved in the DoE drive that detected such a massive pollution said the factory authorities kept their effluent treatment plant (ETP) shut, and were discharging liquid toxic pollutants through a pipeline in Kakchhara and Sadhuya beels (wetlands) and agricultural lands around.

They wanted to hide their misdeed by covering with large polythene sheets the spot where the pollutants are discharged from the pipeline, said Mohammad Munir Chowdhury, DoE director of enforcement and monitoring.

The pipeline was blocked yesterday.

The affected locals hailed the drive as they had repeatedly complained about it earlier only in vain.

“Local people are very happy as the factory owners were ignoring their demand for an end to polluting their cultivable land,” said Munir.

During the drive, experts examined samples of the liquid waste collected from the spot and examined it.

And they found the waste very harmful for crops, aquatic species and human health, said a press release of the DoE.

Hundreds of local people gathered at the site when drive was conducted. They alleged that the factory polluted their farm lands for long.

The factory involving an investment of over Tk 100 crore started operation nearly two years ago. Pakistani national Maksud Ahmed, managing director of factory, was present during the drive. 

- Daily Star, 30-12-2010

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IFC Helps Bangladesh Textile Industry Adopt Improved Environmental Standards

Dhaka, Bangladesh, October 2, 2010—IFC, a member of the World Bank Group, is working with Bangladesh’s textile industry to improve environmental standards and promote cleaner production methods in collaboration with the Dutch-based nongovernmental Solidaridad and five leading buyers.

This cleaner production initiative, new in the Bangladesh textile sector, is led by the SouthAsia Enterprise Development Facility which is managed by IFC Advisory Services in South Asia, in partnership with the Norwegian Agency for Development and the United Kingdom’s Department for International Development. 

Under the initiative, IFC will mobilize regional and international consultants who will transfer knowledge and build capacity of local consulting firms and service providers.  Cleaner-production auditors will work with management teams at participating textile plants to assess existing practices, help implement methodologies for improving performance, and achieve effective waste-management and energy savings. These efforts are expected to increase the profitability of small and medium enterprises, allowing them to invest in effluent treatment plants and energy-efficient technologies. 

Textile manufacturing in Bangladesh has a huge environmental footprint, annually discharging as much as 56 million tons of waste water, 0.5 million tons of sludge, and consuming tremendous amounts of energy for steam and hot water. Leading European and American brands such as H&M, KappAhl, Lindex, Levis, and Mothercare, which procure their goods from Bangladesh, are optimistic about this initiative.

“This is a big step forward in promoting responsible environmental practices, and H&M is committed to working with other stakeholders to promote environment compliance standards in the industry to ensure its long-term sustainability,” said Basirun Nabi Khan, CSR Regional Manager, H&M Dhaka.

Ian Crosby, Manager of IFC Advisory Services in Bangladesh expressed his enthusiasm for the program in Bangladesh, “Sustainability of the textiles and apparels sector is vital for Bangladesh to ensure its continued economic growth. Successful completion of this project will allow Bangladesh textile sector to gain a competitive edge in the world market by showcasing its efforts towards a greener supply chain.”

As part of the initiative, baseline assessments will be taken at participating factories to help identify areas of potential cost savings against energy, chemical, and water usage.  The findings will be used to demonstrate better cost control and improved operational efficiency, helping ensure ongoing competitiveness of the textile sector as well as reduce its environmental footprint.

To learn more about IFC in South Asia, visit www.ifc.org/southasia.

About IFC

IFC, a member of the World Bank Group is the largest development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives—by providing financing to help businesses employ more people and provide essential services, mobilizing capital from others, and delivering advisory and risk-management services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org.

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